Fircroft College of Adult Education Report and Financial Statements 16 Months Ended 31 July 2024 Company number.. 14776636 Charity registration number: 1204069
Key Management Personnel, Board of Governors and Professional advisers Key man&gement personnel Key managanent personnel were ffpr¢sented by the following in 2023124.. Mel Lenehan Michael Conway Jones Principal and CEO: Accounling Officer Vice Principal Board of Governorg A 11 list of Governors is given on pag¢5 15 & 16 of these financial statements. PrlDclpal and Registered Offlct 1018 Bristol Road, Selly Oak. Birmingham B29 6LH Profeonal advtsors FiD•ncl41 Statements and Regul*rity Audltors Buzzacott LLP 130 Wood Street London EC2V 6DL InterDal Audltors RSM St Philips Point Temple Row Birniin8h8m B2 SAF Bankers Lloyds Bank plc City Office PO Box 72 Bailey Drivc Gillingham Bu8ines5 Park Kent ME8 OLS Investment Minigement Evelyn Partners 9 Colmore Row Bimiingham B3 2BJ
FIRCRoFf COLLEGE OF ADULT EDUCATION Contents Contents Pag¢: Report of the Governing Body 14 Statement of Corporate Governa¢ and Internal Control 23 Govcrning Body's stalcmcnt on the Colleg¢'s regulatory, propriety and compliance with Funding body tem 8nd conditions of funding 24 Sialcmcnl of Responsibiliti of the Governing Body 26 Independent Auditor's Report to the Governing Body of Fircroft College of Adult EdUtIOn 31 Reporting Accountant's R¢port on Regularity to the Governing Body of Fircroft College of Adult Education and the Secretary of State for Education actin8 through th¢ Department for Education 33 Statement of Comprehcnsive Income and Expenditure 34 College Stsiement of Changes in Reservcs 35 Balancc Sh¢et as at 31 July 36 Statement of Cash Flows 37 Notes to the Accoun18
FIRCROFT COLLEGE OF ADULT EDUCATION ort of the Governin NATURE, OWECTIVES AND STRATEGIES The members of ihe Governing Body present their rcwrt, which includas the strategi¢ report, and Ihc audited financial sialemcnls for the period ended 31 July 2024. LegAI status Fircroft College was initially founded in 1909 and then re•established as a charitable trnsl on l O Seplcmber 1979. It becamc a clwitable incorporated cotnpany on I" August 2023. by transfer from the Trust and its status as a designated instiiulion under the Further and Higher Education Act 1992 for the purpose of conducting residential adult education was unaffcclcd by incotyoration. Unlike mainstream Furthcr Education collcgcs. Fircroft College is regulated by the Charity Commission. It has no subsidiary undertakings. The College is also subject to regulation from other bodies such as DtE, and the Education and Skills Funding Agency (ESFA). In the 2022123 Annual Financial Statements the College announced ils inlenlion to move from its charitable trust status to an incory)oraled charitable body. This was achieved al 00.01 am on I" August 2023 through an agreed trdnsfer of all slaff, assets liabilitie5 and all operations and fiCtIOnS of the Collcgc to Fircroft College of Adult Education. Tlu's did noi change the Coll¢ge struclure, fidIng or charitable purpose. This new company, FÉrcroft College of Adult Education is limited by guarantee, and registered in England, number 14776636, and registered with Charity CotnTnission as number 1204069. Goveming Body is evaluating potential future oplions for the charitable trust. To align with this Change in legal status the College developed ils successor strategic plan, which was approveAI at the first Governing Body of Fircroft College of Adult Education Ltd on 12th July 2023. This stralcgy will n through until 2030 and aligns with the LfN 2030 plan of action for People, Planet and Prosperily. Fircroft College Trust highlighted its int¢nlion to movc to an incorporated Structure in their 2021122 Annual Financial Stalemenls. On 29 November 2022, the Office for National Statistics reclassified all college corporations lo Central Government scclor with immediate ¢ff¢ct. The College (with all Further Education (FE) colleges) must now meet the ovcrall requirements in HM Treasury's document Managing Public Money (MPM) and other related obligations. (As collected in the leller dated 29, Novcmber 2022 from the CEO of the Education and Skills Fundi1 Agency (ESFA) to all Accoulltin¥ Officers, and ESFA issued bile sized guides). Public Benefit Test The members of thc Governing Body, who ar¢ directors and trustees of the charity, are disclosed on pog¢ 15. In setting and reviewing the College's strategic objcctivcs, the Governing Body has had due regard for the Charity Commission's guidance on publi¢ b¢n¢fil and particularly upon its supplementary guidance on the advancement of cducation. Th¢ guidanc¢ sets out the requirement that all organisations wishing to be recogntsed as charitie5 must demonstrate. expliciily, that their aims are for the public benefit. The student slalistics on page 6 indicate tbe extent to which the College has met its own "social justice" mission.
FIRCRowf COLLEGE OF ADULT EDUCATIOY4 Report of the Governing Body {continued) Str4tegi¢ Report College objects And mission As set out in its Articles of Association. the College'5 charitable objects arc 'foY the public benefii, provide and promole aduli, fyrther and higher education including, wiihouf limitation, the provtsioA of residential education" The College's current mission is 'To promote social and climate/envin)nmentaljuYtice by providing adult with an excellent learning eTivironmeAtforpersonal. professional andpoliiical development,. Values Following an extensive review tn 2023-24 academic year, the College has r¢vi$¢d ils value8. These now are,. Supportive Collaborative Anti-racist Brave Empowering Authentic ImplemeDtatlon of strnlegle plan Following a strat¢gi¢ review in 2018, the College iwl a five year slralcgy and implementation plan which focused on ensuring the long Icrm sustainability of Ihe College. This buili upon the su¢sS of its prcvious strategy and was emb¢dd¢d across the College in lenns of its delivery for 2023124. The college's stral¢gic themes and goals for 2023124 were reviewed by college leaders. The themes were revisa to. Learning, Wcllbeing, Equity, Digital and Environrnent and Sustainability. Following Ihc Covid- 19 pandernic, the college revised its strategic plan under the themes of. Respond, Recover, Restore aTh Rebuild. The College's Strdtegic Goals ihroughout the period were to.. l. Provide an excellent education environment for all 2. Ensure the long term sustainability of the College 3. D¢v¢lop the College's ¢xt¢rnal profile and build on its rcputation The College's Strategic Goal moving forward to 2030 is" To 5UPPOrt the development of global sustainable citizens through r¢sidential adult education.
FIRCROFT COLLEGE OF ADULT EDUCATION Report of the Governlng Body (continued) CURRENT AND FUTURE DEVELOPMENT AND PERFORMANCE Student numbers The College had 38 ESFA, and 1,312 WMCA funded enrolments during 2023124 against the 2022123 figures of 37 andl,031. Consequently, the college was successful in meeting it5 original funding allocation on its WMCA ASB allocation (by £30,119 102.9 % ) and met its grant allocation on Community allocation (£1,067,337 100 %) whilst dclivering £40,000 of its Free Courses for Jobs allocation (£90,600). In line with this delivery, the college also secured £130,000 in sidential income alongside its Free Courses for Jobs allocation. Tn line with ils mission, Fircroft College rectvits high proportions of learners who have few educatiotial qualifications (defined as none or ai level l), are on mcans tested benefits or allract additional lldIng (disadvantaged uplift) by nature of the deprived area in wkn'ch ihey live or their individual circumstances (e.g. mental health, substance abuse or ¢x-offender)'. CURRENT AND FirruRE DEVELOPMENT AND PERFORMANCE (continued) Total ESFA funded Enrolments Total WMCA fundèd Enrolménts Enrolments wlth few educational ualifications Enrolments claiming beneflts Access Gourse Short ¢ourses - Adult Skills Short courses Community Leamin Total 23 465 824 21 406 675 167 716 32 889 1,102 Student achlevementS Th¢ college njns accredited and unaccredited courses ranging from I day lo 30 w¢eks and from Entry 3 10 Level 3. tn previous years our results have been significantly above the latest national Qualification Achiev¢m¢nt Rates al every provision level, 2023124 this has continued to be the case. There has been a significant drop in achicvcment in certain ar¢as and this relates an increase in the number of leamers with few educational qualifications and the compounding results of covid-19. Since 2022123. Ihe volume and complexity of learners support n¢¢ds have greatly increased. 202212.1 Pass Ra¢e 2023124 P4ss Rate Provision Leyel Retention Rate Achlevement Rate Retention Rate Acblevement Rate Entry Level 3 Level I Level 2 Level 3 92.80/0 95.5% 81.60/. 80.6/ 92.90/0 86.20/0 94.oo/o 97.9/0 88.3% 94.6% 92.00/. 90.9/0 loo/ 74.1% 80.6% 87.0%
FIRCROFT COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) CURRELYT AND FufuRE DEVELOPMENT AND PERFORMANCE (continued) Curriculum Developments In 2023124 the college moved its Access progrdmmes to deliver Free Courses For Jobs (FCFJ) funding for the rSt titne. In line with our Accountability Agreement with DfE, we delivtted the new Digital Fullclional Skills qualification, a Level 3 Digital prograrnme and a Green Changemakers proatme. Wc dclivered two Local Skills Irnprovement Fund (LSIF) projects, leading on the Grccn Skills strand across the whole of Colleges Wesl Midlands. We developed a tmpact Framework mapped lo our new college Strategy to measure the difference we make. Ofsted Inspeciloll Fircroft had an etthanced Ofsted inspection in October 2023. We were grnded GcM)d overall and Outstanding for Behaviour and Attitudcs. Inspectors judged that Fircroft was an inclusive Icarning environment,, reaching leamers furthest from Ihc labour market, and that statT LLnderstand ihe challenges and needs of learners. T¢achers were described as" skilled" aT)d "ambitious for learners. Thc board of governors was described as "experienced and dedicated" A key areA fordevelopmcnt was lo work more ¢losely with employers to develop the curTiculum. Perforniance Indlcators The college has a set of KPIS which are reported lo the Management Team on a monthly basis. These are embedded into the business cycle of the Education Commille¢ and we have now built up 3 years of data to discuss with govemors as trends. The College is required to complcle the annual Finance Record for the ESFA. The Finance Record produces financial health grading (as defined by the ESFA), and the College grading for 2023124 is Good (2022123 Good). Fircroft Continues lo be recognised for the leadership we show in rclaiion lo our mission= one ofihe first ¢olleges to be recognised as a College of Sanctuary early mcmbers of the Black FE Leadership Network rSt college lo declarc a climate emergency awarded the Wiler award for Campus. Health, Fo(Ml alid Drink at the Green Gown Award5 for our success in moving to a plant-based menu Winner of learning provision at 2023 Festival of txaming awards Future pr05pe¢ts 2021122 marked the devolution of primary AEB fimding away from ESFA to WMCA. WMCA issued contracts equal in value, and description to the legacy contracts previously issued by ESFA for 2020121, and have subsequently increased th¢5¢ by ££438k (26.1 /0) for growth funding in the period 2023124. Discussions ar¢ continuing belwcen the WMCA and the College inio 2024125 10 deterniine a revised work and Content profile to match the Combined Authorities priorities.
FIRCROFt COLLEGE OF ADULT EDUCATION Report of tbe Governlng Body (continued) CURREwf AND FUTURE DEVELOPMENT AND PERFORMANCE (continued) We ntinUe lo plan a full progrdmme of courses in order to meet our WMCA and ESFA contract targets. FINANCIAL posrrioN FlnAneial results Including flDaDciAI objectlves The College reports a total surplus on all activity of £357,384 (2022123 deficit of £89.533). Operationally the College reported a £105,218 Surplus before investment g84ins (2022123 £66,224), reflecting the success of its involvement in LStF projects against the combined pressures ol cost itthation and continuing llal tine funding on delivery of funding contracts during the 2023124 ndIng year. There was a wel¢ome increase the value of its invcsttnent portfolio across the period due lo improving ¢wnomic circumstances. The College eontinucs lo benefit from good lev¢ls of investment income, which reached £159,249. The valuation of its investment portfolio incrcascd by a net £227,586 (6.2 % ) due lo changes in market values. of which £245,648 are unrealised gains on valuation. The total amount recognised in the Stst¢menl of Comprehensive Income relating lo investments is £411,415 (£(19,410) in 2022123). The College has as5¢8sed 118 delivery of funding eontra¢ts. and calculated it has met 2023124 perforniance targets for income (within approved tolerances). Cash flow has be¢n CarllY managed during 2023124, with balances increasing by £84.083 over th¢ p¢riod. The College has not needed to seek support from external sources, and 18 free from borrowings. The financial obj¢cliv¢s scl by the Governing Body and their achi¢vcment are set out below: ObJectlve8 Achieved? Cash days (including short lem investments) in ex¢e5s of 25 Currcnl ratio in excess of 1.5 Reserves more than 2 months core costs Surplus for the period on core aclLVlties excess of £20,000 15 % - 250/0 of income to be non-governmenral No morc than 70D/Tr of income to be payroll related Generate cash inflow from operating activities Yes Yes Yes Yes Yes Yes The College has accumulaied unrestricted revenue reserv¢s of £6,l45.554 which includes £967,500 for the r¢cognJiion of non-govcrnment grants under the Accounting Standard FRS 102 and is therefore tt available for distributiotL bul lo offset future depreciation charges.
FtRCROFT COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) FINANCIAL POSITION (continued} Reserves Poliey During the period the Governing Body has reviewed its Reserves Policy. and has evaluated those reserves against best practice to cover restricted funds, non4listributable capital grants and essential infraStruCre for th¢ wntinuance of essential education servic¢s for beneflciaries. These reserv¢s equate to £3.0m. A fLher contingency reserve of £l.Sm is considered appropriatc to cover unforeseen circumstances including funding reductions / maintaining adequate working pItal. The final £1.5m is considered available for use and has bccn designated to SUPEM)rt capital development (moving to net zero) at £1 m, and strategic development (supw)rting susiainabilily) at £0.5m. The deployment of these rcscrvcs will be balanced against the availabilily of cash fimds to support these developmcnts, and the operational impacts of using investment assets. The College will review its level of reserves arLd its policy on an annual basis. The College policy meets the requircmenls of the ESFA College Financial Handbook which is effective from l August 2024. CapltAI bAse and planned maintenance The College hos a long l¢as¢ interest in the Bristol Road property which nms lo 2055, which includes th¢ responsibility for th¢ mainl¢narLce of the buildings and grounds. The College operates an annual maintenance cycle and has implemented a 10 year capital plan. llu's plan ulilises approved external funding as well as internal nded activilies which are key to achieving the coll¢8C'S Sustainability targets for 2030. FEC ben¢hmarks for maintenance expenditure were met. Tre•$ury poli¢ies and objecdves Treasury management is the management of th¢ College's cash flows. its banking transactions" the effective Control of the risks associated with those activities,. and the pursuit of optimum perforniance consistent with those risks. The Collcge has a separate treasury management policy in place, wtu'ch has been updatcd and approved by Operations Committee to ensur¢ compliance with HM Treasury requirements under Managing Public Money following the claSsification of FE College5 to Ihc Central Government Sector. Under this policy any borrowingsloverdrafts by the College must be pre-approved by HM Treasury. Cash flows and Ilquldity The Collcgc has seen a net cash infiow in 2023124 of £84,083 (2022123 inflow of £240,501). At 31$1 July 2024 the College had £165k of short lenn investmentslcash dcposits with a further £3,926k of listed investments. The College Iw no bom)wing5. li manage5 Its surplus cash deposits lo ensure the appropriate balan¢¢ between interest generation and working capital.
FIRCRoFf COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) FINANCIAL POSITION (continued) Trade unlon fAcIIIty tlm¢ The Collegc does meet the criteria forpublishing information under the Trdde Union (Facility Time Publication Requirements) Regulations 2017 on facility time arrangements for trade union officials at the Collegc. PAynJent perforniance The IAie Paym¢nl of Commercial Debts (Interest) Act 1998, in the absence of agreement lo the contrary, requires organisations to pay invoices 30 days after either; the customer gels the invoice. or thc delivery of the goods or service (if this is laler). During the accounting period l August 2023 to 31 July 2024, thc College paid 99 per cent of its invoices within 30 days. The Colleg¢ incurred no interesl charges in respect of late payment for this penod. RESOURCES The College has various resources that il can deploy in pursuit of ils Strategic objectives. Tangible resources include the buildings al the Bristol Road 51t¢, which are on a long lease (to 2055) from Bournville Village Trust. (The lease was reassigned to the Coll¢ge from the forn]er Tntsl at incorporation, on application to Bournville Village Trust) Financial- The Colleg¢ has £6.2m of net assets, with a turnover of £2.9m. People - The Coll¢ge employs 53 people (expressed as average headcounl basis). of whom 13 are teaching staff. Repuiarion The College has a very good reputation locally and nationally. Maintaining a quality brand is esscnlial for the College's su¢c¢ss at attracting student5 and building external relationshj'ps. The College ha8 fu1[Sed and approved ils lalesi strategic plan which will Llm from 2025126 onward. PIUNCIPAL RISKS AND UNCERTALNTIES Governors agreed its Risk Management Policy in March 2018. The College Risk Register Continucs to follow this methodology. The key risk elements at the close of 2023124 are.. The negative effects of continuing flatline AEB fimding, especlally against growing inflationary pressures, energy and cost of living increas¢s. CorLtinuing uncertainty relating lo residential uplifts tnadc by fijnders {WMCA and ESFA) Continuing uncertainty relating lo broadcr funding arrernentS further to the D£E's funding and a¢wuntability consultation. Cyberlliansomware risks, with PK)lential loss of system capability anor loss of data Staff turnover, retention and recruitment, with QWIllg difficulties lo attract and retain staff Staff wellness and wellbeing, impacting delivery. io
FtRCROFT COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) PRtNCIPAL IUSKS AND UNCERTAINTIES (contiDued) Going Concern The activities of the Colleg¢. together with the factors likely to affect its fvture development and pCrfornwe are set out in the Operating and Financial Review. The financial position of the Coll¢ge, ils cashflow. liquidity and borrowings arc described in ihe financial statcments and accompanying notes. The College submitted a detailed financial forecast to the ESFA in July 2024, which provided clear analysis and cornmentary on the inllnedial¢ fuuncial years 2023124, 2024125 and 2025126. also that ihe College has appeared to recrnit well in ternis of sludents for the academic year 24125. accordingly the College has a reasonablc expectation that it ha5 adequate resources to continu¢ in operaiional existence for the foresccablc future, and for this reason will adopt the going concern basi5 in the preparation of its financial ststemenls. STAKEHOLDER RELATIONSHIPS In line with other colleg¢s and with universities, Fircroft Coll¢g¢ has many stakeholders. These include: Studenis Funding Bodies including as our main funder the West Midlands Combined Authority (WMCA) and the ESFA Staff, GovOrS and volunteers The voluntary s¢Ctor- locally, regionally and nationally- including as employers Communily groups - locally and r¢gionally Other FE and HE insiilutions parti¢ulArly the other IA)ng-Tern) Residential Colleges and other Institute8 of Adult Learning and regional GFE colleges through the CWM partnership {Colle8es wesl Midlands) Birn]ingham and oih¢r LEAS through the Adult and CommurLity Learning Alliance (ACLA) FE Collcges through Colleges West Midlands Employcrs dirlLY relaied lo our cutTiculum offer. The College reco8nis¢8 the importance of these relalionships and ¢ngag¢s in regular communication with them through social media, regular meetings and by participating in relevant networks, joint funding bids, projects and spccial initiatives. Since I" August 2021 the majority (97 % ) of ihe Coll¢ge's AEB (including Community Learning) income comes directly Ihrough the West Midlands Combined Authority. The Collcgc is & member of the Colleges West Midlands Group (CWM) and the West Midlands Adult and Community Learning Alliance (ACLA). The WMCA engages regularly with both groups on AEB strategy and planning. Thc College also engages al a contract level regularly with WMCA staff. The College uses the WMCA AEB priorities in its curriculum planning. In May 2024 th¢ College published its accountability agreernenl which outlines the priorities of the college in meeting in the Wanvickshire and West Midlands Local Skills Improvement Plan (LStp)- StAff and student involvement Employee engagement, consultalion and communication is a fundamental part of the cwrent College objectives. An Employee Voice Team is in plac¢. and meets regularly, that is made up of 2 rcprcscntatiyes from each area of the college, 2 employee representatives, the union rq)resenlativ¢ and HIL This fonull is a Iwo way mechanism for employecs and management to collabornle on changes and projects that affect working
FIRCROFf COLLEGE OF ADULT EDUCATIO Report of the Governlng Body (continued) STAKEHOLDER RELATIONSHIPS (continued) life at the College. The College produces a regular newsletter that aids communication and tncreases eDgagem¢nt. Staff are invited to ternily briefings that cover strategy, news and issues. Each academic year two student governors are elected to serve as members of the College's Governing Body, and they join two staff govemors who are elted for a three year lem. The Coll¢ge has a Student Engagement Strategy. Sdents are invited to give feedback to the College through learner satisfaciion surveys, feedback fonns and regular focus groups and fora. This year the College has also established a group of student champions. In March 2022 ihe College was re-accrediled with the Matrix kite rnark in relation lo the Inf0mtiOn. Advice and Guidance provided lo students and staff. In December 2021 the College was r¢-awarded wilh Gold status by Investors in People. Equallty, Dlverslty and Inclu51on The College is committed to ensuring Equality, Diversity and Inclusion for all who leam, work and use the College's facilities. Wc rcspect and value posilively diffcrences and will nol toleral¢ any fonn of behaviour or activity that discriminates without proper justification on the grounds of gender, race, disability, religious or cultural belief, sexual orientation, marital status, family rcsponsibilities, age, unrelated criminal convictions and economic status. The College publishe8 Its Equality, Diversity and Inclusion policy on its website. The College holds focus groups involving leamers atld staff who discuss solutions for issues affecting the College and &re involved in making recommendations and setting targets. The College's key slratcgic plan responds to both social and climate justi¢¢ challenges. Updates are regularly reported lo the (yoveming Body. Fircroft College is a Disability Confident ¢mployer and has conunitted to the principles and obje¢lives of the Disability Confident schcmc. The College considers all employment applications from disabled persOnS,,bring in mind the aptitud&s of the individuals concemed, and guardnlees an interview to any disabled applicant who meets the esscntial ¢ril¢ria for the post. Wherc an exi51ing employee becomes disabled, every effort is made to ensure that employment with the College continues. The College's policy is lo provide Iraining, career development and opportunities for promotion that are, as far as possible. identical to those for other members of staff. This is also refl¢Cl in the college policies as they are updated. The College is passionalc about providing staff and governors (as needed) with outstanding training covering issu¢s of equality, diversity and inclusion. Disability 5tatemeDt Thc College seeks to achicve the objectives set down in the Disability Discrimination Act 1995 as amended by the Special Education Needs and Disability Acts 2001 and 2005 and Equality Act 2010. The College takes account of disability acc&%s in all rolling maintenance plans and new build initialivcs. There are Seral ground floor bedrooms adapted to enable students with disabilitics to engage in rcsidential learning. Acce55 in and around the building has also been improved. 12
FIRCROFT COLLEGE OF ADULT EDUCATION Report of the Governlng Body (continued) b) Any appeals against a decision not to offer a place to a student are dcalt with under the complainls policy and procedure. These are monitored for protect characteristics. The College has an ongoing prograrne of staff development to ensure that all staff are aware of the issues and needs of people with learning difficulties andlor disabilities. Staff membws are available to advise and make atTangements for any student or member of staff who require any additional support including the pubase of specialist equipment or support staff. d) The College has a range of specialist equipment iDclLding assistive t¢CEOI08Y available for use by students and staff. Arrangements for counselling and welfar¢ scryices can be made available to students. Staff have access to a 24 how employee assistance programme. Dlsclosure of Informltlon to •uditorg The governors who held office at the dale of approval of this report confirm that, so far as th¢y are each aware, there is no r¢l¢vant audit inforniation of which the Coll¢ge's auditors are unaware- and each governor has taken all the steps that h¢ or she ought to have taken lo be aware of any rel¢vont audit information and lo establish that the College's auditors are awa of thal infonnation. The report of the Governing Body, including the strategic report, has been approved by order of the members of th¢ Qov¢rning Body on I l Decembu 2024 and signed on its behalf by.. Prof G Layer ChAir 13
FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Cor rate Governance and Internal Control Corporate Governance The following statement is provided to enable readers of the annual report and accounts of the Collcgc lo obtain a better understanding of its governa1 and legal structure. This statement covers the period from 3 April 2023 10 31 July 2024 and up to the dale of approval of the Annual Report and Financial Statements. Compliance with ftmding rules and the ESFA College Financial Handbook was only applicablc from thc point ESFA funding to the College begar4 b¢iag l Augusl 2023. The College endeavours to cOndt its business.. in accordance wilh the seven principles identified by the Committee on Standards in Public Life (selflessness. integrity, objectivity, accountability, operjness, honesty and leadership),. ii. in accordance with the guidance lo collcges from the Associatioll of Colle8es in The Code of Good Governance for English Colleges {"the Foundation Code"),. and iii. having due regard to Ihe UK Corporate Governance Code ("Ih¢ Code,) insofar as it is applicable to the furthcr education sector. The College is committed lo exhibiling besl practice in all aspt$ of coryorale governance and in particular the Colle8e ha5 adopted and complt¢d wilh ihe Foundation Code. We do not Comply with the UK Corporate Govern#nLe Code. However, we have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of Ihc UK Corporate Govemance Codc we consider to be relevant lo the further education sector and best practice. tn the opinion of the Governing Body, the College complies with the provisions of the Code in so far as they apply to the Further Education sector, and it has complied tOughoUt the period ended 31 July 2023. The Governing Body recognises that, as a body entrusted with both public and private fvnds, it has a particular duly io obsetve the highest standards of corporate govcmance at all times. In carrying oui ils responsibilities, it lakes fiill account of The Code of Good Governance for English Colleges issued by the Association of Colle¥e8 in March 2015, which it fomially adopted in July 2015. As a re81ster Charity, the Governors. who are also the Trust¢¢s for the purposes of the Chariiies Act 2011, confirni that they have had due regard for the Charity Commission's guidance on public benefit and that the required slalements appear ¢lsewh¢r¢ in these financial statements. 14
FUiCROFT COLLEGE OF ADULT EDUCATION Statement of CorpoYAte GovernAll¢e and Internal Control (continued) The Governlng Body The govemors who served on the Governing B¢Jdy (GB) during the puiod and up lo the da¢¢ of sItUre of this report are sel out below: AlteDdattee Name Date of Appointhient Term of offiee Date of reslgnation Category of rnembershlp Commlttees Served GB Other Chair of G ando 3 April 2023 3 years Independent 515 919 Prof Geoff Layer Reappointed Nov-24 Ex- Officio Ms M Lenehan (Principal Ex-officio 415 316 3 April 2023 ESS,0. 3 April 2023 3 year8 31-Jul-2024 Independent 415 414 Chair of R Mr T P¢nitt Panninder Singh fjarcha 315 213 ESS 3 April 2023 3 Years IDd¢pendent Robert Masullga 3 April 2024. lan-24 R¢4pp 3 Years Independent 415 718 AandG Sangeeta Soni 3 April 2023 3 Yearg 31 Dec23 Indep¢nd¢nl 012 oli ESS Claire Mul¢h¢ll 3 April 2023 3 Years 26 Sepi 23 Staff governor Joyh Brick]ey 3 April 2023 3 Years IOAug23 governor 3 April 2023 inied 3 Years Independent 515 616 G and Chair of ESS Eluned Jones Sept-24 Carole Parkes 3 Years Independent 316 416 ESS 3A .12023 Rea inied (Vice Chair Since Aug-24) Saiqa Andleeb 3 Years 3A ri12023 Independenl 115 213 15
FIRCRowf COLLEGE OF ADULT EDUCATIO Statement of Coryorate GovernaDee and Internal Control (continued) The Goveruing Body (continued) N*me Date of Appointment Term of offlee Date of reslgnalion Category of membershlp Attendance GB Other Commlttees served Ben Shore G and Chair of ri12023 3 Years Independent 415 717 Surrinder Bains -3 A ril 2023 3 Years Indeptndent Chris Kenny ri12023 3 Years Independent 415 313 Charlie Bilborough Blacksiock DuralLOn of ¢ours¢ SNden( governor 113 Oct-23 213 ESS 24Ma 24 Andrew Travi5 Duration of course Student governor Oct-23 24Ma 24 414 213 ESS John Holford Oct-23 3 Year8 Independant 415 213 ESS HaTpr¢e¢ Samra Oct-23 3 Years Ind¢p¢nd8ni 014 313 Lorna Phillip Jan-24 3 Years Independant 213 ESS Katharine Clough Jan-24 3 Year5 Independant 113 Elliot Moody 3 Years Jan-24 Staff Governor 113 oil ESS Committee key A- Audit CoinTnitt¢e ESS Education and Student Services Committee Committee O= Operations Comrnitl¢¢ R= Remuneration Committee GAGovemance Attendance infomlation shows Goveming Body attendance and then Committee attendance during the period to 17th July 2024 (last meeting of 202312024). It is the Governing Body's responsibility to bring independent judgement to bcar on issues of strategy. perfom)ancc, rcsources and standards of conduct. The Gov¢rning Body is provided with regular and timely inforntIOn on the overall financial perfomiance of the College togeiljer with other infornialion such as perforniance against funding targets, proposed capital expenditure, quality mattcrs and personnel related mattcrs such as health and safdy and eThvironmental issues. Thc Goveming Body mects. as a millimum, four times each year. The Governing Body conducts its business through a numbcr of corDmittees whi¢h are ¢stablished each year. For 2023124 the following were in place. Education Committee. Operations Committee. Staff and Student 16
FIRCROFT COLLEGE OF ADULT EDUCATION statement of Coryorate GovernAnce and Internal Control (continued) Services Committee, Remuneration Committee, Audit Committee and Govemance Committee. Full minutes of all meetitlgs, except ihosc deemed io be confidential by the Governing Body. are available on application from the Clerk lo the Governing Body at.. Fircroft College, of Adult Education. 1018 Bristol Road, Selly Oak, Birnlingharn, B29 6LH. The Clerk lo the Governing Body maintains a regislu of financial and personal int¢rests of the Governors. Thc register is availabl¢ for inspection al Ihc above address. All governors are ablc to independent professional advice in fifftheranc¢ of their duties at the College's expense and have a¢¢ess to the Clerk lo the Governing Body, who is responsible to the Governing Body for ensuring thai all applicable procedures and regulations aTe complied with. The appointrnent, evaluation and removal of the Clerk are matters for the Governing Body a5 a whole. The GovernlDg Body Fomial agendas, papers and reports are supplied to governors in a timely manner, prior to Governing Body mectings. Briefings are also provid¢d on an ad-hoc basis. The Governing Body has a strong and independent non-executive element and no individual or group dominMt¢s ils decision making process. The Governing Body considers ihat each of ils non-execulive members is independent of managemenr and free from any business or other relationship which could materially interfere with the exercise of their independent judgement. There is a clear division of responsibility in that the roles of the Chair of the Governing Body and Accounting Offic¢r are separate. Appolntments to the Governlng Body Any new appointments lo the GOV1ng Body are a malter for the eonsideralion of the Governing Body as a whole. The Governin8 B(Kly has a Govcrnance conunittee, which is comprised of at l¢ast three govemors and is responsible for the sclection and nomination of any new member for the Governing Body's consideration. TELe Governing Body is responsible for ensuring that appropriate training is provided as required. Member5 of the Gov¢rning Body are now appointed for & lern of oifice not exceeding 3 y¢ar5 in the fwsi instance. Remuneratlon Committee Thc R¢rnunernlion Cornmittee's responsibilities are to make recommendations lo the Governing Body on the remuneration and benefits of th¢ Accounting Officer and other key management personnel. Details of remuneration for the period ended 31 July 2024 are set out in not¢ 7 to the financial slatun¢nts. 17
FIRCRoYf COLLEGE OF ADULT EDUCATION Statement of Corporate Governan¢e and IDternal Colltrol (continued) Audit Commlttee Th¢ Audit Committee comprises three governors of the Colleg¢ (who exclude the Accounting Officer and Chair) and an external member. The Committee operates in accordance with written terms of reference approved by the Governing Body. The Audit Committee tne¢ts on a tlY basis and provid¢s a fonm) for rep)rting by the College's internal. regularity al fmancial statements audiiors, who have access lo the Committee for independent discussion, without the pregcncc of College rnanagement. The Committ¢e also receives and considers reports from the main FE nding Ix)dies as they affect the College's business. The Collcge's internal auditors review the systems of internal control. risk management controls and governance process¢s in aecordance with an agreed plan of input and report their findings lo management and the Audil Committee. Management is responsible for the implementation of agr¢ed audit recommendations, and internal audit undertakes periodic follow up reviews io ensure such rQnnCndatios have been implemented. The Audit Committe¢ also advises Ihc Goveming Body on the appointment of internal. regularity and financial statement auditors and their remuneration for both audit and non-audit work 88 well as reporting annually to the Governing Body. Internal Contrnl Scope of regponglblllty The Governing Body is ultimately responsible for the College's system of internal control and for reviewing ils effectiveness. However, such & system is designed to manage rather than eliminate the risk of failure lo achieve business obJe¢tiv¢s, and can providc only reasonable and not absolute assurance against malcrial misstatement or loss. The Governing Body has d¢legaled the day-loqlay responsibility lo the Principal, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement of ihe CollcgTe's policies, aims and objeciives, wkn'lst safeguarding the public fvnds and assets for which she is personally responsible, in accordance with the responsibilities assigncd lo her in the Financial Memorandum between the College and the ESFA. She is also responsible for reporting to the Governin8 Body any rnaterial weaknesses or breakdowns in inten1 control. The purpose of the system of internal control The systern of internal control is dcsigned to manage risk raiher than to eliminale all risk of failure lo ach'teve policies, aims and objectives. it can therefore only providc rcasonable and not absolute assurance of effectiv¢n¢ss. Thc system of internal control is based on an ongoing process designed lo identify and prioritise the risks lo the achievement of College policies, aims and objectives, to evaluate the likelihood of those risks being realised and Ihc impact should they b¢ r¢aliscd, and to manage th¢m effIcitlY> effectively and e¢onomically. The system of internal control has becn in place in Fircroft College for the period ended 31 July 2024 and up io the date of approval of the annual rcport and accounts. 18
FIRcR0 COLLEGE OF ADULT EDUCATION Statement of Coryorate Governanee and Internal Control (continued) Capacity to handle risk The Govcrning Body has reviewal the key risk% to which the College is exposeAI, iogeiher with the operating, finalicial and compliance controls that bave bccn implemented to mitigatc those risks. The Governing Body is of the view that ther¢ is a fornial ongoing process for id¢ntifying, evaluating and managing the College's significant risks that has been in place for the period ended 31 July 2024 and up to the dat¢ of approval of the annual report and accounts. This process is regularly reviewed by the Governing Body. The risk and ¢ontrol frimework The system of inlemal control is based on a frdmcwork of reguiu management infomiation, a(hninistrative procedures including th¢ s¢gregation of duties. and a sysiern of delegation and ac¢owrtability. In particular, il includes.. compr¢h¢nsive budgeting systems with an annual budget which is reviewed and agreed by the Governing Body. regular reviews by the Governing Body of periodic and annual financial reports which indicate financial perforniance against lorecasls. setting targets lo measure fmancial and other perf0Mnce. clearly defined capital investment control guidelines. th¢ adoption of fomial pmject mana8ement th'sciplines where approprialc. Fircrofi College has internal audit service. which operdtes in accordance with the requirements of the ESFA'S Pn.ft-16 Audit Cod¥ (Jf Praclice. The work of the internal audit service is infornicd by an analysis of th¢ risks io which the College is exposed, And annual internal audit plans are based on this analysis. The analysis of risks and the internal Budit plans are endorsed by the Collcge's Governing Body on the r0mendatIOn of the Audit Committee. At minimum annually, the head of thc internal audit IHIA) provides the Governing Body with a report on iniemal audit activity in the College. The report includes the HIA'S independent opinion on the adequacy and ¢ffecliv¢ness of the College's system of risk management, controls and governance processes. Risks faced by tht Governlng Body During 2018 the College reviewed its Risk Management Policy which sets out how risks are identified and evaluated. Risks are collated into a risk register and risk categories for review against an agreed risk tolerance level. Strategic level risks are revicwcd by the Corporation. The risk register includ¢5 tniligaling actions and residual risk evaluation. 1.10 Adoption of Reclasgifleation Control$ from 29, November 2022 Since FE ¢ollege5 werc classified io the central government seclor with effect from 29 November 2022, the College has completed a revi¢w, and implemenled relevant updates of its policies. procedures and approval processe5 to ¢n5ure compliance with the revised arrangements and requirements issued by the Department for Education. 19
FIRCRowf COLLEGE OF ADULT EDUCATION Statement of CorporAte GovernAnce and Internal Control {continued) 1.11 Statement from the Audit Committee The audil Committee has advised the board of governors that the corporaiion an effective framework for governance and risk management in place. The audit conlli]ittee believes the orporation has effective intemal ¢onlrols in place. The specific areas of work undertaken by the audit committee in 2023124 and up to the date of the approval of Ihe financial statements are: Framework for Compllance - Health & Safety Leamer Number Systems IT Security Controls Key Finaneial Controls Value for Money Appropriate aclion plans have been agreed for internal audit reports. The College Internal Auditors review for the period has staled that the College has an adequate and effective framework for risk manag¢ment, governance and internal control. No issues have been highlighied or specifically raised by external auditors during the course of their audit work. 1.12 Revlew of Effectlvenesg As Accounting Officer, the Principal has rcsponsibility for reviewing the effectiveness of the system of internal control. The Principal's review of the effectiveness of the sysiem of internal control is infornied by.. the work of the inlem21 auditors. the work of the executive managers within th¢ College who have responsibility for the development and maintenance of thc internal control framework. cornmenls madc by the College's financial slalemenls auditors and the relaritY reporting aoUntantS in their management letters al oihw report5. The Accounting Officer has been advised on th¢ implications of the result of her review of the effectiveness of the systcm of iniernal control by the Audit Committee. which oversees th¢ work of the internal auditor, risk cornmittee and other sources of assurancc, and a plau to address weaknesses and ensure continuous improvement of the system is in place. The management team elveS reports setlitig out key perfomianc¢ and risk indicators, and considers possible control issu¢s brought lo IkLeir attention by early warning mechanisms, which are embedded across the College. The management team and the Audit Committee also receive rcgular reports from internal audit and other sources of assurancc, which include recon)m¢ndations for improvemetLt. The A(lt Comlnittee's role in this area is confmcd to a high level review of the arrangemcnls for internal control. Thc Governing Body's agenda includes a regular ilem for consideratiott of risk and control and rciv¢S rcports thereon from the managcmcnt team and Audit Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporttng by ex¢¢plion. At ils October 20
FIRCROFT COLLEGE OF ADULT EDUCATION StV4tement of Corporate Governance rdnd l]]ternAI Control (continued) l.12 Review of Effectiveness (conlinu¢dl 2024 meeting, the corporation ¢arri¢d out the annual assessment for the period cndcd 31 July 2024 by considering do¢um¢ntation from the serLior managemeni team and internal audit and taking account of events since 31 July 2024. Based on the advice of the Audit Committee and theAccounting Officer, the Governing Body is of the opinion that the Collcge has an adequate and effective frdmcwork for governance, risk managemeniand control. and has fulfilled ils statutory responsibility for'the effeclive and efficient uye ofresourtes. the solvency of the institutif)n and the safeguartling of their ossets" 1.13 CorporAtion Performance The Governing Body Caled out a self-assessment of ils governance for the period ended 31st July 2024. Oov¢rnors approved an Inlemal Assessm¢nt Action Plan for ycar 2023124 at the m¢eiing of Governan¢e Committee on 25, September 2024. The Corporation also commissioned an independent External Review of Govmiance by Mr Jim Aleander. The miew summary was agreed with the Mr Alander, and was caled out between November 2023 and March 2024. The revi¢w followed DtE guidance and delivcred an External Review of Governance Action Plan. The review commented 'This rcviw has found that the Governing Body, supported by the Principal, Clerk and the senior executive team has shown commilled, skilled and highly effective leadership through a demanding period of Change and uneertainty. The joini fo¢us on positive student experience8 and staff wellbeing is evident. Resources are overseen efficiently. Th¢ culture is open and values- bascd, supporting the new strategic vision." Recommendalions for Governing Body Action are. Fulurc atld slrmlegic use of Fircroft Colleg¢ Trust Continue discussions on lease extension for Coll¢ge campus Policy Review - being an extension to proactive policy development between executive and governors Strategic Objcctiv¢s arLd Govemor Development aims set before the beginning of each academic Further developrnenl of Partnership engagement The result5 of the review and its recommendations were presentcd and the Action Plan was approved by Governors at the meeting of Governing Body on 17ih July 2024. Governors undertake an induction process upon being appointed by the Governing Body. T'S has involved conversations with the Chair, Vice-chair, Principal. Vice-PTincipal. Head of Finance and Regulatory Compliance al the Clerk. The content in¢lud¢d the College Stratcgy, trustee duties, 21
FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Corporate GoverDAllce and Internal Control (continued) 1.13 Corporation Performance (continued) governance priorities, curriculum and education in)provement plan and the College's financial frdmework and position. Governors undertook training on Safeguarding, Prevenl, equality, diversity and incluslon, and data protection within the rst few months (tlu's training is updal¢d ¢vy 3 years). g0vMr$ also receive an tnduclion Pack from the Clerk which contains key documents. As well as the irLtcrnal induction process governors have also a¢s8¢d regional induction events. The College subscribes to the AoCjEdut1on andTraining Foundation platfonn from where governors can access modules as they consider necessary. They also have acce8s lo Aoc bricfing5 and webinars. The Clerk alerts governors to training relevant lo their roles e.g. Ghairs of committees, reclassification, safeguarding. Important trainin¥ and development a¢livities are undertaken during committee meetings e.8. Audit Committ¢¢ and Education Committee hav¢ had sessions. The Govcming Body has participated in strategic sessions on.. Climate Change Action and Suslainabiliiy Mission, vision. values and purpose A curriculum pedagogy for the future Towards nel z¢ro and our reserves strategy. The Clerk has undertAken relevant internal and external training. Tlll's has included sessions aimed at governance professionals provided by the Aoc, online Clerks netwo meetings for the Midlands region, F.versheds Sutherland and Corporate Governance tnslitute. The trainmg has includcd sessions on reclassification and the clerkinwadminibtralion of companies. Approved by order of th¢ members of the Governing Body on I l December 2024 and signed on its behalf by: Prof G Layer Chair M Lellehan Accounting oificer 22
FIRCROFT COLLEGE OF ADULT EDUCATtOY4 Statement of Re2ul&rlty, Pro riety and Com lian¢¢ As accounting officer I confirn] that the Goveming Body has had due regard to the fr8Jnework of authorities governing regularity, priority and compliancc. and the requirements of grant fLLnding agreements and ¢ontrdCts with ESFA. and has considered its responsibility to notify ESFA of material irregularity, impropri¢ty and non- complTance with thos¢ authorities and tenns and conditions of funding. I confm on behalf of the Governing Body that after due enquiry. and to the best of my knowledge, I am able lo identify any material irregular or improper use of fimds by the Governing Bodyi or material non-complian¢¢ with the froJnework of authorities and the terms and conditions of fidIllg under thc corporations grant fi]nding agreements and contracts with ESFA, or any other public funder. This in¢Eudes the elements outlined in the "Dcar accounting officer" letter of 29 November 2022 and ESFA'S bit¢ size guides. I conftym that no Instanc of material irregularity. impropriety, funding non-compliance. or non-compliance with Ihc Iramework of authorities have been dL5covered to dale. If any instsnces are Identifi after the date of this stalemenL these will be notified to ESFA. M LeDehan Accountlng Offlcer Datc.. I l D¢mber 2024 Statement of the ehilr of governo On behalf of the Governing Body, I confimi that the accounting officer has diws¢d their Sthlement of regularity, pmpriety and compliance with the board atul that l am content that it is mat¢rially accurate. Prof G LAyer Chalr Date: I l December 2024 23
FIRCROFT COLLEGE OF ADULT EDUCATION
Statement of Respollslbilities of the Governin
Body
The members of the Governing Body (who act as twstees and directors for the charitable activities of the
College) are r¢quw¢d to present audit¢d financial statements for each financial year.
Within the tenns and conditions of the corporation's grant funding agreements and ¢ontracts with ESFA, the
corporation - through its Aecounting Officer- is requircd to prcpare financial statements and an operating
and financial review for each flnancial year in accordance with Ihc Statement of Re¢on)mended Practice-
Accounting for Further and Higher Education, ESFA'S college accounts dIrtIon and the UK'S Generally
Aepted Accounting Practice, and which give a true and fair view of th¢ state of affairs of the corporation
and its surplus I deficit of income over expendiiure for that pcriod.
tn preparing the financial statements, Ihc Governing Body is required to..
$¢lttt suitable accounting policies and apply them consistently
make judgements and estimates thai are r¢asonable and prudent
state whether applicable UK accounting standards have been followed, subject to any material
departures disclosed and explained in the financial s(alements
assess whether the corporation is a going concern, noting the key supporting assumptions, qualificarions
or mitigating actions, as
FIRCROFT COLLEGE OF ADULT EDUCATION St&tement of R rlety and Com ]iance Approved by order of the members of the Goveming Body on I l December 2024 and sied on its behalf by: Prof G L•yer Cbair of govemors 25
FIRCROFT COLLEGE OF ADULT EDUCATION Inde endent Audltor'8 Re ort to the Governors of Fireroft Coll e of Adult Education Opinion We have audited the financial siatements of Fircroft College of Adult Education for the period ended 31 July 2024 w.¢h comprise the slatcment of comprehensive income and expenditure, the StateMt of Changes in reselves, Ihc balance sheet, the statement of cash flows, the prin¢ipal a¢counting policies, and the notes to the fancIal statements. Thc financial reporting framework ihat has been applied in their preparation is applicable law and Unil¢d Kingdom AccourLting Standards, includtng Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Gencrally Aeeepted Accounting Practice) and the College Aecounts Direction 2023 to 2024 issued by the Education and Skills Funding Ag¢n¢y. In our Opinio th¢ financial slalements: give a tru¢ and fair view of the state of the College's affairs as at 31 July 2024 and of its surplus of income over expenditure for the period then ended.. have been properly prepared in accordance with United Kingdom Generally A¢¢¢pted Accounting Practice. have been prepared in accordance with the rUlrnets of the Companies Act 2006,. havc been prepared in accordance with the Statement of Recommended Prd¢ti¢e; A¢counling for Further and Higher Education (the 2019 FE HE SORP) and the Accounls Direction 2023 to 2024 issued by the ESFA. Basis for opinion We conduclcd our aLLdit in accordance with Internalional Standard5 on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those srandards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Collegc in accordance with the ethical requirements thal are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Condusions reladng to golng con¢erD In auditing the financial slalemenls. we have concluded that the members of the Goveming Body's usc of the going concern basis of accounting in the preparation of the financial statements is appmpnale. Based on the work we have perfornied, we have not identifLed Any material unccrtainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Coll¢g¢'s ability to continue as a going concern for a period of al least twelve months from when the financial statements are authorised for issue. 26
FIRCRoFf COLLEGE OF ADULT EDUCATION Inde endent Auditor's Re ort to the Governor5 of Ftrcroft Colle e of Adult Education continued) Our responsibilities and the responsibilities of the members of ihe Governing Body with respect to going concern are describ¢d in the relevant sections of this report. Otber informAtion The other inforn]ation comprises tELe inforniation included inihe annual rewrt otherthan the financial statements and our auditor's rert thereon. The members ofihe Goveming Body are r¢s)nSIble for the other inforniation contained within the annual rq)ort. Our opinion on the financial statements does not cover the other infonnalion and, except to the exleni ott1$¢ explicitly stated in ourreport. we do not express any fonn of assurdnc¢ wnclusion thernJL Our restM)n5ibilily is to read the other infomution and, iti doing so, consider whether the other infonnation is materially Ion51stent with the financial slatcmen15 or our knowledge obtained in the course of the audit or oihcnvis¢ appears to be materially misstated. If w¢ id¢nlify such material incoTLsislencies or apparent material misstatements. we are required lo determine whe1h tkn's gives rise to a material misstatement in the Iinancial slalements themselves. If, based on the work we have perfonned, we conclude that there is a rnalerial misslatemenl of this other intonnation, we arc required to report that fact, We have nothin8 lo report in this regord. Op110n8 on other matter5 pre5crlbed by the CompAnies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. th¢ inforniation given in the report of the members of the Governing Body, which is also the directors, report for the purposes of company law and includes the strat¢8ic report, for the firwicial period for which the financial slat¢ment5 are prepared is consistent with the fUnCisI 8talem¢nls' and the report of the members of the Governing Body, which is also the directors, report for the purposes of cornpany law and includes the slratcgic report, has been prepared in accordance with applicable legal requirm¢nts. Matters on wbich we are requlred to report by exeeptlon tn the light of the knowledge and understanding of the Collcgc and its environmetlt obtairLed in the coursc of thc audit, we have nol identified material misstatement5 in the report of the m¢mbers of the Governing Body including the stratee report. We have nothing to report in respect of the following mattS in relation to which th¢ Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting re¢ords have not been kept. or rcturns adequate for our audit have not been received from branches not visited by us" or 27
FIRCROFT COLLEGE OF ADULT EDUCATION Inde elldent Auditor's Re ort to the Governors of Fircroft Colle e of Adult Educadon (contlnued) the financial staiements are nol in aeernent with the accounting records and rcturns,. or certain disclosures of the members of the Governing Body's remuneration specified by law are not made,. or wc havc not received all the infomation and explanations w¢ require for our audit. Responslbilitles of the members of the Governlng Body As explained more fully in the stalemeni of responsibilities of ttic Governing Body, the Members of the Governing Body are responsible for the prcparation of the fLnan¢ial slalements and for being satisfied that they give a true and fair view, and for such inlemal control as the mcmbcrs of thc Governing Body det¢rniin¢ is necessary lo enable the pr¢paration of financial slalements that are free from mal¢riai misslalement. whether due to fraud or error. In prq)aring the fllw)cial stalemenls. the members of th¢ Goveming Body are responsible for assessing the College's ability lo continue as a going concern, disclosing. as applicable. rnalters rclated to going conc¢m and using the going concern basis of accounting unless the mcmbers of the Governing Body ¢iih¢r iniend to liquidate the College or lo cease operations, or have no realistic alternative but to do 80. Audltor's rt$pon$lbllides for the audlt of the finxnclal $tatemen¢g Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from mal¢rial misstatement, whether due to fraud or error, and lo issue an audiior's report that includes our opinion. Reasonable assurance is a high Icvel oFassurancc. but il is not a guarantee that an audit conducted in accordan¢c with ISAS {UK} will always delecl a malerial misslalement when it exists. Misstatements can arise from fraud or error and are considered tnalerial if, individually or in the aggregal¢, th¢y could reasonably be expected to influence the economic decisions of users taken on the basis of these financial slalemenis. Irregularities, in¢luding fraud. are instances of non•compliance with laws and regulations. We design proccdurcs in line with our responsibilities, outlined above, to detect material misslalemenls in rcsPCCt of te&ll19tIe$, including fraud. The extent to which our procedures are Capable of detecting irregularities, including fraud is detailed bclow.. Our approach to td¢ntifying and assessing the risks of material misstatement in respect of irregularities, including frdud and non-compliance with laws and regulalions, was as follows.. the engagement partncr ensured that the engagemenl team collectively had the appropriat¢ ompel¢n¢e, capabilities and skills to identify or recognise non-compliancc with applicable laws and regulations; w¢ identificd the laws and regulations applicable lo the College through discussions with management, and from our knowledge and experience olihe sector: we focuscd on specific laws and regulations which we considered may have a direct Matla1 effect on the financial ststements or the operations of thc Collcge, including the Furth¢r and High¢T Education Act 1992, Companies A¢1 2006. funding agreements with the ESFA and WMCA and associatcd fLmding rules, ESFA regulations, data protection legislation, anti-bribery, safeguarding, employment, health and safcty legislation. 28
FIRCROFf COLLEGE OF ADULT EDUCATION Inde endent Andltor's Re ort ¢0 the Governors of Flrcroft Colle e of Adult Edy¢alion {continued we assessed the extent of compliance with the laws and regulations identificd above through making enquiries of managemeLIt and inspecting legal corresponderL¢e' and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliancc throughout the audit. We assessed the susceptibility of the College's financial statements to material misstatement. including obtaining an understanding of how fraud might occur, by.. making cnquiJia5 of management as lo where they considered there was 8iLsceptibility to fraud, their knowledge of aetual, suspected and alleged frdud: and considering the internal controls in place to mitigate risk5 of fraud and non-compliance with laws and regulalions. To address the risk of fraud ihrough management bias and override of controls. we: perfomjed analytical pro¢ureS to identify any unusual or unexpwt¢d relationships. tested journal enlries lo identify unusual transactions. and assessed whether judgements and assumptions made in delcmiining the accounting estimates set out in the accounting policiet> were indi¢aliv¢ of potential bias. In response to the risk of irregularities and non-cornpliance with laws and regulations, we designal procedures which included, but w¢re not limited 10.. agreeing financial statement disclosures to underlying supporting documentation. reading the minutes of Governing Body meeling5.' enquiring of management as to actual and potential litigation and claims,. and reviewing any available correspondenc¢ with HNIRC and the College's legal advisors (although none was noted as being rec¢iv¢d by the College). There arc inhercnt limitations in our audit procedures described above. The more removed that laws and regulation5 are from financial transactions, the less lik¢ly it is that we would bccome aware of non-compliance. Auditing standards also limit the audit procedures required to identify non- compliance with laws and regulatiotL8 to cnquiry of the members of the Governing Body and other management and the inspection of regulatory and legal correspondence, if any. Matcriol misstat¢m¢nls that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberdle concealment or collusion. A further description of ourrcsponsibilili¢s is available on thc Financial Reporting Council's website at www.fn.org.uklauditorsresponsibilities. This description forn]s part of our auditor's report. 29
FIRCROFT COLLEGE OF ADULT EDUCATION Inde ndent Auditor's Re ort to the Governors of Fircroft Colle e of Adult Education (continued) Use of our report This report is made solely to the members of the Governing Body, as a body, in accordancc with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has b¢en undertaken so that we Mi1t state to the Governing Body those matters we are required io stste lo them in an auditor's report and for no other purpose. To th¢ fullest ¢xt¢nl perniitted by law, we do not accept or assutne responsibility to anyone oihcr than the College and the Governing Body as a body, for our audit work for this report. or for the (winions we have fornied. Catherine Biseoe {Senlor Statutory Auditor) For and on behalf of Buzzacott LLP Stalutory Auditor 130 Wood Street London EC2V 6DL 19 December 2024 30
FIRCROFT COLLEGE OF ADULT EDUCATION Reportlng Aecoun¢aDt's Report on Regularity to the Governing Body of Ffircroft College of Adult Education (-tbe Goverlling Body") and the Secretary of State for Education acdng tbrougb the Education and Skills Fundin2 A2ency ("¢b¢ ESFA" In accordance with Ihe tern of our cngagcvnent lett¢r dated 30 Octobcr 2024 and fijrther to the requirements and conditions of fidIng in the ESFA'S grant funding agreements and contrdets, or those of any other public fijnder, we have carried out an engagem¢nt lo obiain limited assurance aboul wh¢ther anything has ¢om¢ lo our aiiention that would suggest, in all material respects, the ¢xpendilure disbursed and income received by Fircroft College of Adult Education during the period 3 April 2023 to 31 July 2024 have not been applied to the putposes identified by Parliament and the financial transactions do not conforni to the authorities which govem them. The framework that has been applied from l August 2023 is set oul in the Post-E6 Audit Code of Pra¢ti¢¢ (the Code} issued by the ESFA and in any relevant conditions of funding concerning adult education notifLed by a relevant fvnder. In line with this framework. our work has specifically not considered income received from the main funding grants generated through the Individualised Learner Record data returns, for which the ESFA has oiher assurance arrangements in place. Prior to l August 2023. the College did not receive ndIng from ESFA and the fijll regularity regime requiring compliance with the funding rules and college financial handbook did not apply. T'S report is made solely to th¢ GOV1ng Body of Fircroft College of Adult Education and thc ESFA in accordance with the tenns of our cngagemenl letter. Our work has been undertak¢n so that we might state to the Governing Body of Fircroft Coll¢ge of Adult Education and the ESFA those matters we ar¢ required lo stale in a report And for no other purpose. To the fullest exlenl pennilted by law, we do not aCCt, or assume, responsibility lo anyone other than the Governing Body of Fircroft College of Adult Education and the ESFA for our work. for this report, or for the conclusion we have fomied. Respectlve respoDsiblllties of Flreroft College of Adult Educatlon and the reportlng #ceountant The Goveming Body of Fircroft College of Adult Education is responsible, under the requiremerLts of ihe Further & Higher Education Aci 1992, subsequent legislation and related regulations and guidance, for ensuring that expenditure disbursed, and income received, are applied for the purpo5 intended by Parliament, and the financial transactions confonn to the auihorilies Ihal govern them. Our responsibilities for this engagement arc ¢stablished in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our ¢ngagement letter and the requir¢ments of thc Code. We report to you whether an)thing has come lo our attcnlion in canying out our work whj'ch suggests that in all material respects, expenditure disbursed and income received, during the period 3 April 2023 10 31 July 2024 have not been applied to Purposes intended by Parliament or that the fmancial transactions do not confonn lo the authorities which govern IhaTA. ApproAeb We conducted our engagement in accordance with the Code issued by the ESFA. We perfomed a limited assurance engagement as defined in that framework. The objective of a limited assurance engagcment is to perforni such procedures as to obtain infonnation and cxplanation5 in ordcr to provide us with sufficient appropriate evidencc lo express a negative conclusion on regularity. A limited assurance engagemenl is more limited in scope than a reasonable assurance engagement and consequently does not enable us lo obtai assurance ihal we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on 8 test basis, of ¢vid¢n¢e relevant lo thc regularity of the Governing Body's income and xpenditure. 31
FIRCROFT COLLEGE OF ADULT EDUCATION ReportinE Accountant's Report on Regul•rity to the Governlng Body of Fircroft College of Adult Edueation {"the Governing Body") And the Secretary of State for Education acting tbrough the Department for Education "the De artment" contlnued Approach (continu) The work undertaken to draw to our conclusion includes: An assessment of ihe risk of material irregularity and Ampropriety across all of the College's activities.. Furth tesltng and review of the areas identified through the risk assessment including enquiry. identification of control processes and examination of supporting evidence across all areas identified as well as additional verification work where considered neccssary,. and • Consideration of evidence obtained tOUgh the work detailed above and the work completed as part of our financial stat¢ments audit in order to support the regulltY conclusion. Concluslon In the course of our work, nothing has ¢ome to our artention which suggests that in all material respects, Ihe expmdilure disbursed and income received during the period 3 April 2023 to 31 July 2024 has not been applied to purposes intended by Parliament, and the financial transactions do not conforni lo the authoriti¢s that govern th¢m. Buzzaeott LLP Chartered Accountants 130 Wood Street London EC2V 6DL 19 December 2024 32
FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Comprehensive Income and Expenditure 2024 2023 Nott Ittcome Funding body grants 2,629.185 2,332,931 Tuition f¢es and education contracts 25J88 126,380 Other ineome 34,463 21,795 Investment income 159,249 136,347 Donations 17,176 io,o(K) Totsl Ineome 2,865,461 2,627,453 Expendlture Stsff costs 1,789J29 1,719,488 Other operating ¢xpense8 856,492 704,189 Dcpreciation io 114.422 137,552 Total Expendl¢ur¢ 2,760243 2.561,229 Surylus before other g&lns and losses 103218 66.224 Gain l(Loss) on inv¢sthients N¢t realised Net unrealised 6,518 245,648 (3,318} (152,439) surplu (Deflclt) before TAX 357J84 (89,533) Taxalion Total Comprthenslve Incomel(Expendlture) for the Perlod 357J84 (89,533) Represented by". Restricted cornprehensivc income Unrestrieted con]prehensive {expenditur¢) 357J84 (89,533) 357J84 (89,533) 33
FtRCROFT COLLEGE OF ADULT EDUCATION Colle2e Ststement of es ID Reserves lllcome and Restri¢ted Expenditure Reserves Reserves Total Balance at l August 2022 Deficit from the iwome and expenditure accounl (89.533) (89,533) Transfers between restricted and income and ¢xpendilure reserves TotAI comprehenslve expendlture for the ptrlod (89,533) (89,533) Balance at 3111 July 2023 5,788.170 51,952 5,840.122 BAIAnce At I" Augu$t 2023 3,788.170 51,952 5,840,122 Surplus from th¢ income and expenditure aoUnt 357,384 357,384 Transfers bctween StriCted and income and expenditure reserves Total comprebenslve Income for the perlod 357.384 357,384 Balance at 31" July 2024 6,145,554 6 197 506 34
FIRCRoFf COLLEGE OF ADULT EDUCATION Bxlance Sbeet as at 31 Julv 2024 2023 Notes Non-current Assets Investments Tangible red assets 3,925,630 2J16,880 3.698,044 2,086,558 10 Total fixed asselg 6,242,510 5.784,602 Current assets Stock Trade and other receivables Short term investments Cash and cash equivalents 6,520 260,975 165,003 1,102,698 3,970 108,651 156.713 964,562 12 13 Total current &55etJ 1,535,196 1,233,896 Less: Credltors- amounts falllng dlle wlthln oDe perlod 14 {612,71)0) (188,205) Net currenl assets 922,496 1.045,691 Total asgets less curreDt liabllldes 7,165,006 6,830,293 Creditors - amounts falling due after one period 15 {967,5Crf)) (990,171) NET ASSETS 6,197,506 5,840,122 Restrlcted re5erv¢s Unrestrlcted re$¢rves Income and expenditure account 16 51,952 51,952 145.554 5,788,170 TotAI reserve5 197,506 5,840,122 The financial statements on pages 3110 51 were approved by the Goveming Body and authorised for issue on I l December 2024 and werc signed on behalf of the Governing Body by: Prof G Layer Chair M LenehAn Accounting Officer Fircroft College of Adult Edue&tion Company No 14776636 35
FtRCRoFf COLLEGE OF ADULT EDUCATION StAtement of Casb Flows Note 2024 2023 Cash flowy from operating 4¢tivities Surplusl{Deficit) for the period 357J84 (89,533) Adjustment for non4•sh items Depreciation {Increase)Idecrease in slocks (Increase)/decrease in debtors tncreasel(decr¢ase) in creditors due within one period Increa8cI(decrease) in creditors due afier one period Adjustment for investlDg or financlal 4¢tlvitles Nel investment {gain)Iloss Investment income 114,422 (2,550) (152.324) 424,494 {22,671) 137,552 392 66.577 (162,967) 334,584 (243,858) {159,249) 164,033 (136.347) Net cash flow from operating aeilvldeA 315648 314,291 Cash flows from Inve¥dn% activltles Jnv¢slment income Disposal of non-cucnt asset invesknents Payments made to acquire non-cutTent asset investm¢nl$ Payments made lo acquire fixed assets 159,249 647,322 (693,392) (344,744) 136.347 386,325 (545,522) {50,940) Net c•$h flow from Investlng &ctlvltles 231565 IDcreAse In ea$h #nd cash equlvAlenti In the perlod 17 240 501 Cash and cash equivalents at beginning of the period 17 1,206,416 965,915 Cash and cash equivalents at end of the period 17 1290 499 1.206416 36
FIRCRoFf COLLEGE OF ADULT EDUCATIOLY Notes to the Accounts Accounting policies Sthtemen¢ ofaecouAlingpolicie The following accounting policies have been applied consistently in dealing with iterns which arc Considered material in relation to the fLnancial statements. Basis ofpreparation These financial statements have been prepared in accordance with the Statement of Recommendcd Practice.. Accounting for Further and Higher Education 2019 (the 2019 FE HE SORP), the College Accounts Direction for 2023 to 2024 and in accordance with Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in thc United .gdoM and Republic of Ireland" (FRS 102). The College is a public bencfit entity and has Ihereforc applied the relevant public benefit requirements of FRS 102. The preparation of financial statements in compliance with FRS 102 requires the use of c¢rtain critical accounting estimates. Ji also requires management to exc1$¢ judgement in applying the College's accounting policiu. asis ofAccounting The financial statements are prepared in accordance with the historical cost convention un1¢5s otherwise 8tal¢d. Data for the financial year ended 31 July relate to Fircroft College Trust. and pr¢sented for comparative purposes. These accounts have been prepared using merger accounting standards, with Fircroft College of Adult Education as the receiving business. Merger accounting is a method of accounting for a merger that uses book values instead of fair values to record asscts and liabilities. It is used for group reconstNctions, which can include transferring equity holdings or combining enlLlics with the satne equity hold¢rs The transfer agr¢em¢nl with Fircroft Collcgc Trust enacted a complete Iransf¢r of all staff, assets liabilities and all operations and functions of the College lo Fir¢roft College of Adult Education. No objections or issues were raised by stskeholders, and key funders are satisfied with ihe merger conditions. Going ¢oneern The activities of the College, together with the factotE likely to affect its development and perforniance are set out in the Report of the Govcrning Body. The financial position of the College, its cash flow, liquidity and borrowings are described in the Financial Stal¢m¢nts And accompanying Notes. The College has no loans or overdrafts and the College's forecasts and financial projections inth¢ate that nonc will bc rcquired for the foresecablc futtTre. The College has a reasonable expectation thai it has adequate resources to continue in opational exi5tencc for the for¢s¢eable future, and for this reason will ado0 the going concern basis in the preparation of its financial statements. 37
F]RCROFf COLLEGE OF ADULT EDUCATION otes to the Accoullts (continued) Aeeounting policies (continued) Recogniftort oftheome Revenue granifynding Government revenue ntS include fimding body rccurrent grants and other grants and are accounted for under the accrual model as perniitted by FRS 102. Funding body recurrent grants are measured in line with best estimates for the period of what is Te1vable and depcnd on the particular income strcarn involved. Any Uter or over achievement for the Adult Skills Budget is adjusted for and reflected in the level of recurrent grant recogmsed in the inGome and expenditurc account. The final grant income is noMlLY detemiined with the conclusion of the year end reconciliation process with the fundAng body following the year end, and the results of any funding audits. Grants (including res¢ar¢h grants) from th)n-government sources are recognised in income when the College is liiled to the income and perfomiance related ¢ondilions have been met. Income re1Ved in advance of perforniance related conditions being met is recognised as dcfettcd income within cr¢ditors ou the balance sheet and r¢l¢ab¢d to income as the conditions are mel. Capitalgranifr4nding Government capital grant8 are capitalised. held as deferred income and recognised in inwme over the expected usefiJl life of the asset, under the acCnl model as permitted by FRS 102. Othcr, non-governmental, capital granls are recognised in income when the College is cntiiled to th¢ funds subject lo any perforniance related conditions being met. Income received in advance of performance relalcd conditions being mct is recogni5 as deferred income within creditors on Ihe Balance Sheel and released to income as conditions are met. Fee income Income from tuition fee8 is recognised in the period for w.Ch it is received and includes all fees payable by studenls or their sw)nsors. Invesimenl income All income from short-term deposits or investments is crediled to the income and expenditure account in the period in which it is earn on a receivable basis. Restricled reserves Whcrc income is received for purposes specified by the donor or by the terns of appeal under which it was raised, that income is included in the restricted reswes. Any use of the restricted reserve is included as exp¢nditure shown on the face of the Statement of Comprehensive Income. 38
FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts Accounting policies (continued) Aceoun¢ingforpostvempIoyme benefits Posl-cmployment benefits to tutors of the Collegc arc provided by the Teacliers, Pension Scheme (TPS). The TPS is a defined benefit scheme, which 15 externally funded and contracted out of the Sialc Second Pcnsion. TeaeheY8pension scheme The TPS is an llnfUnd scheme. Contributions lo Ihe TPS are calculated so as to spread the cost of pensions over employees, working livcs with the College in such a way that the pension cosl is a substantially level percentage of current and futur¢ pensionable payroll. The contributions arc determined by qualified actuaries on the basis of quinquennial valuations using a prospective benefit meihod. The TPS is a multi.employer scheme and Ihe College does tt possess sufficient infonnation to use defined benefit accounting. The TPS is therefore treated as a defined contribution plan and the contributions recognised as an expcn8e in the income statement in the pcriods during which services ar¢ rendered by employees. No members of staff are members of the Local Government Pension Scheme (LGPS), Short tsrm Employm¢ni benefits Short lerni cmplojrynent benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the period in which the employe¢s render service lo the College. Any unused benefits are acctV and measured as the additional amount the Collegc expects lo pay as a result of the unused eniitlemenl. Jvon-current Assets- Tangiblefixed assets Tangible fixed as.8els are stated at cost less accumulated deprwiation and accumulated impairnient108scs. Certain items of fixed assets that had been revalued lo fair value on or prior to the dale of transition to the 2019 FE HE SORP, are measured on th¢ basis of deemed cost, being the rcvalucd amount al the date of that revaluation. Where parts of a fixed asset have different useful lives, they are accounted for as separdte items of fixed assds. The College's policy is to catry all asscts at historical cost. except the financial benefit of the lease arrangements (see below) which is carried at valuaiion but now deemed costs. Land and buildings The College does not pay & markct rale for the lease of the premises from which il operates, hcnce the College has capilaltsed the benefit it receives from this arrangement. Any improvements to the buildings are included at cost. Finance costs, which are directly attributable to the conslNction of land and buildings are capilalised as part of the cost of those assets. Equipment Equipment costing le55 than £250 per individual item is recognised as expenditure in the period of acquisition. All other equipment is Capitalis at cost. 39
FIRCROFT COLLEGE OF ADULT EDUCATION Notes to tbe Accounts Accounting policies (contillued) Non-CurrenÉAssets- Tangiblefved assets (cortlinued) Depreciation Long leasehold land and buildings are depreciated on a straight line basis over thc rcmaining life of the lease. Capitalised equipment is deprlat on a straight line basis over its usefijl economic life as follows.. General equipment Computer equipment Furniture, fixiures and fittings Computer software 5 years 3 years 10 years 5 y¢ars A fijll year's depreciation will be calculated and applied in the funCIal year of acquisition of any asset. A review for impaimienl of a fixed asset is carried oul if events or changes in circumstances indicate that the canying amount of any fixed asset may not be recoverable. Shortfalls between th¢ canying value of fixed asscts and their recoverable amounts are recolSed as impairn)ents. Lmpaiment losses are recognised in the Siatem¢tit of Comprehensive Income and Expenditure. Subsequeni expenditure on existingfjxed assels Where significant expenditure is incurred on tangible fixed assets after initial purchase it is charged to the Statement of Comprehensive tncome in the period it is incurred, urLless it inc05¢S the fijlure bencfits to the College, in which case il is capitalised and dcpreciated on the relcvant basis. Leed assets Costs in respect of operating leas¢s are charged on a slraight-line basis over the lease terni to the Statement of Comprehensive Income and Expenditure. Any lease premiums or incentives relating to Icases Sied after 1st Au¥ust 2014 are 8pread over the minimum lease terni. Inveslments Listed invcslmenls held as non-¢uTrent assets and current ass¢t investments, which may include list investments, are slated at fair value, with movements recognisa in Comprchensive Income. Investments comprising unquoted equity instruments are measured ai fair value, estimated using a valuation technique. Stocks Siocks are stated at the lower of their cost (using th¢ cost tneihi)d) and net realisable value being selling price less costs to compl¢l¢ and sell. Where nccessary, provision is made for obsolele. slow moving and defective items. Maintenance ofpremlses The Collcge has a maint¢nanc¢ plan in line with ils obligations ler its lease agreement with Bournville Village TTht. 40
FIRCRoFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) A¢¢ounting polleles (continued) FlnanclAI Ilpdblllties And equity Financial liabilities and equity are classified according io the substance of the financial instrnment'8 contrdctual obligations. rather than the financial instrument's legal fom). All loans, invcstmenls and short terni deposits held by the College are classified as basic fmancial instnllnents in accordance with FRS 102. These instnun¢nts are initially recorded al Ihe transaction price Icss any transaction costs (kn'storical cost). FRS 102 r¢quir¢s that basic financial instnllnenls are subsequently measured al amortis¢d cost. however the College has calculated that thc difference between the historical cost and amortIs cost basis is not material and so these financial inslrum¢nts are stated on the balance she¢t at historical cosl. Loans at investments that are payable or r¢c¢ivable within one year are not discounled. Ttion The College is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 20IO and therefore il meets the defu]ition of a charity for UK corporatioti tax purposes. Accordingly, the College is potentially exempl from laxalion in respect of income or capital gains received within ¢ategories covered by sections 478488 of Ihc Corporation Tax A¢t 2010 OT Section 256 of the Taxalion of Chargeable Gains Act 1992, to the Cxtenl that such income or gains are applied exclusively to charitable purwses, The College receives no similar exemption in reSpt of Value Added Tax. 1C¢OVerable VAT on inputs is included in th¢ costs of such Inputs and added lo the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature. Cash and ca,gh equlvalents Cash includes cash in hand, and sums on short tm deposits with recognised banks, investment managers, building societies and government securities. Deposits are repayable on demand if they are in prnclice available within 24 hours without penalty. CastrL equivalents are short temt highly liquid investments ihat are readily convertible to known amounts of cash with insigmfi¢ant risk of change in value. An investment qualifies as a cash equivalent when it has maturity of 3 months or less from the datc of acquisition. PrtsvLYlons and condn8en¢ liabililies Provisions are recognJs¢d where the Collegc has & present legal or constructive obligation as a result of a past event and il is probable that a transfer of economic b¢n¢fil will be required to scttlc th¢ obligation and a rcliablc estimate can be m8d¢ of th¢ amount of the obligation. Vhere the effect of the time value ofrnoney is material. th¢ amount expectcd to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recogDi$ed as a fllianc¢ cost in the statement of comprehstV¢ income in thc pcri(d it arises. 41
FIRCRoFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) Accounting policies (continued) A contingent liability arises from a past event that gives thc College a possibl¢ obligation whose existence will only be confmned by the occurrence or oihenvise of uncertain future ¢vents not wholly within the control of the College. Coniingent liabilities also arise in circum51ances where a provision would othmvise be madc but either it is not probable that an outflow of resources will be rcquircd or the amount of the obligation cannot be measured reliably. Contingent liabilities are not recognised in the balance sheet but are in the notes to the financial statem¢nls. Judgements In applying ac¢oMniln%policie$ and key sources ofestimation Mneertalnty In preparing these financial statements, management have made the following judgments.. Deterniine whether leases entered into by the College either as a Icssor or a1¢ssee are operating or finance leases. These decisions dcpend on an assessment of whether the risks and rwards of ownership have been transferred from the lessor to the lessee on a leasc by lease basis. Delerniine whether there are indicators of impainnent of the group's tangible assets. FactcTrrs taken into consideration in reaching such a decision include the economic viability and expected future financial perfomiance of the asset and where il is a component of a larg¢r cash-generating unil, the viability and expected future perfomiance of that unit. Other key sources of tiMation unceriainty Tangiblefixed4ssels The total figure for Tangible Fixed Asscts includes £1,281.900 wm'ch is the value, deemed Cost, ascribed lo the financial benefit of the long leasehold properties transferred lo Fircroft College Trugt by professional valuers in 2009 and 2010. Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The a¢tual lives of the assets and residual values are assessed annually and may vary depending on a number of factor8. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Rcsidual valu¢ assessmen18 consider issues such as fvtyre market conditions, th¢ remaining life of thc asset and projected disposal valucs. As noted alK)ve the long leasehold propcrty is depreciated over the remaining lease lerni. 42
FtRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts l Fundinx Body Grants 2024 2023 RecLLtrcnt grants ESFA d¢livery ESFA student support fimds West Midlands Combined Authority delivery Specific grants 71,779 65,260 105,595 2,095,192 2,256,682 TCherS Pension Scheme contributory grant Release of government capital grants Local Skills Improvement Fund Sports England (Re81ricted grant) 46,354 22,671 231,286 413 44.213 22,671 Total 2,629,185 2,332,931 2 Tultlon Fet8 and Educatlon ContrACtS 2024 2023 Advanced level course fces for le8rner8 aged over 24 Tuition fees Education contracts 336 989 24,063 48,352 14,612 63,416 Total 25,388 126,380 3 Other Income 2024 2023 Residencies, ¢at¢Ling and confttences Miscellaneous income 28,715 5,748 13,154 8,641 Total 34,463 21,795 43
FIRCRoFf COLLEGE OF ADiiLT EDUCATION Notes to the Accounts (continued) 4 Investment Income 2024 2023 Other invwtment income Other interest receivabl¢ 148,404 10845 133.791 2,556 Total 159,249 136.347 5 Don&tSon$ 2024 College 2023 College Unrestrieted Restrlcted Donation for upkeep of the gardens 17,176 17.176 iO,O¢K) Total 17,176 17,176 i 0.000 6 Staff Cost$ The average number of persons (including key management p¢rsonnel) employed by the College during the period, on an average headcount basis, was.. 2024 2023 TeacEu'ng staff Non-teaching staff 13 40 16 39 53 55 Staff ¢ostg for the above persollg 2024 2023 Wages and salaries Social security costs Other pension costs la52,296 125,400 196,426 1,348,154 125,204 170,304 Payroll Sub totsl Contractcd out staffing setvices 1,674.122 115,207 ,643,662 75,826 1,789J29 1,719,488 Fundamental resiructuring costs- Contractual Non contractual Total $t#ff costs 1,789J29 1,719.488
FlliCROFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) 6 St8ff Cost$ {continued) Key management persoDDel Key management personnel are those p¢rsons having authority and responsibility for planning. directing alld controlling the activities of the College and are represented by the Principal and the Vi¢¢ Principal and the Governing Body. Thc Governing Body works to an agreed process of r¢vi¢wing the remuneration of the senior post holders based on review against whole college perfonnance measures. as previously defined by governors and used for college wide pay reviews, and relevant benchmarking. The RemuneratiorL Committee receives reports directly from HR mager (who perfOrn this role on behalf of the Committee). The Rcmunerdlion Committee cvaluates th¢ whole college perfom]anc¢ measures and reviews benchmarking data from other L's, where available, and the AOC, then agrees r0MMendatiOnS to be made to the fidl Governing Body forany chang&s in remuneration. The principles of fairness, independencc, justification and trSparenCY are deliv¢r¢d through the agreed procedure and reporting pr(Kes$. 7 Emoluments of Key minagement per80nneL A0tIng Officer And otber hlgher pald stsff 2024 2023 No Number of key mandgcmenl personnel including the Accountin8 Officer was.. The nLunber of kcy management personnel and other staff who r¢ccived annual ernolumenls. excluding employcr ntributions to national insuranc¢ and pensions but including benefits Ln kind, above £60,(M)O was.. Key management personllel Other staff 2024 2023 2024 2023 £60,001 to £65,000 p.a. £65,001 to £70,000 p.a. £105,00110 £110.000 p.a. £I10.IM)I 19 £115,000 p.a. 45
FIRcR0 COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) 7 Emoluments of Key management personnel, Aceountlng Offleer alld other higher paid staff (continued) Key management persom)¢l emolumcnts are made up as lollows: 2024 2023 Salaries Social security wsts 184J81 23,086 176,519 22,329 207,467 4631 198,848 41,800 Pension contributions Toial emolumtntS 253.998 240,648 There were no amounts due to k¢y management personTh¢l that were waived in the peri(xl, nor any salary sacrifice arrangements in place. The abov¢ ¢ompensalion includes amounts paid lo the PrincipRI and Chief Executive who is ihc accounting officer and who is also the highest paid rnber of staff. Their pay and remuneration is a5 follows.. 2024 2023 Salaries Pension wntributions 113,413 28.519 109.150 25,838 141,932 134.988 The pcnsion eontribulions in respect of the Ac¢ounting Officer and senior posl-holdcrs are respect of employer. contributions lo the Teachers, Pcnsion Scheme or College scheme as appropriate. These are 811 paid ai the same rate as for all other members of the Teachers. Pension Schctne. The Governors of the College, other than the Accounting Officer and staff members, did not re1ve any paymcnl from the institution other than the reimburs¢m¢nt of travel and subsistence expenses incurrcd in the course ol their duties. The colle does not have any overseas activities. Relfdilonshlp of Princlpal pay And remuner4tion expressed a5 A multiple 2024 2023 Principal's basic satary as a multiplc of the median olall staff Principal 2nd CEO'S total [emut3¢1On as a multiple of the median of all staff 46
FIRCROFT COLLEGE OF ADULT EDUCATION Nots8 to the Aeeounts (continued) 8 Other operating exp¢ni¢i 2024 2023 Teaching costs Non-teaching costs Pr¢mi$es costs 48.872 628,788 178,832 69,774 475,503 158,912 Total 856,492 704.189 The College has a conlractual obligation to maintain the buildmgs it leases from Boum¢ville Village Trust and consequently has a planned maintenance programme for these buildings. More inf0MlI0ll wi be found in the Report of the Gov¢n)ing Body, Capital base and planned main¢a]ance, on page 9. 2024 2023 Other operAtiDg expenses Intlude: Auditor's rcmuneration: Financial slalements audit - Other services provided by the financial stalemcnts auditors Internal auditors, r¢muneration Hire of land and buildings under operaling leases 23,940 11,790 22J20 149 15,960 11,610 14,112 149 9 Tixatio The Governors do not believe the Collcgc to be liable for 9Y iticome tax arising out of its activities during either petiod. 47
FIRCROFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (Continued) 10 Tangible fixed assets Land and buildings long Assets under Equipment leasehold constN¢tion and fiwniture Total Cost or valuation At l August 2023 Addilions Disposals 3,636,126 30,580 748,563 84,570 4,384,689 344.744 229,594 At 31 Juty 2024 3,666,706 229,594 833.133 4,729,433 Depreciation At l August 2023 Charge for the pcriod Eliminated in respect of disposals 1,647,837 62,893 650,294 51,529 2,298,131 114.422 At 31 July 2024 1,7IO,730 701,823 2,412,553 Net book value at 31 July 2024 1,95S,976 229,594 131JlO 2J16,880 Ncl book value at 31 July 2023 1,988,289 98,269 2,086,558 I l Non-current Investments 2024 2023 Balance at l August 2023 Additions at cost Disposals at book value (proceeds £647,322, realised gaiti £6,518) N¢t gainsl{losses) on revaluation at 31 July 2024 3,612,904 693 J92 (640,804) 237J40 3.617,740 545,522 (393,025) (157.333) Market value at 31 July 2024 3 902 832 3.612,904 Cash held by invcslm¢nl managers 22,798 85.140 BAIAnee at 31 July 2024 3,925,630 3.698.044 Represented by.. Fixed interest stocks (listed) Equilie5 and unit trusts (listed) Overseas (listed) Cash balanccs 97A714 IJOl,998 1,625,784 21,134 677,488 1,491,005 1,445,020 84,531 TotAI Total eost of lilted investments 3,925,630 3,063 262 3,698,044 2,826,747 48
FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Ac¢ounts (continued) 12 Debtor$ 2024 2023 Arnounts falling due within one y¢ar'. Trade debtors West Midlands Combined Authority Prcpayments and accrned income 28.895 97.065 134,415 108,651 TotAI 260.975 108,651 13 Short Term Deposlts 2024 2023 Short tern] deposits 165,1)03 156,713 Total 165,003 156,713 Depo8lts are held with investment managers in s¢cwitie8, and available/convertible lo cash al short noti¢e 14 Cr¢dltors: Amoun18 Falllng Due wlthln One YeAr 2024 2023 Trade creditors Other creditors Other taxation and social seewity Accrua15 Staff holiday pay accrual Defayed income- Government Capital grants DcfcTrcd income- other 57J42 193,295 30,18S 60.497 20,241 27.621 223,519 36.665 46.709 58.944 16,092 29,795 Total 612.700 188.205 49
FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the A¢unt$ (continued) IS Credltorg: Amounts Falling Due tdfter One Year 2024 2023 Defeed inwme- Government Capital grants 967,500 990,171 Tot 967,500 990.171 16 Restrlcted Reserves 2023 Income Expendlthre 2024 Centenary Appcal Student Hardym'p Work with ex-offend¢rs Sport England grant 30.280 8,444 13,228 30,280 8,444 l3.228 413 (413) Total 51,952 413 (413) 51.952 17 Cash and cash equlvAlent% and an*lys1s of changes In net debt I st August 2023 Cash Flow$ 31" July 2024 Cash at bank and in hand Cash held in short term investments Cash held by invcstment managS 964,562 156,713 85,141 138,136 8,290 {62.343) 1,102,698 165,003 22,798 Nel Funds 1,206,416 84,083 1,290,499 50
FIRCROFT COLLEGE OF ADtJLT EDUCATION Notes to the Accounts (continued) 18 Lease obligatlons At 31 July th¢ College had minimum lease payrnenls under non-cancellable operdting leases as follows.. Futsre minimum lease payments due 2024 2023 Land 4Dd bulldlngs Not later than one year Later than one year and not later than five years Later than five years 149 596 3028 149 596 3,977 4,573 4.722 O¢ber Not later than one year Later than one year and not later than fiv¢ years 3,2S8 10,237 2.620 2.218 13,495 4,838 Total le949e payments due 18,068 9,560 19 Related party trans4CtIoDS
FundlDg Bodles Transactions with the ESFA are detsiled in notes l and 14. b) Governors The total expens paid to or on behalf of the Govemors duri1 the pwiod was £1,969 in respect of four governors (2023.. £504 in respect of I governors). Tlu's represents technology. travel and conference costs incurred in atting fjovernor tnectings and events in their off5cial capacity. No Gov¢mor has received any remuneration or waived payments from the College durillg the period (2023: none). 20 Penslon and sInlar obligations Thc College's employees belong lo two principal pension schemes. the Teachers Pension Scheme England and Wales ('TPS') for academic staff and a group pension plan for non-academic staff. The group pension plan is 51
FI]iCROFf COLLEGE OF ADULT EDUCATION Notes to the Accou9 (continued) administered by The People's Pension. The TPS scheme is a defined benefit scheme and the group pension plan is a defined contribution scheme. The College pays employer contributions at a rate 23.680/0. The pension costs are assessed in accordance with the advice of independent qualified a¢tuari¢s. Prior to 31 July 2023, the latest actuarial valuation of the TPS, related io the period ended 31 March 2016. A further valuation of the TPS schee. relatin8 to the period ended 31 March 2020 was publithed in October 2023. Total pension cost for the period 2024 2023 Teachcrs, Pension Sch¢me- employer contributions paid Group Pension Plan.. employer contributions paid 129,903 66,523 107,714 62,592 Total penslon to$t for the period 196,426 170,306 There were outstanding contributions of £16,702 at 31 July 202412023 £8,219). The employer's contribulion rate for Peoples Pension was 80/0 during the period. The employer's contribution rate for Teachers Pension was 23.680/0 io March 2024 and 28.68 /0 thereafter. TeAcher$' P¢o$lon Scheme The Teachers, Pension Scheme {TPS) is a statutory, contributory? defined b¢nefit scheme, governed by the Teachers, Pension Scheme Regulations 2014. These regulations apply lo teachers in schools. colleges and other educational establishments. Membership is automatic for ieachers and lecturers at eligible institutions. Teachers and lecturers are able lo opt out of the TPS. The TPS is an unfunded schne and members contribute on a 'pay as you go. basis - these conlribulions. along with those made by employers, are credited lo the Exchquer under arrangemcnls governed by the above Act. Retirement and other pension benefits ar¢ paid by public funds provided by Parliament. Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The College is unable lo identify its share of the underlying assets and liabilities of the plan. Accordingly, the Colleg¢ has laken advantage of the exemption in FRS 102 and has accounted for ils contributions to thc scheme as if il werc a dcfined-conlribution plan. The College has set out above the inlom]Y¢tion available on the plan and the implications tor the College in lernis of the anticipated conlribulion rates. Thc valuation of the TPS is Caffied out in lin¢ wilh gUlationS made under the Publie Service Pension Act 2013. Valuations credit the teacFLers' pension account with a real rate of return assuming fimd8 are investcd in notional investments that produce that real rat¢ of return. 52
FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) 20 Pension 4nd Similar obligations (continued) The actuarial valuation of the TPS which applied dwing the period ended 31 July 2023 was carried out as at 31 March 2016. The valuation reported total scheme liabilities (pensions currently in pa)Thent and the estimated cost of future benefits) for scrvice to the effective datc of £218 billion, and notional assets (estimat tUre contiibutions together with the notional investments held at the valuation date) of £198 billion giving a notional past seryice deficit of £22 billion. 8 a result of the Valuatio new employer contribution rdtes werc set al 23.68 /D of pensionable pay from September 2019 onwards (compared to 16.480/0 during 2018119)- DfE paid a teacher pension employer contribution grant of £46,354 (2022123 £44,2l3) to cover the additional costs during the 2023-24 academic year. A 11 copy of the valuation report and supporting documentation can be found on the Teachers. Pension Schemc website at the following location: ht s'.Ilwww.t¢ach¢rs ScheMe-acttrial-va1ua ions.co. ion-201 -Imedi&dOcumcntrneM Idocwnentslnews-it ension- Thc latest tUarial TPS valuation results. as at 31 March 2020, were relea8¢d in October 2023. The valuation re8uit is due to be implemented from l April 2024, from this date employer contribution rates will increa5¢ to 28.68 % (including 8 0.080/0 adtninistrdtion levy). Th¢ pension costs paid to IPS in the period amounted to £129.903 (2023 - £107,714). 53