**Registered number: 11634699 Charity number: 1182053** ## **NOCN Job Cards** **(A Company Limited by Guarantee)** **Trustees' Report and Financial Statements** **For the Year Ended 31 July 2021** ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Contents** ||Page| |---|---| |**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1| |**Trustees' Report**|2 - 11| |**Trustees' Responsibilities Statement**|12| |**Independent Auditor's Report on the Financial Statements**|13 - 16| |**Statement of Financial Activities**|17| |**Statement of Financial Position**|18| |**Statement of Cash Flows**|19| |**Notes to the Financial Statements**|20 - 35| **NOCN Job Cards** **(A Company Limited by Guarantee)** ## **Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 July 2021** |**Trustees**|Alison Duckles CBE, Chair| |---|---| ||Graham Hasting-Evans| ||Simon Renny (resigned 2 November 2020)| ||David Mosley| ||Kevin Minton| ||Trevor Gamble MBE| ||Carl Hassell (appointed 14 May 2021)| ||Paul Allman (appointed 2 November 2020)| ||Timothy Brownbridge (appointed 2 November 2020)| |**Company registered**
**number**
11634699
**Charity registered**
**number**
1182053
**Registered office**
Acero Building
1 Concourse way
Sheaf Street
Sheffield
South Yorkshire
S1 2BJ
**Key Management**
**Personnel**
Carl Hassell - Group Director (Job Cards)
**Auditor**
BDO LLP
Central Square
29 Wellington Street
Leeds
LS1 4DL
**Bankers**
National Westminster Bank Plc
7 Market Place
Derby
DE1 9DS
**Solicitors**
Andrew Holland Law Limited
Suite 1, The Bakery
Millennium Business Park
Steeton
Keighley
West Yorkshire
BD20 6RB|| Page 1 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Trustees' Report For the Year Ended 31 July 2021** The Trustees present their annual report together with the audited financial statements of the charity for the year 1 August 2020 to 31 July 2021. The Annual Report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice, 2nd Edition (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). ## **Chair's report** The launch of NOCN Job Cards in 2018 was a key strategic milestone in the delivery of the NOCN Group vision to be the Educational & Skills Charity of choice, helping learners and apprentices to reach their potential and organisations to thrive. Our diversification into competency SMART cards gives NOCN Group the opportunity to reinforce the importance of the right qualifications for skilled work, setting the standards for the occupational proficiency and providing evidence of the ability to do a job in occupations with a project-based or transient workforce. The Covid years of 19/20 were very challenging as we experienced significant difficulties with the transfer of data and the processing functions needed to manage the functionality and complex rules within the CPCS scheme. Throughout 20/21, we resolved these issues with data and processing which has enabled us to return to good ‘business as usual’ customer service. CPCS has over 200 accredited training/testing centres throughout the UK, each centre is quality assured based on RAG rating system, ensuring that the quality of testing is maintained in line with the agreed standard. The CPCS card scheme has many layers to allow learners to progress from skilled to full competence. It also includes continued professional development which supports the learners and the construction plant sector to maintain a safe and competent workforce. This ensures the competence of all CPCS operatives. This, with the introduction of mandatory practical skills testing of all of our Trainer/Assessors, sets us apart from all other card schemes and ensures we deliver excellence across the construction plant sector. We have established great relationships between NOCN Job Cards and the major industry stakeholders within the plant sector, including all the federations and associations that make up the CPCS Management Committee. NOCN Job Cards also provides the carding processing and administration service for CISRS to the National Association of Scaffolding Contractors, (where we experienced similar data/processing issues) all services provided to CISRS have been within SLA since February 2021. Both CPCS & CISRS volumes have been affected by the Covid-19 pandemic. Despite the pandemic and issues we have experienced, I am delighted to say that our staff have performed extraordinarily well to significantly improve the operation of the system, as well as importantly protecting the interests of the charity’s beneficiaries, the construction employers and the cardholders. Job Cards is firmly focused on the future improvements of the carding schemes, we have a pipeline of developments for new and exciting products alongside our plans to enhance our digital delivery capability. **Alison Duckles CBE** Chair Date: 29 April 2022 Page 2 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Objectives and activities** ## **a. The purpose of the Charity** The purpose of NOCN Job Cards is to support learners and apprentices to achieve success in life and work and to support communities and organisations to develop and prosper, through the provision and operation of competency-based card schemes. ## **b. The objectives of the Charity** The charity’s objects are specifically restricted to the advancement of education of operatives working in industry within the United Kingdom & Eire in one or more of the following ways: (1) by facilitating competence card schemes which will set standards and develop and test competences in order to increase public confidence in the operatives' work; (2) by promoting participation by operatives in the schemes; (3) by promoting participation by operatives in all forms of education and training in conjunction with and in addition to the schemes; (4) by improving the quality and flexibility of the educational provision available to operatives; and (5) by improving access for operatives to learning opportunities and facilitating progression to further learning, employment and higher education. ## **c. Public benefit** The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when setting up the charity and reviewing the Charity’s aims and objectives and in planning future activities. Our Trustees have also complied with their duty in accordance with the UK Charities Act 2011 to follow the Charity Commission’s guidance on the operation of this public benefit. The Charity started to advance its objectives for the general public through the purchase of the Construction Plant Card Scheme (CPCS) from CITB on 1 March 2019 as the first of the competency card schemes that the Charity will operate. This card scheme ensures that Construction Plant Operators have the right qualifications and experience to operate different classes of plant machinery on construction sites. In September 2019, CISRS signed a contract with NOCN Job cards for NOCN Job cards to deliver the CISRS Cards to the Scaffolding industry. CISRS is one of the oldest and most respected cards in the construction industry. The contract to deliver the CISRS cards fits very well with the NOCN Job cards charitable aims. Similar occupational card schemes are expected to be set up by the charity in future. Page 3 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Achievements and performance** ## **a. Key achievements, activities & performance in the year** During 2020 Job cards continued to see elements of major upheaval due to COVID-19 and continued data legacy issues, which in turn meant that various system issues remained. From the start of 2021 all major issues had been resolved and data corrections were put in place. This has given us confidence to move forward and develop the products that industry require to facilities a safe and competent workforce. Support from industry is strong, we have many industry working groups supporting development of new products and maintenance of older products ensuring that the scheme is up to date for industries requirements. Quality assurance has strengthened during the financial year, CPCS has a new Quality Assurance Manual, new reporting forms and EQA’s are now more efficient due to completing documentation in real time. Our competitors have a strong presence in some parts of the construction sector which has also negatively impacted CPCS income. We are seeking support from industry to stand by the standards they developed with the CPCS Management Committee under CITB’s ownership, in order to maintain safety standards in the plant sector. Potential changes announced by CITB regarding plant-related grants may also undermine the CPCS scheme quality and standards. We are currently working with CITB, PSRO, HSE and our Management Committee to help ensure that industry upholds the CPCS standards and delivery model developed over the past 13 years. The intent is to ensure that any Plant Card Schemes operating in the same sector footprint at least adopts the same robust quality and standards of delivery as CPCS as the absolute minimum requirements so that plant card schemes can operate on a level playing field working to standards developed by industry. The impact of Covid lockdown meant that application levels saw significant declines as test centres closed and the construction sector ceased work. Following the relaxation of lockdown in the construction sector and at test centres, we saw these levels increase in Autumn 2020 and the business has moved into a surplus generating position in 2021/22. In 2020/21, with the CITB transfer issues resolved and with no physical lockdown of the test centres due to Covid in the year, the income improved significantly, albeit still below the levels expected when the business was purchased. This improved income position, along with tight cost control in 2020/21, has meant that the business has generated a £1.2m operating surplus in 2020/21 (2020 - £0.3m operating loss) before amortisation and depreciation. NOCN Job Cards continues to be supported by an intercompany loan from NOCN. NOCN has committed to continue to financially support NOCN Job Cards and as a result NOCN Job Cards remains a going concern. As a result of the significantly lower than originally projected income levels and data transfer issues in relation to the CPCS business, NOCN Job Cards submitted a legal claim against CITB to court in March 2021 in respect of the purchase of the CPCS business from CITB. The claim was settled with CITB out of court in December 2021. Page 4 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Achievements and performance (continued)** Despite this, NOCN Job Cards has continued invest in the card systems in 2020/21 to improve the functionality of the cards and improve the online offer. It has, and will continue to, work with the CPCS Management Committee and other industry stakeholders to ensure that the CPCS scheme is further developed to meet the needs of the sector’s employers and the cardholders. CISRS throughput was affected by COVID-19 during 2020/21 due to a decision made by the owners to extend cards beyond expiry during the pandemic. In the latter half of 2020/21 financial year CISRS activity levels were returning to pre-covid levels. ## **Financial review** ## **a. Financial review including impact of Covid-19** NOCN Job Cards was incorporated on 22 October 2018. This was set up as a charitable legal vehicle to hold the CPCS and any other Job Card Schemes that NOCN Group may set up in future. On 1st March 2019 the business completed the purchase from CITB of the assets and liabilities of the CPCS business from CITB. The purchase was funded by NOCN Job Cards borrowing the funds to pay the initial upfront payment to CITB for the business from NOCN. Future earn-out payments will be mainly funded from the future surpluses that NOCN Job Cards is projected to generate. There was no purchase in respect of the CISRS scheme as this is being delivered under contract in return for a sales commission for each card. ## **2020/21 Financial Review** Following the relaxation of the covid lockdown restrictions on the test centres and construction sector in the summer of 2020, CPCS & CISRS activity levels and income improved 25% year-on-year. Alongside the improved income position costs were also constrained with the tight pay and non-pay cost controls imposed on the business along with reduced travel costs given the continuing covid situation. As a result costs were 23% lower in 2021/22 compared to 2020/21. This resulted in the charity achieving a £912k surplus in 2020/21 (2020: £809k deficit). Page 5 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Financial review (continued)** ||**2020/21**|**2019/20**|**2018/19**| |---|---|---|---| ||**£000**|**£000**|**£000**| |Income|**3,767**|3,014|1,547| |Operating costs|**(2,547)**|(3,322)|(1,355)| ||**______**|______|______| |Operating (deficit)/surplus|**1,220**|(308)|192| |Depreciation and amortisation|**(350)**|(459)|(216)| |Other revaluations|**42**|(42)|-| ||**______**|______|______| |Net movement in funds|**912**|(809)|(24)| The goodwill and liability in respect of the CPCS business purchase from CITB has reduced by £1.4m following the settlement of our legal claim with CITB in December 2021. The closing balance sheet of NOCN Job Cards shows total net assets of £0.1k in 2020/21, in comparison to total net liabilities of £3.1m in 2019/20. The movement from prior year is as a result of the change in the earn-out payments due to CITB for the CPCS business. Based on NOCN’s Group cashflow and income and expenditure projections and financing facilities, the Board is assured that NOCN Job Cards, with the support of the rest of the Group businesses, will generate sufficient funds be able to fund these liabilities. The business is expected to continue to generate surpluses in future years, albeit at a lower level than in 2020/21. In the opinion of the Trustees, in the light of the latest projections of incoming resources and costs for 2021/22 and 2022/23, and the confirmation from NOCN of the continued provision of financing facilities from NOCN, NOCN Job Cards continues to be a going concern. ## **b. Key risks in the year** The key risks NOCN Job Cards has faced in the year have been: - The potential for reputational damage to the CPCS card scheme and the NOCN brand due to unexpected issues in relation to the processing and issuing of cards following the transfer of the card processing function and data from CITB in December 2019. This issue was partly mitigated by the recruitment of additional processing support and additional IT support to address issues. In addition, there was a review undertaken with CITB to identify the issues and the lessons learnt from the transfer. - The UK economic position deteriorates in sectors that could significantly impact on the entity’s financial performance and ability to continue. This risk was heightened with advent of Covid lockdown which impacted on the organisation’s income streams. - The continued reduction in the CITB levy reduces the level of spending on construction cards. We are mitigating this through reducing our cost base, developing new products and diversification of the sectors we support and look to reduce our product prices where we can to support our customers. Page 6 ## **NOCN Job Cards (A Company Limited by Guarantee)** ## **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Financial review (continued)** - Linked to the above and the impact of Covid, there is the key risk that NOCN Job Cards is not sustainable financially. This is a risk that we have continued to monitor through the year and take action where appropriate to ensure that it reduce costs to ensure the business remains a going concern in line with the lower income levels. As a result of these actions the business moves forward into 2021/22 with a lower cost base and is assessed to continue to be a going concern with the ongoing financial support of NOCN. As a result of the significantly lower than expected income levels and data transfer issues in relation to the CPCS business, NOCN Job Cards submitted a legal claim against CITB to court in March 2021 in respect of the purchase of the CPCS business from CITB. The claim was settled with CITB out of court in December 2021. - In the light of the recent sanctions imposed on Russia and the war in Ukraine we have reviewed our exposure to Russia and Ukraine and can confirm that we have no customers or suppliers in Russia or Ukraine. ## **c. Powers of Investment** The trustees are authorised by the Memorandum of Association to invest monies not immediately required for the Charity’s own purposes in such investments, securities or property as they deem fit subject to any conditions required by law. ## **d. Reserves policy** NOCN Job Cards has a reserves policy that is consistent with NOCN’s reserves policy. This policy is to aim to develop and retain a level of unrestricted reserves, over the medium term, of a minimum of 12 weeks of actual operating expenditure, up to a maximum of 26 weeks of actual operating expenditure. These unrestricted reserves, which are freely available for general use, are held to withstand any short-term financial risks and to support any windup costs in the event of closure. Should reserves drop below 12 weeks an action plan will be agreed by the Board to ensure that it is likely to remain a going concern and build up its reserves to the minimum level. As at the end of July 2020 NOCN Job Cards negative reserves increased reserves increased due to the deficit generated in 2019/20. In 2019/20, the Board approved a revised financial plan to allow the business to move into a sustainable financial position through a programme of cost cutting to allow the business to continue to operate solvently with a lower income base than originally projected and allow the business to pay the liabilities due to CITB as they fall due. It generated an operating surplus in 2020/21 and reduced its loan to NOCN and is expected to continue to make surpluses in the following years. It is expected to take a number of years before the reserves recover to such a point that it is within its reserves policy. So far in 2021/22 the business is continuing to progress as planned. As noted in the financial review section above, COVID 19 did adversely impact on Job Cards income levels in 2019/20 whilst the construction sector was in lockdown and whilst the training centres were closed. In 2020/21 the income levels rebounded back to the pre covid income levels, despite the continued impact of Covid on the UK economy, and the business is now in a strong position to continue to develop following the resolution of the CPCS transfer issues from CITB, the settlement of our legal claim with CITB, and the strong support from the sector’s employers since we have taken over the scheme. Page 7 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Financial review (continued)** ## **Going concern** In order for the Board to determine the going concern position of Job Cards, a going concern assessment of its position was developed. The assessment included a review of current performance in 2021/22 at the point of signing the accounts, stress testing of budgets and forecast projections under a best and worst case on the statement of financial activities and cashflow position for the period up to the 31st July 2023. Consideration was also given to developing mitigations to be utilised to offset any negative change to income or expenditure levels. The mitigations would be applied depending on the financial need of Job Cards and the Group, and these may consist of any one or a mix of the following actions: reduce discretionary spend; reinstate a pay cut; do not backfill any staff leavers; and/or initiate further redundancies. Job Cards is operationally very viable as a business with continued projected surpluses to be generated in 2021/22 and 2022/23 under the best and worst case scenarios. However, in the light of the CPCS income and hence surplus levels being less than expected when the business was bought from CITB; the financial impact of Covid on the business in 2019/20 and 2020/21; and the fact that Job Cards was set up as a new charitable legal entity to purchase the CPCS business with no opening reserves, the going concern assessment is reliant on the NOCN Group’s financial viability in order to continue to fund NOCN Job Cards to allow it to pay the agreed purchase consideration as it currently falls due. As such Job Cards is reliant on NOCN remaining a going concern. NOCN has also undertaken a going concern assessment and has assessed that NOCN remains a going concern and has committed to continue to fund NOCN Job Cards until at least 31 July 2023 and the NOCN board has provided a letter of support to NOCN Job Cards Board to this effect. Following this assessment, and the letter of support provided to NOCN Job Cards, the Board have assessed that the business continues to remain a going concern for at least the following 12 months from the signing of these accounts and can pay its liabilities as they fall due. ## **Structure, governance and management** ## **a. Governing document and structure** The organisation is a charitable company limited by guarantee incorporated on 22 October 2018 and was registered in England and Wales as a charity on 15 February 2019. The charity started to operate from 1 March 2019. NOCN Job Cards is consolidated under NOCN, given its articles give NOCN majority voting rights on the Board. ## **Compliance to Charity Governance Code** In 2019 NOCN undertook a review of NOCN’s compliance against the Charities Compliance code for larger charities as part of a Group Governance Review. It was assessed that NOCN is substantially compliant with the code and further improvements were made following this review where there were gaps identified. The remaining areas to be addressed to fully comply were the introduction of regular trustee appraisals & a board effectiveness survey. These will be addressed in 2022. Page 8 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Structure, governance and management (continued)** ## **b. Appointment of Trustees** As at the 31 July 2021, there were 8 trustees in post at NOCN Job Cards following the appointment of Paul Allman, Timothy Brownbridge and Carl Hassell as trustees in the year and Simon Renny stood down as a trustee. The Chair is a trustee of the Board of NOCN. There are 2 external trustees who have been appointed on the recommendation of the CPCS Management Committee (an advisory group set up by CITB to aid the running of the CPCS card scheme which has no executive power or control over NOCN Job Cards), and 2 Senior Leadership staff of NOCN. Carl Hassell is remunerated by NOCN following his appointment as a trustee of NOCN Job Cards. The Board make any trustee appointment decisions. Any appointments have to be approved by the NOCN Board. ## **c. Trustee induction and training** When new Trustees join the Board, a formal briefing from the Chair and Group Managing Director takes place and they receive an induction pack. Trustees will receive formal training on their responsibilities, including their legal obligations where needed. ## **d. Organisational structure** The Chair of NOCN Job Cards Board of Trustees is also a Trustee of NOCN. As such there is a clear link between both the parent and the subsidiary Boards. The NOCN Job Cards Board of Trustees meets at least quarterly with a full business agenda including a review of the Management Accounts and budget achievement. The company has elected not to set up an Audit Committee for the entity as there is a Group Audit and Risk Committee which will cover all the NOCN Group’s entities. The Board of Trustees delegates the management of the Charity to the Group Managing Director who undertakes these responsibilities through a Senior Leadership Team (SLT) which is comprised of the Group Managing Director, the Deputy Group Managing Director and all the Executive Directors within the Group and a Group Management Team which is made up of the SLT plus the Heads of Function of the NOCN Group entities. ## **e. Pay policy for senior staff** Two Trustees receive remuneration from NOCN as Executive Directors of NOCN but do not receive remuneration from NOCN Job Cards. The rest of the Trustees receive no remuneration. Details of any Trustee related party transactions are disclosed in the notes to the accounts. Page 9 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Structure, governance and management (continued)** ## **f. Risk Management** NOCN Group operates to a risk management policy and strategy which NOCN Job Cards has decided to adopt. The aims of the policy and strategy are to: - Consider best practice in designing a risk management framework; - Encourage well-managed taking of risk to deliver business objectives; - Provide staff with policies and procedures necessary to manage risk; - Embed risk management in the day-to-day conduct of business; - Identify and prioritise risk using the risk management technology; - Regularly monitor risk at Managing Director and Director Level; and - Achieve continuous improvement in risk management. During the year the NOCN Group’s Audit and Risk Committee has routinely considered the Strategic Risk Register and examined specific areas of risk at the request of the Board. The Strategic Risks are also reported to the Board on a Quarterly basis. The Strategic Risk Register is also reviewed on a monthly basis by the NOCN Group Management Team. NOCN Group’s reserves policy provides for mitigation against financial risk. ## **Future Plans** NOCN Job Cards has, and will continue to, work with the CPCS Management Committee and other industry stakeholders to ensure that the CPCS scheme is further developed to meet the needs of the sector’s employers and the cardholders. There are similar working arrangements in place for managing the CISRS scheme on behalf of industry. NOCN Job Cards will then consider setting up additional card schemes where there is the demand, either to be operated under licence or outright whilst also continuing to invest in the further development of the CPCS card scheme. ## **Disclosure of information to auditor** Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that: - so far as that Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and - that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. ## **Auditor** The auditor, BDO LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. Page 10 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** **Trustees' Report (continued) For the Year Ended 31 July 2021** ## **Small companies note** In preparing this report, the directors have taken advantage of the small companies exemptions. Approved by order of the members of the board of Trustees on 29 April 2022 and signed on their behalf by: **Alison Duckles CBE** Chair Page 11 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Statement of Trustees' responsibilities For the Year Ended 31 July 2021** The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the charity financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and accounting 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 business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity's website is the responsibility of the Trustees. The Trustees' responsibility also extends to the ongoing integrity of the financial statements contained therein. Page 12 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Independent Auditor's Report to the of NOCN Job Cards** ## **Opinion on the financial statements** In our opinion the financial statements: - give a true and fair view of the state of the Charitable Company’s affairs as at 31 July 2021 and of its incoming resources and application of resources for the year 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. We have audited the financial statements of NOCN Job Cards (“the Charitable Company”) for the year ended 31 July 2021 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and 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). ## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## _Independence_ We are independent of the Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 13 ## **NOCN Job Cards (A Company Limited by Guarantee)** ## **Independent Auditor's Report to the of NOCN Job Cards (continued)** ## **Other information** The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Other Companies Act 2006 reporting** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ report, which includes the Directors’ Report prepared for the purposes of Company Law, for which the financial statements are prepared is consistent with the financial statements; and - the Directors’ Report, which is included in the Trustees’ Report, has been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the Charitable Company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Directors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. Page 14 **NOCN Job Cards** **(A Company Limited by Guarantee)** ## **Independent Auditor's Report to the of NOCN Job Cards (continued)** ## **Responsibilities of Trustees** As explained more fully in the Trustees’ Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ## _Extent to which the audit was 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding and accumulated knowledge of the Charitable Company, and the sector in which it operates, we considered the risk of acts by the Charitable Company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. We considered the significant laws and regulations to be United Kingdom Generally Accepted Accounting Practice and the UK Companies Act 2006. All audit team members were briefed to ensure they were aware of any relevant regulations in relation to their work, areas of potential non-compliance and fraud risks. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of an override of controls), and determined that the principal risks were related to posting inappropriate journal entries, management bias in accounting estimates, appropriateness of the going concern basis, improper revenue recognition, and valuation of goodwill. Our audit procedures in response to the above included, but were not limited to: - Agreement of the financial statement disclosures to underlying supporting documentation; - Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to assumptions used in impairment of goodwil; - Procedures to test revenue including agreement of revenue recognised to supporting documentation, testing completeness of revenue recorded by agreeing details of income from Quartz to the legder and testing revenue recorded around the year end to check the appropriate year end cut-off; Page 15 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Independent Auditor's Report to the of NOCN Job Cards (continued)** - Identifying and testing journal entries identified as potentially unusual. This testing included, but was not limited to, any journal entries posted with specific keywords, manual journals to revenue and cash, journals posted by unexpected users, journals posted at unexpected times, and journals posted to least used accounts; - Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to going concern assumptions for the Charitable Company; - Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - A review of board minutes both during the period, and post year end, for any known or suspected instances of non-compliance with laws and regulation and fraud; - Enquiries to confirm with management that there was no legal correspondence during the period, or post year end, requiring review; - Obtaining an understanding of the control environment in monitoring compliance with laws and regulations. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 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. ## **Use of our report** This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company's members as a body, for our audit work, for this report, or for the opinions we have formed. **Helen Knowles** (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor Leeds United Kingdom > Date: 29 April 2022 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Page 16 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 July 2021** |**Note**
**Income from:**
Grants and donations
4
Charitable activities
5
**Total income**
**Expenditure on:**
Charitable activities
6,7
**Total expenditure**
**Net movement in funds before other recognised**
**gains**
**Other recognised gains:**
Gain/(loss) on revaluation of goodwill
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**
17|**Unrestricted**
**funds**
**2021**
**£**
**13,242**
**3,753,768**
**3,767,010**
**2,897,369**
**2,897,369**
**869,641**
**42,076**
**911,717**
**(833,357)**
**911,717**
**78,360**|**Total**
**funds**
**2021**
**£**
**13,242**
**3,753,768**
**3,767,010**
**2,897,369**
**2,897,369**
**869,641**
**42,076**
**911,717**
**(833,357)**
**911,717**
**78,360**|Total
funds
2020
£
124,721
2,889,752
3,014,473
3,781,913
3,781,913
(767,440)
(42,076)
(809,516)
(23,841)
(809,516)
(833,357)| |---|---|---|---| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 20 to 35 form part of these financial statements. Page 17 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee) Registered number: 11634699** ## **Statement of Financial Position As at 31 July 2021** |**Note**
**Fixed assets**
Intangible assets
11
Tangible assets
12
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
20
Creditors: amounts falling due within one
year
15
**Net current liabilities**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
16
**Total net assets/(liabilities)**
**Charity funds**
Unrestricted funds
17
**Total funds**|**54,060**
**909,075**
**470,371**
**1,433,506**
**(1,509,878)**|**2021**
**£**
**2,516,412**
**34,003**
**2,550,415**
**(76,372)**
**2,474,043**
**(2,395,683)**
**78,360**
**78,360**
**78,360**|32,922
668,293
185,478
886,693
(3,977,520)|2020
£
4,057,603
41,447
4,099,050
(3,090,827)
1,008,223
(1,841,580)
(833,357)
(833,357)
(833,357)| |---|---|---|---|---| The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 29 April 2022 and signed on their behalf by: ## **Alison Duckles CBE** Chair The notes on pages 20 to 35 form part of these financial statements. Page 18 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Statement of Cash Flows For the Year Ended 31 July 2021** |**Note**
**Cash flows from operating activities**
Net cash provided by operating activities
19
**Cash flows from investing activities**
Purchase of intangible assets
11
Purchase of tangible fixed assets
12
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
20|**2021**
**£**
**411,556**
**(122,475)**
**(4,188)**
**(126,663)**
**284,893**
**185,478**
**470,371**|2020
£
222,889
(82,505)
(32,043)
(114,548)
108,341
77,137
185,478| |---|---|---| The notes on pages 20 to 35 form part of these financial statements. Page 19 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **1. General information** NOCN Job Cards is a Charitable Company limited by guarantee registered in England and Wales, under the Companies Act 2006. The address of the registered office is Acero Building, 1 Concourse Way, Sheaf Street, Sheffield, South Yorkshire, United Kingdom, S1 2BJ. The company is a registered charity in England and Wales incorporated under a memorandum of association. The liability in respect of this guarantee, as set out in the memorandum, is limited to £1 per member. ## **2. Accounting policies** ## **2.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice, 2nd Edition 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), Section 1A of FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. NOCN Job Cards 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. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3). The presentational and functional currency of these financial statements is GBP. Values are rounded to the nearest pound. The following principal accounting policies have been applied: Page 20 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **2. Accounting policies (continued)** ## **2.2 Going concern** COVID 19 did adversely impact on Job Cards income levels in 2019/20 whilst the construction sector was in lockdown and whilst the training centres were closed. In 2020/21 the income levels rebounded back to the pre covid income levels, despite the continued impact of Covid on the UK economy, and the business is now in a strong position to continue to develop following the resolution of the CPCS transfer issues from CITB, the settlement of our legal claim with CITB, and the strong support from the sector’s employers since we have taken over the scheme. In order for the Board to determine the going concern position of Job Cards, a going concern assessment of its position was developed. The assessment included a review of current performance in 2021/22 at the point of signing the accounts, stress testing of budgets and forecast projections under a best and worst case on the statement of financial activities and cashflow position for the period up to the 31st July 2023. Consideration was also given to developing mitigations to be utilised to offset any negative change to income or expenditure levels. The mitigations would be applied depending on the financial need of Job Cards and the Group, and these may consist of any one or a mix of the following actions: reduce discretionary spend; reinstate a pay cut; do not backfill any staff leavers; and/or initiate further redundancies. Job Cards is operationally very viable as a business with continued projected surpluses to be generated in 2021/22 and 2022/23 under the best and worst case scenarios. However, in the light of the CPCS income and hence surplus levels being less than expected when the business was bought from CITB; the financial impact of Covid on the business in 2019/20 and 2020/21; and the fact that Job Cards was set up as a new charitable legal entity to purchase the CPCS business with no opening reserves, the going concern assessment is reliant on the NOCN Group’s financial viability in order to continue to fund NOCN Job Cards to allow it to pay the agreed purchase consideration as it currently falls due. As such Job Cards is reliant on NOCN remaining a going concern. NOCN has also undertaken a going concern assessment and has assessed that NOCN remains a going concern and has committed to continue to fund NOCN Job Cards until at least 31 July 2023 and the NOCN board has provided a letter of support to NOCN Job Cards Board to this effect. Following this assessment, and the letter of support provided to NOCN Job Cards, the Board have assessed that the business continues to remain a going concern for at least the following 12 months from the signing of these accounts and can pay its liabilities as they fall due. As a result they have adopted the going concern basis of accounting and the financial statements have been drawn up on a going concern basis. Page 21 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **2. Accounting policies (continued)** ## **2.3 Income** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Payments received from the government for furloughed employees are a form of grant. This grant money is receivable as compensation for expenses already incurred, and where this is not in respect of future related costs, is recognised in income in the period in which it becomes receivable and the related expense is incurred. Income from charitable activities is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Income is classed as unrestricted unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. ## **2.4 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 allocated on the portion of the asset’s use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. ## **2.5 Research and development** Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project. Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Statement of Financial Activities. ## **2.6 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 22 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **2. Accounting policies (continued)** ## **2.7 Intangible assets and amortisation** Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. At each reporting date the charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life. Amortisation is provided on the following bases: |Software development|-|straight line over|5 years| |---|---|---|---| |Goodwill|-|straight line over|10 years| ## **2.8 Tangible fixed assets and depreciation** Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases: |Fixtures and fittings|- straight line over 10 years| |---|---| |Office equipment|- straight line over 10 years| |Computer equipment|- straight line over 5 years| Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Financial Activities. ## **2.9 Stocks** Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Page 23 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **2. Accounting policies (continued)** ## **2.10 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **2.11 Cash at bank and in hand** Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **2.12 Liabilities and provisions** Liabilities are recognised when there is an obligation at the Statement of Financial Position date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. ## **2.13 Financial instruments** The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **2.14 Pensions** The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. ## **2.15 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Page 24 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **3. Critical accounting estimates and areas of judgement** Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. ## **Goodwill useful economic life and amortisation** The key judgements and sources of estimation uncertainty relate to the identified useful economic life attributable to the goodwill on acquisition of the trade and assets of CPCS which has been capitalised to the Statement of Financial Position and earn-out payment on the deferred consideration. ## **4. Income from grants and donations** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2021**|**2021**|2020| ||**£**|**£**|£| |Government furlough grants|13,242|**13,242**|124,721| Government grants were provided to assist Charity with cash flow issues during the pandemic. All income received from government grants was unrestricted in both the current and prior year. ## **5. Income from charitable activities** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2021**|**2021**|2020| ||**£**|**£**|£| |Competency scheme activities|3,753,768|**3,753,768**|2,889,752| Income from charitable activities primarily comprises theory and practical test fees, and card upgrades and extensions fees, in respect of the Construction Plant Competence Scheme (CPCS) and Construction Industry Scaffolders Record Scheme (CISRS). All income from charitable activities in the prior period was unrestricted. Page 25 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **6. Analysis of expenditure on charitable activities** ## **Summary by fund type** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2021**|**2021**|2020| ||**£**|**£**|£| |Competency scheme activities|2,897,369|**2,897,369**|3,781,913| All expenditure on charitable activities in the prior period was unrestricted. During the year, there was a redundancy accrual reversal totalling £33,957 (2020 - costs of £33,957). ## **7. Analysis of expenditure by activities** |Competency scheme activities
Competency scheme activities|**Activities**
**undertaken**
**directly**
**2021**
**£**
1,925,398
Activities
undertaken
directly
2020
£
2,514,348|**Support**
**costs**
**2021**
**£**
971,971
Support
costs
2020
£
1,267,565|**Total**
**funds**
**2021**
**£**
**2,897,369**| |---|---|---|---| ||||Total
funds
2020
£
3,781,913| Expenditure on charitable activities was fully unrestricted in the current and previous period. Page 26 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **7. Analysis of expenditure by activities (continued)** ## **Analysis of support costs** |**Unrestricted**
**funds**
**2021**
**£**
Staff costs
128,910
Depreciation and amortisation
349,840
Group recharge for support
461,453
Governance costs
31,768
971,971|**Total**
**funds**
**2021**
**£**
**128,910**
**349,840**
**461,453**
**31,768**
**971,971**|Total
funds
2020
£
155,840
459,180
610,239
42,306| |---|---|---| |||1,267,565| Governance costs are made up of audit and accountancy fees and legal and professional fees. The Group recharge for support is made up of Job Cards' share of the Group's overheads, such as facilities and IT infrastructure costs, these costs are allocated across the group entities on the basis of the share income generated by each entity within the Group as a percentage of the total income of the group. ## **8. Auditor's remuneration** ||**2021**|2020| |---|---|---| ||**£**|£| |Fees payable to the charity's auditor for the audit of the charity's annual||| |accounts|**6,900**|5,700| |Fees payable to the charity's auditor in respect of:||| |All non-audit services not included above|**2,250**|1,500| ## **9. Staff costs** |Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2021**
**£**
**1,293,389**
**101,597**
**75,989**
**1,470,975**|2020
£
1,800,509
112,874
87,950| |---|---|---| |||| |||2,001,333| Page 27 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **9. Staff costs (continued)** The average number of persons employed by the charity during the year was as follows: ||**2021**|2020| |---|---|---| ||**No.**|No.| |Employees|**38**|37| One employee received remuneration amounting to more than £60,000 in the period (2020 - None). ## **10. Trustees' remuneration and expenses** One Trustee received £5,477 during the year, this related to their previous role as an employee rather than their role as a Trustee _(2020 - £NIL)_ . During the year ended 31 July 2021, expenses totalling _£_ 108 were reimbursed or paid directly to one Trustee _(2020 - £NIL_ ). The expenses reimbursed were however relating to his employment rather than relating to his role as a Trustee. ## **11. Intangible assets** |**Cost**
At 1 August 2020
Additions
Impairments
At 31 July 2021
**Amortisation**
At 1 August 2020
Charge for the year
At 31 July 2021
**Net book value**
At 31 July 2021
At 31 July 2020|**Software**
**development**
**£**
**82,505**
**122,475**
**-**
**204,980**
**8,977**
**28,468**
**37,445**
**167,535**
73,528|**Goodwill**
**£**
**4,641,814**
**-**
**(1,325,466)**
**3,316,348**
**657,739**
**309,732**
**967,471**
**2,348,877**
3,984,075|**Total**
**£**
**4,724,319**
**122,475**
**(1,325,466)**| |---|---|---|---| ||||**3,521,328**| ||||**666,716**
**338,200**| ||||**1,004,916**| ||||**2,516,412**| ||||4,057,603| Page 28 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **12. Tangible fixed assets** |**Cost or valuation**
At 1 August 2020
Additions
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
At 31 July 2021
**Net book value**
At 31 July 2021
At 31 July 2020
**13.**
**Stocks**
Finished goods and goods for resale|**Fixtures and**
**fittings**
**£**
**17,034**
**-**
**17,034**
**1,511**
**1,703**
**3,214**
**13,820**
15,523|**Office**
**equipment**
**£**
**15,009**
**-**
**15,009**
**1,251**
**1,501**
**2,752**
**12,257**
13,758|**Computer**
**equipment**
**£**
**18,158**
**4,188**
**22,346**
**5,992**
**8,428**
**14,420**
**7,926**
12,166
**2021**
**£**
**54,060**|**Total**
**£**
**50,201**
**4,188**| |---|---|---|---|---| |||||**54,389**| |||||**8,754**
**11,632**| |||||**20,386**| |||||**34,003**| |||||41,447| |||||2020
£
32,922| The difference between purchase price or production cost of stocks and their replacement cost is not material. An impairment loss of £Nil (2020 -£Nil) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock. Page 29 **(A Company Limited by Guarantee)** ## **NOCN Job Cards** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **14. Debtors** |**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**£**
**840,393**
**-**
**68,682**
**909,075**|2020
£
513,383
93
154,817| |---|---|---| |||| |||668,293| Trade debtors are stated net of bad debt provisions of £38,182 (2020 - £18,647). ## **15. Creditors: Amounts falling due within one year** |Contingent consideration
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income|**2021**
**£**
**1,289,318**
**57,258**
**1,254**
**24,872**
**168**
**137,008**
**1,509,878**|2020
£
1,592,910
28,342
2,117,657
133,838
52,819
51,954| |---|---|---| |||| |||3,977,520| Amounts owed to group undertakings are interest free and repayable on demand. Contingent consideration in creditors due within, and due after, one year relates to the purchase of CPCS from CITB. ## **16. Creditors: Amounts falling due after more than one year** |Amounts owed to group undertakings
Contingent consideration|**2021**
**£**
**1,618,054**
**777,629**
**2,395,683**|2020
£
-
1,841,580| |---|---|---| |||| |||1,841,580| Amounts owed to group undertakings are interest free and repayable on demand. Page 30 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **17. Statement of funds** ## **Statement of funds - current year** |**Balance at 1**
**August 2020**
**£**
**Unrestricted funds**
General Funds
**(833,357)**
**Statement of funds - prior year**
Balance at
1 August
2019
£
**Unrestricted funds**
General Funds
(23,841)|**Income**
**£**
**3,767,010**
Income
£
3,014,473|**Expenditure**
**£**
**(2,897,369)**
Expenditure
£
(3,781,913)|**Gains/**
**(Losses)**
**£**
**Balance at**
**31 July 2021**
**£**
**42,076**
**78,360**
Gains/
(Losses)
£
Balance at
31 July 2020
£
(42,076)
(833,357)| |---|---|---|---| ## **18. Analysis of net assets between funds** ## **Analysis of net assets between funds - current year** |**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
34,003
Intangible fixed assets
2,516,412
Current assets
1,433,506
Creditors due within one year
(1,509,878)
Creditors due in more than one year
(2,395,683)
**Total**
78,360|**Total**
**funds**
**2021**
**£**
**34,003**
**2,516,412**
**1,433,506**
**(1,509,878)**
**(2,395,683)**
**78,360**| |---|---| Page 31 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **18. Analysis of net assets between funds (continued)** ## **Analysis of net assets between funds - prior year** |Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|Unrestricted
funds
2020
£
41,447
4,057,603
886,693
(3,977,520)
(1,841,580)
(833,357)|Total
funds
2020
£
41,447
4,057,603
886,693
(3,977,520)
(1,841,580)
(833,357)| |---|---|---| ## **19. Reconciliation of net movement in funds to net cash flow from operating activities** |Net movement in funds before other recognised gains/(losses) (as per the
Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Amortisation charges
Increase in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**|**2021**
**£**
**869,641**
**11,632**
**338,200**
**(21,138)**
**(240,782)**
**(545,997)**
**411,556**|2020
£
(767,440)
6,433
452,748
(18,026)
85,638
463,536
222,889| |---|---|---| Page 32 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **20. Analysis of cash and cash equivalents** |Cash in hand
**Total cash and cash equivalents**|**2021**
**£**
**470,371**
**470,371**|2020
£
185,478| |---|---|---| |||| |||185,478| ## **21. Analysis of Net Debt** Cash at bank and in hand |**At**|**1 August**||**At 31 July**| |---|---|---|---| ||**2020**|**Cash flows**|**2021**| ||**£**|**£**|**£**| ||**185,478**|**284,893**|**470,371**| ## **22. Pension commitments** The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £75,989 (2020 - £87,950). Contributions of £168 (2020 - £34,030) were payable to the fund at the reporting date. Page 33 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** ## **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **23. Related party transactions** At 31 July 2021, an amount of £Nil (2020 - 2,117,657) was owed to NOCN, a fellow group entity. At 31 July 2021, an amount of £Nil in 2021 and £1,440 in 2020 was owed to One Awards, a fellow group entity. During the year the Company was recharged expenditure of £Nil (2020 - £610,239) from its parent company in relation to support costs. Other transactions with related parties were as follows: |||**Amounts**||Amounts| |---|---|---|---|---| ||**Income/**|**outstanding**|Income/|outstanding| ||**(costs)**|**from**|(costs)|from| ||**2021**|**2021**|2020|2020| ||**£**|**£**|**£**|**£**| |Laing O'Rouke Civil Eng Ltd|**364**|**589**|999|3,049| |BAM Nuttall|**3,090**|**672**|2,383|-| |CISRS|**-**|**-**|(111,214)|-| |CITB|**26,050**|**1,232**|-|-| |CITB (CISRS)|**66,630**|**4,710**|-|-| |Van Elle (Holdings) Ltd|**10,247**|**4,742**|-|-| |P Flannery|**6,038**|**1,401**|-|-| All related party transactions are undertaken under normal commercial terms. Transactions with Laing O’Rourke Civil Engineering Ltd relate to the issue of job cards. Alison Lamplough is an employee of Laing O’Rourke Civil Engineering Ltd. Transactions with BAM Nuttall relate to learner registration, certification fees and CPCS cards. Timothy Brownbridge is a Academy Manager at BAM Nuttall. Transactions with CISRS relate to the commission paid to CISRS for issuing CISRS cards. David Mosley is a director of CISRS. Transactions with CITB relate to learner registration, certification fees and CPCS/CISRS cards from the NCC and NSAC centres that form part of CITB. Graham McPhail is an executive director of CITB (Resigned May 20). Transactions with Van Elle (Holdings) Ltd relate to learner registration, certification fees and CPCS cards. Michael Mason is a Director of Van Elle Limited (Resigned November 20). Transactions with P Flannery relate to the issue of Job cards. Paul Allman is a Director at P Flannery Ltd. There were no other related party transactions during the period. Page 34 ## **NOCN Job Cards** ## **(A Company Limited by Guarantee)** **Notes to the Financial Statements For the Year Ended 31 July 2021** ## **24. Controlling party** The immediate parent and ultimate controlling parent of the company is NOCN, a Company registered in England and Wales, with registered address Acero Building, 1 Concourse Way, Sheaf Street, Sheffield, United Kingdom, S1 2BJ. The smallest and largest group in which the company's results are consolidated is that headed by NOCN. The consolidated accounts of this company are available to the public and may be obtained from the company's registered address, as set out above. No other group accounts include the results of the company. ## **25. Events after the reporting period** In December 2021 NOCN settled its legal claim with CITB in respect of the CPCS business and the Statement of Financial Position reflects the agreed revised purchase price liability. Page 35