2022-03-31-accounts

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Charity registration number 1154976

Company registration number 08762956 (England and Wales)

CITY COLLEGE PETERBOROUGH FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 MARCH 2022

CITY COLLEGE PETERBOROUGH FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Directors	P Carrington
	T Hennessy
	C Higgins
	L Hull
	J Procter
Charity number	1154976
Company number	08762956
Registered office	City College Peterborough
	Brook Street
	Peterborough
	United Kingdom
	PE1 1TU
Auditor	Azets Audit Services
	Ruthlyn House
	90 Lincoln Road
	Peterborough
	United Kingdom
	PE1 2SP
Bankers	CAF Bank Limited
	PO Box 289
	West Malling
	Kent
	United Kingdom
	ME19 4TA

CITY COLLEGE PETERBOROUGH FOUNDATION

	Page
Directors' report	1 - 3
Statement of directors' responsibilities	4
Independent auditor's report	5 - 7
Statement of financial activities	8 - 9
Summary income and expenditure account	10
Balance sheet	12 - 13
Statement of cash flows	12
Notes to the financial statements	13 - 27

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 30 MARCH 2022

The directors present their annual report and financial statements for the Period ended 30 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity's purposes as set out in the objects contained in the company's memorandum of association are to:

1) to advance education;

2) to advance health;
3) to relieve unemployment
4) to relieve poverty;

5) to promote for the benefit of the public the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants;

6) the promotion of community participation in healthy recreation in particular by the provision of facilities for the playing of sports and related activities;

7) to promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society.

'Socially excluded' means being excluded from society, or parts of society, as a result of one or more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental); substance abuse or dependency including alcohol and drugs; discrimination on the grounds of sex, race, disability, ethnic origin, religion, belief, creed, sexual orientation or gender re-assignment; poor educational or skills attainment; relationship and family breakdown; poor housing (that is housing that does not meet basic habitable standards); crime (either as a victim of crime or as an offender rehabilitating into society).

The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Financial review

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the Period.

The directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Structure, governance and management

The charity is a company limited by guarantee and is governed by its Articles of Association.

The directors who served during the Period and up to the date of signature of the financial statements were: P Carrington

T Hennessy C Higgins L Hull J Procter

None of the directors has any beneficial interest in the company. All of the directors are members of the company and guarantee to contribute £1 in the event of a winding up.

History and activity

The charity was set up in 2014 and remained inactive until April 2016 when funds were transferred from City College Peterborough 'Activities and Amenities' account, an historic account built up from non-funded College activities.

In August 2015 City College Peterborough took over the management of the Peterborough Day Opportunities Service providing day and employment support to adults under 65 with a disability.

Part of the development plan for Day Opportunities is to grow exciting and new supported micro enterprises into self sustaining social enterprises which will be managed through the charity. People supported in Day Opportunities, their parents, carers and staff had, prior to becoming part of City College Peterborough, raised funds at Kingfisher Centre, one of the day centres, to purchase specialised equipment for people with multiple and complex needs. These funds have been transferred into the charity and are treated as restricted funds.

The charity does not currently have any employees in its service.

September 2020 saw the incorporation of a wholly owned trading subsidiary named City Culture Peterborough Ltd which was created in order for the charity to take on responsibility for running cultural, heritage and library services on behalf of Peterborough City Council. City Culture Peterborough Limited assumed this responsibility from the 1st of October 2020 and undertook the operational management of 10 libraries, archives, the Peterborough Museum and Art Gallery, Flag Fen Archaeology Park, and the Key Theatre within Peterborough until 31 March 2022. All activities of the compay were transferred out at this date and the company has not traded since.

City Culture Peterborough is a separate company limited by shares where the charity is the sole shareholder.

The 3 directors of the company are also trustees of the charity and the charity has consolidated the accounts of City Culture Peterborough Limited in this reporting period.

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

The directors' report was approved by the Board of Directors.

..............................

P Carrington Director Dated: .........................

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF DIRECTORS' RESPONSIBILITIES

FOR THE PERIOD ENDED 30 MARCH 2022

The directors, who also act as trustees for the charitable activities of City College Peterborough Foundation, are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that Period.

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

Opinion

We have audited the financial statements of City College Peterborough Foundation (the ‘charity’) and it's subsidiary for the Period ended 30 March 2022 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group and Parent Charitable Company Cash Flow Statements and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group and Parent Charitable Company affairs as at 30 March 2022 and of its incoming resources and application of resources, for the Period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other matter - going concern of the subsidiary company

We draw attention to note 1.3 to the financial statements which explains that the company ceased trading and therefore the directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the directors' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services

Chartered Accountants Statutory Auditor

......................... Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 30 MARCH 2022

Current financial year Unrestricted Restricted Endowment funds funds funds 2022 2022 2022 Notes £ £ £ Income from: Donations and legacies 3 444 3,206 - Charitable activities 4 290,160 - - Other trading activities 5 3,432,694 - - Total income 3,723,298 3,206 - Expenditure on: Raising funds 6 3,442,849 - - Charitable activities 7 73,180 - 77,200 Total resources expended 3,516,029 - 77,200 Net movement in funds 207,269 3,206 (77,200) Fund balances at 1 April 2021 260,844 4,798 4,531,333 Fund balances at 30 March 2022 468,113 8,004 4,454,133	Total 2022 £ 3,650 290,160 3,432,694 3,726,504 3,442,849 150,380 3,593,229 133,275 4,796,975 4,930,250	Total 2021 £ 674 133,563 1,380,705
		1,514,942
		1,370,550
		127,363
		1,497,913
		17,029 4,779,946
		4,796,975

The statement of financial activities includes all gains and losses recognised in the Period.

All income and expenditure derive from continuing activities.

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Prior financial year

Unrestricted Restricted Endowment funds funds funds 2021 2021 2021 Notes £ £ £ Income from: Donations and legacies 3 674 - - Charitable activities 4 133,563 - - Other trading activities 5 1,380,705 - - Total income 1,514,942 - - Expenditure on: Raising funds 6 1,370,550 - - Charitable activities 7 75,896 - 51,467 Total resources expended 1,446,446 - 51,467 Net movement in funds 68,496 - (51,467) Fund balances at 1 August 2020 192,348 4,798 4,582,800 Fund balances at 31 March 2021 260,844 4,798 4,531,333	Total 2021 £ 674 133,563 1,380,705
	1,514,942
	1,370,550
	127,363
	1,497,913
	17,029 4,779,946
	4,796,975

The statement of financial activities includes all gains and losses recognised in the Period.

All income and expenditure derive from continuing activities.

CITY COLLEGE PETERBOROUGH FOUNDATION

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 MARCH 2022

All income funds Period ended 30 March 2022 £ Gross income 3,726,504 Total expenditure from income funds 3,516,029 Net income for the Period 210,475	Period ended 31 March 2021 £ 1,514,942 1,446,446
	68,496

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CITY COLLEGE PETERBOROUGH FOUNDATION

BALANCE SHEETS

AS AT 30 MARCH 2022

Notes Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Provisions for liabilities 17 Net assets Capital funds Endowment funds - general 19 Income funds Restricted funds 20 General unrestricted funds	Group 2022 £ 4,454,133 - 4,454,133 242,042 506,526 748,568 (272,451) 476,117 4,930,250 - 4,930,250 4,454,133 8,004 468,113 4,930,250	Charity 2022 £ 4,454,133 100 4,454,233 184,278 434,139 618,417 (142,400) 476,017 4,930,250 - 4,930,250 4,454,133 8,004 468,113 4,930,250	Group 2021 £ 4,543,870 - 4,543,870 204,353 379,575 583,928 (328,441) 255,487 4,799,357 (2,382) 4,796,975 4,531,333 4,798 260,844 4,796,975	Charity 2021 £ 4,531,333 100 4,531,433 93,387 188,225 281,612 (26,225) 255,387 4,786,820 - 4,786,820 4,531,333 4,798 250,589 4,786,820

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the Period ended 30 March 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on ......................... and are signed on its behalf by:

..............................

P Carrington

Trustee Company Registration No. 08762956

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CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 MARCH 2022

Notes Cash flows from operating activities Cash generated from operations 24 Investing activities Purchase of tangible fixed assets Net cash used in investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of Period Cash and cash equivalents at end of Period	2022 £ -	£ 126,951 - - 126,951 379,575 506,526	2021 £ (16,716)	£ 205,368 (16,716) - 188,652 190,923 379,575

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CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

Charity information

City College Peterborough Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is City College Peterborough, Brook Street, Peterborough, PE1 1TU, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Group financial statements

The financial statements consolidate the results of the charitable company and its subsidiary undertaking City Culture Peterborough Limited on a line by line basis. Intra-group sales and profits are eliminated fully on consolidation. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

1.3 Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

In respect of the subsidiary company only:

All activities of the company were transferred out on 1 April 2022 and the company ceased trading. All debtors and creditors balances at the period end are in the process of being settled.

As a result, the directors have not prepared the financial statements on a going concern basis. No adjustments were necessary to the amounts at which the net assets are included in the financial statements.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.5 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.6 Expenditure

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

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings 2% p.a. straight line Computers 25% p.a. straight line

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

2 Critical accounting estimates and judgements

(Continued)

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of property

The property that was donated in the year ended 31 March 2020 has been included at a valuation calculated by Barker Storey Matthews, an independent valuer.

3 Donations and legacies

Unrestricted Restricted funds funds 2022 2022 £ £ Donations and gifts 444 3,206 Charitable activities Charitable rental income	Total Unrestricted funds 2022 2021 £ £ 3,650 674 2022 2021 £ £ 290,160 133,563	Total Unrestricted funds 2022 2021 £ £ 3,650 674 2022 2021 £ £ 290,160 133,563
		2021 £ 133,563

4 Charitable activities

5 Other trading activities

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
	£	£
Commercial operations in trading subsidiary	3,432,694	1,380,705

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CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

6 7	Raising funds Unrestricted Unrestricted funds funds 2022 2021 £ £ Trading costs Commercial operations in trading subsidiary 3,442,849 1,370,550 3,442,849 1,370,550 Charitable activities 2022 2021 £ £ Depreciation 77,200 51,467 Share of support costs (see note 8) 69,180 70,220 Share of governance costs (see note 8) 4,000 5,676 150,380 127,363 Analysis by fund Unrestricted funds 73,180 75,896 Endowment funds - general 77,200 51,467 150,380 127,363	Raising funds Unrestricted Unrestricted funds funds 2022 2021 £ £ Trading costs Commercial operations in trading subsidiary 3,442,849 1,370,550 3,442,849 1,370,550 Charitable activities 2022 2021 £ £ Depreciation 77,200 51,467 Share of support costs (see note 8) 69,180 70,220 Share of governance costs (see note 8) 4,000 5,676 150,380 127,363 Analysis by fund Unrestricted funds 73,180 75,896 Endowment funds - general 77,200 51,467 150,380 127,363
		1,370,550
		2021 £ 51,467 70,220 5,676
		127,363
		75,896 51,467
		127,363

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CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

8 Support costs

NNDR Insurance Bank charges Subscriptions Service charges Maintenance Sundry Overstatement of rates in prior year Audit fees Legal and professional Analysed between Charitable activities	Support costs Governance costs £ £ 16,652 - 5,536 - 96 - 424 - 68,040 - - - 656 - (22,224) - - 4,000 - - 69,180 4,000 69,180 4,000	2022Support costs Governance costs £ £ £ 16,652 19,050 - 5,536 3,931 - 96 49 - 424 264 - 68,040 45,360 - - 1,566 - 656 - - (22,224) - - 4,000 - 4,000 - - 1,676 73,180 70,220 5,676 73,180 70,220 5,676	2021 £ 19,050 3,931 49 264 45,360 1,566 - - 4,000 1,676
			75,896
			75,896

Governance costs includes payments to the auditors of £4,000 (2021 - £4,000) for audit fees.

9 Employees

The average monthly number of employees during the Period was:

City College Peterborough Foundation City Culture Peterborough Limited Employment costs Wages and salaries Social security costs Other pension costs	2022 2022 Charity Subsidiary £ £ - 1,386,650 - 90,238 - 132,804 - 1,609,692	2022 Number - 124 124 2022 Group £ 1,386,650 90,238 132,804 1,609,692	2021 Number - 138
			138
			2021 Group £ 759,406 45,773 88,415
			893,594

Included in the above wages and salaries costs are redundancy costs totalling £7,385 (2021 - £nil).

There were no employees whose annual remuneration was £60,000 or more.

18 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

10 Directors

None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the Period.

11 Commercial operations in trading subsidiary

The charity has one wholly owned trading subsidiary undertaking, City Culture Peterborough Limited which managed the theatre, arts, heritage, education, library and archive services for Peterborough City Council until 31 March 2022. The company was incorporated on 24 August 2020 and was dormant until 1 October 2020. A summary of its trading results is shown below. Audited accounts have been filed with the Registrar of Companies.

	2022	2021
City Culture Peterborough Limited Profit & Loss Account	£	£
Turnover	940,042	36,202
Cost of sales	(614,356)	(97,317)
Gross profit/(loss)	325,686	(61,115)
Administration expenses	(2,830,875)	(1,270,851)
Other operating income	2,492,652	1,344,503
Operating profit	(12,537)	12,537
Tax on profit	2,382	(2,382)
Profit on ordinary activities	(10,155)	10,155
	2022	2021
City Culture Peterborough Limited Balance Sheet	£	£
Fixed assets	-	12,537
Current assets	131,959	306,035
Current liabilities	(131,859)	(305,935)
Net current assets	100	100
Provision for liabilities	-	(2,382)
Total net assets	100	10,255
Aggregate share capital and reserves	100	10,255

19 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

12 Tangible fixed assets

Group Freehold land and buildings £ Cost At 1 April 2021 4,660,000 Disposals - At 30 March 2022 4,660,000 Depreciation and impairment At 1 April 2021 128,667 Depreciation charged in the Period 77,200 Eliminated in respect of disposals - At 30 March 2022 205,867 Carrying amount At 30 March 2022 4,454,133 At 31 March 2021 4,531,333 Charity Freehold land and buildings £ Cost At 1 April 2021 4,660,000 At 30 March 2022 4,660,000 Depreciation and impairment At 1 April 2021 128,667 Depreciation charged in the Period 77,200 At 30 March 2022 205,867 Carrying amount At 30 March 2022 4,454,133 At 31 March 2021 4,531,333	Computers £ 16,716 (16,716) - 4,179 12,537 (16,716) - - 12,537 Computers £ - - - - - - -	Total £ 4,676,716 (16,716) 4,660,000 132,846 89,737 (16,716) 205,867 4,454,133 4,543,870 Total £ 4,660,000 4,660,000 128,667 77,200 205,867 4,454,133 4,531,333

20 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

13 Fixed asset investments

Group	Investment in
	subsidiary
Cost or valuation
Carrying amount
At 30 March 2022	-
At 31 March 2021	-
Charity	Investment in
	subsidiary
Cost or valuation
At 1 April 2021 & 30 March 2022	100
Carrying amount
At 30 March 2022	100
At 31 March 2021	100

The investment represents a 100% shareholding in City Culture Peterborough Limited, a company incorporated in England and Wales.

For details of the principal activity and results for the year, see note 11.

14 Financial instruments Carrying amount of financial assets Trade debtors Other debtors Amounts due from subsidiary undertakings Bank and cash Measured at cost Fixed asset investments Measured at market value	Group 2022 £ 233,633 2,566 - 506,526 742,725 - -	Charity 2022 £ 174,061 2,566 1,808 434,139 612,574 100 100	Group 2021 £ 112,381 31,115 - 379,575 523,071 - -	Charity 2021 £ 76,700 7,963 3,719 188,225
				276,607
				100
				100

21 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

14 Financial instruments Carrying amount of financial liabilities Trade creditors Accruals and deferred income Other creditors Other taxation and social security Measured at cost 15 Debtors Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 16 Creditors: amounts falling due within one year Other taxation and social security Trade creditors Other creditors Accruals and deferred income 17 Provisions for liabilities Notes Deferred tax liabilities 18	Group 15,276 45,554 191,832 19,789 272,451 2022 Group £ 233,633 - 2,566 5,843 242,042 2022 Group £ 19,789 15,276 191,832 45,554 272,451 2022 Group £ - -	Charity - 4,000 119,644 18,756 142,400 2022 Charity £ 174,061 1,808 2,566 5,843 184,278 2022 Charity £ 18,756 - 119,644 4,000 142,400 2022 Charity £ - -	Group Charity (Continued) 40,337 80,674 183,199 26,225 76,719 - 28,186 - 328,441 106,899 2021 2021 Group Charity £ £ 112,381 76,700 - 3,719 31,115 7,963 60,857 5,005 204,353 93,387 2021 2021 Group Charity £ £ 28,186 - 40,337 - 76,719 - 183,199 26,225 328,441 26,225 2021 2021 Group Charity £ £ 2,382 - 2,382 -	Group Charity (Continued) 40,337 80,674 183,199 26,225 76,719 - 28,186 - 328,441 106,899 2021 2021 Group Charity £ £ 112,381 76,700 - 3,719 31,115 7,963 60,857 5,005 204,353 93,387 2021 2021 Group Charity £ £ 28,186 - 40,337 - 76,719 - 183,199 26,225 328,441 26,225 2021 2021 Group Charity £ £ 2,382 - 2,382 -
				106,899
				2021 Charity £ 76,700 3,719 7,963 5,005
				93,387
				2021 Charity £ - - - 26,225
				26,225
				2021 Charity £ -
				-

22 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

18 Deferred taxation

Deferred tax assets and liabilities are offset where the charity has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

	2022	2022	2021	2021
	Group	Charity	Group	Charity
Balances:	£	£	£	£
Accelerated capital allowances	-	-	-	2,382
				2022
Movements in the Period:				£
Liability at 1 April 2021				2,382
Credit to profit or loss				(2,382)
Liability at 30 March 2022				-

23 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

19 Endowment funds

Group and Charity

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at 1 April 2020 £ Permanent endowments Property fund 4,582,800 4,582,800	Incoming resources £ - -	Movement in funds Resources expended Transfers Revaluations gains and losses Balance at 1 April 2021 £ £ £ £ (51,467) - - 4,531,333 (51,467) - - 4,531,333	Incoming resources £ - -	Movement in funds Resources expended Transfers Revaluations gains and losses £ £ £ (77,200) - - (77,200) - -	Balance at 30 March 2022 £ 4,454,133
					4,454,133

The property fund represents the net book value of the property that was donated by Peterborough City Council. Expenditure relates to depreciation to reduce the asset's useful economic life.

Income generated by this asset is recognised as unrestricted income.

24 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

20 Restricted funds

Group and Charity

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

		Movement		Movement
		in funds		in funds
	Balance at	Incoming	Balance at	Incoming	Balance at
	1 April 2020	resources 1 April 2021		resources	30 March
	£	£	£	£	2022 £
Kingfisher Centre	3,788	-	3,788	-	3,788
Meet & Eat	1,010	-	1,010	-	1,010
College Learner Voice	-	-	-	3,166	3,166
White Ribbon	-	-	-	40	40
	4,798	-	4,798	3,206	8,004

Kingfisher Centre - this relates to funds raised in fundraising activities prior to Day Opportunities becoming part of City College Peterborough. The funds are for the purposes of purchasing specialist equipment for people we support at the Kingfisher Centre.

Meet & Eat - this relates to funds raised and expended for regular social dining events as part of the commUNITY Meet & Eat initiative.

College Learner Voice - this was a donation received to be used for seating and adults.

White Ribbon - this was a donation to be used for courses.

25 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

21 Analysis of net assets between funds

Group

Unrestricted funds Restricted funds Endowment funds 2022 2022 2022 £ £ £ Fund balances at 30 March 2022 are represented by: Tangible assets - - 4,454,133 Current assets/(liabilities) 468,113 8,004 - Provisions - - - 468,113 8,004 4,454,133 Charity Unrestricted funds Restricted funds Endowment funds 2022 2022 2022 £ £ £ Fund balances at 30 March 2022 are represented by: Tangible assets - - 4,454,133 Investments 100 - - Current assets/(liabilities) 468,013 8,004 - 468,113 8,004 4,454,133	Total Unrestricted funds 2022 2021 £ £ 4,454,133 12,537 476,117 250,689 - (2,382) 4,930,250 260,844 Total Unrestricted funds 2022 2021 £ £ 4,454,133 - 100 100 476,017 250,589 4,930,250 250,689	Restricted funds Endowment funds 2021 2021 £ £ - 4,531,333 4,798 - - - 4,798 4,531,333 Restricted funds Endowment funds 2021 2021 £ £ - 4,531,333 - - 4,798 - 4,798 4,531,333	Total 2021 £ 4,543,870 255,487 (2,382) 4,796,975 Total 2021 £ 4,531,333 100 255,387 4,786,820

26 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

22 Related party transactions

During the period the charity recharged expenditure of £15,892 (2021 - £3,819) to its subsidiary, City Culture Peterborough Limited. At the period end £1,808 (2021 - £3,719) was due from City Culture Peterborough Limited.

23 Control

No one individual has overall control of the charitable company.

Peterborough City Council has significant influence over the activities of the subsidiary, City Culture Peterborough Limited. The Council agreed to fund the trading deficits incurred by the company. During the period City Culture Peterborough Limited received £2,203,952 (2021 - £1,001,877) for re-imbursement of costs incurred in excess of income received from third party trading.

24 Cash generated from operations Surplus for the Period Adjustments for: Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors (Decrease)/increase in creditors Increase/(decrease) in provisions Cash generated from operations	2022 2021 £ £ 133,275 17,029 89,737 55,646 (37,689) (173,567) (55,990) 303,878 (2,382) 2,382 126,951 205,368

25 Analysis of changes in net funds

The charity had no debt during the year.

27 -

Charity registration number 1154976

Company registration number 08762956 (England and Wales)

CITY COLLEGE PETERBOROUGH FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 MARCH 2022

CITY COLLEGE PETERBOROUGH FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Directors	P Carrington
	T Hennessy
	C Higgins
	L Hull
	J Procter
Charity number	1154976
Company number	08762956
Registered office	City College Peterborough
	Brook Street
	Peterborough
	United Kingdom
	PE1 1TU
Auditor	Azets Audit Services
	Ruthlyn House
	90 Lincoln Road
	Peterborough
	United Kingdom
	PE1 2SP
Bankers	CAF Bank Limited
	PO Box 289
	West Malling
	Kent
	United Kingdom
	ME19 4TA

CITY COLLEGE PETERBOROUGH FOUNDATION

	Page
Directors' report	1 - 3
Statement of directors' responsibilities	4
Independent auditor's report	5 - 7
Statement of financial activities	8 - 9
Summary income and expenditure account	10
Balance sheet	12 - 13
Statement of cash flows	12
Notes to the financial statements	13 - 27

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 30 MARCH 2022

The directors present their annual report and financial statements for the Period ended 30 March 2022.

Objectives and activities

The charity's purposes as set out in the objects contained in the company's memorandum of association are to:

1) to advance education;

2) to advance health;
3) to relieve unemployment
4) to relieve poverty;

6) the promotion of community participation in healthy recreation in particular by the provision of facilities for the playing of sports and related activities;

The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Financial review

The directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Structure, governance and management

The charity is a company limited by guarantee and is governed by its Articles of Association.

The directors who served during the Period and up to the date of signature of the financial statements were: P Carrington

T Hennessy C Higgins L Hull J Procter

None of the directors has any beneficial interest in the company. All of the directors are members of the company and guarantee to contribute £1 in the event of a winding up.

History and activity

In August 2015 City College Peterborough took over the management of the Peterborough Day Opportunities Service providing day and employment support to adults under 65 with a disability.

The charity does not currently have any employees in its service.

City Culture Peterborough is a separate company limited by shares where the charity is the sole shareholder.

The 3 directors of the company are also trustees of the charity and the charity has consolidated the accounts of City Culture Peterborough Limited in this reporting period.

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

The directors' report was approved by the Board of Directors.

..............................

P Carrington Director Dated: .........................

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF DIRECTORS' RESPONSIBILITIES

FOR THE PERIOD ENDED 30 MARCH 2022

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

Opinion

In our opinion, the financial statements:

give a true and fair view of the state of the Group and Parent Charitable Company affairs as at 30 March 2022 and of its incoming resources and application of resources, for the Period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

Conclusions relating to going concern

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

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

Other matter - going concern of the subsidiary company

Other information

We have nothing to report in this regard.

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the directors' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

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

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Use of our report

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services

Chartered Accountants Statutory Auditor

......................... Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 30 MARCH 2022

Current financial year Unrestricted Restricted Endowment funds funds funds 2022 2022 2022 Notes £ £ £ Income from: Donations and legacies 3 444 3,206 - Charitable activities 4 290,160 - - Other trading activities 5 3,432,694 - - Total income 3,723,298 3,206 - Expenditure on: Raising funds 6 3,442,849 - - Charitable activities 7 73,180 - 77,200 Total resources expended 3,516,029 - 77,200 Net movement in funds 207,269 3,206 (77,200) Fund balances at 1 April 2021 260,844 4,798 4,531,333 Fund balances at 30 March 2022 468,113 8,004 4,454,133	Total 2022 £ 3,650 290,160 3,432,694 3,726,504 3,442,849 150,380 3,593,229 133,275 4,796,975 4,930,250	Total 2021 £ 674 133,563 1,380,705
		1,514,942
		1,370,550
		127,363
		1,497,913
		17,029 4,779,946
		4,796,975

The statement of financial activities includes all gains and losses recognised in the Period.

All income and expenditure derive from continuing activities.

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Prior financial year

Unrestricted Restricted Endowment funds funds funds 2021 2021 2021 Notes £ £ £ Income from: Donations and legacies 3 674 - - Charitable activities 4 133,563 - - Other trading activities 5 1,380,705 - - Total income 1,514,942 - - Expenditure on: Raising funds 6 1,370,550 - - Charitable activities 7 75,896 - 51,467 Total resources expended 1,446,446 - 51,467 Net movement in funds 68,496 - (51,467) Fund balances at 1 August 2020 192,348 4,798 4,582,800 Fund balances at 31 March 2021 260,844 4,798 4,531,333	Total 2021 £ 674 133,563 1,380,705
	1,514,942
	1,370,550
	127,363
	1,497,913
	17,029 4,779,946
	4,796,975

The statement of financial activities includes all gains and losses recognised in the Period.

All income and expenditure derive from continuing activities.

CITY COLLEGE PETERBOROUGH FOUNDATION

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 MARCH 2022

All income funds Period ended 30 March 2022 £ Gross income 3,726,504 Total expenditure from income funds 3,516,029 Net income for the Period 210,475	Period ended 31 March 2021 £ 1,514,942 1,446,446
	68,496

10 -

CITY COLLEGE PETERBOROUGH FOUNDATION

BALANCE SHEETS

AS AT 30 MARCH 2022

Notes Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Provisions for liabilities 17 Net assets Capital funds Endowment funds - general 19 Income funds Restricted funds 20 General unrestricted funds	Group 2022 £ 4,454,133 - 4,454,133 242,042 506,526 748,568 (272,451) 476,117 4,930,250 - 4,930,250 4,454,133 8,004 468,113 4,930,250	Charity 2022 £ 4,454,133 100 4,454,233 184,278 434,139 618,417 (142,400) 476,017 4,930,250 - 4,930,250 4,454,133 8,004 468,113 4,930,250	Group 2021 £ 4,543,870 - 4,543,870 204,353 379,575 583,928 (328,441) 255,487 4,799,357 (2,382) 4,796,975 4,531,333 4,798 260,844 4,796,975	Charity 2021 £ 4,531,333 100 4,531,433 93,387 188,225 281,612 (26,225) 255,387 4,786,820 - 4,786,820 4,531,333 4,798 250,589 4,786,820

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on ......................... and are signed on its behalf by:

..............................

P Carrington

Trustee Company Registration No. 08762956

11 -

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 MARCH 2022

Notes Cash flows from operating activities Cash generated from operations 24 Investing activities Purchase of tangible fixed assets Net cash used in investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of Period Cash and cash equivalents at end of Period	2022 £ -	£ 126,951 - - 126,951 379,575 506,526	2021 £ (16,716)	£ 205,368 (16,716) - 188,652 190,923 379,575

12 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

Charity information

1.1 Accounting convention

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Group financial statements

1.3 Going concern

In respect of the subsidiary company only:

All activities of the company were transferred out on 1 April 2022 and the company ceased trading. All debtors and creditors balances at the period end are in the process of being settled.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.5 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

13 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

(Continued)

1.6 Expenditure

All resources expended are inclusive of irrecoverable VAT.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings 2% p.a. straight line Computers 25% p.a. straight line

Freehold land is not depreciated.

1.8 Impairment of fixed assets

14 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial liabilities

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

15 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

2 Critical accounting estimates and judgements

(Continued)

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of property

The property that was donated in the year ended 31 March 2020 has been included at a valuation calculated by Barker Storey Matthews, an independent valuer.

3 Donations and legacies

Unrestricted Restricted funds funds 2022 2022 £ £ Donations and gifts 444 3,206 Charitable activities Charitable rental income	Total Unrestricted funds 2022 2021 £ £ 3,650 674 2022 2021 £ £ 290,160 133,563	Total Unrestricted funds 2022 2021 £ £ 3,650 674 2022 2021 £ £ 290,160 133,563
		2021 £ 133,563

4 Charitable activities

5 Other trading activities

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
	£	£
Commercial operations in trading subsidiary	3,432,694	1,380,705

16 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

6 7	Raising funds Unrestricted Unrestricted funds funds 2022 2021 £ £ Trading costs Commercial operations in trading subsidiary 3,442,849 1,370,550 3,442,849 1,370,550 Charitable activities 2022 2021 £ £ Depreciation 77,200 51,467 Share of support costs (see note 8) 69,180 70,220 Share of governance costs (see note 8) 4,000 5,676 150,380 127,363 Analysis by fund Unrestricted funds 73,180 75,896 Endowment funds - general 77,200 51,467 150,380 127,363	Raising funds Unrestricted Unrestricted funds funds 2022 2021 £ £ Trading costs Commercial operations in trading subsidiary 3,442,849 1,370,550 3,442,849 1,370,550 Charitable activities 2022 2021 £ £ Depreciation 77,200 51,467 Share of support costs (see note 8) 69,180 70,220 Share of governance costs (see note 8) 4,000 5,676 150,380 127,363 Analysis by fund Unrestricted funds 73,180 75,896 Endowment funds - general 77,200 51,467 150,380 127,363
		1,370,550
		2021 £ 51,467 70,220 5,676
		127,363
		75,896 51,467
		127,363

17 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

8 Support costs

NNDR Insurance Bank charges Subscriptions Service charges Maintenance Sundry Overstatement of rates in prior year Audit fees Legal and professional Analysed between Charitable activities	Support costs Governance costs £ £ 16,652 - 5,536 - 96 - 424 - 68,040 - - - 656 - (22,224) - - 4,000 - - 69,180 4,000 69,180 4,000	2022Support costs Governance costs £ £ £ 16,652 19,050 - 5,536 3,931 - 96 49 - 424 264 - 68,040 45,360 - - 1,566 - 656 - - (22,224) - - 4,000 - 4,000 - - 1,676 73,180 70,220 5,676 73,180 70,220 5,676	2021 £ 19,050 3,931 49 264 45,360 1,566 - - 4,000 1,676
			75,896
			75,896

Governance costs includes payments to the auditors of £4,000 (2021 - £4,000) for audit fees.

9 Employees

The average monthly number of employees during the Period was:

City College Peterborough Foundation City Culture Peterborough Limited Employment costs Wages and salaries Social security costs Other pension costs	2022 2022 Charity Subsidiary £ £ - 1,386,650 - 90,238 - 132,804 - 1,609,692	2022 Number - 124 124 2022 Group £ 1,386,650 90,238 132,804 1,609,692	2021 Number - 138
			138
			2021 Group £ 759,406 45,773 88,415
			893,594

Included in the above wages and salaries costs are redundancy costs totalling £7,385 (2021 - £nil).

There were no employees whose annual remuneration was £60,000 or more.

18 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

10 Directors

None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the Period.

11 Commercial operations in trading subsidiary

	2022	2021
City Culture Peterborough Limited Profit & Loss Account	£	£
Turnover	940,042	36,202
Cost of sales	(614,356)	(97,317)
Gross profit/(loss)	325,686	(61,115)
Administration expenses	(2,830,875)	(1,270,851)
Other operating income	2,492,652	1,344,503
Operating profit	(12,537)	12,537
Tax on profit	2,382	(2,382)
Profit on ordinary activities	(10,155)	10,155
	2022	2021
City Culture Peterborough Limited Balance Sheet	£	£
Fixed assets	-	12,537
Current assets	131,959	306,035
Current liabilities	(131,859)	(305,935)
Net current assets	100	100
Provision for liabilities	-	(2,382)
Total net assets	100	10,255
Aggregate share capital and reserves	100	10,255

19 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

12 Tangible fixed assets

Group Freehold land and buildings £ Cost At 1 April 2021 4,660,000 Disposals - At 30 March 2022 4,660,000 Depreciation and impairment At 1 April 2021 128,667 Depreciation charged in the Period 77,200 Eliminated in respect of disposals - At 30 March 2022 205,867 Carrying amount At 30 March 2022 4,454,133 At 31 March 2021 4,531,333 Charity Freehold land and buildings £ Cost At 1 April 2021 4,660,000 At 30 March 2022 4,660,000 Depreciation and impairment At 1 April 2021 128,667 Depreciation charged in the Period 77,200 At 30 March 2022 205,867 Carrying amount At 30 March 2022 4,454,133 At 31 March 2021 4,531,333	Computers £ 16,716 (16,716) - 4,179 12,537 (16,716) - - 12,537 Computers £ - - - - - - -	Total £ 4,676,716 (16,716) 4,660,000 132,846 89,737 (16,716) 205,867 4,454,133 4,543,870 Total £ 4,660,000 4,660,000 128,667 77,200 205,867 4,454,133 4,531,333

20 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

13 Fixed asset investments

Group	Investment in
	subsidiary
Cost or valuation
Carrying amount
At 30 March 2022	-
At 31 March 2021	-
Charity	Investment in
	subsidiary
Cost or valuation
At 1 April 2021 & 30 March 2022	100
Carrying amount
At 30 March 2022	100
At 31 March 2021	100

The investment represents a 100% shareholding in City Culture Peterborough Limited, a company incorporated in England and Wales.

For details of the principal activity and results for the year, see note 11.

14 Financial instruments Carrying amount of financial assets Trade debtors Other debtors Amounts due from subsidiary undertakings Bank and cash Measured at cost Fixed asset investments Measured at market value	Group 2022 £ 233,633 2,566 - 506,526 742,725 - -	Charity 2022 £ 174,061 2,566 1,808 434,139 612,574 100 100	Group 2021 £ 112,381 31,115 - 379,575 523,071 - -	Charity 2021 £ 76,700 7,963 3,719 188,225
				276,607
				100
				100

21 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

14 Financial instruments Carrying amount of financial liabilities Trade creditors Accruals and deferred income Other creditors Other taxation and social security Measured at cost 15 Debtors Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 16 Creditors: amounts falling due within one year Other taxation and social security Trade creditors Other creditors Accruals and deferred income 17 Provisions for liabilities Notes Deferred tax liabilities 18	Group 15,276 45,554 191,832 19,789 272,451 2022 Group £ 233,633 - 2,566 5,843 242,042 2022 Group £ 19,789 15,276 191,832 45,554 272,451 2022 Group £ - -	Charity - 4,000 119,644 18,756 142,400 2022 Charity £ 174,061 1,808 2,566 5,843 184,278 2022 Charity £ 18,756 - 119,644 4,000 142,400 2022 Charity £ - -	Group Charity (Continued) 40,337 80,674 183,199 26,225 76,719 - 28,186 - 328,441 106,899 2021 2021 Group Charity £ £ 112,381 76,700 - 3,719 31,115 7,963 60,857 5,005 204,353 93,387 2021 2021 Group Charity £ £ 28,186 - 40,337 - 76,719 - 183,199 26,225 328,441 26,225 2021 2021 Group Charity £ £ 2,382 - 2,382 -	Group Charity (Continued) 40,337 80,674 183,199 26,225 76,719 - 28,186 - 328,441 106,899 2021 2021 Group Charity £ £ 112,381 76,700 - 3,719 31,115 7,963 60,857 5,005 204,353 93,387 2021 2021 Group Charity £ £ 28,186 - 40,337 - 76,719 - 183,199 26,225 328,441 26,225 2021 2021 Group Charity £ £ 2,382 - 2,382 -
				106,899
				2021 Charity £ 76,700 3,719 7,963 5,005
				93,387
				2021 Charity £ - - - 26,225
				26,225
				2021 Charity £ -
				-

22 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

18 Deferred taxation

	2022	2022	2021	2021
	Group	Charity	Group	Charity
Balances:	£	£	£	£
Accelerated capital allowances	-	-	-	2,382
				2022
Movements in the Period:				£
Liability at 1 April 2021				2,382
Credit to profit or loss				(2,382)
Liability at 30 March 2022				-

23 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

19 Endowment funds

Group and Charity

Balance at 1 April 2020 £ Permanent endowments Property fund 4,582,800 4,582,800	Incoming resources £ - -	Movement in funds Resources expended Transfers Revaluations gains and losses Balance at 1 April 2021 £ £ £ £ (51,467) - - 4,531,333 (51,467) - - 4,531,333	Incoming resources £ - -	Movement in funds Resources expended Transfers Revaluations gains and losses £ £ £ (77,200) - - (77,200) - -	Balance at 30 March 2022 £ 4,454,133
					4,454,133

The property fund represents the net book value of the property that was donated by Peterborough City Council. Expenditure relates to depreciation to reduce the asset's useful economic life.

Income generated by this asset is recognised as unrestricted income.

24 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

20 Restricted funds

Group and Charity

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

		Movement		Movement
		in funds		in funds
	Balance at	Incoming	Balance at	Incoming	Balance at
	1 April 2020	resources 1 April 2021		resources	30 March
	£	£	£	£	2022 £
Kingfisher Centre	3,788	-	3,788	-	3,788
Meet & Eat	1,010	-	1,010	-	1,010
College Learner Voice	-	-	-	3,166	3,166
White Ribbon	-	-	-	40	40
	4,798	-	4,798	3,206	8,004

Meet & Eat - this relates to funds raised and expended for regular social dining events as part of the commUNITY Meet & Eat initiative.

College Learner Voice - this was a donation received to be used for seating and adults.

White Ribbon - this was a donation to be used for courses.

25 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

21 Analysis of net assets between funds

Group

Unrestricted funds Restricted funds Endowment funds 2022 2022 2022 £ £ £ Fund balances at 30 March 2022 are represented by: Tangible assets - - 4,454,133 Current assets/(liabilities) 468,113 8,004 - Provisions - - - 468,113 8,004 4,454,133 Charity Unrestricted funds Restricted funds Endowment funds 2022 2022 2022 £ £ £ Fund balances at 30 March 2022 are represented by: Tangible assets - - 4,454,133 Investments 100 - - Current assets/(liabilities) 468,013 8,004 - 468,113 8,004 4,454,133	Total Unrestricted funds 2022 2021 £ £ 4,454,133 12,537 476,117 250,689 - (2,382) 4,930,250 260,844 Total Unrestricted funds 2022 2021 £ £ 4,454,133 - 100 100 476,017 250,589 4,930,250 250,689	Restricted funds Endowment funds 2021 2021 £ £ - 4,531,333 4,798 - - - 4,798 4,531,333 Restricted funds Endowment funds 2021 2021 £ £ - 4,531,333 - - 4,798 - 4,798 4,531,333	Total 2021 £ 4,543,870 255,487 (2,382) 4,796,975 Total 2021 £ 4,531,333 100 255,387 4,786,820

26 -

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

22 Related party transactions

23 Control

No one individual has overall control of the charitable company.

24 Cash generated from operations Surplus for the Period Adjustments for: Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors (Decrease)/increase in creditors Increase/(decrease) in provisions Cash generated from operations	2022 2021 £ £ 133,275 17,029 89,737 55,646 (37,689) (173,567) (55,990) 303,878 (2,382) 2,382 126,951 205,368

25 Analysis of changes in net funds

The charity had no debt during the year.

27 -

Audit Findings

City College Peterborough Foundation Period ended 31 March 2022

Audit Findings | City College Peterborough Foundation | 31 March 2022

The Directors City College Peterborough Foundation City College Peterborough Brook Street Peterborough PE1 1TU

6 March 2023

Dear Sirs

City College Peterborough Foundation Audit findings for the period ended 31 March 2022

This Audit Findings report highlights the significant findings arising from the audit for the benefit of those charged with governance. We appreciate that you may be aware of some of the matters contained in this report, however as required by International Standard on Auditing (UK) 260 we are communicating them to you formally.

As auditors we are responsible for performing the audit, in accordance with International Standards on Auditing (UK) (ISAs (UK)), which is directed towards forming and expressing an opinion on the financial statements that have been prepared on behalf of management with the oversight of those charged with governance. The audit of the charitable company’s financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. The contents of this report relate only to those matters which came to our attention during the conduct of our normal audit procedures which are designed primarily for the purpose of expressing our opinion on the financial statements. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose.

We would like to take this opportunity to record our appreciation for the kind assistance provided by your team during our audit. If we can be of any further assistance, please contact Tracey Richardson or Caroline Gillis.

Yours sincerely,

Azets

Azets Audit Services

Audit Findings | City College Peterborough Foundation | 31 March 2022

Executive summary .......................................................................................................................................................................................................................... 2 Materiality ........................................................................................................................................................................................................................................ 3 Significant findings ........................................................................................................................................................................................................................... 4 Other findings .................................................................................................................................................................................................................................. 5 Going concern .................................................................................................................................................................................................................................. 6 Accounting policies, judgements, estimates and disclosures .......................................................................................................................................................... 7 Other communication requirements ............................................................................................................................................................................................... 8 Misstatements ................................................................................................................................................................................................................................. 9 Internal controls ............................................................................................................................................................................................................................. 10 Independence ................................................................................................................................................................................................................................ 11

Audit Findings | City College Peterborough Foundation | 31 March 2022

Executive summary

Audit overview

This table summarises the key findings from the statutory audit of City College Peterborough Foundation for the period ended 31 March 2021 for those charged with governance.

Audit opinion	•	We do not propose any modifications to our audit opinion which is unqualified	We do not propose any modifications to our audit opinion which is unqualified	We do not propose any modifications to our audit opinion which is unqualified
	•	We have included an emphasis of matter paragraph about the financial statements of the subsidiary company not being prepared on the going concern basis in the audit report.
	•	Our audit work is substantially complete and there are currently no matters which would require
		modificationofourauditreport.
Key findings on audit risks and other matters	•	We have reported our audit findings on pages 3 - 11 and audit adjustments on page 9.
Audit adjustments	•	We are required to communicate all potential adjustments, other than those considered to be
		clearly trivial, to management and to request that management corrects them. Details of the audit adjustments and potential adjustments are included on page 9.
	•	The aggregate impact of	unadjusted misstatements on the statement of financial activities, were
		they to be processed,would be £nil. Details ofadjustedmisstatements areincluded onpage				9.
Accounting systems and internal controls	•	We have applied our risk-based methodology to your audit. This approach requires us to
		document, evaluate and assess your business processes and internal controls relating to financial reporting process.			the
	•	Our audit is not designed to test all internal controls or identify all areas of control weakness.
		However, where, as part	of our	testing, we identify any control weaknesses, we have reported
		these to you onpage10.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Materiality

Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report to those charged with governance and management any uncorrected misstatements of lower value errors to the extent that our audit identifies these.

Under ISA (UK) 260 ‘Communication with those charged with governance’, we are obliged to report uncorrected omissions or misstatements other than those which are ‘clearly trivial’ to those charged with governance. ISA (UK) 260 defines ‘clearly trivial’ as matters that are clearly inconsequential, whether taken individually or in aggregate and whether judged by any quantitative or qualitative criteria.

An omission or misstatement is regarded as material if it would reasonably influence the users of the financial statements. The assessment of what is material is a matter of professional judgement and is affected by our assessment of the risk profile of the business and the needs of the users.

Our assessment of materiality for this period ended 31 March 2022 was calculated as follows.

Threshold	Value	Basis	Explanation
	£
Overall materiality	5,812	Standard Azets	Accounts materially misstated where
		calculation	total errors exceed this value.
Performance materiality	4,650	Standard Azets	Work performed to capture individual
		calculation	errors at this level.
Trivial threshold	291	Standard Azets	All errors greater than this are reported.
		calculation

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Significant findings

Findings related to significant risks

Significant risks are defined by professional standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we consider the nature of the risk, the potential magnitude of misstatement, and its likelihood. Significant risks are those risks that have a higher risk of material misstatement.

Risk	Audit	approach	Audit findings and conclusion
Fraud in revenue recognition	Response:		No issues identified.
Under ISA (UK) 240 there is a
presumed risk of fraud in relation to	•	Review and testing of revenue
revenue recognition. The presumption		recognition policies.
is that the charitable company could	•	Detailed substantive testing on
adopt accounting policies or recognise		material revenue streams.
income in such a way as to lead to a
material misstatement in the reported
revenue position.
Management override of controls	Response:		No issues identified.
Under ISA (UK) 240 there is a
presumed risk that management and	•	Review of accounting estimates,
trustees have the ability to process		judgements and decisions made by
transactions or make adjustments to		management.
financial records outside of the normal
financial control processes. Such
transactions could lead to a material
misstatement in the financial
statements.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Other findings

Other identified risks	Audit	approach		Audit findings and conclusion
Going concern	Response:			The subsidiary company stopped trading on 31 March 2022
Under ISA 570 there is a presumed risk of the entity’s going concern.	•	Reserves at the year end will reviewed for reasonableness.	be	and therefore the financial statements for that company have not been prepared on the going concern basis.
	•	Future commitments will be reviewed		An emphasis of matter paragraph relating to going concern in
		to ensure sufficient reserves to		the subsidiary company has been included in the audit report.
		cover.
Related parties	Response:			No issues identified.
Under ISA 550 there is a presumed	•	Discussions held regarding who is a
risk that related party transactions may		related party.
be inaccurate or understated within the	•	Review of nominal ledger for any
financial statements.		potential related party transactions.

There were no changes to our audit plan previously communicated to you.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Going concern

As auditors, we are required to “obtain sufficient appropriate audit evidence about the appropriateness of management's use of the going concern assumption in the preparation and presentation of the financial statements and to conclude whether there is a material uncertainty about the entity's ability to continue as a going concern” (ISA (UK) 570).

Management’s assessment ofgoing concern	Audit workperformed	Audit findings and conclusion
Management have assessed that the charitable company is a	We are not expecting any material changes in	We concur with management’s assessment
going concern.	operations and there have been no key	that it is appropriate to continue to adopt the
	uncertainties identified which could give rise to	going concern basis for the charitable
	material uncertainties.	company.
	In addition, we have reviewed the disclosures	The subsidiary company stopped trading on
	set out in note 1.3.	31 March 2022 and therefore the financial
		statements for that company have not been
		prepared on the going concern basis.
		An emphasis of matter paragraph relating to
		going concern in the subsidiary company has
		been included in the audit report.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Accounting policies, judgements, estimates and disclosures

Accounting policies

The accounting policies used in preparing the financial statements are unchanged from the previous year.

Judgements and estimates

Judgements and estimates used in the financial statements appear appropriate.

Disclosures

Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the charitable company.

Conclusion

We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the charitable company.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Other communication requirements

Fraud or suspected fraud

We have not been made aware of any other incidents in the period and no other issues have been identified during the course of our audit.

Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. In the event that the trustees wish to obtain enhanced assurance with regard to the effectiveness of internal control in preventing and detecting fraud we should be happy to provide additional services.

Non-compliance with laws and regulations

We are not aware of any significant incidences of non-compliance.

There are also may other laws and regulations relating to health and safety as well as human resources generally and industry specific requirements. We are not aware of any significant incidences of non- compliance.

Written representations

We enclose the final draft letter of representation alongside this document which we will request the Board to sign at the same time as the financial statements are approved.

Related parties

We are not aware of any related party transactions which have not been disclosed.

Confirmations from third parties

All requested confirmations have been received.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Misstatements

We are required to inform you of any significant misstatements within the financial statements presented for audit that have been discovered during the course of our audit. Details of items corrected following discussions with you and your team are as below.

Corrected misstatements

No	Detail	Statement of	Statement of	Balance Sheet	Balance Sheet	Surplus/(deficit)
		Financial Activities				effect
		Dr	Cr	Dr	Cr
		£	£	£	£	£
Surplus/(deficit) as presentedforaudit						118,001

1	Removerates accrual nolonger required		22,224	22,224		22,224
2	Unspent donationsmovedfromcreditors toincome		3,206	3,206		3,206

Surplus/(deficit) peraudited accounts						143,431

Uncorrected misstatements

There are no uncorrected misstatements.

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Internal controls

The purpose of an audit is to express an opinion on the financial statements. As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. However, this work was not for the purpose of expressing an opinion on the effectiveness of internal controls.

We are required to report to you in writing, significant deficiencies in internal controls that we have identified during the audit. These matters are limited to those which we have concluded are of sufficient importance to merit being reported to you.

Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we have reported these to you below.

Area Observation	Implication Recommendation Management response
VAT account There are differences on the VAT account throughout the year and penalties have been charged duringtheyear.	VAT could be incorrectly stated and there could be additional VAT repayable or reclaimable from HMRC. Ensure that on a quarterly basis a VAT reconciliation is undertaken and any differences investigated and corrected and any underpayments are made to HMRC.

Key: Significant deficiency in internal control Other deficiency in internal control Other observations

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Audit Findings | City College Peterborough Foundation | 31 March 2022

Independence

In accordance with our profession’s ethical guidance and further to our letter to you dated 22 April 2021 confirming audit planning arrangements there are no further matters to bring to your attention in relation to Integrity, Objectivity and Independence.

This report is prepared solely for the confidential use of City College Peterborough Foundation and solely for the purpose of the audit for the period ended 31 March 2022. It may not be relied upon by City College Peterborough Foundation for any other purpose whatsoever. This report must not be recited or referred to in whole or in part in any other document. This report must not be made available, copied or recited to any other party without our express written permission. Azets neither owes nor accepts any duty to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by their reliance on this report.

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CITY COLLEGE PETERBOROUGH FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

CITY COLLEGE PETERBOROUGH FOUNDATION

CONTENTS

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE PERIOD ENDED 30 MARCH 2022

Objectives and activities

1) to advance education;

Achievements and performance

Financial review

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Structure, governance and management

History and activity

The charity does not currently have any employees in its service.

CITY COLLEGE PETERBOROUGH FOUNDATION

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Auditor

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF DIRECTORS' RESPONSIBILITIES

FOR THE PERIOD ENDED 30 MARCH 2022

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

Opinion

In our opinion, the financial statements:

Basis for opinion

Conclusions relating to going concern

Other matter - going concern of the subsidiary company

Other information

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

Matters on which we are required to report by exception

Responsibilities of directors

Auditor's responsibilities for the audit of the financial statements

CITY COLLEGE PETERBOROUGH FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF CITY COLLEGE PETERBOROUGH FOUNDATION

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

Use of our report

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services

Chartered Accountants Statutory Auditor

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 30 MARCH 2022

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

Prior financial year

CITY COLLEGE PETERBOROUGH FOUNDATION

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 MARCH 2022

CITY COLLEGE PETERBOROUGH FOUNDATION

BALANCE SHEETS

AS AT 30 MARCH 2022

CITY COLLEGE PETERBOROUGH FOUNDATION

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 MARCH 2022

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

Charity information

1.1 Accounting convention

1.2 Group financial statements

1.3 Going concern

1.4 Charitable funds

1.5 Income

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

1.6 Expenditure

1.7 Tangible fixed assets

1.8 Impairment of fixed assets

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

1.10 Financial instruments

Basic financial assets

Basic financial liabilities

Derecognition of financial liabilities

2 Critical accounting estimates and judgements

CITY COLLEGE PETERBOROUGH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 MARCH 2022