2023-07-31-accounts

Fircroft College of Adult Edutation Report and FIn0￿CIal Statements Year End 31 July 2023 Charily registration number.. 510033

Key Management Personnel, Bogrd of Governors and Professional advisers Key management personnel Key management personnel were represented by the following in 2022123: Mel Lenehan Michael Conway Jones Principal and CEO.. Accounling Officer Vice Principal Board of Governors A full list of Governors is given on pages 16 & 17 of these financial stslements. Principal and Registered Office 1018 Bristol Road, Selly OaL Birniingham B29 6LH Professional xdvisors Finaneial Statements and Regularity Auditors Buzzacott LLP 130 Wood Street London EC2V 6DL Internal Auditors RSM St Philip5 Point Temple Row Birtningham B2 SAF Ballkers Lloyds Bank pl¢ University olBirn]ingham 142 Edgbaslon Park Road Edgbaston BtrniiThgham B15 2TY Investment Management Evelyn Partners 9 Colmorc Row Birmingham B3 2BJ

FIRCROFT COLLEGE OF ADULT EDUCATION Contents Contents Page: Report of the Governing Body 14 Statement of Corporate Governonce and Internal Control 22 Governing Body's statement on the College's regulatory, propriety and cornpliance with Funding body tern￿ and conditions of funding 23 Statement of Responsibilities of the Governing Body 25 Independent Auditor's Report to ihe Governing Body of Fircroft College of Adult Education 29 Reporting AccountaTht's Report on Regularity to the Governing Body of Fircroft College of Adult Education and the Secretary of State for Education acting through the Department for Education 31 Statement of Comprehensive Income and Expenditure 32 College Statement of Changes in Reserves 33 Balance Sheet as at 31 July 34 Statement of Cash Flows 35 Notes to the Accounts

FIRcR0￿ COLLEGE OF ADULT EDUCATION ort of tbe GoverDiD Bod NATURL 0￿CTIVEs AND STRATEGIES The members of the Goveming Body present their report and the audited financial statements for the year endeAJ 31 July 2023. LegAI status FÉrcroft College was initially set up in 1909 and then reryestablished as a charitable tnjst on 10 September 1979, Chatity number 510033. and is a designated inslitution under the Further and Higher Education Act 1992 for the purpose of conducting residential adult ¢du¢alion. Unlike mainstream Further Education colleges, Fircroft College is r¢gulatba by the Charity Commission. It has no subsidiary undertakings. The College is also subject to regulation from other bodies su¢h as DfE, and the Education and Skills Funding Agency (ESFA). On 29 November 2022, the Office for National Statistlcs reclassified all college corporations to Central Government $￿t0[ with immediate eff¢¢t. The Coll¢g¢ (with all Further Education (FE) colleges) must now meet the overall r4uirements in HM Treasury's documeni Managing Public Money (MPM) and other related obligatiODS. (As collected in the letter dated 29 November 2022 from the CEO of the Education and Skills Fundin8 Agen¢y (ESFA) to all Ac¢ountin8 Officers, and ESFA issued bite sized guides). Public Benefit Test The members of the Governing Body, who are trustees of the charity. are disclosed on page 16. In setting and rcviwing the College's Strategic obj¢ciiv¢s. the Gov¢ming Body has had due regard for the Charity Commission's guidaAce on public benefit and particularly upon its supplementary guidance on the advancement of education. The guidance sets out the requirement that all organisations wislung to be r¢¢ogntsed as charities musi demonstrate. explieiily, ihal their aims for the public benefil, The stttd¢nt statistics OD page 6 indicate the extent to which the Colle8¢ has met its own "social justice" mission. College objects and mission As s¢t out in its T￿￿t D¢eiL the College's Obj￿ are'for thepublic benefii, provideandpromote adult,fvrther and higher education including, without limilalion, Iheprovision ofresideniial education" Th¢ College's current mission is 'To promole social and climale/environmenlaljuslice by prowding adtslts wilh an excelleni learning environmeniforpetsonal, professional andpolilical developmeni,. Values Following an ¢xtensive review in 2022-23 academic y¢ar. the College has revis￿ its values. These now ar¢" Supportive Collaborative Anti-raclsl Brave Emp)wering Auihenlic

FIRCROFT COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) Implemellt4tioD of strate2ic plan Following a strategic review in 2018. the College had a five year strdtegy and implementation plan which focused on ensuring the long term sustainability of the College. This buili upon the success of its previous strategy and was ernbedded across the College in terms of its delivery for 2022123. The college's strategic them￿ and goals for 2022123 wcre reviewed by college leaders. The theme5 were revised lo; Learning. Wellbeing. Equity, Digiial and Environmcrkt and Sustainability. Following the Covid- 19 pandemic. Ihe college revised its strategic plan l￿der the themes of. Respond, R￿ver. Restore and Rebuild. The College's Siralegic Goals throughout the year were to: l. Provide an ¢x¢ellenl education envirorunent for all 2. Ensure the long iemi su5tainability of the College 3. tkv¢lop the Colle8¢'s external profile and build on its reputation In the 2022123 Annual Financial Staiemenis the College announced its intention to move from its charitable trust statu5 to an incorporated ¢harilable body. which was achicvcd on I" August 2023. To align with this change in legal status the College developed ils succe550r stratcgic plan. which was approved at the first Goveming Body of Fircroft College of Adult Education Ltd on 12th July 2023. This strdtegy will run through until 2030 and all￿ with the UN 2030 plan of action for People. Planet and Prosperity. Th¢ Colleg¢ s Strategic Goal moving forward to 2030 is. To support the development of global sustainable Citize￿ through residential adult education. CURREY4T AND FUTURE DEVELOPMENT AND PERFORMANCE Student numbers The Collegc had 37 ESF& and 1,031 WMCA fill￿ed enrolments during 202Y23 agaiDSt thc 2021122 figure of1,068. Consequ¢ntly. the college fell short of its original fLmding allocation on its WMCA ASB allo￿tIon (by £57.516 97.4.20/0) and met ils grdnt all(ution on Comtnunity allocation (£1.067,337 100 %) whilst being above Advanced Lcarner Loans Bursary {£101.473 196% ). La line with its missioo Fircroft College recruits bigh proportions ol leamers who have few educational qualifications (defined as none or at level l ), are on rne2￿ test¢d benefits or altract additional ful￿1ng (disadvantaged uplift) by nature of the deprived area in wlll.ch they live or their individual circUMstar￿ (e.g. rnental healrlL substance abuse or ex-offendcr): Total ESFA funded Enrolments Total WMCA funded Enrolments Leamers with Learners claiming neffts educational uallfications Access course Short courses - Adutt Skills Short courses Community Leamin Total 204 740 104 274 188 669 28 37 381 862

FIRCROFf COLLEGE OF ADULT EDUCATION Report of the Governing Body (Continued) CURRENT AND FirruRE DEVELOPMENT AND PER￿oRmANcE (continued) Student achievements The college n￿S accredited and unmccrcditcd courses ranging from I day to 30 weeks and from Entry 3 to Level 3. In previous years our results have been significantly above the latest national Qualification Achievement Rales at every provision level, 2022123 QAR national results have yet to be published but it is expected Ihal Ihis trend will continue. 2022123 P•$5 Rate Provision Level Retention Rate Aeblevement Rate Entry Level 3 Level I Level 2 Level 3 91.20/0 94.00/0 90.20/. 97.9% 88.30/0 79.70/ 87.00/0 Curriculum Developments Th¢ ¢olleg¢ grew its W¢sl Midlands combin￿ Authority Contract again in 2022123. agreeing a delivery plan. to engage those who are economically ina¢tive, help them improve their health and wellbeing and cnablc more residents to achieve Level 2 and Level 3 qualificatiorks. We also began to deliver the Multiply Maths progrdrnme. In May 2023 the college submitted an Accountability Agreement setting out for the DfE how we intend to respond to the Lo¢al Skills tmprovement Plan. Key areas will be digital inclusioN green skills. leadership and management and what the LSIP calls esseThtial skills. Ofsted Inspettio The college last had a short inspection in October2017 when it was grdded Good. OUT current Self-As5essment Report Judges that we remain Good overdll, with Outstanding Bchaviour aThd Personal Development gains for our students. Our next inspection will be an Enhanced Inspection with an additional inspector focusing on Skills. Our self-asscssmenl is that we make a rvasonable contribution to meeting I￿81 skills nccds with strong partner5hip5 in all four of Ofsted's stakeholder groups. Performance llldlcators The college has a set of KPIS which are reported to the Management Team on a monthly basis. Th¢s¢ are embedded into the business cycle of the committees for Education and Student Services and we have now built up 3 years of data to discuss with governors as trends. The College is required lo complete the annual Finance Record for the ESFA. The Finance Reeord produces financial health grading (as defined by the ESFA), and the Collcge grading for 2022123 is Good (2021122 Outstanding).

FIRcR0￿ COLLEGE OF ADULT EDUCATION Report of the Governing Body (continuoj) CURRE￿ AND FUTURE DEVELOPMENT AND PERFORMANCE (continu￿} Fircroft continues to be recogniscd for the leadership we show in relation io our mission: on¢ of the first colleges to be r¢wgnis¢d as a College of Sanduary early members of the Black FE LeadeTship Nttwork first college to declare a climate emergency awardal the wit)ner award for Campus. Health. Food and Drink at the Green Gown Awards for our success in moving to a plan1-bas￿ menu Winner of learning provision at 2023 Festival of Leaming awards Future prospects 2021122 marked the devolution of primary AEB fijnding away from ESFA to WMCA. WMCA issued contrdcts equal in valu¢, and description to the legacy contracts pr¢viously issued by ESFA for 2020121, and increased these by £161k (8.6O/D) for growth funding in 2022r23. Discussion5 are continuing between the WMCA and the College to determine a revised workleontent profile io maich the Combined Authorities priorities. We continue to plan a fijll programm¢ of courses in order to meet our WMCA and ESFA contracl ta￿et$. Changes continu¢ to be made to both the u￿ricUluM plan and the Collcgc estate to ensure the college is Covid safe. The Coll¢ge highlighted its intention to move to an I￿orE￿)rated structh in the 2021122 Annual Financial Sthtemenis. Thi"s was a¢hi¢v¢d at 00.01am on 1st August 2023 through an agrccd trdnsfer of all staff. ￿5¢t5 liabilities and all operations and fu￿110￿$ of the College. This did not change the College structurq fijnding or Ch￿l￿ble pur￿$¢. The new company. Fircroft College of Aduli Education is limited by guarantee, and r¢gisi¢r￿ in England. number 14776636. and registered with Charity Commission as numb¢T 1204069. 11 is currently planned that this cutrent charithblc tn￿ will be dissolved during 2023124.

FIRCROFT COLLEGE OF ADULT EDUCATION Report of the GoverDiDg Body (continued) FllYANCIAL posrrIoN Financial results including financial objectives The College reports a total deficit on all activity of £{89,533) (2021122 suwlus of £105,688). Op¢rdtionally the College reported a £66,224 surplus before inveslment losses (2021122 £154.210), reflecting the combined pressure of cost inflation ond continuing flal line funding on delivery of funding contracts during the year. There was continuing pressure on the value of ils investment portfolio across ihe year due to economic circumstances. High interest rates and continuing inflation in the UK have depressed markel values whilst there rcmains continued market volatility related to the war in Ukraine. The College continues to benefit from gcM)d levels of investment income, which reached £136,347. However. the valuation of its investment portfolio fell by a nel £(155,757) (4.20/0) due to changes in market values. of which £(152.439) is unrealised losses on valuation. The total amount recO￿ls¢d in the Statement of Comprehensive Income relating to investments is £(19.410) (£83.648 in 2021122). The College has assessed its delivery of funding contracts, and calculaled il has Met 2022123 perforn￿nCe targets for income (wiihin approved tolerdnces). Cash flow has been carefully managed during 2022123. with balances increasing by £241 k ovu the yfdr (including capital granls received of £357k from Department of Education which were unspent at the end of the 2022123 financial year). The College has not needcd to seek support from external Sou￿¢$. atul is free from borrowings. The financial objtttives set by the Governing Body and their achievement are set out below: Objectives Achieved? Cash days (including short terni investments) in excess of 25 Current ratio in excess of1.5 Reserves more than 2 months core costs Surplus for the year on core activities in ex¢¢ss of £20.000 15 % - 25 % of income to be non-governmental No more than 701J/o of income to be payroll related Generate cash infiow from operating ttctivilies Yes Yes Yes Yes The College has accumulated unre5trithed revenue reserves of £5,788,170 which includes £990.171 for the recognition of non-governrnent grants under the A￿OuntIng Standard FRS 102 and is therefore not available for distributio￿ but to offsei fitture depr￿lation Charges.

FIRCROFT COLLEGE OF ADULT EDUCATION Report of the Governillg Body (Continued) FtNANCLiL posrrioN (continued) Reserves Pollcy During ihe year the Gov¢rning Body have revi¢wed ils Reserves Policy. and have evaluated thos¢ reserves against best practice to cover restricted funds, non4listributable capital grants and essential infrastwcture for the continuance of essential education services for beneficiaries. These resetves equate to £2.8 A further eonlingency reserve of £l.Sm is considered appropriate to cover unforeseen circumstances including funding reductions I maintaining adequate working capital. The final £1.5m is considered available for ￿8e and has been designated lo support capital development (moving lo net zero) at £lm, and strategic development (5UPPOrting suslainabilily) at £0.5m. The deployment of these reserves will be balanced against the availability of cash funds lo sUp￿rt these developrnents, and the operational impacts of using investment assets. The College will review its level of reserves and ils policy on an annual basis. C¥pital base aud pl*Dned m8iDtenance The College has a long lease interest in the Bristol Road property which n]ns to 2055, which includes the responsibility for the maintenance of the buildings and grounds. The college operatc an armual maintenance cycle and has implemented a 10 year capital plan. This plan utilises approved extenlal fundin8 as well as internal fundcd aciivities which are key to achi¢ving the colleges sustainability targets for 2030. FEC benchmarks for mainlerwice expenditure were met. TreASUry policies and objectives Treasury management is the management of the College's cash flows, its bankirtg transactio￿$. the effective control of the risks associated with those activili¢s,' and the pursuit of optimum perfornMnce consistent with those risks. The College has a separdte treasury management policy in place, which has been updated and approved by Operdtions Committee to ensure ¢ompliance with HM Treasury requirements under Managing Public Money following the reclassification of FE Coll¢g¢s to the Central Govcrnment S¢clor. Under this policy any borrowingsloverdrafts by the College musl b¢ pr¢-approvcd by HM Treasury. Cash flows and liquldity The College has seen a net casb inflow in 2022123 of £240,501 (2021122 oultlow of £155.955). At 31° July 2023 the College had £1,121k of short tenn inveslmentslcash deposits with a further £3,698k of list¢d investments. The College has no ljorrowings. It manages ils surplus cash deposils to ensure the appropriate balance betw¢¢n interest generation and working capiial.

FIRcR0￿ COLLEGE OF ADULT EDUCATION Report of the Governlng Body (continued) FINANCIAL posrrioN (continued) Trnde union facility time Th¢Coll¢ge does meet the criteria for publishing inf0m￿tiOn under the Trade Union{Facility Time Publication Requirements) Regulalions 2017 on facility lime anangements for trade union officials at the college. Payment performance The tate Payinent of Commerctal Debts {Inlerest) Act 1998. in the absence of agreement to the contrary. requires organisations to pay invoices 30 days after either; the custorner gets the invoice, or the delivery of the goods or service (if this is later). During the accounting period l August 2022 to 31 July 2023. the College paid 99 per cent of its invoices within 30 days. The College incurred no interest ¢harge5 in respect of late pa￿ne￿I for thi5 period. RESOURCES Th¢ College has Vario￿ resourcas that it can deploy in pursuit of its strategic objective5. Tangible resources include the buildmgs at the Bristol RoAd site. which are on a long lease (to 2055) from Boum¢ville Village Trust. Financial- The College has £5.8m of nei assets, witha tumover of £2.6nL People - The College employs 55 people (¢Xpr￿ LS average headcount basi5). of whom 16 are teacl)ing staff. Reputation - The Coll¢g¢ h&$ a very g(￿ rcputalion locally and nationally. Maintsining a quality bl￿d is essential for the College's succes5 * attrading students and building extemal relationships. Thccollege is currentlyd¢veloping ils latest and 5uc¢essor strategic plan which will run from2025126 onward. PRINCIPAL IUSKS AND UNCERTAINTIES Governors agreed a new Risk Management Policy in Mawh 2018. The College Risk Register continues lo follow this methodology. The key risk elements at ihe Clo￿ of 2022123 are: The ncgative effttts of continuing flatline AEB fillMlin& especially against growing infiationary pressures, cneT8y and c05t of living increases. Continuing uncertainty relating to re5idcnlial uplifts made by fimdcrs (WMCA and ESFA) Continuing uncertainty relating to broader funding arrangements further to th¢ DtE's funding and accountability consultation. Staff tumov¢r. retention and ￿[U11MenÉ. wilh growing difficuliies to attract and rctain staff Staff wellness and wellbeing following Covi(L Impa￿1n8 upon delivery 10

FIRcR0￿ COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) STAKEHOLDER RELATIONSHtps tn lin¢ with other colleges and with universities. Fircroft Colleg¢ has many stakeholders. These include: Students Funding Bodies including as our main funder IILe West Midlands Combined Authority (WMCA) and the ESFA Staff. Governors and volunteers The voluntary sector- locally, regionally and nationally- including as ¢mploy¢rs Community groups- locally and regionally Other FE and HE institulions particularly the oiher Long-T¢rni Residential Colleges and other Institutes of Adult t£arning and regional GFE colleges through the CWM partnership (Colleges west Midlands) Bimlingham and other LEAS through the Adult and Community Learning Alliance (ACLA) FE Colleges through Colleges West Midlands Employers dIr￿llY related lo our curriculum offer. The College recognises the importance of thcse relationships and engages in rcgular communication with them through Social media, regular meetings and by participating in relevant networks. joint funding bids, projects and sp¢cial inilialives. Since l# August 2021 th¢ majority (97 % ) of the Colleg¢'s AEB (including Conununity Learning) income comes directly through the Wesi Midlands Combin¢d Authority. The College is a member of the Colleges Wesl Midlands Group (CWM) and the West Midlands Adult and Community Learning Alliance (ACLA). The WMCA engages regularly with l)oth groups on AEB strategy and planning. The College also engages at a contrdct level regularly with WMCA staff. The College uses the WMCA AEB priorities in its curriculum planning. In May 2022 the College publtshed its accountability agreement which outlines the priorities of the ollege in meeting in the Warwickshire and West Midlands Local Skills Improvement Plan (LSIP). Staff and stsdent involvement Employee engagement, consultation and comtnunicalion is a fundamental part of the current College objectives. Am Employee Voice Tcam is in place, and m¢¢ls regularly, that is made up of 2 representatives from each area of the college. 2 employee representatives, the union ￿preSentatiVe and HR. This forum is two way mechanism foremployees and management to collaborale on changes and projects that affect working life at the College. The College produ¢es a regular newsletter that aids ¢ommunication and increases engagement. Staff are invited to terndy briefings that cov¢r strat¢gy, news and issues. Each academic year two student governors arc elected to serve as m¢mb¢rs of the College's Govcrning Body, and they join two staff governors who are eleeted for a ihree year lemi. The College has a Student Engag¢ment Strdtegy. Students are invited to give feedback to the College through learner satisfaction surveys. feedback forn￿ and regular focus groups and fora. This year ihe College has also established a group of student champions. In March 2022 ihe College was re•accredited with the Matrix kile mark in ￿latiOn io ihe Infom￿tion. Advice and Guidance provided to students and staff. In December 2021 the College was re-awarded with Gold status by Investors in People.

FIRCROFf COLLEGE OF ADULT EDUCATION Report of the GoverniDg Body (continu￿) STAKEHOLDER RELATIONSHtPS (continued) Equality, Dlversity and ID¢lusloD The College is committed to ensuring Equality, Diversity and Inclusion for all who learn, work and us¢ the College's facilities. We rcspect and value positively differences and will not lolerale any fomi of behaviour or activity that discriminates withoul proper justification on the grounds of gender, race, disabiliiy, religious or culiural belief, sexual orientation. marital slalus, family r¢5ponsibilili4 age, unrelated criminal conviction$ and economic status. The College publishes its Equalily, Div¢rsily and Inclusion policy on its websilc. The College holds focus groups involving learners and staff who discuss solutions for issues affecting the College and are involved in making recomrnendations and setting targets. The College's key strategic plan responds to both S￿la1 and climate Jusiice challenges. Updates are ￿gUlarlY rwort¢d lo Ih¢ Governing Body. Fircroft Colle8e is a Disability Confident employer and has commtlted to the principles and objectives of the Disability Confident scheme. The College considers all employment applicalions from disabled pcrsons,.bearin8 in mind the aptitudes of the individuals concerned. and guarantees an irtierview to any disabled applicant who m¢¢ls the esseniial criieria for the post. Where an existing employee becomes disabled. every effort Is made to ensure thai ¢mploym¢nt with the College continues. The College's policy 15 to provide trdining, eareer development and opportunities for promotion that are, as far as possible. identical lo those for other members of staff. This is also reflected in the college policies as they are updated. The College is passionate about providing staff and governors (as nced¢d) with outstanding lrnining coverin8 issues of equality. diversity and inclusion. Dlsablllty $t•tement Th¢ College seeks to achieve the obj¢ctlV¢S Set down in the Disability Discrimination Act 1995 as amcnded by the Sp￿la1 Edueation Needs and Disability Acts 2001 and 2005 and Equality Act 2010. The College tskes account of disabiliiy access in all rolling maintenance plan5 and new build initiatives. There ar¢ several wund floor bedrooms adapted lo enable students with disabilities lo engage in residential learntng. Ac¢ess in and around the building has also been improved. b) Any appeals against a dccision not lo offer a place lo a studeni are dealt with under the complaints policy and pr(Kedure. These are monitored for protected characteristics. The College has an ongoing pro8ramrne of staff development to ensure thai 811 staff are aware of the issues and needs of p￿pIC with learning difficulties andlor disabilities. Staff members are available to advise and make a￿angeMentS for any student or member of staff who require any additional support including thc purchase of speeialisl equipment or support slaty. d) The College has a rnnge of speciali￿ equipment including assistiv¢ technology available for use by students and staff. Arrangements for counselling and welfare services can be made available to Studenis. Staff have access to a 24 hour employee assistance programme. 12

FIRCROFf COLLEGE OF ADULT EDUCATION Report of the Governing Body (continued) Events After the Reporting Period The College highlighted its intentioTh to move to an incorporated structure in the 2021122 Annuat Financial Statem¢nts. This was achieved at 00.01am on I" August 2023 through an agreed transfer of all staff, assets liabilities and all operdtions and functions of the College. This did not change the College structur¢, fvnding or charitable purpose. The new company, Fircroft College of Adult Education is limiled by guardntee, and regislered in England, number 14776636. and registered with Charity Commission as number 1204069. It is currently planned that this current charitable Iwst will be dissolved during 2023124. Di$¢losure of inforniatlott to auditor5 The governors who held office at the dale of approval of this report confinn that, so far as they are each aware. th¢r¢ is no relevant audit inforn]alion of whi¢h the College's auditors are unaware. and each governor has taken all the steps that he or she ought to have taken lo be aware of any relevant audit inforniation and to establish that the College's auditors are aware of that infornution. Approved by order of the members of the Governing Body on 13 December 2023 and Si￿ed on Its behalf by". Prof G Layer Chair 13

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Cor rate Governance and Internal Control Corporate Govtrnince The lolLowing statement is provided to enable readers of the armual report and a￿OUnts of tFLe College to obtain a better understanding of ils govemance and legal structure. This statement Covers the period frorn l August 2022 10 31 July 2023 and up to the date of approval of the Annual Report and Financial Statements. The College endeavours to conduct ils business.. in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessncss. integrity. objcctivity. accounlabilily, openness, honesty and leadership),. in accordance with the guidance to colleges from the Association of Colleges in The Code of Good Govcrnancc for English Collcgcs ('Yhe Foundation Code'l,. and iii. having due regard lo the UK Corpordle Governance Code ('tthe Code") insofar as it is appliuble to the further education sector. Th¢ Coll¢ge is committed to exlubiling best pra¢ti¢¢ in all aspects of corpordte governance and in particular the College has adopted and complied with the Foundation Codc. We do not comply with the UK Corporate Governance Code. However, we have reported on our Corporate Governance arrangements by drawing upon best prdctice available. Including those aspects of th¢ UK Cotrx)rate Governance Code we consider to be relevant to the further education sector and best practice. In the opiDion of the Governing Body. th¢ College complies with the provisions of the Code in so far as they apply to the Further Education sector, and it has complied throughout thc ycar cnded 31 July 2023. The Governing Body recognises that, as a body enttusted with both public and private fijnds. it has a particular duty to observe the highest standards of corporate governance at all times. In carrying out its responsibilities, it tskes fi￿1 account of The Code of Good Governance for English Colleges issued by the Association of Colleges in March 2015. which it formally adopted in July 2015. As a registered Charity. the Governors. who are also the Trustees for the puryoses of the ch￿itIeS Act 2011. ¢onfm that they have had due regard for the Charity Commission's guidance on public benefit and that the requirsj statements appear elsewher¢ in these financial statements. 14

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Corporate Governance Y4nd IDtern•l Control (continuoa) The Governlng Body The governors who served on the Governing Body (GB) during the year and up to the date of signatyre of this report are set out below.. Name Date of Appointment Term of offict Date of re$lgntlo CieEOry of Attettdan¢t membersbip Cornmittee s Served GB Otker Prof Geoff Layer Nov-21 Indepa￿ni 616 818 Chair of G MSM Lenehan (Principal F￿￿trIcI0 616 819 Mar-16 &0ss Mar-15 I￿1¢￿￿1 515 414 Cbair of R MrT Pettitt Re-apFointcd Jul-18 Jul-21 Darling (Vice- Jul-17 Illdependeni 516 Reappointed Jul-20 Chair of Since Marc 2020) Partntnde r Siogh Gar¢ha 31 Jul 2023 Jul-19, Jun-22 Reapp 3 Years I￿enden[ 216 213 Robert Masunga Sallgeets Soni Jatr21 3 Y¢ars tthleperxknt 315 3n AandG Jan-21 3 Years 114 EandR JaD-21 3 YeaTS 7 Oct 22 T￿lePetht Claire Mutchell Staff Nov-20 3 Years 316 sss Josh Brickley Eluned Jones Carole Parkes Saiqa Andleeb Mar-22 416 Jun-22 3 Years Sthff SSS and Chair of E Sep21 3 Years lThlepetht 316 616 E and Chair of SSS 3 Years lTrJepetht 316 416 Sep21 3 Years lThJepetht 516 316 O and SSS 15

FtRCROFf COLLEGE OF ADULT EDUCATION Statement of CorporAte Governance Internal Control (continued) The Governing Body (continued) Name Djtt of Terrn of Dste of Appointment office resignation Citegory of Altendance membershlp Commlttees Served GB Other Ben Shore Surrinder Bains Chris Kenny Artnas¢az zia Dickenso Mar-22 3 Years Independent 616 717 AandG Dec-22 3Yea G and SSS I Sept 23 lThdependent 014 Dec-22 3 Years lrtdependertt 414 212 Duraiion Student 8ovemor 26 May 2023 Dl￿tIOn 26 May Dec- 22 of course 2023 012 sss Dec-22 Maxine Cole 5tudertl governor 012 011 sss Commii(ee key A= Audii Committe¢ E = Edu¢alion Commill¢¢ G=Governance Commit¢e¢ O- Operattons Commiiiee R- Retnuneration Committee SSS- Siaff & Siudeni Services Committee Attendance information shows Govcrning Body atlendance and then Conunittee attendance during the period to 12ih July 2023 (last meeting of 202J2023). Ii is the Governing Body's responsibility lo bring indcpcndenl judgement to bear on issues of strategy. performance, resources and standards of conducl. The Governing Body is provided wilh regular and timely inforn)aiion on the overall financial perfonnance of th¢ College together with other information such as perforniance against fvnding targels, proposed capital expenditure, quality maiters and personnel relaied m2tt¢rs such as healih and safely and environmental issues. The Governing Body meets, as a mintmum, four times each year. The Governing Body conducts its business t1￿Ugh a number of commillees which are established each year. For 2022123 the following were in plAce,' Education Committee, Op￿atIOnS Commitlee. Staff and Studcnt Services Committee, Remuneration Conunittee, Audit Committee and Governance Conunittee. Full minutes of all meetings, except those deemed to be confidential by Ihe Governing Body, are available on application from the Clerk lo the Govcrning Body al.. Fircroft College. 1018 Bristol Road, Selly OaL BinninghaTh4 B29 6LH. The Clerk co the Governing Body maintains a register of financial and personal interests of the Governors. The register is available for inspection al the above address. All govemors are able to take kndependenl professional advice in furtherance of their duties at the College's expense and have access to the Clcrk lo the Governing Body, who is responsible to Ihe Goveming Body for ensuring that all applicable procedures and regulations are complied with. The appoinlmenl, evalualton and removal of the Clerk are matters for the Goveming Body as a whole. 16

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Corporate Governance and InternAI Control (continued) The Governing Body (continued) Forn￿1 agendas, papws and reports are supplied to governors in a timely manner, prior to Governing Body meetings. Briefing5 are also provided on an ad-hoc basis. The Governing Body ha5 a strong and indcpendent non-executive element and no individual or group dominates ils decision making process. The Governing Body considers that each of ils non-executive members is independent of management and frce from any business or other relationship which wuld materially inierfere with the exercise of (heir independent judgement. There is a clear division of responsibility in that the roles of the Chair of the Governing Body and Accounting Offi¢¢r are separate. Appointments ¢0 the Governing Body Any new appointments to the Governing B(Mly are a matter for the consideralion of the Governing Body as a whole. The Governing Body has a Governance committee. which is comprised of at least three governors and is responsible for the selection and nomination of any new member for the Governing Body'5 considcration. The Governing Body is responsible for ¢nsuring that appropriate trdining is provided as required. Members of the Governing Body arc now appointed for a term of office not exceeding 3 yws in the r￿St Insta￿ce. IJ Remuneration Comtnittee The Remuncration Committee's res￿￿]bl]LtIeS ar¢ to make recommendations to the Governing Body on the remuneration and benefits of the Accounting Officer and other key management personnel. Details of remuneration forthe year ended 31 July 2023 are set out in note 7 to the financial statements. Audit CotDtnittee The Audit Committee comprises three governors of the College (who exclude the Accounting Officer 8nd Chair) and an external mcmber. The Committee operates in accordance with written lenns of reference approved by lh¢ Governing Body. The Audit Committee meets on a tern￿y basis and provides a forum for reporting by the College's internal, rcgularity and fmancial statements auditors, who have access to the Committee for independent discussion. without the presence of College management. The Committee also receives and considers reports from the main FE fundirAg bodies as they affect ihe College's business. The College's intemal auditors review the systems of internal control, risk management controls and governance processcs in accordance with an agreed plan of inpul and rcport their findings lo management and the Audit Committee. Management is responsible for the implementation of audit recommendatkons, and intemal audit w)dertakes periodic follow up reviews lo ¢nsure such recommendations have been implemented. 17

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Corpor•te Gov¢rnAnee ind Internfrl Control (continued) 1.4 Audit Committee (continucd) The Audit Commiltee also advises the Governing Body on the appointment of internal. regularity and financial statement auditors and their remuncration for both audil and non-audit work as well as reporting annually to the Governing Body. Interllal Control Seope of responsibility The Governing Body is ultimately responsible for the College's system of intcrnal control and for reviewing its effectivencss. However, such a system is designed to manage rather than eliminate the risk of failure to achieve busincss objectives. and can provide only reasonablc and not absolute assurance against rnaterial misslal¢m¢nt or loss. Th¢ Governing Body has delegated the day-to-day responsibility to Ihe Principal, as Accounting O￿l¢Cr, for maintaining a sound sysiem of intemal control thai supports the a¢hi¢v¢ment of the College's policic5, aims and objectives, whilst safeguarding the public fiLnds and assets for which she is personally responsible, in accordance with the responsibiliiies assigned to her in the Financial Memorandutn between the College and the ESFA. She is also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control. The purpose of tbe system of internal control The system of internal control is d¢sign¢d to manage risk rather than to eltminate all risk of failure to achieve policies, aims and objectives- it can therefore only provide rcasonablc and not absolute assurdnce of effectiveness. The system of internal control is based on an ongoing process designed to identify and priorilis¢ the risks to Ehe achicvement of College policies, airns and objectives, lo evaluate the likelihood of those risks bcing realised and the impact should they be realised, and lo manage them e￿I¢l¢nI1y. effectively and economically. The system of internal control has been in place in Fircroft College for the year cnded 31 July 2023 and up to the datc of approval of the annual report and ac¢ounts. Capacity to handle rlsk The Governing Body has reviewed the key risks io which the College is exposed. togeiher with the operating. financial and compliance controls that have been implemented to mitigate those risks. The Governing Body is of the view that there is a fomial ongoing process for identifying, evaluating and rnanaging thc College's signifiunt risks that has been in place for the yw ended 31 July 2023 and up to the dale of approval of the annual rcport and accounts. This process is rcgularly reviewed by the Governing Body. The risk and control framework The systern of internal control is based on a frdmework of regular management inf0m￿tIOn, admtnistrative procedures including the segregaiion of dutkes, and a sysiem of delegation and accountability. In particular, il includes: 18

FIRCRoFf COLLEGE OF ADULT EDUCATION Statement of Corporate Governance alld Internal Control (continued) The rlsk and eolltrol fratnework (contiou¢d) comprehensive budgeting systems with an annual budget which is reviewed and agr¢¢d by the Goveming Body. regular reviews by the Governing Body ofperiodic and annual financial reports which indicate financial perforniance against forecasts. setting targets to rneasure financial and other perf0m￿nce. clearly defined capital investment control guidelines. the adoption of fomial project management disciplines where appropriate. FIr￿)fi College has an internal audit service, which operates in accordance with the requirements of the ESFA'5 Post-16 Aiidii Code ofPractice. The work of the internal audil service is infom)ed by an analysis of the ri5k5 to which the College is exposed, and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit plans are endorsed by the College's Governing Body on the recommendation of the Audit Committee. At minimum annually, the head of the internal audit (HIA) provides the Governing Body with a report on internal audit activity in the College. The report include5 the HIA'S independent opinion on the adequacy and effectivencss of the College's system of risk management, controls and govemance processes. Adoption of Recla55ifJcation Controls from 29th November 2022 Since FE colleges were classified io the central govemment sectorwith effect from 29 November 2022. the College has compleled a review. and implementcd relevant updates of its policies. procedures and approval proee5ses to ensure compliance with the revised atTangements and requirements issued by the Department for Education. 1.10 Review of Effectiveness As Acwunting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal ¢oDtrol. The Principal's review of th¢ effectiveness of the system of internal control is infomied by.. th¢ work of the inlemal auditors. the work of the executive managers within the College who have responsibility for the development and maintenance of the internal control framework. comments made by the College's financial statements auditors and the regularity reporting accountants in their management letter5 and other reports. The Accounling o￿l¢cr has been advised on the implications of the result of her review of the effectivencss of the system of internal control by the Audit Committee, which oversees the work of the internal auditor, risk committee and other sources of assurdnce. and a plan to address weaknesscs and ensure continuous improvement of the system is in place. The management team receives report5 setting out key perf0m￿n¢t and risk indicators, and considers possible control issues brought to their attention by early warning mcchanisms. which are embedded across the College. The management team and the Audit Comtnillee a150 receive regular reports from internal audit and other sour¢¢s of assurance. which include recommendations for improvement. The Audit Committee's role in this area is confined to a high level review of the arrangements for internal 19

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Coryorate Governante and Internal Control {continued) 1.10 Review of Effe¢¢ivelless (continued) control. The Governing Body's agenda includes a regular item for consideration of risk and control and recekve5 reports thereon from the management tcam and Audit Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its December 2023 meeting, the Governing Body carried out the annual assc&smenl for the year ended 31 July 2023 by considering documentatiOTL from the management team and internal audit, and taking account of events since 31 July 2023. Based on the advice of the Audit Commtttee and the Accounting Otficer, the Governing Body is of the opinionthal th¢ Colleg¢ has an adequal¢ and effective frarnework for govemance, risk management and control. and has fulfilled its statutory resEK)nsibility for'lheeffectiveandefficienl we ofresourees, the solvency ofilie irtffiliiiion and Ilie safe￿larding ofiheir ￿￿ets. 1.11 Corporntion performance The Corwrdtion carried out a Self￿sSess￿ent of its governance for the year ended 3 1st July 2023. Governor5 approved an Internal Asse&sment Action Plan for year2023124 at the mceting of Governing Body on I l October 2023. Governor5 undertake an induction process upon being appointsj by the Governing Body. This has involved conversattons with the Chair, Vice£hair. Principal. Vice-Princtpal, Head of Financc and Regulatory Compliance and the Clerk The content includcd the Coll¢g¢ Sirdtegy. trustee duties. governance priorities. CUTticuIum and cducation improvement plan and the Collcge's financial framework and position. Governor5 undcrt(bok training on safeguarding. Prevent, equality. diversity and Inclusio￿ and data protec(ion within the r￿st few nM)nths (this training is updated every 3 years). New governor5 also re¢eive an Induction Pack from the Clerk which Contains key dwuments. As well as the int¢mal induction ProC￿S governors bav¢ also a￿￿SSed regional induction events. The College subscTibes to the AoCIEducation andTrdiDing Foundaiion platform from where governor5 Can access modules as they consider nttessary. They also have access to Aoc briefings and webinars. The Clerk alerts govemor5 to trdining relevant to thcir role5 e.g. chairs of committccs, rcclassification, 5afeguardin& Important training and dcvelopment activities are undertaken during ￿m0)ittee meetings e.g. Audit Committee and Education Committee have had sessions. The Governing Body has participated in strategic sessions o Climate Change Action and Sustainability missio￿ vision. values and purp05C A curriculum pedagogy for th¢ fvture Towards net zero and i)ur reserves strategy. The Clerk has undertaken relevant internal and ¢xtLYnal training. This has included sessions aimed at governance professkonals provided by the Aoc, online Clerks network mcctings for the Midlands region, Ev¢rsheds Sutherland and CoTporate Governance Insiitute. Th¢ trdining has included sessions on reclassification and thc clerkingladministralion of companies. 20

FtRCRoFf COLLEGE OF ADULT EDUCATION Statement of Corporate Governanee and IllternAI Control (continued) 1.12 Going Con¢erD The activities of the College, together with the factors likely to affect its fijiure development and perfornwice are set out in the Operdting and Financial Review. The financi￿ position of the College, its eashfiow, liquidity and borrowings are described in the financial statem¢nls and accompanying noles. The Coll¢g¢ submilled a daailed financial forecast to the ESFA in July 2023. which provided clear analysis and Commentary on ihe immediate financial year5 2022123. 2023124 and 2024125, also that the Colleg¢ has appeared lo recruit well in ternis of students for the acad¢mi¢ year 23124, accordingly the Coll¢8e has a reasonable expeclation (hat il has ad¢quat¢ rc50ur¢¢s lo continu¢ in operdtional existence for the foreseeable ￿ture. Und¢r Cu￿ent plans (outlined in Events After The Reporting Period on page 13) the current charitable trust (Fircroft College Trust, Charity No. 510033) 1rdnsfe￿ed its activity into a new ¢ompany limita by guarantee for 2023124 financial year, and all assels, liabilities and activilies wdl ¢ontinu¢ in that new company. Subsequently the current Fircroft College Trust will be dissolved during 2023124 and will not be trading in capacity other than to effect the trdnsfer of assets lo Fircroft College of Adult Education (Company No 14776636. Charity Number 1204069). tn th¢se ircumstances th¢College has prepared th¢s¢ Financial Stalemenls on a basis other than going concern as it will Ttot exist for a period of12 months after the signing of these financial slatemenls. Approved by order of th¢ members of the Governing Body on 13 Decemb¢r 2023 atul signed on its behalf by: Prof G Layer Cbair M Lenehxn Accounting Officer 21

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Re ul4ri rie Ind Com liance As accountiThg officer I confmn that the corporation has had due regard to ihe framework of authorities governing regularity, priority and compliance. and the r¢quiretncnls of grant funding agreements and contracts with ESFA, and has considered its responsibility to notify ESFA of material irregularity, impropriety and non- compliance with those authorities and ternis and conditions of funding. I confirm on behalf of Éhe corporation that after due enquiry, and to the best of my knowledge, l am able to identify any material irregular or improper use of funds by the corporation, or material non-compliance with the framework of authoritics and the tcrms and conditions of funding under the corpordtion's grant funding agreements and contracts with ESFA, or any other public funder. This includes the clements outlined in thc "Dear accounting officer" Ictter of 29 November 2022 and ESFA'S bite size guides. I confirn] that no instances of material irregularily, impropriety* funding non-compliance, or non<omplian¢e with the framework of authorities have been discovered to dale. If any instances are identified after the date of this slatement. these will be notified to ESFA. M Leneh811 Accounting Officer Date: 13 December 2023 Statetnent of tbe Chair of governors On behalf of the corpot7t10￿ I confm that the accounting officer has discussed thcir statement of regularity. propriety and compliance with the Ix)ard and thai I am content that il is materially accuratc. Prof G Layer Chair Date.. 13 December 2023 22

FIRCROFf COLLEGE OF ADULT EDUCATION Statemenl of Res nsibilities of the GoverniD Bod Th¢ members of the Governing Body (who act as trustees for the charitable activities of the Collegc) are rquired io present audited fu)ancial statements for each financial year. The law applicable lo charities in England and the tern￿ and conditions of the corporation's grant ￿ndIng agreements and contracts with the Education and Skills Funding Agency (ESFA) and any other relevant funding bodies. the Governing Body of the College is required lo pr¢par¢ financial statements which give a true and fair view of the financial perfornwice and position of Ihe corporalion for the relevant period. cO￿rationS must also Prepare a strategic report which includes an operating and financial review for the year. The bases for the prepardtion of the fmancial statements and Strategic rqM)rt are the Sialemenl of Recomrnended Practice- Accounting for Further and Higher Education, ESFA'S College Accounts Direction and the UK'S Generdlly Accepted Accounting Practice. In preparing the financial statements. the cotporation is required io: Sel￿t suitable accounting t￿licIeS and apply them consistently ' rnak¢ judgement$ and cstimal¢s that are reasonable and prudent • slate whether applicable UK accounting standards have been followed, subject to any maierial depailires disclosed and explained ill the financial stalements ass&ss whether the corporation is a going concrn noling the key supporting assumptions. quaIificalions or mitigating actions, as appropriate (which must be consistent with other discloswes in the accounts and auditor's report) ' prq)are fllwicial statements on the going concern basis unless it is Énappropriate to assume that the Co4￿[alL0n will wntinue in operation The Governing Body is also required to prepare a strategic report, in accordance with paragraphs 3.23 to 3.27 of the FE and HE SORP. that describes what it is trying to do and how it is going about Lt, including infom￿110ll abo￿ the legal and administrdtive status of the College. The Governing Btyjy is responsible for keeping proper accounting records which disclose. with reasonable accurdcy at any timc, the ftnancial position of the corFKJralion and which enable it to ensure thai the financial slalements are prepared in a￿ordanCe with relevant legislation including the Further and Higher Education Act 1992 and Charities Act 2011, and relevant accounting standards. It is responsible for taking steps tbat are reasonably open to it to safeguard its assets and to prevent and detect fraud and other irregulaTities. The Governing Body is responsible for the maintenance and int¢grity of its websitels). the work Carried out by auditors does not involve considerdtion of these matters and. accordingly, auditors accept no responsibility for any changes that may hav¢ occurred to the financial statements since they were iniiially presented on the website. Legislation in the United Kingdom governing the prwtion and dissemination of fmancial ststements may differ from legislation in other jurisdictions. Members of the Governing Body are responsible for ensuring that expenditur¢ and income are appli￿ for the purposes inlended and that the financial transactions confomi lo the authorities ihat govern them. In additio￿ they are responsible for ensuring that ￿ndS from ESFA and any other public funds, are used only in 0￿rdance with ESFA'S grant fimding agr¢¢ments and contracts and any other condilions. Ihat may b¢ prescribed from time to time by ESFA, or any other public fundeT. including that any transactions entered into by the ¢orpordtion are within lh¢ d¢legated authorities set out in Ihe"Dear accounting otTicerf' letter of 29 November 2022 and ESFA'S bite size guides. M¢mbers of th¢ Gov¢rning Body must ensur¢ Ihat there are appropriate financial and management conirols in place to safeguard public and oiher funds and ensure they are used properly. tn additio￿ members of the corpordtion are resN>nsible for securing economic. effLcient 23

FIRCRoFf COLLEGE OF ADULT EDUCATION Siatement of Re ulari ,Pro rie and Com lilnee and effective management of the corporalion's resources and expenditure so that the benefits that should be derived from the application of public fimds from ESFA and othcr public bodics are not pul at risk. Approved by order of the members of the Governing Body on 13, December 2023 and si￿ed on its behalf by: Prof G Layer Chair of governors 24

FIRcR0￿ COLLEGE OF ADULT EDUCATION Inde endent Auditor's Re ort to the Governors of Fircroft Coll of Adult Education Opinion We have audited the financial stsiements of Fircroft College of Adult Education (the 'College') for the ye ended 31 July 2023 which comprise th¢ statement of cornprehensive income and expenditurc, the statement of clwiges in reserves, the balance shea. the statement of cash flow5 and the noles lo the accounts including the significant accounting policies. The financial reporting framework that has been applied in theÈr preparation is applicable law and United Kingdom A¢couniing Sthndard& including Financial Reporting Standard 102 'The Financial Reporting Standard appli¢abl¢ in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our op1nio￿ the financial statements: give a tNe and fair view of the state of the College's affairs as at 31 July 2023 and of its total comprehensive expenditur¢ for the year then ended. aThl have been properly prepared in accordance with United Kingdom Generally Ac¢¢pted Accounting Prdctice. Basis for OPiDiOll We conducted our audit in accordance with International Stsndards on ALEditing (UK) (ISAS (UK)) and applicable law. Our reswnsibilities under those standards are further described in the auditor's responsibilities for ihe audit of the fmancial sthiements section of our rqx)rL Wc are indepcndcnt of the College in accordance with the ethical rcquiremenls thai are relevant to our audii of the fmancial statemetits in tk UK. including the FRC'S Ethical standar￿ and we have fulfilled our other ethical responsibilities in accordance with these requirements. W¢ believe that th¢ audit evIder￿e we have obtai1￿ 15 sufficient and appropriate to provide a basis for our opiniotL Emphasis of matter- finanaal Statements prepared on a basis rfher going ¢on¢ern We draw attention to the statement rcgardin8 going corAcern in the accounting polici4 whith xndicatC5 that the members of theGoverning Body have prepared the fu]an¢iai ststements on a basis otherthan goingconcem basis. This is due to the activitie5. assets and liabilities of the College being trdnsferra to Fircroft College of Adult Education which is lÈmited by guarantee at 00.01 on 1st August 2023. Following an orderly transfer Fircroft College Trust will then close and b¢ dissolvoj. Our opinion is not modifieAI in respect of this matter. Other informatioD The other Infom￿tiOn Comprises the infomtion included in the annual reEX)rt other than the financial statements and our auditor's report thereon. The members of the Governing B(Mly are responsible for the other inforn)ation contained wtthin Ihe annual retrt)rt. Our opinion on the finan¢ial statements does not cover the other infonnatioll and except to the extent otherwise explicitly stated in our rew)rt. we do not express any forni of assurance conelusion there ()Jr responsibility is to read the other infornlation and. in doing 50, consider whether Ihe oih¢r inforn]ation is rnaterially inconsistcnt with ihe financial slatements or our knowledge obiained in th¢ course of the audit or otherwise appears io be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detennine whether tht5 ￿VeS rise lo a material misstatement in lh¢ finan¢ial statements themselves. If, based on the work we have perfonned, we ￿￿lUde thai ther¢ is a malerial misslaternent of this other 1nforn)atio￿ we are required to rcport ihat fact. W¢ have nothing lo report in this regard. 25

FIRCROFT COLLEGE OF ADULT EDUCATION Inde endent Auditor's Re ort lo the Governors of Fircroft Colle e of Adult Education continued Matters on which we are required to report by exception We have nothing to report in respect of thc following matters in relation lo which the Charitics Act 2011 or the P05t 16 Code of Practice issued by the Education and Skills Funding Agency requires us to report lo you if, in our opinion= the inforniation given in the Report of Ihe Govmiing Body is inconsistent in any material respect wilh the financial slatem¢nls; proper aecounting r￿ordS have noi been kept; the fLnancial statements are not in agreement with the accounting records and returns,. or all the infornmlion and explanations required for the audit were not received. Responsibilities of the Governing Body As ¢xplain¢d more fiilly in the statement of responsibilities of members of the Governing Body, the members of the Governing Body are responsible for the prcparalion of the financial statements and for being satisfied that they give a tru¢ and fair view, and for such internal conlrol as Ihc membcrs of the Governing Body determine is n￿eSSary lo enable the preparation of financial statements that are free from material misstalement, whether due lo fraud or emr. In preparing the fmancial 51atcments, the members of th¢ Governing Body are r￿pOnSIble for assessing the College s ability to continue as a going concern, disclosing, as applicable. matters related io going concern and using the going concem basi5 of accounting unless the members of the Governing Body either intend to liquidate the College or lo ceasc operdtions, or have no realistic aliernalive but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issuc an auditor's rq)ort that includes our opinion. Reasonable assurdnce is a high level of assurdnce. but is not a guarantee that an audit Conducted in accordance wilh ISAS (UK) will alway5 dctect a material misstatement when it exists. Misslalements Can arise frotn fraud or ctror and arc considered material if, individually or in the aggregate, they could reasonobly be expected to infiuence the economic decisions of users taken on thc basis of these flliancial statements. Itregularitics, including fraud, are instsn¢es of non-compliancc with laws and regulalions. We dcsign procedures in lin¢ with our responsibilittes, outlined above, to det¢¢t material misstatements in resPCCt of irregularities, including frdud. The extent lo whi¢h our pro¢edures are capablc of detecting irregulatities, including fraud is delailed below.. Our approach to identifying and assessing the risks of material misstatement in respe¢l of irregulariti¢s, including fraud and non•compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriatc compet¢nc¢, capabilities and skills to identify or recognise tLOll-compliance with applicable laws and regulations. we identified the laws and regulations applicable to the College through discussions with managemcnt, and from our knowledge and cxperiencc of the Sector. 26

FIRcR0￿ COLLEGE OF ADULT EDUCATION Inde eDdent Auditor'5 Re rt to the Governors of Fireroft Colle e of Adult Edueltio eontlllued Auditor's re5pon5ibi]itie5 for the audit of the financial statements (continued) we focuscd on specific laws and regulaiions which we ￿nsIdered may have a dirttt matuial effect on the rinarkcial statement5 or the operdlions of thecollcge, includingthe Further and Higher Edu￿tiOn Act1992. the Charities Act 2011. fimding agreements with the ESFA and associated fvnding rules. ESFA regulations. data protection legislation, anti-bribery. safeguarding. employmenL health and safety I¢￿SlatIOn. w¢ assessed th¢ extent of complianc¢ with the laws and regulatio￿ identificd above tlyough making enquiries of management and inspecting legal corrcsWndc￿ and identified laws and regulations were communicated wiihin the audil team regularly and the team r¢main¢d alert io in5tance5 of non•complia￿C throughoul the audit. We assessed the S￿eptibIlitY of the College's financial Sthlements to material misstatement. including obtaining an understanding of how fraud rnight (￿tsr. by: making enquiries of management as to where they considered there was susceptibility to frdud. their knowledgc of actual. suspected and alleged fraud" and considering the int¢mal controls in placc to mitigatc risks of fraud and non-¢omplianc¢ with laws and regulaiion5. To address the risk of fraud through management bias and override of wntrols. we: perfornied analytical procedures to idenlify any Un￿$ual or utvApttt￿ relationships" tested journal entries to identify unusual transactiotLS" and assessed whether judgements and assumplions made in ddermining the accounting e5timate5 set out in the accounting policies were indicative of potential bi tn response to the risk of irregularities and no￿￿C01npjiallCC with laws and regulalions. we designed procedure5 which included, but were not limited to.. agreeing financial Statement disclosuKs to underlying supporting docunmtstio reading th¢ minutes of Goveming Body m¢etin8s" enquiring of rnanagement as to actual and potential litigation and ¢lain￿. and reviewing any available correspondence with HMRC and the College's legal advisors. There are inherent limitations in our audit Procedur￿ described above. The more removed thai laws and regulatiotLS are from financial traDsactions. the less likely it is thai we would become aware of non-compliance. Auditing standards also limit the audit pr(Kedures required to identify non<ompliance with laws and regulations to enquiry of the members of the Governing Body and othtt management and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise due to frdud can be harder to detect than those that arise from error as they may involve dcliberate concealment or collusion. A further descriplion of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This de5CriPtion forn￿ part of our auditor's report. 27

FIRCRO￿ COLLEGE OF ADULT EDUCATION Inde ndent Auditor'$ Re rt to th¢ Governors of Fircroft COU e of Adult Education ¢ontjDued Use of our report This report is made solely to the College's memkn. as a IK)dy, in accordance with the College's Articles of Government. Our audit work has been undertaken so that we might stale lo the College's members those maltcr5 we are required to state to them in an auditovs rerM)rt and for no other purpose. To thc fullcst extcnt permitted by law, we do not accept or assume responsibility to anyone other than the College and the College's members as a body. for our audit worl for this report. or for the opinions we have formed. Buzzacott LLP Statutory Auditor 130 Wood Str¢¢t London EC2V 6DL Buzzaeott LLP is eligible to act as an audilor in tern￿ of section 1212 of the Companies Act 2006 Date.. 20 December 2023 28

FIRcR0￿ COLLEGE OF ADULT EDUCATION Reporting A¢counlaDt's Report on Regularity to the Governing Body of Fircroft College of Adult Education ("the Governing Body") and the Setretry of State for Education actlng through the EdutatloD IDd Skllls Fundin enc -the ESFA- In accordance with the tenns of our engagement letter dated 8November 2023 and fi￿her to the requirements and conditions of fijnding in Ihe ESFA'S 8TaN fijnding agreanfflts aod contracts, or those of any other public fund¢r, we have carried out an engagement to obtain limited assutance about whdhcr anythi.ng has come to our attention that would suggest, in all material resp￿1$. the expenditure disbyrsed and income received by Fircroft College of Adult Education during the period l August 2022 to 31 July 2023 hav¢ not been applied lo the purposes identified by Parliament and th¢ financial tratLgCtions do not ¢onforn] to th¢ authorili¢s which govffli Ih¢m. The framework that has been applied is set out in the Post-16 Audit Code of Practi¢¢ (the Cod¢) i5sucd by the ESFA and in any relevant condilions of fU￿ling concerning adult ejjucation notified by a relevant fvnder. Io line with this frameworK our work has specifically nol considered income r¢c¢ived from the main fijnding grants generated through the individualised Learner Record data returns. for which ihe ESFA has other assurance amn8emenls in plac¢. This report is mad¢ solely to the Governing B(Kly of Fircroft College of Adult Education and the ESFA in accordance with the lern)s of our engagemeni leiier. Our work has teen wid¢rtaken so that we might state to the Governing Body of Firuoft College of Adult Education and the ESFA tFLose malters we required to state in a report and for no other purpose. To the fullest extent pLYmitied by law. we do not accept. or assum responsibility to anyone other than the Governing Body of FiTcroft College of Adult Education and the ESFA for our worL for this re￿rt or for the Conclusi￿ we have f0nll￿. Respective r¢5PQU5ibiliti¢5 of Fircrnft Coll¢g¢ of Adult Education •ttd the rew)rting accountant Th¢ Governing Body of Fircroft College of Adult Education is responsible, und¢r the requirements of the Further & Higher Edueaiion Aci 1992, subsequent legislation and r¢l8t¢d regulations and guidance, for eTh5uring that expenditure disbursed. and income r￿e1Ve{L ar¢ appliejj for the purposes intended by Parliament. and the financial ttansaclions conforn] to the authorities that govern them. Our responsibilities for this engagement are establishal in the United Kingdom by OUT profession's ethical guidance and are to obtain limited assurdnce and rep)rt in accordance with our engagement letter and the requirements of the Code. We report to you whether anythmg has come to our att￿tIOn in carying out OUT wolk which suggests that in all material respects, ￿per￿llUre disbursed atsl income received. during the period l August 2022 to 31 July 2023 have not been applied to purposes inielld¢d by Parliament or that the fmancial transactions do not confornl to the authorities which ￿Vern ihem. Approach We conducted our engagement in accord￿￿ with the Code issud by th¢ ESFA. We p¢rfornied a limiloj assurance ￿gagement as defmed in that framework. The objective of a limited assurdnce engagement is to p¢rforn] such procedures as lo obtain inf0m￿tion and explanations in order to provide us with sufficienl appropriate cvidence to express a negaiive conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant mattets that might be identified in a reasonabl¢ assurance engagement. Accordingly we do not express a w)sitive opinion. Our engagement includes ¢xaminatioo on a test basi4 of evide￿¢ relevdnt to the regu]arity of the Gov¢rning Body's inwme and expenditure. 29

FIRCROFT COLLEGE OF ADULT EDUCATION Reporting A¢¢ouD¢aDt's Report on Regularity to the Governing Body of Fireroft College of Adult Education "the GoverniDg Bodyry and tbe Seeretary of state for EdllutioD aeting through Ibe DepartmeDt for Education heDe ar¢men¢" continued Appro*eh (continued) The work undertaken to drdw to (yur conclusion includes. An assessment of the risk of material irregularity atMI impropriety acro&s all of the College's activities. Further testing and review of the areas identified through Ihe risk assessment including enquiry, id¢nlifi¢aiion of control processes and examination of supporting evidcnce across all areas identified as well as additional verificaiion work where considered necessary,. and Considerdiion of evidence obtained ihrough the work detailed aEx)ve and the work completed as part of our fllkancial statements audil in order to supp)rt th¢ regularity conclusion. CoD¢IysioD Jn the ¢ours¢ of our worL nothing h85 colne to our attention which sugg¢sts ihal in all material respects. the expenditure disbursgj and income received during the period l August 2022 10 31 July 2023 has not been applied to pu￿OseS iThtend¢d by Parliament, and the fllwicial transadiorLS th tK)t conforni Lo the authorities that govern them. Buzzacort LLP Chartered A¢eountants 130 Wwd Stre London EC2V 6DL 20 December 2023 30

FIRcR0￿ COLLEGE OF ADULT EDUCATION St8tement of Com rehensive lD¢ome and Ex nditsre Note 2023 2022 Income Funding b(Kly grants 2a32,931 2,152.047 Tuition fees and education contracts 126,380 151,732 Oth¢r in¢ome 21,795 48,124 Investment income 136J47 132,190 Donations 10,000 10.000 Total Income 2,627,453 2.494.093 ExpeDditure Staff costs 1,719,488 1.528,166 Other operdiing expenses 704,189 655,928 Depr¢ci3tion io 137,552 155,789 Total Expenditure 2,561229 2,339,883 Surplus before other gains and losses 66,224 154,210 (Loss) l Gain on investments Net realised Net unrealised (3J18) (152,439) 1,416 (49,958) (Defitit) I Surplu5 before Tax (89.533) 105,668 Taxation Totil Comprehensive (Expenditure)/IDcome for the Year {89,533) 105.668 Repr￿nted by.. Restricted comprehensive income UT)restricted comprehensive (expenditure) {89,533) 105,668 (89.533) 105,668 31

FIRCROFT COLLEGE OF ADULT EDUCATION Colle e StAtement of Chan es in Reserves lllcome and Restricted Total Expenditure Reserves Reserves BAlance at I" August 2021 Sury)lu$ from Ihc income and expenditure account 105,668 105.668 Transfers between r¢slri¢ted and inwm¢ and expenditure reserves TotAI comprehenslve Income for the year 105.668 105.668 Balanee #t 31" July 2022 5.877,703 51,952 5.929,655 Balance at I" August 2022 Deficit from th¢ income and exp¢ndilurc accouni (89,533) <89,533) Transfers between restrict￿ and income and expenditure rcserves Total ¢omprthettslve expenditure for the year (89,533) (89,533) Balance at 31" July 2023 5,788,170 5,840 122 32

FIRCROFT COLLEGE OF ADULT EDUCATION Balance Sheet as At 31 Jul Note 2023 2022 Non-current Assets tnvestmenls Tangible fixed assets 3,698,(144 2,086,558 3.679.388 2.l76.670 10 Total fixed assets 5,784.602 5,856,058 Current assets Stock Trade and other receivables Short temi inveslmenis Cash al bank and in hand 3,970 108,651 156,713 904A62 4,362 175,228 348,411 555.855 12 13 Total current 85set5 1,233,896 1.083.856 Le55 . Creditor5- amounts falling due within one year 14 (188,205) (354.672) Net eurrenl assets 1,045.691 729,184 TotAI assets less current liabilities 6,830293 6,585,242 Creditors - amounts falling due after one year 15 {990,171) (655.587) NET ASSETS 5,840,122 5.929.655 Restricted reserves Unrestricted reserves Income and ¢xp¢nditur¢ ac¢ount 16 51.952 51,952 5,788,170 5.877,703 Total reserves 5,840,122 5,929,655 The f￿ancial statements on pages 31 to 51 were approved by the Govon(ng Body and authorised for issue on 13 December 2023 and were Si￿ed on behalf of the Governing Body by.. Prof G LAyer Chair M Lenehan Aecounting Officer 33

FIRCROFT COLLEGE OF ADULT EDUCATION Statement of Cash Flows Note 2023 2022 Cash floivs from opeTatinE activities (Deficit) for the year (89J33) 105,668 Adjustment for non-¢a5b items Dq)reciaiion Dccrca5e in slocks Decrease in debioTS Decrease in creditors due within one year Incrcase / (Decrease) in crajiiors du¢ after on¢ I37￿52 392 6A577 (162,967) 155.789 (1,050) {41,592) (586,839) 334584 (22,671) Adjustrllent for investing or fiD•D¢ial divities Nd invesimeni loss Investmeni income 164,033 (136J47) 48,300 (132,190) Net CA5b flow from optratittg actlvities 314 291 474.585 Cash flows from investing activities Inveslmenl incom¢ Disposal of non•curtent asset investments Payments made to acquire non-current asset investments Pa￿nellI5 made io acquire fixed assets 136,347 386J25 132,190 561.934 (545.522) (50,940) (318,496) (57,038) Net easb Ilow from investiDg activities [DcreaseJ(D￿t1sc) 73,790 318 590 IDcreasellDecrease) in csb and casb equivalents in th¢ year 17 240501 155.995 Cash and cash equivalents at beginning of the year 17 965,914 1,121,909 Cash and cash equivalents at ¢nd of the year 965,914 34

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts Ae¢ouDting polici Statement ofae¢ouniingpolieies The followin8 accounting EK)lieies have been applied consistently in dealing with items which are consider material in relalion 10 the financial staiemen Basis ofprepamtion Th￿C financial statements have been prepared in accordance with the Statement of Re¢onunended Practice: Aecouniing for Funher and Higher Education 2019 (Ihe 2019 FE HE SORP). the College Accounts Direction for 2022 to 2023 and in accordance with Financial Reporting Standard 102 - 'Th¢ Financial Reporting Standard applicable in the Unit¢d Kingdom and Republic of Jr¢land" (FRS 102). The College is a public benefit ￿tItY at has therefor¢ applied Ihe rel¢vani public benefit rg4uirements of FRS 102. The preparation of financial statement5 in compliance with FRS 102 requires the useof certain criti￿[ accounting estirnates. It also requires managerThent to exercis¢ judgement in applying thc College's accounting policies. B4sis ofoccounting The fllwieial ￿81¢m¢￿S are pr¢par¢d in ac￿rd￿￿ with the htstorical cost coThv¢ntion unless otherwise stated. Going concern The activtties of the College. logether with the factors likely to affect its fubjre development and performance are sel our in the Report of ihe Governing Body. The financial position of the Colle8¢. its cash flow. liquidtty and borrowin￿ are deseTibed in the Financial st8￿ments and accompanying Notes. The College has no loans or ovudtafts and the Coll¢g¢'s forec&sLs and financial projeLtions indi¢2te that none will be required for the fores¢eabl¢ firtu All the activities of the College logdher with all its assets and liabilities were transfetr&l to a newly incorporated company limited by guarantee at the end of the 2022123 fina￿781 year. which will continue all of the College operdtions. Following approval of these accounts Fircroft College Trust (Clwiry No 510033) will be dissolv￿. and consequently the CoUeg¢ has prepared these Fin￿la1 Staternenls on a basis other than going concern. There are no resuttani adjustments lo the financial results and p)sition rep)rt&l in these financial statements as a result of this. Recognition ofiAeome Revenue granifynding Governtnent revenue grants include funding body recurrent gra￿$ and other grants and are ac¢ounted for under th¢ accrual Thymlel as perniitted by FRS 102. Funding IM)dy recurreni grants are measured in line wtth best estin)ales for the period of what is ￿1vable and depend on the Particul￿ income stream involved. Any under or ov¢r achievement for the Adult Skills Budget is adjusted for and reflecied in th¢ level of recurrent grant recognised in th¢ income and exp¢Thliture account. The final grant income is norn￿llY determined with the conclusion of the year end reconciliation process with the fimdthg body following th¢ y¢ar end, and the results of any funding audits. 35

FIRcR0￿ COLLEGE OF ADULT EDUCATION Note$ to the Accounts (Continued) Accounting policies (continued) Reeognilion of income (conlinued) Revenue gronifunding (conlinued) GTants (including research grants) from non-government sources ar¢ recognised in income when the College is entitled to the income and perfom)ance related conditions have been met. Income received in advance of perfOrn￿nCe related conditions being mel is recognised as defe￿ed inconie within creditors on the balance sheet and released to income as the conditions are met. Capitol granifvnding Government upital grants are capilalised, held as deferred income and reco￿lSed in income over the expected useful life of the asset, under the accrual model as pennilled by FRS 102. Othcr, non-governmental, capital grdnts are recognised in income when th¢ College is entitled lo the fijnds subject to any perfom)ance relatcd conditions being met. Income received in advance of perf0m￿nCe related conditions being met is recognised as deferred income within creditors on the Balan¢e Sheet and released to income as conditions are met. Fee income tncome from tuition fees is recognised in the period for which it is received and includes all fees payable by Students or their sponsors. Inipestment income All income from short-terrn deposits or investments is credited to the income and expenditure account itL the period in which it is carncd on a receivable basis. Restricted re5ervaF WTherc income is received for purposes specified by the donor orby the t¢rn]s of appeal under which it was rai that incom¢ is included in the restricted reservcs. ADY use of the restsicted reserve is included as expenditure shown on Ihe face of the Statcmcnt of Comprehensive Income. 36

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to tbt Accounts (continued) Accounting pollcles (continu￿) A¢couKtiAgforposi*mploym¢n¢ benefits Post•employment benefits to tutors of the College are provided by the Teachers, Pension Scheme (TPS). The TPS is a defined benefit scheme, which is externally funded and contracted out of ihe State Second Pension. Teacherspension scheme The TPS is an unfunded s¢hem¢. Contributions to the TPS are calculated so gs lo spread the cost of pensions over employees. working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionabl¢ payroll. The contributions are delerniin¢d by qualified xtuari¢s on th¢ basis of quinquennial valuations using a prospectiv¢ benefil method. The TPS is a mulii-employer scheme and the College does not possess suificient infOrn￿tIOn to use defined benefit accounting. The TPS is therefore treated as a defined contribution plan and ihe contributions reW￿lsed as an expens¢ in the income statement in the periods during which services are rendered by employtts. No members of staff are members of the Local Government Pension Scheme (LGPS). Shortterm Employmeni benefits Short tern] employment benefits such as salaries and Compensated absences (holiday pay) are r¢c¢)gnised as an expense in the year in which th¢ employees render servic¢ lo the College. Any unused benefits are accrued and measured as ihe additional amount the College expects to pay as a result of the unused entitlement. Non-Curren¢ Assets- Tan8iblefi¥edassets Tangible fLxed assets are stated at cost less accumulated depreciation and accumulated impaimient losses. Certain iiems of [￿ed assds that had been revalued lo fair value on or prior io the date of transition to the 2015 FE HE SORP, are measured on lh¢ basis of d¢¢med cost, king th¢ revalued amount ai the date of that revaluation. Where parts of a fixed asset have different useful lives, they are a¢¢ount¢d for as sq)ardte items of fixed oss¢ts. The College's tx)licy is to carry all assets at historical cost. except the financial benefit of the l¢as¢ arrang¢m¢nts (scc below) which is carried at valuation but now d¢em¢d costs. nd and buildings The College doe5 not pay a market rate for the lease of the premises from which it operdtes. hence the College has ¢apitalised the benefit il re¢¢ives from this arrangement. Any improvements to the buildings are included at cost. Finance costs. which are directly attributable to the construction of land and buildings are capilalised as part of the cost of those assets. Equipmenl Equipment Costing less than £250 pcr individual item is [￿o￿lsed as expenditure in the period of acquisitton. All other equipmenl is capitalised at ¢osl. 37

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) Accounting policies (continued) Non-CurreniAssets- Tangiblefired assels (coniiryued) Depreciaiion Long leasehold land and buildings are depreciated on a strdight line basis over the remaining life of the lease. Capitalised equiptnenl 15 depreciated on a strdighi line basis over its useful economic life as follows: General equipment Computer equipment Furniture. fixtures and fitting5 CompuEer 50ftware 5 yeaTS 3 years 10 years 5 years A full Y￿.5 depreciation will b¢ calculated and applied in the financial year of acqui5ltion of any asset. A review for impairment of a fixed asset is Cartied out if events or changes in circumstances indicate that the canying amount of any fixeAJ asset may not be recoverable. Shortfalls bdween the ¢atrying value of fixed assets and their recoverable amounts arc recognised as impairments. lrnpairnient losses are recognised in thc Siatcment of Comprehensive Income and Expenditure. Subsequeni expendifure on enslingfixed assets Where significant expenditure is incuEred on tangible fixed assets after initial pur¢has¢ it is charged to the S￿lement of Comprehensive Income in the pcriod it is incurred, unless it increases ttJ¢ fvture benefits to the Coll¢ge, in whtch case it Is capitalised ond depreciat¢d on the relevant basis. LeasedaFsets Costs in respect of operating leases are charged on a straight-line basis over the lease lenn to the Ststem¢nt of Comprehensive Income and Expenditure. Any lease premiums or incentives relating to leases signed after 1st August 2014 are spread over the minimum lease terni. Investments Listed investments held as non-current assets and current asset investments, which may include listed investments, are stated at fair value, with movements recogniscd in Cotnprchensive Income. Investments comprising unquoted equity instruments are measured at fair valu4 estimated using a valuation technique. Stscks Stocks are slated al the lower of their cost (using the cost method) and net realisabl¢ value being selling price less costs to ¢ompl¢te and sell. Whcre necessary, provision is made for obsolel¢, slow moving and defeeiive items. Moinlenance ofpremises The College has a maintenance plan in line with ils obligations under its lease agreement with Bournville Village Trust. 38

FIRcR0￿ COLLEGE OF ADULT EDUCATION Notes to tbe Aecounts (continued) A¢counting policiu (continued) Financial lixbllities aDd equity Financial liabililles and equity are classified a¢cordinE to the substance of the fitwicial instrument's contractual obligations. rdth¢r than the financial itl4Tu￿t'S legal foTllL All loans, inv¢slm¢nls and sh¢)rt i¢rn deposils held by the Coll¢8¢ are classified as basic fmancial instruments in accordance wilh FRS 102. These instruments are initially T¢￿rded at the trdnsaction price less any transaction costs (historical cost). FRS 102 requires thai basic financial instrumenis are subsequently measured al amortised Cost, however the College has ealculatoa ihat ihe difference between the hisiorical cost and amortised cost basis is not material and so these financial i￿StrumentS slatcd on the balance sheet at ht$torical cost. Loans and inveslmenis that are payable or receivable within one year are not discounted. T¢Lration The College is considered to pass the tests set oul in Paragraph I Schedule 6 Finance Act 2010 and therefore il meets the definition ola charity for UKcorporation tax purFK)ses. Accordingly. theColl¢ge is polentially exempt from taxaiion in rw of income or capital gains received within categories covered by sections 478488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Ad 1992. to the extent thal such In￿Me or gain5 ate applied exclusively to charitabl¢ purpw. The Colle8e receives no similar exemption in resp￿ of Value Added Tax. Irrcwverable VAT on inputs IS included in the costs of su¢h inputs and added to the cost of tsn8ibl¢ fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nawre. Cash and cash ¢quivalents Cash includes in haniL and Sut￿ on short terni deEK￿lt$ with recognised banks. investment managers, building S￿l¢tieS and govenunent wuriti&& Deposits are repayabl¢ on demand if th¢y are in practice available within 24 hours without penalty. Cash equivalents are Short terni highly liquid investments that a￿ readily wnvertible to known amounts of cash with insignificant risk of change in value. An investment qualifies as a cash equival¢nt when il has maturity of 3 months or less from the date of aquisitiott. Provlsions andcontingeni lidbillrfes Provisions are recognised where the College has a present legal or constructive obligation as a result of a past event and it is probable that a transfer of economic benefit will be iequiral to settle the obligation and a reliable esiitnate can be nthde of the amount of the obligation. Where the effect olth¢time valueof llK)ney is material. the anx)unt expected tobe rquired to settle the obligation is r¢cognised at pr￿ent value using a pre4ax th"sCOiUIt rate. The unwinding of tk discount is recognisoj as a fuJanc¢ cost in the statement of comprehensive incom¢ in the peri￿ il arises. 39

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the AceouDts (continued) Accounting policies (continued) A contingent liability arises from a past event that gives the College a possible obligation whose existence will only be confirnied by the occurr¢nc¢ or otherwise of uncertain future event5 not wholly witkn'n the control of the College. Contingent liabilities also arise in cir¢umstances wherc a provision would othcrwise be made bul either it is Thot probable that an outflow of resOU￿¢S will be required orthe amount of the obligation cannot be measured reliably. Contingent liabilities are not recognised in the balance sheel but are in the notes to the financial statements. Judgements in applying aecountingpolicies ond key sources ofestim4tion uncertainty In pr￿arIng these financial statements, management have made the following judgments.. Deterniine wheth￿ leases entered into by the College eitheras a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by Icase basis. Determin¢ whether there are indicators of impainnent of the group's tangible assets. Factors taken into consideration in reaching such a decision includc the economic viability and expecied future financial perlortnance of the asset and where it is a component of a larger cash_generdting unit, the viability and expected future perforn]ance of that unil. Other key sources ofgstimalion uncertainty TangtblefLYed asseis The total figure for Tangible Fixed Ass¢ts includes £1,281,900 wEuch is the value. deemed cost, ascribed to the fllwicial benefit of the long ledsehold properties transferred to Fircroft College by professional valuers in 2009 and 2010. Tangible fixed assets are d¢pre¢iat¢d over their usefvl liv¢s taking into account residual values, where appropriaie. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and rnaintenance programmes are taken into account. Residual valuc asscssments consider issues such as future market Conditions. the remaining lifc of the asset and projected disposal values. As noted above thc long leasehold pmperty is depreciated over the remaining leas¢ lenn. 40

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) l Funding Body Grants 2023 2022 Recutrent grants ESFA delivery ESFA student suptM)rt fimds West Midlands Combined Authority delivery Specific grants 65.260 105,595 2.095.192 75,368 134.084 1,886.631 Teachers Pension Scheme contributory grant Release of gov¢rnmcnl capital grants 44213 22,671 33,294 22,670 Total 2J32,931 2,152.047 2 Tuition Fees and Education Contracts 2023 2022 Advanced level course f¢es for learners aged over 24 Tuition fees Education contrdcts 48J52 14,612 63,416 35.760 9,480 106,492 Total 126J80 151,732 3 Other Ineome 2023 2022 ResÉdencie5. catering and conferences Miscellaneous income 13.154 8,641 29,267 18,857 Total 21,795 48,124 41

FIRCROFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) 4 Investment Intome 2023 2022 Other investment income Other interesl re¢eivable 133.791 1556 132.086 104 Total 136J47 132,190 5 DonatioDS 2023 Unrtstrirted Restricted 2022 College College Donation for upkeep of the gardens iO.IKK) 10.o(H) 10.000 Total lo.o( 10,000 10,000 6 Staff Costs The averdge number of persons (including key management personnel) employed by the College during the year. on an average headcount basis. was: 2023 2022 Teaching stsff Non-teachitig sthff 16 39 17 39 55 56 stsff eosts for the alK)ve persons 2023 2022 Wages and salaries Sociat sccurity costs Other pension costs lJ48,154 125,204 170J04 1.231,211 113,720 144.105 Payroll sub totsl Conttacted out stsfFmg servic 1,643,662 75,826 1,489.036 35.826 1.719.488 1,524,862 594 2.710 Fundamental restructuring wsts- Conirnctual Non contrdciual Tot215taff eosts 1,719.488 1,528,166 42

FIRCRoFf COLLEGE OF ADULT EDUCATION Notes to the Aceounts (continued) 6 Staff Costs {continued} Key maDgen￿llt personnel Key maDagemenl p￿sonnel are ihose persons having authority and resp)nsibility for planning, directing and controlling the activities of the College and are represenlaj by the Principal and the Vice Principal and the Governing Body. The Governing Body works to an pr(e&s of reviewing the rernuneration of the senior post holdets ba￿1 on review against wholecollege perfornwice measures. as previously defined by governors and used for college wide pay reviews. and r¢levant benchmarking. The Remuneration Committee rtteives rcwrts di￿tlY from HR Manager (who perforn)s Ihis role on behalf of the Committee). The R¢mun¢ralion Committee ¢valuates the whole colleg¢ pcrf0rnw￿¢ measures and reviews benchmarking data from other IAL'S. where availabl¢ and the AOC. then agrees recommendations lo be made to the full Governing Body for any changes in remun¢rdtion. The principles of fairn￿$, independenc< justification and transparency are delivered through the agreed procuJur¢ and rep(Aling Pr￿ess. 7 Emoluments of Key MI￿gement personlleL Atcounting Offi¢¢r ald otber higher paid staff 2023 2022 Number of key management PttSODnel including the ACcoU￿1ng oiricer was: The number of key manag¢m¢nt personnel and other staff who received annual emolument5, excluding ernployer contributions to national Insu￿ and pettsions but including benefits in kind aiKsve £60,OIXJ was: Key management personnel Other staff 2013 2022 No. 2023 No. 2022 £60,001 to £65.0(K) p.a. £65,001 to £70,000 p... £105.00110 £1 l O.(M)O p.a. 43

FIRcR0￿ COLLEGE OF ADULT EDUCATION Notes to the Accounts (Continued) 7 Emoluments of Key management personnel, Accounting OtTicer and other higher paid stsff (conlinued) Key mallagement personncl emoluments are made up as follows.. 2023 2022 Salaries Social security costs 17&519 22,329 170,698 21.770 198,848 41,800 192.468 40,113 Pension contributions Total emolumeDts 240,648 232,582 Th￿¢ were no amounts due lo key management p¢rsonn¢l that were waived in the year, nor any salary sacrifi¢¢ arrdngements in place. The above compensation includes an￿Unts paid to the Principal and Chief Executive who is the accounting officer and who is also lh¢ highest paid member of staff. Their pay and remuneration is as follows.. 2023 2022 Salaries Pension contributions 109,150 25,838 106.070 24,964 134,988 13l.034 The pension contributions in respect of the Accounting Officer and senior posi-holders are in respect of employer's contributions to the Teachers. Pension Scheme or College scheme as appropriatc. Thcse are all paid at the same rate as for all other Members olth¢ Teachers, Pension Scheme. The Governors of the College. other than the Accounting Officer and staff members, did not receive any payment from the institution other than the reimbursement of trdvel and subslstence expenses incurred in ihe course ol their duties. The College does not have any overseas activities. Rel*tiollship of Principal pay and remuneratioll expressed as a multiple 2023 2022 Principal's basic salary as a muliiple of the median of all staff Principal and CEO'S total r¢muneratioTh as a multiple of the median of all staff

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Accounts {continued) 8 Other operating expenses 2023 2022 Teaching costs Non-leaching costs Premises costs 69,774 475,503 158,912 46,000 481,290 128,638 TotAI 704,189 655.928 The College has a contractual obligation to maintain the butldings it l¢ases from Bourneville Village Trust and consequently has a planned maintenance prOgr￿e for these building5. More infornution can be found in the Report of the Governing Body. Capital and planned tnaint¢nanc4 on page 9. 2023 2022 Other operating expenses include: Audiior's remuneration.. - Financial statement5 audit - Other services provided by th¢ fu￿￿la1 statements auditor5 - Internal audiior5' remuneration Hire of land and buildings under opernting l¢as¢s 15,9fA) 11,610 14,112 149 12,360 16,548 14,112 149 9 Tas2tion The Governors do not believe the College to b¢ liable for any income tax arising out of its activities during either 45

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Aeeounts (continued) 10 Tangible fixed Issets tand and buildings long Equipment leasehold and fiwniture Total Cost or valuAtion At l August 2022 Addilions Disposals 3,638,703 919 (3.500) 701.068 50,021 (2.522) 4J39,771 50,940 (6,022) At 31 Jul) 2023 3,636,122 748J67 4J84,689 Depreciatio At l August 2022 Cbarge for ihe year Eliminated in respect of disposals 1,580,978 66.859 582.123 70,093 (2,522) 2.163,101 137.552 (2,522) Al 31 Juty 2023 1,647,837 650,294 2.298,131 Net book value at 31 July 2023 1.988,285 98273 2,086,558 Net book valu¢ at 31 July 2022 2.057.725 118,945 2.176,670 I I Non-turrent lllvestments 2023 2022 Balance at l August 2022 Additions at cost Disposals at book value (proceeds £389.707. realised loss £3.318) Net (losses) on revaluation at 31 July 2023 3,617,740 545,522 (393,025) {157J33) 3.909.478 318.496 (560.518) (49,716) Market valu¢ At 31 July 2023 3 612 904 3.617,740 Cash held by investment managers 85,140 61,648 Balance at 31 Juty 2023 3,698,044 3,679.388 Represented by.. Fixed interest stocks {listed) Equities and unli trusts (listed) Overseas (listed) Cash balances 677.488 1.491,OOS 1.445,020 84,531 621,857 1,691,269 1.304,613 61.649 Total Total cost of listed investmtllts 3,679.388 2,625.448 2.826,747

FIRCROFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) 12 Debtor5 2023 2022 Amounts falling due within one year. Trade debtors Prepayments and accNed income 69,342 105.886 108,651 Total 108,651 175,228 2023 2022 13 Current Investments Short terni detrt)sits 156,713 348.411 156.713 348,411 Deposits are held with investment manag¢TS in securities. and availableJ¢onv¢rtible to cash at short notice 14 Creditors: Amounts Falling Due within One Year 2023 2022 Trade creditors Other creditors Other taxation and SLKial security A¢¢ruals Deferred income- Gov¢mment Capital Amounts owed io the ESFA and WMCA 36,665 46.709 69,850 62,992 31,693 87,467 22,670 80.000 75,036 29,795 Total 188,205 354,672 47

FIRCROFf COLLEGE OF ADULT EDUCATION Notes to the Accounts (continued) IS Creditors: Amounts Falling Due after One Year 2023 2022 Defe￿ed income- Government Capital grants 990,171 655,587 Tot741 990,171 655,587 16 Restrieted Reserves 2023 2022 Centenary Appeal Siudeni Hardship Work with ex4)ffender5 30,280 30,280 8,444 13.228 13,228 Total 51,952 51,952 17 Cash and cash equivalents and analysis of cbaDg¢s in net debt 1st August 2022 CAS Flows 31st July 2023 Cash al bank and in hand Cash held in short temi investments Cash held by invcstment managers 555,855 348,411 61,648 408.707 (191,698) 23.492 964,562 156,713 85,141 Net Funds 965.914 240,501 1,206,416 48

FIRCROFf COLLEGE OF ADULT EDUCATION Notes to the Actount5 {cootinuat) 18 Lease obligatfions At 31 Juty the College had minimum lease pa)￿ts under nonrycancellable operating leases as follows.. Future minimum lease payments due 2023 2022 Land and buildings Not later than one year Later than on¢ year and n(* laler than fiv¢ years Later than fiv¢ yeats 149 596 3,977 149 596 4,126 4,722 4.871 Other Not later ihan one year Latcr than one ycar arLd not later than five yeaTS 2,620 2218 7,934 2.015 4,838 9,948 Totsl lease payments due 9,560 14,819 19 Post Balxnct Sheet Events The College highlighted its iniention to move to an incotwrated structurc in the 2021122 Annual Financial Statemeots. This was achieved at 00.Olatn on 1° Augiisl 2023 through an agreed traLsfcr of all staff. assets liabitities and all operntions and functions of the College. This did not change the College structure, funding or charitable purpose. The ncw company. Fitcroft College of Adult EdU￿tIOn ts limiledby guardntee. and registered in England, number 14776636, and registersj with Chariiy Commission as number 1204069. It is currently planned that this current charithble tnjst will be dissolved during 2023124. 20 Related party transaction5 a) Funding Bodies Transaclions with the ESFA are detailed in not&5 l and 14. b) Covernors The total expense5 paid to or on behalf of the Governor5 during the year was £504 in re5peci of I governors (2022.. £940 in respect of 3 governors). This reprcsents technology. travel and conference cosls incurred in attending Governor meetings and events in their otTicial capacity. 49

FIRCROFT COLLEGE OF ADULT EDUCATION Notes to the Actount5 (continued) No Governor has r￿e1ved any remuneration or waived pa￿entS from Ihe College during the year (2022: none). 21 Pension and 5imilAr obligalions The College's employees belong to two principal pension schemes. the Teachers Po￿lon Scheme England and Wales ('TPS') for academic slaff and a group pension plan for non-academic staff. The group pension plan is adminisieroj by The People's Pension. The TPS scheme is a defined benefit scheme and the group pension plan l5 a dcfined contribution scheme. The College pays employer contributions at a rate 23.68 /.. The pet]sion cosis are assessed in accordancc with the advi¢¢ of independent qualifi¢d actuaries. Prior 10 31 July 2023, the lale￿ actuarial valuation of the TPS. related to the period ended 31 March 2016. A furthcr valuation of the TPS scheme. relating to the period ¢t]ded 31 March 2020 was publish￿ in October 2023. Total pension cost for the year 2023 2022 T￿cherS. Pension Scheme" employer Contri￿tiOnS paid Group Pe￿iOn Plan: employcr contributions ￿ld 107,714 61￿92 87,059 57,045 Total pensioD Cost for the year 170J06 144,104 There We￿ outstanding contributioDs of £8.219 at 31 July 2023 (2022 - £20.216). The employer's contribution rate for Pwples Pe￿iOn wa5 80/0 dwing the yedr. The employer's contribution rate for Teachers Pension was 23.68 % during the year. TeAchers' PeDsion Scheme The Teacher5, Pcnsion Scheme (rps) is a statutory. contribulory. defined benefil scheme. governed byih¢ Teacher5. PeThsion Scheme Regulations 2014. These regulations apply to teachers in schools. colleges and other educational establishments. Membership is automatic for teachers and lecturas at eligible institutions. Teachers and lecturers are able to opt out of the TPS.

FIRCROFf COLLEGE OF ADULT EDUCATION Note5 to the Aeeounts (continued) 21 Pension Ind similar obllgatlons (continued) The TPS is an unfundol ￿hem¢ and members contribute on a 'pay as you go, basis - these contributions. along with thos¢ made by employers. are creditejj to the Exchequer under arrangemenls gov¢rn¢d by the above Ad. R¢tircm¢nl and other pernsion benefits are paid by public funds provided by Parliament. Under the definitions set out in FRS 102 (28.11). the TPS is a mulii-employer pension plan. The College is unable to identify it5 share of the underlying assets and liabilities of the plan. Accordingly. the College has taken advanlage of the ￿eMptIon in FRS 102 and has accounted for its contributions to the scheme as if il wer¢ a defined-conlribulion plan. The College has set out above the information available on th¢ plan and the implications for the College in ternjs of the anticipated contribution rates. Th¢ valuation of the TPS is catried out in line with regulations made under the Public Service Pension Aci 2013. Valuations credit the ieachers. pension account with a real rdte of return assuming fiJnds inv¢stuJ in notional investtncnls that produce that real rate of return. The actuarial valuatton of the TPS which appli￿ during the year ended 31 July 2023 was carried out as at 31 Ma￿h 2016. Th¢ valuation reported total scheme liabilities (pensions cutrently in payinent and the estimated cost of future benefits) for service to the effe￿1ve date of £218 billion. and notional assets (estimateAI fijture contributions together with the notional investments held at the valuation date) of £198 billion giving a notiODal past service deficit of £22 billion. As a r¢sult of th¢ Valuatio￿ new employer contribution rdte5 wcre set at 23.680/0 of pensionable pay from September 2019 onwards (compared to 16.480/0 during 2018119). DfE paid a teacher pension employer contribution grdnt of £44.213 (2021122 £33294) to ￿Ver the ad(htionaL wsts during the 2022-23 acadernic year. A fjjll copy of the valuation report and supp)rting d(￿n￿￿tIOn can be found on th¢ Teachers, Pension Scheme website at the following I￿atIO htt s:Ilwww.leachers ensions.co.uk14medialdocumentslmemberldocumentslnews-itemslteachers- scheme-actuarial-valuation-2016 ension- The latest aCtU￿la1 TPS valuation r¢sult4 as at 31 March 2020. were rel￿ed in October 2023. Th¢ valuation result is due to be irnplcmenled from l April 2024. from this date employer contribution rntes will In￿$¢ to 28.68 / (incluthng a 0.080/• adminisirntion l¢vy). The perLsion costs paid to TPS in the year amowited to £107.714 (2022- £87.059 ). 51