Charity registration number: 1162957 ## The Career Colleges Trust CIO Annual Report and Financial Statements for the Year Ended 31 August 2022 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 6| |Independent Examiner's Report|7| |Statement of Financial Activities|8| |Balance Sheet|9| |Notes to the Financial Statements|10 to 14| **The Career Colleges Trust CIO Reference and Administrative Details Trustees** Ms R Gilbert Ms J A Lloyd Mr M Silverman **Charity Registration Number** 1162957 **Principal Office** 1st Floor, Block C The Wharf Manchester Rd Burnley BB11 1JG **Independent Examiner** KM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG **Bankers** Co-op Bank 1 St Peters Square Stockport Greater Manchester SK1 1NX Page 1 ## **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 2022. ## **Trustees** Ms C P Bosworth (resigned 31 August 2022) Mr D B Coombes (resigned 31 August 2022) Mr G R Findlay (resigned 31 March 2022) Ms R Gilbert Ms R Hennigan (resigned 31 August 2022) Ms J A Lloyd Mr A D Cole (resigned 31 August 2022) Mr M Silverman (appointed 1 September 2022) ## **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. Over the past two years the focus has been on three key areas: logistics, digital construction and digital technology. Many of our clients in the Further Education sector need support to engage employers in these key skills shortage areas as employer involvement shaping the focus and strategic drive of their college. Having established a qualification in International Logistics and Supply Chain Management the Career Colleges Trust felt it important to link with an organisation that could drive employer engagement and therefore transferred it’s work in this area to a specialist organisation, Skill for Logistics. The transfer of work included TUPE arrangements for the Trust’s Director of Employer Involvement to ensure continuity of relationships with colleges. The Trust has strong relationships with employers in the construction sector who are supporting the development of a digital literacy framework designed to ensure young people studying construction also develop knowledge and competence software and tools used in the industry. There are currently 5 colleges involved in the digital construction project and it is the Trust’s ambition to grow this to 10 college by the end of 2023. Page 2 ## **The Career Colleges Trust CIO** ## **Trustees' Report (continued)** 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 Denmark, Germany and Switzerland. The model also draws on some lessons from American Career Colleges, notably 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 of 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: 1. Curriculum designed by employers, for employment. Students get involved in industry projects and wider employability skills including contextualise digital skills. 2. Excellent progression pathways including higher level apprenticeships, University and fulfilling employment. 3. Employer partners who are involved with both the design and delivery of each Career College's innovative curriculum. 4. Career College Boards which shape the curriculum and inform future direction of the vocational provision. 5. A minimum of 40% of board members of the Career College who are local/regional employers for the relevant sector. 6. 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 the two current curriculum areas of digital technology and digital construction. 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. The Trust provides support with employer intervention, establishment of employer boards, CPD for staff and a range of webinars and resources for staff and students. 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 a negotiated set of outputs which include: 1. Work experience and employer engagement- practical direction and skills development. 2. Staff CPD requirements. 3. Digital skills for our digital economy. 4. Wider supports provided based on individual requirements. Page 3 ## **The Career Colleges Trust CIO** ## **Trustees' Report (continued)** 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 employersr and educators. 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 concerned to ensure that others do 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. ## **Public Benefit** 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 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. ## **ACHIEVEMENT AND PERFORMANCE** ## **Employer engagement:** Over the first eight 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 McAlpine continues to fund the development of a Digital Construction Career College, which has now been in operation for four years. Additional employers from the construction industry (including Belfour Beatty, Morrisons Construction, Robertsons Construction) have also supported the development of the digital construction project. ## **Reputation/brand growth:** We have focused on raising our profile with employers in the sectors we currently specialise in and have achieved this through regular social media campaigns and some coverage in educational press. ## **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 a cluster of colleges. The project required future specialist industry intervention and at the end of August 2022 the project was handed over to The Skills Group who are supporting through their sector body Skills for Logistics. The Trust also TUPEed the Director of Employer Engagement across to the Skills for Logistics to support the handover and continue to grow the cluster of colleges involved in the project. Page 4 ## **The Career Colleges Trust CIO** ## **Trustees' Report (continued)** Open Career Colleges - September 2021 to August 2022: The financial climate for colleges is challenging, exacerbated by the current cost of living crisis, therefore the Career College Trust has streamlined its work to focus on just two key sectors, digital technology and digital construction and therefore is only currently engaged with seven FE colleges. Two new colleges joined in September 2022 - Oaklands and Windsor Forest College both specialising in digital construction. In addition, there are five colleges who continued to work with CCT, these include: Hugh Baird, Birmingham Metropolitan College, Coleg Gwent, New College Durham and City of Glasgow. ## **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. ## **Funds** The reserves as at 31 August 2022 were in credit - £22,170. The changes made in the period have resulted in a return to positive reserves. A surplus of £24,089 was generated in the year. ## **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. ## **Risk assessment** The trustees 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. Page 5 ## **The Career Colleges Trust CIO** ## **Trustees' Report (continued)** 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. ## **Financial review** At the start of the financial year the charity was in a net liabilities position. Through careful monitoring of finances the charity has achieved a surplus and now has positive reserves of £22,170. The Trust has cleared it’s VAT liability, having paid a final balance of £38,000 at the end of August 2022. The annual report was approved by the trustees of the charity on 9 May 2023 and signed on its behalf by: ......................................... Ms R Gilbert Trustee Page 6 ## **The Career Colleges Trust CIO** ## **Independent Examiner's Report to the trustees of The Career Colleges Trust CIO** I report to the trustees on my examination of the accounts of The Career Colleges Trust CIO for the year ended 31 August 2022. ## **Responsibilities and basis of report** As the charity 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 the Association of Charity Independent Examiners, 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: 1. accounting records were not kept in respect of The Career Colleges Trust CIO as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. 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 the Association of Charity Independent ExaminersKM 1st Floor, Block C The Wharf Manchester Road Burnley Lancashire BB11 1JG 9 May 2023 Page 7 ## **The Career Colleges Trust CIO** ## **Statement of Financial Activities for the Year Ended 31 August 2022** |**Note**
**Income from:**
Charitable activities
2
**Expenditure on:**
Charitable activities
3
Total expenditure
Net income/(expenditure)
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
11|**Unrestricted**
**funds**
**£**
342,651
(318,562)
(318,562)
24,089
24,089
(1,919)
22,170|**Total**
**2022**
**£**
342,651
(318,562)
(318,562)
24,089
24,089
(1,919)
22,170|**Unrestricted**
**funds**
**£**
407,204
(490,635)
(490,635)
(83,431)
(83,431)
81,512
(1,919)|**Total**
**2021**
**£**
407,204
(490,635)| |---|---|---|---|---| |||||(490,635)| |||||(83,431)| |||||(83,431)
81,512| |||||(1,919)| All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 11. The notes on pages 10 to 14 form an integral part of these financial statements. Page 8 ## **The Career Colleges Trust CIO** ## **(Registration number: 1162957) Balance Sheet as at 31 August 2022** |**Note**
**Current assets**
Debtors
8
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
9
**Net assets/(liabilities)**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
11|**2022**
**£**
106,800
49,522
156,322
(134,152)
22,170
22,170
22,170|**2021**
**£**
307,200
79,009| |---|---|---| |||386,209
(388,128)| |||(1,919)| |||(1,919)| |||(1,919)| The financial statements on pages 8 to 14 were approved by the trustees, and authorised for issue on 9 May 2023 and signed on their behalf by: ......................................... Ms R Gilbert Trustee The notes on pages 10 to 14 form an integral part of these financial statements. Page 9 ## **The Career Colleges Trust CIO** ## **Notes to the Financial Statements for the Year Ended 31 August 2022** ## **1 Accounting policies** ## **Statement of compliance** The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. ## **Going concern** The financial statements have been prepared on a going concern basis. The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. ## **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. Page 10 ## **The Career Colleges Trust CIO** ## **Notes to the Financial Statements for the Year Ended 31 August 2022 (continued)** ## **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 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**
**£**
294,800
47,851
342,651|**Total**
**2022**
**£**
294,800
47,851
342,651|**Total**
**2021**
**£**
279,700
127,504| |---|---|---|---| ||||407,204| Page 11 ## **The Career Colleges Trust CIO** ## **Notes to the Financial Statements for the Year Ended 31 August 2022 (continued)** ## **3 Expenditure on charitable activities** |**Note**
Charitable activities
Staff costs
5
Governance costs|**Unrestricted**
**funds**
**General**
**£**
249,282
67,830
1,450
318,562|**Total**
**2022**
**£**
249,282
67,830
1,450
318,562|**Total**
**2021**
**£**
432,386
56,999
1,250| |---|---|---|---| ||||490,635| ## **4 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. ## **5 Staff costs** The aggregate payroll costs were as follows: |**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2022**
**£**
57,954
5,673
4,203
67,830|**2021**
**£**
50,962
4,842
1,195
56,999| |---|---|---| The monthly average number of persons (including senior management / leadership 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
**6**
**Independent examiner's remuneration**
Examination of the financial statements|**2022**
**No**
2
**2022**
**£**
1,450|**2021**
**No**
2
**2021**
**£**
1,250| |---|---|---| Page 12 ## **The Career Colleges Trust CIO** ## **Notes to the Financial Statements for the Year Ended 31 August 2022 (continued)** ## **7 Taxation** The charity is a registered charity and is therefore exempt from taxation. ## **8 Debtors** |Trade debtors
**9**
**Creditors**
Trade creditors
VAT payable
Other creditors
Accruals
Deferred income
Deferred income at 1 September 2021
Resources deferred in the period
Amounts released from previous periods
Deferred income at 31 August 2022||**2022**
**£**
106,800
**2022**
**£**
9,768
13,595
154
3,635
107,000
134,152
**2022**
**£**
294,640
107,000
(294,640)
107,000|**2021**
**£**
307,200
**2021**
**£**
20,598
71,466
174
1,250
294,640| |---|---|---|---| ||||388,128| ||||**2021**
**£**
277,500
294,640
(277,500)
294,640| ## **10 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 £4,203 (2021 - £1,195). Page 13 ## **The Career Colleges Trust CIO** ## **Notes to the Financial Statements for the Year Ended 31 August 2022 (continued)** |**11 Funds**
**Unrestricted funds**
General
**Unrestricted funds**
General|**Balance at 1**
**September**
**2021**
**£**
(1,919)
**Balance at 1**
**September**
**2020**
**£**
81,512|**Incoming**
**resources**
**£**
342,651
**Incoming**
**resources**
**£**
407,204|**Resources**
**expended**
**£**
(318,562)
**Resources**
**expended**
**£**
(490,635)|**Balance at 31**
**August 2022**
**£**
22,170| |---|---|---|---|---| |||||**Balance at 31**
**August 2021**
**£**
(1,919)| Page 14