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← The Education And Training Foundation

2024-03-31-accounts

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TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

ETFOUNDATION.CO.UK

Contents Contents
Welcome 03
1 About Education and
Training Foundation (ETF)		 05
2 Strategic report 06
3 Trustees’ report 20
4 Independent auditor’s
report to the trustees		 31
of ETF
5 Statement of financial
activities		 35
6 Balance sheet 36
7 Statement of cash flows 37
8 Notes to the financial
statements		 38

3 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

Welcome

ETF has for over ten years held a pivotal role in supporting the Further Education (FE) and Skills sector across England. Through its initiatives, ETF drives professionalism, enhances teaching and learning, champions inclusion, and enables sector change, ultimately transforming the lives of learners aged 14 and above. ETF’s work includes commissioning and delivering professional workforce development programmes, operating the Society for Education and Training (SET), and providing leadership in addressing key sector challenges.

– In 2023 24, the ETF Board appointed a new Chair, Sir Frank McLoughlin CBE, who is one of the leading voices in the FE and Skills sector. One of his first responsibilities was to lead the Board to oversee the launch of the charity’s new strategy, “ Together we transform”, focusing on four strategic goals.

1

2

3

4

Drive professionalism: we will champion professionalism and grow the evidence base of education and leadership practice, making FE and Skills a rewarding career destination.

Improve teaching and learning: we will ensure consistency in learner experience by setting clear competences and conduct required to enter and maintain professional status within FE and Skills.

Champion inclusion: we will tackle inequalities in the FE and Skills workforce, supporting routes to employment and career development by providing lifelong learning to all.

Enable sector change: we will convene sector change and respond to the FE and Skills workforce needs by working in partnership.

ETF’s first Theory of Change (ToC) was introduced to link these strategic goals to specific outputs and outcomes, guiding future business planning and impact reporting.

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Key achievements in 2023–24 included :

Professionalism: QTLS Over 23,000 SET members and 50 Corporate Partners were supported, with 620 members achieving Qualified Teacher Learning and Skills (QTLS) status. _ Oh Teaching and Learning: Programmes including T Level Professional Development and leadership training saw strong engagement, with over 14,000 participants. ~~= —~~ Inclusion: ~~— = tS~~ : ~~LA~~ ETF partnered with the Black Leadership Group and launched the Inclusive Leadership program, enhancing sector-wide inclusivity. VS Sector Change: ETF led discussions on systemic challenges in FE through partnerships SI ~~Q —-=~~ with institutions like Saïd Business School, University of Oxford, culminating in the “Further Education and Skills: Changing Systems of Change” report. View on ETF website

Looking forward, ETF aims to embed its strategic goals into its operations, focusing on:

expanding professional networks and memberships

delivering world-class CPD programmes influencing workforce development and promoting sector professionalism

enhancing digital learning experiences

ETF is committed to being sector-focused, outward-facing, impact-driven, intelligenceinformed, and sustainable in its operations, ensuring it remains a key driver of progress in the FE and Skills sector.

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About ETF 1 Every day, educators and leaders across the FE and Skills sector inspire curiosity, drive progress and empower learners to achieve their potential.

ETF is here to amplify the vital role of the FE and Skills workforce. Working in partnership, we drive professionalism by setting professional standards for the quality of teaching and leadership across the sector. We provide educators with professional development throughout their careers, we champion inclusion, and we embrace change in support of a thriving FE and Skills sector. Together, we are transforming lives and opportunities for learners aged 14 and above.

We support educators across FE and Skills to help them to achieve their professional development goals for the benefit of learners and employers across England. In doing so, we help to transform the lives of individuals and communities across the country, unleashing potential and benefiting the economy. Our activities include the commissioning and delivery of professional workforce development programmes (e.g. leadership development, T Level Professional Development, Maths and English enhancement) and the running of the sector’s professional membership body, the Society for Education and Training (SET).

This report provides our many and varied stakeholders with an overview of the charity’s – activities in 2023 24, as well as looking forward – into 2024 25. It brings into one place the strategic trustees’ reporting, as well as providing the – 2023 24 financial statements and our auditor’s reflections. We have tried to strike a balance of providing information detailing our strategy, governance, delivery activities, impact and financial position while keeping this report a manageable length. Should you like to explore any areas in more detail, the ETF website contains a lot more – information and the 2021 23 Impact Report goes into more detail about our impact on the FE and Skills sector. Please reach out to the Company Secretary (Dr Gina Hobson) if you have any questions about the content.

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Strategic report 2 In 2023–24, following extensive work with the sector, stakeholders and staff, the charity’s new strategy, Together We Transform, was finalised and launched. It recognises that the charity needs to become more rooted in the FE and Skills sector and sets out our plans to support everyone working in FE and Skills by championing the vital role of educators and leaders in transforming the lives of learners aged 14 and over. The new strategy places sector voices at its heart and reflects the feedback and input from an extensive listening exercise involving sector organisations and teachers, trainers and leaders from across the FE and Skills sector.

Our four strategic goals are as follows:

Drive professionalism: we will champion professionalism and grow the evidence base of education and leadership practice, making FE and Skills a rewarding career destination (see section 2.1 for detail regarding performance against this strategic goal).

Improve teaching and learning:

we will ensure consistency in learner experience by setting clear competences and conduct required to enter and maintain professional status within FE and Skills (see section 2.2).

Champion inclusion: we will tackle inequalities in the FE and Skills workforce, supporting routes to employment and career development by providing lifelong learning to all (see section 2.3).

Enable sector change: we will convene sector change and respond to the FE and Skills workforce needs by working in partnership (see ~~oe~~ section 2.4).

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The strategic goals and new objectives are accompanied by our recently developed ToC, which demonstrates how the charity’s activities, linked to the four strategic goals, generate outputs, outcomes and ultimately determine impact. This is the first ToC we have produced, and it acknowledges the systemic complexity in which ETF operates where the charity may have little, if any, control (e.g. pay and conditions of sector professionals, wider funding environment, policy landscape). In this context, ETF is taking a broad impact approach, positioning the charity in the FE and Skills environment and clearly stating where ETF makes a direct contribution and where contribution is indirect or assumed. In 2024–25, we will be embedding the ToC into our business planning and using it to strengthen our impact

reporting. We will also be using the ToC with the sector to work toward our objective to enable sector change and articulate the sector’s impact to the economy and society as a whole.

In the following sections, you’ll find more detail about the impact ETF has made in 2023–24, reporting against our four strategic goals. While good progress has been made across a number of areas, there is still important work to be done to ensure that we: remain sector-focused and outward-facing; impact and outcomes-driven; informed by intelligence; and sustainable and agile. Section 2.5 of the Strategic Report provides further – information about our priorities in 2024 25. If you would like to read more about the charity’s impact, – our full Impact Report (2021 2023) is available on the ETF website.

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2.1 Driving professionalism

Supporting educators and leaders to excel through the very best development opportunities and championing the professionalism of our diverse and vibrant sector has always been — and will continue to be — central to our work. For ten years we have played a leading role in driving the professionalism of the sector through our Professional Standards and professional designations to develop and enhance practice, providing educators with a pathway of progression throughout their careers.

Some of the ways we drive professionalism

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– Highlights from 2023 24

• We support, recognise, and empower more than 23,000 individual SET members from across the profession to drive excellence and raise educational standards that directly impact the future workforce.

• In August 2024, more than 620 members earned QTLS status, with another 750 beginning their journey in January 2024. Since its launch in 2007, nearly 27,000 professionals have achieved QTLS status, an accreditation that significantly enhances their teaching expertise, boosts their career prospects, and empowers them to make a lasting impact on students’ lives.

• Since its launch in 2017, 266 individuals have successfully achieved ATS, demonstrating their commitment to excellence in education and setting the benchmark for peers. In October 2023, 54 members started on their ATS journey, with completion expected by late 2024.

• We hosted 19 impactful webinars in 2023–24 as part of our commitment to members, each designed to challenge thinking and support continuous professional development. The sessions tackled a wide range of critical and timely issues and attracted more than 2,400 registrations.

• In 2023–24, we strengthened our Practitioner Advisory Group (PAG) by welcoming 23 new members, bringing the total to 39 active participants. PAG plays a critical role in shaping our strategy by providing invaluable insights into member experiences, needs and aspirations.

• In January 2024, more than 260 professionals from across the sector gathered in Birmingham for the SET annual conference. Delegates were energised by inspirational speakers, gained practical insights on a wide range of topics, and took full advantage of invaluable networking opportunities.

• We continued to strengthen key partnerships with Saïd Business School, University of Oxford and Kings College, who are working with us to deliver DfE flagship strategic and senior leadership programmes.

• We worked in partnership with the Royal Commission for the Exhibition of 1851 to deliver the prestigious Technical Teaching Fellowships. Six exceptional teachers have been awarded fellowships in the last two years.

• We weaved thought pieces and voices from the sector through our four new leadership toolkits. Topics include Leading for Sustainability, Leading Professional Standards, Deeper Thinking, Stronger Action and Leading on Curriculum Planning for the Adult Community Education Sector. We have also developed a series of blogs and articles focusing on different aspects of thought leadership.

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2.2 Improving teaching and learning

The world of education is undergoing unprecedented change with the shift to hybrid and flexible learning, the growth in use of artificial intelligence in learning and business settings, changes in assessment as well as the rising mental health challenge.

We believe that the key to high-quality learning experiences for learners is to support educators and leaders to excel. By providing the very best workforce development and training opportunities, ETF is supporting educators to transform the lives of learners aged 14 and over.

Over the past year, ETF has made significant strides in enhancing the professional development of teachers and leaders within the FE and Skills sector. Through a range of targeted CPD programmes, we have seen high engagement and satisfaction levels, with participants reporting increased knowledge, skills, and confidence. Through our CPD programmes, ETF continues to provide opportunities for educators to connect with other professionals and, by doing so, enables wider learning and the development and strengthening of communities of practice. These initiatives reflect ETF’s dedication to and impact on enhancing workforce development, leadership skills, and inclusivity in the FE and Skills sector.

Some of the ways we improve teaching and learning include:

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Highlights for 2023–24 include:

Key programme area

Centres of Excellence in SEND: Our four Centres of Excellence in Special Educational Needs and Disabilities (SEND) have delivered comprehensive support, including specialist oneto-one provision for leaders and communities of practice for managers and practitioners.

Apprenticeship Workforce Development (AWD) programme (Phase 2):

Delivering a range of activity through training needs analysis, professional development and collaborative projects.

T Level Professional Development (TLPD) programme:

We have seen strong engagement from the sector, with participants providing positive feedback on its effectiveness in preparing them to deliver T Levels. More than 14,000 participants engaged in TLPD courses and activities during 2023–24.

Leadership:

We provided intensive learning programmes for CEOs, with full cohorts in the CEO programme (15), the Preparing for CEO programme (30), and the new pilot residential “Leading in the 21st Century” (15).

Four new toolkits, covering Professional Standards, Sustainability, Equity, Diversity, and Inclusion (EDI), and Curriculum Design, were developed and launched.

Impact

Increased recognition among senior leaders of the importance of providing excellent provision for SEND learners.

Increased focus on quality processes, improvement in professional practice and enhanced employer engagement.

As a result of attending sessions, both leaders and teachers reported improvements in teaching staff’s technical knowledge and expertise, curriculum design, and readiness to deliver T Levels.

Increased knowledge and understanding, incorporated into practice.

Increased ability to influence upwards, improved management practices, e.g. changing team structures.

Middle Managers:

Focus on strategic and empowered leadership, as well as optimising performance and cultural competence. The full complement of 340 participants attended; and a further four in-house programmes.

Governance:

Offering development activities for governance professionals, governors, student governors, and chairs. Most non-residential programmes met or exceeded KPIs. The Chairs’ network events saw nearly 300 bookings (target of 200), and the new Governance Development Programme on ETF’s learning management platform engaged over 800 participants (target of 660).

Governance participants better equipped to support senior leaders, increased confidence to carry out governance roles.

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ETF works strategically with the sector and industry, engaging with Education for Sustainable Development (ESD) trailblazers in the UK and internationally. Our partnership with EAUC has been crucial in shaping the ESD offerings, including supporting the Green Gown Awards and delivering a CPD webinar series aimed at educators on how to integrate ESD effectively.

We continue to offer the “Embedding Education for Sustainable Development (ESD)” course, delivered in collaboration with the Environmental Association for Universities and Colleges (EAUC). The course is aimed at educators and leaders who seek to incorporate sustainability into their professional practices. It has gained popularity due to the success of previous ETF ESD programmes and is developed with input from ESD experts and members of the COP26 Education and Skills Committee, drawing on ETF’s Professional Standards to embed sustainability in learning and working practices. The programme attracted 28 delegates who all completed the full course.

In addition to the ESD course, ETF provides a wealth of resources and support for sector leaders and educators, including technical webinars, an ESD guide for FE and Skills sector governors, and tools like the “Sustainability in the Curriculum” and the “Sustainability Teaching Tool”. These resources are now enhanced with case studies demonstrating their impact. Furthermore, the sustainability leadership toolkit aims to prepare sector leaders for the ESD requirements set forth by the FE Climate Action Roadmap.

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2.3 Championing inclusion

We want everyone within FE and Skills to feel included and that they belong. This calls for inclusive spaces and learning environments that enable all learners to thrive. Embedding inclusive practice into our work, and championing inclusion across the sector and through society provides opportunities for social mobility and ensures that our workforce and the curriculum reflect the learners and communities our sector serves.

Some of the ways we champion inclusion include:

Highlights for 2023–24 include :

• Antiracism commitment: Partnering with

the Black Leadership Group (BLG), ETF demonstrates its commitment to anti-racism and highlights the positive contribution of anti-racist efforts across the sector. Our work in this space aims to ensure that everyone who engages with the FE and Skills sector feels that they belong and are included. Activities in support of this included our CEO leading a session with BLG at its annual conference, CEO peer mentoring with Jisc, supporting the Ethnic Equity in Education Campaign, and BLG-led webinars.

• Inclusive Leadership programme: This programme supports leaders to implement change and had over 500 bookings (target of 150).

• Internal and external working groups: We have focused on leading by example and supporting the sector and these working groups are overseen by a steering group chaired by ETF’s CEO. Achievements have included a review of all our external work that led to our Inclusive FE publication and an internal programme of work to champion inclusion across: our commissioning policies; professional design and development; membership; and staff and stakeholder engagement work.

• ETF governance: As part of the external governance review (completed by NVCO), ETF’s Board approach to EDIB was considered. It was noted as a key priority for the charity and the Board’s strategy to EDIB will be published in 2024–25.

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2.4 Enabling sector change

Rapid technological innovation, shifting economic and political landscapes, and demographic change are all influencing national and global education agendas. Against this backdrop, the role of the FE and Skills sector in England has never been more critical.

Securing economic growth and social progress for the future will rely upon a thriving and proactive FE and Skills system that can respond to the complex challenges and emerging opportunities that lie ahead. To equip learners with the skills they need to meet local and national skills requirements, we need an FE and Skills system that connects educators and providers with employers, provides an innovative, future-facing inclusive curriculum and leads to a coherent workforce development strategy to support staff retention and recruitment.

Some of the ways we enable sector change include:

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– In 2023 24, in partnership with Saïd Business School, University of Oxford, ETF set out to investigate the challenges facing the FE and Skills sector and, crucially, how it might respond at a systemic level. With a remit encompassing the entirety of FE, ETF brought together a group of sector leaders, administrators, educators, researchers, and policymakers interested in FE and Skills system renewal to explore these challenges through systems thinking. The focus was on identifying what it would take for the sector to remain relevant, resilient, and responsive to the complex challenges and emerging opportunities ahead. This work culminated in May 2024 with the publication of the “Further Education and Skills: Changing Systems of Change” report.

The report recognises the role of education and skills development and its contribution to our national ability to respond positively to economic, commercial and social change. It explores the challenges and opportunities facing the FE and Skills sector, noting that the challenges are both perennial and new, strategic and operational. The key opportunity is for the system in which FE and Skills operates to become sustainably selfimproving. We worked with sector leaders and policy makers to consider how ongoing renewal could be made sustainable for all those who work in the sector; we agreed simply asking people to ‘do more’, was not an option. The report aims to encourage conversations about what needs to change, including the existing approaches to change, in order to achieve excellence, improvement, innovation and resilience across the whole sector. It will be a key tool for the charity to enable sector – change through 2024 25 and beyond.

An extensive sector engagement programme, led by – the CEO during 2023 24, informed our top priorities in supporting the sector and translating these into our professional development programmes, conference and events activity and publications. The top priorities identified included: leadership development, sustainability and introduction to teaching and learning in FE for dual professionals, particularly those working in the independent sector. The quality of ETF’s provision has been a key focus for sector leaders.

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2.5 Plans for 2024–25

– Through 2024 25, ETF will continue to embed its strategic goals and objectives into its ways of working, focusing on maximising the impact it has on professionals working in the FE and Skills – sector. In 2023 24, steps were taken to pivot the charity so that it is able to achieve its strategic aspirations, but it is acknowledged that more is needed to build our impact through changes in the offer and our ways of working.

The strategy, approved by the Board in 2023, outlines how we will deliver against the strategic goals, setting out seven priority objectives which form the basis of our business plan. These are:

In delivering the strategy we commit to being:

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– 2.6 2023 24 Financial summary

– ETF’s total income from its charitable activities in the year was £23.3m (2022 23: £32.9m) – – and £0.3m from trading activities (2022 23: £0.3m). Total: £23.6m (2022 23: £33.2m).

Total income for the charity comprises:

Overall, ETF is reporting a deficit for the year of – £1.7m (2022 23: £0.2m surplus).

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2.7 Policies: reserves, going concern and investment

Restricted reserves at the end of the year were £0.6m (2022–23: £0.8m). This represents the balance on unspent grants from DfE and income from leadership and governance courses run by ETF and funded by DfE to be spent as agreed with DfE.

Unrestricted reserves carried forward at the – end of the year were £9.1m (2022 23: £10.6m). Unrestricted reserves are available to support ETF’s charitable purposes and strategy, and to provide financial resilience and flexibility.

Since 1 April 2023, ETF has moved away from creating a designated fund for orderly wind-down in favour of a broader reserves policy. The reserves level for the year ended 31 March 2024 is set at £5.3m and will support the charity to be financially resilient and flexible, and secure the charity against sudden loss of income or provide for an orderly wind-down in the unlikely event this should be necessary. Total unrestricted reserves of £9.1m include this reserves policy of £5.3m. The Board continues to monitor the reserves, mindful of the future economic sustainability challenges of the organisation, seeking to move away from sole reliance on Government contract delivery, into a much more diverse revenue and surplus generating charity supporting education and training delivery of the FE sector and beyond. The current reserves level enables the Board to support the Executive make the right investment choices whilst transforming its business operating model.

The level of reserves carried forward, together with the level of cash resources and the existing contractual agreements in place, mean ETF can continue as a going concern and meet its liabilities – as they fall due. A projection of the 2024 25 – and 2025 26 Income and expenditure has been performed, showing that reserves are not expected to fall below the requisite level and that the cash position is robust.

Free reserves at year end were £8.4m (free reserves being total reserves, less restricted reserves, less designated reserves and less fixed assets).

Year ending 31 March 2024 Year ending 31 March 2024
£’000
Total reserves held 9,741
Restricted reserves 602
Unrestricted funds 9,139
Reserves held in fixed assets 762
Free reserves 8,377

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2.8 Investment policy

ETF holds its funds with A-rated banks, with sufficient funds for operational need held in immediate access accounts. A sweep facility operates with each of these banks to ensure that cash in excess of this operational need is moved to higher interest earning deposit accounts on a daily basis. ETF maintains a Treasury and Investment policy which outlines the investments allowed, both in terms of liquidity and business development. ETF also maintains a Reserves policy and Cash reserves policy. The Board will continue to keep its investment policy under review to maximise the investment return, with targets set within the budget, consistent with the concern to ensure the security of its resources and minimise risk.

2.9 Grant making

ETF has allocated grants to providers to help fund training under the Apprentice Workforce Development (AWD) contract. All grant awards were approved by the Department for Education (DfE) and are subject to rigorous checks to ensure money is being used in accordance with the UK Charity Commission’s rules on public benefit.

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Trustees’ report 3 This Trustees’ Report supports the Statutory Report by providing an overview of the charity’s governance, the critical risks and their management, along with key policies and legal and compliance matters. In the interest of brevity, this report is kept high level. Those interested in the charity’s governance arrangements will find further information on the ETF’s website and are welcome to contact the Company Secretary (Dr Gina Hobson) for more information.

ETF is a registered charity and a company limited by guarantee. It is regulated by the Charity Commission. The Trustees (who are also the directors for the purposes of the Companies Act 2006) present their report and financial statements of the results of the charity for the year ended 31 March 2024 (‘the year’). The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit and adopted the Charity Governance Code (first published in July 2017, updated 2020).

The accounts have been prepared in accordance with the policies set out in note 1 to the financial statements and comply with ETF’s Articles of Association (‘the Articles’), applicable law and the requirements of the Statement of Recommended Practice and Financial Reporting Standard (FRS 102).

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3.1 Governance

The ETF Board aspires to be a high performing board. It takes its responsibilities seriously and aims to demonstrate good practice in its ways of working. This section provides some highlighted detail on the Board’s responsibilities, the Members and their responsibilities, and how Trustees are supported by the charity. In addition, it provides further detail on two significant pieces – of work in 2023 24: the completion of an external governance review and the recruitment and appointment of a new Chair.

ETF’s Board members are the charity’s trustees. The Board oversees the work of ETF. It sets strategic direction, ensures proper financial and governance arrangements are in place, and ensures that ETF remains focused on supporting educators and leaders working in the FE and Skills sector.

As a charity and a company limited by guarantee, ETF also has Members. The Members of ETF are representative organisations with a unique stake in ensuring that FE and Skills professionals get the support and development they need and deserve. Members have a meaningful role in the stewardship of ETF and help to shape the FE and Skills sector workforce strategy. The six Members are the Association of Colleges (AoC) (Founding Member), HOLEX (Founding Member), AELP (Founding Member), the National Union of Students (NUS),

NatSpec and the Trades Union Congress (TUC). The Members of ETF are the company Members for the purposes of company law.

Trustees are appointed and reappointed by the ETF Board. A recruitment procedure outlines how the Board seeks the input of ETF’s Members in the recruitment of new Trustees. Trustees may serve a maximum of two three-year terms on the Board (with a third term permitted in exceptional circumstances). Further detail is available in the Articles. The beginning-to-end process as a trustee, including a comprehensive induction, training and appraisal, is described in ETF’s Trustee journey. On appointment and each year, Trustees are asked to adopt a code of conduct and declare their interests. Trustees’ interests are reviewed at each Board and committee meeting. Trustee and Board effectiveness is routinely reviewed, including through meeting review discussions at the end of every Board and committee meeting, plus surveys. Board members attend an annual strategy day. The most recent away day was held on 4 December 2023.

In 2023–24, an external review of ETF’s governance and Board was completed by NCVO to ensure that governance arrangements continued to be fit for the charity’s evolving purpose. Specifically, the review focused on: i) the Board’s performance and its aspiration to be a high performing board; ii) identifying how the Board could embed Equity, Diversity, Inclusion and Belonging (EDIB) practices within governance; iii) exploring alternative and agile approaches to governance; iv) reflecting on how the Board’s practices support the strategic purposes of the charity, and v) consideration of the Trustee skills required to align with the future strategy. The review was informed by the 2020 edition of the Charity Governance Code.

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The review found that overall ETF’s

governance and board workings were sound and good practice was evident. The findings and recommendations (32, in total) of the review covered a range of themes including:

At the end of 2023–24, the Board considered outcomes and agreed key recommendations to take forward. An action plan has been developed and implemented.

In July 2023, ETF’s then Chair, Professor Peter Latchford OBE, announced that he would stand down at the end of 2023 to allow for the recruitment of a sector leader to chair the charity through its next phase in order to best support the charity’s new strategic direction. The Board agreed to seek a new and experienced chair with significant experience of the FE and Skills sector. The recruitment of the new Chair was overseen by the Senior Independent Director, Rachel Musson, supported by a sub-group of Trustees and the AoC Chair. The Board was very pleased by the quality and level of interest in the role and, having completed an open and competitive recruitment and interview process, it was announced in November 2023 that Sir Frank McLoughlin CBE would be ETF’s next Chair. Through the remainder of 2023–24, Sir Frank completed a handover with the outgoing chair and continued his induction through the early part of 2024–25.

Following the approval of the charity’s new strategy, the Board and the Executive then considered the financial model and organisational design requirements to deliver the new strategy. It noted that a significant pivot would be required to ensure the financial sustainability of the charity in the medium and longer term (noting that the large TLPD contract would finish in the summer of 2026, at the latest). Following discussions, a two-phased organisational re-structure was implemented, starting with the – executive leadership (2023 24) and then covering the remaining parts of the organisation (delivered at the – beginning of 2024 25). This resulted in the executive leadership and their directorates being restructured and saw a reduction in headcount. Through Q2 2024–25, an organisational change programme is under development to support staff and the organisation with the delivery of the new strategic priorities.

Other operational improvements, aiming to strengthen the efficiency and effectiveness of the charity, included the introduction of a new HR system, a new Finance system, and an externally facilitated review of the staff pay framework. In addition, digitally-focused achievements included streamlining our digital estate (including decommissioning 14 websites and merging relevant learning resources) and the introduction of a Learning Management System (LMS).

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3.2 Key risks and risk management

In 2023–24 we completed a review of our risk management process and reporting (across both the Board and Executive levels), this entailed: reviewing the key risks, related risk appetite, risk classifications, and the mitigations being applied.

The reporting of risk at executive and non-executive levels was also reviewed and updated. The new Corporate Risk Register (CRR) and updated Risk Management policy was introduced in Q4, with levels of risk re-defined (with higher level and strategic risks being considered by the Executive and reported to the Board) and a clearer operational process adopted ensuring that risks were being reviewed and escalated through senior managers and leaders to the Executive Directors and then to the Board.

The Board’s oversight of risk comprises:

All risks and planned actions are recorded in the risk register, assigned owners and overseen by the Executive Board.

Over the course of 2023–24, the internal and external risk environment changed and the risks – to the charity evolved. At the end of 2023 24, the Board reviewed and reflected on the most significant internal and external risks to delivery of ETF’s charitable aims. These include commentary and key mitigations.

The external political environment evolved over 2023–24 (and into 2024–25). The Board and the Executive recognised that the challenge of the macro environment for Government created an existential risk for ETF. The Board (and particularly the new Chair), with the CEO and Executive, prioritised spending time with external stakeholders and politicians to ensure ETF’s remit and impact was well-understood. ETF is well positioned in 2024–25 to support the new Government with its FE and Skills aspirations.

Through the year, the failure to implement the new strategy remained the most significant risk to the charity. The Board and the Executive have prioritised spending its time on strategy development and its implementation, recognising the time critical nature of this work. It remains a risk and a priority – through 2024 25, with the development of clear business plans and strong performance reporting, along with engagement with key stakeholders, a new organisational structure to deliver the strategy and a draft value proposition being prioritised. Linked to strategy implementation, the charity’s financial sustainability has been a risk its leaders have focused on. Financial models against various scenarios have been developed to support the – strategy and through 2024 25, the Board will keep oversight of these through improved financial and business performance reporting.

A capable and stable workforce is critical to the delivery of the new strategy and the charity’s ongoing activities, and the Board and Executive recognised that the organisational re-structure and staff turnover (including turnover at Executive level) could put this at risk. Expert HR support was an important mitigation, along with accessing external senior support to mitigate Executive level vacancies. Through the end of 2023–24 into 2024–25, the Executive has a focus on organisational and culture change being implemented through its programme of staff engagement.

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3.3 Section 172 reporting requirements, plus Streamlined Energy and Carbon Reporting (SECR) and fundraising statement

ETF had no fundraising activities requiring disclosure under Section 162A of the Charities Act 2011.

Alongside our sector-facing ESD work, we are committed to operating as sustainably as possible, minimising our negative impact on people and planet, and maximising opportunities to make a positive impact through our infrastructure, ways of working and procurement. This also helps ensure we are demonstrating continued cost-effectiveness

The Streamlined Energy and Carbon Reporting (SECR) legislation was implemented on 1 April 2019. The regulations apply to large unquoted companies, including charitable companies. The regulations require companies to disclose their energy and carbon emissions in their annual reports. For the first time in the year to 31 March 2022, ETF made SECR disclosures on a voluntary basis. and efficiency.

Emission source
2023–24
2022–23
Unit of
measurement
ee
ee		 Emission source
2023–24
2022–23
Unit of
measurement
ee
ee		 Emission source
2023–24
2022–23
Unit of
measurement
ee
ee		 Emission source
2023–24
2022–23
Unit of
measurement
ee
ee
Combustion of gas (Scope 1) 4,616 3,170 kWh
1.11 0.81 tCO2e
Purchased electricity (Scope 2) 41,517 44,074 kWh
0 0 tCO2e
Waste (Scope 3) 1,710 1,777 kg
0.04 0.04 tCO2e
Water (Scope 3) 98.31 76.69 m3
0.02 0.01 tCO2e
Business travel – employee-owned vehicles (Scope 3) 19.25 22.94 tCO2e
Business travel – public transport (Scope 3) 4.37 5.26 tCO2e
Total gross based on above 24.79 29.06 **tCO2e **
Normalisation metric 156 193 FTE
Intensity ratio 0.16 0.15 Gross tCO2e/FTE

25 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

The data detailed in the table above represents emissions and energy use for which ETF is responsible, including electricity use in our offices and fuel used in vehicles on company business. The energy and emissions totals reported above include all ETF business. We have used the main requirements of the Greenhouse Gas (GHG) Protocol Corporate Standard to calculate our emissions, along with the UK Government GHG Conversion Factors for company reporting 2021.

Scope 1 and 2 data is taken from validated invoices supplied by our landlord, as has scope 3 data relating to waste and water. Scope 3 data relating to transport has been taken from our internal expenses and procurement reporting systems. We benefit from leasing our office space from the NAO, whose environmental impact is well managed. Our electricity supply is currently from renewable sources, with Renewable Energy Guarantees of Origin (REGO)-backed certificates certified by The Carbon Trust.

Our activity in 2023–24 shows an overall decline in energy usage (with water being the only outlier). We have implemented various activities through our annual sustainability planning to ensure that our emissions reduce. We will continue this activity, which is based on the GHG management hierarchy and involves:

In July 2023, we commenced quarterly measurement of carbon emissions, including further scope 3 data relating to staff working from home and our supply chain. Accountability for all this work sits with a specified member of the Executive.

26 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

3.4 Policies report, including pay policy

The Board keeps an overview of ETF’s policies, procedures and processes; it routinely receives a policy list and review schedule.

We continue to systematically draft, review and update, where appropriate, all our policy documents for approval by Executive Directors, the Executive Board or the Board, as appropriate. All policies are stored centrally on ETF’s intranet and key documents are circulated to staff. The Board has sight of and approves policies on a two-year cycle. – In 2023 24, the Board reviewed and approved the updated Financial Regulations.

The Board considers the key management personnel of the charity to be the Trustees and the members of the Executive Board. The Board considered the CEO, Executive Director of Corporate Services, Executive Director of Education, Executive Director of Membership and Commercial and the Chief of Staff to the Chair and CEO to comprise the key management personnel. The Executive Board is in charge of directing and controlling, running and operating the charity on a day-to-day basis.

The Board has agreed a pay policy, which refers to regular benchmarking. The pay of staff is reviewed annually by the Board’s Remuneration and Search Committee, taking into account variables including performance of the organisation, climate in the education and training, public and voluntary sectors, affordability for ETF, attracting and retaining excellent staff, cost of living indices and sector benchmarks. The Board’s Remuneration and Search Committee makes recommendations to the Board, which is – responsible for final decisions. At the end of 23 24, an externally led review and benchmarking of staff pay took place, with the recommendations being rolled out – through the first two quarters of 24 25.

27 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

3.5 Trustees and advisors

Trustees

ETF is governed by a Board of Trustees. Those Trustees who served during the year and up to the date on which this report was approved are as follows:

Appointed Reappointed Resigned
Dame S Dicketts DBE 8 December 2016 13 December 11 December 2023
2019 (2nd term)
8 November 2022
(3rd term under excep-
tional circumstances)
Mr J Graham 27 March 2019 12 January 2022
Mr W Ilowski 3 May 2022
Prof P Latchford OBE (Chair) 23 October 2019 6 September 2022 1 January 2024
Ms L Leith 11 December 2020 8 November 2023
Mr A McConnell OBE 22 July 2019 12 January 2022
(Finance Chair)
Mr G McDonald 11 November 2021
Sir Frank McLoughlin CBE 1 January 2024
(Chair)
Ms R Musson (Audit and Risk 13 December 2019 8 November 2022
Chair)
Dr S Parrett CBE 11 November 2021
Mr P Singh 11 December 2020 8 November 2023
Ms R Spellman OBE 27 March 2019 12 January 2022

28 Trustees’ Report and Financial Statements 2023–2024

oor Education and Training Foundation “ = (

Officers

CEO:

Dr Katerina Kolyva

Company Secretary:

Dr Gina Hobson[1] (resigned 30 November 2023, reappointed 1 July 2024)

Rowena Lovell (appointed as Interim Company Secretary 1 December 2023, resigned 21 January 2024)

Chloe Annetts (appointed as Interim Company Secretary 22 January 2024, resigned 30 June 2024)

Registered office

The Education and Training Foundation, 157–197 Buckingham Palace Road, London SW1W 9SP

Auditor

RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB

Solicitor

Stone King LLP, Boundary House, 91 Charterhouse Street, London EC1M 6HR

Bankers

Royal Bank of Scotland, 62–63 Threadneedle Street, London EC2R 8LA

Barclays Bank, 1 Churchill Place, London E14 5HP

Should you have any comment regarding our programmes or the content of this report, please get in touch with the Chief of Staff to the Chair and CEO (gina.hobson@ etfoundation.co.uk). You can find more information about ETF’s public benefit and - impact on the website: https://www.et foundation.co.uk/governance/documents.

Sir Frank McLoughlin CBE Chair

Dr Katerina Kolyva CEO

29 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

3.6 Statement of Responsibilities of the Trustees

The Trustees are responsible for preparing the Strategic Report, Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

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

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

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

30 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

3.7 Disclosure of Information to the Auditors

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which ETF’s auditors are unaware; and each Trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that ETF’s auditors are aware of that information.

The Report of the Trustees, which incorporates the requirements of the Strategic Report and the Directors’ Report as set out in the Companies Act 2006 (Strategic Report and Trustees’ Report) Regulations 2013, was approved by the Board, in their capacity as Trustees and company directors, and signed on its behalf on 4 November 2024 by:

RSM UK Audit LLP have confirmed their willingness to be reappointed.

Sir Frank McLoughlin CBE, Chair

Dr Katerina Kolyva, CEO

31 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

Independent auditor’s report to the Trustees of the Education and Training Foundation 4

Opinion

We have audited the financial statements of Education and Training Foundation (the ‘charitable company’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.

Other information

The other information comprises the information included in the Strategic Report and Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Strategic Report and Trustees’ Report.

32 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out in section 3.6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

33 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities,

including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document, tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to General Data Protection Regulations (GDPR). We performed audit procedures to inquire of management whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to

34 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

significant, unusual transactions and transactions entered into outside the normal course of business and sample testing income completeness and cut off.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report ESS

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hannah Catchpool (Senior Statutory Auditor)

For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street, London EC4A 4AB Date 11th December 2024

35 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

2023–24 2022–23
Income:
Note
Unrestricted
£000
Restricted
£000
Total
£000		 Unrestricted
£000
Restricted
£000
Total
£000
Income from charitable activities:
Grant Income
3
3
49
52		 –
7,781
7,781
Contract Income
4
21,023
–
21,023		 22,039
–
22,039
Professional Development
272
206
478		 –
1,263
1,263
Accreditation
301
–
301		 710
–
710
Membership
1,456
–
1,456		 1,083
–
1,083
23,055
255
23,310		 23,832
9,044
32,876
Income from trading activities:
Other Income
5
45
–
45		 233
–
233
Investment Income
6
215
–
215		 80
–
80
Total Income
23,315
255
23,570		 24,145
9,044
33,189
Expenditure:
Expenditure on charitable activities
7
(24,798)
(477)
(25,275)		 (24,665)
(8,290)
(32,955)
Total Expenditure
(24,798)
(477)
(25,275)		 (24,665)
(8,290)
(32,955)
Net (expenditure)/income and
movement in funds for the year
(1,483)
(222)
(1,705)		 (520)
754
234
Reconciliation of funds
Total funds brought forward
10,622
824
11,446		 11,142
70
11,212
Total funds carried forward
9,139
602
9,741		 10,622
824
11,446

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 38 to 52 form part of these financial statements.

36 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

Note
£000
Fixed assets
Intangible assets
13
581
2024		 £000
590
2023
Tangible assets
13
181		 244
762 834
Investment in subsidiary
14
1		 1
763 835
Current assets
Debtors
15
4,808		 8,272
Cash at bank in hand
9,544		 8,458
14,352 16,730
Liabilities
Creditors: amount falling due within one year
16
(5,374)		 (6,119)
Net current assets
8,978		 10,611
Total assets less current liabilities
9,741		 11,446
Net assets
9,741
Unrestricted income funds
19
9,139		 11,446
10,622
Restricted income funds
20
602		 824

The notes on pages 38 to 52 form part of these financial statements.

These financial statements were approved by the Trustees on 4 November 2024 and were signed on their behalf by:

Sir Frank McLoughlin CBE

Chair

37 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

Statement of cash flows 7

7
Statement
of cash flows
37
Trustees’ Report and Financial Statements 2023–2024–20242024		 Education and Training Foundation
Note
£000
Cash provided by/(used in) operating activities
22
1,410
2023–2024		 £000
(6,301)
2022–2023
Cash flows from investing activities
Interest income
215		 80
Purchase of fixed assets
(539)		 (548)
Increase/(Decrease) in cash and cash equivalents in the year
1,086
Cash and cash equivalents at the beginning of the year
8,458		 (6,769)
15,227
Total cash and cash equivalents at the end of the year
9,544		 8,458

38 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

Notes to the financial statements 8 1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared on the basis of historical cost in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102 Charities SORP (FRS102), the Charities Act 2011 and the Companies Act 2006. ETF meets the definition of a public benefit charity under FRS 102. The financial statements are prepared in pounds sterling, which is the functional currency of the charity. Monetary amounts shown in these financial statements are rounded to the nearest £’000.

c) Group financial statements

The financial statements show the results for just the charity. The charity’s wholly owned subsidiary, ETF Services Ltd (ETFS), was dormant in the financial years to 31 March 2024 and 31 March 2023 and therefore consolidated financial statements were not required.

b) Going concern

The accounts have been prepared on a going concern basis. ETF will be able to meet its obligations in full for at least 12 months following the signing of these accounts. The Board has recently reviewed the out-turn forecast position for the year to 31 March 2025, and has seen a top-level forecast for the following year to 31 March 2026.

The Board has considered the longer-term position of ETF and its financial strength. In reviewing multiyear budget forecasts, cashflow forecasts and considering the current level of reserves, the Trustees were satisfied that ETF is in a strong position and were satisfied with the preparation of the accounts on a going concern basis.

39 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

d) Income

All income is recognised in the financial statements when ETF has absolute entitlement, there is a probability of receipt and the amount is measurable.

e) Expenditure and liabilities

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Direct costs include all costs relating directly to delivering charitable activities. Staff costs include staff delivering charitable services (allocated directly) and those providing backoffice services (apportioned based on the costs directly allocated to each activity). Overhead costs include accommodation, depreciation, IT, stationery, general office expenses and governance. These are also apportioned in line with direct cost allocation.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

40 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

f) Fund accounting

Grants or donations received for specific projects are treated as restricted funds.

Designated funds are those unrestricted funds which have been set aside by Trustees for a specific future purpose.

Unrestricted funds are available for general use by ETF or to meet possible shortfalls in revenue or unforeseen increases in expenditure, investment in business development initiatives and generally for the furtherance of the charitable objective to support the improvement of teaching and learning in the FE sector.

g) Taxation

The charity meets the requirements as set out in Paragraph 1 Schedule 6 of the Finance Act 2012 as a charitable company for UK corporation tax purposes. As such, it is potentially exempt from income tax in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively for charitable purposes.

No tax charge has arisen in the year.

h) Fixed assets and depreciation

Individual fixed assets or groups of assets costing in excess of £5,000 are capitalised at cost and depreciated /amortised over their estimated useful life on a straight-line basis as follows:

Tangible assets

• Furniture and fittings – 5 years Intangible assets

• Software development – 3 years

A full year’s depreciation/amortisation is charged in the year an asset is commissioned, irrespective of the precise date of purchase during the year.

i) Financial instruments

ETF only has financial assets and liabilities which qualify as basic financial instruments, initially recognised at transaction value and subsequently measured at their settlement value.

j) Pensions

From the 1st April 2023, all ETF pensions were with Aviva operating under a salary sacrifice scheme.

ETF contributes 6 per cent of employee’s pensionable salary into this scheme.

– In the financial year 2023 24 employer – contributions of £542,532 (2022 23: £510,580) were paid to Aviva.

As all pensions were transferred to Aviva there – were no contributions to Standard Life (2022 23: £33,037).

k) Staff termination costs

Redundancy and termination costs are

recognised in the accounts when (a) the decision about staff leaving has been made, (b) it is likely that such payments will be required, and (c) the amount to be paid can be reliably assessed.

41 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

2. Legal status of ETF

ETF is a company limited by guarantee and a registered charity. It has no share capital. In the event of being wound up, the liability in respect of the guarantee is limited to £1,000 per member of the charity.

3. Grants

ETF did not receive any government grants towards – carrying out its charitable activities (2022 23: – £7,741k). A government grant of £3k (2022 23: £2k) was received from the Department for Work and Pensions (DWP) towards employee assistance.

– ETF also received a grant of £53k (2022 23: £38k) from the Royal Commission for Technical Teaching Fellowships associated with TVET ― Technical and Vocational Education and Training. There were some unfulfilled conditions associated with – this grant to the tune of £4k (2022 23: Nil) This has been included in deferred income while £49k – (2022 23: £38k) recognised as incoming restricted resources.

4. Contracts

In the year to 31 March 2024, ETF received income from a total of six contracts: five government – contracts £19,899k (2022 23: £20,915k) and one with the National Association for Special – Educational Needs £1,124k (2022 23: £1,124k). Included in government contracts was a new – contract called Multiply £124k (2022 23: Nil) which was to develop and deliver courses to the FE and Skills workforce.

The most significant contract was for T Level Professional Development (TLPD). The total of – £19,899k (2022 23: £20,915) shown above – includes £12,275k (2022 23: £13,769k) from the TLPD contract.

5. Other income

Other income comprises tickets sold at the annual SET conference and income generated from exhibition stands and sponsors which came to £29k – (2022 23: £35k).

Other activities that generated income related to consultancy, panel, chairing and OFSTED – inspections: £16k (2022 23: £64k).

Income from basic skills in Maths and English £176k (2022–23: £117k), Education for Sustainable – Development £12k (2022 23: £17k) was classified – as other income in 2022 23, however this has now been classified as professional development as it forms part of our charitable activities.

6. Investment income

All the group’s investment income of £214,595 – (2022 23: £80,041) arises from money held in interest-bearing deposit accounts.

42 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

7.Analysis of expenditure on charitable activities

Direct cost Direct Indirect Overhead 2023–24 2022–23
& grants staff cost staff cost cost Total cost Total cost
£000 £000 £000 £000 £000 £000
Professional development 9,389 3,867 3,563 1,858 18,677 25,932
Sector development 888 2,553 925 482 4,848 5,698
Research and Data 13 244 69 36 362 82
Membership and Accreditation 454 531 265 138 1,388 1,243
10,744 7,195 4,822 2,514 25,275 32,955
2022–23 Total Cost 18,524 8,344 3,595 2,492 32,955

Direct and indirect staff costs comprise payroll and other staff related costs which all falls under unrestricted funds.

7(a). Allocation of support costs

– Allocated to charitable activities as indirect staff cost £4,822 (2022 23: £3,595) and overhead costs £2,514 – (2022 23: £2,492).

2023–24 2022–23
£000 £000
Governance 113 114
Executive, Legal & Compliance 1,595 1,674
Finance, Procurement & Facilities 1,470 1,150
Human Resources 858 589
Information Technology 2,323 1,836
Marketing and Communications 977 724
7,336 6,087

8.Grants awarded

A total grants figure of £223k was awarded to 18 FE providers as part of the Apprentice Workforce – Development (AWD) contract (2022 23: Nil). A complete list of recipients of government grants awarded by ETF can be provided on request to the Company Secretary.

43 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

9.Net income for the year

This is stated after charging.

2023–24
2022–23		 2023–24
2022–23
£000 £000
Operating leases ― property
309		 309
Governance costs:
External Auditor’s remuneration
- Audit fees
57		 55
- Other advice
19		 29
Internal Auditor’s remuneration
46		 17
Legal and Professional
52		 81
Trustees, remuneration and expenses
42		 44
216 226
Depreciation and Amortisation
611		 422

10.Staff

The average number of staff, including senior post holders, employed by ETF during the year ended 31 March 2024, expressed as full-time equivalents (FTEs):

2023–24 2022–23
Total number of FTEs
176		 191
Average number of staff
180		 194

– There were 107 staff in operational/teaching, 58 in administration and 11 in management (2022 23: staff in operation/teaching 128, administration 40 and 23 management).

2023–24
£000		 2022–23
£000
Salaries and wages
9,256		 9,464
Social Security costs
959		 1,064
Pension costs
543		 544
Redundancy
122		 137
Termination award
379		 30
Ex-gratia payments
–		 12
11,259 11,251

44 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

The number of employees whose emoluments fell within the following bands was:

2023–24 2022–23
£60,001― £70,000
24		 20
£70,001― £80,000
14		 8
£80,001― £90,000
6		 2
£90,001― £100,000
4		 1
£100,001― £110,001
1		 –
£120,001― £130,001
1		 –
£130,001― £140,000
–		 1
£150,001― £160,000
1		 –
£180,001― £190,000
–		 1
The ament bandins include aments in relation to staff termination

The payment bandings include payments in relation to staff termination.

During the year to 31 March 2024, ETF engaged in a programme of organisational design leading to changes to key management personnel.

– During the first quarter of the financial year (April July 2023) the Senior Leadership Team (SLT) comprised, the CEO, Chief of Staff, Director of Corporate Services, Director of Operations, Director of Professionalism and Customer Experience, Director of Education and Director of Finance.

In August 2023, a newly established Executive Board replaced the former SLT as key management personnel. The Executive Board comprised the CEO, Chief of Staff, Executive Director Corporate Services, Executive Director Education and Standards and Executive Director of Transformation, which was an interim position.

In 2023–24, this comprised 4.8 FTE (2022–23: 6.6 FTE).

The total cost of employing the key management personnel and the highest paid employee was as follows:

Key management personnel Highest paid individual Highest paid individual
2023–24
£
2022–23
£		 2023–24
£		 2022–23
£
Salaries and wages
521,392
690,968		 155,571
186,324
Social Security costs
62,020
91,087		 19,784
25,619
Pension Costs
31,287
37,619		 9,334
7,601
Termination award
57,382
30,000		 –
30,000
672,081
849,674		 184,689
249,544

The related agency cost of the Interim Executive Director of Transformation was £41,328.

45 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

11.Trustees’ remuneration and expenses

2023–24 2022–23
£ £
A McConnell 8,000 8,000
R Musson 8,000 8,000
P Latchford 15,000 20,000
F McLoughlin 5,000 –
Reimbursement of trustees’ expenses 6,201 7,906
42,201 43,906

ETF’s Articles of Association permits the remuneration of the Chair of the Board and up to two other Directors known as relevant Directors, one of which must be the Chair of the Audit and Risk Committee.

In the financial year ended 31 March 2024, the Chair of the Board, the Chair of the Audit and Risk Committee and the Chair of the Finance Committee managed significant and complex activities on behalf of ETF and were remunerated according to the conditions stipulated in Article 10 of ETF’s Articles.

The Chair of the Board (P Latchford) was remunerated to 31 December 2023 when he stepped down, F McLoughlin was appointed as the Chair of the Board and remunerated from 1 January 2024 to the end of the financial year. The Chair of the Audit and Risk Committee (R Musson) and the Chair of the Finance Committee (A McConnell) were contracted and remunerated for the work they carried out.

No pension contributions were made on their behalf.

As the maximum number of Trustees permitted by the Articles were employed during the financial year, no other Trustee received any remuneration or any other benefit from ETF in the financial year.

Travel, accommodation and subsistence expenses were reimbursed to seven Trustees during the year – (2022 23: seven Trustees).

46 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

12.Related party transactions

AoC, AAETO-HOLEX, NUS, Natspec, TUC and AELP were the Members of ETF throughout 2023–24. All are considered to be related parties by virtue of their rights under the Articles of Association and are consulted about the recruitment of Trustees.

In addition, a number of Trustees and Executive Directors were employed by, or held unremunerated positions, in a variety of organisations, which are also considered to be related parties on the basis of the potential influence they could have. The Board considers this to be appropriate and requires that Trustees comply with its conflicts of interest policy.

Other than direct services to the Board (e.g. audit), the Board has no involvement in any of ETF’s processes for assessing tenders. Similarly, no potentially conflicted Trustees take part in supplier performance reviews when the supplier is a related party.

ETF has entered into arms-length contractual arrangements with the following organisations which fall within the definition of related parties under FRS102:

2023–24
spend		 2022–23
spend
2023–24
balance due
(to)/from
2022–23
balance due
(to)/from
£000 £000
£000
£000
Activate Learning
13
13
–
(13)
Activate Learning
–
–
–
4
Association of Employment and Learning Providers
410
168
(72)
(66)
Association of Adult Education and Training Organisations
79
65
(10)
(13)
Association of Colleges (AoC)
1,192
1,831
(275)
(307)
AoC Regional Offce–East Midlands (EMFEC)
2
59
(2)
–
AoC Create Limited
287
478
(140)
(201)
Pearson’s
–
153
–
(10)
The National Learning and Work Institute
9
9
–
–
NatSpec
75
4
–
(2)
Wakefeld College Corporation
–
99
–
–
Kirklees College
8
58
–
(12)
New City College
–
67
–
–
Black FE Leadership Group
5
8
–
–
Dicketts Development Consulting Ltd
22
24
(17)
(12)
Oxford Business School
666
–
(161)
–
2,768
3,036
(677)
(632)

47 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

13.Fixed assets

Computer
Software
Intangible
£000
Computer
Hardware
Tangible
£000
Cost
Opening Balance 1 April 2023
1,169
348		 Computer
Software
Intangible
£000
Computer
Hardware
Tangible
£000
Cost
Opening Balance 1 April 2023
1,169
348		 Furniture
& Fittings
Tangible
£000
£000
£000
180
528
1,697
Total
Tangible
Total
fixed
assets		 Furniture
& Fittings
Tangible
£000
£000
£000
180
528
1,697
Total
Tangible
Total
fixed
assets		 Furniture
& Fittings
Tangible
£000
£000
£000
180
528
1,697
Total
Tangible
Total
fixed
assets
Additions
496		 43 – 43 539
Closing Balance 31 March 2024
1,665		 391 180 571 2,236
Depreciation and Amortisation
Opening Balance 1 April 2023
579		 251 33 284 863
Charge in year
505		 65 41 106 611
Closing Balance 31 March 2024
1,084		 316 74 390 1,474
Net Book Value 31 March 2024
581		 75 106 181 762
Net Book Value 31 March 2023
590		 97 147 244 834

– 14.Investments charity

The charity holds the entire allotted share capital of £1,000 in its wholly owned subsidiary, ETF Services Ltd, which is incorporated in the United Kingdom. The shares are called-up and fully paid. The subsidiary has been dormant since it transferred its assets to ETF on 7 July 2021; as a result, no consolidated accounts are prepared.

15.Debtors

15.Debtors
Income:
£000
Trade debtors
4,439
2024		 £000
5,828
2023
Prepayments
122		 141
Accrued income
247		 2,253
Other debtors
–		 50
4,808 8,272

48 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

16.Creditors: amounts falling due within one year

16.Creditors: amounts falling due within one year
Income:
£000
Trade creditors
2,652
2024		 £000
3,860
2023
Accruals
1,319		 1,178
Deferred income (see note 17)
179		 265
Taxation and Social Security
263		 348
Amounts owing to subsidiary
1		 1
Other creditors
960		 467
5,374 6,119

17.Deferred income

Deferred income comprises the SET membership fees, including corporate partners in respect of 2024–25 – invoiced before 31 March 2024, consultancy fees paid in advance of work carried out in 2024 25, workbook submission fees received for QTLS accreditation applications which had not been assessed by year end, and course attendance fees invoiced which relate to courses which were due to take place on or after 1 April 2024. There was also deferred income with respect to some unfulfilled conditions with the TVET grant.

£000
Balance at 1 April 2023
265
2024		 £000
524
2023
Amount released to income earned from charitable activities
(265)		 (524)
Amount deferred in year
179		 265
Balance at 31 March 2024
179		 265

– Total deferred income in the charity comprises QTLS/ATS income of £74k (2022 23: £103k), membership – – fees in advance of £73k (2022 23: £107k), consultancy fees £13k (2022 23: £40k) Basic Skills course and – CPD event £15k (2022 23: £15k) TVET grant £4k (2022-23: Nil).

49 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

― 18. 2023–24 Analysis of net assets in funds

18. 2023–24―Analysis of net assets in funds Analysis of net assets in funds
Unrestricted Restricted Total
£000 £000 £000
Fixed assets 762 – 762
Cash in bank and in hand 8,942 602 9,544
Other net assets/(liabilities) (565) – (565)
9,139 602 9,741

― 2022–23 Analysis of net assets in funds

Unrestricted Restricted Total
£000 £000 £000
Fixed assets 834 – 834
Cash in bank and in hand 7,634 824 8,458
Other net assets/(liabilities) 2,154 – 2,154
10,622 824 11,446

50 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

19. Analysis of movements in unrestricted funds

Funds at
start of year
£000
Incoming
resources
£000
Resources
expended
£000
Transfers
£000
Funds at
end of year
£000
ee		 Funds at
start of year
£000
Incoming
resources
£000
Resources
expended
£000
Transfers
£000
Funds at
end of year
£000
ee		 Funds at
start of year
£000
Incoming
resources
£000
Resources
expended
£000
Transfers
£000
Funds at
end of year
£000
ee		 Funds at
start of year
£000
Incoming
resources
£000
Resources
expended
£000
Transfers
£000
Funds at
end of year
£000
ee		 Funds at
start of year
£000
Incoming
resources
£000
Resources
expended
£000
Transfers
£000
Funds at
end of year
£000
ee		 Funds at
start of year
£000
Incoming
resources
£000
Resources
expended
£000
Transfers
£000
Funds at
end of year
£000
ee
2023–24
- Wind-down of the ETF 3,000 – – (3,000) –
- Strategic investment reserve 600 – (600) – –
Fixed assets reserves 834 – (72) – 762
General fund - Free reserves 6,188 23,315 (24,126) 3000 8,377
10,622 23,315 (24,798) – 9,139
2022–23
- Wind-down of the ETF 3,000 – – – 3,000
- Strategic investment reserve 1,400 – (800) – 600
Fixed assets reserves – – – 834 834
General fund - Free reserves 6,742 24,145 (23,865) (834) 6,188
11,142 24,145 (24,665) – 10,622

From 1 April 2023, ETF has moved away from creating a designated fund for orderly wind-down in favour of a broader reserves policy. The reserves policy for the year ended 31 March 2024 is set at £5.3m and will support the charity to be financially resilient and flexible, and secure the charity against sudden loss of income or provide for an orderly wind-down if necessary. Free reserves are currently in excess of this minimum reserves level at £8.4m. The designated fund previously created for this orderly wind-down has been transferred back to General funds in line with this change in approach.

The reserves policy will be reviewed annually along with the cash reserves policy as part of the budget process and any significant reforecast or organisational change during the year.

– The movement of funds on the fixed asset reserve, which was created in 2022 23, relates to resources expended on fixed assets net of depreciation during the financial year. This fund represents a level of general funds not available for immediate use due to it being tied up in fixed assets.

51 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

20. Analysis of movements in restricted funds

Funds at Incoming Resources Funds at
start of year resources expended end of year
£000 £000 £000 £000
2023–24
DfE grant 69 – – 69
TVET – 49 (49) –
Leadership & Governance course fees 755 206 (428) 533
824 255 (477) 602
2022–23
DfE grant 70 7,741 (7,742) 69
TVET – 38 (38) –
DWP grant – 2 (2) –
Leadership & Governance course fees – 1,263 (508) 755
70 9,044 (8,290) 824

DfE grant refers to unspent balance of a grant programme that is no longer ongoing and is owed back to DFE.

Leadership and governance course fees is income generated by virtue of the DfE Leadership & Governance contract. It will be spent on similar activities agreed between the DfE and ETF.

TVET refers to a grant received from the Royal Commission for Technical Teaching Fellowships please see note 3 for details.

21. Lease commitments

ETF had the following total lease commitments as at 31 March.

2023–24
£000
Operating lease– property rental
Payments due within one year
337
~~———__—~~		 2022–23
£000
395
~~———__—~~
Payments in less than 2 years
–
~~———__—~~		 329
~~———__—~~
337
~~———__—~~		 724
~~———__—~~

52 Trustees’ Report and Financial Statements 2023–2024

Education and Training Foundation

22. Reconciliation of net movement in funds to net cash flow from operating activities

2022–24
£000
Net movement in funds
(1,705)		 2022–23
£000
234
Add back depreciation charge
611		 422
Deduct interest received
(215)		 (80)
Decrease in debtors
3,464		 6,785
(Decrease) in creditors
(745)		 (13,662)
Net cash provided by/(used in) operating activities
1,410		 (6,301)

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THANK YOU

157–197 Buckingham Palace Road, London SW1W 9SP

020 3740 8280 enquiries@etfoundation.co.uk ETFOUNDATION.CO.UK

Company registration number (England and Wales): 08540597. Charity number: 1153859