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2023-07-31-accounts

CPL GROUP tenet tenet ANNUAL REPORT 2022/23

Contents

Contents
Vision, Mission, Values, Charity Objectves and History 4
Chair of the Charity report 6
Meet the Board of Trustees 8
Meet the Group Leadership Team 10
Procurement Services Review 13
Contractng Services 13
Managed Services 18
On Demand Services 25
Tenet Procurement Services 26
CPL Learning 29
Regional Procurement Advisory Services 31
Communicatons & Engagement 33
Our People & Culture
Sustainability Maters		 36
41
Financial Review & Details 42
Governance 47
Partnerships 51
Managing Director concluding comments 52

Vision, Mission, Values, Charity Objectives and History

Our Vision

The vision of the Charity is to be the procurement services partner of choice for the education sector and through its work, help the sector to enhance teaching and learning.

PROFESSIONAL

Acting with honesty, integrity and treating everyone with respect, we stive to deliver the highest standards to achieve strong working relationships.

Our Objectives

Our Mission

The mission of the Charity is to provide outstanding procurement services to members and clients.

Our objectives are to promote the efficiency and effectiveness of charities and the effective use of charitable resources for the benefit of the public by:

Our Values

PEOPLE ORIENTATED

Our greatest strength is our people. They are at the heart of all that we do. We provide a caring environment that focuses on individual needs so that our people play an active role in developing the charitable objectives of the Group.

SUPPORTIVE

Supporting our staff and customers is important to us. We listen to customers views and staff ideas and work together to provide an exceptional service. We heavily invest in the principals of training for all, sharing knowledge and guidance.

History of the Group

CPL was established in 1999 as Crescent Further Education Limited by the University of Salford to facilitate collaborative purchasing in the Further Education sector.

CUSTOMER FOCUSED

Everything we do is for the benefit of our customers. We are 100% committed to delivering the highest-quality service and support that exceeds expectations.

CPL was established as a charity in November 2009 following a buy out from the University of Salford, to enable the Further Education sector to operate and develop CPL and to promote professional purchasing across the whole of the education sector.

COLLABORATIVE

Working together achieves more. We share best practice and knowledge through teamwork and strive to develop innovative approaches through strong partnerships.

CPL purchased Tenet Education Services (Tenet) and its wholly owned subsidiary Tenet Procurement Services (TPS) in 2017 and are collectively known as CPL Group.

Chair of the Charity report

Welcome to our 2022-23 annual report for Crescent Purchasing Limited (CPL Group). This will be my second time of writing the opening comments to this report during my term of Nominated Chair. The past 12 months have involved progress, improvement and challenge, as the Charity continues to work towards our vision, deliver our mission and live our values.

Our vision ‘to be the procurement services partner of choice for the education sector and, though our work, help the sector to enhance teaching and learning’ is still extremely important to us and everything we do is driven by our passion to enhance teaching and learning across the whole spectrum of the education sector. We make every effort ‘to deliver outstanding procurement services for our customers, our mission, which can be difficult when labour markets are challenging, the prices of goods and services are increasing; making savings hard to achieve.

The education sector’s budgets are such that some institutions have had to make the difficult decision of whether to use external expertise or manage with the resources held within their organisation. CPL Group has worked tirelessly throughout the past year to continue to deliver the best service we can to our customers.

The backbone to how we operate are our values, these being ‘People Orientated, Supportive, Collaborative, Professional, Customer Focused’. CPL Group is no different to an educational establishment; people are our product. Without them we cannot deliver the service we pride ourselves on and our customers cannot benefit from the expertise we deliver, in a range of different ways.

Our values are a consistent reminder to us on how we want to work and be seen and we will continue to live by our values. The Trustees worked with the Group Leadership Team to explore opportunities which we hope will evidence to our workforce that

we genuinely value their work. Project work associated to the decisions made in 2022-23 will be concluded in 2023-24.

2022-23 was the first year of our 5-year strategic plan and the progress will be discussed later within this report. We strongly believe that the 3 strategies we have set will not only benefit our customers, but it will enable the charity to grow and offer more support to the education sector.

One avenue of growth has been to expand our presence across the wider public sector through the offering of Crescent Purchasing Consortium (CPC) frameworks, managed procurement services and procurement consultancy. Further details of this are contained on page 27.

The work of the CPL Group relies on the support from many stakeholders, including our loyal customers who have made us their first-choice provider. The vast number of educational suppliers, many of which recommend our services to their customers, and partners who help us develop our offering by providing time and expertise.

My huge thanks go to the employees of CPL Group and the volunteer Trustees for their contributions towards another successful year. In difficult economic times for the education sector, the teams have worked hard to maintain moral and support each other in delivering outstanding services. I am proud to be the Chair of CPL Group and champion the work by everyone associated with the Group to help the education sector to enhance teaching and learning through delivery of outstanding procurement services for our customers.

Andyrew Comyn

CHAIR OF THE CHARITY

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Meet our Board of Trustees

ANDREW COMYN| Deputy Chief Executive & Chief Financial Officer at Nottingham College Andrew is an experienced commercial strategic finance and business advisor, possessing particular expertise within the professional services sector. His specialities span commercial finance (including M&A and funding), restructuring, insolvency operations, credit control and the legal sector.

DARREN LOWE| CPL Managing Director Darren is responsible for the strategic direction of the CPL Group. He is an experienced Managing Director, leading a nationwide team of procurement specialists, and has devoted over 30 years to finance and procurement disciplines within the Further Education and private sectors.

PETER KANE| Head of Estates and FM at Belfast Metropolitan College Peter possesses over 23 years’ experience in Project and Assets Management across both the social housing and education sectors. His responsibilities include delivery of the college asset management strategy, plus contract management of the college’s PFI/PPP contracts and overall estate operations, including health and safety/sustainability. Peter is the Board sponsor for health, safety and wellbeing.

FATIMA BENISHEM| Finance & Procurement Officer at the College of West Anglia Fatima is the Board Sponsor for GDPR and adds her experience as a sales ledger, purchase ledger and general ledger, working with credit control, management accounts, procurement and insurance, as well as line managing the operational side of a business, with skills in computerised accounts.

JO BENTLEY| Executive Director of Finance, Estates & Risk at Hopwood Hall College Jo has worked at Hopwood Hall College & University Centre for the past six years, initially arriving as Head of Finance. For the last four years, she has served as Executive Director of Finance, Estates & Risk for Hopwood Hall, where she is a senior postholder. Jo started her career as a graduate trainee accountant in local government, gaining experience in internal audit and accounting departments.

DAVID PULLEIN| Vice Principal at Leeds College of Building, Finance & Resources David is passionate about the education sector, a passion reflected by the longevity of his working contributions, spanning almost four full decades. To date, David has accrued more than 38 years of educational finance experience, with 33 of those spent within the sphere of Further Education.

LAWRENCE JENKINS| Deputy Chief Executive at North Kent College Lawrence is a member of the Chartered Institute of Global Management Accountants and has worked in Further Education for the past 20 years. He has significant experience in financial and change management, as well as building and resource development. Lawrence has also worked in a number of other sectors, including time at the National Trust, the NHS and in media and advertising.

NOEL CASSIDY| Procurement Manager at Cambridge Regional College Noel brings 32 years’ experience of procurement, accumulated from his time spent working with the NHS, as well as within the education and private sectors. He has spent 15 years in procurement in the realm of Further Education and, as well as developing a personal passion for procurement itself, Noel is actively involved in mentoring, developing and sharing good procurement practice.

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Meet our Group Leadership Team

DARREN LOWE JANE DAVIES RANA HOLLAND DAVE OWEN RACHEL TURNER RAYMOND WIFFEN Managing Director Head of People Development Head of Communication & Engagement Financial Controller Head of Procurement (North) Head of Procurement (South)

Dave is a qualified and customer focused management accountant with 17 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.

Darren is responsible for the strategic direction of the CPL Group. He is an experienced Managing Director leading a nationwide team of procurement specialists and has over 30 years’ experience in finance and procurement disciplines within the Further Education and private sector.

Rachel is the Head of Procurement for Tenet Education Services’ Northern Team, a highly accomplished MCIPS, Chartered procurement and supply professional with 18 years of public procurement with experience acquired in the NHS and Education sectors.

Jane is an experienced Head of Human Resources. With 26 years of HR experience across a diverse range of organisations including retail, manufacturing, private commercial and education sector.

Ray is a procurement professional with 31 years’ experience within Education and the National Health Service sectors. With a wealth of experience, expertise and knowledge of Public Contracting and procurement legislation, Ray leads by example, and provides to our organisation extensive understanding of the Public Contract Regulations.

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.

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6,212 MEMBERS (4.97% INCREASE ON 2021/22) TRANSACTED THROUGH CPC FRAMEWORKS IN THE LAST YEAR

AVERAGE SPEND PER MEMBER AT £70,991 (23.16% INCREASE ON 2021/22)

PPE, CLOTHING AND UNIFORMS SPEND IS UP £2M OVER THE LIFE OF THE AGREEMENT COMPARED TO PREVIOUS ITERATION

Peter McMullan

HEAD OF CONTRACTING SERVICES

Procurement Services Review Contracting Services

The Contracting Team have delivered a strong set of results for 2022/23, building on the successes detailed in last year’s report, with CPC continuing to be the chosen route to market for many educational institutions. Spend through CPC’s various frameworks has continued to grow apace with £441m reported for 22/23, a 26.98% increase on 2021/22. Since 2018/19, framework revenue has increased by 83.8%, an increase of £201m.

The annual rate of inflation reached 11.1% in October 2022, a 41year high, before subsequently easing. More recently published government data shows it fell from 6.8% to 6.7% in August 2023. Full details can be found in Fig 1 .

A sample of Contracting highlights for the year is provided below:

To further demonstrate that we are the preferred route to market for many of our educational institutions, the number of customers transacting through our frameworks and the average spend per customer has also been steadily increasing.

A total of 6,212 members (4.97% increase on 2021/22) transacted through CPC frameworks in the last year, with the average spend per customer at £70,991 (23.16% increase on 2021/22). Readers should temper these figures however against inflationary pressures which have undoubtedly impacted spend totals over the last 12 months.

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pressures which have undoubtedly impacted spend totals over • PPE, Clothing and Uniforms spend is up £2m over the life of
the last 12 months.
the agreement compared to previous iteration.
Academic Total Growth Total Members Growth Average Spend per Member Growth
Year Spend Transacting
2018/19 £ 240,000,000.00 - 4,728 - £ 50,761.42 -
2019/20 £ 214,000,000.00 -12.15% 5,128 £ 41,731.67 -21.64%
2020/21 £ 244,000,000.00 12.30% 5,365 £ 45,479.96 8.24%
2021/22 £ 322,000,000.00 24.22% 5,903 £ 54,548.53 16.62%
2022/23 £ 441,000,000.00 26.98% 6,212 £ 70,991.63 23.16%
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Fig 1. – 2018-2023 Headline CPC Framework Spend Analysis

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MEET THE CONTRACTING TEAM

wide variety of estates related professional services.

A recent quote provided by a MAT’s Facilities Manager helps underline the quality of service available from the team to customers,

CPC were able to support us through the process to ensure compliance, whilst understanding the needs of both suppliers and clients. We felt this was important as it allowed us to tailor the exercise to suit our own financial processes and requirements. The framework was relatively easy and the team were always contactable if we had any queries. The CPC team always accommodated our queries, and we will not hesitate to use them in the future.

Framework Pipeline

It has been a productive year from a contracting pipeline perspective, with a number of new agreements added to our portfolio of agreements offered to customers.

The new Estates and Facilities Professional Services DPS was launched in January 2023, our first offering in this space, providing customers with a fully compliant route to market for a

A recently launched Waste Management Services framework has been made available to CPC customers following a collaborative procurement exercise with London Universities Purchasing Consortium (LUPC). Both of these agreements were born out of extensive engagement with our customers, particularly the Estates and Facilities Manager Network.

CPC have also entered into a new energy partnership with Dukefield Energy, who have been providing energy consultancy services to our customers since 2018. The new partnership builds on the provisions of the previous iteration with additional services now available around energy sustainability which is becoming an increasingly important priority for our member institutions. We have also launched a new Building Cleaning Services framework agreement. The quality and value of this framework is further underlined by the fact that the Department for Education (DfE) have approved this framework as a “Recommended Deal” to the wider education sector.

Team Restructure

During the last 12 months, the Contracting Team have undergone a restructure to better reflect the dynamics within the department and the needs of the individuals within it. Two new Procurement Managers were recruited to join the team, Michelle Newcombe and Keeley Blackburn. Both Michelle and Keeley previously worked for CPC’s subsidiary company Tenet. Both have made strong starts in their new roles. A visual depiction of the new structure is provided on the right.

Continuous Improvement

One of the key focus areas for the team over the last 12 months has been process and procedure improvement. This review has been far reaching and we have made significant progress in a number of key areas to ensure all processes are delivered to a consistently high standard. Projects undertaken have included: A comprehensive review and update to our standard tender

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documentation pack.

• Adoption and enhancement of the new Selection Questionnaire.

Ground-up redesign of our buyers’ guides.

• Improvements to the manner in which direct awards are undertaken by customers.

The Team continue to use a multitude of approaches to engage and support our membership. Working with the Regional Procurement Advisory team, the Contracting Team now attends all regional Procurement Advisory Group (PAG) meetings, where the focus of discussion is around providing updates on the team’s activity and more recently the looming introduction of wide ranging public procurement reform.

These meetings also provide a good opportunity to undertake pre-market engagement with customers prior to the launch of a tender process, they present an excellent opportunity to seek feedback on proposals and to highlight common issues in the procurement of relevant Goods and Services. We also regularly deliver educational content to our members via various other communication channels including webinars, case studies and newsletter articles.

Collaboration

The CPC Contracting Team continue to collaborate wherever possible, working with a range of internal and external stakeholders to continue delivering best in class solutions to our customers. We continue to increase our engagement with the UK University Procurement Consortium (UKUPC) on a

range of collaborative procurement projects, which include Waste Management (LUPC), Fire Safety (NEUPC), Audio Visual Equipment (NWUPC) to name a few. We continue to grow partnership working with the Department for Education (DfE), meeting on a monthly basis with their senior commercial leaders to discuss ongoing issues and strategic priorities across the sector.

Outcomes from these meetings have included clarity for the FE sector around a recent change to their classification by the Office for National Statistics which had the potential to greatly impact institutions by having to procure at central government thresholds.

We have also engaged with the DfE extensively around the “Recommended Deals” process, providing feedback to the Department on issues with their process and providing recommendations for improvement. CPC continue to grow our portfolio of Department for Education recommended deals and now have a record 17 agreements approved for use across the education sector, the most in CPC’s history and the most of any PSBO.

The long-term working relationship with Dukefeld Procurement continued throughout the year allowing CPC to utilise the procurement experience of the Dukefield team to widen the portfolio of CPC lead frameworks. The Multi-Functional Devices framework continues to perform well, delivering a total of £124m in member spend since August 2019.

Continuous Professional Development

From a development perspective, the team have continued to invest their time in professional development. Three members of the team are currently engaged in Chartered Institute of Purchasing and Supply (CIPS) qualifications. Myles Woodman successfully completed his final level of his CIPS qualification earlier in the year and has now achieved Chartered MCIPS status, a fantastic achievement for someone going through the formative stages of their career.

Elsewhere, the team are currently undergoing White Paper Training and have recently undertaken a financial assessment workshop delivered by David Owen, our financial controller, which was a fantastic session, reinforcing the principles of financial due diligence on our supply chain.

The Contracting Team have been following the developments of the new Procurement Act 2023 and attending any available update briefings by the Cabinet Office. These learnings will continue to ensure that each team member has the requisite knowledge, skill and understanding to continue to deliver fully compliant procurement solutions to the education sector.

The Procurement Reform Taskforce will develop an appropriate learning and development plan for each customer of the Contracting Team to ensure this aspiration is achieved.

THREE MEMBERS OF THE TEAM ARE CURRENTLY ENGAGED IN CHARTERED INSTITUTE OF PURCHASING AND SUPPLY (CIPS) QUALIFICATIONS

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Procurement Services Review Managed Services

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Value of
% of total
CPV Code tenders
spend
awarded
Building-cleaning services (90911200-8) £47.2m 24.63%
Catering services (55520000-1) £21.7m 14.37%
£30.7m 13.62%
Construction work for buildings relating
to education and research (45214000-0)
Industrial process control equipment £15.3m 7.73%
(38810000-6)
Refurbishment work (45453100-8) £14.8m 7.64%
Transport services (excl. Waste transport) £11.3m 5.83%
(60000000-8)
School catering services (55524000-9) £6.2m 3.20%
Computer equipment and supplies £5.0m 2.58%
(30200000-1)
Security services (79710000-4) £4.8m 2.51%
Training services (80500000-9) £4.4m 2.27%
Other £37.7m 15.62%
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Managed Service teams have had a challenging but rewarding year with both the North and South regions achieving the savings targets and achieving excellent results for our customers.

The teams have been strengthened by management development, with plans to continue the skills growth into 2023/24.

With our education sector customers having to manage extreme pressures on budgets, the teams have risen to the challenge magnificently proving that a procurement resource within an education establishment is a worthwhile investment, not a cost.

Customers

The teams have supported 40 different educational establishments during the year.

stance in terms of the guidance provided to customers and the breakdown by tender process detailed below illustrates the range of route to market which the team took over the course of the year.

Procurement Activity

TENDER PROCESS TYPE FTS Restricted Below Threshold Mini-Competition FTS Open

A total of 239 tenders were completed during the year influencing £194.1m of non-pay public sector spend. Savings of £10.1m have been generated within the combined duration of all managed service customer contracts. The top 10 categories detailed to the right represent a spend of £163.8m or 84.37% of total spend.

The managed service teams have maintained an independent

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THE TEAMS
HAVE SUPPORTED
40 DIFFERENT
EDUCATIONAL
A TOTAL OF 239
ESTABLISHMENTS
TENDERS WERE
DURING
COMPLETED
THE YEAR
DURING
THE YEAR
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SAVINGS
OF £10.1M
HAVE BEEN
GENERATED
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Rachel Turner
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HEAD OF PROCUREMENT (NORTH)

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£194.1M OF
NON-PAY
EDUCATION
SECTOR
SPEND
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MEET THE TEAM FROM TENET NORTH

TOP 10 CPV

Training services (80500000-9) Security services (79710000-4) Computer equipment and supplies (30200000-1) School catering services (55524000-9) Transport services (excl. Waste transport) (60000000-8) Refurbishment work (45453100-8)

Industrial process control equipment (38810000-6) Construction work for buildings relating to education and research (45214000-0) Catering services (55520000-1) Building-cleaning services (90911200-8)

Where frameworks were the chosen route to market, the detail below illustrates the split between CPC frameworks and other framework providers. The range of frameworks offered by the CPC and the fact they are designed for the education sector makes them a good choice for many managed service customers. The team do rely on other framework providers agreements, where the spend in question is better suited to an agreement outside the portfolio of the CPC.

Employees

FRAMEWORK DETAIL CPC Framework Other Framework

Between August 2022 and July 2023, the managed procurement service team consisted of 30 employees, split equally across the Northern and Southern teams. The gender split across both North and South teams was 53% male / 47% female.

Customer Satisfaction

The annual customer satisfaction questionnaire informed us that our customers recognised that we provided value for money in the following ways:

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MEET THE TEAM FROM TENET SOUTH
THE GENDER
SPLIT ACROSS
BOTH NORTH
AND SOUTH
TEAMS WAS
53% MALE / 47%
FEMALE
63.64% OF
CUSTOMERS TOLD
US TENET HELPED
TO ACHIEVE
FINANCIAL SAVINGS
IN THE PAST YEAR
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86% OF CUSTOMERS TOLD US THAT VALUE FOR MONEY WAS ACHIEVED THROUGH COMPLIANCE TO REGULATIONS Raymond Wiffen HEAD OF PROCUREMENT (SOUTH)

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Procurement Services Review On Demand Services

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187 TENDERS
COMPLETED
IN 2022/23
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97% OF
CUSTOMERS
PROVIDED
POSITIVE
SATISFACTION
RATING
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Jonathan Whittle HEAD OF TENET ON DEMAND SERVICES

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100% WOULD
RECOMMEND
TENET ON
DEMAND
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On Demand Services provide tendering support to individual schools, multi-academy trusts, colleges, and universities.

Jonathan Whittle was appointed in October 2022, as Head of On Demand Services. Jonathan’s promotion from Senior Catering Specialist, provided an opportunity for the organisation to support the ‘grow our own’ ethos whilst Mary Bee was also appointed as Procurement Manager in Catering.

Jonathan has since displayed his wealth of management experience and quickly settled into the role, Mary has a wealth of catering experience both in the contract catering arena and in tendering.

The team saw another appointment with Eve Metcalfe being promoted to Procurement Manager from her original post of Procurement Consultant.

The year has seen the Covid-19 impacts mitigate, with business patterns returning to pre-pandemic levels. The On Demand Service has undertaken over 187 tenders in the year.

The customer satisfaction surveys reveal 67% of clients rated our services as outstanding with another 30% rating our services as good, producing an overall 97% positive satisfaction rating. Of the responders 100% would recommend Tenet On Demand Services.

The team retained both of our existing retainer customers, with the addition of a further three customers adopting this model during the year. The retainer model allowed a customer to buy a block of consultancy days which can be ‘called-off’ as required during the year. This is proving to be particularly attractive to FE Colleges that may desire to have a managed service, but cannot

identify a budget for this immediately.

A full pricing review was carried in the year and the outcome evidenced that our on demand services continue to be very competitive to other providers offering similar services to the sector. The year has also seen the team expand our knowledge into new tendering areas such as the appointment of Land Agents, Project Management Consultants, and School CIF bids to name a few.

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MEET THE ON DEMAND TEAM
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Procurement Services Review Tenet Procurement Services (TPS)

Tenet procurement services provides easy to use frameworks and professional procurement tendering and consultancy services to non-education public and private sector clients.

This year has brought growth to the service and many different sectors have used our frameworks to achieve value for money within their procurements. These have included Local Councils, Fire & Rescue, NHS, Police and Housing Associations. Tenet Procurement Services (TPS) continues to provide a managed procurement service to a Housing Association in the north of England, to offer support to their Procurement Manager and internal teams, supporting the delivery of value for money, PCR compliance and the completion of procurement projects across the region.

Membership

TPS has received interest from154 public sector organisations from outside of education, this client base is growing steadily and includes NHS Trusts, Rail services, Police, Fire and Ambulance services, Local Councils, Housing Groups, Churches and Highways authorities to name a few. There are 26 Find a Tender Service (FTS) compliant frameworks currently available to TPS customers. Membership is free and quick via the website www. tenetprocurement.com

Framework Usage

The top 5 most popular frameworks used in the year:

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MEMBERSHIP
IS FREE
TOP 5 FRAMEWORKS
ICT Networking & Storage Solutions
ICT Hardware & Peripherals Equipment
Fire Detection
Janitorial & Cleaning Supplies
154 PUBLIC
SECTOR
ORGANISATIONS
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TOP 5 FRAMEWORKS

ICT Networking & Storage Solutions ICT Hardware & Peripherals Equipment Fire Detection Catering Janitorial & Cleaning Supplies

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26 FTS COMPLIANT
FRAMEWORKS
CURRENTLY
AVAILABLE TO TPS
154 PUBLIC MEMBERS
SECTOR
ORGANISATIONS
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450 FUNDED PROCUREMENT TRAINING COURSES OFFERED TO MEMBERS IN THE LAST 3 YEARS

327 EDUCATION MEMBERS ATTENDED THE PROCUREMENT & ESTATE ADVISORY 108 NETWORK EDUCATION MEMBERS COMPLETED THE CHARITY FUNDED TRAINING

Procurement Services Review CPL Learning

CPL has a strategic objective for the period of 2022/27 to advance education and research by developing our people to be the best they can be. Our people include our employees and our customers.

Further Education Facilities Management Network (FEFMN)

The network was established by Estates and Facilities Managers/ Directors based in Yorkshire and Humberside with an intention to share good practise and support peers working in similar roles within the Further Education sector.

CPL Learning is the arm of the charity which delivers learning and development to our people to assist them in the delivery of their role and responsibilities. We take great pride in having delivered all the activities mentioned in this review at no cost to the employee or customer, making learning and development as inclusive and accessible as we possibly can for the benefit for the individual and the education sector.

CPC provided support to the group in the form of administration to help the group to organise frequent meets and build on the benefits of knowledge transfer. In addition, representatives from the Contracting Team attended meetings to engage in discussion around the procurement needs of the group and from this various new frameworks and dynamic purchasing systems (dps) have been born.

Procurement Advisory Group (PAG)

Our national Procurement Advisory Groups (PAGs) continue to grow from strength to strength. PAG meetings ensure our customers have a network of support in their area where they can discuss all things procurement, these hubs of best practice welcomed 300 institutions across 24 individual events during 2022/23.

Following the success of the Yorkshire and Humberside Group a separate group was formed in the North West and the same offer from CPC was presented. The second group has now met on various occasions and replicated the benefits demonstrated by the Yorkshire and Humberside Group. The future ambition is to expand the network nationwide.

We will continue to explore new ways in which our customers can share best practice and take advantage of continued learning, we will be introducing a series of monthly webinars to provide expertise and knowledge around economic and environmental changes aided by the expertise of our internal team of procurement experts and supply chain. Fresh into the academic year, we look forward to aiding our customers with their procurement needs and enquiries and continue to educate the educators as we welcome news on the new Procurement Bill and the changes to our procurement landscape.

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FREE UK WIDE
PROCUREMENT
ADVISORY
SERVICE.
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MEET THE TEAM
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JACK HORTON Customer Engagement Manager (Midlands, Yorkshire & Humberside) j.horton@thecpc.ac.uk +44 (0)7765 241 639 THE TEAM FACILITATED LOUISE ASHCROFT 496 INDIVIDUAL Regional Procurement Advisor MEETINGS WITH (North West) MEMBERS l.ashcroft@thecpc.ac.uk +44 (0)7407 868 914

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LOUISE ASHCROFT 496 INDIVIDUAL
Regional Procurement Advisor MEETINGS WITH
(North West) MEMBERS
l.ashcroft@thecpc.ac.uk 80% OF
+44 (0)7407 868 914
MEETINGS
SUPPORTING
TRACEY HINDMARSH NEW MEMBERS
Regional Procurement Advisor AS THEY JOINED
(North East & North Yorkshire)
THE CPC.
t.hindmarsh@thecpc.ac.uk
+44 (0)7407 864 028
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DANIEL KINDER Regional Procurement Advisor (South-West & Wales) d.kinder@thecpc.ac.uk +44 (0)7990 764272

Procurement Services Review Regional Procurement Advisory Services

2022/23 was another busy year for our Regional Procurement Advisory Team (RPA). We appointed a new Regional Procurement Advisor for the Southwest and Wales regions, resulting in increased customer engagement, another a welcome complement to our FREE UK wide procurement advisory service.

Demand for the latest news in procurement practices will continue to grow in the lead up to the new Procurement Bill being implemented. To meet this demand, we have invested in a further two posts for the next financial year in the RPA Team, to support our growing customer base. We continue to offer our customers a blended approach to engagement, offering both virtual meetings held online utilising the latest technology, along with in person onsite meetings. This allows our customers a full range of flexibility in relation to how they wish to contact and engage with us to best make use of our procurement expertise.

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Jack Horton
CUSTOMER ENGAGEMENT MANAGER
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The team facilitated 496 individual meetings with customers during the course of the year, with around 80% of these supporting new customers as they joined the CPC. This is in addition to the core day to day business activity where the service provides advice and support via a number of mechanisms such as our helpdesk, communicator tool, online forms, telephone and email enquiries. To further enhance our new customer induction, we introduced a new customers’ toolkit, which provides an overview of the plethora of ways we continue to support our customers across the sector, allowing for a seamless introduction.

30 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 31

Communications & Engagement

WE HAVE ACHIEVED CYBER ESSENTIALS PLUS CERTIFICATION FOR THE SECOND YEAR RUNNING

The team have had another successful year of achievements, which has resulted in further enhancing our portfolio of services to support customer engagement and user experience to provide timely and accessible information.

Since Board approval to commission the build of a new consolidated website, the IT Team have successfully completed phase one of the CPC web build, phase two will now commence which will see the amalgamation of subsidiary websites which includes the CPL Group and Tenet Education Services.

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LOGGED SESSIONS 2022/23
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CPC
CPL Group
TES
TPS
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One primary website offering will provide our customers with a one stop shop for all procurement needs at your fingertips, which is anticipated to go live in spring 2024.

We are proud to announce that we have achieved Cyber Essentials Plus certification for the second year running. This means that we have met the government-backed standards for cyber security and demonstrated our commitment to protecting our data and systems from common online threats.

OUR WEBSITES CONTINUE TO PLAY A KEY ROLE IN SUPPORTING OUR CUSTOMERS WITH ALL THEIR PROCUREMENT NEEDS

Rana Holland

HEAD OF COMMUNICATIONS AND ENGAGEMENT

Cyber Essentials certification helps us to reassure our customers and suppliers that we are working to secure our IT against cyberattack.

We conducted a penetration test on our newly built website in a sandbox environment, which identified no critical vulnerabilities with some minor improvements which have been implemented.

Penetration testing is a core tool for analysing the security of IT systems, and it is essential to ensure that the products and security controls assessed have been configured in accordance with good practice. Our websites continue to play a key role in supporting our customers with all their procurement needs which is evidenced with the continued growth trajectory in users detailed on the right.

TOTAL USERS 2022/23

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CPC
CPL Group
TES
TPS
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32 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 33

MEET THE TEAM

Over the past year, our business has significantly harnessed the capabilities of the Microsoft Power Platform to revolutionise our internal operations to drive efficiencies. Recognising the growing need for a more streamlined IT support service, we developed a robust app to facilitate the raising of IT helpdesk requests.

This intuitive platform not only allows employees to effortlessly report technical issues but also tracks the progress of each ticket, ensuring timely resolutions. Furthermore, it empowers our IT team with real-time data on recurring issues and the identification of user trends to steer the service.

In addition to IT support, the Microsoft Power Platform has been instrumental in enhancing our communications and data analytics functions. We designed a dedicated app for our Communications Team, which centralises tasks, streamlines content approvals, and fosters collaborative efforts across departments.

We also saw the introduction of a Data Analytics Helpdesk app to support employees with Group wide reporting and dissemination of data to streamline our approach to core business activity.

The Group has embarked on the development of a Data Strategy. Phase one of the strategy has focused its efforts on cleansing all internal data to provide a firm foundation stone to aid all our communications to members, suppliers, and wider stakeholders.

Phase two of the strategy will focus on ensuring we have up to date information for our customers and suppliers to ensure we can continually communicate our evolving portfolio of services.

We launched our Customer Charter which details our approach to offering a good service and support for our customers. The charter details how we will manage customer expectations regarding the delivery of products and services whilst adhering to standards that our members are accustomed to. We recognise the importance of being here when you need us, as well as being clear about what you can expect from us.

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| ANNUAL REPORT 2022-23 | 35

Highest scoring areas of the Great Place to Work Survey 2022/23

Our People & Culture

People are the heart of our business – they are our customers, suppliers, candidates and employees. Our people are front and centre of who we are and what we do. We are committed to building an engaging and inclusive culture that empowers our people to thrive and grow. Developing our people to be the best, most diverse is crucial in advancing education and research in procurement and help us achieve our mission to provide outstanding procurement services.

2022/23 was one of the most challenging labour market environments we have operated in. The year of the ‘Great Resignation’ with a National labour market turnover rate of 22.5%, high rates of inflation, increases in the average pay growth which resulted in a war of talent.

To ensure we rise above the labour market storm, our focus this year has been developing areas of training and development, including bespoke procurement and leadership development programmes, creating a thriving culture through well-being, Equality, Diversity and Inclusion (ED&I) and a fair deal for all on total rewards.

The annual employee ‘Great Place to Work’ (GPTW) survey, conducted in May 2023, provided us with the confidence that we are working in the right direction to provide a thriving culture for our people. The overall results increased from last year and for the third year running we have certified as a GPTW, as well as a GPTW for Women. We have also been nominated for the Wellbeing, Learning and Development and UK Best Workplaces certification.

We remain one of the highest scoring charities within the not-for-profit sector. Progress and plans against the people development objective to be an employer of choice which attracts, retains and develops talent.

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94% 92% 91%
96%
Intimacy Hospitality Support
Justice
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90%.

Justice Employees are treated fairly, regardless of race, gender or sexual orientation.

Intimacy

• Taken steps to improve the total rewards and benefits package.

People can be themselves at work and people care about each other.

• Celebrated and raised awareness of key celebrations within ED&I.

Hospitality

• Annual staff awards to recognise great work. • Developed an in-house procurement and leadership development programme.

A supportive culture where people are offered training and development opportunities.

Support

Feeling welcome when joining the company.

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We see you
We welcome
you
We develop
you
We care for
you
We reward
you
Jane Davies
HEAD OF PEOPLE DEVELOPMENT
We value you
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36 | CPL GROUP |

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MEET THE PEOPLE DEVELOPMENT TEAM

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1 3
90% 87%
Great Place Average of All
to Work Statements
Statement
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Wellbeing

Further and sustained investment in employee wellbeing is a priority, with the majority of the workforce working remotely. A Wellness Group comprised of employees from across the organisation ensures the wellbeing strategy is progressed. Eight employees have been trained as mental health first aiders. A new Women’s group has been formed and has been warmly received by participants.

Equality, Diversity & Inclusion (ED&I) and Employee Value Proposition (EVP)

Further workshops planned for delivery include topics requested by employees such as:

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Total
Rewards
Work
Culture
Environment
EVP
People
Development
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The Trustees recognise that ED&I is key to helping deliver a public benefit and continually reappraise a full and comprehensive policy of diversity, inclusion and equal opportunities.

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 goals an ED&I working group was formed last year which is chaired by an employee and includes the sponsorship of a Trustee and Managing Director.

Employee Value Proposition

Throughout the pandemic employees had the opportunity to rethink their expectations and relationships in the workplace, resulting in them aligning what they want and value from the workplace. This year we have started to focus on Employee Value Proposition (EVP) and establish what it is our employees value in return for working for us. The aim is to set us apart from other procurement organisations to become an employer of choice. A full detailed plan will be launched in 2023/24.

The group have been working on a strategic plan and policy which will set out our commitment in creating an inclusive work environment. So far this year they have been working on various initiatives throughout the year including a wellness and womens group. A new 5yr ED&I Strategy will be launched in November 23 which sets out the Groups priorities, initiatives and activities which will be delivered annually.

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CPL Group
4.9
| ANNUAL REPORT 2022-23 | 39
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38 | CPL GROUP |

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OVER £ 1.1
MILLION RE-
INVESTED INTO
THE EDUCATION
SECTOR.
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CHECK OUT SOME
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OF OUR CASE
STUDIES
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£547K
OF GRANTS
HAVE
BEEN ‘GIVEN
BACK’ TO
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101
INSTITUTIONS
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INSTITUTIONS
Click on the image to watch
the Giving Back video
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Sustainability Matters

Environmental management

At the start of 2022 a Sustainability Working Group was established with employee volunteers from across CPL. This is chaired by a member of the Group Leadership Team (GLT) and has a Board sponsor.

The aim of the group is to ensure the objectives set out in the 5-year strategy are achieved, not least setting out and completing the detailed plan to achieve ISO14001 – Environmental Management accreditation.

During the year the working group created an Environment Management System (EMS) template and produced the Group’s first environmental and sustainability policy. This sets out key actions which will be led by the working group in relation to achieving its strategic aims and objectives.

CPL secured software which will record the Groups carbon emission data and calculate its carbon footprint each year. A Carbon Management Plan (CMP) is in development to manage and ultimately reduce the footprint over the next five years.

Business travel across the organisation is forecast to reduce yearon-year as management encourage more efficient and effective means of consulting with customers, in particular the Regional Procurement Advisors meetings with members which are, in the main 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. Some managed service contract customers are willing for Tenet employees to work on a hybrid basis to reflect their own working practices.

Social

The management and distribution of designated reserves to customer institutions in the form of grants is led by the “Giving Back” Group who ensure that three main criteria are met. These are:

No grant funding was commissioned during the year though the Board of Trustees approved the transfer of additional funds into the designated reserves so a grant funding exercise can be carried out during 2023/24. Feedback from institutions that have received funding have been extremely positive and demonstrate the difference CPL is having on the lives of young learners.

Health, safety and employee wellbeing

The Trustees are aware of their responsibilities on all matters relating to health and safety. The Charity has a dedicated health, safety and wellness lead who prepared the current 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.

Find out more on cpl.group/funding

40 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 41

Financial Review & Details

This year has been our best year yet. Total income exceeded £5 million for the first time and surplus before pension costs reached £820k. This is despite the impact of the cost-of-living crisis and the fact that we are trading in a very unstable world.

Marketing premium income from framework usage has increased by £364k from the previous year. Total spend reported through the frameworks exceeded £441 million (2022: £322 million) providing real value for money for CPL members.

17 frameworks are currently signposted by the Department for Education (DfE).

This is supported by an outstanding managed service which has recorded £10.1M of savings on current contract terms for 40 customers and on-demand tendering service provided by Tenet. The Trustees are committed to ensuring that any excess surpluses are reinvested into the education sector. Since 2019 over £1 Million has been identified as Designated Funds for the purpose of reinvestment. £768,483 had been expended prior to the financial year with a further £34,130 spent during 22/23.

The Board approved a further £150k of designated reserves for grant funding in the March 2023 board meeting. This means that a third grant funding window can be opened during 2023/24 with up to £300k available. The Trustees and CPL employees are proud of the contribution they make to these causes.

Reserves policy

CPL maintains a reserves policy that is available here. This sets out the level of reserves to be held by the company and the reasons why. Designated and Restricted reserves are those reserves that the Board of Trustees have approved for the purpose of “Giving back” to the education sector.

Treasury Management

The Group has several cash investments in line with its Treasury Management Policy. The Trustees require that all investments be carried out ethically.

The Financial Controller regularly monitors not only the credit ratings of institutions the Group invests its cash with but also the environmental sustainability performance of the listed institutions and reports on this through the management accounts commentary. The environmental sustainability performance is based on several criteria incorporating environmental reporting, carbon disclosure & reduction, responsible investment, ethical accreditations and political donations.

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INCOME
OVER
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£5 MILLION.
UP TO £300K
FURTHER
GRANT
FUNDING FOR
OUR MEMBERS.
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OPERATING
SURPLUS OVER
£800K (BEFORE
PENSION
COSTS).
A THIRD GRANT
FUNDING
WINDOW CAN
BE OPENED IN
23/24.
Dave Owen
FINANCIAL CONTROLLER
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Extracts from the 2022/23 Financial Statements CPC

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Group Group Charity Charity
INCOME AND EXPENDITURE
2023 2022 2023 2022
£ £ £ £
Income from:
Donations and legacies 500 - 19,068 280,376
Charitable activities 5,127,590 4,650,073 3,214,309 2,737,820
Investment 76,660 10,412 56,787 7,011
Total income 5,204,750 4,660,485 3,290,164 3,025,207
Expenditure on:
Charitable activities 4,582,425 4,619,370 2,552,664 2,893,227
Net income for the year/
622,325 41,115 737,500 131,980
Net incoming resources
Other recognised gains and losses
Actuarial gain on defined benefit pension schemes 496,000 3,164,000 496,000 3,164,000
Net movement in funds 1,118,325 3,205,115 1,233,500 3,295,980
Fund balances at 1 August 2022 5,729,722 2,524,607 6,451,565 3,155,585
Fund balances at 31 July 2023 6,848,047 5,729,722 7,685,065 6,451,565
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BALANCE SHEET Group
2023		 Group
2022		 Charity
2023		 Charity
2022
Fixed assets
Goodwill
Intangible assets
Tangible assets
Investments
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due
within one year
Net current assets
Net assets excluding pension
liability
Defned beneft pension surplus /
provision for liabilites		 £
115,000
42,590
36,936
-
194,526
1,007,680
5,673,306
6,680,986
(817,465)
5,863,521
6,058,047
790,000		 £
240,000
57,700
53,514
-
351,214
1,285,657
4,288,311
5,573,968
(687,460)
4,886,508
5,237,722
492,000		 £
-
42,590
26,110
1,377,962
1,446,662
779,331
5,191,669
5,971,000
(522,597)
5,448,403
6,895,065
790,000		 £
-
57,700
39,164
1,377,962
1,474,826
938,438
3,969,300
4,907,738
(422,999)
4,484,739
5,959,565
492,000
Net assets 6,848,047 5,729,722 7,685,065 6,451,565
Income funds
Unrestricted funds – designated
Unrestricted funds – general
Unrestricted funds – pension
Restricted Funds – donaton received		 347,387
5,710,160
790,000
500		 231,517
5,006,205
492,000
-		 347,387
6,547,178
790,000
500		 231,517
5,728,048
492,000
-
6,848,047 5,729,722 7,685,065 6,451,565

44 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 45

Governance

The Board

Approves the strategy and leads the CPL Group to achieve longterm success.

Chair

Trustees

Work with and challenge, if necessary, Group Leadership Team.

Managing Director

Day-to-day management of the CPL Group and implementation of strategy.

SUB-COMMITTEES OF THE BOARD Giving Back Group

With Trustee representation, the Group advises on the appropriate distribution of free reserves held by the CPL Group.

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.

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.

Procurement Advisory Group (PAG)

Leadership

Represented by 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.

As of the 31st of July 2023, the Board comprises the Chair, six Trustees and one Executive Director (Managing Director). The Charity’s procedure for appointing new Trustees is the overall responsibility of the Chair, with delegated authority to the Head of

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| ANNUAL REPORT 2022-23 | 47

People Development for the recruitment process. The composition of the Board is fundamental to its success in providing strong and effective leadership. The term of the Chair shall be three consecutive years after which they can offer themselves up for re-election. A voting process will be undertaken by the Board to elect the next Chair. 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.

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.

L Jenkins, Deputy Chief Executive, North Kent College

P Kane, Head of Estate and FM, Belfast Metropolitan College (coopted with voting rights)

D Lowe, Managing Director, CPL

D N Pullein, Vice Principal – Finance and Resources, Leeds College of Building

Darren Lowe

MANAGING DIRECTOR

Director and Trustees

Board Meetings

The Board agenda is agreed by the Chair, in conjunction with the Managing Director. Each scheduled meeting 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.

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 Trustees serving during the year were as follows:

Nominated Chair

A J Comyn,

Deputy Chief Executive & Chief Financial Officer, Nottingham College

Trustees and Directors

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

J C Bentley, Executive Director of Finance and Estates, Hopwood Hall College

F Bensihem, Finance and Procurement Officer, College of West Anglia

N Cassidy, Procurement Manager, Cambridge Regional College (Chair of Purchasing Advisory Group)

A J Comyn, Deputy Chief Executive & Chief Financial Officer, Nottingham College

48 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 49

Partnerships

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 customers.

A continuation of partnership working was maintained throughout 2022/23 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 2023, the Department for Education were recommending 17 CPC frameworks.

Dukefield Procurement www.dukefeldprocurement.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.

50 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 51

Managing Director concluding comments

It is that time in the year when I can publicly state how proud I am to lead an organisation which is made up of dedicated and loyal employees all of whom want to make a positive difference to the education sector and wider public sectors.

Employees of CPL Group, whether they are employed within Crescent Purchasing Consortium or Tenet Education Services, have the rare opportunity in today’s world to see the difference their daily contribution is making. We have the luxury of seeing our work enhance teaching and learning, we have the privilege to be part of the team who has enabled the charity to ‘give back’ funds to the education sector and see the appreciation coming back from the recipients of grant funding from across the education sector. CPL Group is truly unique.

The various reviews contained in our annual report detail the amazing work and achievements the various teams have made during the year, but I would like to summarise the key highlights of the year:

The list could continue… Every organisation should make time to look back on occasions and celebrate the successes from the past year. I hope having read our annual report you can see how CPL Group promotes the efficiency and effectiveness of our charity and how we effectively use charitable resources for the benefit of the public.

I want to thank my colleagues for choosing CPL Group as their employer of choice. Their commitment to CPL Group makes us who we are. Our customers deserve recognition for their support during the year. The various milestones CPL Group are achieving is greatly assisted by their loyalty in making CPL Group their procurement services partner of choice.

The 3rd spoke in the CPL Group wheel are the many suppliers who repeatedly bid for work which the CPL Group procurement teams advertise in the marketplace. Their support towards our work by referring their customers to us and their desire to win

52 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 53

Darren Lowe

MANAGING DIRECTOR

work in the education sector has enabled CPL Group to grow to where we are today. My predecessor Peter Brewer perfectly illustrated the relationship between CPL, our customers, and suppliers as a triangle, with each point being of equal size and importance. I could not illustrate it any better.

Looking forward to 2023/24 we have an exciting year ahead. We aspire to continue our growth in line with our strategic plan. To do this we intend to provide significant investment into our employees which will see the final elements of harmonisation of employment terms, conditions and benefits being completed.

Part of the investment will be additional posts to our structure including a new position of L&D procurement specialist who will support both employees and CPC customers by advancing their education in all aspects of procurement.

Employee wellbeing is at the fore with planned investment in a comprehensive Employee Assistance Programme (EAP) to support mental health alongside other health and medical benefits.

We want to continue to embed equality, diversity, and inclusion across all our activities. Our commitment from board level downwards will ensure that we pro-actively try to become a diverse and inclusive employer and member organisation and offer equality every step of the way. Our ED&I working group made up of employees meets on a regular basis and I am consistently impressed with the work they do to raise awareness of a wide range of topics. They truly are passionate about ED&I.

In the year 2022/23 we have been working on a skills development plan for employees and 2023/24 will be the year in which this programme is made available so our employees can aim high in their careers, should they wish to gather relevant skills before the opportunity to apply for a promotion arrives. Our aspiration is to offer the opportunity of development to all our employees, so they reach their Everest (whatever goal that maybe for them as individuals).

We want to raise the profile of procurement across the education sector, because we believe passionately that a dedicated procurement resource is not a luxury, it is a role worthy of a place on any management team in any HE, FE, MAT or school and academy. Procurement has the same ability to deliver value equal to any person employed into a sales or marketing role, and yet procurement professionals are still a rare sight across the education sector.

We hope to demonstrate to the education sector that the investment is a wise decision and by engaging with senior finance professionals we hope to be able to illustrate the presence within the sector and plan for growth in the coming years.

As per our mission statement we want to provide outstanding procurement services to members and clients. Our measure will be the annual customer satisfaction questionnaires; however we will also be introducing a complaints and compliments policy so our customers have a structured route in which to provide feedback.

Thank you for taking time to read our annual report. I am in no denial that 2023/24 will throw a few challenges in our path but working alongside my colleagues, supported by the board of trustees and appreciated by both loyal customers and suppliers, CPL Group will remain resilient and work towards our vision of becoming your procurement services partner of choice.

54 | CPL GROUP |

| ANNUAL REPORT 2022-23 | 55

CONTACT US

Registered Office Procurement House, Unit 23-25 Leslie Hough Way, Salford M6 6AJ

Auditors DJH Mitten Clarke Audit Limited, Bridge House, 157 Ashley Road, Hale, Altrincham WA14 2UT

Bankers

NatWest, Leeds City Office, 8 Park Row, Leeds LS1 5HD Solicitors Weightmans LLP, No1 Spinningfields, Hardman Square, Manchester M3 3EB Websites www.thecpc.ac.uk www.cpl.group www.tenetservices.com www.tenetprocurementservices.com

Charity Registration No. 1130461 Company ReElStration No. 06774578 IEngland and Walesl CRESCENT PURCHASING LIMITED ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 DJH Mltten Clarke Audlt Llmlted Chartered Accountants Bridge House 157 Ashley Road Hale Altrincham Cheshire WA14 2UT

CRESCENT PURCHASING LIMITED CONTENTS Page Legal and administrative information Trustees, report 2-13 Independent auditorfs report 14-16 Consolidated statement of financial actlvities 17 Consolidated balance sheet 18-19 Consolidated statement of cash flows 20 Notes to the flnancial statements 21-42

CRESCENT PURCHASING LIMITED LEGAL AND ADMINSTRATIVE INFORMATION CONSTITUTION Crescent Purchasing Ltd ICPLI is a company limited by guarantee and a registered charity governed by its memorandum and articles of associètion. CPL trade5 as Crescent Purchasing Consortium ICPCI. The registered charity number is 1130461 and the company number is 06774578. DIREcfoRS AND TRUSTEES The Directors of the charitable company 1.the CharitVI are its trustees for the purpose of charity law and throughout thls report are collectively referred to as the Trustees. The Trustees serving during the year were as follows.. Nominated Chair A J Comyn, Deputy Chief Executive & Chief Financial officer, Nottirbgham College Trustees and Directors J C Bentley, Executive Director of Finance and Estates, Hopwood Hall College F Bensihem, Finance and Procurement Officer, College of West Anglia N Cassidyi Procurement Manager, Cambridge Regional College Ichair of Purchasing Advisory Group) A J Comyn, Deputy Chlef Executlve & Chief Financial Officer, Nottingham College L Jenkins, Deputy Principal Finance and Resources, North Kent College P Kane, Deputy Head of Estate, Beltast Metropolitan Co15eBe (co-opted with voting rights) D Lowe, Managing Director, CPL D N Pullein, Vice Principal- Finance and Resources, Leeds College of Building ReEiStered Offlce Procurement House, Unit 23-25 Le51ie Hough Way, Salford M6 6AJ. Auditors DJH Mitten Clarke Audit Limited, Bridge House, 157 Ashley Road, Hale, Altrincham WA14 2UT. Bankers Natwest, Leeds City Office. 8 Park Row, Leeds LSI 5HD. Close Brothers Savings, 10 Crown Place, London EC2A 4FT. Lloyds Bank plc, I" Floor (East), 10 Gresham Street, London EC2V 7AE. Nationwide Building Society, Kings Park Road, Moulton Park, Northampton N N3 6NW. Sollcltors Weightmans LLP, Nol Splnnlngfields, Hardman Square, Manchester M3 3EB Website www.thec hti c.ac.uk rou

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORTI FOR THE YEAR ENDED 31 JUL Y2023 The Trustees present their report together with the consolidated financlal statements for the Charity and its subsidiaries for the year ended 31 July 2023 which are also prepared to meet the requirements for the Directors, report for Companies House purposes. The legal and administrative information set out on page I forms part of this report. The financial Statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable in the UK and Republic of Ireland IFR51021 (effective l January 20151. Vision and Mission The vision of the Charity is to be the procurement services partner of cholce for the education sector and through its work, help the sector to enhance teaching and learning. The mission of the Charity is to provide outstanding procurement services to members and clients. Report of the Trustees CPL was established in 1999 as Crescent Further Education Limited by the Unlversity of Salford to facilitate collaborative purchasing in the Further Education sector. CPL was established as a charity in November 2009 following a buy out from the University of Salford, to enable the Further Education sector to operate and develop CPL and to promote professional purchasing. CPL works to this end in collaboratlon with the Department for Education and United Kingdom University Purchasing Consortia IUKUPCI. CPL also works in partnership with Dukefield Procurement on joint frameworks. CPL purchased Tenet Education Services (Tenet) and its wholly owned Subsidiary Tenet Procurement Services ITPSI in 2017 and are collectively known as CPL Group. The Board of Trustees conslsts of nominated representatives of members colleges incorporating, four Directors of Finance, the Chair of the Purchasing Advisory Group IPAGI plus one nominated officer from PAG, one Head of Estates and the Managing Director. Resignation-j Howard resigned from the Board on 31" March 2023. Trustee vacancies are advert15ed via social media channels and charityjob.co.uk. There is a bespoke induction pack and programme for all new Trustees. Trustees are not paid for their services. The Board meets three times a year to determine strategy and to monitor progress. Day to day administration of CPL is delegated to the Managing Director and his employees. The Eroup leadership team IGLTI is made up of five senior managers, three from CPL and two from Tenet plus the Managing Director. The pay and remuneration of key personnel is agreed annually as part of the budget setting process. Each p05t 15 benchmarked against similar roles within similar sized organisations.

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 On 31 July 2023 CPL had 9,625 members, an increase in the year of 657. Membership consists primarily of English college5, schools, academies and academy trusts and there are also institutions from Scotland, Northern Ireland and Wales. Charitable objectives The Charitrfs objetts are to promote the efficiency and effectlveness of charities and the effective use of tharitable resources for the benefit of the public by.. l. Providin services for further education hi her education schools and other educational institutional bodies to romote ood ractice and enhance and im rove their rocurement activities. The CPC frameworks continue to provide excellent Value for Money for all members supported by a free helpdesk facility and personal technical support f rom the field based Regional Procurement Advisor team. This is supported by a procurement managed service (which has recorded £IO.IM of savings on current contract terms for 40 customers) and on-demand tendering services provided by Tenet. The Trustees are committed to ensuring that any exce55 surpluses are reinvested into the education sector. Since 2019 over £1 Million has been identified as Designated Funds for the purpose of reinvestment. £768,483 had been expended prior to the financial year with further £34,130 spent during 22123. Re-investment into the education sector takes the form of several projects with the grant funding to sponsor student events/activities gerbeiating particular interest. The first round of grant funding during 2019120 saw E259k awarded to 33 institution5. The national lockdowns during the global pandemic meant that no further funding was possible though, with the easing of restriction5. a second funding"window" was opened In May 2021. The result of the second round was £288k awarded to 68 institutions which was paid during 2021122. The Board approved a further £1SOk of designated reserves for grant funding in the March 2023 board meeting. This means that a third grant funding window can be opened during 2023124 with up to £300k available. The Trustees and CPL employees are proud of the contribution they make to these causes. The Trustees each work in educational institutions which are members of CPL and therefore benefit from its service5. Their institutions are therefore eligible for grant funding. It is stated n the related party transactions that no trustees sit on the evaluation panel which reviews and approves fundlng applications and any grant funding paid will be identified and listed in the financial statements.

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2023 Another popular project is the subsidlsed fees for on-demand services. This is aimed at those institutions that may not normally access such a service. To date 192 subsidised tenders have been completed for 160 institutions. 2. Advancin education and research in such research are ublished. rocurement rovided that all the useful results of CPL Learning is the flagship under which the charity fulfils its charitable objectives in relation to advancing education and research activities in procurement. The Charity continues to fulfil its commitment through the funding of free procurement courses Wlth 3rd party training providers and webinars for CPL member employees. During the year 99 training courses were funded covering subjects such as writing a tender specification, ethical procurement and supply, and developing and managing contracts. 104 online webinars were attended covering advanced contract manègement, basic principles of contract law and an overview o* the education sector. A total of 203 members gained access to training development material to advance their knowledge in procurement. CPL continues to provide full administrative and technical support to regional and national Procurement Advisory Groups IPAGI and the Further Education Facilities ManaBement Network IFEFMNI. 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 CPL services. During the year. 300 members attended PAG and 27 attended FEFMN network groups. The vision for the next year is to increase the level of engagement between members by IO%. This will be achieved by de5ignin8 agenda5 bespoke to each region, delivering webinars on hot topics, additional marketing and new website design. CPL have continued to develop the Further Education Library of Procurement IFELPI which is a free to access online learning resource portal for all members. The research undertaken by CPL is published via the library in a variety of different templates and 2dvice/guldance documents. To compliment the Ilbrary, all the CPL framework agreements have a comprehensive user-guide with embedded templates and guidance documents to help the member utilise a framework with ease. Further progress has been made in the design of the Procurement Development Programme, new initiative that will raise the profile of procurement within the education sector. The programme is currently being trialled by procurement employees within CPL with a lonE-term aspiration to offer to members. This will be funded by CPL Learning and will take the form of 1-2-1 mentoring, training, access to resources and networking groups as well as work experience within CPL. CPL have commenced work to provide its membership with a benchmark tool for spend. The aspiration for the final product will be to provide CPL members with an online portal in which they can compare their spend to data collated from the education sector.

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 The Trustees oversee the charitable objectives of the charity with due regard to the Charity Commlsslon's publlc beneflt guldance. Flnanclal and buslness revlew. 2022123 saw the completion of year l of the charIt￿S 5-year business plan. The three main strategies within the business plan are= To deliver outstanding procurement services To support the development of it5 people (employees and members) To enable a sustainable future Ifinancial, environmental and economic/sociall CPL Group income for the year ended 31 July 2023 was £5,204,75012022'. £4,660,4851 The year-end surplus before pension costs was E622,32512022: £41,115). In respect of the year ended 31 July 2023 3 gift aid payment of E6,16412022.. £2415,0001 was received from Tenet Education Services and £12,404 12022.. £35,376) from Tenet Procurement Services. The Charity participates in the West Yorkshire Pension Fund IWYPFI with subsidiary companies participating in the NEST pension scheme. The WYPF pension scheme value as at 31 July 2023 continues to show the company as having a pension asset. This follows on from asset value determined by the actuary in 2022. In accordance with applicable accounting standards, the a55et value has been deemed to be recognisable on the basis that the company has expectations of reduced future employer contributions at some point during the life of the plan. Although a pension asset is arising, this does not create an immediately realisable asset that can be expended for the specific purposes of the pension fund. Marketing premium income from framework usage has increased by £364k from the previous year. Total spend reported through the frameworks exceeded £441 million 12022.. £322 million) providing real value for money for CPL members. 17 frameworks are currently signposted by the Department for Education IDfEI. Tenet income from managed Services increased by £53k during the year despite the loss of several contract5 in the first few months of the year due to the impact of the cost-of-living and energy crisis putting pressure on the budgets of college5. Contract numbers recovered in the secorid half of the year and several leads are being followed which should increase income during 2023124. Income from the on-demand tendering service was £4k down on the record £680k generated in 2022. Tenet Procurement Services ITPSI which services the wider public sector has seen its most active year to date with significant increase in CPC framework usage, continued one-off tender provision and the extension of a managed service contract with a Housing Assoclation.

CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 Fundraising- the tharlty does not currently generate income from fundraising and therefore does not use the services of fundraisers either on a paid or voluntary basis. CPL received its first donation from an outside organisation during the year which has been placed in restricted reserves and will be used as contribution toward future grants awarded to CPL members. Lookin ahead CPL intends to continue its growth over the coming years in line with the 5-year strategy launched in 2022. The budget for 2023124 sees the largest investment in employees in the history of the group led by the final elements of the harmonisation of terms, conditions and benefit5 for employees working in the subsidiary companies. A new salary banding structure for procurement professionals alongside a detailed and robust development training package is aimed at ensuring CPL retains and recruits the best talent. Employee wellbeing is at the fore with planned investment in a comprehen51ve Employee Assistance Programme IEAPI to support mental health alongside other health and medical benefits. The financial strength of CPL ensures it can absorb the continued impact of the cost-of-living crisis and with no long-term liabilities (loans) is not negatively impacted by rises in interest rates. Reserves policv CPL 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 and Restricted reserves are those reserves that the Board of Trustees have approved for the purpose ol"Giving bac￿, to the education sector. Post balance sheet events There have been no events since the year-end that have had a significant effect on the Charivs financial position. Environmental management At the start of 2022 a Sustainability Working Group was established with employee volunteers from across CPL. This is chaired by a member of the Group Leadership Team IGLTI and has a Board sponsor. The aim of the group is to ensure the objectives set out in the 5-year strategy are achieved, not least setting out and completing the detailed plan to achieve IS014001 Environmental Management accreditation.

CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECtORS' REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2023 During the year the working group created an Environment Management System IEMSI template and produced the Group's first Environmental and sustalnability policy. This sets out key actions which will be led by the working group in relation to achieving its strategic aim5 and objectives. CPL secured 50ftware which will record the Group5 carbon emission data and calculate its carbon footprint each year. A Carbon Management Plan ICM PI 15 in development to manage and ultimately reduce thÈ footprint over the next five years. Business travel across the organisation is forecast to reduce year-on-year as management encourage more efficient and effective means of consulting with customers, in particular the Regional Procurement Advisors meeting5 Wlth members which are, in the mairb held virtually. A hybrid workinE 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. Some managed service contract customers are willing for Tenet employees to work on a hybrid basis to reflect their own working practices. Social CPL continues its agile working policy which allows employees to choose their place of work within any customer contractual boundaries, This has had a positive effect on both productivity and employee wellbeing. The company head office in Salford remains partially occupied and is predominately used as a hub for collaborative working with teams across the Group. CPL was very pleased to maintain its "Great Place to Work" accredit3tion for another year which runs alongslde its current accreditations for Yop 100 Great Place to Work for Women" op 100 Great Place to Work for Wellbeing" and "Great Place to Work UK'S best workplace". The new 5-year business plan continues the Groups"Grow Your Own. policy by incorporating the recruitment of local graduates into planned positions across several areas of the business. CPL has committed to making available at least one day per year for employees to volkjnteer their time to local good cause5. During the year employees took part in various activities including: Litter picking and minor malntenance work at a local park. Helping out at a local animal sanctuarv. Working at a community centre that supports those affected by homelessness. Funds have also been raised and goods donated to support the charities that employees worked with. This has also had a positive impart on employee wellbeing and team morale. The management and distribution of designated reserves to member institutions in the form of grants is led by the"Giving Back" Group who ensure that three main criteria are met. These are.. To help improvements to teachinE and learning within the organisation.

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2023 To have a posltlve impact on the learner's experlence of education. To support the learning of economically disadvantaged learners and minority groups. No Erant funding was commissloned during the year though the Board of Trustees approved the transfer of additional funds into the designèted reserves so a grant funding exercise can be carried out during 2023124. Feedback from institutions that have received funding have been extremely positive and demonstrate the difference CPL 15 having on the lives of young learners. Equality diversity and inclusion IED&I) The Trustees recognise that ED&1 is key to helping deliver a public benefit and continuallv reappraise a full and comprehensive policy of diversity, inclusion and equal opportunities. An ED&1 working group was formed last year and is chaired by an employee. It works on various initiatives throughout the year in support one of CPL'S three Strategies which is to support the development of its people. The ED&1 working group overseas the great work being carried out by the Wellness Group and Women's Group with further inclusive groups and actlvltles planned. A new 5-year ED&1 strategy will be launched in November 2023. Health, safety and employee wellbeing The Trustees are aware of their responsibilities on all matters relating to health and safety. The Charity has a dedicated health, safety and wellnes5 Lead who prepared the current 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 wellbeinE culture with coherent policies and procedures that are compliant with all appropriate health and safety stanilards. Further details are provided in thi5 report under Risk Management and Compliance checks. Further and sustained investment in employee wellbeing is a priorlty, with the majority of the workforce working remotely. A Wellness Group comprised of employees from across the organisation ensures the wellbeing strategy is progressed. Eight employees have been trained as mental health first aiders. A new Women's group has been formed and has been warmly received by participants. Further workshops planned for delivery include topics requested by employees such as: Work Life Balance

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2023 Women's Health with a Focus on Menopause Men's Health Neurodiversity CPL was proud to maintain its Top 100 Great Place to Work for Wellbeing accreditation for another year with 99Yo of employees feeling that CPL is a safe place to work and 90% feelin8 that CPL encourages work-life balance. Governance The Trustees are committed to the highest standards of Governance and recognise that this is only achieved through continual improvement. The Charity Governance Code is used as guidance and support for future improvements. The Chair and Managing Director conducted a detailed governance assessment which has identif led areas where further improvements can be made and this will form part of the continual Board development process. The GLT acknowledge that the organisation requires effective leadership at every level to athieve the Group's Mission and Vision. A new training and development programme for the GLT will commence in the year ahead alongside one for all managers within the Group to support them in their role. The Group has several cash investments in line with its Treasury Management Policy. The Trustees require that all investments be carried out ethically. The Financial Controller regularly monitors not only the credit ratings of institutions the Group invests its cash with but also the environmental sustainability performance of the listed institutions and reports on this through the management accounts commentary. The environmental sustainabillty performance is based on several criteria incorporating environmental reporting, carbon disclosure & reduction, responsible investment, ethical accreditations and politlcal donations. Internal controls assurance The Trustees are responsible for ensuring that its business is conducted in accordance with the law and proper standards, that the Charit¢s assets and money are safeguarded and properly accounted for, and that they are being used economically and effectively. A wide range of Internal control mechanlsms are in place and being operated to help CPL meet its strategic objectives, to operate within the law, to make effective use of the Charity's money and to report actlvities accurately. These bring together informatlon from all

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT IINCLUDING DIRECTORS, REPORTI {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 significant parts of the busine55 and provide assurance to the Trustees that an effective System of internal controls is in place. The most significant sources are through-. The external auditors. Financial and non-financial performance monitoring and management. Appropriate communications structures. Effective strategies, policies and procedures- and External stakeholders, including the Charity Commission and accreditation bodies. The main forms of assurance are= erational controls Effective recruitment and selection process is in place to ensure sultable people are employed lincluding the completion of Disclosure and Barring Setvice checks for employees working in educational institutionsl with senior managers responsible for ensuring that standards of conduct and behaviour are maintained to the highest levels. Annual appralsals (based around the ChariWs vision and values) and half year interim reviews, with regular team and one-to-one meetings undertaken to maintain high standards of performance. HR processes are in place to address any gaps or failings. Formal (but not exclusive tol Financial Policies and procedures, IT and Commtjnications Access Policy, Group Conduct, Data Protection Policy, Health and Safety Policy and Treasury Management Policy. Appropriate separations of duties are in place acros5 key operational functions e.g., purchase order process to mitigate risks around fraud. Role based access contro15 are in place to ensure that employees only have access to systems and data that is pertinent to their requirements. Financial forecasts and budgets are in place which allow the GLT to monitor spend in terms of achieving budgets in the short. medium and long term. Risk mana ement and com liance checks The GLT maintain a comprehensive risk register. Risks are collated under four main headings- Flnancial, assets, premises, H&S and charitable status. Suppliers, partners, competition, frameworks and all Group procurement services. Group operational, legal and regulatory matters. Membership, customers, reputational issues and the marketplace. The risk register land in particular the "top 5" risks identified below) is reported to every Board meeting, supplemented by detailed reviews throughout the year by the GLT. The risk appetite is reviewed during this process. -io-

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT IINCLUDING DIRECTORS, REPORTI {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 Risk Nature of Risk and Rlsk Appetite Severe reduction in income due to increased competition and loss of market share poses a risk to the business plan. Risk Appetite- moder(yte Secure and resilient technologv and processes are fundamental in building a more resilient business. Risk Appetlte- avoid Failure to reduce or remove threats to employee, customer and supplier health and safety leads to harm and reputational damage. Risk Appetite- avoid Mltlgation Significant loss of income Robust financial management processes are in place with action plans identified should trigger points be met. Reserves policy ensures adequate reserves are maintained. External penetration testing of systems is carried out each year. The servers are now cloud-based with daily routine backups taking place. Compliance with Data Protertion legislation Compliance with health and safety legislation A health, safety and staff wellbeing strategy is in place with mandatory training for all employees. A wellness group is tasked with maintaining an employee wellbeing and engagement programme. The Group is committed to investing in an Employee Assistance Programme IEAPI and other health benefits. A Business Continuity Plan provides guidance and support in the event of a major no-notice event. This is tested throughout the year. Business continuity in the event of a major disruption Impact of major disruption such as Covid-19 pandemic on the continuing operations of the business. Risk Appetite - moderate Recruitment and retention of talent is essential to the delivery of business objectives and the loss of skills and knowledge poses a challenge to maintaining performance. Risk Appetite- moderote Recruiting and retaining talent Competitive terms and conditions including a harmoni5ed bonus and pension scheme. Regular feedback is received from employees via surveys, 1-2-Is and exit interviews. To implement Employee Value Proposition IEVPI strategy that focuses on improving all areas of people development, culture work environment and total rewards. A range of surveys are undertaken of customer satisfaction and employee satisfaction, including detailed analysis of the results with actions taken to address area5 of concern. There is appropriate independent oversight of compliance within specific areas of the business such as Health & Safety and Data Protection. li-

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT {INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 CPL continues to progress Its 5-year strategy in relation to health, safety and employee wellbeing which is sponsored by a board member. CPL aspires to achieve ISO 45001- Occupational Health & Safety accreditation within 12 months. CPL maintains its "Great Place to Work" accreditation, "Top 100 Great Place to Work for Women" Yop 100 Great Place to Work for Wellbeing" and "Great Place to Work UK'S best workplace". CPL maintains Cyber Essentials Plus accreditation. CPL commissions external consultants to perform penetration testing on its systems each year. This forms part of the Group's work toward achieving150 27001- Information Security Management accredieation. A Board member Sponsors a working group set up during the year to ensure CPL maintains full compliance with GDPR focussing on continual improvement. Internal controls assurance conclusion The Trustees can take assurance that the CPL is reacting appropriately to the challenge5 It faces and has acted proactively to identify, investigate and communicate issues and management actions in an accessible, transparent manner. The Trustee5 can confirm that the CPL has suitable internal controls for maintainlng adequate accounting records, for safeguarding the assets of the Charityi and for taking reasonable steps to prevent and detect fraud and other irregularities. They also confirm that no weaknesses have been identified frotn the external audit which would have resulted in material misstatement or loss and which would have required disclosure in the financial statement5. Annual general meeting The annual general meeting will be held on 14th of November 2023. The event will be online via Microsoft Teams. External auditors Haines Watts were reappointed at the 2020 AGM for a three-year period. During the 2023 audit this changed over to DJH Mitten Clarke Audit Limited. statement of the responsibllitles of the Board of Tru5tee5 in relation to the Financlal Statements Company law requires the Trustees to prepare financial Statements for each financlal year which give a true and fair view of the State of affairs of the Charity at the end of the financial year and of its Surplus or deficit for the financial year. The Trustees are required to.. Select suitable accounting policies and then apply them conslstently. 12-

CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2023 Observe the methods and principles In the Charities Statement of recommended Practices ISORPI. Make judgements and estimates that are reasonable and prudent. State whether applicable UK accounting standard have been followed, subject to any material departure disclosed and explained in the financial statements; and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and it5 subsidiary companies and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's webslte. Legislatlon in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. In so far as each Trustee is aware.. There is no relevant audit information of whlch the CharIt￿S auditors are unaware,. and The Board of Trustees have taken all steps that it ought to have taken to make itself aware of any audlt information and to establish that the auditors are aware of that information. This report of the Trustees was approved by the Board on 14 November 2023 and signed on its behalf by.. A J Comyrt Chair of Trustees 13-

CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 JUL Y2023 Opinion We have audited the financial Statements of Crescent Purchasing Limited (the 'charity'l for the year ended 31 July 2023 which comprise the statement of financial activities, the ba13nce sheet, the statement of cash flows and notes to the financlal Statements, including Significant accounting policies. The financial reportin8 framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practicel. In our opinion, the flnancial statements.. give a true and fair view of the State of the charitable compantys affalrs a5 at 31 July 2023 ènd of its incoming resources and application of resources, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounling Practice,. and have been prepared in accordance with the requlrements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to going concern In auditing the financial statements, we have concluded that the Auditor use of the going concern basi5 of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identlfled any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charIt￿S ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the charltvs abllity to continue as a going concern. The Covid-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charitys trade, customers, suppliers and wider economy. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant section5 of this report. 14-

CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE TRUSTEES OF CRESCENT PURCHASING LIMITED Other information The other information comprises the information included in the annual report other than the financial statements and our audltor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doinE so, consider whether the other informatlon is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially mlsstated. If we identlfy such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities IAccounts and Reports) Regulations 2008 requires us to report to you if, in our opinion- the information glven in the financial statements is inconsistent in any material respect with the Auditor report,. or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the statement of Auditor re5pon51bilities the trustees, who are also directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the CharIt￿S ability to continue as a going concern, disclosin& as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquldate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditorfs responsibilitles for the audlt of the flnanclal statements We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fr8ud or error, and to issue an 15-

CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE TRUSTEES OF CRESCENT PURCHASING LIMITED auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or Sn the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further descrlptSon of our responsibilities is available on the Financial Reporting Council's website at.. https'.l/www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorfs report. Use of our report This report Is made solely to the charit(s trustees, as a body, in accordance with Part 4 of Charities (Accounts and Reports) ReEulations 2008. Our audit work has been undertaken so that we mlght State to the charity's trustees those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charitls trustees for our audlt work, for thls report, or for the opinions we have formed. Candice Beynon FCCA Isenior Statutory Auditor) For and on behalf of DJH Mitten Clarke Audit Llmited Date: Iq.!i! lio zs Chartered Accountants Statutory Auditor Bridge House 157 Ashley Road Hale Altrincham WA14 2UT DJH Mitten Clarke Audit Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 16-

CRESCENT PURCHASING LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JUL Y 2023 Group 2023 Group 2022 Charlty 2023 Charity 2022 Notes Income from: Donations and legacies Charitable activities Investments 500 19,068 280,376 5,127,590 4.650,073 3,214,309 2,737,820 76,660 10,412 56,787 7,011 Total income 5,204,750 4,660,485 3,290,164 3,025,207 Ex enditure on: Charitable activities 4,582,425 4,619,370 2,552,664 2,893,227 Net Income for the year/ Net incoming resource5 Other recognised gains and losses Actuarial gain on defined benefit pension schemes 622,325 41,115 737,500 131,980 496,000 3,164,000 496,000 3,164,000 Net movement In funds 1,118,325 3,205,115 1,233,500 3,295,980 5,729,722 2,524,607 6,451,565 3,155,585 Fund balance5 at l August 2022 Fund balances at 31 July 2023 6,848,047 5,729,722 7,685,065 6,451,565 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 17-

CRESCENT PURCHASING LIMITED CONSOLIDATED BALANCE SHEET ASAT31JULY2023 Group 2023 Group 2022 Charlty 2023 Charity 2022 Notes Fixed assets Goodwill Intangible assets Tangible assets Investments 12 13 14 15 115,000 42,590 36,936 240,000 57,700 53,514 42,590 57,700 26,110 39,164 1,377,962 1,377,962 194,526 351,214 1,446,662 1,474,826 Current assets Debtors Cash at bank and in hand 17 1,007,680 1,285,657 779,331 938,438 5,673,306 4,288,311 5,191,669 3,969,300 6,680,986 5,573,968 5,971,000 4,907,738 Creditors: amounts falling due wlth5n one year 18 1817,4651 1687,4601 1522,5971 1422,9991 Net current assets 5,863,521 4,886,508 5,448,403 4,484,739 Net a55ets excluding pension 6,058,047 5,237,722 6,895,065 5,959,565 Defined benefit pension surplus / provlslon for liabilities 19 790,000 492,000 790,000 492,000 Net assets 6,848,047 5,729,722 7,685,065 6,451,565 Income funds Unrestricted funds- designated Unrestricted funds- general Unrestricted funds- pension Restricted Funds- donation received 21 347,387 231,517 347,387 231,517 5,710,160 5,006,205 6,547,178 5,728,048 790,000 492,000 790,000 492,000 500 500 6,848,047 5,729,722 7,685,065 6,451,565 18-

CRESCENT PURCHASING LIMITED BALANCE SHEET ICONTINUEDI ASA T31 JULY2023 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2023, although an audit has been carried out under section 144 of the Charities Act 2011. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of those financial statements under the requirements of the Companies Act 2006. The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statement5 which Eive a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 14 November 2023 AJ Comyn Chair of Trustees Company Registration No. 06774578 19-

CRESCENT PURCHASING LIMITED CONSOLIDATED STATEMENTOF CASH FLOWS FOR THE YEAR ENDED 31 JUL Y 2023 2023 2022 Notes Cash flows from operating activitles Cash generated from operations Investlng activities Purchasing of tangible fixed assets Sale of fixed assets Interest received 26 1,325,327 465,785 118,1551 1,163 76,660 124,3111 149 10,412 Net cash used In Investlng activities 59,668 113,7501 Net cash used In financing activities Net increase In cash and cash equivalent5 Cash and cash equivalents at beginning of vear 1,384,995 452,035 4,288,311 3,836,276 Cash and tash equivalents at end of year 5,673,306 4,288,311 20-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y2023 l. Accounting policie5 Charity information Crescent Purchasing Limited is a private company limited by guarantee incorporated in England and Wales. The reglsterÈd offlce is Procurement House, Leslie Hough Way, Salford, M6 6AJ. The Crescent Group conslsts of Crescent Purchasing Limited, Tenet Education Services Limited and Tenet Procurement Services Limited. 1.1 Accounting convention The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with accounting and Reporting by Charitie5'. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in that UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011 and the companie5 Act 2006 and UK Generally Accepted Accounting Practice. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial ststements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. This charity is a qualifying entlty for the purpose of FRS 102 and the Charity SORP, being a member of a group where the parent of that group prepares publicly available consolidated f inancial statements which are intended to give a true and fair view lof the assets, liabilities, financial position and profit or lossl and that member is included in the consolidation. The charity has therefore taken the advantage of exemptions from the followinE disclosure requirements for parent company information presented within the consolidated financial statement5. Section 7 'Statement of Cash Flows,: Presentation of a Statement of cash flow and related notes and disclosures Sertion 33 'Related Party Disclosvreg.. Compensatlon for key management personnel. 1.2 Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resource5 to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial 5tatement5. 21-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 l. Accounting policies {Continuedl 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject to speclfic conditions by donors as to how they may be used. The purpose and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. 1.4 Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognlsed once that charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donation5 received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt to otherwise is the charity has been notified of an impendinE distribution, the amounts is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank 1.5 Resources expended Expenditure is included within the Statement of Financial Activities on an actruals basls. Irrecoverable VAT has been charged as a cost against the activity in which the expenditure was incurred. All expenditure is solely forthe purpose of achieving the charities objectives and has been disclosed withirb those c05t categories. Governance costs are recognised when, and to the extent that, the charity can identify activities in which are associated with the general running of the charity, as opposed to being directly associated with its charitable activities. Support c()sts are recognised when the charity can identify centralised service5 that benefit all area of the charity's operations. -22-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2023 l. Accountlng pollcles (Continued) 1.6 Intangible fixed assets- goodwill Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. Its it initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losse5. Goodwill shall be considered to have a finite useful life and shall be amortised on a systematic basis over its life. 1.7 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cosi less accumulated amortisation and accumulated impairment10sses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost or value of the asset can be measured reliably. Amortisation is recognised so as to write off the cost or valuation of assets le5S their residual values over their useful lives on the following bases: Customer relationship Brand Cloud-based server up to 8 years up to 8 years Over 5 year5 1.8 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at C05t or valuation, net of depreciation and any impairment losses. Depreciations is recognised so as to write off the cost or valuation of assets less their residual value over their expected useful lives on the following bases-. Leasehold improvements Plant and equipment Fixtures and fittings Over the life of the lease Between 3 and 6 years Over 5 years The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the a55et and is recognised in net income/lexpenditurel for the year. 1.9 Impairment of fixed assets At each reporting end date, the charity review5 the carrying amounts of its tangible and intangible assets to determine whether there is any indication that these assets have 23-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2023 l. Accounting policies (Continued) suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment Ios5 lif any). Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired. 1.10 Flxed assets investments Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immed lately in net incomellexpenditurel for the year. 1,11 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other shirt-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.12 Financial instruments The charity has elected to apply the provisions of Section 11 'Baslt Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FR5102 to all of its financial instruments. Financial instruments are recogni5ed in the charitvs balance sheet when the charity become5 party to the contractual provision of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Busicfinanciul ussets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the trans3Ction is measured at the present value of the future receipts discounted at a market rate of Interest. Financial a55ets classified as receivable within one year are not amortlsed. Basicfinanclul11¢7bilities Basic financial liabilitie5, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at -24-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 l. Accounting policies (Continued) a market rate of interest. Financial liabilities classified as payable within one year not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non- current liabilities. Trade creditors are recognised initialSy at transactiofi prlce and subsequently measured at amortised cost using the effective interest method. Derecognition offinanciol liobilitles Financial liabllities are derecognised when the charltvs contractual obligations expire or are discharged or cancelled. 1.13 Employee benefit5 The cost of any unused holiday entitlement is reco8nised in the period in which the employee's services are received. Termination benefits are recogni5ed immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.14 Retirement benefits Payments to defined contribution retirement benefit schemes are charged a5 an expense as they fall due. The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method and is based on actuarial advice. The change in the net defined benefit liability arising from employee service during the Year is recognised as an employee costs. The cost of plan introduction5, benefit changes, settlements and curtailments are recognised as incurred. The net interest element is determlned by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest Is recognised in incomellexpenditurel for the year. Re-measurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and1055es in 25-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUIY2023 l. Accountlng policies {Continued) the period In which they occur and are not reclassified to income/lexpenditurel in subsequent periods. The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the prevent value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obliEation5 are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme. 1.15 Basis of consolidation In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost o* the combination includes the e5timatecl amount of contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in the previous periods are adjusted retrospectively for final fair values determined in the 12 month5 following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at costs less impairment. The consolidated finantial statements incorporate those of Crescent Purchasing Limited and all of its subsidiaries lie entitie5 that the group controls through its power to govern the financial and operating policies so as to obtain economic benefit51. Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up 31 July 2023. Where appropriate, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by other members of the group. All intra-group transactions, balances and unrealised gain5 on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Tenet Education Services Limited and Tenet Procurement Services Limited have been included in the group financial statements using the purchasing method of accounting. Accordingly, the group statements of financial activities and statement of cash flows include the results and cash flows of Tenet Education Services Limited and Tenet Procurement Services Limited. 26-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 2. Critical accounting estimates and judgements In the application of the charity's accountlng policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumption5 are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the perlod of the revision and future periods where the revision affects both current and future periods. During the current or preceding financial statements, no critical judgements or estimates were used in the preparation of these financial statements. 3. Charitable 3Ctivlties Group 2023 Group 2022 Charitv 2023 Charity 2022 Marketing premiL¢ms Service5 rendered Other income 2,816,772 2,452,931 2,793,070 2,412,784 2,195,908 2,118,685 114,910 78,457 421,239 325,036 5,127,590 4,650,073 3,214,309 2,737,820 4. Investments 2023 2022 Interest receivable 76,660 10,412 All of the Group'5 investment income of £76,660 12022.. £10,412) arises in Crescent Purchasing Limited from money held in interest bearing deposit accounts. -27-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2023 5. Charitsble activities Group 2023 Group 2022 Charity 2023 Charitv 2022 Employee costs Occupancy costs Telephone Postage and stationery Insurance Legal costs Travel costs Recruitment and training Marketing and advertising Crescent learning Procurement partner and member shared income Health, safety and employee wellbeing Consultancy fees Provision for bad debts Bank charges Other expenditure Donations to Charity Icr costs 2,794,450 2,811,756 1,019,179 1,235,303 84,706 77,445 84,706 77,445 28,358 19,272 17,275 14,330 5,325 6,178 4,132 4,639 56,056 49,819 56,056 49,819 45,345 15,046 7,345 3,381 72,191 55,520 18,357 14,628 70,228 47,142 59,482 42,966 141,254 117,134 141,020 115,909 9,329 8,600 9,329 8,600 5,077 13,569 55,077 113,569 10,587 12,201 3,520 2,635 7,228 loo 84,685 7,046 17,136 789 2,669 6,152 9,594 5,747 1,600 789 1,555 5,196 17411 1,455 6,850 loo 59,182 71,269 47,772 3,433,275 3,326,542 1,548,398 1,743,248 Grant Funding Activities (see note 61 Share of support costs (see note 71 Share of governance costs (see note 71 34,130 367,959 34,130 367,959 1,086,717 28,303 899,019 25,850 953,211 16,925 766,550 15,470 4,582,425 4,619,370 2,552,664 2,893,227 Analysis by fund Unrestricted funds- general Unrestricted funds- designated 4,548,295 4,251,411 2,518,534 2,525,268 34,130 367,959 34,130 367,959 4,582,425 4,619,370 2,552,664 2,893,227 -28-

CRESCENT PURCHASING LIMITED NOTESTO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 6. Grant funding activities Reinvestment activities payable into the education sector 15 expenditure made from the charity's designated funds towards agreed projects detailed in the Trustees report and note 22. This expenditure falls outside of standard operational cost5 and may lead to deficits in some years. The operational surplus that would have been stated had this reinvestment Into the sector not happened is shown. Group 2023 Group 2022 Charity 2023 Charity 2022 Net income for the year Expenditure from designated funds 622,325 34,130 41,115 367,959 737,500 34,130 131,980 367,959 499,939 Operational surplus 656,455 409,074 771,630 7. Group 5UPPOrt costs Support Cost Governance 2023 2022 Basis of allocation costs Employee costs Depreciation and amortisation Audit fees Legal and professional Accounting services 913,037 173,680 913,037 725,116 Administration 173,680 173,903 support 8,100 8,100 8,000 Governance 12,843 12,843 10,490 Governance 7,360 7,360 7,360 Governance 28,303 1,115,020 924,869 1,086,717 Analysed between Charitable activities 1,086,717 28,303 1,115,020 924,869 Governance costs includes payments to the auditors of £8,10012022.' £8,000) for audit fees. 29-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2023 Charity Support Cost Governance costs 2023 2022 Basls of allocation Employee costs Depreciation and amortisation Audit fee5 Legal and professional Accounting services 913,037 40,174 913,037 40,174 725,116 Administration 41,434 support 5,100 8,270 3,555 5,100 5,000 Governance 8,270 6,915 Governance 3,555 3,555 Governance 970,136 782,020 953,211 16,925 Analysed between Charitable activities 953,211 16,925 970,136 782,020 Governance costs includes payments to the auditor5 of £5,10012022.' £5,000) for audit fees. 8. Net Movement in funds Group 2023 Group 2022 Charity 2023 Charity 2022 Net movement in fijnds 15 stated after chargingllcreditingl Fees payable to the company's auditor for the audlt of the company's financial statements Operating lease costs Depreciation of owned tangible fixed assets Amortisation of intangible a55ets 8,100 43,676 33,570 140,110 8,000 42,747 33,793 140,110 5,100 43,676 25,064 15,110 5,000 42,747 26,324 15,110 9. Trustees None of the trustees lor any person5 connected with theml, except for the Managing Director, received any remuneration during the year. Two trustees were reimbursed travelling expenses in the year of £16112022.. £2951. Please see note 10 for further disclosure of remuneration of key management personnel. 30-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2023 10. Employee5 Numberofemployees The average monthly number of employees during the year were.. Group 2023 Number 80 Group 2022 Number 74 Charlty 2023 Number 38 Charity 2022 Number 36 Professional and administrative Employment costs 2023 2022 2023 2022 Wages and salarles Social security Costs other pension costs 2,992,228 2,609,074 309,248 278,162 406,011 649,636 1445,556 1,232,126 145,808 128,692 340,852 599,601 3,707,487 3,536,872 1,932,216 1,960,419 Included within employment Costs of the charity are employee restructuring payments (both contractual and non-contractuall totalling £27,94612022: nil) which are fully paid within the year. Included within other pension costs are current service5 Costs and associated interest expense on defined benefit pension plans. During the year, the company recognised current service costs and interest expenses from defined benefit pension plans of £198,00012022.' £480,000). Included within support costs are wages to the value of £913,037 for the Human Resources, Finance and Communications departments through virtue of shared service to all the charitable activities. The number of employees whose annal remuneration was £60,000 or more. Group 2023 Number Group 2022 Number Charity 2023 Number Charity 2022 Number Directors Employee5 Darren Lowe Imanaging Director) is the only key management personnel associated with the direct running of the charity. Darren Lowe was paid total renumeration of £122,820 12022.. £109,715). The remuneration for Darren Lowe was provided in his capaclty of Managing Director of the charitable activities and not in his capacity of trustee of the 31-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 charity. Included within total remuneration were pension contributions totalling £11,031 12022.. £9,2291. 11. Taxatlon The charity is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or section 252 of the Taxation of CharEeable Gains Act 1992 to the extent that these are applied to its charitable objects. 12. Group intanglble fixed assets Goodwlll Customer relationship Brand Total Cost At l August 2022 and 31 July 2023 1,804,474 69,003 366,523 2,240,000 Amortisation and impalrment At l August 2022 Amortisation charged for the year 1,672,236 70,000 52,004 275,760 2,000,000 8,750 46,250 125,000 At 31 July 2023 Carrying amount At 31July2023 At 31July 2022 1,742,236 60,754 322,010 2,125,000 62,238 8,249 44,513 115,000 132,238 16,999 90,763 240,000 Charity intangible flxed assets Goodwill Cost At I AuEUSt 2022 and 31 July 2023 1,250,000 Amortlsation and impairment At l August 2022 Amortisation charged for the year 1,250,000 At 31 July 2023 Carrylng amount At31July 2023 At 31 July 2022 1,250,000 -32-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 JULY 2023 13. Group other intangible fixed assets Customer relationship management system Cloud based server Total Cost At l August 2022 and 31 July 2023 80,492 8,500 88,992 Amortisation and Impairment At l August 2022 Amorti5ation charged for the year 29,309 13,410 1,983 31,292 1,700 15,110 At 31July2023 Carrying amount At 31July 2023 42,719 3,683 46,402 37,773 4,817 42,590 At 31 July 2022 51,183 6.517 57,700 Charity intangible flxed assets Customer relationship management system Cloud based server Total C05t At l August 2022 and 31 July 2023 80,492 8,500 88,992 Amortlsation and impalrment At l August 2022 Amortisation charged for the year 29,309 13,410 1,983 31,292 1,700 15,110 3,683 46,402 At 31 July 2023 Carrylng amount At 31July 2023 42,719 37,773 4,817 42,590 At 31 July 2022 51,183 6,517 57,700 33-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2023 14. Group tangible fixed assets Leasehold improvements Plant and Fixtures equipment and fittlngs Total Cost At l August 2022 Additions Les5 Disposals 58,757 62,043 18,155 15,6211 29,417 150,217 18,155 15,6211 At 31July2023 58,757 74,577 29,417 162,751 Depreciatlon and Impairment At l August 2022 Depreciation charged in the year Less disposals 39,982 9,795 35,676 18,151 14,4581 21,045 5,624 96,703 33,570 14,4581 At 31 July 2023 49,777 49,369 26,669 125,815 Carrying amount At 31July 2023 8,980 25,208 2,748 36,936 At 31 July 2022 18,775 26,367 8,372 53,514 Charity tangible flxed a5setS Leasehold Improvements Plant and Fixtures equipment and fittings Total Cost At l August 2022 Additions Less Disposals 58,757 33,196 12,010 12,8761 29,417 121,370 12,010 12,8761 At 31 July 2023 58,757 42,330 29,417 130,504 Depreciation and impairment At l August 2022 Depreciation charged In the year Less disposals 39,982 9,795 21,179 9,645 12,876 21,045 5,624 82,206 25,064 12,8761 At 31 July 2023 49,777 27,948 26,669 104,394 Carrylng amount At 31July 2023 At 31 July 2022 8,980 14,382 2,748 26,110 18,775 12,017 8,372 39,164 -34-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 15. Charity flxed asset investments other Investments Cost or valuation At l August 2022 & 31 July 2023 Carrying amount At 31July 2023 1,377,962 1.377,962 At 31July 2022 1,377,962 2023 2022 Other investments comprise.. Investments in subsidiarles 1,377,962 1,377.962 16. Financial instrument5 Group 2023 Group 2022 Charity 2023 Charity 2022 Carrying amount of financial assets Debt instruments measured at amortised cost Carrying amount of financial liabilities Measured at amortised cost 366,314 422,799 148,368 90,430 510,637 414,285 368,279 323,013 17. Debtors: amounts falling due wlthin one year: Group 2023 Group 2022 Charity 2023 Charity 2022 Trade debtors Amounts owed by subsidiaries other debtors Prepayments and accrued income 363,430 416,099 63,689 25,132 81,795 61,270 2,884 4,028 630,963 848,008 2,884 641,366 6,700 862,858 1,007,680 1,285,657 779,331 938,438 -35-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2023 18. Creditors: amounts falling due within one year Group 2023 Group 2022 Charity 2023 Charity 2022 Other taxation and social security Trade creditors Amounts owed to subsidiaries Other creditors Accruals and deferred income 306,828 273,175 86,096 43,532 154,318 99,986 77,662 41,422 1,830 1,143 7,424 28,021 281,363 252,427 20,196 39,802 404,345 330,951 817,465 687,460 522,597 422,999 Deferred income within the charity relate5 to suppliers sponsorships of the CPL village within external exhibitions, namely the Schools and Academies Show ISAASI. The full balance of £12,775 will be utilised in the November 2023 SAAS. Deferred income Group Charltv Balance at l August 2022 Released from prevlous years Resources deferred in the year 6,800 5,000 16,8001 15,0001 12,775 12,775 Balance at 31 July 2023 12,775 12,775 19. Defined benefit pension surplus / provision for liabilities The WYPF pension scheme value as at 31 July 2023 continues to show the company as having a pension asset as at 31 July 2023. The latest actuarial valuation for the penslon scheme related to the period ended 31 March 2022. In accordance with applicable accounting standards, the asset value has been deemed to be recognisable on the basis that the company has expectations of reduced future employer contributions at some point during the life of the plan. Although a pension asset is arisingi this does not create an immediately realisable a55et that can be expended for the Specific purposes of the pension fund. 36-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 Group 2023 Group 2022 Charity 2023 Charity 2022 Retirement benefit a55et I obligations Note 790,000 492,000 790,000 492,000 20 790,000 492,000 790,000 492,000 20. Retlrement benef it schemes Defined contribution schemes The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an iridependently administered fund. The charge to profit or loss in respert of defined contribution schemes was £163,000 12022.. £71,000). Defined beneftt schemes Key ossumptions 2023 2022 Discount rate Expected rate of increase of pensions in payment Expected rate of salary increases Inflation assumption ICPII 4.90 2.60 3.85 2.60 3.40 2.50 3.75 2.50 Iwortality assumptions The assumed life expectations on retirement at age 65 are- 2023 Years 2022 Years Retiring today Males Females 21.0 24.1 21.8 24.6 Retiring in 20 years Males Females 22.2 22.5 25.7 25.1 37-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 Amounts recogni5ed in the profit and loss account: 2023 2022 Current service cost 386,000 143,000 1163,0001 563,000 107,000 171,0001 Net interest on defined benefit liability/la5setl Other costs and income Total cost5 366,000 599,000 Amounts taken to other comprehensive income- 2023 2022 Actual return on scheme assets 255,000 1442,0001 RetLJrn on scheme assets excluding interest income Actuarial changes related to obligations 255,000 1442,0001 1751,0001 12,722,000) The amounts included in the balance sheet arising from the charit(s obligations in respect of defined benefit plans are as follows.. 2023 2022 Present value of defined benefit obligations Fair value of plan assets Surplus in scheme 4,027,000 4,185,000 14,817,000) 14,677,0001 1790,0001 1492,0001 Movements in the present value of defined benefit obligation5'. 2023 2022 Liabilities at l August 2022 Current service cost Benefits paid Contributions from scheme members Actuarial EaSns and losses Interest cost 4,185,000 6,397,000 386,000 563,000 134,0001 1234,0001 98,000 74,000 1751,0001 12,722,000) 143,000 107,000 4,027,000 4,185,000 At 31 July 2023 -38-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 The defined benefit obligations arise from plans which are wholly or partly funded. Movements in the fair value of plan assets.. 2023 2022 Fair value of assets at l August 2022 Return on plan assets (excluding amounts included in net) Benefits Contributions by the employer Contributions by scheme members Other 4,677,000 4,205,000 1255,0001 442,000 134,0001 1234,0001 168,000 119,000 98,000 74,000 163,000 71,000 At 31July 2023 4,817,000 4,677,000 The fair value of plan assets at the reporting period end was as follows= 2023 2022 Equity instruments Debt instrument5 Propertv Cash Other 3,858,000 3,709,000 573,000 524,000 159,000 187,000 188,000 187,000 39,000 70,000 4,817,000 4,677,000 39-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 21. Designated funds The income fund5 of the charity include the following designated funds which have been set aside out of unrestricted fund by the trustees for specific purposes.. Balance at Incoming Resources Balance at 01 August Resources expended 31 July 2022 2023 Subsidised costs for Tenet On-Dem3nd Regional Procur.Ed Conferences Other education sector charity donations Sponsorship of Student EventslActivities Facilitate Procurement Advisory Group 32,030 45,000 28,230 3,800 25,000 20,000 286,779 4.768 120,0001 20,000 150,000 136,779 5,000 232 IPAGI Facilitate Estate Group Marketing and materials 2,708 10,000 231,517 68 5,600 34,130 2,640 4,400 347,387 150,000 22. Analysls of net assets between funds Unrestricted Designated Restricted 2023 2023 2023 Total 2023 Total 2022 Fund balances at 31 July 2023 are represented bv: Intangible fixed a55ets goodwill Intangible fixed assets other 115,000 115,000 240,000 42,S90 42,590 57,700 Tangible assets Current asset5 Pensions and Provisions 36,936 5,515,634 790,000 6,500,160 36,936 53,514 500 5,863,521 4,886,508 790,000 492,000 500 6,848,047 5,729,722 347,387 347,387 -40-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 23. Operating lease commitments At the reporting end date, the charity had outstanding commitments for future minlmum lease payment5 under non-cancellable operating leases, which fall due as follows: Group 2023 Group 2022 Charlty 2023 Charity 2022 Within one year Between two and five years In over five years 32,269 930 43,676 33,199 32,269 930 43,676 33,199 33,199 76,875 33,199 76,875 24. Related party transactions The Charity has taken advantage of the exemption available in Section 33.IA of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group. The Trustees are employed by institutions that are also members of CPL and benefit from the usage of its frameworks and CPL Learning activities. A Trustee is associated to Hopwood Hall College and Leeds College of Building which also access the procurement managed service provided by Tenet. Grants payable from designated funds are available to all member institutions that pass the relevant criteria. This 15 therefore open to institutions which employ the trustees of the charity. No Trustees are involved in the review and approval of grant applications. -41-

CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y2023 25, Subsldlarles Consolidated financial statements for parent charitable companies are required under the Charity SORP IFR51021 Details of the Charitws subsidiaries on 31 July 2023 are as follows- Name of undertaking Registered office Nature of business Class of shares held % Held Direct United Kingdom Provision of advisory Ordinary 100.00 and consultancy services United Kingdom Provision of advisory Ordinary 100.00 and consultancy services Tenet Education Services Limited (No. 030494741 Tenet Procurement Services Limited (No. 100213981 All investments in subsidiaries are held at cost less provision for impairment and are eliminated upon consolidation. 26. Cash generated from operations 2023 2022 Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Amortisation and impairment of intangible assets Depreciation and impairment of tangible fixed assets Difference between pension charge and cash contributions 622,325 41,115 176,6601 110,4121 140,110 140,110 33,570 33,793 198,000 480,000 Movements in working capital= Decrease/llncreasel in debtors Increase in creditors 277,977 1239,5551 130,005 20,734 465,785 Cash generated from operations 1,325,327 27. Post Balance Sheet Event On 20 September 2023 a legal settlement was agreed to the value of £18,000. The value of this had already been accrued withln the financial statements along with relevant legal expenses. -42-

Management letter Prepared for the board of trustees of Crescent Purchasing Limited (Group) For the year ended 31 July 2023

Crescent Purchasing Limited (Group) – Audit findings letter 2023

Contents

Page
1 Introduction 1
2 Statutory audit communication 2
2.1 Objectivity and independence 2
2.2 Audit approach and materiality 4
2.3 Accounting policies 5
2.4 Significant findings 5
2.5 Accounting estimates and judgements 6
2.6 Reconciliation of audited profit/loss 6
2.7 Significant difficulties encountered during the audit 7
2.8 Accounting and financial controls 8
2.9 Management representations 8
2.10 Audit opinion 8
3 High risk areas 8
3.1 Other areas of focus 9
4 Other audit findings 14

Crescent Purchasing Limited (Group) – Audit findings letter 2023

1. Introduction

We are pleased to set out in this document our report to the trustees of Crescent Purchasing Limited (group) for the year ended 31 July 2023.

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 2 August 2018 in order to express an audit opinion for UK statutory purposes on the financial statements of Crescent Purchasing Limited (group) for the year ended 31 July 2023. We have complied with the Financial Reporting Council’s Ethical Standard and all threats to our independence, as identified to you in our audit plan letter dated 4 September 2023, have been properly addressed through appropriate safeguards. No additional facts or matters have arisen during the course of the audit that we wish to draw to your attention and we confirm that we are independent and able to express an objective opinion on the financial statements.

In this report, we present the key findings from our audit, together with a commentary on the significant matters arising. The matters that have been reported are limited to those deficiencies identified during the audit which we have concluded are of sufficient importance to bring to the attention of those charged with governance. This report has been discussed comprehensively and agreed with D Owen.

This report has been prepared for the sole use of the trustees of Crescent Purchasing (group). No reports may be provided to third parties without our prior consent. Consent is, and will only be, granted on the basis that such reports are not prepared with the interests of anyone other than the charitable group in mind and that we accept no duty or responsibility to any other party. No responsibilities are accepted by DJH Mitten Clarke Audit Limited towards any party acting or refraining from action as a result of this report.

We would like to express our thanks to all members of staff who assisted us in carrying out our work.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

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 2023.

In addition to auditing the financial statements we also provided, through other individuals, non-audit services to Crescent Purchasing Limited (group) for the year ended 31 July 2023. We have outlined below the safeguards that we have put in place to ensure that these services provided do not cause any breaches in our independence and objectivity in relation to the audit.

Non audit service provided
Corporation
tax
advisory
and
compliance services		 Safeguards put in place to reduce the threat to our integrity, independence and
objectivity
This service is provided by a separate team from those who have audited the financial
statements.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

To maintain our independence as auditors we can also confirm that:

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 director and audit staff is not impaired.

Our audit planning has taken account of the issues highlighted through discussions with D 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.

Legal and regulatory requirements

In undertaking our audit work we considered compliance with the following legal and regulatory requirements, where relevant:

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 1% turnover.

.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

We have considered this level of materiality based on the draft accounts for the year ended 31 July 2023 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.

2.4 Significant findings

There are no significant matters that we feel need bringing to the attention of the trustees.

In planning and carrying out our work, we applied a group materiality level to Crescent Purchasing Limited (group) of £55,000 based on turnover.

2.5 Accounting estimates and judgements

Depreciation is provided on a straight line basis on the cost of tangible fixed assets, to write them down to their estimated residual values over their expected useful lives.

2.3 Accounting policies

The principal annual rates used were as follows:

In preparing the financial statements of the charitable group, trustees are required under FRS 102 to review the accounting policies on an annual basis to ensure they remain appropriate to the circumstances of the charitable group and are properly applied.

We have reviewed the accounting policies selected and operated by the charitable group, and are satisfied that they are acceptable.

Leasehold improvements Over the life of the lease
Plant and equipment 3 to 6 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

2.6 Reconciliation of audited profit/loss

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

The surplus per the financial statements has been derived as follows (after adjusting for the WYPF report):

Surplus per the consolidated trial balance
Surplus per the financial statements		 Crescent
Group
1,118,325
1,118,325		 Tenet
Tenet
Crescent
Education
Procurement
1,108,500
1,057
8,768
1,108,500
1,057
8,768

There are uncorrected misstatements totalling £25,455 as set out in the appendix.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

2.7 Significant difficulties encountered during the audit

We did not encounter any significant difficulties during the audit.

2.8 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.

2.9 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.

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 Audit opinion

Based upon the findings and conclusions of our work, we expect to issue an unqualified audit opinion on the financial statements.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

3. Significant risk audit areas

Our review of the high risk audit areas as noted in our audit planning letter dated 4 September 2023 is as follows:

----- Start of picture text -----
Issue Audit risk Audit procedures undertaken Conclusion
----- End of picture text -----

Issue
Audit risk
Audit procedures undertaken
Conclusion		 Issue
Audit risk
Audit procedures undertaken
Conclusion		 Issue
Audit risk
Audit procedures undertaken
Conclusion		 Issue
Audit risk
Audit procedures undertaken
Conclusion
Revenue recognition in respect of
ensuring that all income received
by the charitable group is
recognised in the correct period.
The cut off on income needs to be
established correctly to ensure that
income is not over or understated.
Completeness of income is to be
established to ensure all income
receivable in the year has been
recognised appropriately.		 Income not being
recognised in accordance
with FRS 102 recognition
criteria and per any
underlying agreements.		 The accounting policies adopted by
the charitable group were
reviewed, considering the guidance
available in FRS 102 and the
recognition criteria of entitlement,
certainty and measurement.
A review of cut off has been
performed in line with the
accounting policies mentioned
above.
Discussions were held with
management and meeting minutes
reviewed to identify any
unexpected one-off sources of
income and to ensure that the
accounting treatment is
appropriate.		 We are satisfied that the income
within the group has not been
materially misstated. Please
refer to section 4.1 for findings
in relation to income.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

Issue Audit risk Audit procedures undertaken Conclusion
Management override of internal
controls		 Potential risk of
management override of
internal controls (this
being a presumed risk
inherent within current
auditing standards).		 A suitable level of professional
scepticism was applied throughout
all areas of audit testing.
We reviewed manual journals and
accounting estimates such as
accruals and provisions and
consider any pressures on
management to achieve results.		 We have not identified any
instances of management
override.
Going concern It is the responsibility of
the trustees to assess the
ability of the charitable
group 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.		 We have reviewed the
considerations of management
including cash flow forecasts and
budget reports in relation to the
going concern assumptions made.		 We concur with management’s
assessment of going concern
disclosures within the accounts.
We are satisfied that the group
as a whole is a going concern,
however the fact that the trade,
assets and liabilities of Tenet
Education Services Limited will
be transferred into Crescent
Purchasing Limited (the parent)
within the next 12 months
means that the preparation of
the accounts for this company is
correct to be prepared on a
basis other thangoingconcern.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

3.1 Other areas of focus

Our review of other risk areas as noted in our audit planning letter dated 4 September 2023 is as follows:

Issue Audit risk Audit procedures undertaken Conclusion
Value of 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.
Pension valuation 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 2023 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.

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Crescent Purchasing Limited (Group) – Audit findings letter 2023

4. Review of systems and internal controls

4.1 Introduction

During our audit we have reviewed the charitable group’s systems in relation to accounting and internal control. Our review was solely for the purpose of the audit and our responsibilities under International Standards on Auditing (UK and Ireland). If you wished us to carry out a comprehensive review for weaknesses of systems in order to present detailed recommendations for improvement, we would need to carry out a more extensive review under a separate engagement.

Audit finding Potential effect
1 During our income testing, it was identified some rebates had
been invoiced at a lower rate than the contract in place. We are
aware that this has been fully investigated internally with an
underbilled amount identified for the year ended 31 July 2023 of
£6,955 and for prior periods of £22,413.		 The decision made internally on this occasion is that no invoices
will be raised for the prior period and that for the year to 31 July
2023 the relevant customers will be asked if they wish to make a
donation to the “giving back” fund rather than being invoiced.
The financial impact prior to any customer donating to the fund is
understated income across 4 years of £29,368.
We would suggest that going forward a check is put in place to
ensure the correct rebate percentage is included on the database.
This is a manual entryand therefore could easilybe mistyped.
2 The insurance rebate and interest received had been included
within box 6 of the VAT returns in the year. Previously the
amounts were trivial, however due to higher interest rates this
year the interest values were material.		 Although there is no financial impact, HMRC will sense check
values included in box 6 across the year against the income
within the financial statements and can raise a query where there
are significant differences.

10