Charity registration number 1113612
Company registration number 05462874 (England and Wales)
OPEN AWARDS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
OPEN AWARDS
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mrs N J Mailey - Chair
Dr G B Laing
Mr A J Bevin
Ms G A Mason
Mr D A E C Tilley
Mr K Gordon
Dr A Stott
Mr B J Jordan
Dr H van Zalinge
Ms J Armitage
(Appointed 22 June 2023)
Mr M Bennett
(Appointed 22 June 2023)
Secretary
Mrs A Till
Chief Executive
Ms H Akehurst
Charity number
1113612
Company number
05462874
Registered office
17 De Havilland Drive
Estuary Commerce Park
Speke
Liverpool
L24 8RN
Auditor
DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
Bankers
National Westminster Bank
Solicitors
Brabners Chaffe Street
Investment advisors
Quilter Cheviot
OPEN AWARDS
CONTENTS
Page
Trustees' report
1 - 8
Statement of trustees' responsibilities
9
Independent auditor's report
10 - 12
Statement of financial activities
13
Balance sheet
14
Statement of cash flows
15
Notes to the financial statements
16 - 30
OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT)
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 31 July 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

 

The Objects of the Charity are exclusively charitable and are to advance the education of the public and in particular by:

 

 

 

 

Open Awards seeks to do this by working with local and national government; colleges, schools, academies, employers, private training providers, End Point Assessment Organisations and voluntary sector organisations to provide qualifications, acknowledged training courses and End Point Assessment, all of which have the potential to lead to enhanced employment opportunities.

 

Success for Open Awards is determined by the number of organisations we work with, the number of apprentices we ensure achieve meaningful outcomes, the number of learners and the qualifications we register. In addition, we capture learner information on the difference our qualifications and where applicable, bursaries make to their learner journey. This is measured monthly and high level information is contained within this report.

 

Our significant activities within the period are detailed within the Activities and Achievements section.

 

 

Mission Statement

 

Our mission is to ‘Change Lives Through Learning’.

 

Our Values

 

Excellence: To exceed standards in all we do, inspire excellence in our staff, centres and learners, and deliver a personalised customer service that surpasses expectations.

 

Respect: To foster a culture of respect and inclusiveness, being receptive to each other and customers, and acting with integrity.

 

Innovation: To listen, learn, discover and develop; to respond effectively to and invest in our staff, centres and learners.

 

Aspiration: We strive to be visionary and influential.

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

Public Benefit

 

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing Open Awards aims and objectives; and in considering future activities.

 

Our Bursary fund allows us to tackle barriers to achievement within learning and this year we were delighted to fund online resources designed to help individuals build personal resilience and address mental health concerns. This has proved popular with our providers, several of whom have used the resources within their curriculum. We thank Transform Lives Company who partnered with us on this initiative.

 

In particular, we seek to promote knowledge and raise standards in education, employment, learning and skills through our accreditation of qualifications and courses. Additionally, our work on Functional Skills, specific high level license to practice qualifications and End Point Assessment has allowed us to set standards against formal examinations.

 

All our Activities and achievements are measured against our Charitable Objects and Values to ensure that we are true to our mission and that we accurately measure our success and demonstrate our public benefit. Trustees keep up to date with guidance issued by the Charity Commission, particularly on public benefit and conducted a full review against the revised Charity Governance Code in June 2021. A review of our public benefit took place in June 2022.

 

Open Awards does not have regular volunteers and this year has continued our previous offer of University Intern placements. We continue to support National Careers Week and staff continue in trustee and governorship roles within the wider community.

Achievements and performance

 

This academic year has been challenging as the education and skills sectors continued to recover from Covid related disruption to working, continuing changes to the education sector and a growth in mental health concerns for all ages as the UK also adapted to significant cost of living concerns.

 

Open Awards registered 36,977 learners within the year and 11,094 learners were certificated within this period achieving full qualifications or specific units. It should be noted that Extraordinary Awarding powers were removed this year as assessment and examinations moved back to 2019 structures. 106 apprentices underwent their End Point Assessment with us.

 

Improvements to how we measure customer satisfaction continued within the year and events continued through increased use of online webinars and support. Meetings with providers by the Chief Executive and members of the Senior Management Team continued and it is pleasing to note that customer satisfaction rates with our training continued to remain high as the training programme continued to evolve. Open Awards continued to provide additional support and webinars throughout the year as well as additional training and resources for online learning, assessment and invigilation.

 

We are particularly proud of the difference our Bursary scheme makes to support Open Awards learners and apprentices to access qualifications and address additional barriers continued. The sessions delivered, within this period will continue into the next period and allow our providers to embed the sessions within their curriculum for the next academic year.

 

Functional Skills performance was strong over this period as Open Awards continued to provide online assessment and remote invigilation services with training for organisations using their own invigilators. Over 14,870 learners achieved Functional Skills qualifications over the period across a wide range of providers. Open Awards continued to work with Future Qualifications and VTCT to continue development of our Functional Skills papers and resources.

 

Open Awards engagement with policy decisions at a government and at a regulatory level continued within year across Department for Education departments as Open Awards continued to represent our providers, learners and apprentices to ensure their voices are heard.

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

Open Awards has 542 recognised Providers, however not all of these register learners each period and we work closely with all Providers to understand their business needs and funding positions. This presented a particular challenge during the year due to cost of living pressures against a backdrop of increasing needs. Open Awards recognised 58 new Centres within the period and activity continued strongest with Construction and Pharmacy qualifications, our Skills for Learning and Employment suite and Functional Skills. We worked with 11 new training providers to deliver End-point assessment services.

 

Learner registrations were 36,977, an increase of over 1,000 from the previous financial year and mainly due to our diverse Functional Skills offer. Changes in funding for Further Education Colleges and the voluntary sector continued to have an impact and we await the scale of policy changes on Level 2 and Level 3 reforms during the next few financial years.

 

Qualification development and Validity processes continue to be reviewed to ensure they provide real employment prospects and meet learner demand. Particular emphasis was given to our Centre Assessment Standards Scrutiny (CASS) of Ofqual regulated provision and this was supported by Ofqual seminars and thematic reviews within the year. This is supported by our ongoing investment in our labour market intelligence system and guidance from the Business Development Committee.

 

We continue to have a national presence attending a variety of online events and virtual meetings to ensure we remain in touch with our providers needs and also are aware of current and future developments coming from regulators, funding agencies and national policy.

We regularly receive and publish news stories about the positive effect our qualifications have, especially with those hard to reach learners or those who have not had a good experience of learning. Our centres find that Open Awards qualifications allow for the flexibility of learning needed to help many disadvantaged learners to succeed.

 

As an awarding organisation based in Speke, Liverpool, Open Awards is extremely proud to work with the local community to support education and training across the Liverpool City Region. To further support our local community, Open Awards offered a certification scheme for the Eurovision Song Contest 2023. This was aimed at both volunteers and staff working across the city to support the event. The scheme was designed to demonstrate our appreciation to the dedication of everybody working hard across the city to ensure visitors to Liverpool had the best time celebrating this momentous occasion taking place in our hometown! The scheme was free for all participants and was set up to enable both individual nominations, and group nominations from employers.

 

In total, Open Awards issued 209 certificates. This included the Pullman Hotel and Radisson Red Hotels nomination all their staff who worked at the respective hotels over the event.

 

Open Awards continued to maintain our low risk rating with Ofqual and QAA. Within the period Open Awards gained recognition by Qualifications in Wales for our Pharmacy qualifications and look forward to working with them on their reform agenda over the next period.

 

During the financial period each Provider received support through Quality Assurance meetings and on-line support with additional meetings with their Business Development Managers. These are supported by online training and standardisation events.

 

A number of Open Awards Trustee will retire due to their length of service in June 2024 and plans have begun to thank them for their service and recruit new Trustees. Two Trustees resigned in year, Peter Taaffe due to his retirement and Counsellor Nick Small who returned to Liverpool City Council Cabinet. We thank them for their wisdom and guidance.

 

Open Awards finalised the purchase of Maxam Training Limited within the period to enable the charity to further support organisations and individuals. Investment has been made in terms of human resources from Open Awards and into new systems and processes. It is planned that Maxam will generate a surplus each year that can be returned to Open Awards.

 

Fundraising Activities

Open Awards does not undertake any fundraising activities.

 

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 4 -

Investment Performance

 

Open Awards has an Investment Policy, which was reviewed in the last period. The Investment Manager changed to Quilter Cheviot after a tendering exercise in year. The current investment objective for the portfolio is to maintain capital and the management strategy is designated as medium risk. The portfolio performance over the 12 months to 30 June 2023 was +0.5% (2022: -4%) which was a good performance given the economic situation. Recognised and unrecognised losses for the year were £50,524 (2022: £87,721) with £62,730 (2022: £17,049) income generated. It is recognised there may still be volatility with investments due to the ongoing challenges of the pandemic but as the portfolio is for long term investment this is not a significant concern at this time.

Financial review

 

The Statement of Financial Activities is on page 13. The charity’s income is derived from charges to providers of its courses and qualifications, such as learner registration fees and an annual centre recognition fee to cover quality assurance and verification of award of credit. The main areas of provision are Access to Higher Education Diplomas, regulated qualifications and quality endorsed courses; and our End Point Assessment services. Open Awards recognised 58 new centres over a broad spectrum including FE Colleges, schools, Offender Learning providers, private training providers and employers.

 

Over the period Open Awards generated income of £2,443,042 which was 22% lower than the previous period’s figure of £3,127,892 for the year ended 31 July 2022 but above the forecast of £2,176,145. Open Awards strategically planned in year to use the growth in our reserves over the Covid pandemic to invest in our ICT capability and platforms as well as investment to develop qualifications in Wales and our End-point assessment services. Prices for 2022-23 saw a small increase but continue to remain competitive in the current market.

 

Resources expended were £2,627,248 in comparison to £2,425,691 for year ended 31 July 2022. This is an 8% increase on the previous period due to investment in our ICT capability and End-point assessment services as we review our business critical systems. There were continued savings on utilities and staff travel costs due to revised ways of working due to the pandemic. Net operating expenditure was £184,206 against a revised forecast of £343,555. After losses on investment there was a total deficit of £234,730.

Unrestricted Funds

 

During the period, the charitable company’s net assets decreased in value from £4,693,035 to £4,458,305. This level of reserves continues to be considered by the Trustees to be necessary to generate income, which, along with other income earned each year, enables the Charity to maintain financial independence. It is anticipated that despite continued investment Open Awards will return to ‘break even’ by the end of the next financial period.

 

£4,800 was awarded through our Bursary scheme making a total of £127,657 awarded to date. Trustees have maintained their support for the scheme and it will be reviewed in November 2023.

 

Reserves policy

 

Reserves are available to be spent at the discretion of the Trustees and the charity has developed its reserves policy to maintain continuity of its operations and safeguard its charitable purposes, in the event of a significant decrease in income.

 

In particular reserves are held for the following reasons:

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 5 -

As at 31 July 2023, Open Award’s total reserves stood at £4,458,305. After making allowance for designated funds of £1,792,503, including the carrying amount of functional tangible and intangible assets and investment in Maxam Training Limited of £923,252, reserves available to satisfy the policy requirements above stood at £2,665,802.

 

Open Awards Trustees are satisfied the existing amount of reserves allows it to fulfil all its obligations shown above and the existing Policy is reviewed annually to ensure the sustainability of the organisation is safeguarded.

 

The designated bursary fund is not a legal or restrictive commitment and can be undesignated by the Trustees at any time. However, it refers to an amount set aside year on year to assist learners financially, that may otherwise be prevented from accessing training or further education. This fund is generated from dividend income earned from our investment portfolio. Open Awards has awarded bursaries of £127,657 to date. As there were accumulated funds prior to the launch of the scheme there is still a balance of £15,450 to meet the ongoing commitment from Trustees and this is due to be reviewed in November 2023.

 

The Auditors and Trustees are happy that there are no uncertainties about Open Awards continuing as a going concern.

Principal Risks and Uncertainties

 

The risk management strategy developed by the Board consists of:

 

 

 

 

This was last reviewed by the Board on 22nd June 2023 and the review was carried out in accordance with Charities Commission guidance ‘Charities and Risk Management’. This was a comprehensive review.

 

At the time of review the significant change was the investment from reserves into developing new products and services and investment into our ICT platforms. The overall level of risk is currently considered to be medium. Trustees have reviewed this and are satisfied that appropriate operational control systems are in place, although they will continue to monitor on a termly basis.

The principal risks are considered to be:

 

 

 

 

 

Open Awards continues to be seen as ‘low risk’ by our regulators and works hard to maintain this status.

 

Open Awards continues to seek to grow our customer base and to diversify in the products and services we provide, whilst remaining true to our mission and charitable aims. This includes diversifying our offer including developing our End Point Assessment services and investing in Essential Digital Skills. Our continued full cost recovery programme has been successful and we continue to make savings in our expenditure where they do not compromise our integrity and quality. The overall level of risk is however considered to be medium.

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
Plans for Future

 

Open Awards will continue to regard regulated qualifications and Access to HE Diplomas as our ‘core’ business. However, we will continue to seek diversification opportunities that deliver additional forms of funding to the organisation. Open Awards has continued to develop End Point Assessment services within the year. We have invested in staff and systems to ensure this develops during the next financial year.

 

Maintaining full cost recovery and seeking efficiencies where possible will also continue to be a priority as we seek to remain in surplus for the next period. However, we will need to balance this with a need for a small reorganisation to continue to develop our services for providers. It is accepted therefore that it is likely Open Awards will achieve a ‘break even’ position in the next financial year. Open Awards plans to continue our investment begun in the previous period in our business critical systems and processes to ensure that we continue to offer a centre centric service.

Structure, governance and management

 

Open Awards is a company limited by guarantee without share capital governed by its memorandum and articles of association. It is a registered charity number 1113612 and company number 05462874.

 

Open Awards is an Awarding Organisation and Access Validating Agency operating across England and Wales. It is regulated by the Office of Quality and Exams Regulator (OFQUAL), Qualifications Wales (QW) and the Quality Assurance Agency for Higher Education (QAA).

The Charity’s Board of Trustees are also its Directors who are elected by Annual General Meeting of the members of the Charity. Casual vacancies are filled, as required, by the Board of Trustees in accordance with the Charity’s Articles of Association. Members of the Board of Trustees who served during the year are listed below.

 

Mrs N J Mailey - Chair
Dr G B Laing
Mr A J Bevin
Ms G A Mason
Mr D A E C Tilley
Mr P H Taaffe
(Resigned 3 November 2022)
Mrs K Grant
(Resigned 22 June 2023)
Mr K Gordon
Mr N Small
(Resigned 24 May 2023)
Dr A Stott
Mr B J Jordan
Dr H van Zalinge
Ms J Armitage
(Appointed 22 June 2023)
Mr M Bennett
(Appointed 22 June 2023)
OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -

The Board of Trustees meet termly to monitor the charity’s activities and performance, to determine strategy and to attend to all other matters of governance.

 

In addition the Board of Trustees have the following committees:

 

The Search Committee meets as required to determine the specification for Trustee and Senior Management recruitment.

 

The Access to Higher Education Committee meets termly to undertake detailed scrutiny of all matters relating to the organisation’s regulatory and standards responsibilities for Access to Higher Education provision. The committee has delegated powers to approve certain processes and recommend to the Board of Trustees the adoption of policies and reports.

 

The Business Development Committee has undergone a process of restructure and termly meetings will resume in 2023 to undertake scrutiny of the validity of our Ofqual/QW regulated qualifications, determine future strategic demand and review proposals for planned products and services.

The Bursary Committee decides the allocation of Open Awards bursaries.

 

Open Awards aims to maintain a diverse mix of skills and experience within the Board of Trustees that supports the governance and management of the charity. There is a balance between representation from the Higher Education and Further Education sectors and individuals with particular skills or experience. The induction procedure for new Trustees includes distribution of background information, access to all records and attendance at an organisational induction session.

Trustees receive ongoing training during their tenure with specialist training on Governance, Safeguarding and Financial Management for non-financial Trustees provided for Trustees as well as development sessions on specialist areas of Open Awards business. In addition Trustees are invited to attend a wide range of events and seminars, including on-line training to ensure that they are continually developed in their roles.

 

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations the Chief Executive has delegated authority, for operational matters including finance and employment.

 

Open Awards Trustees have responsibility for setting the pay and remuneration of the charity’s key personnel and this is done on an annual basis, including a formal cost of living review. Salaries are benchmarked with other Awarding Organisations and across the Further Education sector.

Employee Engagement

 

Open Awards communicates with our employees regularly, usually through monthly team meetings and full staff meetings. We have a Health and Wellbeing group that promotes healthy lifestyles including mental health awareness. Open Awards staff has access to a dedicated mental health advice and counselling helpline. Through one of our partners, The Mentoring School we were able to make their Wellbeing Suite available for all employees. During the year all employees received support through a Relaxation and Meditation programme designed to help them manage their own stress and mental health issues.

 

Since March 2020 we have used MS Teams for more informal organisational conversations and updates as well as sharing learning opportunities and additional mental health support.

 

Open Awards has very clear Mission, Vision and Values that are understood by all employees, displayed throughout the office, included in our Induction for new employees and demonstrated using the annual appraisal system.

Relationship with Related Parties

 

Maxam Training Ltd is a wholly owned subsidiary of Open Awards

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
Auditor

 

DSG have agreed to offer themselves for re-election and a resolution proposing their re-appointment, at a remuneration to be determined by the Board of Trustees, will be placed before the Annual General Meeting.

Disclosure of information to auditor

 

Trustees have confirmed on the date of approval of these financial statements, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. They have taken the steps that they ought to take as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. The Trustees declare that they have approved the Trustee’s Report above.

The trustees' report was approved by the Board of Trustees.

Mrs N J Mailey - Chair
Trustee
2 November 2023
OPEN AWARDS
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 JULY 2023
- 9 -

The trustees, who are also the directors of Open Awards for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

OPEN AWARDS
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OPEN AWARDS
- 10 -

Opinion

We have audited the financial statements of Open Awards (the ‘charitable company’) for the year ended 31 July 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 July 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

OPEN AWARDS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPEN AWARDS
- 11 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit ; or

-

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

OPEN AWARDS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPEN AWARDS
- 12 -
Capability of the audit in detecting irregularities, including fraud

Based on our discussions with the charity’s management and the Trustees, we identified that the following laws and regulations are significant to the entity:

 

 

 

These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jean Ellis BA FCA CTA (Senior Statutory Auditor)
for and on behalf of DSG
2 November 2023
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
OPEN AWARDS
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
2
73,393
3,000
76,393
-
13,509
13,509
Charitable activities
3
2,280,677
-
2,280,677
3,091,872
-
3,091,872
Investments
4
85,972
-
85,972
22,511
-
22,511
Total income
2,440,042
3,000
2,443,042
3,114,383
13,509
3,127,892
Expenditure on:
Raising funds
5
266
-
266
12,734
-
12,734
Charitable activities
6
2,623,982
3,000
2,626,982
2,399,448
13,509
2,412,957
Total expenditure
2,624,248
3,000
2,627,248
2,412,182
13,509
2,425,691
Net gains/(losses) on investments
10
(50,524)
-
(50,524)
(87,721)
-
(87,721)
Net movement in funds
(234,730)
-
(234,730)
614,480
-
614,480
Fund balances at 1 August 2022
4,693,035
-
4,693,035
4,078,555
-
4,078,555
Fund balances at 31 July 2023
4,458,305
-
4,458,305
4,693,035
-
4,693,035

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
OPEN AWARDS
BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
5,880
5,880
Tangible assets
13
205,704
212,204
Investments
14
2,952,874
2,229,379
3,164,458
2,447,463
Current assets
Debtors
15
586,775
580,189
Cash at bank and in hand
1,260,580
2,129,354
1,847,355
2,709,543
Creditors: amounts falling due within one year
17
(478,508)
(463,971)
Net current assets
1,368,847
2,245,572
Total assets less current liabilities
4,533,305
4,693,035
Creditors: amounts falling due after more than one year
18
(75,000)
-
Net assets
4,458,305
4,693,035
Income funds
Unrestricted funds
Designated funds
21
1,792,503
1,446,871
General unrestricted funds
2,665,802
3,246,164
4,458,305
4,693,035
4,458,305
4,693,035
The financial statements were approved by the Trustees on 2 November 2023
Mrs N J Mailey - Chair
Trustee
Company registration number 05462874
OPEN AWARDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(173,087)
701,488
Investing activities
Purchase of tangible fixed assets
(15,743)
(8,793)
Purchase of subsidiaries
(711,667)
-
Purchase of other investments
(8,600)
(2,974,447)
Proceeds from disposal of other investments
9,399
2,754,800
Investment income received
85,972
22,511
Net cash used in investing activities
(640,639)
(205,929)
Financing activities
Payment of obligations under finance leases
(1,296)
(2,832)
Net cash used in financing activities
(1,296)
(2,832)
Net (decrease)/increase in cash and cash equivalents
(815,022)
492,727
Cash and cash equivalents at beginning of year
2,129,599
1,636,872
Cash and cash equivalents at end of year
1,314,577
2,129,599
Relating to:
Cash at bank and in hand
1,260,580
2,129,354
Short term deposits included in current asset investments
53,997
245
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 16 -
1
Accounting policies
Charity information

Open Awards is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 De Havilland Drive, Estuary Commerce Park, Speke, Liverpool, L24 8RN.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company's memorandum of articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets. The principal accounting policies adopted are set out below.

The financial statements do not incorporate the results, assets and liabilities of the charity’s wholly owned subsidiary, Maxam Training Limited which was acquired during the period. Consolidated accounts have not been prepared as these would not be materially different from the single entity financial statements as presented.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4
Income
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -

Incoming resources from charitable activities relate to the academic year or years ending in the accounting period. Centre recognition income is recognised when a centre is formally approved to offer Open Awards courses and qualifications.

 

Learner registration income is recognised when a learner is registered on a course. There is no separate certification income. Where a course ends in the following accounting period the cost of moderation is covered by the annual fee for that year or additional quality assurance charges are applied at that time.

 

Bank interest and income from listed investments are recognised as investment income in the period it relates to.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Resources expended are recognised when the charity becomes obliged to settle the liability arising and include irrecoverable VAT.

 

Each resource expended is allocated to or apportioned between the headings of charitable expenditure according to the function it relates to, namely direct charitable activities, support activities or governance.

 

The support costs are those costs, which are necessary to deliver a charitable activity, but do not produce or constitute the output of the charitable activity. They include the rent and running costs of the charity's premises.

 

Governance costs are those costs associated with the governance arrangements of the charity, which affects the general running of the charity. They normally include external audit and legal advice for trustees, along with any other costs associated with strategic, as opposed to day-to-day management, of the charity's activities.

 

Whenever the resource expended relates to more than one of these three functions an apportionment is made on a reasonable or justifiable basis.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website and database
3 years straight line
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings
equally over 40 years
Fixtures, fittings & equipment
15 years straight line
Computer equipment
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Assets under £1,000 are not capitalised. They are expensed in the year of purchase

1.8
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charitable company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

 

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

The charity operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Donations and legacies
Unrestricted
Restricted
Total
Restricted
funds
funds
funds
2023
2023
2023
2022
£
£
£
£
Donations and gifts
73,393
-
73,393
13,509

Funding received

-
3,000
3,000
-
73,393
3,000
76,393
13,509
Donations and gifts
Kickstart
-
-
-
13,509
Distribution from subsidiary
73,393
-
73,393
-
73,393
-
73,393
13,509
3
Charitable activities
2023
2022
£
£

Fees from learner registration, awards and accreditation of courses

2,280,677
3,091,872
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 21 -
4
Investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Income from listed investments
62,730
17,049
Interest receivable
23,242
5,462
85,972
22,511
5
Raising funds
2023
2022
£
£
Investment management
266
12,734
266
12,734
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
6
Charitable activities
2023
2022
£
£
Staff costs
1,863,377
1,688,138
Depreciation and impairment
22,243
19,244

Printing, postage and stationery

50,196
49,864

Telephone

11,636
14,651

Travelling

6,760
4,460

Staff expenses

6,958
8,394

Qualification development

110,092
65,045

Staff development, training and conferences

17,086
39,462

ICT Systems and maintenance

223,554
190,972

Subscriptions

37,393
26,661

Hire of photocopier

1,786
1,944

Training, hospitality and room hire

2,025
1,121

External verification and quality assurance

182,817
185,233

Bursary fund

4,800
2,000
2,540,723
2,297,189
Share of support costs (see note 7)
78,597
72,472
Share of governance costs (see note 7)
7,662
43,296
2,626,982
2,412,957
Analysis by fund
Unrestricted funds
2,623,982
Restricted funds
3,000
2,626,982
For the year ended 31 July 2022
Unrestricted funds
2,399,448
Restricted funds
13,509
2,412,957
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 23 -
7
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Office costs
78,597
-
78,597
72,472
-
72,472
Audit fees
-
6,871
6,871
-
8,605
8,605

Legal and professional

-
-
-
-
34,123
34,123

Other governance costs

-
791
791
-
568
568
78,597
7,662
86,259
72,472
43,296
115,768
Analysed between
Charitable activities
78,597
7,662
86,259
72,472
43,296
115,768
8
Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but 6 (2022: 5).of them were reimbursed a total of £696 in expenses (2022: £568).

9
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Academic and administrative staff
57
50
Employment costs
2023
2022
£
£
Wages and salaries
1,607,680
1,469,875
Social security costs
161,293
140,827
Other pension costs
94,404
77,436
1,863,377
1,688,138
The number of employees whose annual remuneration was more than £60,000 is as follows:
2023
2022
Number
Number
£80,001 to £90,000
1
1

Contributions totalling £4,869 (2022: £4,474) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
10
Net gains/(losses) on investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Revaluation of investments
(50,524)
20,189
Gain/(loss) on sale of investments
-
(107,910)
(50,524)
(87,721)
11
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12
Intangible fixed assets
Website and database
£
Cost
At 1 August 2022 and 31 July 2023
26,472
Amortisation and impairment
At 1 August 2022 and 31 July 2023
20,592
Carrying amount
At 31 July 2023
5,880
At 31 July 2022
5,880
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
13
Tangible fixed assets
Land and buildings
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 August 2022
1,006,015
241,219
75,844
1,323,078
Additions
-
-
15,743
15,743
Disposals
-
-
(27,274)
(27,274)
At 31 July 2023
1,006,015
241,219
64,313
1,311,547
Depreciation and impairment
At 1 August 2022
859,033
183,273
68,568
1,110,874
Depreciation charged in the year
5,867
10,680
5,696
22,243
Eliminated in respect of disposals
-
-
(27,274)
(27,274)
At 31 July 2023
864,900
193,953
46,990
1,105,843
Carrying amount
At 31 July 2023
141,115
47,266
17,323
205,704
At 31 July 2022
146,982
57,946
7,276
212,204

 

14
Fixed asset investments
Listed investments

Long term savings accounts

Other investments
Total
£
£
Cost or valuation
At 1 August 2022
2,229,134
245
-
2,229,379
Additions
8,600
53,752
-
62,352
Valuation changes
(50,524)
-
711,667
661,143
At 31 July 2023
2,187,210
53,997
711,667
2,952,874
Carrying amount
At 31 July 2023
2,187,210
53,997
711,667
2,952,874
At 31 July 2022
2,229,134
245
-
2,229,379
2023
2022
Other investments comprise:
Notes
£
£
Investments in subsidiaries
24
711,667
-
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
14
Fixed asset investments
(Continued)
- 26 -
Fixed asset investments revalued

Listed investments are included at revalued amounts, being the market value of the shares at the year end. The historical cost of the shares was £2,217,546 (2022: £1,944,107).

15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
247,296
209,474
Other debtors
8,575
-
Prepayments and accrued income
330,904
370,715
586,775
580,189
16
Finance lease commitments
Future minimum lease payments due under finance leases:
2023
2022
£
£
Within one year
-
1,296
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
16
-
1,296
Other taxation and social security
40,029
37,986
Trade creditors
43,141
122,723
Other creditors
196,385
20,493
Accruals and deferred income
198,953
281,473
478,508
463,971
18
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
75,000
-
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
19
Retirement benefit schemes
Defined contribution schemes

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.

The charge to Statement of Financial Activities in respect of defined contribution schemes was £77,436 (2022: £65,626).

20
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds

Income

Expenditure

Balance at
1 August 2022

Income

Expenditure

Balance at
31 July 2023
£
£
£
£
£
£
Kickstart
13,509
(13,509)
-
-
-
-
Apprenticeship Incentive
-
-
-
3,000
(3,000)
-
13,509
(13,509)
-
3,000
(3,000)
-

 

Apprenticeship Incentive - Government funding to support an apprentice in the workplace.

 

Kickstart – Open Awards appointed two administrators in March 2021 as part of the Government scheme to support individuals into meaningful workplace roles.

 

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 28 -
21
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Balance at
1 August 2021

Expenditure

Transfers
Balance at
1 August 2022

Expenditure

Transfers
Balance at
31 July 2023
£
£
£
£
£
£
£
Bursary Fund
20,250
(2,000)
2,000
20,250
(4,800)
4,550
20,000
IT Infrastructure and Systems Fund
250,000
(84,853)
84,853
250,000
(79,362)
79,362
250,000
Assessment Development Fund
100,000
(65,044)
100,044
135,000
(56,348)
-
78,652
Tangible & Intangible Fixed Asset Fund
228,536
(10,452)
-
218,084
-
705,168
923,252
Adjustment in income / Covid 19
500,000
-
-
500,000
(193,823)
(106,177)
200,000
Building Maintenance
100,000
(2,523)
-
97,477
(2,938)
-
94,539
Project work / Diversification opportunities
80,000
(43,940)
50,000
86,060
-
-
86,060
Cyber related incidents
100,000
-
-
100,000
-
-
100,000
Redundancy payments
40,000
-
-
40,000
-
-
40,000
1,418,786
(208,812)
236,897
1,446,871
(337,271)
682,903
1,792,503

Bursary Fund - This is a fund set up for the payment of bursaries to learners at recognised centres to enable or support them with their studies, or to providers to enable innovative projects to support their learners.

 

IT Infrastructure and Systems Fund - This is a fund committed to the development of Open Awards IT infrastructure and systems in order to streamline processes and improve efficiencies.

 

Assessment Development Fund - A fund for assessment development of Functional Skills, Essential Digital Skills and End-point assessments.

 

Tangible & Intangible Fixed Asset Fund - This fund reflects the value of the fixed assets used operationally by the charity and the investment in Maxam Training Limited.

 

Adjustment in Income/Covid Recovery - Following a deficit budget for 2022-23 as Open Awards invested in staffing and services to support growth in provision, a balanced budget has been set for 2023-24.

 

Building Maintenance - Open Awards owns 17 De Havilland Drive, Estuary Commerce Park, Speke L24 8RN and the Trustees wish to make proper provision for the maintenance of this building. This is in addition to operational maintenance incurred in-year.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
21
Designated funds
(Continued)
- 29 -

Project work/Diversification Opportunities - Open Awards has to keep abreast of government initiatives and funding issues in order to offer providers the qualifications that best fit the needs of the learners and meet employer needs. This means that additional resources may be called upon to assess the viability of entering into new markets or areas of business without eating into the income generated from existing core operations.

 

Cyber related incidents - Whilst Open Awards takes all necessary precautions in respect of network security and GDPR and has comprehensive levels of insurance, additional resources may be needed. With an increase in remote working and more sophisticated cyber-crime the board have decided it would be prudent to have reserves in place to cover this contingency.

 

Redundancy Payments - The impact of Covid19 and the current economic climate on our Providers and therefore our income, is as yet unknown and ongoing. The board have determined it would be cautious to set aside a fund for this.

22
Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
95,870
108,255
Between two and five years
127,447
197,627
223,317
305,882
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
286,361
338,145
24
Subsidiaries

Details of the charitable company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Maxam Training Limited
England and Wales
Providers of Further Education Teaching and Assessor Qualifications.
Ordinary shares
100.00
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
24
Subsidiaries
(Continued)
- 30 -
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Maxam Training Limited
121,640
98,275

Open Awards acquired 100% of the issued share capital of Maxam Training Limited on 22 November 2022.

25
Cash generated from operations
2023
2022
£
£
(Deficit)/surpus for the year
(234,730)
614,480
Adjustments for:
Investment income recognised in statement of financial activities
(85,972)
(22,511)
(Gain)/loss on disposal of investments
-
107,910
Fair value gains and losses on investments
50,524
(20,189)
Depreciation and impairment of tangible fixed assets
22,243
19,244
Movements in working capital:
(Increase) in debtors
(6,585)
(195,085)
Increase in creditors
81,433
197,639
Cash (absorbed by)/generated from operations
(173,087)
701,488
26
Analysis of changes in net funds
At 1 August 2022
Cash flows
At 31 July 2023
£
£
£
Cash at bank and in hand
2,129,354
(868,774)
1,260,580
Cash equivalents
245
53,752
53,997
2,129,599
(815,022)
1,314,577
Obligations under finance leases
(1,296)
1,296
-
2,128,303
(813,726)
1,314,577
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