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2023-07-31-accounts

COLEG CEREDIGION (a company limited by guarantee)

ANNUAL REPORT

FOR THE YEAR ENDED 31 JULY 2023

Company registration no: 08725643

Charity registration no: 154557

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Coleg Ceredigion

Annual report for the year ended 31 July 2023

Page(s)
Public Benefit Statement 2
Strategic Report 3-14
Directors'Report 15-18
Statement of Corporate Governance and Internal Control 19-23
Independent auditor’s report to the member of Coleg Ceredigion 24-27
Statement of comprehensive income 28
Statement of Changes in Reserves 29
Balance sheet 30
Statement of Cash flows 31
Notes to the financial statements 32-50

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Coleg Ceredigion

PUBLIC BENEFIT STATEMENT

Charitable Objectives

The College's objective is to provide for the public benefit in the United Kingdom and elsewhere further and higher education and (subject to any consultation with any relevant local authority) secondary education (as defined in each case in section 18(1) of the Further and Higher Education Act 1992 (or any replacement thereof).

In making decisions the trustees have had due regard to public benefit guidance.

Fulfilment of the charitable objectives

Beneficiaries

The beneficiaries are appropriate to the aims as the students in the further, higher and secondary education sector (a sufficient sector of the public to meet the public benefit test) are the direct beneficiaries.

Admissions

The College operates an inclusive admissions policy. However, some programmes have specific entry requirements which are reviewed annually and published in the College prospectus.

Student Support/Bursaries/Scholarships

Students at the College are entitled to apply for various packages of support and funding in the same way as anyone studying in further or higher education in Wales.

Further education students between the ages of 16 and 19 can apply for the Education Maintenance Allowance and students who are 19 + can apply for an Assembly Learning Grant. Other bursaries are also available within the College for further and higher education students subject to eligibility.

Financial Contingency Funds are also available within the College which students can apply for to support their studies.

Widening Participation

The College has a broad range of academic and vocational education and training programmes. These range from pre-entry to level 5. It also provides for 14-16 school pupils who attend the College and adult learners. The College delivers across two campuses and in the workplace.

Community Engagement

The College offers other facilities that are available to staff, students and members of the public.

By order of the Board

S[.] ignature:

Date : 7[th] December 2023

Mrs Maria Stedman Director and Chair

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Coleg Ceredigion STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

The directors present their strategic report for the year ended 31 July 2023

Background

Coleg Ceredigion Further Education Corporation was established under the Further Education and Higher Education Act 1992 for the purpose of conducting education and training at Coleg Ceredigion, which is a bilingual further education college with campuses at Aberystwyth and Cardigan.

On 31 December 2013 the Coleg Ceredigion Further Education Corporation (Dissolution) Order 2013 came into force. This order dissolved the further education corporation previously established and transferred all of its properties, rights and liabilities to the new Coleg Ceredigion Company (incorporated on 9 October 2013). The Coleg Ceredigion (Designated Institutions in Further Education) Order 2013 came into force on the same day establishing a new College conducted by a registered company, limited by guarantee. This new Coleg Ceredigion company was a wholly owned subsidiary of University of Wales: Trinity Saint David up until the 1[st] of August 2017 when ownership transferred to Coleg Sir Gar, another subsidiary of University of Wales: Trinity Saint David

Principal activities

The principal activities of the College are the provision of conducting education and training, within a rural, bilingual further education college situated on campuses in Aberystwyth and Cardigan.

The distance between the two campuses is 40 miles. The college's main catchment area is the county of Ceredigion but the college also attracts a considerable number of students from parts of Pembrokeshire, Carmarthenshire and Powys.

The College has an annual turnover of around £ 7m and employs circa 150 staff of whom around 70 are employed on a full-time basis. Each year, around 900 learners enrol at the college. This total includes circa 600 full-time learners, with the majority being school leavers from the ten secondary schools in the college’s catchment area (the seven secondary schools in Ceredigion together with the secondary schools located in Machynlleth, Newcastle Emlyn and Crymych).

Ceredigion's population, according to the 2021 census is 71,500. With 40 people per square kilometer, the area is one of the least densely populated in Wales. In keeping with the rest of Wales 25.7% of the population are 65 years or over. The number of 16-19 year old’s in the county is projected to decrease over the next 10 years. Consequently, the college takes careful account of this demographic trend in all its decision-making in relation to the college curriculum. According to the 2021 Census 47.35% of the population of Ceredigion are Welsh speakers, compared with 17.8% across Wales.

The County

The population is scattered throughout the small towns, villages and hamlets of the county. Aberystwyth is by far the largest town, with a resident population of over 18,000, which increases to approximately 25,000 during university term time. The next largest towns are Cardigan with a population of 4,000 and Lampeter with a resident population of 2,000, which also increases during university term time. The fourth largest town is Aberaeron with a population of 1,500. Coleg Ceredigion's campuses are therefore located in the two largest towns in the county.

Ceredigion is poorly served by public transport. Some main routes have an adequate bus service but public transport is a challenge for many communities. Many learners would not be able to attend Coleg Ceredigion were it not either for their own private transport or for the bus service.

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Coleg Ceredigion

STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Purpose

Strategic Vision

Values and Behaviours

Strategic Priorities

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Coleg Ceredigion STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Financial Performance and Objectives

The College’s financial objectives are:

The Statement of Comprehensive Income for the period is set out on page 28. The highlights for the period in relation to these are detailed below.

Treasury policies and objectives

Treasury management is the management of the College’s cash flows, banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

The College has a separate treasury management policy in place.

Short term borrowing for temporary revenue purposes is authorised by the Accounting Officer. All other borrowing requires the authorisation of the Corporation and shall comply with the requirements of the Financial Memorandum.

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STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Cash flows, liquidity and reserves policy

The college operating cashflow position for the year is a positive amount of £1.294m .Overall cash balances increased from £0.588m to £1.882m. The increase in cash balances is off set by the decrease in other net current assets at year end. The College wishes to continue to accumulate cash balances to fund future planned capital developments. To achieve this, the College has continued its drive for efficiency in the education and training it delivers. This has been, and will be, achieved by thoroughly reviewing its curriculum provision, effective deployment of resources, and best value procurement of goods and services. In addition, the College continues to seek and develop other sources of income. Significant reinvestment into the College estate and plant and equipment ensures that learners have quality provision to aid in their educational process. The College aims to hold a minimum of two months expenditure in cash reserves at all times.

Curriculum Development and Enrichment

There is a wide-ranging curriculum that meets learners’ aspirations. The curriculum is broad, flexible, coherent, and facilitates progression. It is offered in a variety of modes to suit learners’ needs. There is a strong vocational focus and all Sector Subject Areas are represented at the College.

The curriculum is formulated and reviewed in partnership with the College’s stakeholders, the Regional Learning and Skills Partnership (RLSP), Sector Skills Councils, 14-19 networks, the ACL Group, University of Wales: Trinity Saint David, industry, business and local employers. This is supplemented using skills observatory data provided through the RLSP.

The College has a Curriculum and Quality Committee, reporting to the Board’s Advisory Body for Curriculum and Standards.This provides a focus for discussion on curriculum and quality policy and development matters.

A range of options are available at all levels which offer diversity and choice to learners. The County’s Youth Access programme also provides a partial full-time alternative curriculum for learners at the College who have had difficulty in, or have been excluded from, local schools. Almost the entire curriculum offered by the College is accredited, providing opportunities for learners to attain formal qualifications.

A range of further accredited provision is provided to learners to support learning. Learners also engage in a wide range of activities that enrich their study including work-related experiences, live projects, educational visits, overseas visits, environmental work, visiting speakers, community arts, voluntary work and fundraising.

Partnership and Transformation

The College has excellent partnership arrangements which contribute to an enhanced curriculum and learning experience.

From 31st December 2013, the College became part of the University of Wales: Trinity Saint David group, maximising opportunities for learners and sharing information, expertise and resources. On the 1st of August 2017, ownership was transferred to Coleg Sir Gar, also a subsidiary of University of Wales: Trinity Saint David

The college has played a leading role in developing Partnerships with a broad range of partners within Ceredigion and on a regional level. Some of this work is undertaken in networks such as the 14-19 Network, Growing Mid Wales Partnership, Regional Learning Partnership, and the Ceredigion ACL Partnership. Some work is with a range of FE and HE institutions, the B-WBL Work-based Learning Consortium, voluntary, statutory and specialist agencies, the local economic and the Regeneration Partnership.

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STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Note that the next section of the report that deals with quality performance, measures and statistics that reflect the combined data for both Coleg Sir Gâr and its subsidiary company Coleg Ceredigion. Coleg Sir Gâr is by far the largest proportion in terms of weighting, with a turnover of circa £ 47 m against £7 m for Coleg Ceredigion (9000 students vs circa 1300 students respectively).

The College welcomed Estyn in May 2022 who undertook an inspection of its further education provision. The inspection framework covered 5 key areas: Learning; Well-being & Attitudes to Learning; Teaching & Learning Experiences; Care, Support & Guidance; and Leadership & Management. Whilst graded outcomes are no longer provided by Estyn, the overall outcome for the College was very positive. Good features identified within the report include:

Recommendations for continuous improvement include:

  1. Make better use of the extensive data the college has to further refine the evaluation of the impact of provision and initiatives.

  2. Strengthen strategies to improve learners’ understanding of radicalisation and extremism.

  3. Ensure that learners’ numeracy skills and wider mathematical skills are developed fully to address their skills gaps.

Estyn Report May 2022 https://www.estyn.gov.wales/provider/f0009005

Standards achieved by learners

Further Education

In 2021/22, the Welsh Government published its first set of ‘national consistent performance measures’ for FE since the Covid pandemic, during which time contingency regulations were put in place. Completion rates in all levels of provision are at/or above the national comparator, with the exception of Level 3 Access.

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STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Successful completion in all levels of provision are at the national comparator, with the exception of Level

Successful completion in all levels of provision are at the national comparator, with the exception of Level Successful completion in all levels of provision are at the national comparator, with the exception of Level Successful completion in all levels of provision are at the national comparator, with the exception of Level
3 Access and Entry/Pre-entry levels.
2021/22
Completion
National
Comparator
Successful
Completion
National
Comparator
Level 3 Vocational Programmes
87%
87%
74%
74%
Level 3 Access
71%
78%
69%
70%
Level 2 Vocational Programmes
86%
82%
72%
72%
Level 1 Vocational Programmes
84%
81%
76%
76%
Entry/Pre-entry
93%
84%
70%
76%
~~SSS~~
*Outcomes for 2022/23 are yet to be validated and published by the Welsh Government.
Outcomes for academic qualifications are provided in the table below. Outcomes for academic qualifications are provided in the table below.
AS Level Results (% of Grades Awarded)
A Level Results (% of Grades Awarded)
Year
A
A-E
2023
CSG
24.7%
96.6%
National Comparator
25.5%
90.9%
2022
CSG
23.6%
92.9%
National Comparator
30.7%
92.7%
2021
CSG
24.7%
96.0%
National Comparator
37.1%
96.7%
Year
A
A-A
A-E*
2023
CSG
12.7%
29.9%
98.6%
National Comparator
13.5%
34.0%
97.5%
2022
CSG
9.9%
34.0%
97.6%
National Comparator
17.1%
40.9%
98.0%
2021
CSG
13.1%
36.3%
100.0%
National Comparator
21.3%
48.3%
99.1%
In 2022/23, assessment in academic qualifications returned to fully normal procedures following the
contingency regulations that were in place during the Covid pandemic. Overall outcomes for AS (A-E) and
~~==~~
~~==——===—~~
A level (A*-E) were excellent and above the national comparator.

Work-Based Learning

----- Start of picture text -----
Work Based Learning Performance 2020 - 2022
100%
87% 89%
81% 79% 80% 78% Foundation
80% 73% 71% Apprenticeships
60% 56% 57% 54% Apprenticeships
39% Higher
40% Apprenticeships
Overall
20%
0%
2019/20 2020/21 2021/22
----- End of picture text -----

*Outcomes for 2022/23 are yet to be validated and published by the Welsh Government.

Similarly, in WBL following the challenges in 2019/20, performance improved considerably in 2020/21 and 2021/22 with less disruption and improved outcomes. However, success in foundation apprenticeships fell considerably and has been a focus for improvement for 2022/23.

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Coleg Ceredigion STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Higher Education

----- Start of picture text -----
Historically, higher education students have consistently performed very well, however, 2022/23 saw an
unusual fall in successful completion particularly in full time provision. This will be subject to further
investigation by the College’s Quality Assurance Unit in 2023/24.
Higher Education Performance 2021 - 2023
100%
87% 87% 88% 86% 84%
80% 75%
60%
40%
20%
2020/21 2021/22 2022/23
Full Time Part Time
nun
Quality of Teaching and Learning
Despite the challenges faced by the College over the last three extraordinary years, continuous
improvement of teaching and learning experiences and learner outcomes continues to be the College’s
primary aim in its pursuit of excellence. This has remained a focus during the pandemic as staff adapted
swiftly and successfully to the sudden shift to remote and blended teaching, learning and assessment.
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Policies have focused on helping the College move from good to excellent. The significant emphasis on training, motivating and supporting staff was recognised in 2017 when Coleg Sir Gâr was awarded the Association of Colleges Beacon Award for excellence in staff development; in 2019 when it received a Princess Royal Training Award and more recently in 2022 when it again received a Princess Royal Training Award.

Nearly all staff have engaged well and benefited from the college’s strong commitment to continuous professional development and this positive impact is evident in the excellent learner success outcomes and improved learner survey results. Fundamental to the process is each teacher undertaking a selfassessment of their performance against key performance criteria. This in turn leads to a teaching profile that indicates bespoke areas for staff development. Attendance at staff development is high and after a period of implementation, self-assessment is undertaken once again.

The College’s Teaching and Learning Team provide excellent support and tailored training to new members of staff, PGCE students and those teaching staff who need support with aspects of their work. Excellence in teaching is highly valued and celebrated through an annual teaching and learning award ceremony.

In the autumn of 2021, a total of 107 formal teaching and learning observations were carried out by members of the teaching and learning team and Estyn peer inspectors. Particular strengths (>90%) included: the delivery of learner centred lessons; and the support provided by teachers and their responsiveness to learners’ needs. Furthermore, the management of learner behaviour; the progress learners make; teachers’ subject and technical knowledge; and the provision of quality teaching and learning resources were also very good.

Health and Wellbeing of Learners

The College is committed to providing a healthy environment to improve the wellbeing of all students and staff and has raised the profile of wellbeing and mental health in response to growing demands.

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Coleg Ceredigion STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Induction, tutorial and promotional activities have been effective in raising learners understanding of wellbeing, and have reflected the priority given to keeping learners safe including online safety.

Personal wellbeing and mental health specialist support is excellent within the college. A new referral and assessment procedure has been implemented, with an emphasis on ensuring that learners receive the right support at the right time.

Learners who face considerable barriers to learning are referred to effective mentoring and counselling services, and they receive good support from college mentors and counsellors. Feedback from learners is positive and the support provided by the wellbeing team enables learners to remain in education and to succeed despite often very significant personal barriers.

A strong emphasis is placed on equality and diversity to ensure all learners and staff are treated with respect. Awareness has effectively been raised among learners and staff through a wide range of media and activities that are prominently displayed throughout the campuses.

Effective arrangements are in place to safeguard children and vulnerable adults underpinned by clear policies and procedures. The college's ‘be safe’ message extends to the promotion of the rights of all learners to be free from bullying and harassment and clear actions are taken to prevent such behaviour. Online safety is well supported through promotion and tutorial activity. Safeguarding contacts are in place across all campuses and staff and students are aware of referral processes.

Learner Voice (Further Education)

In 2022/23, the focus of the further education annual learner voice survey was to gauge learner perception of teaching and learning. Overall, learners’ perception in relation to their teaching and learning experiences is excellent.

Vocational Learner Voice Survey Result (Teaching & Learning) 2022/23
85% or above
75– 84%
65– 74%
Below 65%
Question Satisfaction
Rate
My tutors use a range of ways and resources to engage my interest in my lessons in college. 97%
I believe that I am doing well on the course. 91%
I receive regular oral and written feedback from my tutor. 93%
My tutors help me to improve my literacy, numeracy and digital literacy skills. 87%
I enjoy my lessons. 93%
There are lots of opportunities in my lessons to answer and ask questions. 97%
I feel challenged and stretched in all of my lessons and am able to take opportunities to improve, learn, and be resilient. 92%
I feel like my voice is heard by all of my tutors and is used to shape our learning experiences. 92%
I feel like all my lessons develop my wider skills such as critical thinking, creativity, problem solving, independent study, social
awareness.
94%
My lessons have a variety of tasks that help to keep me engaged, interested and active in the lesson. 92%
My tutors use technology to keep me motivated and engage in the class. 93%
I feel that my tutors believe in me and support me to work towards my potential. 96%
If I am absent from college, tutors make contact with me and ensure I know how to catch up on missed work. 86%
I am aware of my targets and what I need to do in order to work towards them. 95%

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STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

AS & A Level Learner Voice Survey Results (Teaching & Learning) 2022/23 85% or above
75– 84%
65– 74%
Below 65%
Question Satisfaction Rate
My lessons have a variety of tasks that help to keep me engaged, interested and active in the lesson. 92%
There are lots of opportunities in my lessons to answer and ask questions. 98%
I feel challenged and stretched in all of my lessons and am able to take opportunities to improve, learn, and be resilient. 95%
I am aware of my targets and what I need to do in order to work towards them. 95%
My tutors help me to improve my literacy, numeracy and digital literacy skills. 91%
I receive regular oral and written feedback from my tutor. 93%
I feel that my tutors believe in me and support me to work towards my potential. 96%
I feel like all my lessons develop my wider skills such as critical thinking, creativity, problem solving, independent study,
social awareness.		 93%
My tutors use technology to keep me motivated and engage in the class. 89%
I feel like my voice is heard by all of my tutors and is used to shape our learning experiences. 95%

Learner Voice (Higher Education)

Higher Education students in their final year of study have continued to respond well to the National Student Survey, and excellent student satisfaction scores have historically been achieved in teaching, learning and overall experiences in College. The results of the 2023 survey were no exception with an excellent set of results for the College.

----- Start of picture text -----
Overall satisfaction Overall satisfaction Academic Support Academic Support
97%
100% 100%
84% 87% 81% 86% 83% 86% 82%
77% 75%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
CSG CSG CSG UWTSD HEIs CSG CSG CSG UWTSD HEIs
(2021) (2022) (2023) (Wales) (2021) (2022) (2023) (Wales)
----- End of picture text -----

----- Start of picture text -----
Teaching
97%
100%
88% 85% 87% 84%
80%
60%
40%
20%
0%
CSG CSG CSG UWTSD HEIs
(2021) (2022) (2023) (Wales)
----- End of picture text -----*

----- Start of picture text -----
Assessment & Feedback i
100% 95%
84% 82% 86%
78%
80%
60%
40%
20%
0%
CSG CSG CSG UWTSD HEIs
(2021) (2022) (2023) (Wales)
----- End of picture text -----*

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STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Coleg Ceredigion

----- Start of picture text -----
Learning Resources Learning Opportunities
100% 90% 90% 100% 93%
82% 85% 88% 87% 85%
75% 80%
80%
80%
60%
60%
40%
40%
20%
0% 20%
CSG CSG CSG UWTSD HEIs CSG CSG CSG UWTSD HEIs
(2021) (2022) (2023) (Wales) (2021) (2022) (2023) (Wales)
ni it
----- End of picture text -----

Capital Investment and Accommodation (Coleg Sir Gâr only)

Although there were no major building projects or acquisitions during the year, there has been a significant amount capital investment in relation to buildings maintenance, plant, equipment and IT expedited at the college for during 2022/23.

The Future

The College sees a strong future for itself as part of the merged University of Wales: Trinity Saint David (“UWTSD”) group and has made a commitment to continuing to offer a strong further education provision across the county.

A number of key challenges face the College over the next few years, including:

Principal Risks and Uncertainties

The College operates a strong risk management and internal control framework as described in the corporate governance statement below. This is supported by a specific risk management programme.

The Audit and Risk Management committee undertakes a comprehensive review of all the potential risks facing the College, which are then recorded on the College’s risk register and scored in accordance with a set matrix which identifies the likelihood or probability of these risks occurring, and the potential impact on the College if they materialise. The committee must then identify systems, procedures and controls which can be put in place to mitigate the risks in order to reduce the risks to a manageable or acceptable level.

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Coleg Ceredigion

STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Risk management is a topic covered at each meeting of the Audit and Risk Management committee, which reports its findings periodically to the Board.

An annual review is undertaken to ensure the effectiveness of the risk management system and any weaknesses identified are corrected.

Outlined below are some of the principal risks facing the College for the foreseeable future. Not all of the factors are within the College’s control. Other factors besides those listed below may also adversely affect the College.

1. Reduction in real terms of government funding

The College relies on government funding, and the current climate is such that there are continuous pressures on this income stream.

This risk is mitigated in a number of ways:

2. Failure to recruit and retain students

Demographics and a changing environment in which competition is perceived to be intensifying will invariably make it more difficult to recruit and maintain student numbers. This could have an impact on all areas of funding.

The risk is mitigated as follows:

3. General Economic Conditions : Energy & The cost of living crisis

The college is actively addressing operations to ensure the smooth continuity of operations as well as working closely with Welsh Government during these continued challenging times.

Key Performance Indicators

The College is pleased to confirm that the target of breakeven before defined benefit obligation costs has been more than achieved with an actual outturn before non-cash defined benefit obligation costs, of £431,000 surplus (21/22: £297,000 surplus). The surplus for the year after defined benefit obligation costs is £307,000 (deficit of 74,000 in 21/22), with non-cash adjustments being £124,000 (21/22: £371,000). Note the above includes a charge of £ 58,000 for exceptional restructuring costs.

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STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2023

Student numbers remained relatively buoyant for the year, with total FE full time numbers roughly in line with prior year levels.

The College continues to achieve high standards of quality for its teaching and learning function, and received a good Estyn report in at the last inspection ( see Strategic Report ) . Similarly, National Student Survey reports normally indicate a high level of student satisfaction.

This report was approved by the board on the 7[th] December 2023 and was signed on behalf of the board by:

Signature …… Date: 7[th] December 2023……………………………

Mrs Maria Stedman

Director

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Coleg Ceredigion

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 JULY 2023

The directors present their report and the audited financial statements of the Company for the year ended 31st July 2023.

Results and future developments

The results for the year, strategy and future developments of the Company are set out in the Strategic Report on pages 3 to 14.

Dividends

The Company is limited by guarantee. No dividends have been paid or are recommended for the year ended 31st July 2023.

Professional advisers

External auditor: KPMG LLP, Cardiff Internal auditor : Mazars LLP, Bristol Banker: Barclays Bank Plc, Swansea Solicitor: Eversheds, Hepworth & Chadwick, Cardiff

Directors

The directors of the Company who were in office during the year and up to the date of signing the financial statements, unless otherwise stated, were as follows:

Directors

Mrs Maria Stedman # (Chair) Mr John Edge # Mr Eifion Griffiths # Mr Richard John Williams # - Appointed 6th October 2022 Mr Andrew Cornish *#

(* non – executive directors) (# Trustees)

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DIRECTORS’ REPORT FOR THE YEAR ENDED 31 JULY 2023

Directors' indemnities

The directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year, and remains in force as at the date of signing of these financial statements.

Payment performance

The College follows the Better Payments Practice Code in dealing with its suppliers. The four key principles of the code are:

The Late Payment of Commercial Debts (Interest) Act 1998, which came into force on 1 November 1998, requires Colleges, in the absence of agreement to the contrary, to make payments to suppliers within 30 days of either the provision of goods or services or the date on which the invoice was received.

Estate developments

The College regularly invests in the maintenance of the estate with planned annual programmes of maintenance carried out during the summer months. Annual budgets include an allocation for such works.

Equal opportunities

The College is committed to ensuring equality of opportunity for all who learn and work here. We respect and value positively differences in race, gender, sexual orientation, disability, religion or belief and age. We strive vigorously to remove conditions which place people at a disadvantage and we will actively combat bigotry. This policy is resourced, implemented and monitored on a planned basis.

The College’s Strategic Equality Plan, although applying generally to employees, has equal relevance to disabled persons as the College would provide training, career development and opportunities for promotion which are, as far as possible, identical to those for other employees.

Stakeholder relationships

The College has many stakeholders. These include, but are not limited to:

The College recognises the importance of these relationships and engages in regular communication with them through meetings and the College’s internet site.

Staff and student involvement

The College systematically provides employees and staff with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests The committee structure provides the formal

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DIRECTORS’ REPORT FOR THE YEAR ENDED 31 JULY 2023

communication links with representation as appropriate from different staff employment categories and students. Employee and student involvement in the College is encouraged, as achieving a common awareness on the part of all employees and students of the financial and economic factors affecting the College plays a major role in the decision-making process.

Statement of directors’ responsibilities

The Directors are required to present audited financial statements for each financial year under company law. The directors are responsible for preparing the Annual Report, the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable law and regulations.

Within the terms and conditions of the Financial Memorandum between the Welsh Government and the Directors are required to prepare financial statements and an operating and financial review for each financial year in accordance with the Statement of Recommended Practice – Accounting for Further and Higher Education , the Accounts Direction for Further Education Colleges in Wales and the UK’s Generally Accepted Accounting Principles including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the Directors 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 College and its profit or loss for that period

In preparing the financial statements, the Directors are required to:

The Directors are also required to prepare a Members’ Report which describes what it is trying to do and how it is going about it, including information about the legal and administrative status of the College.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the College’s transactions and which disclose, with reasonable accuracy at any time, the financial position of the College and which enable them to ensure that the financial statements are prepared in accordance with relevant legislation including the Companies Act 2006, the Further and Higher Education Act 1992 and Charities Act 2011, and relevant accounting standards. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. They are responsible for taking steps that are reasonably open to them to safeguard the College’s assets and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of its website(s); the work carried out by auditors does not involve consideration of these matters and, accordingly, auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors are responsible for ensuring that expenditure and income are applied for the purposes intended by the Welsh Government and that the financial transactions conform to the authorities that govern them. In addition, they are responsible for ensuring that funds from the Welsh Government, and any other public funds, are used only in accordance with the Financial Memorandum with the Welsh Government and any other conditions that may be prescribed from time to time by the

17

Coleg Ceredigion

DIRECTORS’ REPORT FOR THE YEAR ENDED 31 JULY 2023

Welsh Government or any other public funder. Members must ensure that there are appropriate financial and management controls in place to safeguard public and other funds and ensure they are used properly. In addition, Directors are responsible for securing economical, efficient and effective management of the College’s resources and expenditure so that the benefits that should be derived from the application of public funds from the Welsh Government and other public bodies are not put at risk.

Measures taken to improve energy efficiency

Smart meters are installed across all sites. Energy saving lightbulbs(LEDs) are installed wherever possible and staff travel is reduced due to a focus on conducting meetings virtually using software such as Teams or Google meet. The college has invested heavily in bicycle storage facilities and operates a Cycle to Work Scheme to encourage this cleaner and healthier means of travel to college. EV ( Electric Vehicle) charging points are also installed at both our campuses.

Statement of disclosure of information to auditor

Each of the persons who were directors at the time when the Directors’ Report was approved has confirmed that, so far as the directors are aware, there is no relevant audit information (i.e. information needed by the company’s auditor in connection with preparing their report), of which the company’s auditors are unaware, and the directors have taken all steps that they ought to have taken in order to make themselves aware of any relevant information and to establish that the company’s auditor is aware of that information.

Independent auditor

Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office.

This report was approved by the Board on the 7[th] December2023 and was signed on behalf of the Board by:

Mrs Maria Stedman Registered address : Park Place, Cardigan, SA43 1AB Director

Date: 7[th] December 2023

18

Coleg Ceredigion

CORPORATE GOVERNANCE STATEMENT

The Company is committed to exhibiting best practice in all aspects of corporate governance. This summary describes the manner in which the Company has applied the principles set out in the Code of Good Governance for Colleges in Wales, as issued by Colegau Cymru (Colleges Wales). Its purpose is to aid users of the financial statements to understand how the principles have been applied.

In the opinion of the directors, the Company complies with all of the mandatory provisions of the code so far as they apply to the further education sector, and it has complied throughout the year ended 31 July 2023 and up to the date of this report.

The Board of Directors

The members of the Board of Directors are listed on page 15. It is the responsibility of the directors to bring independent judgement to issues of strategy, performance, resources and standards of conduct. The Company recognises that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times.

The Board is provided with regular and timely information on the overall financial performance of the Company, together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel-related matters such as health and safety and environmental issues. The Board meets four times a year.

The Company conducts its business through a number of committees. Each committee has terms of reference which have been approved by the Board. These committees are Search and Governance,; Remuneration; Learner Curriculum and Skills; Standards; Resources and Business Engagement; and Audit and Risk Management.

The committees are comprised of directors and co-opted members chosen via the search and governance committee which is comprised entirely of directors - for the knowledge, skills and experience that they bring to the respective committee. For the avoidance of doubt, the co-opted members are not directors of the Company. All decisions taken by the committees have to be subsequently formally approved by the Board.

The committees serve on an advisory basis and report directly to the Board of Directors. As a minimum, the chair of each committee will be a serving director. Details of the composition of each committee are noted under the respective heading below. Formal agendas, papers and reports are supplied to committee members and directors in a timely manner, prior to meetings. Briefings are also provided on an ad-hoc basis.

The Board has a strong and independent non-executive element and no individual or group dominates its decision-making process. The Company considers that each of its non-executive members is independent of management and free from any business or other relationship, which could materially interfere with the exercise of their independent judgement.

There is a clear division of responsibility in that the roles of the Chairman (a non-executive director) and Principal (an executive director) are separate.

The Board of Coleg Ceredigion meet regularly, but in the main, items for consideration are dealt with at the Colegsirgar Board meetings ( as the direct parent company).

Appointments to the Board of Directors

Any new appointments to the Board are a matter for the consideration of the Board as a whole. The Search committee is responsible for the selection and nomination of any new member for the Board’s consideration. The Board is responsible for ensuring that appropriate training is provided as required.

Search and Governance committee

Throughout the year ended 31 July 2023, the Institution’s Search committee comprised four members of the Board of Directors. The committee’s responsibilities are to make recommendations to the Board on the selection of directors and co-opted members, and on matters of governance.

19

Coleg Ceredigion

CORPORATE GOVERNANCE STATEMENT (continued)

Remuneration Committee

Made up of three Directors, the committee determines the remuneration and conditions of employment of senior post holders, including the Principal. Details of remuneration for the year ended 31 July 2023 are set out in note 6 to the financial statements.

Audit and Risk Management committee

The Audit and Risk Management committee is comprised of four members. The committee operates in accordance with written terms of reference approved by the Board.

The Audit and Risk Management committee meets on a termly basis and provides a forum for reporting by the Institution’s internal and financial statement auditors, who have access to the committee for independent discussion without the presence of Institution management. The committee also receives and considers reports from WG as they affect the Institution’s business.

The Company’s internal auditor monitors the systems of internal control, risk management controls and governance processes in accordance with an agreed plan of input, and report their findings to management and the Audit and Risk Management committee.

Management is responsible for the implementation of agreed audit recommendations, and internal audit undertake periodic follow-up reviews to ensure such recommendations have been implemented.

The Audit and Risk Management committee also advises the Company on the appointment of internal and financial statement auditors, and their remuneration for both audit and non-audit work.

Resources and Business Development committee

The Resources and Business Development committee is comprised of eight members. The committee operated in accordance with written terms of reference approved by the Board.

The committee meets on a termly basis to review all aspects of planning and resource utilisation in the Company. This would include budgeting, management and financial accounts, treasury and investments, human resources, and estates development and maintenance.

Learner, Curriculum and Skills (and Standards) committee .

The Learner, Curriculum and Skills along with the Standards committee is comprised of eight members. The committees operated in accordance with written terms of reference approved by the Board.

The committees meet on a termly basis to review all aspects of curriculum provision, delivery and performance in the Company.

Internal control

Scope of responsibility

The directors are ultimately responsible for the Institution’s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The Board has delegated the day-to-day responsibility to the Principal for maintaining a sound system of internal control that supports the achievement of the Institution’s policies, aims and objectives, whilst safeguarding the public funds and assets for which they are personally responsible, in accordance with the responsibilities assigned to them in the Financial Memorandum between Coleg Ceredigion and WG. The Principal is also responsible for reporting to the Board any material weaknesses or breakdowns in internal control.

20

Coleg Ceredigion

CORPORATE GOVERNANCE STATEMENT (continued)

Internal control (continued)

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Institution policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Coleg Ceredigion for the year ended 31 July 2023 and up to the date of approval of the annual report and financial statements.

Capacity to handle risk

The Board reviewed the key risks to which the Institution is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board is of the view that there is a formal ongoing process for identifying, evaluating and managing the Institution's significant risks that has been in place for the year ending 31 July 2023 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board.

The risk and control framework

The system of internal control is based on a framework of regular management information, administrative procedures including the segregation of duties, and a system of delegation and accountability. In particular, it includes:

Coleg Ceredigion engages a firm of professional auditors to provide an internal audit service, which operates in accordance with the requirements of WG. The work of the internal audit service is informed by an analysis of the risks to which the Institution is exposed and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit plans are endorsed by the Board on the recommendation of the audit and risk management committee. The internal auditor provides the governing body with a report on internal audit activity in the institution at least once each year. The report includes the internal auditor’s independent opinion on the adequacy and effectiveness of the Institution’s system of risk management, controls and governance processes.

The external auditor undertakes the annual financial statements audit and reports findings back to the committee. Both the internal and external auditors are key components of the Audit & Risk management process and are key areas of responsibility for the committee.

21

Coleg Ceredigion CORPORATE GOVERNANCE STATEMENT (continued)

Review of effectiveness

The Principal has responsibility for reviewing the effectiveness of the system of internal control. His review of the effectiveness of the system of internal control is informed by:

The Principal has been advised on the implications of the result of their review of the effectiveness of the system of internal control by the Audit and Risk Management committee, which oversees the work of the internal auditor, and a plan to address weaknesses and ensure continuous improvement of the system is in place.

The senior management team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms, which are embedded within the departments and reinforced by risk awareness training. The senior management team and the Audit and Risk Management committee also receive regular reports from internal audit, which include recommendations for improvement. The Audit and Risk Management committee's role in this area is confined to a high level review of the arrangements for internal control. The Board’s agenda includes a regular item for consideration of risk and control and receives reports thereon from the senior management team and the Audit and Risk Management committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its December 2023 meeting, the Board carried out the annual assessment for the year ended 31 July 2023 by considering documentation from the senior management team and internal audit, and taking account of events since 31 July 2023.

Based on the advice of the Audit and Risk Management Committee and the Principal, the Board is of the opinion that the Company has an adequate and effective framework for governance, risk management and control, and has fulfilled its statutory responsibility for “the effective and efficient use of resources, the solvency of the institution and the body and the safeguarding of their assets”.

Statement on regularity, propriety and compliance

The Governing Body has considered its responsibility to notify the Welsh Government of material irregularity, impropriety and non-compliance with the terms and conditions of funding, under the financial memorandum and contracts in place between the College and the Welsh Government. As part of our consideration we have had due regard to the requirements of the financial memorandum and contracts with the Welsh Government.

We confirm on behalf of the Governing Body, that after due enquiry, and to the best of our knowledge, we are able to identify any material irregular or improper use of funds by the College, or material noncompliance with the terms and conditions of funding under the college’s financial memorandum and contracts with the Welsh Government.

We confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Welsh Government.

Going concern

The activities of the College, together with the factors likely to affect its future development and performance are set out in the Strategic Report. The financial position of the College, its cash flow, liquidity and borrowings are presented in the Financial Statements and accompanying notes.

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements. After reviewing these forecasts, the Directors are of the opinion that, taking

22

Coleg Ceredigion

CORPORATE GOVERNANCE STATEMENT (continued)

account of severe but plausible downsides, including the anticipated impact of the energy & cost of living crisis, Ukraine War, Brexit & Covid-19 challenges, the College will have sufficient funds to meet its liabilities as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period).

Those forecasts are dependent on the College’s continued support from its immediate parent company, Coleg Sir Gar. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. Consequently, the directors are confident that the College has adequate resources to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore continue to adopt the going concern basis in preparing the financial statements.

Training and Development – Board of Directors and Heads of Governance

A number of in- house training sessions were undertaken during the year .

External Review – Governance

An external review of Governance is undertaken at least once every 3 years. The last review was carried out by the Internal Audit Team – Mazars LLP - in May 2022.

By order of the Board

………………………… Mrs Maria Stedman Director Date: 7[th] December 2023

23

Coleg Ceredigion

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF COLEG CEREDIGION

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Coleg Ceredigion (“the College”) for the year ended 31 July 2023 which comprise the Statement of Comprehensive Income, Statement of Changes in Reserves, Balance Sheet, Statement of Cash Flows and related notes, including the Statement of Principal Accounting Policies and Estimation Techniques in Note 1.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the College in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the College or to cease its operations, and as they have concluded that the College’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the Directors’ conclusions, we considered the inherent risks to the College’s business model and analysed how those risks might affect the College’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the College will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

24

Coleg Ceredigion INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF COLEG CEREDIGION (Continued)

As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk that management may be in a position to make inappropriate accounting entries. On this audit we did not identify a fraud risk related to revenue recognition due to the non-complex revenue recognition criteria, which limits the opportunity to fraudulently manipulate revenue.

We did not identify any additional fraud risks.

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the College-wide fraud risk management controls.

We also performed procedures including:

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors (as required by auditing standards), and discussed with the directors the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the College is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation and further education related legislation, including the Accounts Direction for Further Education Colleges in Wales issued by Welsh Government), distributable profits legislation and pensions legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the College is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, employment law, recognising the nature of the College’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The Directors are responsible for the other information, which comprises the Strategic Report, Directors’ Report, Public Benefit Statement and Statement of Corporate Governance and Internal Control. Our opinion on the financial statements does not cover the other information and, accordingly, we do not

25

Coleg Ceredigion

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF COLEG CEREDIGION (Continued)

express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report to you if, in our opinion:

We have nothing to report in these respects.

Directors’ responsibilities

As explained more fully in their statement set out on page 17, the Directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the College’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 they either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

We are required to report on the following matters under the Further Education Audit Code of Practice 2015 (effective 1 August 2014) issued by the Welsh Government under the Learning and Skills Act 2000.

In our opinion, in all material respects:

26

Coleg Ceredigion INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF COLEG CEREDIGION (Continued)

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES

This report is made solely to the College’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and paragraph 56(b) of the College’s Articles of Association. Our audit work has been undertaken so that we might state to the College’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 College and the College’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Rees Batley (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

66 Queen Square Bristol BS1 4BE Date :11 December 2023

27

Coleg Ceredigion

Statement of Comprehensive Income for the year ended 31 July 2023

2023 2022
Notes £000 £000
Income
Funding body grants 2 6,293 5,680
Tuition fees and education contracts 3 137 230
Other grants and contracts 4 78 142
Other income 5 402 325
Total income 6,910 6,377
Expenditure
Staff costs 6 4,633 4,585
Other operating expenses 7 1,519 1,349
Depreciation
 9 426 450
Interest and other finance costs 8 25 67
Total expenditure 6,603 6,451
Surplus/(deficit) before other gains and losses 307 (74)
Surplus/(deficit) for the year 307 (74)
Actuarial gain(loss) in respect of pension scheme 3,294 3,900
Total Comprehensive income/(expense) for the year 3,601 3,826
Represented by: 3,601 3,826
Unrestricted comprehensive income/(expense)

All amounts are derived from continuing operations.

The accompanying notes on pages 32-50 form part of the financial statements.

28

Coleg Ceredigion

Statement of Changes in Reserves for the year ended 31 July 2023

Statement of Changesin Reserves
for the year ended 31 July 2023
Income and Revaluation Total
Expenditure reserve
Account
£'000 £'000 £'000
Balance as at 1 August 2021 (2,743) 1,153 (1,590)
Deficit from the income and expenditure account (74) - (74)
Other comprehensive income 3,900 - 3,900
Transfers between revaluation and income and 43 (43) -
expenditurereserves
1,126 1,110 2,236
Balance as at 31 July 2022 1,126 1,110 2,236
Surplus from the income and expenditure account 307 - 307
Other comprehensive income 3,294 - 3,294
Transfers between revaluation and income and 43 (43) -
expenditure reserves
Pension asset ceiling (2,346) - (2,346)
1,298 (43) 1,255
Balance as 31 July 2023 2,424 1,067 3,491

The accompanying notes on pages form part of the financial statements.

29

Coleg Ceredigion

Balance sheet as at 31 July 2023

Balance sheet
as at 31 July 2023
2023 2022
Notes £'000 £'000
Fixed assets
Tangible fixed assets 9 4,298 4,470
Current assets
Stocks 6 6
Trade and other receivables 10 143 885
Cash and cash equivalents 14 1,882 588
2,031 1,479
Less: Creditors: amounts falling due within one year 11 (766) (772)
Net current assets/liabilities 1,265 707
Total assets 5,563 5,177
Less: Creditors - amounts falling due after more than one year 12 (1,822) (1,801)
Provisions
Defined benefit surplus(deficit) 16 - (824)
Other provisions 13 (250) (316)
Total net assets 3,491 2,236
Unrestricted reserves
Income and expenditure account 2,424 1,126 2,424 1,126
Revaluation reserve 1,067 1,110
Total unrestricted reserves, being total reserves 3,491 2,236

The financial statements on pages 28 to 50 were approved and authorised for issue by the Board on the 7[th] December 2023 and were signed on its behalf on that date by:

Chair: Director:

Date: 7[th] December 2023 Date: 7[th] December 2023

Mrs M Stedman Mr Andrew Cornish

Company registration no: 08725643

Charity registration no:

The accompanying notes form part of the financial statements.

30

Coleg Ceredigion

Statement of Cash Flows for the year ended 31 July 2023

Notes 2023 2022
£'000 £'000
Cash inflow/(outflow) from operating activities
Surplus/(deficit) for the year 307 (74)
Adjustment for non-cash items
Depreciation 426 450
(Increase)/Decrease in debtors 742 (717)
Increase/(Decrease) in creditors due within one year 77
 (6)
lncrease/(decrease) in creditors due after one year (221) (263)
Increase/(decrease) in provisions (66) (50)
Pensions costs less contributions payable 124 371
Adjustment for investing or financing activities
Interest received (23)
 (-)
Interestpayable - -
Net cash flow from operating activities 1,366
 (289)
Cash flows from investing activities
Interest received 23
 -
Payments made toacquire fixed assets (254) (501)
Grants received 159
 322
(72) (179)
Increase in cash and cash equivalents in theyear 1,294
 (468)
Cash and cash equivalents at beginning of the year 14 588
 1,056
Cash and cash equivalents at end of the year 14 1,882 588
The accompanying notes form part of the financial
statements.

31

Coleg Ceredigion Notes to the financial statements

for the year ended 31 July 2023

1 Statement of accounting policies and estimation techniques

Coleg Ceredigion is a company limited by guarantee and incorporated and domiciled in the United Kingdom

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

Basis of preparation

These financial statements have been prepared in accordance with the Companies Act, the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (the 2019 FE HE SORP), the Accounts Direction for Further Education Colleges in Wales 2022/23 and in accordance with Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" (FRS 102). The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the College's accounting policies.

Basis of accounting

The financial statements are prepared in accordance with the historical cost convention as modified by the use of previous valuations as deemed cost at transition to FRS 102 for certain non-current assets. The accounting rules set out below have been applied consistently.

Going concern

The activities of the College, together with the factors likely to affect its future development and performance are set out in the Strategic Report. The financial position of the College, its cash flow, liquidity and borrowings are presented in the Financial Statements and accompanying notes.

Total net assets were £5,459k as at 31 July 2023. The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements. After reviewing these forecasts, the Directors are of the opinion that, taking account of severe but plausible downsides, including the anticipated impact of rising energy and cost of living crisis Ukraine War, Brexit & Covid-19 challenges, the College will have sufficient funds to meet its liabilities as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period).

Consequently, the directors are confident that the College has adequate resources to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore continue to adopt the going concern basis in preparing the financial statements

32

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

1 Statement of accounting policies and estimation techniques (continued)

Recognition of income

Government revenue grants include funding body recurrent grants and other grants and are accounted for under the accrual model as permitted by FRS 102. Funding body recurrent grants are measured in line with amounts received in year. Any under or over achievement is estimated, adjusted for and reflected in the level of recurrent grant recognised in the income and expenditure account.

Grants (including research grants) from non-government sources are recognised in income when the College is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.

Government capital grants are capitalised, held as deferred income and recognised in income over the expected useful life of the asset, under the accrual method as permitted by FRS 102. Other capital grants are recognised in income when the College is entitled to the funds subject to any performance related conditions being met.

Income from tuition fees is stated gross of any expenditure which is not a discount and is recognised in the period for which it is received.

Income from contracts and other services rendered is included to the extent of the completion of the contract or service concerned. This is generally equivalent to the sum of the relevant expenditure incurred during the year and any related contributions towards overhead costs

All income from short-term deposits is credited to the income and expenditure account in the period in which it is earned on a receivable basis.

Accounting for post-employment benefits

Post-employment benefits to employees of the College are principally provided by the Teachers' Pension Scheme (TPS) and the Local Government Pension Scheme (LGPS). These are defined benefit plans, which are externally funded and contracted out of the State Second Pension.

The TPS is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions over employees' working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method. The TPS is a multi-employer scheme and the College is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution plan and the contributions recognised as an expense in the income statement in the periods during which services are rendered by employees.

The LGPS is a funded scheme. The assets of the LGPS are measured using closing fair values. LGPS liabilities are measured using the projected unit credit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Comprehensive Income and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other comprehensive income.Actuarial gains and losses are recognised immediately in other comprehensive income. Where the calculation results in a net asset, recognition of the asset is limited to the extent to which the College is able to recover the surplus, either through reduced contributions in the future or through refunds from the plan.

33

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

1 Statement of accounting policies and estimation techniques (continued)

Short term Employment benefits

Short term employment benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.

Enhanced Pensions

The actual cost of any enhanced ongoing pension to a former member of staff is paid by the college annually. An estimate of the expected future cost of any enhancement to the ongoing pension of a former member of staff is charged in full to the College's income in the year that the member of staff retires. In subsequent years a charge is made to provisions in the balance sheet using the enhanced pension spreadsheet provided by the funding bodies.

Non-current Assets - Tangible fixed assets

Tangible fixed assets are stated at cost / deemed cost less accumulated depreciation and accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to the 2015 FE HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Land and buildings

Freehold buildings are depreciated on a straight line basis over their expected useful lives of 50 years. Freehold land is not depreciated. Where land and buildings are acquired with the aid of specific grants, they are capitalised and depreciated as above. Further building improvements have historically been depreciated over 10 years or over the useful economic life of the asset. The related grants are credited to a deferred income account within creditors, and are released to the income and expenditure account over the expected useful economic life of the related asset on a systematic basis consistent with the depreciation policy. The deferred income is allocated between creditors due within one year and those due after more than one year.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any fixed asset may not be recoverable.

On adoption of FRS 102, the College followed the transitional provision to retain the book value of land and buildings, which were revalued in 1996, as deemed cost but not to adopt a policy of revaluations of these properties in the future.

Assets under construction

Assets under construction are accounted for at cost, based on the value of architects' certificates and other direct costs, incurred to 31 July. They are not depreciated until they are brought into use.

Subsequent expenditure on existing fixed assets

Where significant expenditure is incurred on tangible fixed assets after initial purchase it is charged to income in the period it is incurred, unless it increases the future benefits to the College, in which case it is capitalised and depreciated on the relevant basis.

Equipment

Equipment costing less than £3,000 per individual item is written off to the income and expenditure account in the period of acquisition. Grouped items, which are in aggregate above the threshold but individually under, will be reviewed specifically to determine the approach. Capitalised equipment is depreciated on a straight-line basis over its remaining useful economic life as follows:

34

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

1 Statement of accounting policies and estimation techniques (continued)

Leased assets

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Leasing agreements which transfer to the College substantially all the benefits and risks of ownership of an asset are treated as finance leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charges are allocated over the period of the lease in proportion to the capital element outstanding.

Inventories

Inventories are stated at the lower of their cost and net realisable value, being selling price less costs to complete and sell. Where necessary, provision is made for obsolete, slow-moving and defective items.

Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. An investment qualifies as a cash equivalent when it has maturity of three months or less from the date of acquisition

Financial assets, liabilities and equity

Financial assets, liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Any loans, investments and short term deposits held by the College are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost). FRS 102 requires that basic financial instruments are subsequently measured at amortised cost.

Foreign currency translation

Transactions denominated in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the end of the financial period with all resulting exchange differences being taken to income in the period in which they arise.

Taxation

The College is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by sections 478-488 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 to charitable purposes.

The College is partially exempt in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature.

35

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

1 Statement of accounting policies and estimation techniques (continued)

Provisions and contingent liabilities

Provisions are recognised when the College has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in the statement of comprehensive income in the period it arises.

A contingent liability arises from a past event that gives the College a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the College. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

Contingent liabilities are not recognised in the balance sheet but are disclosed in the notes to the financial statements.

Agency arrangements

The College acts as an agent in the collection and payment of discretionary support funds. Related payments received from the funding bodies and subsequent disbursements to students are excluded from the income and expenditure of the College where the College is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, management have made the following judgements:

Other key sources of estimation uncertainty

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 16, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 July 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

36

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

Notes to the financial statements
for the year ended 31 July 2023 (continued)
2
Funding body grants
2023 2022
£000 £000
Recurrent grant 5,590
 4,935
Work based learning 292 292
Releases of deferred capital grant:
Buildings 73
 62
Equipment 148
 201
Other Revenue Grants 190
 190
6,293
 5,680
3
Tuition fees and education contracts		 2023 2022
£000 £000
UK Further Education students 7
 15
UK Higher Education students -
 -
Total fees paid by or on behalf of individual students 7
 15
Higher Education contracts -
 -
Other contracts 130
 215
137
230
4
Other grants and contracts
2023 2022
£000 £000
European Commission 78
 142
5
Other income
2023 2022
£000 £000
Catering and residences 159
 114
Other income-generating activities 104
 79
Miscellaneous income 139
 131
402
 325

37

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

6 Staff costs

The average number of persons (including key management personal) employed by the College during the year, described as full-time equivalents, was:

2023 2022
Number Number
Teaching staff 60 60
Non-Teaching 44 45
104 105
Average number of staff by headcount
Teaching staff 80 84
Non- Teaching 64 70
Total 144 154
Staff costs for the above persons
2023 2022
£000 £000
Wages and salaries 3,452 3,295
Social security costs 321 296
Otherpensioncosts 802 994
4,575 4,585
Staff Restructuring 58 -
4,633 4,585

Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. Key management personnel represent the members of the management team with salaries exceeding £60,000 per annum.

Number of Key management personnel, Accounting Officer and other higher paid staff

2023 2022
No No
The number of key management personnel including the Accounting Officer 1 1
was:

38

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

6 Staff costs

The number of key management personnel and other staff who received annual emoluments, excluding pension contributions but including benefits in kind, in the following ranges was:

Key Other
Management staff
Personnel
2023 2022 2023 2022
No No No No
£60,001 to £65,000 0 1 0 0
£65,001 to £70,000 1 0 0 0
Key management personnel emoluments are made up as follows: -
2023 2022
£'000 £'000
Salaries 67 60
Benefits in kind - -
67 60
Pension contributions 16 14
Total emoluments 83 74

Emoluments paid to the highest paid staff member (included in above)

2023 2022
£'000 £'000
Salaries 67 60
Benefits in kind - -
67 60
Pension contributions 16 14

Total emoluments 83 74

£350,000 was recharged by Coleg Sir Gar to recover an element of the Principal, Vice Principals and Directors, who are on the payroll of Coleg Sir Gar but who’s time is spent between Coleg Sir Gar and Coleg Ceredigion. The recharge includes £57,910 towards the payment of the Principal’s salary (not included in key personnel above). The Principal is also the Accountable officer. Further details of the Principal’s emoluments can be found in the disclosures within Coleg Sir Gar financial statements.

39

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

7
Other operating expenses
2023 2022
£'000 £'000
Teaching costs 372 290
Non-teaching costs 852 724
Premises 295 335
1,519 1,349
Other operating expenses include:
2023 2022
£000 £000
Auditor’s remuneration:
Financial statements audit 28 26
Internal audit - -
Hire of assets under operatingleases 20 30
8
Interest and other finance costs
2023 2022
£000 £000
Pension finance costs (note 16) 25 67
9 Tangible fixed assets
Land and Equipment Total
buildings
Freehold
£000 £000 £000
Cost or valuation
At 1 August 2022 8,067 2,138 10,205
Additions 69 185 254
Disposals - (36) (36)
At 31Jul2023 8,136 2,287 10,423
Depreciation
At 1 August 2022 4,013 1,722 5,735
Charge for the year 220 206 426
Eliminated on disposal - (36) (36)
At 31Jul2023
 4,233 **1,892 ** 6,125
Net book value at 31 July 2023 3,903 395 4,298
Net book value as at 31 July2022 4,054 416 4,470

40

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

10
Trade and other receivables
2023
2022
£'000
£'000
Amounts falling due within one year:-
Trade receivables
1
27
Amounts owed by group undertaking:
- 654
Prepayments and accrued income
142
204
Total
143
885
The above is repayable on demand and interest free.
11
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Trade payables
131
139
Other taxation and social security
115
72
Accruals and deferred income
299
298
Deferred income -government capitalgrants
221
263
Total
766
772

12 Creditors: amounts falling due after more than one year

2023 2022
£'000 £'000
Deferred income-Government capital grants 1,822 1,801
13 Other Provisions
Enhanced Pensions
£'000
At 1 August 2022 316
Expenditure in the year (26)
Transferred from income and (40)
expenditure account
At 31 July 2023 250

The enhanced pension provision relates to the cost of staff that have already left the College's employ and commitments for re-organisation costs from which the College cannot reasonably withdraw at the balance sheet date. This provision has been recalculated in accordance with guidance issued by the funding bodies.

The principal assumptions for this calculation are:

e principal assumptions for this calculation are:
2023 2022
Price inflation 5.0% 3.3%
Discount rate 2.8% 2.9%

41

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

14 Cash and cash equivalents
At 1 Cash flows At 31 July
August 2023
2022
£'000 £'000 £'000
Cash 588 1,294 1,882

15 Lease Obligations

At 31 July the College had minimum lease payments under non-cancellable operating leases as follows:

Future minimum lease payments due
Other than land and buildings
Not later than one year
Later than one year and not later than five years		 2023
£'000
2022
£'000
15
16
6
18
21
34

16 Defined benefit obligations

The College's employees belong to two principal post-employment benefit plans: The Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Dyfed Pension Scheme (LGPS) for non-teaching staff, which is managed by Mercer Limited. Both are multiemployer defined-benefit plans.

Total pension cost for the year
Teachers' Pension Scheme: contributions paid
Local Government Pension Scheme:
Contributions paid
FRS 102 (28) charge
Charge to the Statement of Comprehensive Income
Enhanced pension charge to Statement of
Comprehensive Income
Total Pension Cost for Year		 227
124		 2023
£'000
476
351
(40)		 229
371		 2022
£'000
461
600
(23)
787 1,038

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest formal actuarial valuation of the TPS was 31 March 2016 and of the LGPS 31 March 2022.

Contributions amounting to £71,000 (2022: £55,000) were payable to the TPS scheme and £Nil (2022: £24,000) were payable to the LGPS scheme at the year-end and are included in creditors.

42

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

16 Defined benefit obligations (continued)

Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations 2010, and, from 1 April 2014, by the Teachers' Pension Scheme Regulations 2014. These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although teachers and lecturers are employed by various bodies, their retirement and other pension benefits, including annual increases payable under the Pensions (Increase) Acts are, as provided for in the Superannuation Act 1972, paid out of monies provided by Parliament. Under the unfunded TPS, teachers' contributions on a 'pay-as-you-go' basis, and employers' contributions, are credited to the Exchequer under arrangements governed by the above Act.

The Teachers' Pensions Regulations require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pensions' increases). From 1 April 2001, the Account has been credited with a real rate of return which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers' Pension Scheme

This report sets out the results of the actuarial valuation of the combination of the Teachers' Pension Scheme (‘pre-2015 Scheme’) 6 and the 2015 Teachers' Pension Scheme (‘2015 Scheme’) 7 (Teachers' Pension Scheme or ‘the Scheme’). The Scheme provides pensions and other benefits to teachers who have worked in schools or other educational establishments in England and Wales. The Scheme is an unfunded statutory public service pension scheme with the benefits underwritten by the Government. The Scheme is financed by payments from the employer and from those current employees who are members of the Scheme, who pay contributions at different rates based on pay and as specified in the regulations

The latest actuarial valuation of the scheme was carried out as at 31 March 2016 and in accordance with The Public Service Pensions (Valuations and Employers Cost Cap) Directions 2014. The Government Actuary (GA) reported on the valuation of the Teachers’ Pension Scheme on 9 June 2014. The GA concluded that:

43

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

16 Defined benefit obligations (continued)

Scheme Changes

Following the Hutton report in March 2011 and the subsequent consultations with trade unions and other representative bodies on reform of the TPS, the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.

In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall up to three and a half years outside of the 10 year protection.

Regulations giving effect to a reformed Teachers' Pension Scheme came into force on 1 April 2014 and the reformed scheme commenced on 1 April 2015.

The pension costs paid to TPS in the year amounted to £476,000 (2022: £461,000).

FRS 102 (28)

Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension scheme. The College is unable to identify its share of the underlying assets and liabilities of the scheme.

Accordingly, the College has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The College has set out above the information available on the plan and the implications for the College in terms of the anticipated contribution rates.

Local Government Pension Scheme

The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Carmarthenshire Local Authority. The total contribution made for the year ended 31 July 2023 was £299,000, of which employer's contributions totaled £230,000 and employees' contributions totaled £69,000. The agreed employer’s contribution rate is19.7%, rising to 20.2% from April 2024.

The Contribution Banding Arrangement for the MAIN Section of the Scheme for the period from 1 April 2023 to 31 March 2024 is as below:

Actual Pensionable Pay Rate of Contribution for the MAIN Section
Up to £16,500 5.50%
£16,501 - £25,900 5.80%
£25,901 - £42,100 6.50%
£42,101 - £53,300 6.80%
£53,301 - £74,700 8.50%
£74,701 - £105,900 9.90%
£105,901 - £124,800 10.50%
£124,801 - £187,200 11.40%
£187,201 and more 12.50%

44

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

16 Defined benefit obligations (continued)

Principal Actuarial Assumptions

The following information is based upon a full actuarial valuation of the fund at 31 March 2022 updated to 31 July 2023 by a qualified independent actuary.

2023 2022
Rate of increase in salaries 4.20% 4.20%
Future pensions increases 2.80% 2.80%
Discount rate for scheme liabilities 5.10% 3.50%
Inflation assumption (CPI) 2.70% 2.70%

Post Retirement Mortality assumptions

Beginning of period:

End of period:

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

tes. The assumed life expectations on retirement age 65 are:
2023 2022
years years
Retiring today
Males 21.40 23.00
Females 23.70 24.90
Retiring in 20 years’ time
Males 22.80 24.40
Females 25.50 27.10

45

Coleg Ceredigion

Notes to the financial statements for the year ended 31 July 2023 (continued)

16 Defined benefit obligations (continued)

The College's share of the assets in the plan and the expected rates of return were:

Long-
term rate
of return
expected
at 31 July
2023
Equities
73.10%
Government Bonds
0.20%
Other Bonds
8.50%
Property
13.20%
Cash/Other
5.00%
Total market value of assets
Actual return on plan assets
Fair Value
at 31 July
2023
Long-term
rate of return
expected at
31 July 2022
£'000
9,428
70.40%
26
1.40%
1,096
7.30%
1,703
15.80%
645
5.10%
12,898
192		 Fair Value
at 31 July
2022
£'000
8,646
172
897
1,941
626
12,282
(112)

The following amounts at 31 July 2023 and 31 July 2022 were measured in

accordance with the requirements of FRS 102 ( note that IAS 19 has been used to calculate the value of pension surplus to be recognised on the balance sheet which concluded that the surplus should be restricted to NIL) – see LGPS policy under policies on page 33 for more detail:

2023
2022
£'000
£'000
Fair value of plan assets
12,898
12,282
Present value of plan liabilities
(10,552)
(13,106)
Netpensions surplus(liability)
2,346
(824)
Effect ofasset ceiling
(2,346)-
Recognised pension asset/(liability) - (824)

46

Coleg Ceredigion

Notes to the Financial Statements

For the year ended 31 July 2023 (Continued)

Amounts recognised in the Statement of Comprehensive Income in respect of the plan are as follows:

follows:
2023 2022
£'000 £'000
Amounts included in staff costs
Current services cost (324) (530)
Administration charge (5) (5)
Curtailment cost - -
Operatingcost (329) (535)
Amounts included in interest and other finance
Net interest
(25) (67)
Amounts recognised in Other Comprehensive Income
Return on pension plan assets 429 199
Changes in assumptions underlying the present value of 2,865 3,701
plan liabilities
Amount recognised in Other Comprehensive income/(expense) 3,294 3,900
Movement in net defined benefit (liability)/asset during the year
2023 2022
£'000 £'000
Deficit in scheme at 1 August (824) (4,353)
Movement in year:
Current service cost (324) (530)
Employer contributions 230 231
Net interest on the defined (liability)/asset (25) (67)
Administration charge/curtailment fee (5) (5)
Actuarial gain(loss) 3,294 3,900
Effect ofasset ceiling (2,346) -
Net defined benefitpension (obligation)/asset at 31 July - (824)

47

Coleg Ceredigion

Notes to the Financial Statements

For the year ended 31 July 2023 (Continued)

Asset and liability reconciliation

Changes in the present value of defined benefit obligations
Defined benefit obligations at start of year
Current Service cost
Interest cost
Contributions by Scheme participants
Changes in financial assumptions
Changes in demographic assumptions
Experience (gain)/loss
Estimated benefits paid
Past Service cost		 2023
£'000
13,106
324
454
69
(3,317)
(461)
751
(374)
-		 2022
£'000
16,857
530
266
69
(4,993)
(111)
893
(405)
-
Defined benefit obligations at end of year 10,552 13,106
Reconciliation of assets
Fair value of plan assets at start of year
Interest on plan assets
Return on plan assets
Employer contributions
Administration Charge
Contributions by Scheme participants
Estimated benefits paid
Assets at end of year
Effect of asset ceiling
Recognised value of scheme assets		 2023
£'000
12,282
429
267
230
(5)
69
(374)
12,898
(2,346)
10,552		 2022
£'000
12,504
199
(311)
231
(5)
69
(405)
12,282
-
12,282

Reconciliation of assets

16 Defined benefit obligations (continued)

Recent changes in global and UK economic pressures and tightening of monetary policy have had a significant impact on asset markets and corporate bonds yields, which are key to the FRS 102 assessment to the net pension asset or liability. In particular, AA corporate bond yields, used to set the FRS 102 discount rate have increased significantly, with corresponding falls in asset value. The markets have been exceptionally volatile and therefore both gross BDO’s and assets have fallen.

48

Coleg Ceredigion

Notes to the Financial Statements

For the year ended 31 July 2023 (Continued)

17 Related party transactions

Owing to the nature of the College's operations and the composition of the board of governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of governors may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the College's financial regulations and normal procurement procedures.

The total expenses paid to or on behalf of the Governors during the year was £Nil; 4 governors (2022: £Nil; 4 governors). This represents travel and subsistence expenses and other out of pocket expenses incurred in attending Governor meetings and charity events in their official capacity.

No Governor has received any remuneration or waived payments from the College or its subsidiaries during the year (2022: None).

The following transactions were undertaken during the year and balances held with related parties at the year-end:

University of Wales: Trinity Saint David - Parent

Receivable £Nil (2022 £Nil) Payable £Nil (2022 £Nil)

Total Income for the year £Nil (2022 £505) Total Purchases for the year £Nil (2022 £Nil)

Coleg Sir Gar - Group Member

Receivable £Nil (2022 £653,910) Payable £Nil (2022 £Nil)

Total Income for the year £13,669 (2022 £3,140) Total Purchases for the year £Nil (2022 £Nil)

Fforwm Services Limited

Total income for the year £29,600 (2022 £80,099) Total purchases for the year £Nil (2022 £Nil)

Note: Transactions for group companies are for services rendered during the year

49

Coleg Ceredigion

Notes to the Financial Statements

For the year ended 31 July 2023 (Continued)

18 Amounts disbursed as agent

FINANCIAL CONTINGENCY FUND

2023 2022
£'000 £'000
Balance b/f 22 19
Grant Received 115 95
137 114
Disbursed to students (124) (89)
Administration costs (3) (3)
Balance unspent as at 31 July, included in creditors 10 22

Funding body grants are available solely for students. In the majority of instances, the College only acts as a paying agent. In these circumstances, the grants and related disbursements are therefore excluded from the Statement of Comprehensive Income.

19 Ultimate parent undertaking

The ultimate parent undertaking and controlling party is the University of Wales: Trinity Saint David, a Higher Education Corporation. The results of the Company have been incorporated in the University of Wales: Trinity Saint David consolidated financial statements, which form the largest and smallest group for which the Company’s statements are consolidated, copies of which are obtained from the following address:

University of Wales: Trinity Saint David Carmarthen Campus Carmarthen SA31 3EP

50