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$lgn*tlo C*ieEOry 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 nonnsible 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