The City and Guilds of London Institute Trustees’ Annual Report & Consolidated Financial Statements For the year ended 31 August 2020
## About us
Our vision is for a world in which everyone has the skills and opportunities to succeed.
3 Contents
## Contents
## Trustees’ Annual Report
4 - Chairman's statement
6 - Introduction by CEO
16 - Stronger Together
22 - Our impact
24 - Highlights
30 - Reshaping Assessment delivery
42 - Reviewing our corporate learning offer
50 - Transforming technical training
58 - Removing barriers and making a difference
72 - CFO Statement
74 - Remuneration Report
## 81 - How we're governed and organised
84 - Financial review
89 - Statement of Trustees' Responsibilities
90 - Auditor's report
## 92 - Financial statements
95 - Consolidated statement of financial activities
96 - Balance Sheets
97 - Consolidated statement of cash flows
98 - Notes to the financial statements
## 128 - Administrative information
We are a registered charity and Royal Charter organisation. Helping people improve their employment prospects through learning is core to what we do. We develop skills that help people into a job, develop on that job and to prepare for their next job.
4 Chairman’s Statement
Chairman's Statement
**----- Start of picture text -----**
Chairman's
Statement
Sir John Armitt, CBE
Chairman
Our
strong
purpose
The year started with
great expectations; a
new decade with a new
business vision emerging
for the next 10 years
and from January, a new
leader – the first female
Chief Executive in City &
Guilds’ 141-year history –
to steer the organisation
forward.
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5 Chairman’s Statement
But six months into the full operating year and the whole world is hit with the COVID-19 pandemic. A global crisis that forced cities and countries, including the UK, into lock-down with people having to stay home and stop the spread of the virus, while all major economies grappled with the colossal impact on Industry and jobs. Within two weeks of the lock down City & Guilds had mobilised its 1382 employees across multiple locations and geographies to enable us to work online and navigate through one of our most difficult operating periods to date, and ensure our focus remained on supporting our customers.
**Our strong purpose – to help people, organisations and economies develop their skills for growth – has never been more relevant or more vital than it is today. And it’s that purpose that we must stay true to as we look to a world after COVID-19**
As we work towards a post-pandemic recovery we continue to live in turbulent times. The predicted level of economic instability will bring with it the need for the skills sector to play a critical role in getting people back into employment, and for us to focus our offer on supporting the reskilling and retraining needed.
As an organisation we were born out of a period of intense change wrought by the second industrial revolution and we’ve been positively shaped by existential crisis throughout our history. We’ve been through two world wars, the third – and now into the fourth – industrial revolutions, many recessions and indeed other global pandemics.
Our strong purpose – to help people, organisations and economies develop their skills for growth – has never been more relevant or more vital than it is today. And it’s that purpose that we must stay true to as we look to a world after COVID-19.
We have a real opportunity to emerge from this crisis as a stronger organisation and one that is playing a leading role in digital transformation across the skills landscape, supporting the UK and global economies to recover, by reskilling and retraining workers, to get people back to employment and strengthening businesses to support recovery.
As Chair of the Institute, I remain resolutely proud of what City & Guilds under Kirstie’s leadership has managed to achieve despite these immensely tough and unexpected market and operating conditions. I’m extremely confident that despite the choppy waters still to be navigated as we look to FY2020-21 and beyond, Kirstie and her Executive Team, along with the rest of the organisation are putting in place all of the right levers, as well as a transformative digital strategy, to ensure the legacy of City & Guilds continues to perform strongly and against its purpose well into the next century.
I would like to take this opportunity to thank Kirstie, the staff and the Trustees for all their hard work and support during a difficult year.
6 Introduction from Group CEO, Kirstie Donnelly
## Introduction
Kirstie Donnelly MBE Group CEO Digital disruptor "While COVID-19 has sent shockwaves throughout the world, it has reaffirmed my absolute belief in our purpose and the work we do to transform lives through skills."
7 Introduction from Group CEO, Kirstie Donnelly MBE
## From crisis to opportunity
Never in my wildest imagination did I think that when I formally became the CEO of City & Guilds after my interim period, one week later we would plunge into the new and less palatable world caused by Coronavirus. It has certainly been a baptism of fire and a stark reminder that there is only so much we can control. But while COVID-19 has sent shockwaves throughout the world, it has reaffirmed my absolute belief in our purpose and the work we do to transform lives through skills. Work that feels more vital than ever as we look to help societies, individuals and governments recover, and address what is likely to be the biggest unemployment crisis we have seen in our lifetimes.
Back in 2016, futurist Thomas Frey famously said the largest internet business in the world by 2030 will be online education[1] . I believe post-COVID-19 that is even more likely to be the reality as the pace of change accelerates people’s learning in new ways. In fact, what had been happening slowly for the previous eight or so years, took only eight weeks to pivot our business and customers more online, ensuring they and we all stayed ‘open for business’.
those workers with low education, showing the imperative of improving skills levels for all.
We have long talked about the need to be more digital and whilst for a number of our colleagues across our brands this is the ‘norm’, the further education (FE) and skills sector has lagged behind when it comes to virtual learning and assessment models. This is an opportunity, and I would anticipate significant investment funds to start to appear from the UK Government, as well as governments internationally, over the coming months.
This crisis has now fundamentally created the digital and blended delivery tipping point – the world has now digitally tipped! – there is no going back. For examples of how we’ve supported our customers throughout the pandemic, read how we supported Cambrian Training to move its apprenticeships delivery online (page 33), how we created a COVID-19 education site for Cleveland Clinic (page 45), and how we supported our core technical training customers to get their operations back up and running (page 53).
In February 2020, we published our Missing Millions[2] report, that highlighted how people are undertrained, underemployed, and unprepared for the future. Now, coupled with the pandemic, we’re seeing a double hit, with industries such as aviation and hospitality, suffering huge job losses, while sectors such as health and social care and logistics, are growing and needing more skilled employees.
Despite the global COVID-19 crisis, I remain cautiously optimistic that this may well be the ‘disrupter’ needed for the global skills sector to find better ways to deliver and have an even greater impact. And, just as City & Guilds stepped in at the start of the second industrial revolution and helped create the skills system then, we are now determined that this will be our next legacy.
Despite rising unemployment levels there is still a need to retrain both those in and out of work and equip them with the skills needed for future industries and the growing impact of technology and automation. A recent PWC report[3] predicted that 30% of jobs would be automated by mid-2030s and that this figure rises to 44% for
> 1 https://www.businessinsider.com/futurist-predicts-online-school-largest-online-company-2016-12?r=US&IR=T 2 https://www.cityandguildsgroup.com/research/missing-millions 3 https://www.pwc.co.uk/economic-services/assets/international-impact-of-automation-feb-2018.pdf
8 Introduction from Group CEO, Kirstie Donnelly MBE
## Financial impact
**I am immensely proud of how our employees have stepped up to the challenges that COVID-19 has brought and helped navigate the organisation through one of, if not the most difficult, operating period of its time.**
9 Introduction from Group CEO, Kirstie Donnelly MBE
We are clearly now looking at a very different financial situation than when we started the financial year due to the unprecedented impact of COVID-19. From the outset of the pandemic, we set out two principles of keeping our people safe and keeping our business going, to help our customers to stay open. These guiding principles have served us well and helped us to make the right decisions, at the right times.
On a management accounting basis we have gone from budgeting £11.9m of operating surplus to a £3.2m operating surplus.This is despite our best efforts to mitigate, including taking the decision to furlough as extensively as possible to maximise the UK Government’s funding support (as well as utilising similar job retention schemes in international regions). But, whilst the UK furlough scheme covered 80% of staff pay up to a maximum of £2500 pcm
per person, we committed to furlough colleagues on full pay to the end of July, because we felt this was the right thing to do for our people. We have also secured approval of a £16 million bank revolving credit facility under the Government Coronavirus Large Business Interruption Loan Scheme to help us should we need it to mitigate further and in the event of second and third wave impacts and a worst-case scenario playing out.
We ultimately had to take the hard decision to reduce our employee costs – (which is our highest cost base overall accounting for £73.6m annual spend). However, because of the mitigations we had taken so quickly during the early stages of the pandemic, this equated to just 140 roles. The change programme commenced in July 2020 and will continue into 2021. It is never an easy decision to take but these measures have allowed us to prepare for
what is sure to be an uncertain situation for the next few years and we are still not immune from potentially having to take further cuts as we move through FY2020-21 as part of any redesign of our Target Operating Model. Read the statement from our CFO on page 72 for a more detailed summary on our financial performance.
I am immensely proud of how our employees have stepped up to the challenges that COVID-19 has brought and helped navigate the organisation through one of, if not the most difficult, operating period of its time. And I would like to take this opportunity to formally thank all my colleagues for their support and showing their grit, resilience and compassion throughout.
10 Introduction from Group CEO, Kirstie Donnelly MBE
## Objectives and activities
Progress against our blue chips & impact measures
At the start of FY201920, my Executive Team along with broader leaders across the Group committed to five ‘blue chip’ priorities to support us to deliver our purpose.
## Blue Chip Priorities
Maximise Secure marketSecure market leading technical positions to profitable EPA training exploit 14-19 position in our acquisition(s), reforms (T-level, chosen markets develop maths, English) and deliver integrated engineering offer 1 23
11 Introduction from Group CEO, Kirstie Donnelly MBE
Materially improve Build and performance strengthen Group and profitability capability to in Corporate support our longLearning term strategy 4 5
## Holding ourselves accountable for meaningful change
As a purpose-led organisation, everything we do both commercially and through social investments must deliver public benefit. In 2019 we partnered with Cranfield University and The Giving Department, to create a robust assessment framework for monitoring and measuring the impact of our activities (based on our Theory of Change approach) on delivering secure and sustained employment, strengthened organisations and a more skilled and productive society. In April, we launched our first social impact report[4] , in which we set out eight clear commitments, including integrating our social metric reporting alongside financial reporting from 2022, as well as baseline evidence of our social impact. We’re now building on this work to develop our social metrics throughout the Group.
In the report that follows, you’ll hear from members of my Executive Team about progress made against our blue chips and the important work of the City & Guilds Foundation towards removing barriers to employment and FE through our social investments.
4 https://cityandguildsfoundation.org/sociall-impact-report-2020/
12 Introduction from Group CEO, Kirstie Donnelly MBE
13 Introduction from Group CEO, Kirstie Donnelly MBE
## Rendezvous with our future
As we look to COVID-19 recovery we can really start to shape a new future and legacy for City & Guilds that has greater modernity and relevance – achieving it with more pace and commitment.
Digital will become our preferred mode of delivery, as we look to develop our Direct to Job offers and help people access good jobs and create skills bridges to identify their transferable skills and access new skills to move from one industry to another. Moving ourselves and our customers to a more digitally enabled world is simply a reality we need to embrace. It won’t change our purpose, but it will change aspects of our culture and the how and what we do to work and serve our customers. We’re dedicated to smarter ways of working that support our customers, our people and the organisation to be successful. We need to learn from our past and look to the future.
Skills and retraining will be at the forefront of driving productivity, helping economies tackle what will inevitably be a recession and high unemployment. Our purpose will never be more relevant than it is right now in the role we can play in the COVID-19 recovery.
14 Introduction from Group CEO, Kirstie Donnelly MBE
## Reimagining our culture
Across our organisation, our purpose has always united us but we know that we can always do more to create the culture that we all want and make sure City & Guilds is a great place to work where everyone feels included.
15 Introduction from Group CEO, Kirstie Donnelly MBE
The pandemic has also given us a unique opportunity to learn some positive lessons from just how well we have worked remotely during this crisis, as well as how we have innovated and pivoted to digital and blended solutions. And for us all to challenge our ‘dominant logic’ and not assume it will go back to how it was! Working digitally with customers has opened new opportunities to change the way we work in the future.
**Therefore to act and listen to our people and better understand people’s experience of working at City & Guilds, we’ve started working with a Human Resources consulting firm, Caerus Executive, on a project to encourage people from diverse groups across the organisation, to share their experiences to help us remove barriers to retention and inclusion.**
The extremely unnecessary and tragic death of George Floyd and the Black Lives Matter movement has touched hearts and minds throughout our organisation, as it has many others, and helped provide even more momentum to something I and many colleagues feel very passionately about – how we create a truly embedded culture of diversity and inclusion. This needs to be about action and not just words and while we are often good at talking, it is what we do to change and improve things that really matters.
Therefore to act and listen to our people and better understand people’s experience of working at City & Guilds, we’ve started working with a Human Resources consulting firm, Caerus Executive Limited, on a project to encourage people from diverse groups across the organisation, to share their experiences to help us remove barriers to retention and inclusion.
I remain steadfastly proud to be leading through what is probably the most significant existential change in how we live, work and play any of us could have imagined. I really do believe it has brought with it real provocation and provided the ‘mother of all necessity’ to change for the better and look ahead to new ways we can deliver even better experiences to our customers, and grow an even longer lasting legacy of all those lives and organisations we can more greatly impact through our purpose.
I am also immensely grateful for the support shown to me, as I have navigated as a new CEO through this highly unusual period, to my Executive Team and colleagues across the organisation and also the Trustee Board, whose collective experience and wisdom has been so instrumental in ensuring we continue to navigate to our ‘North Star’, and of course also to members of Council who have also provided helpful guidance – thank you. We have an exciting and challenging future to continue to forge together.
16 Stronger together
Keeping colleagues safe and serving our customers
**----- Start of picture text -----**
Keeping
colleagues safe
and serving our
customers
Nicky Pattimore
Chief People &
Customer Officer
Stronger
together
COVID-19 has created an
enormous shock to every
system. Governments,
businesses, communities,
families, individuals
are all impacted – and
it is a global shared
human experience.
From an organisational
perspective, it has
provided a shock in terms
of how organisations have
sought to manage their
employment offers, and
with this shock has come
**----- End of picture text -----**
COVID-19 has created an enormous shock to every system. Governments, businesses, communities, families, individuals are all impacted – and it is a global shared human experience. From an organisational perspective, it has provided a shock in terms of how organisations have sought to manage their employment offers, and with this shock has come some points of tension.
17 Stronger together
The first tension is the priority of safety for their people: leading with compassion and empathy for people’s personal situations; dealing with change and isolation of working from home; juggling family life and worrying about loved ones around them. The second tension is the priority of business continuity, basic financial prudence, logistical challenges, supporting customers, and managing to run an organisation under, in some cases unprecedented circumstances. Throughout this crisis we have led the organisation with two clear priorities: one to keep our colleagues safe wherever they are; and secondly to keep our business going so we can continue to serve our customers to the best of our abilities both now and as we emerge from COVID-19 in the future. We have also relied on three behaviours/ mindsets - resilience, grit and compassion. As well as the belief we will come out of this on the other side stronger and even more driven in the pursuit of our purpose.
It is my view that those organisations who have responded with humanity and who have managed the balance between putting their people first and managing business objectives, will emerge the strongest, both in terms of performance and reputation.
**Our organisation is the great place it is because of our people, and the heart and soul and love which they bring to their work, to each other, and to our customers. I believe that because of our shared passion for our purpose, we will come out of this crisis, even stronger**
## Inclusion & diversity
As Kirstie referred to at the outset of this report – the events of the summer have helped provide even more momentum to our work on improving diversity & inclusion at City & Guilds as part of our culture and employee experience, and in how we deliver our purpose.
We are actively pursuing, implementing and reviewing working practices that enable a diverse and inclusive business strategy and working environment that is truly representative and supportive of our colleagues, customers and communities.
## To date we have:
- Launched our Inclusion & Diversity Podcast series – featuring colleagues sharing their stories and lived experience.
- Celebrated Black History Month, run communication campaigns and ‘take overs’ to celebrate Black Lives Matter.
- Sourced more Inclusion and Diversity content on Kite (our learning management system).
- Created a new content guide to be used by colleagues and editors we work with to create more inclusive and representative materials.
- Drafted our new Inclusion & Diversity policy.
- Are in the process of formalising community support groups – that provide safe spaces for colleagues to talk and raise issues back within our Inclusion & Diversity champion network.
- Launched the Lived Experience Programme that we are now working through the action and communications plan to weave in to our I&D strategy.
- Held a robust recruitment process for our new Inclusion and Diversity Lead soon to be appointed.
We recognise we have more work to do to make our workforce representative and our culture inclusive, and we are committed to make our aspirations a reality which will underpin the success of our organisation strategy.
18 Stronger together
Supporting colleagues with new ways of working
Our focus for FY201920 has been on building and strengthening Group capability to support our long-term strategy.
As soon as we became aware of likely lockdowns in many of the countries we operate in, we reviewed and adapted the relevant aspects of our employment offers across the Group, to better respond and flex to the new and changing circumstances.
**19 Stronger together**
## Specifically, we:
• Established clear people policies and procedures – so staff had clarity about how to operate during the pandemic and what support was available to them. Policies covered: Travelling, Working from Home, Flexible Working and Exceptional Leave arrangements, to enable staff to manage work alongside home and caring responsibilities. We set up a recording system on our HR services platform, to track the health of staff and the impact of the pandemic. We also ran regular pulse surveys with our colleagues to ensure they were supported and so we could respond promptly to their needs.
- Mobilised and utilised our technology – including providing laptops and mobile phones and transporting kit to home addresses to enable staff (wherever possible) to continuing working remotely.
- Setup dedicated comms channels – including a COVID-19 Sharepoint site to house all policies and latest COVID-19 related news and support tools. We sent regular, dedicated emails to keep colleagues informed and created our first Groupwide Teams site for people to connect and support each other.
• Launched group connect – a shared communication and collaboration site in Microsoft Teams, so that colleagues could connect and collaborate with each other.
- Launched our Group-wide learning portal (Kite) – we worked with New Venture Fund partner, Filtered, on curating specific resources to support colleagues with the practicalities of working virtually and to help people protect their mental wellbeing during such a pressurised time. In year, 828 colleagues accessed learning through Kite, rating the contents’ relevance at
93%. 728 elearning courses had been completed by year-end. We also continue to invest in both team and individual peer coaching programmes.
- Introduced a wellbeing toolkit – including a new Group wellbeing app ‘Unmind’, to provide support to all colleagues and to provide tips and exercises to support mental health and wellbeing, along with a variety of other activities, such as virtual yoga classes, hypnotherapy and baking masterclasses.
20 Stronger together
## Building back better
We surveyed all employees in January and followed this up with a pulse-check again during lockdown. I was really encouraged that our people rated communication, collaboration, leadership, continuity of customer service and access to resources, more highly following our initial response to the pandemic:
## Communication Collaboration Leadership
63% 58% 64%
Said the Group Said 'we're Have was ‘doing a collaborating confidence in good job of effectively the leadership communicating to get things team. with done.' employees.’
We started work to explore our culture and the kind of organisation we want to be in 2019, with a whole series of culture and employee experience fact-finding workshops, using our three core brand values – leadership, imagination and integrity – to build upon. We will continue to work at our culture, creating new learning opportunities and skills for the future.
My ambition is for City & Guilds to shape and build a truly inclusive culture. We want a culture where every single one of our colleagues feels included, that their voice matters, that we value diversity of thought, where we can focus on being the best we can be as people, to deliver and serve the best into our customers for collective success.
21 Stronger together
Continuity of Access to customer service Resources
**----- Start of picture text -----**
Pulse check
during lock
76% 75% down
62% 59% January survey
**----- End of picture text -----**
Said 'we are Have the continuing resources they to deliver a need to do their great customer job well. experience.'
Diversity in all its forms, but particularly racial diversity, is something we must improve throughout the organisation and myself, along with the rest of the leadership team, are taking accountability and personal commitment to create an environment where change can happen and all colleagues feel they belong and can do their best work.
First there needs to be more understanding of people’s experiences, so we’ve launched a lived experience project, to hear from diverse groups across the organisation to identify barriers to retention and inclusion. This will ultimately help us to create a culture of inclusion at the heart of our organisation, that we can all feel proud to belong to. The work will start in earnest from the beginning of September.
22 Our impact
Achievements & performance
Our impact
23 Our impact
As City & Guilds’s core purpose is to help people, organisations and economies to develop their skills for growth, in 2019 the organisation set a bold ambition to measure and report on the societal impact its products, services and interventions have on individuals, organisations and wider society. To help drive this forward, City & Guilds published its first social impact report in April 2020, recognising this represented the start of the journey.
In fact, as part of eight commitments made to better direct how it continues to drive social change through learning, the Trustees have committed to reporting societal impact on an annual basis and have recognised, as a charity and Royal Charter body, that these societal metrics are of equal importance to their financial reporting.
This section provides a snapshot of social impact, based on the framework developed over this financial year. A regular update on its commitments to ensure even greater social impact will be provided online.
24 Highlights
Learner reach & completion:
We supported:
## 1.06m
1,006,687 learners on City & Guilds and ILM programmes of study, with 762,654 full certifications achieved.
## 1350
1350 on a Technical Training apprenticeship.
## People
## 350
Over 350 learners on higher technical education and degree programmes.
Despite the challenges of COVID-19, we supported almost 3.5m learners to continue learning across the Group
## 22,388
22,388 people on Intertrain’s technical training courses.
## 19,000
19,000 leaders and managers through The Oxford Group’s programmes.
## 2.3m
Improving wellbeing:
## 86%
86% of bursary recipients said they feel more in control following completing their qualification..
## 100
100 female mentor/ mentee relationships were established through our funding The Girl’s Network programme.
## 91%
Job satisfaction is extremely high among working Land-based Technicals alumni, with 91% of those working in a job related to their course
2.3m learners across Kineo elearning platforms.
25 Highlights
Progression:
## 81%
81% of learning providers agree City & Guilds’ products and services enable their learners to succeed in their chosen path
## 92%
92% of bursary recipients employed six months following course.
## 48%
48% of young offenders on the funded CGL mentoring programme are more than 3x higher to progress into education, employment or training.
## 106
106 young offenders in Birmingham received one-to-one mentoring with almost half (48%) progressing into education, employment or training.
## 9
Nine months after course completion, over half of City & Guilds Land-based Technicals students, were in work (30% employed in a job directly related to their course).
Through our foundation, 106 young offenders in Birmingham received oneto-one mentoring with almost half (48%) progressing into education, employment or training.
Sustained learning:
## 84%
84% of City & Guilds Land-based Technicals learners achieved a sustained positive destination outcomes (either employment of continuing in education or training) six months after completion of their course.
26 Highlights
## Reach
## Embedded skills
## 291,000
291,000 Kineo Course (library content) completions
## 132
Leaders and managers in 132 organisations, spanning 54 countries were also supported by The Oxford Group through over 2000 face-to- face and virtual events
## 74%
As a result of skills developed from training with Gen2, 74% of staff improved their grade in their subsequent observation.
## 94
94 applications for the 2020 Princess Royal Training Award were received and 43 more workplace learning programmes achieved
the standard.
## Organisations
We worked closely with over 1563 organisations, across 80 countries
Organisational performance
## 88%
88% of PRTA alumni organisations say that investing in training leads to higher productivity
## 88%
88% of The Oxford Group’s work is from referrals – customers happy with impact on business performance.
Added value
## Industry awards
The Oxford Group’s programmes and Kineo’s elearning supported clients to win prestigious industry awards, including Brandon Hall Group and Stevie awards.
## 78%
In 2019, we formed a Princess Royal Training Awards Alumni group to share expertise and knowledge. 78% say that being part of the alumni allows them to learn from others and bring back new ideas to the organisation.
28 Highlights
Changing nature of Learning
Addressing skills in need
## 200
We successfully delivered remote apprenticeship invigilation with over 200 organisations, permitting them to deliver over 1600 remotely invigilated online tests.
## 4430
4430 EPAs also delivered remotely.
## 23,895
806 people directly and 23,895 indirectly have benefitted from our grant-giving activities including 67 bursary recipients
## Missing Millions
Each year, we conduct research and economic modelling to better understand the UK’s skills gaps. This year’s research ‘Missing Millions’ identified specific regions and individuals who are missing out on
skills-based learning.
## Wider Society
## 22,000
We agreed an alternative Centre Assessment Grading method for 22,000 young Jamaicans due to sit English and maths exams (post lockdown).
## 1052
1052 people received employability training through our funding with UnLtd’s Thrive Access to Employment Fund.
## 40,000
40,000 more SmartScreen users (25% who accessed via mobile devices).
## 2
We supported two RSA’s Cities of Learning pilots where digital badging is being used to recognise informal learning that enhances the employment prospects.
29 Highlights
Championing vocational learning
## Act Now
City & Guilds conducted research through roadshows in East of England, Liverpool, London, Manchester, North of England and West Yorkshire in Summer 2020 to understand how to help unemployed people back into work after Covid19. Its findings led to the report ‘Act Now’ proposing the creation of digitally enabled Employment and Training Hubs unlocking capability in the current system.
## 1/3
Partnership with The Girl’s Network partnering girls with mentors from non- traditional career pathways. They report a third are more interested in apprenticeships.
## 12,372
12,372 young people heard from an apprentice through Apprentice Connect
## 29
We presented 29 awards to celebrate the outstanding achievements of learners and tutors including 10 Fellowships.
Focussing on sectorbased outcomes
## 2000
We offer more than 2000 technical and vocational qualifications across 28 sectors, working with employers and trade associations to ensure tailored qualifications to address sector requirements.
## 9000
Nearly 9000 healthcare workers accessed the new Comprehensive COVID-19 Care platform across 109 countries, to urgently upskill or reskill in ICU training. A Gen2 apprentice is the first in the UK to complete the Nuclear Technical Degree Apprenticeship.
## Skills Bridges
Developed Step into Social Care product aimed at individuals who are seeking employment following displacement from industries such as hospitality, retail and travel and tourism. City & Guilds and FutureLearn are already piloting other Skills Bridges to support the UK’s recovery.
30 Reshaping assessment delivery
## Achievements & performance
David Phillips MD City & Guilds & ILM
Reshaping assessment delivery
Our core assessment and credentialing business delivers qualifications, apprenticeships and assessments in multiple industries from entry level through to Level 7 qualifications in leadership and management. We also accredit training, provide teaching and learning resources and help people to evidence their skills through digital credentialing.
31 Reshaping assessment delivery
Our focus for FY2019-20 has been twofold; maximising our market position to support as many learners as possible through the 14-19 reforms (T-levels, maths and English) and to build a large scale End Point Assessment (EPA) business to serve apprentices and employers in our chosen markets.
Whilst we are below our overall business target performance measures as a direct result of COVID-19, we are pleased to report that we have achieved our original EPA event target having delivered 10,008 EPA events in the financial year up until end of August 2020 and delivering over 20,000 Technicals assessments. And despite the pandemic, in April we submitted four bids to design, develop and deliver T Level qualifications in engineering and business administration, which we can now confirm we’ve won!
As a result of COVID-19 we found ourselves needing to rapidly change our focus to support our customers to continue to deliver learning and assessment. This was a large undertaking and we rapidly built digital learning content and assessment tools to help our customers adapt to remote delivery and assessment. This resulted in an increase of 40,000 users on our SmartScreen platform, 25% of whom accessed the platform from their mobile devices; indicating a shift in the way learners and tutors want to access learning support. Read one example of how we supported customers to continue to engage and support learners during lockdown on page 33.
**Our focus for FY201920 has been twofold; maximising our market position to support as many learners as possible through the 14-19 reforms and to build a large scale End Point Assessment business to serve apprentices and employers in our chosen markets.**
We are now focusing more time and effort on supporting our customers to deliver remotely through a product build strategy to make sure our programmes can be easily adapted online. Examples of this are in our Adult Skills market in the UK – where we have adapted our learning content to help our customers reach more socially distanced and stay at home learners, who need access to further learning to help them gain employment.
The pandemic also meant that we needed to rethink how we deliver EPA, and we swiftly adapted the assessment models to allow for more flexibility in delivering the assessment remotely. Between April and August, we delivered 4232 EPAs remotely, some of which with multiple assessments points. This was before we’d even managed to embed delivery of our existing offer into this new market – so a pretty staggering achievement. And 198 of these learners went through their EPA journey on our new centralised end-to-end EPA Pro platform, which following successful testing, we’ve now started to roll out to more customers and received really positive feedback so far.
32 Reshaping assessment delivery
We ran a successful apprenticeship remote invigilation offering with over 200 organisations. This permitted these organisations to deliver over 1600 remotely invigilated sessions to their candidates for online tests. Working closely with a remote invigilation company, we are developing a longer-term outsourced solution which we will be rolling out towards the end of 2020 and into 2021. We expect this to support the delivery of thousands more remotely invigilated sessions to take place for most of the standards we offer.
through this thanks to the hard work of our customers working closely with our staff who have all been driven to get learners the results they deserve.
In other international markets, key achievements include securing a very significant contract with the Crown Prince Court in Abu Dhabi to deliver assessments against a programme of learning in moral education to all schools in the country, which means we’ll be able to positively impact the lives of 12,000 learners.
In the UK and Jamaica, COVID-19 meant we had to cancel the planned summer exam series and replace it with a Centre Assessed Grading process. This required an incredible amount of collaboration and training with our customers in a difficult and trying time and we have been inspired by the resilience of the sector and our own staff at City & Guilds. We have come
In India, we won a contract to support an additional 1200 learners with Business & Youth Starting Together – a not-for-profit mentoring programme for entrepreneurs – and we cemented the 60-year relationship we've enjoyed in Jamaica, with a new 10-year contract to impact the lives of over 250,000 young Jamaicans. (Read more on this below).
33 Reshaping assessment delivery
## Supporting our customers during COVID-19: Cambrian Training
Cambrian Training is a training provider in Wales delivering apprenticeships in a traditional way. But when lock-down struck they sought our help with how to keep their learners engaged, motivated and to support apprentices with their portfolios remotely, by taking pretty much their entire delivery online.
We held several customer support webinars to really refresh understanding of how to maximise use of our support products and services and to help customers continue to engage learners remotely. During the session with Cambrian Training, we worked through a number of suggestions for fully optimising the capability of our e-portfolio (Learning Assistant), such as embedding the knowledge questions for every qualification unit and making sure they were making the most of electronic signoff processes.
Cambrian Training were delighted both with the dedicated support they received from us and the Learning Assistant product – describing it as a ‘lifeline’.
As a result, not only were they better able to stay connected with their learners but participation and learner engagement doubled in the first three weeks. Portfolios were also completed quicker thanks to this new way of working.
**‘Without the City & Guilds Learning Assistant platform, we would be in a totally different position and struggling to engage with our learners.’**
Hazel Thomas, Training Officer, Cambrian Training
**‘I am not very computer-literate, but Learning Assistant is absolutely brilliant and easy to follow. Because I am a frontline worker, I am not officebased... being in lockdown allowed me to log-on every morning to do coursework and Jay assesses it.’**
Cambrian Training apprentice
34 Reshaping assessment delivery
## Impact story: Supporting better prospects for young Jamaicans
In November 2019, we secured a 10-year agreement with the Ministry of Education, Youth & Information in Jamaica. This is a first of its kind in Jamaica and shows the trust they are putting in the City & Guilds brand and service we will provide. This is particularly significant as it’s one of the largest projects (worth £12m) we’ve ever won internationally.
35 Reshaping assessment delivery
Jamaica’s Minister for Youth, Hon. Alando Terrelonge, is genuinely committed to supporting the young people of Jamaica and the issues they face, such as mental health and wellbeing, and we’re really excited to work alongside his Ministry to help improve outcomes for over 250,000 young people who will develop their skills and complete a City & Guilds qualification in English or maths during this period. Our qualifications are offered as an alternative to the Regional Caribbean Secondary Examinations (CXCs) for those students needing a more competence-based approach to succeed.
The Jamaican Government is also being very innovative in their thinking about different ways that skills can be recognised and verified. This provides us with a great opportunity to scale up digital credentials too, alongside core qualifications in maths and English.
Supporting young Jamaicans’ education will really help them to fulfil their hopes and aspirations, and certification will have a huge impact on their working lives and social mobility.
‘After learning more about the methodology of the City & Guilds process, we bravely decided to pursue the route of calculated grading in the interest of ensuring the safety of our young people, while ensuring that they would be provided with results on time to move on with their education or to enter the world of work. We firmly believe that assessment is a critical aspect of the educational process and hence could not be eliminated. We are more so happy with the level of detailed support provided by the City & Guilds to our Educators… We never doubted this decision and today we believe this decision will go down in history as a best practice for consideration and use in the future. Sincere appreciation once more to City & Guilds and thank you for supporting Jamaica.’
Dr Grace McLean, (acting) Permanent Secretary to the Minister of Education, Youth &
36 Reshaping assessment delivery
## Progress so far
We have managed
## 54,000
entries into our maths and English courses, targeted at 16 to 18-yearold Jamaicans.
By January 2020, we had
## 27,000
students (including 1000 learners from partner nations Bahamas, Bermuda, and the Cayman Islands) registered to sit examinations in June, but due to the pandemic sending the country into lockdown in March, schools in Jamaica closed before students had the opportunity to complete any formal assessments.
To address this situation, we worked closely with the Ministry and agreed a method of CAG (Centre Assessment Grading) – an innovative first for Jamaica – so learners could still achieve their English and maths qualifications.
37 Reshaping assessment delivery
We also agreed to provide a formal examination to
## 4,000
students for whom the process of CAG would not be appropriate.
As a result of offering an alternative method of assessment,
## 22,000
students are poised to achieve a valid qualification result via the process of centre assessed grades, which is a massive achievement in view of the challenge of the pandemic, supporting them to progress on to further education or into employment.
One student – Shaquan Small – has been provisionally accepted by the University of Technology of Jamaica and hopes to commence her studies in October 2020, pending her maths and English results:
‘Exam stress combined with the pandemic makes a pretty frantic time. So, when the decision was taken to use the Centre Assessment Grading process for 2020 to award City & Guilds mathematics and English final grades, I was ecstatic. This elation was also shared by other students, as they did not have to stress themselves with the acts of sanitising, masking and social distancing to sit these exams in a demanding and stressful environment. Thanks to City & Guilds for their kind consideration in using this method of assessment and putting the health of all candidates above everything else.’
Shaquan Small, Grade 11 student at Dunoon Park Technical HS
38 Reshaping assessment delivery
## Impact story: Impacting landbased learner destinations
We commissioned an independent study to measure and illustrate destinations for learners completing a Level 3 City & Guilds Technical qualification in landbased industries in 2019. Wherever possible the study focused on measures stated in our Social Impact Assessment Framework.
39 Reshaping assessment delivery
The findings confirmed that the majority of learners had positive perceptions of their course, stating that it was the right course for them at the time, that they would recommend it to others and that it helped them feel more confident about the future.
The study demonstrated meaningful impact of completing a City & Guilds Technical qualification, with more than eight in ten learners (84%) achieving a sustained positive destination outcome (either employment or continuing in education or training).
Job satisfaction was also very high (81%) amongst those in work. Two thirds hoped they would be doing the same (work or study) in six months’ time, suggesting they are happy in their initial destination.
Our Technical qualifications were reported to aid the development of skills that were relevant to both study and the workplace, such as team working and confidence. A large proportion (80% of those in work, 90% of those studying) said they felt their qualification had helped them to progress their career (if they were in work) or helped them prepare for studying (if they were in education).
**Nine months after course completion, over half of participants were in work, 30% employed in a job directly related to their course, and 35% were continuing in education or training.**
41 Reshaping assessment delivery
## Learner case-study
With a love of all animals, Melissa wanted a course that would teach her how to care for them. One of the benefits of the City & Guilds Level 3 Technical qualification in Animal Management, which prompted her choice, was the breadth of topics it covered.
Following successfully completing her course at Kingston Maurward College, Melissa volunteered at an aquarium before progressing into full-time paid employment as an aquarist. She’s now working with otters and reptiles and has recently been trained to work with penguins.
Melissa has found that what she learned on her course, such as how to do health checks, very useful for her work. At the time, there were some aspects she didn’t think relevant – such as public speaking and estate skills – but which have also proved valuable. In her current role, she gives talks to sometimes one hundred members of the public and is involved in maintaining the aquarium’s facilities, such as tanks and filtration systems.
**‘I didn't know if there was any type of animal I wanted to specialise in, so doing that course was much more open, I could go in any direction I wanted to once I'd finished… it's allowed me to work with quite a mixture of different types.’**
Melissa, Kingston Maurward College, former City & Guilds Level 3 Technical student
Melissa is pleased that she is gaining experience with different animals and in the future, she hopes to work in a zoo or safari park with big animals.
42 Reviewing our corporate learning offer
Achievements & performance
Andy Moss MD Kineo & The Oxford Group
## Reviewing our corporate learning offer
Our Corporate Learning division is home to Kineo, a strategic leader in the field of online learning, designing learning experiences that drive measurable impact on business performance, and The Oxford Group, where we've been unlocking leadership and management potential for the world's top businesses for over 30 years.
43 Reviewing our corporate learning offer
Our focus for FY2019-20 was to materially improve performance and profitability, and we had started a full review of our offer to look for ways to do this prior to the pandemic. Both Kineo and The Oxford Group operate at the forefront of learning and development globally, and whilst the onset of the pandemic resulted in initial spending reductions among many of our corporate clients, it also meant rapid change for our teams as we looked to respond to the challenges facing our customers and learners around the world.
At The Oxford Group, this meant a dramatic pivot to virtual delivery across all our programmes, ensuring we could support leaders and managers in their response to the ‘new normal’ of life under coronavirus. Perhaps not surprisingly, we saw strong demand for support in managing through ambiguity and change, and for leading in a virtual world. And more generally, we’ve seen a solid, and seemingly permanent, shift to blended and virtual programme delivery, backed by ever richer data to measure the impact of those programmes.
At Kineo, online learning was already deeply embedded in our DNA, and the six months following the pandemic have been challenging and rewarding in equal measure. Challenging because of the impact on our customers around the world, as whole industries and segments of the market absorbed and responded to profound change. Rewarding because of the way we’ve been able to partner with customers to help them respond by delivering learning experiences that engage, excite and empower learners.
**This relentless focus on our customers, and on ensuring their responses deliver real impact, means our performance during the pandemic has held up well.**
This relentless focus on our customers, and on ensuring their responses deliver real impact, means our performance during the pandemic has held up well. And throughout the pandemic, we’ve continued to extend a range of open resources in support of customers and learners: we launched COVID-19 support hubs on both Kineo and The Oxford Group’s websites; we issued a series of free webinars and guides to support organisations with remote working, dealing with ambiguity and leading remote teams for example.
None of this would be possible without the grit, resilience, and passion of all our colleagues and partners in Kineo and The Oxford Group. That’s what makes both businesses so special, and why I’m so confident as I look ahead to our future in this post-pandemic world.
44 Reviewing our corporate learning offer
Supporting our customers during COVID-19: Cleveland Clinic
‘As the pandemic response started to pick up in the United States, we felt a public obligation to provide a free COVID-19 care resource center to all healthcare workers. It was critical that the development work around this platform be done quickly and our existing relationship with Kineo enabled us to complete it at an urgent pace. Thanks to hard work from the Kineo Team as well as our internal teams, our Comprehensive COVID-19 Care training system launched just 20 days after our initial outreach.’
Jonathan Bonezzi, Director of Technical & Educational Resources at Cleveland Clinic
45 Reviewing our corporate learning offer
As the first wave of the COVID-19 pandemic hit the United States, access to information was vital in protecting public health. This was especially true for healthcare workers. As cases rose steeply, the demand for volunteers reached an unprecedented level. Healthcare professionals from all backgrounds were called to action in support, but many did not have recent experience in Intensive Care Units (ICU).
Cleveland Clinic already had a comprehensive internal elearning portal built with help from Kineo. It was full of educational resources and training, but the need for a second external system became apparent to quickly upskill those nurses and physicians without regular ICU experience required to treat COVID-19 patients. The dedicated portal had to be easy-to navigate and mobilefriendly, so the free educational resources could be available at any time without confusion.
With all this in mind, the Kineo development team worked closely with Cleveland Clinic to conceptualise and launch the comprehensive COVID-19 Care training system in record time.
The agile development of these COVID-19 training modules provided essential learning for healthcare workers and equipped them with the knowledge to save lives. Critical training became instantly available within a few clicks, covering relevant ICU essentials like how to operate a respirator.
While the direct impact of this is immeasurable, the Comprehensive COVID-19 Care platform had been accessed by nearly 9000 visitors from 109 countries in its first three months since launch in May 2020. The platform also helped Cleveland Clinic maintain its strong reputation as a leading educator in healthcare, which was especially important during a global pandemic.
46 Reviewing our corporate learning offer
## Impact story: Tereos managers go on a blended learning journey to outperform competitors
In 2018, with a new COO on board, Tereos published ‘Ambitions 2022’, a strategy for transformation based on diversification and expansion. Part of this was to overhaul L&D, specifically leadership development, focusing on 47 global senior plant managers who had never received any formal leadership development, were used to working in silos and comprised a diverse mix of languages, cultures and behaviours.
47 Reviewing our corporate learning offer
The Oxford Group worked collaboratively with Tereos to design their unique and award- winning Plant Manager Development Programme, taking every plant manager on a blended learning journey, aiming to:
- Break down silos and create a culture of community and transverse collaboration.
- Help people manage change and highlight diversification as a strength.
- Embed people values and behaviours, promoting understanding of the Tereos value chain.
- Develop leadership and management competencies (versus a purely technical focus).
This 13-month blended learning journey launched with face-toface modules (three modules of three days each), delivered in three different locations – France, Brazil and Belgium – blended with virtual classrooms, webinars, peer coaching, a business challenge as well as an ongoing action plan. The first cohort concluded the programme in November 2019.
In FY2019-20, The Oxford Group delivered two further cohorts with the final modules of the programmes being transformed to virtual delivery. We started planning and design work in the summer of 2020 for future delivery to enable the programme to be delivered in a virtual or face-to-face format and to expand the programme across additional languages of Portuguese, Brazilian and Czech.
Surveys and behavioural assessments undertaken pre and post learning demonstrates the programme had a big impact on performance, adherence to values and leadership competencies, and led to Tereos outperforming their competitors. The programme won a Gold Award in August 2020 at the Brandon Hall Group HCM Excellence Awards for the Best Advance in Senior Management Development and a Gold in the Best leadership development programme category in the fifth annual Stevie Awards for Great Employers[5] .
5 https://www.oxford-group.com/insights/triple-gold-award-wins-oxford-group-clients
48 Reviewing our corporate learning offer
## Impact story: Reinventing authenticity at Barilla
The Barilla brand is associated with being ‘authentic’, yet employee surveys and feedback from managers suggested the opposite, there was a lack of honesty and transparency and people were unhappy. In 2014, Barilla sought help from The Oxford Group to determine how they could transform their culture. We worked closely with them, starting with interviewing senior stakeholders to encapsulate and agree what, for Barilla, being ‘authentic’ meant.
49 Reviewing our corporate learning offer
Based on insights from stakeholders, Barilla and The Oxford Group developed a strategy to create a culture of authentic leadership, with ‘Be authentic’, as a core business competency at its heart. The aim was to increase employee satisfaction, engagement, and retention by aligning the people strategy to the business strategy. It was essential that the programme was delivered to all employees, whether people managers or not, to empower everyone to be leaders, that they can all make a difference.
Having successfully delivered the programme for a few years, in 2019 Barilla and The Oxford Group started to think about how digital innovation could enhance the flexibility and reach of the programme. The Oxford Group brought in Kineo, to support Barilla in a ‘discovery’ project to explore options for making the programme more digital. Then we were hit by COVID-19, which led to an urgent need to accelerate this work. Together with Kineo, we supported Barilla to transition the programme from a traditional oneday face-to-face workshop to two half-day virtual workshops. And, post-lockdown, we successfully delivered the first virtual sessions. Head of L&D, Filippo Romanini, thanked The Oxford Group and Kineo for their expertise and support throughout the transition saying, “Thanks to you we didn’t feel alone in this process”.
The Authentic leadership programme has become more than a learning initiative. By engaging at all levels, and including senior stakeholders, Barilla proved their commitment to culture change, impacting the mindset and behaviours of their people. It has also become a mandatory step in the two-year onboarding path of all Barilla employees.
An independent evaluation of the programme’s success from 2014 completed in January 2020, called the impact of the Authentic Leadership programme ‘unprecedented’.
## Outcomes include:
increased employee ratings for ‘appreciation of diversity’ and ‘relationship with (internal) customers’, ‘Personal morale’ and ‘Loyalty towards Barilla’ and employee retention increased to 83% from 81%.
83%
Barilla’s culture transformation was also evident in the results of their latest bi-annual Diversity and Inclusion survey, which revealed a 3% increase (to 93%) of employees who are ‘proud to be an employee in Barilla’.
93%
In August 2020, the programme won a Silver award for Best Results of a learning programme in the fifth annual Stevie Awards for Great Employers[6] . As we move into 2021, Barilla intend to enhance the programme further with a blended learning approach, as recommended by Kineo following the discovery work.
6 https://www.oxford-group.com/insights/triple-gold-award-wins-oxford-group-clients Image of a Peer Advisor training session, courtesy of St Giles Trust
50 Transforming technical training
Achievements & performance
Martin Hottass MD City & Guilds Technical Training
Transforming technical training
Our technical training business creates the engineers and technicians of tomorrow by delivering nationwide, industry-leading training from apprenticeships through to degree level programmes.
51 Transforming technical training
As the newest of City & Guilds’ business divisions, our focus continues to be on exploring and securing further opportunities for growth and developing our integrated engineering offer. We kicked the year off to a great start with the acquisition of Intertrain – which is both the largest railway infrastructure training provider in the UK and rated as ‘Gold’ by the National Skills Academy for Rail (NSAR). Intertrain trains over 22,000 learners and more than 40 apprentices nationwide every year. It delivers over 300 different training courses and assessments, training new entrants into the sector as well as re-skilling, upskilling and recertifying existing rail personnel against the national Sentinel standard.
Gen2 – our Ofsted Outstanding provider specialising in engineering and nuclear training – celebrated 20 years of business and supported 1350 apprentices and over 350 students on higher education and degree programmes during FY201920. Overall, its financial performance in year has been strong again. We secured a contract extension with Sellafield, retained ECITB7 Access Learning and Teaching Assistant framework programmes, and won eight new bids, including one for the Cumbria County Council Community Learning Framework.
Whilst early days for Intertrain, we secured Adult Education Budget (AEB) funding for 231 learners and confirmed 37 new apprenticeship places to start before January 2021. In year, we’ve trained 22,388 learners in total. Despite the pandemic, we managed to submit two tenders for new business, secured apprenticeship programmes with three new employers, and we’ve collaborated with Kineo APAC to convert our small plant courses to remote learning, which will be launched during autumn 2020.
Our focus continues to be on exploring and securing further opportunities for growth and developing our integrated engineering offer.
7 The Engineering Construction Industry Training Board
52 Transforming technical training
Supporting our customers during COVID-19
**‘The rail industry has committed to increase the diversity of its workforce, and make sure that more recruits come from areas that have been left behind in recent years. It’s great to have such a strong brand as City & Guilds as part of the team.’’**
53 Transforming technical training
Gen2 continued to stay open for business throughout the pandemic lockdown period, whilst working flexibly and from home to move all apprenticeship delivery online, so we could continue to deliver our apprenticeship programmes to future engineers. We also moved our apprenticeship recruitment for the new academic year online.
Although Intertrain was forced to put delivery of its mainly practical Licence to Practice training courses on hold as stipulated by Network Rail, we managed to shift our AEB and study programme delivery to virtual learning, to continue to support learners and employers as much as possible.
## Supporting rail operatives back to work
The team worked closely with customers and regulators, such as Network Rail and NSAR, to agree guidelines for students to return to practical training delivery, including measures around staggered classes, single use face masks, individual desks, and chairs.
For NSAR, being able to resume operative training was essential to help the rail industry get back on its feet. Neil Robertson, NSAR’s Chief Executive said:
‘The rail industry has committed to increase the diversity of its workforce, and make sure that more recruits come from areas that have been left behind in recent years. It’s great to have such a strong brand as City & Guilds as part of the team.’
## Securing new apprenticeships starts for Sellafield Ltd
Over 300 formal apprentice interviews were due to take place for Sellafield candidates,
but these were no longer possible during lockdown. Gen2 worked closely with Sellafield, and other Cumbrian organisations, and used a range of technology platforms to conduct the interviews remotely.
The interviews proved to be a great success with 220 completed for engineering apprenticeships and 100 remote interviews for degree programmes. The switch to an alternative process was essential to ensure that new apprentices could start their programmes of study as planned, from autumn 2020.
54 Transforming technical training
## Impact story: First apprentice to complete Nuclear Technical Degree Apprenticeship
Annabel Watson – a Gen2 learner and civil, structural and architectural (CS&A) apprentice at Jacobs – was confirmed as the first in the country to successfully pass her End Point Assessment following completing her three-year apprenticeship, leading to her achieving a full Nuclear Technician Foundation Degree.
55 Transforming technical training
Annabel Watson – a Gen2 learner and civil, structural and architectural (CS&A) apprentice at Jacobs – was confirmed as the first in the country to successfully pass her End Point Assessment following completing her three-year apprenticeship, leading to her achieving a full Nuclear Technician Foundation Degree.
The Level 5 Foundation Degree Apprenticeship provides a fantastic opportunity to not only learn on the job, but also undertake a fully paid degree whilst earning a salary. The training has enabled Annabel to develop the skills, knowledge, and competencies to undertake engineering tasks, such as calculations for stair structures, progressing from her previous more design-based responsibilities, specialising in CAD drawings.
Speaking about her training, Annabel said: ‘Since completing the Foundation Degree, I have found that I have been able to tackle more complicated engineering tasks. It has also given me the opportunity to progress onto a full BEng Honours Degree.’
Jacobs’ Training Manager, Marie Mills said: ‘We’re delighted for Annabel and her tremendous achievement. These degree apprenticeships are crucial to helping us bring future talent into the wide-ranging engineering and professional services careers we offer – supporting our strategy to grow diverse skills and capability and foster innovation.’
**With her Foundation Degree secured, Annabel is now starting her BEng (Hons) Degree in Civil Engineering, which she will complete part time. She will also continue to develop her career with Jacobs.**
56 Transforming technical training
## Impact story: Intertrain is appointed Colas Rail’s preferred apprenticeship provider
Colas Rail approached Intertrain to take over its apprenticeship provision following a decision to switch from their previous supplier who they were not satisfied with. They also made the decision to no longer be an employer provider, and appointed Intertrain as their preferred supplier.
57 Transforming technical training
Intertrain already worked with Colas providing training courses and assessments ranging from Personal Track Safety to Control Of Site Safety, Machine Crane Controller to Small Plant training. And it now provides L3 Rail Technician Apprenticeship Standards to Colas’ new and existing trainees, offering the following pathways: Track, Overhead Lines, Signalling and Traction and Rolling Stock.
Since becoming their preferred supplier, Intertrain has transferred 10 apprentices from the previous provider and started eight new apprentices in year – despite the pandemic. David continued:
‘Intertrain has worked hard with us identifying requirements and timescales that not only met the needs of the standards but added value to our staff and company. In this ever-changing world we now find ourselves, Intertrain has found great ways of carrying on with the delivery of the scheme throughout the pandemic, where other providers have paused theirs, which has reduced the risk of apprentices falling behind.’
Following Colas’ new recruitment process, a further 12 apprentices are expected to start their programmes with Intertrain in October 2020.
**‘We have a relationship with Intertrain that goes back a number of years… the quality of service and variety of training is exceptional. They have met our everchanging needs and developed many bespoke training packages that has helped us to deliver for our customers. This and the fact that they are now part of City & Guilds made this an easy choice for us.’**
David Anderson, Competence Manager, Colas Rail
58 City & Guilds Foundation: Removing barriers and making a difference
Achievements & performance
Sally Eley City & Guilds Foundation Director
## Removing barriers & making a difference
59 City & Guilds Foundation: Removing barriers and making a difference
The City & Guilds Foundation amplifies the work we do across the City & Guilds Group, leading on social investment, recognition, and advocacy programmes. Launched at the beginning of FY2019-20, it acts as a catalyst to help remove barriers to getting a job, celebrating best practice on the job, and advocating for jobs of the future. Its innovative activities make a real difference to people’s lives and to society.
The Foundation also drives forward the development and delivery of our Group Impact Framework, leading on the way we integrate, measure, and report social impact across every area of the organisation.
## Supporting our networks during COVID-19
In response to COVID-19, we swiftly joined over 350 funders to sign a joint statement pledging to offer support to civil society groups affected by the outbreak, co-ordinated by London Funders. We also committed to reallocate some of UnLtd’s grant to support its Thrive Fund social enterprises, and joined the COVID-19 Youth Employment Group pulling together data, organisations and insights with the aim of helping young people now unemployed, who see the prospect of work as more distant than ever, or those who are now worried about the transition between education and work.
It's also been reassuring to know that organisations were committed to submit applications to the Princess Royal Training Award (PRTA) despite the challenges thrown up by COVID- 19, and that employers do still value training and development and continue to invest in it, as we come through the pandemic.
**"Employers still value training and development and continue to invest in it, as we come through the pandemic"**
In recognition of the immense amount of effort and resilience it took for organisations to apply in such a challenging period, the Princess Royal penned a letter thanking applicants and commending them for prioritising workforce training – something which will be vital as we come out of the crisis. We were humbled to receive feedback that really showed how valued our awards and commitment to excellence is:
‘Thank you for sharing this with the team now, this has gone such a long way to helping them feel still included. It’s such difficult times and any gestures like this really resonate. With my heartfelt thanks’
HRH, The Princess Royal
60 City & Guilds Foundation: Removing barriers and making a difference
## Impact story: Innovating in a crisis with St Giles Trust – Connectr
The best ideas are borne out of necessity, and for St Giles that was finding a way to deliver the Peer Advisor programme during COVID-19. It trains people with lived experience of social exclusion, including many prisoners and prison-leavers, to become Level 3 qualified Peer Advisors who then go on to support others from similar backgrounds.
61 City & Guilds Foundation: Removing barriers and making a difference
The Foundation released £25,000 funds to St Giles Trust to enable fast tracking of Connectr - a digital platform to allow peer mentors to continue to support ex-offenders. But many of St Giles’ learners were concerned that the vital connection from the programme’s face-to-face support would be lost. Moving to online calls was not easy as many do not have the skills or confidence to use digital technology.
Joseph is a learner on the St Giles Trust Peer Circles project, and recently released from prison. He had started volunteering, usually around three times a week, completed most of his coursework, and was preparing to complete his job observations as part of his qualification. During lockdown, St Giles was in constant touch to check in and encourage him to keep at positive activities. But Joseph is really missing the face-to-face support of his peer mentor.
The value of the new platform will go far beyond the immediate crisis and has potential to substantially increase the impact of the Peer Advisor programme in the long-term. By creating a stronger sense of community and keeping people connected, both within local groups and across the UK, St Giles will be able to reach more vulnerable people.
Importantly, providing services through a digital platform offers a vital upskilling opportunity for individuals to develop the digital literacy they need to be part of a society that is increasingly reliant on technology.
‘We are really pleased that City & Guilds is funding our work to develop the Connectr platform…. [It] will help create an online community where Peer Advisors can continue their learning and stay in contact with their Trainer. Most importantly, the hundreds of Peer Advisors on our programmes around the country will be able to communicate with each other… encourage and motivate, so that all our Peers have the confidence and skills to continue to change the lives of those facing severe challenges. With so many of our most vulnerable struggling with increased social isolation, poverty, and mental health issues as a result of the current pandemic, our Peers have never been more needed.’
Andy Cross, Chief Executive of St Giles Trust
62 City & Guilds Foundation: Removing barriers and making a difference
Helping the hardest to reach develop skills for work with strategic funding
**Over the last four years, our social development fund has helped 8,170 people to develop their skills.**
63 City & Guilds Foundation: Removing barriers and making a difference
We’re delighted to report that over the last four years our social investment has supported 8,170 individuals to develop their skills to get into employment, making them 3.5 times more likely to be employed as a result of our interventions. We’ve also worked with 55 organisations to ensure we are reaching the people facing significant disadvantages in our society. Indirectly, we have supported at least 26,357 people – showing how the value of supporting people on an individual basis extends far beyond the immediate impact.
Two of our four current fund recipients – Change Grow Live and The Girl’s Network – are now in their final year. And, following initial programme development, UnLtd and RSA’s (Royal Society for the encouragement of Arts, Manufactures and Commerce) Cities of Learning started to get their funded programmes under way:
## Change Grow Live
## Our programme with
Change Grow Live – offering bespoke support for 15-18year old young offenders in Birmingham – has seen deep impact, tripling employment, and life outcomes for 106 young offenders, with one-to-one employability training and mentoring, up from 62 last year. In addition to their ‘stabilising’ one-toone training and mentoring on wellbeing, physical health, literacy or access to services like banking, 58 have
completed work experience or a work-based qualification, with 51 (48%) moving into employment, education or training after the programme, over three times higher than would be expected without intervention.
## The Girl’s Network
The Girl’s Network matches female mentors from non-graduate pathways with girls, based on the Ofsted recommendation that conversations with professionals and experience in workplaces, is the intervention most effective at changing stereotypical expectations about future careers.
So far, 100 partnerships
have been developed as a direct result of City & Guilds’ funding, up from 18 last year, and over their original target. Teacher feedback has been very positive, and interest in
apprenticeships has risen by 34%, alongside evidence of achieving some great new career pathways.
## Unltd
This year we established a new partnership between UnLtd and City & Guilds Group, that will provide funding for social entrepreneurs with bold ideas to get people furthest from the labour market into jobs and training. Unltd’s Thrive programme is a social accelerator which offers a mix of finance, tailored expert advice and pro-bono support to help socialpurpose businesses to build connections, secure further investment, and really scale their operations. It builds on the learning from UnLtd’s Big Venture Challenge work, a similar programme which supported 120 ventures and raised more than £13 million of investment.
64 City & Guilds Foundation: Removing barriers and making a difference
Supporting individuals getting access to the skills training they need
**We partnered with 40 Livery companies through our matchfunding programme to support those learners in genuine financial need who wish to undertake a City & Guilds Group qualification.**
65 City & Guilds Foundation: Removing barriers and making a difference
## Bursaries
We have redeveloped our bursary programme so that it can deliver ‘access to the skills most needed, to those who need it the most’.
Changes include more efficient processes, targeting skills gaps in critical industries, and supporting those who face the most significant barriers to employment. The programme also now integrates evaluation methodology at three points - award, completion of course and six months later. A pilot of the new programme was launched in the latter part of the year, receiving over 400 registrations of interest from learners across the UK, and over 100 eligible candidates completing applications and 10 individuals have been awarded bursaries so far to commence in autumn 2020. Bursaries will be awarded from the central fund three times a year.
We are also delighted to be able to support Gen2 with their Access to Apprenticeship programme through our bursary funding. The programme is designed to provide young people, who haven’t secured an apprenticeship, with practical skills and experience so that they can apply for a full engineering apprenticeship in the future. Through this programme we’ve been able to support 10 individuals with their course fees and additional costs for any necessary learning materials.
## 400
registrations of interest from learners across the UK
## 100
eligible candidates completing applications
## 10
individuals have been awarded bursaries so far to commence in autumn 2020
66 City & Guilds Foundation: Removing barriers and making a difference
## Impact story: Working with The Girl’s Network to support better futures for vulnerable children
Silvia was suffering from a lack of confidence and mental health issues before her GCSE exams, which led to her taking a lot of time off school. Lorna – a trainer in the People Development Team at Clarion Housing – helped Silvia get through this difficult time and communicated with the school about what Silvia needed, which helped to turn her Year 11 around. Silvia began to attend school much more and made really good progress with English coursework, earning her target grade of a B in English Literature. She is now applying for a Health & Social Care course at college and with Lorna’s support is organising work experience at a hospital.
67 City & Guilds Foundation: Removing barriers and making a difference
‘We had found that some students, perhaps those from more affluent backgrounds, could easily arrange to visit a publisher, or a dentist surgery, through family or friendship connections. But there was a very large cohort who didn’t have access to that secondary industry, to role models or the expectation that this was a world they could be involved in. The Girls’ Network offered a doorway they could walk through with someone supporting them. I'm evangelical about The Girls' Network.’
Kuljit Rahelu, Headteacher of Hornsey School for Girls, London
68 City & Guilds Foundation: Removing barriers and making a difference
Bringing people together to champion skills development
**Apprentice connect engaged 12,372 young people, connecting them with successful apprentices.**
69 City & Guilds Foundation: Removing barriers and making a difference
We established The Future Skills Commission for Prisons in January 2020 to identify and activate practical ways for prisoners to develop skills and remove barriers to getting a job on release.
The Commissioners are drawn from experts in the field alongside City & Guilds Fellows and Trustees, such as James Timpson OBE, and chaired by Dame Sally Coates. Commissioners and Trustees of City & Guilds collectively agreed that the urgency of the COVID-19 crisis demanded the immediate attention of the commission and ringfenced funding to be made available while restrictions were in place.
## Apprentice Connect
Apprentice Connect ambassadors engaged 12,372 young people, giving them the opportunity to meet successful apprentices and hear their first-hand inspirational stories.
This year, as well as supporting our school and college network, we began to focus on supporting causes which can prevent young people from accessing other routes to work. For example, we supported initiatives looking to improve mental health education in young people and attended a careers event organised to strengthen communities affected by the Grenfell tragedy, in London.
## Cities of Learning
An increasing awareness of the need for local solutions to employment issues gave rise to RSA’s Cities of Learning project which seeks to develop local leadership to engage stakeholders, young people
furthest from the workplace and employers. City & Guilds Foundation is supporting the pilot projects in Brighton and Plymouth, where digital badging is being used to recognise informal learning that enhances the attributes employers are looking for in recruits.
The two projects are taking different approaches to achieving the objectives of the pilot and will be evaluated for their effectiveness before the learnings are fed into future Cities of Learning. Given the move to digital accelerated by COVID-19, these are proving very timely projects.
70 City & Guilds Foundation: Removing barriers and making a difference
Using the power of celebration to promote learning
**88% of PRTA alumni have gone on to further develop and build on their training programmes.**
71 City & Guilds Foundation: Removing barriers and making a difference
The Princess Royal Training Awards (PRTA) has recognised 209 organisations for delivering best-in-class training and development. And through the PRTA Alumni, 431 leading L&D professionals share and champion best practice. Despite the challenges of COVID-19, 94 applications were received for the 2020 Award, with 43 workplace learning programmes achieving the standard. Award recipients include high profile organisations, such as: IBM UK Ltd, Mitchells & Butlers, Metropolitan Police, Royal Mail, Santander UK, Co-op and HM Revenue and Customs.
Research conducted in year shows that 88% of alumni organisations have been able to further develop and build on the success of their training programmes, while half have seen increased investment in future training programmes as a result of achieving the standard. Further analysis of the outcomes derived for the organisations awarded will take place later in 2020.
The PRTA alumni is going from strength to strength. This year we delivered our first
conference which attracted over 100 members to London for an exclusive opportunity to hear from rising management thinkers, Corporate Rebels. We were also able to provide 25 advocacy opportunities, strengthening our voice and sharing best practice in key activities, such as the Annual Apprenticeship Conference and City & Guilds’ Council. And, two alumni members joined Council, bringing their corporate perspective from Legal & General and IBM.
Finally, to celebrate the outstanding achievements of learners and tutors, we awarded 29 prizes including the Prince Philip Medal (Craig Thomson – Director, HMP Kilmarnock), the President’s Award (Alison Strachan – Chairman, Bound by Veterans), 10 Fellowships, nine Honorary Memberships and 10 Livery Company Prizes.
72 CFO statement
Achievements & performance
Jim Conybeare-Cross City & Guilds Chief Financial Officer
CFO Statement
In FY20 we faced significant challenges from the COVID-19 crisis which had a major impact on our revenues from the end of March onwards. As a result, our total trading revenues for the year were down 8.9% vs prior year, compared to a 3.8% growth in the first six months.
73 CFO statement
During lockdown revenues were running initially at only 55-60% of prior year but this improved towards the end of the financial year to nearer 80-85%, translating into a 23% decline in revenues in the second six months of the year. However, as a result of courses being moved online wherever possible and some remarkable innovation, we achieved a much higher level of revenues than we expected at the beginning of the crisis.
As a result of taking quick decisive cost actions we were able to partially offset the revenue reductions, resulting in significant cost savings compared to our budget. These cost savings included £3.9m claimed under the Government’s Job Retention Scheme, as well as savings from cancelling all travel, reducing contractors and removing bonus payments, In total, including a reduction of direct costs of delivering lower revenues, costs were reduced by £14.4m compared to Budget.
Net expenditure of £2.2m compared to a net income of £4.6m last year, with a gain of £7.8m on disposal of a minority share in Totara (a Learning Management System company in New Zealand), partly offsetting the loss on charitable activities and trading. As a result of stock market movements during the COVID-19 crisis we also made a loss on our investment portfolio of £1.9m.
As a result of reviewing the future cashflows of our acquisitions, it became clear that the COVID-19 pandemic is expected to continue to impact income in our new financial year, thereby reducing expected returns. As a result we have had to impair the carrying value of goodwill in the Group balance sheet by £1.0m and the investment value in the Institute balance sheet by £3.6m.
Finally after a small positive movement in our pension scheme deficit there was a net £0.7m movement in funds, considerably better than last year -£10.0m.
Cash generation from operating activities for the year was £5.5m compared to £7.3m last year, a very pleasing result given the extraordinary situation we faced during the year. In order to mitigate against the effects of the COVID-19 pandemic, immediate actions were taken to preserve cash, including cost reductions, capital expenditure projects delayed, taking advantage of Government concessions to delay VAT and other taxes, claiming of the Job Retention Scheme allowance, and negotiating with our large suppliers to delay payment terms. Additional items in the cash flow statement include proceeds of £8.1m from the sale of our share in Totara, partially offset by acquisitions of £5m. Sales of investments of £16.6m also took place during the year, resulting in a net £22.5m increase in cash for the year. As a result of these movements, we ended up the year with a very satisfactory position of cash and liquid assets (equity investments) of £89.8m vs £85.9m last year.
Overall we were pleased that we were able to significantly mitigate the impact of COVID-19 through the many actions we took both to generate further revenues and to save costs, thus enabling us to continue to make money to make a difference.
74 Remuneration Report
## Remuneration report
I am pleased to present, on behalf of the Remuneration Committee of the Trustees, the report on the remuneration of the executive key management personnel (Group Management Team) for year ended August 2020.
While this report covers the period to August 2020 and is, therefore, inherently a back-ward looking document, given the extraordinary times as both the Company and the world more generally respond to the COVID-19 crisis, it is considered helpful to introduce this report with some wider, more forward looking, context. There will be no salary award for the Group Management Team for FY21 although a general increase of 3% had been implemented for FY20 and no variable pay was earned in respect of FY20. The report which follows sets out the normal reporting obligations which should be assessed in this context.
## Reward Philosophy
In setting the remuneration policy for the Group Management Team, the Committee has to strike a balance between the status of the Institute as a charity and the reality that it is competing against purely commercial organisations, both in product markets and talent markets. The Institute is not funded by charitable donations or grants but must earn all its revenues in the commercial marketplace. Only through financial success can the Institute fund activities which reflect its purpose and values.
Consequently, the remuneration policy needs to achieve a sufficient level of competitiveness in the relevant executive talent markets to allow the recruitment and retention of sufficient high calibre people needed to lead the organisation in a global market in line with the relative size of our business activities. At the same time, meaningful incentive plans need to be in place to provide focus and alignment with the Institute’s challenging objectives. The Committee has decided that the balance is best struck by providing a fixed pay package (salary, pension, and benefits) which is competitive against similarsized commercial service businesses (excluding financial services) against which we compete for talent. In addition, the package includes a bonus plan to reward substantial achievement of stretching goals.
At the same time, the Committee has considered information on the total remuneration available in other substantial not-for-profit and charitable organisations and has set our incentive policy on a conservative basis, so that the total earnings opportunity is rather less at maximum than would be provided in purely commercial organisations.
This approach is considered appropriate in being able to recruit, retain and motivate our management team to deliver our strategy and, reflects the approach that the Institute uses more widely across our employees.
The Committee is cognisant of its responsibilities in setting senior management pay in the context of the wider organisation and all its stakeholders, but in particular the alignment with other employees. The Committee has taken on board a number of the relevant provisions of the UK Corporate Governance Code for listed companies, which includes a standing agenda item to consider the pay and employment conditions across the organisation. This gives the Committee a better insight into the impact of any changes in senior management remuneration.
Pension equalisation has been the practice in the Institute since the 1966 Pension Scheme was introduced. The same contribution structure now applies to all employees in that scheme with no enhanced contribution levels for more senior staff (although those subject to HMRC caps on payments to a registered plan may receive cash payments in lieu). The new starter’s pension plan introduced in July 2019 is used for all new Group Management Team members.
As noted in last year’s report, the Committee took the decision during FY19 to remove any future LTIP awards for the Group Management Team (with no compensation). With the four year performance period of current LTIP ending with the completion of FY20, this element of the remuneration package now falls away completely. At the same time as the removal of the LTIP, the annual bonus plan used for senior management was extended further down the organisation. This meant that middle management had the opportunity to earn a higher performance based FY20 annual bonus based on the same business performance objectives as senior management as well as individual performance measures.
75 Remuneration Report
The annual bonus outcome for FY20 is described in more detail below.
Our approach to reporting remuneration is to make voluntary disclosure which goes above and beyond the statutory requirements.
## Performance outcomes for FY20
The annual bonus for FY20 was subject to a combination of Group Operating Surplus, employee engagement and individual strategic measures. Given the impact of COVID-19 on the Institute in FY20, financial performance was insufficient to warrant the payment of any bonuses.
The current LTIP ran until the end of FY20 but failed to achieve its operating surplus targets so lapsed in full. As noted above the plan will not be replaced with any subsequent awards.
## Group Management Team changes in FY20
Following a successful 10 year tenure as Group Chief Executive, the Trustees accepted Chris Jones’s resignation and he stepped down on 31 January 2020. He was replaced, initially on an interim basis, by Kirstie Donnelly who was formally appointed as Group Chief Executive on 2 March 2020.
Whilst Interim Group Chief Executive, Ms Donnelly’s annual base salary was set at £235,000. Once formally appointed as Group Chief Executive in March 2020, her salary was increased to £296,000, which was considered to be appropriate given her skills, experience and knowledge of the Institute, and this was below Mr Jones’ final salary given her being new to the role. On permanent appointment she became entitled to the same bonus potential (expressed as a percentage of salary) as the previous Group Chief Executive
Other changes to the Group Management Team in the year included:
- David Phillips appointed as Managing Director of Skills Credentialing in March 2020
- Tracy Blake appointed as Chief Technology Officer in March 2020
Director of Corporate Learning in February 2020
- Andy Moss stepped down as Group Director Strategy & Global Business Services to become Managing Director of Corporate Learning in February 2020
- Phil Ellaway was appointed Group Strategy Director in February 2020
- Nicky Pattimore, previously Group Employee Experience Director, was appointed to the expanded role of Chief People and Customer Officer in March 2020
## Decisions for FY21
Given the current environment, the Committee has decided that there will be no normal annual pay increases for the members of the Group Management Team. Future pay reviews for the Group Management Team will be considered to the extent they feature across the wider workforce.
As in the previous year, the FY21 annual bonus plan will be based on a combination of both business and individual performance measures. However, taking into account the current pandemic and the potential volatility in our markets, the performance metrics will be tailored to have a greater focus on how we position the Institute in a post-COVID environment. This means that for FY21 performance will be assessed on the following basis:
- Group Financial Objectives: Group OS & Group cost savings - 60 % weighting
- Individual objectives – 40% weighting
The structure set out above will apply to all members of the management annual bonus, albeit the individual objectives will be tailored to each role and business unit reflecting 5 core areas – strategic transformation, financial, operational, customer, people and leadership.
No other changes are proposed to the operation of the remuneration policy as it is working effectively and supports the aims and purpose of the Institute.
Ann Brown, Chair of Remuneration Committee of Trustees
- John Yates stepped down as Managing
76 Remuneration Report
## The Remuneration Committee
The Remuneration Committee (‘the Committee’) is a committee of the Trustee Board of the Institute. The Trustee Board considers the Committee’s members to be independent. The members of the Committee during the year ending 31 August 2020 were Ann Brown (Trustee and Chair of the committee) and five other Trustees (Sir John Armitt, Ann Limb, Peter McKee and Andy Marchant) and Jane Gibbon (who was appointed to the committee in April 2020).
The role of the Committee is to decide
remuneration policy, terms of employment and remuneration plan design for key management personnel, including the Group Chief Executive (GCE) and to confirm their salaries, individual incentive opportunity and pay-outs under the annual bonus plan and long-term incentive plan (LTIP). During the year ending 31 August 2020, the Terms of Reference for the Remuneration Committee were reviewed and updated. The Committee meets at least five times each year. The Committee receives support from the Chief People and Customer Officer and the Reward, Recognition and Performance Management Director. The Group Chief Executive attends meetings by invitation to provide input on the discussions regarding strategy and performance. No member of management is present when their own remuneration arrangements are discussed. In the year ending 31 August 2020, the committee discussed a range of topics which included:
- GCE change
- Market practice developments and regulatory changes
- Gender pay gap review
- Received updates on the work of the Pensions sub-committee
- Reward philosophy review
- Review of incentive arrangements – monitoring current progress and considering performance measures/targets for future awards
- Group Management Team changes and reward arrangements
- Review of Group Management Team service contracts
Approval of the Remuneration Report During the year, the committee took external advice from FIT Remuneration Consultants LLP (‘FIT’) on matters of remuneration policy implementation and pay market information. FIT is a member of the Remuneration Consultants’ Group and complies with its Code of Conduct which sets out guidelines to ensure that its advice is independent and free of undue influence. FIT carries out no other work for the Institute or any of its subsidiaries.
The Committee also receives support from the Chief People and Customer Officer and the Reward, Recognition and Performance Management Director. The Group Chief Executive attends meetings by invitation to provide input on the discussions regarding strategy and performance. No member of management is present when their own remuneration arrangements are discussed.
## Alignment with Institute strategy and purpose
The key objective of the remuneration policy is to support the delivery of our strategy and recognise the Institute’s purpose. As such, our incentive arrangements are designed to directly align with the delivery of our key short and longerterm objectives. The performance measures chosen are a combination of financial and nonfinancial strategic metrics which recognise that performance outcomes for the Institute need to be assessed on a broad basis. The performance measures used for the annual bonus will be kept under review to ensure they remain aligned to our strategy. Performance targets are set at the start of the financial year taking into account internal financial plans, external forecasts (to the extent they exist) and a wider view of the macroeconomic environment at that time. The target range is set to be challenging, but realistic and have the appropriate balance of risk and reward.
## Report on Remuneration for Year Ending 31 August 2020
The following table shows the salary and benefits of the two GCE’s who each served part of Financial Year 20 (excluding severance packages).
77 Remuneration Report
## Group Chief Executive Salary and Benefits
**----- Start of picture text -----**
GCE Financial Year 2020 Financial Year 2019
Chris Jones
Salary 1 £121,975 £284,667
Taxable benefits 2 £ 23,881 £ 57,182
Cash bonus earned in the year 3 - £144,734
Total £145,856 £486,583
Kirstie Donnelly
Salary 1 £187,167 N/A
Taxable benefits 2 £ 34,916 N/A
Cash bonus earned in the year 3 - N/A
Total £222,083
**----- End of picture text -----**
## Notes
1. Reported amounts relate to their period of employment.
2. Includes pension cash in lieu, car allowance, private medical insurance and health assessment.
3. As the Group Operating Surplus underpin for the FY20 annual bonus was not achieved there was no bonus payable for FY20. And FY20 represented the final year of the current LTIP, but as the Group Operating Surplus targets were not met, the plan lapses in full.
## Group Management Team Emoluments
The total value of emoluments (salaries, pensions, bonuses, taxable benefits-in-kind and severance) paid to the Group Management Team (including the GCE) in year ending August 2020 was £2,696,505 (FY19: £2,275,577). The increase relates to the turnover of personnel who served in the Group Management Team during FY20 which is explained earlier in this report. Members of the Group Management Team participate in the Institute’s pension schemes on the same terms as other staff members, except that they may elect to take earned contributions in excess of £10,000 as cash.
## Trustees
The Institute Trustees are not remunerated providing their services as trustees pro bono. Nor do they receive any other benefits. Expenses claimed can be found in the Financial Statements.
## Gender Pay
The Institute published its 2019/20 Gender Pay Gap in September 2020 which is available here. The Committee continues to monitor gender pay as an annual agenda item.The Committee continues to monitor gender pay as an annual agenda item.
The number of Group Management Team members at the year-end was 8 (including the GCE).
78 Remuneration Report
## Remuneration Policy
The Institute is non-profit making, and our mission is the achievement of our charitable objectives and fulfilment of our charter. At the same time most of our services are being sold and provided in a highly competitive and commercial marketplace in which we must either develop and grow or lose ground to stronger competitors. We need to make a healthy net surplus to allow reinvestment in the business to maintain the highquality products for our learners, and to provide investment for growth. We also need to be able to recruit and retain talented staff.
Consequently, the Committee has proposed and agreed with the Trustees a clear remuneration philosophy and set of principles to guide its decisions about executive remuneration. These require it to take into account both market levels of remuneration and the economic and funding realities of the Group’s business and to provide variable reward so as to allow employment costs to be managed and enhance the focus on performance.
## Future policy table – remuneration of GCE and other members of the Group Management Team
**----- Start of picture text -----**
Base salary
Purpose/Link to Part of a basic competitive package to recruit and retain individuals of the necessary
corporate strategy calibre to execute the Institute’s business strategy.
Operation Salary only. Normally reviewed annually with changes effective 1st January if
appropriate.
Opportunity Reviews based on external market comparisons, the skills and experience of the
individual, the Institute’s financial position and increases to other Group staff. Increases
in salary will normally be limited to the average staff % increase in the Group or less.
There is no automatic expectation of an increase each year.
Performance metrics Individuals have scorecards, priorities and measures.
Pension
Purpose/Link to To provide Directors with a long- term retirement savings opportunity. The pension
corporate strategy contribution or cash-in-lieu is part of a basic competitive package to recruit and retain.
Operation Members of the Group Management Team are members of the standard Institute
pension schemes. However, they have the choice to opt out of the pension scheme if
their contributions come near to the annual allowance ceiling and take a cash in lieu
option through PAYE, as compensation for loss of pension benefits at the value of 16%
of their gross base salary. Any amount paid in cash in lieu of pension is fully subject to
income tax and National Insurance deductions.
Opportunity The maximum total contribution for all members of the Group Management Team is up
to 16% of gross base salary (i.e. excluding bonus or any allowance) depending on the
pension scheme.
Members of the Group Management Team may participate in the Institute’s pension
schemes on the same terms as other members of staff, except that they may elect for a
cash-in-lieu arrangement as described above.
Performance metrics None
**----- End of picture text -----**
79 Remuneration report
**----- Start of picture text -----**
Benefits
Purpose/Link to Insured benefits are included to provide employee protection for the benefit of the
corporate strategy employee and Company. A car allowance may be provided as part of a competitive
package.
Operation Car allowance paid in cash; private medical insurance for self and family under the
Group scheme; life assurance and income protection under the Group scheme.
Opportunity Private medical insurance - premium family cover
Life assurance - six times salary
Income Protection Policy – up to 55% of salary
Car Allowance currently up to £9,000 for GCE and other Group Management Team
members.
Performance metrics None
Bonus
Purpose/Link to To incentivise and focus attention on Institute key strategic objectives and performance
corporate strategy indicators (KPIs) and provide a competitive performance-related annual earnings
opportunity.
Operation Targets are set at start of year. Payment is made after the year end, depending on
achievement against targets after year end audit.
Opportunity On-target bonus of 45% of salary for the GCE and 35% for the other Group Management
Team members. Maximum bonus for exceptional achievement is 65% salary for the GCE
and 50% for other Group Management Team members.
Performance metrics Corporate financial goals are set which may include operating surplus and revenue
at a Group and an individual business level. Over-achievement of goals is required
for maximum bonus. There is no payment below threshold performance. All bonus
payments are at the discretion of the Committee.
**----- End of picture text -----**
How we're
governed and
organised
82 How we're governed and organised
## How we’re governed and organised
## Our constitution and charitable status
The Institute’s purposes and administration are regulated by its Royal Charter (RC000117) granted on 26 October 1900, and the associated Supplemental Charters, Statutes, Ordinances and Standing Orders.
In 1965 the Institute was registered as a charity in England and Wales (312832) and it is now also registered as a charity in Scotland (SC039576). The Trustees have due regard to the Charity Commission public benefit guidance when exercising any powers or duties to which it is relevant and take the view that the contents of this Report demonstrate that its requirements are met.
The Office of the Scottish Charity Regulator (OSCR) expects the Trustees to include some narrative in this Report about the Institute’s activities in Scotland. They are the same as in the rest of the United Kingdom, but the Institute has been supported by an advisory committee for Scotland. The committee normally meets twice a year, but in the year ending 31 August 2020 it met once, on 5 December 2019. At this meeting, the committee advised on the Institute’s strategy for Scotland and discussed arranging a research paper into the viability of the Scottish market. It was then decided to replace the three regional advisory committees with a new committee to advise in relation to the UK as a whole but recognising the special requirements applying to its constituent parts. A date for its inaugural meeting has not yet been set.
## Honorary Officers
Her Royal Highness The Princess Royal is the President of the Institute. The other Honorary Officers are the Vice-Presidents, the Treasurer (who is elected annually by the Members) and the Honorary Secretaries (who are appointed by Council).
## Members
There are five categories of Member: Ex-officio, Honorary, Founder, Ordinary and Non- Corporate.
## Council
Council’s primary role is to appoint and advise the board of Trustees (‘Trustee Board’) and, jointly with the Trustees, to act as guardian of its constitution. There are four categories of Councillor: Ex-officio, Appointed (by the City of London Corporation and certain livery companies), Elected (by Members), and Co-opted (by Council itself). Appointed, Elected and Coopted Councillors serve for limited terms.
## Trustees
The Trustees have control of, and responsibility for, the affairs of the Institute. The Trustee Board consists of the Chairman and Vice-Chairman of Council, the Treasurer, the Honorary
Secretaries, and other Trustees appointed from and by Council on advice from the Nominations Committee. The Trustee Board meets six times a year, its meetings presided over by the Chairman or Vice-Chairman of Council. Trustees undergo an induction process and receive updates and briefings on specific topics during their terms of office. One quarter of the appointed Trustees retire every year and are eligible for reappointment.
A Board performance review using the format recommended by the Charity Governance Code was conducted by the Vice Chairman in the year ending 31 August 2018. In the year ending 31 August 2019, the 2018-19 action plan was carried out and a 2019-20 Action Plan was agreed. This has now been completed and findings are due to be reported shortly.
Under the constitution the Trustees may be remunerated for professional services, and the Chairman of Council may also be remunerated for acting as Chairman. Details of trustee expenses and any other benefits and remuneration may be found in the Financial Statements.
83 How we're governed and organised
## Secretary
The Secretary, who is appointed by the Trustees, is responsible, on behalf of the Trustee Board and Council, for ensuring compliance with the Constitution and the Institute’s legal obligations and is accountable to the Trustee Board and Council through the Director- General.
## Committees
There are five Trustee Board Committees: the Nominations Committee (which has a Fellowship sub-committee), the Audit and Risk Committee, the Remuneration Committee (which has a Pensions sub-committee), the Foundation Committee (formerly known as the Skills For Growth Committee), and the Investment Committee. They meet between two and four times a year, and the chairman of each committee is a Trustee who reports to the Trustee Board on its activities. More information about the Remuneration Committee may be found in the Remuneration Report (which forms part of the Trustees’ Report) after the CFO Statement.
## Quality and Standards Committee
The Quality and Standards Committee is independent of the Trustees and Council. Its principal role is to assist the Institute in respect of all Group activities to maintain and enhance the confidence of learners and centres in the currency and credibility of the Group’s assessment and qualifications work. Included in this is oversight of Group internal appeal processes and the role of the final arbiter in appeals against decisions relating to qualifications and assessments awarded or made by Group members. It meets four times a year but if necessary, holds additional meetings to deal with appeals or any other matter.
## Executive management
The executive management of the Institute is delegated to the Group Chief Executive and Director-General, who reports to the Trustees and Council. She has all the powers not expressly reserved to them or delegated by them to committees, and these powers may be exercised on her behalf by such members of staff as she determines. She works with and through a Group Executive Team (formerly known as the Management Board), which deals with major strategic and operational issues and receives reports from representatives of the Institute’s divisions and the other Group members. The affairs of the other active Group members are overseen either by a chief executive (with or without a senior management team) or by their directors, depending on the extent and nature of their activities.
The policies maintained by the Trustees and the governing bodies of the other Group members include a policy which sets out the limits of the authority given to people at different levels to commit to transactions by reference to their financial or other value.
## Reference and administrative details
The City and Guilds of London Institute is a Royal Charter body (RC117) and registered as a charity in England & Wales (Reg No: 312832) and Scotland (Reg No: SC039576). On page 128 of this Report are set out the address of its principal office, and the names of the Trustees as at the date on which this Report was approved, any other Trustees serving during the year ended 31 August 2020, the Secretary and City & Guilds’ principal bankers, solicitors and auditors.
84 How we're governed and organised
## Financial review
The year ending 31 August 2020 saw resilience of qualifications markets and in revenue from existing and previously acquired subsidiaries of the Institute. This, together with cost savings and reorganisation, partially offset the effect of adverse trading conditions during the Coronavirus pandemic in the year.
## Income and assets
## The Group
The Group’s income was £135.7m (2018-19: £144.2m). Of this 72% (2018-19: 76%) is classed as educational in the Financial Statements. The Group’s expenditure was £143.8m (2018-19: £146.4m). Of this 72% (2018- 19: 77%) is classed as educational in the Financial Statements. The educational components include income and expenditure from the Institute and City and Guilds International Limited. The Institute and City and Guilds International Limited are registered charities specialising in the education sector.
The Group’s net expenditure was £2.2m (2018-19: net income of £4.6m). The prior year surplus was largely as a result of the one-off profits from the sale of fixed assets including the Group’s head office at 1 Giltspur Street and HT2 Ltd for £5.0m, along with £1.7m of gains on investment assets, which helped to offset the incurred exceptional costs totalling £3.4m in 2018-19.
The net movement in funds increased by £0.7m (2018-19: decrease of £10.0m). This adjustment consisted of an actuarial gain in relation to the defined benefit pension scheme of £3.3m (201819: loss of £15.3m), and foreign currency losses of £0.4m (2018-19: gains of £0.7m). There is more information about pensions on page 102 in this Report.
The balance sheet value of the Group’s net assets at 31 August 2020 was £95.9m (31 August 2019: £95.2m). The increase was largely due to the gain on disposal of our investment in Totara for £7.8m in the year, despite the direct and indirect impact of COVID-19. Cash at the end of the year was £66.0m vs £43.5m last year. The £22.5m increase
in cash is offset by a decrease in liquid equity investments of £18.6m meaning that total cash and liquid investments at 31 August 2020 was £89.8m vs £85.9m at 31 August 2019.
## The Institute
The Institute’s income was £81.6m (2018-19: £91.5m). Of this 100% (2018-19: 100%) is classed as educational in the Financial Statements. The Institute’s expenditure was £87.3m (2018-19: £94.5m). Of this 100% (2018-19: 100%) is classed as educational in the Financial Statements. The Institute’s losses on investments and disposal of assets was £1.9m (2018-19: gains of £6.7m). The Institute’s net expenditure was £7.6m (2018-19: net income of £3.7m).
From the net expenditure was added £3.0m (2018-19: deducted £15.3m), consisting mainly of an actuarial gain in relation to the defined benefit pension scheme of £3.3m (2018-19: loss of £15.3m) to arrive at the net movement in funds, which decreased by £4.5m (2018-19: decrease of £11.6m). There is more information about pensions on page 102 in this Report. The balance sheet value of the Institute’s net assets at 31 August 2020 was £98.2m (31 August 2019: £102.8m). The decrease was predominately due to The Institute’s investments in subsidiaries being impaired by £3.6m in the year (2018-19: £nil).
## Other principal active members of the Group
Their results can be found in the Financial Statements. If the Institute’s direct subsidiaries make profits and this is permitted by their constitutions, they normally pay them (either by dividend or gift aid donation) to the Institute. No subsidiary was in a material deficit to the Group, as at 31 August 2020.
## Capital expenditure and depreciation
The Group capital expenditure of £3.4m (201819: £5.1m) was largely on IT assets. Depreciation was £6.8m (2018-19: £6.6m). The Institute’s capital expenditure of £1.6m (2018-19: £2.7m) was largely on IT assets. Depreciation was £3.9m (2018-19: £4.7m). Figures for the other Group members can be found in their own accounts.
85 How we're governed and organised
## Fund-raising statement
Fund-raising is defined as ‘soliciting or otherwise procuring money or other property for charitable purposes’. Income of this nature received in the year to 31 August 2020 amounted to £nil (2018-19: £nil). We do not undertake fund-raising from the public. We are not subject to any undertaking to be bound by any voluntary scheme for regulating fund-raising or any voluntary fundraising standard. All solicitations are managed internally, without the involvement of commercial participators, professional fund-raisers or third parties. The day to day management of all income generation is delegated to the executive team and, since we do not solicit funds from the public and expect our staff to act appropriately at all times, we do not consider it necessary to put in place specific internal procedures to monitor fund-raising activities. We have received no complaints in relation to fund-raising activities.
## Risk management
Understanding the risks we face and managing them appropriately is important to us to enhance the Group’s ability to make better decisions to deliver on our purpose, with more impact, to more people.
## How we manage risk
The City & Guilds Group has a clear Risk Management framework that supports the delivery of its risk management objectives and requirements for identifying, assessing, reporting, and monitoring risk.
The Trustees, supported by the Audit and Risk Committee, keep under regular review the risks to which the Group is exposed, the risk appetite, and ways in which risk management processes can be used to enhance performance. Trustees formally approve the Strategic Risk Register and the risk appetite matrix annually. The Strategic Risk Register and Operational Risk Registers are managed by the Group Executive Team. The Group Internal Auditor provides independent assurance that the risk management, governance, and internal control processes are operating effectively. Half way through this financial year the COVID-19 crisis unfolded resulting in a need to flex the Risk Management process. The immediate focus became understanding and then regular
monitoring of operational risks that arose from the crisis. Risks and mitigations were reported to Trustees on a monthly basis and as a result the Group was able to manage risks successfully.
The Trustees have identified the following principal risks and uncertainties facing the Institute and its subsidiary undertakings and the mitigation plans to manage those risks are summarised below. During the COVID-19 crisis the most pressing of these were managing cashflow and IT security. We mitigated cashflow risks by immediately implementing cash preservation measures, including reduction of costs and deferral of expenditure, and exploring other opportunities including bank lending. IT security was a major issue given the move to home working and the IT team and the Information Security team worked closely together to enhance the data control environment and implement more robust hardware security.
- We do not have sufficient cashflow and funding options to protect our existing business and invest in our future growth strategies. The Trustees’ plans include using the forecasting process which is linked to the wider strategic planning as a key point in the capital allocation review and reviewing the key cashflow metrics used in order to ensure mitigating actions are taken in the event that cash flow forecasts fall below required levels.
- We are unable to fund the 1966 pension scheme liabilities which would jeopardise our ability to fund the business. The Trustees’ plans include reviewing the actuarial monitoring tools in place.
- We do not effectively influence and respond to changes in skills policy and reform due to poor monitoring and engagement with government departments, agencies, membership bodies and other industry stakeholders to target influence at a ministerial/ senior level. The Trustees’ plans include reviewing the target operating model with a broader Group lens for apprenticeships and TVET8 services linked to a strengthened relationship with commercial planning, refreshing our employers and industry stakeholder contact channels to influence policy before it happens and interpret impacts when it has, and having a Group driven policy team focussed around
86 How we're governed and organised
- three major initiatives: FE landscape/ Devolution, Technical Qualifications/ Apprenticeships and Post-COVID-19 industry and skills investments.
- We fail to comply with regulatory criteria or respond in an effective manner to issues that may affect our ongoing regulatory recognition as an Awarding Organisation. The Trustees’ plans include enhancing internal processes to comply with requirements and reviewing engagement arrangements with regulators.
- We do not evolve our operating model to support our evolving strategy. The Trustees’ plans include accelerating the transformation of our business to a new operating model to enable delivery of our strategy and using technology to enhance our customer offers and our own operational efficiency.
- We do not effectively strengthen, manage, and recover from information security threats and do not fully align services to maintain commercial activity. The Trustees’ plans include developing an information security and data protection compliance programme, baselining policies, establishing a cyber security governance group and driving continuous improvement through robust risk management and standards compliance across the Group.
- We do not effectively plan for, respond, and manage a major business continuity incident or crisis event.
- The Trustees’ plans include working with specialist consultants to support the full review, update, and testing of all activities.
## Designated Fund
The Skills Development Fund was created by the Institute and made its first grants in the year ended 31 August 2016. Its aim is to invest in new and innovative activities which have a demonstrable impact; create long-term and sustainable change; deliver real benefit to the education sector, employers and/or learners; and reflect the Group’s global profile. The timing of the expenditure depends on the strategies adopted for the Fund’s use, and the nature, size and number of opportunities which present themselves. The value of the Fund at 31 August 2020 was £3.3m (2019: £3.6m).
## Restricted Funds
## City & Guilds Land Based Services (NPTC)
Since 30 June 2010, the Institute has held a fund which supports its land-based activities. The timing of the expenditure depends on the strategies adopted for the Fund’s use, and the nature, size and number of opportunities which present themselves. The value of the Fund at 31 August 2020 was £3.7m (2019: £3.8m), made up of £nil (2019: £1.9m) invested in the Barings Dynamic Asset Allocation Fund, £1.8m (2019: £1.9m) invested in the Insight Broad Opportunities Fund and £1.9m (2019: £nil) invested in the Vanguard LifeStrategy 60% Equity Fund. In the year ending 31 August 2020, £nil (2018-19: £0.13m) was spent. Previous year expenditure consisted of bursaries, staff costs and the annual contributions to a national land-based college.
## Other Funds
## TILM (The Institute of Leadership and Management)
Since 1 January 2016, the Institute has held a fund whose objects are the promotion and development of the science of leadership and management, and the advancement of education involving the study of the skills of leadership and management. At 31 August 2020, the Fund consisted of £2.1m in cash. This was the balance at 1 September 2019 (£2.4m) plus interest of £0.2m less the fifth in a series of annual payments to TILM of £0.5m. The Fund is not referred to in the Financial Statements. This is because it is valued at nil for accounting purposes since it is the Trustees’ intention to use it for the remaining payments to TILM.
## Reserves
The Institute adopts a risk-based approach to setting a minimum level of free reserves which the Trustees consider to be appropriate to maintain for the coming year. Factors considered include budget cash flow forecasts, long-term plans, key risks, the timing of major income, expenditure and capital items and potential cash outflows not included in the budget process (acquisitions for
> 8 Technical vocational education and training
87 How we're governed and organised
example). The Trustees review the policy on an annual basis to ensure it continues to comply with current Charity Commission guidance. The remit of the Audit & Risk Committee includes evaluation of the target for reserve levels and consideration of the use to which reserves should be put.
The level of free reserves deemed appropriate for the Group at 31 August 2020 was £69.6m (2019: £59.0m). This has increased from last year, mainly reflecting to the increased level of risk as a result of the Covid-19. The value of the actual free reserves at 31 August 2020 was £63.4m (2019: £63.3m), calculated by adding the net current assets (£49.1m) to the fund investments (£23.8m) and then deducting the value of the Restricted Funds (£3.7m), Designated Fund (£3.3m), long term creditors (£1.6m) and provisions for liabilities and charges (£0.9m). The aggregate free reserves of the Charity’s subsidiaries at 31 August 2020 was £19.9m (2019:£14.4m). Although there is a £6.2m shortfall of actual reserves compared to target, the Trustees believe that the current level of reserves is acceptable and it is the intention of the Group to restore reserves in subsequent years such that actual free reserves are in excess of required reserves level.
## Investments
The Institute’s investments in cash, securities (including equities, and gilts) and property are directed and monitored by the Investment Committee. The Committee also provides ad hoc support as required to its acquisition activities and any other form of investment.
## Subsidiaries
Investments include shares in companies owned or controlled by the Institute, or loans to those companies. The Institute’s investment in City and Guilds International Ltd is a ‘programme-related investment’, made to further the Institute’s aims in a way that may also produce some financial return for it. The remainder are ‘social investments’, made with a view both to directly furthering the Institute’s purposes and to achieving a financial return. The Trustees’ policy is to set up new subsidiaries where it is prudent or desirable for activities to be carried out by a separate legal entity, and to acquire existing companies where this is preferable to creating a product or service in-house.
## Other investments in companies
Other investments in companies are also social investments. The Trustees’ policy is to become a minority shareholder in existing companies where participation in their management will be more beneficial than contractual arrangements alone. Information about the values of these investments can be found in Note 7(d) to the Financial Statements.
## Cash and equities
The Trustees implemented a new investment strategy in the year. Following a tender process, PiRho Investment Consultants were appointed to advise the Investment Committee on the strategy. It was agreed that the Group’s investments were primarily to act as a source of funds for acquisitions and business development with a target return of cash plus 4%.
The investment committee decided to restructure the investment portfolio in 2019-20 to invest in two complementary, multi-asset diversified growth funds and one passive fund. In aggregate £23.8m was invested in the following three funds as at 31 August 2020:
- Barings Dynamic Asset Allocation Fund (BDAAF)
- Insight Broad Opportunities Fund (IBOF)
- Vanguard LifeStrategy 60% Equity Fund (VLEF)
On behalf of its clients, Baring’s dedicated team engages with companies and vote proxies to encourage business and management practices that support sustainable financial performance over the long-term. Insight votes where it is appropriate and responsible to do so, using independent governance analysis drawn from thousands of market, national and international legal and best practice provisions from jurisdictions around the world.
At 31 August 2020, the Group’s cash amounted to £66.0m (2019: £43.5m) and the Group’s investments were valued at £27.6m (2019: £46.6m). £0.9m (2019: £21.0m) was invested in the BDAAF, £12.9m (2019: £21.4) in the IBOF and £10.0m (2019: £nil) in the VLEF. BDAAF has returned 4.5% since 1 September 2019 against a target return of 4.0% while IBOF has returned 4.3% against the same target.
88 How we're governed and organised
## Pension Fund
At 31 August 2020, the funding of the defined benefit section of the City and Guilds (1966) Pension Scheme was in deficit by £37.5m (2019: £44.1m). The improvement in the pension deficit was the result of the £1.8m (0.7%) decrease in the value of the liabilities (from £268.9m to £267.1m), and the £4.8m (2.1%) increase in the value of the scheme assets (from £224.8m to £229.6m). The change in the value of the scheme liabilities was due to a change in the financial assumptions (mainly the discount rate and inflation expectations) used to calculate the liability. The Trustees are aware of the volatile nature of pension surpluses/deficits calculated according to FRS102, which may vary in response to market factors and the actuarial assumptions made. The Trustees have considered the impact of this liability on future cash flow and reserves and believe that it will be funded from normal activities.
## Relationships between the Institute and related parties
The Institute provides a range of services to its subsidiaries, for which payment is made. The nature of those services varies according to the subsidiary concerned but may include management and support services such as IT, human resources and development, finance, facilities and legal.
89 Statement of Trustees' Responsibilities
## Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Trustees’ Report and the Consolidated Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales and Scotland requires the Trustees to prepare the financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Charity and of the incoming resources and application of resources, including the income and expenditure, of the Group for that period.
In preparing these Financial Statements, the Trustees are required to:
- select suitable accounting policies and apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; and
- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Institute will continue in business.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to
ensure that the financial statements comply with the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- there is no relevant audit information of which the Institute’s auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The maintenance and integrity of the Institute’s website is the responsibility of the Trustees. The work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the Financial Statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## Auditors
At the Yearly Meeting on 21 April 2020, BDO LLP was re-appointed as the Institute’s auditors. It has indicated its willingness to continue in office and it is the current intention that it should do so.
## Approval and signature
This report was approved by the Trustees on 10 December 2020 and signed on their behalf by
Sir John Armitt CBE FREng FICE FCGI Chairman
90 Auditors report
## Independent Auditor’s Report to the Trustees of The City and Guilds of London Institute
## Opinion
We have audited the financial statements of the City and Guilds of London Institute (‘the Parent Charity’) and its subsidiaries (‘the Group’) for the year ended 31 August 2020 which comprise the consolidated statement of financial activities, balance sheet, the consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
- In our opinion, the financial statements:
- give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 August 2020 and of the Group’s incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011 and Charities and Trustee Investment (Scotland) Act 2005 and regulation 6 & 8 of the Charities Accounts (Scotland) Regulations 2006, as amended in 2010.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions related to going concern
- We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group or the Parent Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## Other information
The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The other information comprises the Trustees Annual Report. The Trustees are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work
91 Auditors report
we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
We have nothing to report in this regard.
## Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 requires us to report to you if, in our opinion;
- the information contained in the financial statements is inconsistent in any material respect with the Trustees’ Annual Report; or
- proper accounting records have not been kept by the Parent Charity; or
- the Parent Charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charity or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (‘FRC’s’) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## Use of our report
This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
James Aston (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Gatwick Date
9 BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Financial Statements and notes to the Financial Statements
93 Financial Statements
## Consolidated statement of financial activities
## For the year ended 31 August 2020
(Incorporating an Income and Expenditure Account)
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
Note £m £m £m £m £m £m
Unrestricted Restricted Unrestricted Restricted Total
funds funds Total funds funds
Income and endowments from:
Donations and legacies - - 0.1 - 0.1
Other trading activities 47.9 - 47.9 45.67 - 45.6
Investments 2 0.7 - 0.7 0.1 - 0.1
Charitable activities 3 87.1 - 87.1 98.4 - 98.4
Total income 135.7 - 135.7 144.2 - 144.2
Expenditure on:
Raising funds 46.5 - 46.5 43.2 - 43.2
Charitable activities
Exceptional items 4.2 - 4.2 3.4 - 3.4
Other costs 92.9 - 92.9 99.4 0.1 99.5
Total expenditure on charitable 97.1 - 97.1 102.8 0.1 102.9
activities
Other 0.2 - 0.2 0.3 - 0.3
Tax on overseas activities
Total expenditure 4 143.8 - 143.8 146.3 0.1 146.4
Net expenditure before
investments, disposal of fixed
assets and associates (8.1) - (8.1) (2.1) (0.1) (2.2)
(Losses) / Gains on investment
assets 7 (1.8) (0.1) (1.9) 1.5 0.2 1.7
Gain on disposal of investment 7 7.8 - 7.8 - - -
Gain on disposal of fixed assets 6, 7 - - - 5.0 - 5.0
Share of incoming resources of 7 - - - 0.1 - 0.1
associate
Net (expenditure) income (2.1) (0.1) (2.2) 4.5 0.1 4.6
Other recognised gains and
losses
(Loss) / Gain on revaluation of
foriegn net investments (0.4) - (0.4) 0.7 - 0.7
Actuarial gain / (loss) defined
benefit pension scheme 19 3.3 - 3.3 (15.3) - (15.3)
Net movement in funds 0.8 (0.1) 0.7 (10.1) 0.1 (10.0)
Accumulated funds brought
forward 91.4 3.8 95.2 101.5 3.7 105.2
Accumulated funds carried
13 92.2 3.2 95.9 91.4 3.8 95.2
forward
**----- End of picture text -----**
The above results are derived entirely from continuing activities. The notes on pages 98-127 form part of these Financial Statements.
94 Financial Statements
## Balance Sheets
## At 31 August 2020
**----- Start of picture text -----**
Group Institute
31 August 31 August
31 August 2019 31 August 2019
2020 2020
Note £m £m £m £m
Intangible fixed assets 5 23.4 25.2 0.2 0.2
Tangible fixed assets 6 35.7 39.1 27.5 29.8
Investments
Investment in subsidiaries 7 - - 49.8 48.4
Investment in associate 7 0.1 0.1 - -
Other investments (include £23.8m of listed investments) 7 27.6 46.7 27.6 46.1
Total investments 27.7 46.7 77.4 94.5
Total fixed assets 86.8 111.0 105.1 124.5
Current assets
Debtors due within one yearDebtors due after one year 89 19.8- 24.3 - 37.5 3.8- 16.4 9.0
Cash at bank and in hand 66.0 43.5 17.7 25.0
Total current assets 85.8 67.8 59.0 50.4
Current liabilities
Creditors: amounts falling due within one year 10 (36.7) (35.6) (26.2) (22.6)
Net current assets 49.1 32.2 32.8 27.8
Total assets less current liabilities 135.9 143.2 137.9 152.3
Creditors: amounts falling due after one year 11 (1.6) (2.0) (1.6) (1.9)
Provisions for liabilities and charges 12 (0.9) (1.9) (0.6) (3.5)
Net assets excluding pension liability 133.4 139.3 135.7 146.9
Defined benefit pension scheme liability 19 (37.5) (44.1) (37.5) (44.1)
Net assets 95.9 95.2 98.2 102.8
The funds of the Charity
Unrestricted funds
Unrestricted funds excluding pension reserve 13 129.0 134.6 131.3 142.2
Revaluation 13 0.7 0.9 0.7 0.9
Defined benefit pension scheme liability 19 (37.5) (44.1) (37.5) (44.1)
Total unrestricted funds 92.2 91.4 94.5 99.0
Restricted funds 13 3.7 3.8 3.7 3.8
Total Charity Funds 95.9 95.2 98.2 102.8
**----- End of picture text -----**
The notes on pages 98-127 form part of these Financial Statements. The Financial Statements on pages 94-126 were approved by the board of Trustees and authorised for issue on 10 December 2020 and signed on its behalf by:
Sir John Armitt, Chairman
K Donnelly MBE, Director-General
P McKee, Trustee
95 Financial Statements
## Consolidated statement of cash flows
**----- Start of picture text -----**
For the year ended 31 August 2020
Year ended Year ended
31 August 31 August
2019 2018
Note £m £m £m £m
Cash flows from operating activities 14 5.7 7.4
Taxation paid (0.2) (0.1)
Net cash generated from operating activities 5.5 7.3
Cash flows from investing activities
Investment income (excluding re-investments) 0.7 0.1
Purchases of tangible fixed assets 6 (3.4) (5.1)
Purchases of other investments 7 (15.3) -
Proceeds from sale of other investments 7 31.9 -
Proceeds from sale of investment 7 8.1 -
Proceeds from sale of fixed assets 6, 7 - 19.5
Investment in subsidiary undertakings 7 (5.0) -
Investment in associated undertaking 7 - (0.1)
Net cash from investing activities 17.0 14.4
Net increase in cash and cash equivalents 22.5 (26.6)
Cash and cash equivalents at beginning of year 43.5 21.8
Cash and cash equivalents at end of the year 66.0 43.5
Cash and cash equivalents comprise:
Cash at bank and in hand 66.0 43.5
66.0 43.5
Analysis of changes in net debt
At the end of
At start of year Cashflow year
Note £m £m £m
Cash and cash equivalents
Cash at bank and in hand (0.1) 66.0
Borrowings
Deffered consideration 11 (0.1) 0.1 -
Total 43.4 22.6 66.0
**----- End of picture text -----**
The notes on pages 98-127 form part of these Financial Statements.
96 Notes to the financial statements
## Notes to the financial statements For the year ended 31 August 2020
## 1. Accounting policies
The City and Guilds of London Institute is a Royal Charter company and charity domiciled in England and Wales, registration number RC000117. The registered office is 5-6 Giltspur Street, London, EC1A 9DE.
The following accounting policies have been applied consistently in dealing with items that are considered material to the charity’s accounts.
## 1.1 Basis of preparation
The Financial Statements are prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as revised in 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Institute meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern is a fundamental accounting concept that underlies the preparation of these accounts. Under the going concern concept it is assumed that the Group and Charity will continue in operation for the foreseeable future, and that there is neither the intention nor the need to either liquidate or cease operations.
## _Assessment of going concern_
- Review of financial performance: Management reviews the financial performance of the organisation on a monthly basis, including a review of monthly management accounts and evaluation of actual results compared to budgets and forecasts. The management accounts are shared with the Board of Trustees and the Audit & Risk Committee for their
reviews. Management also reviews both financial and non-financial key performance indicators on a monthly basis, and in the light of COVID-19, has introduced a number of weekly indicators, including non-financial indicators to ensure early identification of issues.
- Budgeting and forecasting: Management undertakes a formal schedule of financial budgeting and forecasting of revenues, expenses, cash flows and liquidity regularly in each financial year which are taken to the Board of Trustees for their approval. Budgets and forecasts, along with any revisions to them, are reviewed by the Board and the Audit & Risk Committee and are then approved by the Board.
- Given the uncertainties and challenges presented by the COVID-19 pandemic, in May 2020, management extended the planning period to 24 months and included stress testing of the Group and Charity’s cash position in the event of downside risks.
- Timing of cash flows: Management evaluates cash resources and availability of facilities in the funding of operating activities, and develops adequate plans to enable the organisation to take effective action to alter the amounts and timings of its cash flows so that it can respond to unexpected needs or opportunities. Management also includes an assessment of whether the Charity can meet the agreed schedule of contributions into the City and Guilds (1966) Pension Scheme, and whether there is any risk that, within the period under review for going concern, a section 75 debt requiring immediate payment would be triggered.
- Products, services and markets: Management considers emerging economic, socioeconomic and political trends within the markets in which it operates, and considers how the organisation might adapt its product offerings accordingly, and it assesses whether there are any other factors which may impact the organisation’s ability to deliver its charitable mission.
97 Notes to the financial statements
## 1. Accounting policies (continued)
In making their assessment of going concern, management stress tested the budget and various scenario models, incorporating a number of assumptions including reducing the number of learners registering on courses, reducing the number of End Point Assessments taking place, phasing the economic recovery, and increasing expenditure within the planning period. Basecase projection shows group cash and investment at end of FY21 of £72.9m. Result of sensitivity analysis shows that for a 5% full year reduction in revenue across the business, operating surplus and cashflows will reduce by c. £5.0m. Even in worst-case scenario, group cash and investment at end of FY21 is projected at £47.9m. The stress test has demonstrated that the business could sustain the loss of 63% of annual income levels while remaining solvent for a period of at least 12 months. The stress test details various measures management could take to control costs and conserve cash within the business but excludes additional liquidity options like the monetisation of Group’s business assets e.g.London office and redemption of investments. These additional liquidity levers, along with the positive post FY20 financial performance of the Group, which tracks ahead of the base-case, have given the Board comfort that the Group and Charity will continue to be able to meet its liabilities as they fall due for at least the next 12 months from the date of approval of the financial statements.
Management has determined that there are no material uncertainties that may cast significant doubt about the Group and Charity’s ability to continue as going concerns and hence these financial statements have been drawn up on a going concern basis.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies.
## _Parent entity disclosure exemptions_
In preparing the separate financial statements of the parent, advantage has been taken of the following disclosure exemptions available in FRS 102:No statement of cash flows has been presented; and
- No disclosure has been given for the aggregate remuneration of the key management personnel of the parent as their remuneration is included in the totals for the Group as a whole.
## 1.2 Basis of consolidation
The consolidated financial statements include the assets, liabilities and results of The City and Guilds of London Institute (“the Institute”) and of its subsidiaries.
All subsidiaries are consolidated on a line by line basis from the date of acquisition. Associates are accounted for using the equity method.
The investment in Totara Learning Solutions Limited is not treated as an associate despite a holding of more than 20% as The Group does not exert significant influence on the operating and financial policies of this company. It should be noted that this investment was sold during the year.
Despite there being a uniting direction in place between the Institute and City and Guilds International Ltd, the Institute figures presented in these accounts solely reflect the assets, liabilities and activities of the Institute.
In accordance with the transitional exemption available under Section 35 of FRS 102, the Group has chosen not to retrospectively apply Section 19 to business combinations that occurred before the date of transition to FRS 102, being 1 September 2014.
98 Notes to the financial statements
## 1. Accounting policies (continued)
## 1.3 Reserves and fund structure
Unrestricted funds comprise accumulated surpluses on general funds and revaluation reserve which the Trustees are free to use for any purpose in furtherance of the charitable objects. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
1.4 Tangible fixed assets and depreciation The Institute's long leasehold office at 5-6 Giltspur Street are included at open market valuation, carried out by Daniel Watney, Chartered Surveyor, as at 1 September 2014. This valuation was held at deemed cost on transition to FRS102. Subsequent additions are capitalised at cost.
Freehold property is depreciated on a straightline basis over 50 years.
Short leasehold properties held by the Group are accounted for as operating leases, but any initial or other major expenditure on improvements is capitalised and written off on a straight- line basis over the life of the leases, subject to a maximum period of 50 years.Group policy is to capitalise equipment greater than £1,000.
Assets which are subject to a period of construction are depreciated from the date they are brought into operational use.
Other tangible fixed assets as stated below are depreciated on a straight-line basis over their estimated useful life as follows:
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Long leasehold land Lease term
Long leasehold buildings 2%
Computer software and 20% - 33.3 ['] %
equipment
Furniture and fixtures 25%
Motor vehicles 25% - 33.3 ['] %
Plant 5% - 25%
**----- End of picture text -----**
## 1.5 Intangible fixed assets
Goodwill, being the excess of the purchase price of acquisitions over the fair value of the net assets acquired, is capitalised in accordance with FRS 102 and amortised over its estimated useful economic life, which is up to a maximum of 10 years.
Other intangible fixed assets consist of intellectual property rights, customer relationships, programme content and trade names, which are capitalised at cost or transaction value and amortised on a straight-line basis over their estimated useful economic lives.
**----- Start of picture text -----**
Intellectual IPR Based on IPR protection
property term period
rights
Customer various Based on the estimated
relationships life of the cash flows
Programme various Based on the estimated
content remaining life of the cash
flows
Trade name various Based on the estimated
remaining life of the cash
flows
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When circumstances are identified which give rise to an impairment in the value of any intangible or fixed asset, that impairment loss is recognised immediately.
99 Notes to the financial statements
## 1. Accounting policies (continued)
## 1.6 Taxation
The Institute is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the Institute is exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Trading subsidiaries provide for tax at amounts expected to be paid or recovered using tax rates and laws that have been enacted or substantially enacted at the balance sheet date.
## 1.7 Incoming resources
Fee income relating to registrations is deferred and recognised over the estimated time taken to complete the relevant qualification as performance obligations are met during the course delivery period. A proportion of registration fee income is recognised immediately to reflect an estimate for learners who do not complete the course, in reference to the performance obligations of the Institute to the colleges, and the nature of the contract. Where assessment and certification income exceeds registration fee income for any qualification, the registration income is not deferred and is recognised when the service is provided. Assessment income is recognised when the assessment is marked, certification income is recognised when the certificate is issued. From 1 September 2019, registration income for qualifications with a typical duration of three months or less is deferred to be in line with all other courses. This stated policy now also applies to ILM income to ensure greater consistency in Group’s income recognition approach. The change to spreading the income has not had a material impact on the group figures.
Sales of named user licences with indefinite expiry dates are deferred until licence activation and then recognised evenly over the estimated period of use of the licence.
Income receivable from contracts entered into to provide other services or solutions,
including e-learning is recognised on the basis of percentage of contract completed by reference to costs, with credit taken for profit earned to date when the outcome of the contract can be assessed with reasonable certainty.
In accordance with Section 24 of FRS 102, government grant is recognised in income in the period in which it becomes receivable.
## 1.8 Resources expended
Expenditure is recognised on an accrual basis as a liability is incurred. Irrecoverable VAT is included within resources expended or capitalised with the appropriate asset.
The costs of preparing examinations are written off as they are incurred irrespective of examination dates.
Third party and internal content development costs are written off in the year they are incurred unless:
- The product has an estimated useful life of more than one year; and
- There is a reasonable expectation that the revenue to be generated over the useful life of the product will exceed the expected total development costs and that those costs are separately identifiable and quantifiable.
If the above criteria are met, the expenditure is carried forward in prepayments and written off over three years, which is the typical useful life of a product. The content development costs carried forwards as prepayments are subject to annual reviews for indicators of impairment. Costs of raising funds include costs incurred in trading activities that raise funds.
Charitable activities include expenditure in respect of education services, and include both direct costs and support costs relating to these activities.
Governance costs include expenditure in respect of the Institute’s constitutional requirements. Support costs include central functions and have been allocated to activities on a basis consistent with the use of resources. The allocation is shown in Note 4.
100 Notes to the financial statements
## 1. Accounting policies (continued)
## 1.9 Foreign currency translation
Transactions denominated in foreign currencies are translated into Sterling at the monthly average rate of exchange. Assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling on the Balance Sheet date.
The Financial Statements of overseas branches and undertakings are translated into Sterling on the following basis:
- Assets and liabilities at the rate of exchange ruling at the Balance Sheet date.
- Statement of Financial Activities items at the average rate of exchange for the year.
Exchange differences arising on the re-translation of the results of overseas entities into Sterling are included in other recognised gains and losses within the Consolidated Statement of Financial Activities.
## 1.10 Pensions
The City and Guilds (1966) Pension Scheme has defined benefit and defined contribution sections.
The defined benefit section is accounted for in accordance with the requirements of FRS 102 and details are shown in note 19. The difference between the fair value of the assets held in the Group’s defined benefit pension scheme and the scheme’s liabilities measured on an actuarial basis using the projected unit method are recognised in the Group’s balance sheet as a pension asset or liability as appropriate. Changes in the defined benefit pension scheme asset or liability arising from factors other than cash contributions by the Group are charged to expenditure or other gains and losses within the Statement of Financial Activities in accordance with FRS 102.
The Institute operates a policy of recharging the costs of the defined benefit pension scheme to group entities based on employer contributions made of behalf of the relevant staff members.
Contributions to the defined contribution section are charged to the Consolidated Statement of Financial Activities in the year in which they are made.
Following a period of employee consultation, the existing defined benefit and defined contribution sections of the City and Guilds (1966) Pension Scheme were closed to future benefit accrual on 30 June 2018 and a new defined contribution section was opened for future benefit accrual on 1 July 2018.
## 1.11 Holiday pay accruals
A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
## 1.12 Concessionary loans
Concessionary loans are those loans made or received by the Group to further its purposes and any interest charged is below the prevailing market rates. These loans are measured at cost less provisions for impairment.
1.13 Operating leases and leased assets Rentals applicable to operating leases are charged to the Consolidated Statement of Financial Activities on an accruals basis.
## 1.14 Investments
Investments in subsidiary companies are shown at cost in the parent company, less provisions and impairments where appropriate.
Investments in group companies are a combination of programme related investments and mixed motive investments. Programme related investments are held primarily for their contribution to the charitable objectives of the parent. Mixed motive investments are held partly for a financial return and partly for their contribution to the charitable objectives of the parent.
101 Notes to the financial statements
## 1. Accounting policies (continued)
The programme related investments are held at the lower of cost and recoverable amount. Each year end consideration is given to whether there are any indicators or impairment, based on the charitable benefit expected to be provided by these entities going forwards.
The mixed motive investments are also held at the lower of cost and recoverable amount. Each year end consideration is given to whether there are any indicators of impairment, based on a combination of the charitable benefit expected to be provided by these entities going forwards as well as the expected financial contribution to the group going forwards.
Quoted investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Consolidated Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.
## 1.15 Financial instruments
Financial assets and liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all its liabilities.
1.16 Judgements in applying accounting policies In preparing these financial statements, the management has made the following judgements:
## Indicators of impairment and impairment of assets
Management determines whether there are indicators of impairment of the Group's tangible and intangible assets, including goodwill.
Factors taken into consideration in reaching such a decision include the economic viability and expected future financial and social performance of the asset and where it is a component of a larger cash-generating unit, the economic viability and expected future financial and social performance of that unit.
An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount which is the higher of its fair value less costs to sell and its value in use, both of which require the use of estimation in their calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing the asset. The value in use calculation is based on a combination of expected future social returns and a discounted cash flow model. The social returns are derived from the business plans for the next 5 years and the number of learners that are expected to be reached. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows for extrapolation purposes.
## Actuarial assumptions in respect of defined benefit pension schemes
The application of actuarial assumptions relating to defined benefit pension schemes is incorporated in the financial statements in accordance with FRS 102. In applying FRS 102, advice is taken from independent qualified actuaries. In this context, significant judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.
102 Notes to the financial statements
## 1. Accounting policies (continued)
## The assumptions underlying the pension scheme valuation:
The principal actuarial assumptions are shown in Note 19. The effect of reasonably possible movements in these assumptions on scheme liabilities are as follows:
- 0.1% pa increase in discount rate leads to a decrease of £6.0m in scheme liabilities
- 0.1% pa decrease in inflation rate leads to an decrease of £6.0m in scheme liabilities
- 0.25% pa decrease in rate of salary increases leads to an decrease of £0.2m in scheme liabilities
- 0.1% pa increase in rate of increase in pensions in payment leads to an increase of
- £4.0m in scheme liabilities
- 0.25% to 1.5% pa increase long-term rates of improvement leads to an increase of
- £3.0m in scheme liabilities
## The future viability of courses where third party content development costs have been deferred:
Development in new products has many inherent uncertainties, with the future viability being the key risk. The Group mitigates this risk through the use of analytical and tracking tools like regular market research.
As at the balance sheet date, the management considers the risk of courses with deferred expenditure not being viable in the future to be remote. The Group also has a prudent policy of immediately expending deferred third party content development costs when the future viability of the underlying courses is in question.
1.17. Other key sources of estimation uncertainty Tangible and intangible fixed assets, are depreciated or amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, factors such as technological
innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
## The impact on income of the estimated course length:
Fee income relating to registrations is deferred and recognised over the estimated time taken to complete the relevant qualification. An increase in course length by 10% during the year would result in a reduction in recognised income by £0.5m (2019: £1.5m) at the existing level of income.
The impact on income of the estimated dropout rates for students signing up to courses: As a proportion of registration fee income is recognised immediately to reflect an estimate for learners who do not complete (i.e. drop out of the course), an increase in drop- out rates by 10% would result in an increase in recognised income by £0.2m (2019: £0.1m) at the existing level of income.
## The assumptions underlying the valuation of intangible assets:
The acquired intangible assets that meet the recognition criteria under the revised FRS 102 guidelines are professionally valued using multiperiod excess earnings and relief from royalty methods. The valuation approach relies on both internal and external business intelligence which can only ultimately be reliably tested in the market itself. Key inputs into the valuations are:
- Customers retention rate
- Long-term operating EBIT margin
- Percentage of all revenues generated from bespoke and blended learning solutions
- Royalty rate
- Weighted Average Cost of Capital specific to the acquisition on the transaction date
Determining whether an investment in subsidiary is impaired requires an estimation of the recoverable amount of the investment at the end of the financial year.
103 Notes to the financial statements
## 1. Accounting policies (continued)
Refer to 1.16 Indicators of impairment and impairment of assets for factors taken into account when determining the recoverable amount of an investment.
## Risk of material adjustment to the carrying value of investment portfolio:
All investments are carried at their fair value. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The main risk to the Group from financial instruments lies in the combination of uncertain investment markets and volatility in yield.
Liquidity risk is anticipated to be low as the Group’s investments are mainly traded in markets with good liquidity and high trading volumes. The Group has no material investment holdings in markets subject to exchange controls or trading restrictions.
## 2. Income from investments
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Year ended Year ended
31 August 31 August
2020 2019
£m £m
Interest on deposits 0.1 0.1
Interest on investments 0.6
0.7 0.1
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## 3. Income from charitable activities: Educational services
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Year ended Year ended
31 August 31 August
2020 2019
£m £m
Fee Income 84.9 98.3
Government Grant recieved 2.2 -
Royalties recieved - 0.1
87.1 98.4
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The Group manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Group does not make use of derivatives and similar complex financial instruments.
Government grant totalling £3.9m were received during the year, £1.7m of which is included as income and endowments from other trading activities as set out in the Consolidated Statement of Financial Activities.
104 Notes to the financial statements
## 4. Resources expended
## (a) Analysis of total expenditure
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Staff costs Other direct Support Year ended Year ended
(Note 15) costs costs 31 August 31 August
2020 2019
Total Total
£m £m £m £m £m
Trading costs 25.1 12.3 9.1 46.5 43.2
Investment management costs - - - - -
Education services 47.5 22.2 23.2 92.9 99.5
Tax on overseas activities - 0.2 - 0.2 0.3
72.6 34.7 32.3 139.6 143.0
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The above excludes exceptional items totalled at £4.2m during the year (2019: £3.4m). These exceptional items include strategic restructuring costs for the delivery of the Group’s Covid-19 response plan. In the previous year, exceptional costs related to the Group’s Ambition 2020 vision plan.
## (b) Analysis of support costs
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Trading Educational Governance Year ended Year ended
costs services 31 August 31 August
2020 2019
£m £m £m £m £m
Premises and utilities 2.3 3.0 0.01 5.3 5.6
Communication and IT 2.1 9.5 0.02 11.6 9.4
Postage and printing 0.1 0.5 - 0.6 0.9
Other 1.5 - 1.5 2.1
Depreciation and impairment 3.0 3.8 0.01 6.8 6.6
Amortisation costs - 5.9 0.01 5.9 4.6
Financial costs 0.1 0.5 - 0.6 0.7
9.1 23.2 0.05 32.3 29.9
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Support costs are allocated on a basis consistent with the use of resources and apportioned to the respective activity by utilising the average number of staff employed on relevant activities as a proportion of the total average staff number. For the purpose of allocation, governance costs within the support costs are considered to be educational services related and non-trading.
105 Notes to the financial statements
## 4. Resources expended (continued)
## (c) Analysis of governance costs
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Year ended Year ended
31 August 31 August
2020 2019
£m £m
Audit fees 0.3 0.3
Professional fees 0.2 0.2
Staff costs 0.1 0.1
Apportionment of support costs 0.1 0.1
0.7 0.7
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## (d) Cost analysis
Included within total expenditure are the following individual items:
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Year ended Year ended
31 August 31 August
2020 2019
£m £m
Group auditors' remuneration:
Audit fees 0.2 0.2
Other services 0.0 0.0
Other auditors' remuneration:
Audit fees 0.1 0.1
Taxation and other services 0.1 0.1
Operating lease rentals:
Land and buildings 2.6 2.6
Plant and equipment 0.6 0.4
(Gain) / loss on disposal of investment (7.8) -
Depreciation and impairment (Note 6) 6.8 6.6
Amortisation (Note 5) 5.9 4.6
Impairment in goodwill (Note 5) 1.0 -
Net loss / (gain) on foreign currency transactions 0.5 0.0
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106 Notes to the financial statements
## 5. Intangible fixed assets
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Goodwill Intellectual Customer Programme Trade name Total
property relationships content
rights
£m £m £m £m £m £m
Group:
Cost or valuation
At 1 September 2019 36.8 1.7 8.3 1.4 0.6 48.8
Foreign exchange revaluation 0.4 - - - - 0.4
Additions 4.7 4.7
At 31 August 2020 41.9 1.7 8.3 1.4 0.6 53.9
Amortisation
At 1 September 2019 18.7 1.7 2.2 0.9 0.1 23.6
Amortisation for the year 5.0 - 0.7 0.2 - 5.9
Impairment 1.0 - - - - 1.0
At 31 August 2020 24.7 1.7 2.9 1.1 0.1 30.5
Net book values
At 31 August 2019 18.1 - 6.1 0.5 0.5 25.2
At 31 August 2020 17.2 - 5.4 0.3 0.5 23.4
Institute:
Cost or valuation
At 1 September 2019 1.9 1.7 - - - 3.6
- - - - - -
Foreign exchange revaluation
At 31 August 2020 1.9 1.7 - - - 3.6
Amortisation
At 1 September 2019 1.7 1.7 - - - 3.4
- - - -
Amortisation for the year
At 31 August 2020 1.7 1.7 - - - 3.4
Net book values
At 31 August 2019 0.2 - - - - 0.2
At 31 August 2020 0.2 - - - - 0.2
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107 Notes to the financial statements
## 5. Intangible fixed assets (continued)
Goodwill is reviewed annually for indications of impairment. If such indications exist, goodwill is additionally tested for impairment using value in use calculations. The value in use calculations are based on a combination of expected future social returns and discounted cash flow modelling. The social returns are derived from the business plans for the next 5 years and the number of learners that are expected to be reached. The discounted cash flow models use cash flow projections based on financial budgets approved by management covering 2019/20, taking into account the shortterm impact of COVID and its subsequent forecasted recovery. The key assumptions used by management in the value in use calculations were:
## _Discount rates_
The discount rate is based on the risk free rate for government bonds, adjusted for a risk premium to reflect the specific circumstances of each investment. The discount rate used in measuring value in use was 12.0% (2019: 9.0% - 13.0%).
## _Perpetuity growth rates_
A perpetuity growth rate of 2.50% (2019: 2.25%) was used based on the long-term forecast growth rate in the UK.
## _Cash flow growth rates_
Cash flow growth rates are based on management’s forecasts of sales, gross operating margins and overheads for the next 5 years.
Customer relationships are core business assets retained through the strong relationship management capability at senior level. The amortisation period for the carrying intangible is 10-12 years.
Programme content comprise of learning solutions, learning content, training products including the flagship 5 Conversations product that are intrinsic to the business operations. The amortisation period for the carrying intangible is 7.5 years.
Trade name is associated with businesses acquired by the Group. The amortisation period for the carrying intangible is 20 years.
This review led to a £1.0m impairment in the year (2019: £nil) reflecting the impact of COVID on the group.
108 Notes to the financial statements
## 6. Tangible fixed assets
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Freehold Leasehold Computer Plant, fixtures Assets under Total
property property software and and motor construction
equipment vehicles
£m £m £m £m £m £m
Group:
Cost or valuation
At 1 September 2019 4.3 23.4 28.6 5.6 5.0 66.9
Transfers - - 1.8 1.1 (2.9) -
Acquisitions - - 0.1 0.1 - 0.2
Additions - - 1.6 0.2 1.6 3.4
Disposals - (0.3) (7.9) (0.3) (0.9) (9.4)
At 31 August 2020: 4.3 23.1 24.2 6.7 2.8 61.1
Accumulated depreciation
At 1 September 2019 - 1.8 21.8 4.2 - 27.8
Charge for the year - 0.5 4.8 0.5 - 5.8
Impairment - - - 0.9 0.9
Disposals - (0.3) (7.8) (0.1) (0.9) (9.1)
At 31 August 2020 - 2.0 18.8 4.6 - 25.4
Net book values
At 31 August 2019 4.3 21.6 6.8 1.4 5.0 39.1
At 31 August 2020 4.3 21.1 5.4 2.1 2.8 35.7
Institute:
Cost or valuation
At 1 September 2019 - 23.4 24.1 3.5 4.5 55.5
Transfers - - 1.8 1.1 (2.9) -
Additions - - - - 1.6 1.6
Disposals - (0.3) (7.0) - (0.9) (8.2)
At 31 August 2019: - 23.1 18.9 4.6 2.3 48.9
Accumulated depreciation
At 1 September 2019 - 2.0 20.5 3.2 - 25.7
Charge for the year - 0.4 2.2 0.4 - 3.0
Impairment - - - - 0.9 0.9
Disposals - (0.3) (7.0) - (0.9) (8.2)
At 31 August 2020 - 2.1 15.7 3.6 - 21.4
Net book values
At 31 August 2019 - 21.4 3.6 0.3 4.5 29.8
At 31 August 2020 - 21.0 3.2 1.0 2.3 27.5
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Assets under construction are transferred to the relevant asset category on becoming operational. At 31 August 2020, the historical cost of the leasehold property of the Group amounted to £14.7m (2019: £15.0m) and of the Institute amounted to £14.7m (2019: £15.5m).
The Institute's long leasehold office at 5-6 Giltspur Street has been provided as security to the pension scheme.
109 Notes to the financial statements
## 7. Investments
## (a) Subsidiaries:
All investments in subsidiaries are deemed mixed motive investments with the exception of the investment in City and Guilds International Limited, which is programme related.
The Group’s net movement in funds, a surplus of £0.7m (2019: deficit of £10.0m), includes the results of the following nine fully controlled charitable / wholly owned trading subsidiaries all of which are incorporated in the UK and limited by shares unless otherwise stated:
- City and Guilds International Limited, a limited company and a registered charity within the Institute’s registration. Together with its overseas subsidiaries it delivers examination and award services overseas.
- City and Guilds Kineo Limited, a limited company that, together with its US subsidiary, helps businesses improve their performance through learning and technology.
- Flexible Learning Networks Limited (trading as Kineo Pacific) a limited company incorporated in New Zealand which provides e-learning solutions for corporate and public sector clients.
- The Oxford Group Consulting and Training Holding Company Limited, a limited company that, together with its UK and US subsidiaries, delivers management development, leadership and executive coaching programmes.
employers and professional bodies.
- Radiowaves Schools Limited, a limited company that provides Schools Internet Radio.
- Interact Learning Pty Limited, a limited company incorporated in Australia that, together with its UK and Australia subsidiaries, provides design, development, implementation of training management and compliance solutions.
- Gen II Engineering & Technology Training Limited, a company limited by guarantee that, together with its UK subsidiary promotes apprenticeship training and offers training, educational products and services for the engineering, specialist manufacturing, energy and technology sectors.
- Intertrain UK Limited, a limited company that provides training in the construction, rail and health & safety sections.
The Group also includes the following dormant subsidiaries: NPTC, Guildco Limited, City and Guilds for Business Limited, Screenhold Limited, City and Guilds Enterprises Limited, Learning Assistant Limited, City and Guilds of North America Inc, City and Guilds International (Hungary) Education and Services LLC, City and Guilds (South Asia) Pte Ltd, Business Start-up Training Pty Ltd, Oxford Group Pension Trustees Limited, Nucleus Training Ltd, Nucleus Safety Training Ltd and Intertrain UK (Holdings) Ltd.
- Nine Lanterns Pty Limited, a limited company incorporated in Australia which partners with businesses to create custom-built e-learning content and platform solutions.
- Digitalme Limited, a company limited by guarantee that provides a range of design, consultancy and platform services relating to digital credentialing for education providers,
110 Notes to the financial statements
## 7. Investments (continued)
## (a) Subsidiaries:
The carrying value as well as the performance of these nine subsidiaries is summarised below:
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Company Financial Investment Total Total Surplus / Assets Liabilities Funds
number Year income expenditure (deficit)
(Charity
number)
£m £m £m £m £m £m £m
City and Guilds 1894671 2020 1.2 6.8 (5.5) 1.3 25.7 (17.4) 8.3
International
Limited (312832) 2019 1.2 8.9 (6.1) 2.8 10.1 (3.1) 7.0
City and Guilds 07150983 2020 9.5 18.8 (18.2) 0.6 15.5 (5.2) 10.3
Kineo Limited
(N/A) 2019 9.7 18.9 (17.7) 1.2 7.6 (5.8) 1.8
Flexible 155963250 2020 2.3 0.9 - 0.9 0.2 (0.4) (0.2)
Learning
Network (N/A) 2019 2.3 1.1 (1.5) (0.4) 0.4 (1.6) (1.2)
Limited
The Oxford 06074029 2020 6.1 6.5 (7.1) (0.6) 15.7 (13.9) 1.8
Group
(N/A) 2019 6.2 7.5 (7.7) 0.3 5.1 (2.1) 3.0
Nine Lanterns ACN 098 2020 1.8 - - - - - -
Pty Limited 839 082
(N/A) 2019 1.8 - - - - - -
Digitalme 05303626 2020 - - 0.8 0.8 - - -
Limited
(N/A) 2019 - - - - 0.1 (0.8) (0.7)
Radiowaves 05774430 2020 0.5 - (1.0) - 0.2 - -
Schools Limited
(N/A) 2019 1.0 0.1 (0.1) - 0.2 (1.1) (0.9)
Interact 095674285 2020 14.6 7.3 (8.4) (1.1) 6.1 (8.1) (2.0)
Learning
Pty Limited (N/A) 2019 17.4 7.0 (7.4) (0.4) 5.0 (5.9) (0.9)
Gen II
03804696 2020 8.8 10.8 (10.2) 0.6 9.7 (1.4) 8.3
Engineering
& Technology
Training Ltd (N/A) 2019 8.8 11.0 (9.3) 1.7 9.0 (1.2) 7.8
Intertrain UK 04696164 2020 5.0 3.6 (4.4) (0.8) 1.0 (1.5) (0.5)
limited
N/A 2019 N/A N/A N/A N/A N/A N/A N/A
Total 2020 49.8 54.7 (52.0) 2.7 73.9 (47.9) 26.0
2019 49.4 54.5 (49.3) 5.2 37.5 (21.6) 15.9
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During the year ended 31 August 2020, the Group carried out a review of the recoverable amount of the investments in subsidiaries due to the slower than expected revenue growth amid Coronavirus. The review led to the recognition of an impairment loss of £3.6m (2018-19: £nil) that has been recognised in the Institute’s Statement of Financial Activities. The recoverable amounts of the investments have been determined on the basis of their value in use. The discount rate used in measuring value in use was 12.0%.
111 Notes to the financial statements
## 7. Investments (continued)
## (b) Subsidiaries:
In the year, the Institute completed the acquisition of Intertrain UK Limited, a company that provides training in the construction, rail and health & safety sections on 31 October 2019 through the purchase of 100% of the ordinary share capital of the entity. Since acquisition, Intertrain UK Limited generated revenue of £3.6m and net loss of £0.8m for the period ended 31 August 2020.
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Subsidiaries acquired Intertrain UK Total
Ltd
£m £m
Assets / (liabilities) at book and fair value
Fixed assets 0.2 0.2
Debtors 1.3 1.3
Cash 0.1 0.1
Creditors (1.3) (1.3)
Net assets acquired 0.3 0.3
Total cash consideration 5.0 5.0
Total goodwill and intangible assets required - note 5 4.7 4.7
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## (c) Associate:
**----- Start of picture text -----**
Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
Investment in Associates
-
At 1 September 0.1 - -
Share of retained profit / (loss) 0.1 - -
At 31 August 0.1 0.1 - -
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The Group disposed of, through City and Guilds (Asia) Pte Limited (a subsidiary of City and Guilds International Limited) the 49% shareholding in Manipal City & Guilds Pte Limited, a company incorporated in India in the previous year.
112 Notes to the financial statements
## 7. Investments (continued)
## (d) Other
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Group Institute
31 August 31 August 31 August 31 August
2020 2018 2020 2019
£m £m £m £m
At 1 September 46.6 45.8 46.1 45.5
Additions 15.3 - 15.0 -
Disposals (31.9) (1.0) (31.6) (1.0)
Net gain / (loss) - realised (1.9) 1.8 (1.9) 1.8
Net loss - unrealised (0.5) - - (0.2)
31 August 27.6 46.6 27.6 46.1
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Other investments are comprised of £23.8m (2019: £42.4m) listed investments at year end.
Holdings in the listed investments in excess of 5% (2019: 5%) of the market value of the portfolio at 31 August 2020 are as follows: 3.2% (2019: 45.0%) is invested in the Barings Dynamic Asset Allocation Fund, 47.5% (2019: 45.9%) is invested in the Insight Broad Opportunities Fund and 36.6% (2019: nil) is invested in the Vanguard LifeStrategy 60% Equity Fund.
At 31 August 2020, the historical cost of these listed fixed asset investments of the Group amounted to £23.4m (2019: £40.0m) and of the Institute amounted to £23.4m (2019: £40.0m).
Holdings in the unlisted investments included £0.6m in MyKindaFuture Ltd, £1.2m in Filtered Technologies Limited (formerly Excel With Business Ltd), £1.5m in Credly Inc, £0.5m in GetMyFirstJob Ltd (fully impaired in 2017-18) and £0.7m in EmpowerTheUser Ltd. The investment in Totara Learning Solutions Ltd was disposed of in the year for a profit of £7.8m.
## 8. Debtors: Amounts falling due within one year
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Group Institute
31 August 31 August 31 August 31 August
2019 2018 2019 2018
£m £m £m £m
Trade debtors 11.5 13.0 7.9 7.9
Amounts owed by subsidiary undertakings - - 25.1 0.4
Other debtors 2.9 3.1 0.3 1.1
Prepayments 5.4 8.2 4.2 7.0
19.8 24.3 37.5 16.4
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All debtors fall due for payment within one year.
113 Notes to the financial statements
## 8. Debtors: Amounts falling due within one year (continued)
As at 31 August 2020, the amounts owed by subsidiary undertakings increased to £25.1m as shortterm arrangement was made for subsidiaries to hold a proportion of cash on Institute’s behalf to limit banking concentration risk.
The impairment loss recognised in expenditure for the year in respect of bad and doubtful trade debtors was £0.8m (2019: £0.6m). The impairment loss recognised in the Institute net income for the period in respect of bad and doubtful trade debts was £0.5m (2019: £0.2m).
## 9. Debtors: Amounts falling due within one year
**----- Start of picture text -----**
Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
Concessionary loans owed by subsidiary undertakings - - 3.8 9.0
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The above included amounts owed by City and Guilds International Limited, Digitalme Limited and Radiowaves Schools Limited, subsidiaries to the Institute. Interest is chargeable at concessionary rate for these loans.
## 10. Creditors: amounts falling due within one year
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Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
Trade creditors 7.3 4.9 2.6 3.0
Amounts owed to subsidiary undertakings 6.9
Taxation and social security 3.2 2.2 1.6 1.8
Other creditors 4.8 2.3 4.3 1.5
Accruals 8.9 11.7 5.3 8.7
Deferred income - see below 12.5 14.5 5.5 7.6
At 31 August 36.7 35.6 26.2 22.6
Deferred income
Group Institute
31 August 31 August
31 August 2019 31 August 2019
2020 2020
£m £m
£m £m
At 1 September 14.5 15.3 7.6 7.6
Deferred in the year 12.5 14.5 5.5 7.6
Released in the year (14.5) (15.3) (7.6 (7.6)
At 31 August 12.5 14.5 5.5 7.6
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114 Notes to the financial statements
## 11. Creditors: amounts falling due after one year
**----- Start of picture text -----**
Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
Other creditors 1.6 1.9 1.6 1.9
Deferred consideration 0.1 - -
1.6 2.0 1.6 1.9
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## 12. Provisions for liabilities and charges
**----- Start of picture text -----**
Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
At 1 September 1.9 2.0 3.5 1.7
Provided in the year - - - 1.9
Utilised in the year (1.0) (0.1) (2.9) (0.1)
At 31 August 0.9 1.9 0.6 3.5
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The above totals contain amounts relate to provision for the dilapidation costs that will crystallise on termination of building leases (Group 2020: £0.9m, 2019: £0.9m; Institute 2020: £0.6m, 2019: £0.6m). The exact cost of these dilapidations will only be known once the leases are terminated.
The Institute includes a provision of £1.9m against the recoverability of debts due from Radiowaves and DigitalMe in the previous year.
115 Notes to the financial statements
## 13. Funds
Analysis of Group net assets between funds:
**----- Start of picture text -----**
Restricted Unrestricted At 31 August Restricted Unrestricted At 31 August
2020 2019
£m £m £m £m £m £m
Fixed Assets - 59.1 59.1 - 64.3 64.3
Investments 3.7 24.0 27.7 3.8 42.9 46.7
Net current assets - 49.1 49.1 - 32.2 32.2
Provisions - (0.9) (0.9) - (1.9) (1.9)
Creditors: amounts falling due - (1.6) (1.6) - (2.0) (2.0)
after one year
Defined benefit pension scheme - (37.5) (37.5) - (44.1) (44.1)
reserve
Net assets at 31 August 3.7 92.2 95.9 3.8 91.4 95.2
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Analysis of movement in the funds of the Charity:
**----- Start of picture text -----**
At 1 September Income Expenditure Other At 31 August
2019 Movements 2020
£m £m £m £m £m
Group:
Unrestricted
General 131.0 135.7 (147.6) 5.8 124.9
Revaluation reserve 0.9 - - (0.2) 0.7
Skills Development Fund 3.6 - (0.3) - 3.3
Defined benefit pension scheme liability (44.1) - 4.1 3.3 (36.7)
Total unrestricted funds 91.4 135.7 (143.8) 8.9 95.2
Restricted
City & Guilds Land Based Services (NPTC) 3.8 - - (0.1) 3.7
Total restricted funds 3.8 - - (0.1) 3.7
Total 95.2 135.7 (143.8) 8.8 95.9
Institute:
Unrestricted
General 138.6 81.6 (91.1) (1.9) 127.2
Revaluation reserve 0.9 - - (0.2) 0.7
Skills Development Fund 3.6 - (0.3) - 3.3
Defined benefit pension scheme liability (44.1) - 4.1 3.3 (36.7)
Total unrestricted funds 99.0 81.6 (87.3) 1.2 94.5
Restricted
City & Guilds Land Based Services (NPTC) 3.8 - (0.1) 3.7
Total restricted funds 3.8 - (0.1) 3.7
Total 102.8 81.6 (87.3) 1.1 98.2
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116 Notes to the financial statements
## 13. Funds (continued)
Analysis of movement in the funds of the Charity – prior year:
**----- Start of picture text -----**
At 1 September Income Expenditure Other At 31 August
2018 Movements 2019
£m £m £m £m £m
Group:
Unrestricted
General 122.1 144.2 (149.2) 13.9 131.0
Revaluation reserve 7.5 - - (6.6) 0.9
Skills Development Fund 4.0 - (0.4) - 3.6
Defined benefit pension scheme liability (32.1) - 3.3 (15.3) (44.1)
Total unrestricted funds 101.5 144.2 (146.3) (8.0) 91.4
Restricted
City & Guilds Land Based Services (NPTC) 3.7 - (0.1) 0.2 3.8
Total restricted funds 3.7 - (0.1) 0.2 3.8
Total 105.2 144.2 (146.4) (7.8) 95.2
Institute:
Unrestricted
General 131.3 91.5 (97.3) 13.1 138.6
Revaluation reserve 7.5 - - (6.6) 0.9
Skills Development Fund 4.0 - (0.4) - 3.6
Defined benefit pension scheme liability (32.1) - 3.3 (15.3) (44.1)
Total unrestricted funds 110.7 91.5 (94.4) (8.8) 99.0
Restricted
City & Guilds Land Based Services (NPTC) 3.7 - (0.1) 0.2 3.8
Total restricted funds 3.7 - (0.1) 0.2 3.8
Total 114.4 91.5 (94.5) (8.6) 102.8
**----- End of picture text -----**
## Unrestricted
## _Institute_
Within the Institute’s unrestricted funds are prize and trust funds of £0.02m (2019: £0.02m).
## _Subsidiary charities_
The unrestricted funds of each subsidiary are given in Note 7(a).
## _Designated_
The Skills Development Fund was created by the Institute. Its aim is to invest in new and innovative activities which have a demonstrable impact; create long-term and sustainable change; deliver real benefit to the education sector, employers and/or learners; and reflect the Group’s global profile.
## Restricted
## _City & Guilds Land Based Services (NPTC)_
The City & Guilds Land Based Services (NPTC) Fund relates to assets transferred from City & Guilds Land Based Services (NPTC) whose use is restricted to the advancement of education and training by means of the establishment and/ or administration of schemes of Proficiency Tests, Vocational Qualifications, Certificates of Competence, Certificates of Qualification and other such awards in agriculture, horticulture, forestry and other industries as the Charity shall from time to time decide. It is the intention of the Trustees of The City and Guilds of London Institute to continue to support specific landbased activities through such things as research, grants and bursaries, product development and other industry initiatives.
117 Notes to the financial statements
## 14. Reconciliation of net income to cash flows from operating activities
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
Net income / (expenditure) (2.2) 4.6)
Adjust for non-cash items:
Investment income (0.7) (0.1)
Depreciation and impairment 6.8 6.6
Amortisation 5.9 4.6
Taxation 0.2 0.3
Loss / (Gain) on investment assets 1.9 (1.7)
Gain) on disposal of investment (7.8) -
Gain on disposal of fixed assets - (5.0)
Impairment in goodwill 1.0 -
Decrease / (Increase) in debtors 4.9 (0.9)
Increase in creditors - 2.4
Decrease in provisions (1.0) (0.1)
Pension deficit movement (3.3) (3.3)
Cash flows from operating activities 5.7 7.4
**----- End of picture text -----**
## 15. Group staff costs
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
Wages and salaries 59.0 59.4
Social security 6.2 6.0
Severance payments 0.2 0.2
Pension 7.2 8.7
72.6 72.7
**----- End of picture text -----**
The above staff costs include bonus and long service award costs. Severance payments totalling £4.1m were made during the year, £3.9m of which is included as exceptional costs as set out in Note 4(a).
118 Notes to the financial statements
## 15. Group staff costs (continued)
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
Average number of staff:
Educational services 1,360 1,342
Governance 2 2
1,362 1,344
Year ended Year ended
31 August 31 August
2020 2019
Number of staff whose emoluments fell within the following bands:
£60,001 - £70,000 94 89
£70,001 - £80,000 60 43
£80,001 - £90,000 45 37
£90,001 - £100,000 25 20
£100,001 - £110,000 11 14
£110,001 - £120,000 6 9
£120,001 - £130,000 7 10
£130,001 - £140,000 1 6
£140,001 - £150,000 3 6
£150,001 - £160,000 4 1
£160,001 - £170,000 3 -
£170,001 - £180,000 2 1
£180,001 - £190,000 1 3
£190,001 - £200,000 1 -
£200,001 - £210,000 - 1
£220,001 - £230,000 2 1
£260,001 - £270,000 1 -
£270,001 - £280,000 - 1
£280,001 - £290,000 1 -
£290,001 - £300,000 - 3
£300,001 - £310,000 1 -
£480,001 - £490,000 - 1
£690,001 - £700,000 1 -
**----- End of picture text -----**
Emoluments in the above bands comprise salaries, bonus, benefits in kind, severance payments of £0.7m (2019: £2.1m) and long-term incentive plan payments of £nil (2019: £nil).
None of these staff (2019: nil) accrued retirement benefits under the defined benefit section of the City and Guilds (1966) Pension Scheme until it was closed on 30 June 2018. 133 of these staff (2019: 192) are accruing retirement benefits under defined contribution arrangements during the year. Contributions to the defined contribution scheme in respect of these 133 were £1.4m (2019: £1.9m).
119 Notes to the financial statements
## 16. Expenses reimbursed to Trustees
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
Travel and subsistence expenses reimbursed 0.01 0.01
Year ended Year ended
31 August 31 August
2020 2019
£m £m
Number of Trustees in receipt of expense reimbursements 9 13
**----- End of picture text -----**
## 17. Emoluments to Trustees
Indemnity insurance is paid on the Trustees’ behalf. No remuneration was paid to any trustee during the year (2019: £nil) nor did they receive any other benefits from employment with the charity or its subsidiaries during the year (2019: £nil).
## 18. Operating leases
Minimum lease payments under non-cancellable operating leases were as follows:
**----- Start of picture text -----**
Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
Operating leases that expire
Land and buildings:
Within one year 0.8 0.9 0.8 0.6
In two to five years 0.6 1.1 0.6 0.9
Over five years 18.1 18.2 18.1 18.2
Other:
Within one year 0.1 0.1 0.1 0.1
In two to five years 0.2 0.3 0.2 0.3
Total 19.8 20.6 19.8 20.1
**----- End of picture text -----**
120 Notes to the financial statements
## 19. Pensions
The Institute provides a pension scheme, the City and Guilds (1966) Pension Scheme, which comprises both defined contribution and defined benefit sections. Total contributions to the defined contribution sections for the year were £3.6m (2019: £4.0m). For the Institute and member contributions to the defined benefit sections for the year, please refer to Note 19(c) and 19(d). Both sections are approved by HM Revenue and Customs with their assets each held separately from those of the Group.
There were no prepaid or outstanding contributions in relation to either of the two defined contribution schemes as at 31 August 2020.
A triennial valuation of the City & Guilds (1966) Pension scheme was carried out by independent qualified actuaries, Willis Towers Watson at 30 September 2017. This valuation disclosed a funding deficit amounting to £49.1m and require the deficit recovery plan annual contributions to increase to £5.0m from 1st October 2018 to 30th September 2027.
The scheme was closed to new entrants since 30 June 2018. The final salary section of the scheme was closed to future accrual on 1 April 2009.
Following the court ruling that benefits arising in respect of guaranteed minimum pensions of the Lloyds Banking Group should be equalised, Willis Towers Watson quantified the impact this will have on liabilities within the City and Guilds defined benefit pension scheme in the year ended 31 August 2019. The additional Scheme liabilities are shown as Past service cost in Note 19(b) and Note 19(c).
## (a) Amounts recognised in the Balance Sheets
**----- Start of picture text -----**
31 August 31 August
2020 2019
£m £m
Fair value of Scheme assets 229.6 224.8
Present value of funded obligations (267.1) (268.9)
Net liability (37.5) (44.1)
**----- End of picture text -----**
## (b) Amounts recognised in the Statement of Financial Activities
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
Current service cost (0.7) (1.1)
Past service cost (1.3) (1.3)
Net interest charge (0.8) (0.8)
Total included in net income (1.5) (3.2)
Actuarial (loss) / gain 0.3 (33.1)
Return on assets greater than discount rate 3.0 17.9
Total (debit) / credit in Statement of Financial Activities 1.8 (18.4)
**----- End of picture text -----**
Actual return on Scheme assets was £4.8m (2019: £22.8m).
121 Notes to the financial statements
## 19. Pensions (continued)
## (c) Changes in the present value of the Scheme obligations
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
At 1 September 268.9 233.6
Service cost 0.7 1.1
Interest charge on Scheme liabilities 4.9 6.2
(Gain) / Loss on change in assumptions (0.3) 33.6
Benefit payments (6.4) (5.8)
Past service cost - 1.3
Expenses payments (0.7) (1.1)
At 31 August 267.1 268.9
**----- End of picture text -----**
(d) Changes in fair value of Scheme assets
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
£m £m
At 1 September 224.8 201.5
Interest on assets 4.1 5.4
Return on assets 3.0 17.9
Institute contributions 4.8 6.4
Actuarial adjustments - 0.5
Benefit payments (6.4) (5.8)
Expenses payments (0.7) (1.1)
At 31 August 229.6 224.8
**----- End of picture text -----**
The Group expects to make normal contributions of £nil (2020: £nil), deficit payments of £5.8m (2020 actual: £3.8m) and have admin expenses of £1.0m (2020 actual: £1.0m) during the next financial year. The Group’s tangible fixed assets are provided as further asset security to the Pension Scheme (Refer to Note 6 for details).
122 Notes to the financial statements
## 19. Pensions (continued)
(e) Major categories of assets as % of total assets
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
% %
Equities 20.9 19.6
Bonds 28.1 30.1
Property 5.5 5.9
Diversified Growth Funds 45.3 44.4
**----- End of picture text -----**
(f) Principal actuarial assumptions at the Balance Sheet date
**----- Start of picture text -----**
Year ended Year ended
31 August 31 August
2020 2019
% %
Rate of increase in salaries above inflation rate 0.75 0.75
Rate of increase in pensions in payment 2.70 2.80
Discount rate 1.75 1.85
Inflation rate assumption (RPI) 2.85 3.00
Inflation rate assumption (CPI) 2.20 2.00
**----- End of picture text -----**
The post-retirement mortality assumptions adopted at 31 August 2020 are in line with the standard SAPS S2 All Pensioners tables with a multiplier of 92% and future improvements based on the CMI 2019 core projections with a long-term trend of 1.25% pa.
123 Notes to the financial statements
## 19. Pensions (continued)
## (g) History of deficit and experience gains and losses
**----- Start of picture text -----**
31 31 31 31 31 31
August August August August August August
2020 2019 2018 2017 2016 2015
% of
£m assets £m £m £m £m £m
Scheme assets 229.6 224.8 201.5 195.7 183.5 156.8
Scheme obligations (267.1) (268.9) (233.6) (249.5) (246.2) (183.8)
Deficit (37.5) (44.1) (32.1) (53.8) (62.7) (27.0)
Experience adjustments on assets - 0.0% 0.5% - - (0.3) (0.3)
Experience adjustments on liabilities - 0.0% - 6.2 - (0.2) 5.5
(Loss) / Gain on change in assumptions 0.3 (33.6) 16.6 4.9 (54.4) (5.3)
Actuarial (loss) / gain 0.3 0.1% (33.1) 22.8 4.9 (54.6) (0.1)
**----- End of picture text -----**
## 20. Parent charity Income and Expenditure account
The City and Guilds of London Institute has not presented its own Income and Expenditure account. The income of the parent charity is £81.6m (2019: £91.5m) and the deficit for the year to 31 August 2020 is £4.6m (2019: deficit of £11.6m).
124 Notes to the financial statements
## 21. Related party transactions
Transactions with related parties are set out below.
**----- Start of picture text -----**
As at 31 August Year ended 31 As at 31 August Year ended 31
2020 August 2020 2019 August 2019
Amounts Amounts Purchases Amounts Amounts Sales Purchases
due from due to Sales to from due from due to to from
Note £m £m £m £m £m £m £m £m
Institute:
Subsidiary undertakings a
City and Guilds International 14.3 - 4.0 - 3.1 - 5.4 -
Limited (restated)
Guildco Limited - 0.5 - - - 0.5 - -
City and Guilds Kineo - 5.0 - - 2.6 - - 3.0
Limited (restated)
Flexible Learning Network - - - - - 0.2 - -
Limited
The Oxford Group 11.7 - - - - 0.2 - -
Nine Lanterns Pty Limited - - - 0.9 0.9 - - -
Digitalme Limited - - - 0.6 0.6 - - -
Radiowaves Schools Limited - - - 1.3 1.3 - - -
Interact Learning Pty Limited 2.2 - - - 1.4 - - -
Gen II Engineering & - 1.4 - - - 0.1 - -
Technology Training Ltd
Intertrain UK Limited 0.7
Total 28.9 6.9 4.0 2.8 9.9 1.0 5.4 3.0-
**----- End of picture text -----**
(a) Unless specified otherwise, amounts due from and to subsidiary undertakings are repayable on demand. Transactions with subsidiary undertakings are primarily for intra- group services and cross company recharges. The prior year related party transactions with City and Guilds International Limited and City and Guilds Kineo Limited are restated to ensure consistency with other subsidiaries’ financial statements. Amounts due from City and Guilds International Limited and its subsidiaries totalled at £14.3m as at 31 August 2020, £13.4m of which is disclosed in the financial statements of City and Guilds International Limited (company number: 1894671) as set out in the related party transactions note.
Details of transactions with other Group companies (that are not wholly owned subsidiaries) are set out below.
City and Guilds Kineo Limited paid £0.56m (2019: £0.52m) to Totara Learning Solutions Limited for services provided. £nil (2019: £nil) was due to Totara Learning Solutions Limited at the year end.
The total compensation paid to key management personnel for services provided to the Group was £2.7m (2019: 2.6m) including £0.2m (2019: £0.1m) of employers’ pension contribution.
Included in the above amounts are non-contractual payments totalling £0.3m to two of the key management personnel who left the Group during the year, specifically the CEO (Chris Jones) and the MD Corporate Learning (John Yates).
125 Notes to the financial statements
## 22. Financial instruments
The Group’s and Institute’s financial instruments may be analysed as follows:
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Group Institute
31 August 31 August 31 August 31 August
2020 2019 2020 2019
£m £m £m £m
Financial assets
Financial assets measured at amortised cost
Cash at bank and in hand 66.0 43.5 17.7 25.0
Trade debtors 11.5 13.0 7.9 7.9
Amounts owed by subsidiary undertakings - - 28.9 9.4
Other debtors 2.9 3.1 0.3 1.1
Prepayments 5.4 8.2 4.2 7.0
Financial assets measured at fair value through profit or
loss
Other investments 23.8 42.4 23.8 42.4
Total financial assets 109.6 110.2 82.8 92.8
Financial liabilities
Financial liabilities measured at amortised cost
Trade creditors 7.3 4.9 2.6 3.0
Amounts owed to subsidary undertakings - 6.9
Taxation and social security 3.2 2.2 1.6 1.8
Other creditors 6.4 4.2 5.9 3.4
Accruals 8.9 11.7 5.3 8.7
Deferred consideration - 0.1 - -
Deferred income 12.5 14.5 5.5 7.6
Total financial liabilities 38.3 37.6 27.8 24.5
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Financial assets measured at amortised cost comprise cash at bank and in hand, trade debtors, other debtors, prepayments and amounts owed by subsidiary undertakings.
Financial assets measured at fair value through profit or loss comprise other investments in a trading portfolio of listed company shares. The basis of determining fair value for these investments is by reference to open market value. For investments in funds, open market value is determined by the fund manager based on the net asset value of the underlying investments.
Financial liabilities measured at amortised costs comprise trade creditors, other creditors, accruals, deferred consideration, deferred income and amounts owed to subsidiary undertakings.
## Administrative information
## Trustees
Sir John Armitt CBE FREng FICE FCGI Chairman of Council
Dr Ann G Limb CBE FCGI Vice-Chair & Joint Honorary Secretary
Andy P Smyth Joint Honorary Secretary
Peter R McKee HonFCGI Treasurer
Kevin J Baughan
Ann Brown
Frank Douglas
Chris V Fenton
Jane Gibbon
## Investment Managers
Insight Investment Management Limited 160 Queen Victoria Street, London EC4V 4LA
Baring Asset Management Limited 20 Old Bailey London EC4M 7BF
Vanguard Asset Management Ltd 4th Floor, The Walbrook Building, 25 Walbrook, London, EC4N 8AF
## Principal Bankers
The Royal Bank of Scotland London Corporate Centre, PO Box 412 62-63 Threadneedle Street London EC2R 8LA
Actuaries Willis Towers Watson 51 Lime Street London EC3M 7DQ
Professor Alison Halstead FCGI
Andrew P Marchant
Dr Richard Palmer
Secretary to the Institute C D Miller (resigned 30 September 2020) C R Astles (appointed as Interim Secretary with effect from 7 October 2020)
Group Chief Executive and Director General of the Institute C E Jones (resigned 31 December 2019) K Donnelly MBE (appointed 1 January 2020)
Principal Office Giltspur House 5-6 Giltspur Street, London EC1A 9DE
External Auditors BDO LLP 2 City Place Beehive Ring Road, Gatwick West Sussex RH6 0PA
Internal Auditors Deloitte LLP 1 New Street Square, London EC4A 3HQ
Principal Legal Advisers Charles Russell LLP 5 Fleet Place London EC4M 7RD
Bird & Bird LLP 12 New Fetter Lane London EC4A 1
Other Key Management Personnel J T Conybeare-Cross ACA Chief Financial Officer
N Pattimore Chief People and Customer Officer
P T Ellaway Group Strategy Director
T Blake Chief Technology Officer
D Phillips Managing Director, Skills Credentialing
A Moss Managing Director, Corporate Learning
M Hottass Managing Director, Technical Training
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