Charity registration number: 1162957
The Career Colleges Trust CIO
Annual Report and Financial Statements for the Year Ended 31 August 2020
KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
The Career Colleges Trust CIO
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 7 |
| Independent Examiner's Report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Financial Statements | 11 to 15 |
The Career Colleges Trust CIO
Reference and Administrative Details Trustees Ms C P Bosworth Mr D B Coombes Mr G R Findlay Ms R Gilbert Ms R Hennigan Ms J A Lloyd Principal Office SBS House Marshes End Upton Road Poole Dorset BH17 7AG Charity Registration Number 1162957 Bankers Co-op Bank 1 St Peters Square Stockport Greater Manchester SK1 1NX Independent Examiner KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
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The Career Colleges Trust CIO
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2020.
Trustees
Lord K W Baker (resigned 15 June 2020)
Ms C P Bosworth (appointed 15 June 2020)
City and Guilds of London Institute (resigned 3 October 2019)
Mr D B Coombes
Ms P Y Daniyan (resigned 15 June 2020)
Mr G R Findlay (appointed 15 June 2020) Ms R Gilbert (appointed 15 June 2020) Ms R Hennigan (appointed 18 November 2020)
Innovate Awarding (resigned 15 June 2020)
Ms J A Lloyd (appointed 15 June 2020)
Pearson Education Limited (resigned 15 June 2020)
Objectives and activities
Objects and aims
The objects of the charity are as follows:
To advance education for the public benefit by:
(a) assisting in the establishment of colleges for 14-18 year olds for the provision of vocationally-focused programmes of study (Career Colleges);
(b) advancing the efficiency and effectiveness of education in Career Colleges by the provision of educational support services.
Objectives, strategies and activities
The principal activity of the charity is the provision of education support services and improve the career prospects of young people, with a clear focus in sectors with acute skills shortages and major growth, notably: Health and care
Digital technology
Modern methods of construction and built environment-related professions Hospitality and catering
Advanced manufacturing and engineering
Professional services as a cross cutting theme focusing on development of technical skills
Career Colleges help 14-19 year olds take the next step to a fulfilling career by equipping them with the skills and experience they need to succeed. This innovative concept brings together employers and Further Education (FE) colleges to increase the range and choice of vocational/ professional training options for young people; while at the same time, addressing the growing skills gaps many businesses are facing.
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The Career Colleges Trust CIO
Trustees' Report
The Career College model is based on international educational research and evidence of a European education model, which demonstrates the benefit of engaging young people in vocational learning and education at 14. Research evidence is published by many organisations, including the Edge Foundation, Cambridge University and the Institute of Education, and largely draws on the education systems in Demark, Germany and Switzerland. The model also draws on some lessons from American Career Colleges, notable the Food and Finance School in New York.
The concept of Career Colleges in the UK has been developed by the charity itself (the Career Colleges Trust - founded by The Lord Baker in 2013) researching good practice in work experience, careers education, delivery or maths, English and science, effective use of learning technology and enterprise education and bring it together to form one complete vocational learning package for 14-19 learners. The model is further enhanced by employer links and is designed to provide an outstanding learning experience, equipping young people with the right knowledge and skills to ensure they enter the market 'work-ready', which, at a time of high youth unemployment, is a critical factor. OfSTED inspectors have been consulted in the process of developing the model and have joined visits and provided positive feedback on the Career College model.
Career Colleges are unique and innovative - they have:
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Curriculum designed by employers, for employment. Students get involved in industry projects and develop enterprise and communication skills, to prepare them for work and life.
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Carefully designed study programmes, which incorporate core academic elements with highly practical vocational and technical education.
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Excellent progression pathways including higher level apprenticeships, University and fulfilling employment. 4. Specialist vocational subjects, which are linked to regional and national labour market needs and therefore many job opportunities.
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Employers partners who are involved with both the design and delivery of each Career College's innovative curriculum.
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Extended business hours for students to mirror the world of work.
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Career College Boards which are accountable to the governing body of the FE College or learning provider. 8. A minimum of 40% of board members of the Career College, who are local/regional employers for the relevant sector.
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Extended curriculum designed to develop wider employability and digital skills required for sustainable employment in the digital economy.
Each College has a distinct way of working and as such, much of the delivery and an element of unique local factors will influence the model. However, all Career Colleges are underpinned with our core charitable values (e.g. may not operate for profit, accessible to all), CPD and commitment to effectively engage learners in our eight key areas, as per our specifications for them. This is a framework, not a prescription. For example, the best practice in delivery of maths will be different for a Construction Career College, compared to a Hospitality and Catering Career College. The Career College framework provides that maths must be applied to the industry the Career College services, in order to demonstrate the relevance of maths to work and life, as well as provide learners with the opportunity to complete the maths GCSE (with any awarding body recognised in the UK).
The Career Colleges Trust has developed a model, which places specific mandatory requirements on its Colleges, to ensure the high standard and quality of the Career Colleges brand is upheld and ensuring that members are all meeting the expected level of excellence. By becoming a Career College, Colleges will benefit from an effective and high-quality brand, synonymous with providing excellent vocational education for 14-19 year olds.
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The Career Colleges Trust CIO
Trustees' Report
A Career College license to practice is granted based on the College meeting clear criteria. Fees are paid as a contribution towards support services, CPD and resources, which the College agrees are required to meet the standards expected of the Trust. Fees reduce as the College builds capacity internally. The Trust provides a return on investment document to each College, demonstrating value in excess of the fee paid.
The Trust provides teacher and management training, business and management modelling, and a range of education resources and guidance. This ensures the effective support of learners to be work-ready in a specific sector, bringing industry leaders to the table to support this critical work, without the undue influence of one employer.
The Trust seeks a Licence fee (as a cost contribution to support services) based on our 7 key differentiators:
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14+ integrated, contextualised Maths and English
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Work experience and employer engagement- practical direction and skills development
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Enterprise and Employability
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Careers Education and Staff CPD
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Digital skills for our digital economy
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Career College concept and brand- sector specialist pathway
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Approach to career-led pathways, to fast track learner preparation for work
Each Career College is audited to risk assess how far our standards to these differentiators are currently met and what level of support they will need. We then itemise fees, at cost (no profit) for the license, itemising any additional services we can provide to meet the standards. If the College does not wish to use our additional services, they may source their own resources, without any penalty. We check adherence to our standards, meeting students, staff and partners for each Career College and tracking achievement and activity of learners.
As well as offering a clear brand and international identity for excellence - our branded support offer draws on the expertise and infrastructure of mainly existing FE establishments, and some schools. Building on this, the Career Colleges Trust provides a robust toolkit for employers, educators, parents and learners. We also recognise the potential for FE colleges with particular specialisms or best practice to offer their services (CPD, systems, tools) to other Career Colleges as part of the membership model.
The Trust is committed to the public benefit through advancing education that improves the work prospects of young people and commits all Career Colleges to a not for profit open access education model for 14 to 19 year olds.
The Trust has also committed to a programme of ongoing national promotion of the overall model and approach, sharing research and best practice with the public e.g. through regular speaking at national education conferences.
The specific resources and detailed education model for each Career College provides a quality mark- an assurance to learners, parents and employers that the education in a branded Career College has been designed by industry for industry- giving young people the best chance of employment in a growing sector. The Trust is concerned to ensure that others to not purport to meet Career College standards without our ongoing monitoring and assurance of this. The Career College sponsors also distinguish themselves as regional centres of excellence and specialism, using some of their own intellectual property in the process, often in competition with others. In order to ensure these Career Colleges are financially viable and sustainable organisations, the Trust commits to not setting up another Career College in the same specialism within the same locality, as this will not benefit learners.
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The Career Colleges Trust CIO
Trustees' Report
ACHIEVEMENT AND PERFORMANCE
Employer engagement:
Over the first six years of operation over 800 regional, national and local employers have engaged with our Career Colleges, many on a regular basis. Over the last few years Amazon Web Services and Sir Robert McAlpine Ltd have been key supporters of the Trust. Sir Robert McAlpines continue to fund the development of a Digital Construction Career College, which has been delayed as a result of Covid-19 and colleges having to close down during the initial lock down period.
The Colleges we serve are continuing to request support to develop productive relationships with an increasing number of employers and to support our work in this area we appointed a Director of Employer Involvement in February 2020. This role is instrumental in supporting our new and existing Career Colleges with developing employer involvement strategies, brokering relationships, seeking sponsorship opportunities and developing an employer base for our Logistics Career College.
Our colleges continued to work with employers to support work-based activities, however, this year has been a difficult year and we have begun to look at how we can support transition from face-to-face to online engagement with employers and in particular what Virtual Work Experience might look like for our Career College students.
Reputation/brand growth:
We continue to achieve wholly positive coverage across print, online and broadcast media - spanning national, regional and sector media. In 2019-20 we achieved 115 articles with a national reach of 9.12m. Publications include: the TES, the Sun, the Mirror, FE News, FE Week and the Evening Standard.
This year we have turned our attention to redevelopment of our website to ensure it is engaging, meets the needs of our audiences (employers and training providers) and is instrumental in the promotion of our brand and benefits of working with us. In addition, we have implemented a CRM system to enable us to track and maximise our contacts and have developed a programme of e-shots, blogs and newsletters to drive website traffic.
Independent research by UCL Institute of Education, looking at the CCT model and its impact on colleges was published in February 2020.
The commercialisation of training - The Trust has engaged with supporting the development of T Levels with the Department of Education and has this year strengthened its CPD and resource base to support Career Colleges to build capacity to deliver T Levels.
Collaborative Projects:
The Career College Trust has been working on major collaborative projects including working with STC Group Netherlands, an international Maritime training provider to develop a Port Logistics Career College curriculum to be piloted in Hugh Baird in September 2020.
Open Career Colleges - to August 2020:
An additional Career College at Unified SEEVIC and Palmers College will open in September 2020, they will be delivering two Career College Pathways: Professional Services and Digital Technology.
In addition, seven colleges have committed to an initial development year as part of a cluster of Logistics Career Colleges opening in September 2021. These include:
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The Career Colleges Trust CIO
Trustees' Report
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City of Bristol
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Coleg Gwent (2022)
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Eastleigh
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Hugh Baird
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South Essex
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West Herts
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West Suffolk
In addition some of the colleges have committed to a development year for the following pathways:
Eastleigh - Digital Construction and Digital Technology (2) Hugh Baird - Digital Technology South Essex - Health Care West Suffolk - Engineering
FINANCIAL REVIEW
Reserves policy
The trustees recognise that it is very important that the charity has sufficient reserves to continue its objectives. This policy refers to unrestricted and undesignated funds which are not represented by tangible fixed assets held for charitable use. This is to ensure that there are funds available to meet the commitments of the charity. A review of our reserves policy is being undertaken.
Funds
The reserves as at 31 August 2020 were in credit - £81,512. The charity invoices the Colleges prior to the year end, this then being accounted for as deferred income in liabilities.
A surplus of £4,107 was generated in the year.
The charity has a VAT liability of £120k at the year end. This is due to an oversight in filing returns, which is being addressed and a payment plan being put in place.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Career Colleges Trust is a Foundation Charitable Incorporated Organisation, having converted from being a charitable company limited by guarantee on 14th October 2020. The charity is governed by its Constitution of the same date.
Recruitment and appointment of new trustees
The trustees are responsible for the overall management of the charity.
The trustees during the period and to the date of signing are shown on page 2.
New trustees are inducted into the practical work of the charity when they are appointed and are kept informed about their duties and responsibilities as appropriate.
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The Career Colleges Trust CIO
Trustees' Report
Risk assessment
The directors have assessed the major risks facing the charity and have processes in place to address these risks.
The principal risks have been identified as:
Reputation - the continued success of attracting sufficient numbers of learners to make a viable/vibrant group/learning experience at each Career College. The Trust has sought to pilot and grow provision in an incremental way, to test demand and ensure viability or provision, often delaying 14 to 16 year old starts to year 2 as part of risk management.
Curriculum and Employer Support - the regular updating of the curriculum and employer engagement to serve learners in the industry/sector intended and ensuring employers support learners to gain right practical experience on programme in Career Colleges.
Staffing - the ability to retain, recruit and train quality staff and managers. This is in part mitigated by the attraction of staff employer-led education, with a high degree of industry endorsement and distinction.
Growth opportunities for the Trust, in view of Government review of Post-16 education, creating some uncertainty for education providers and their resulting risk aversion to pursuing new initiatives. As a result, the Trust has focused most resources this year on strengthening existing and planned Career Colleges, rather than additionally seeking growth in provision.
The annual report was approved by the trustees of the charity on 1 March 2021 and signed on its behalf by:
......................................... Ms R Gilbert Trustee
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The Career Colleges Trust CIO
Independent Examiner's Report to the trustees of The Career Colleges Trust CIO
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2020 which are set out on pages 9 to 15.
Respective responsibilities of trustees and examiner
As the charity’s trustees of The Career Colleges Trust CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the The Career Colleges Trust CIO's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
Since The Career Colleges Trust CIO's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of The Career Colleges Trust CIO as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Mark Heaton FCCA FCIE DChA KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG
1 March 2021
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The Career Colleges Trust CIO
Statement of Financial Activities for the Year Ended 31 August 2020
| Note Income from: Charitable activities 2 Other income 3 Total income Expenditure on: Charitable activities 4 Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 13 |
Unrestricted funds £ 486,330 2,194 488,524 (484,417) (484,417) 4,107 4,107 77,405 81,512 |
Total 2020 £ 486,330 2,194 488,524 (484,417) (484,417) 4,107 4,107 77,405 81,512 |
Unrestricted funds £ 462,076 - 462,076 (454,297) (454,297) 7,779 7,779 69,626 77,405 |
Total 2019 £ 462,076 - |
|---|---|---|---|---|
| 462,076 | ||||
| (454,297) | ||||
| (454,297) | ||||
| 7,779 | ||||
| 7,779 69,626 |
||||
| 77,405 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 13.
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The Career Colleges Trust CIO
(Registration number: 1162957) Balance Sheet as at 31 August 2020
| Note Current assets Debtors 10 Cash at bank and in hand Creditors: Amounts falling due within one year 11 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 13 |
2020 £ 446,654 64,540 511,194 (429,682) 81,512 81,512 81,512 |
2019 £ 239,394 16,669 |
|---|---|---|
| 256,063 (178,658) |
||
| 77,405 | ||
| 77,405 | ||
| 77,405 |
The financial statements on pages 9 to 15 were approved by the trustees, and authorised for issue on 1 March 2021 and signed on their behalf by:
......................................... Ms R Gilbert Trustee
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The Career Colleges Trust CIO
Notes to the Financial Statements for the Year Ended 31 August 2020
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
The Career Colleges Trust CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Exemption from preparing a cash flow statement
The charity is exempt from preparing a cash flow statement.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including independent examination, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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The Career Colleges Trust CIO
Notes to the Financial Statements for the Year Ended 31 August 2020
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
2 Income from charitable activities
| Licence fees Courses & learning programmes |
Unrestricted funds General £ 259,425 226,905 486,330 |
Total 2020 £ 259,425 226,905 486,330 |
Total 2019 £ 336,950 125,126 |
|---|---|---|---|
| 462,076 |
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The Career Colleges Trust CIO
Notes to the Financial Statements for the Year Ended 31 August 2020
3 Other income
| Employment allowance | Unrestricted funds General £ 2,194 |
Total 2020 £ 2,194 |
|---|---|---|
4 Expenditure on charitable activities
| Note Charitable activities Depreciation Staff costs Governance costs 5 Net incoming/outgoing resources Net incoming resources for the year include: Depreciation of fixed assets |
Unrestricted funds General £ 450,431 - 32,736 1,250 484,417 |
Total 2020 £ 450,431 - 32,736 1,250 484,417 2020 £ - |
Total 2019 £ 441,458 1,944 9,895 1,000 |
|---|---|---|---|
| 454,297 | |||
| 2019 £ 1,944 |
6 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
7 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2020 £ 30,107 2,194 435 32,736 |
2019 £ 9,680 215 - |
|---|---|---|
| 9,895 |
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The Career Colleges Trust CIO
Notes to the Financial Statements for the Year Ended 31 August 2020
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| Charitable activities No employee received emoluments of more than £60,000 during the year 8 Independent examiner's remuneration Examination of the financial statements |
2020 No 2 2020 £ 1,250 |
2019 No 1 |
|---|---|---|
| 2019 £ 1,000 |
9 Taxation
The charity is a registered charity and is therefore exempt from taxation.
10 Debtors
| Trade debtors Prepayments 11 Creditors Trade creditors VAT payable Other creditors Accruals Deferred income Deferred income at 1 September 2019 Resources deferred in the period Amounts released from previous periods Deferred income at year end |
2020 £ 446,610 44 446,654 2020 £ 12,479 120,439 1,014 18,250 277,500 429,682 2020 £ 137,501 277,500 (137,501) 277,500 |
2019 £ 239,350 44 |
||
|---|---|---|---|---|
| 239,394 | ||||
| 2019 £ 3,964 37,193 - - 137,501 |
||||
| 178,658 | ||||
| 2019 £ 246,450 - (108,949) |
||||
| 137,501 |
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The Career Colleges Trust CIO
Notes to the Financial Statements for the Year Ended 31 August 2020
12 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £435 (2019 - £Nil).
13 Funds
| Unrestricted funds General Unrestricted funds General |
Balance at 1 September 2019 £ 77,405 Balance at 1 September 2018 £ 69,626 |
Incoming resources £ 488,524 Incoming resources £ 462,076 |
Resources expended £ (484,417) Resources expended £ (454,297) |
Balance at 31 August 2020 £ 81,512 |
|---|---|---|---|---|
| Balance at 31 August 2019 £ 77,405 |
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