Charity registration number 1113612
Company registration number 05462874 (England and Wales)
OPEN AWARDS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
OPEN AWARDS
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mrs N Mailey (Chair)
Dr A Stott
Mr B Jordan
Dr H van Zalinge
Mrs J Armitage
Mr M Bennett
Mrs L Adam
(Appointed 20 June 2024)
Mrs C Blanchard
(Appointed 20 June 2024)
Mrs S Clark
(Appointed 20 June 2024)
Mrs J Colbourne-Davies
(Appointed 20 June 2024)
Mr B Maregere
(Appointed 20 June 2024)
Secretary
Mrs A Till
Senior management
Mrs H Akehurst
Chief Executive
Charity number
1113612
Company number
05462874
Registered office
17 De Havilland Drive
Estuary Commerce Park
Speke
Liverpool
L24 8RN
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
Bankers
National Westminster Bank
Solicitors
Brabners llp
Investment advisors
Quilter Cheviot
OPEN AWARDS
CONTENTS
Page
Trustees' report
1 - 8
Statement of trustees' responsibilities
9
Independent auditor's report
10 - 12
Consolidated statement of financial activities
13
Consolidated balance sheet
14
Parent charity balance sheet
15
Consolidated statement of cash flows
16
Notes to the financial statements
17 - 36
OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 31 July 2024.

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 charity'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.

 

Open Awards has a subsidiary organisation, Maxam Training which delivers adult tutor qualifications, primarily for Blue Light organisations.

 

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 DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 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 have begun exploration with another Awarding Organisation to use Artificial Intelligence to develop resources that benefit our providers and learners.

 

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. This year we delivered two Ofqual designated high risk qualifications in Quilting and Maritime studies.

 

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 conduct reviews against the revised Charity Governance Code, as well as our public benefit.

 

Open Awards supports National Careers Week and staff continue in trustee and governorship roles within the wider community.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

Achievements and performance

 

This academic year has been challenging as the education and skills sectors looked forward to a General Election and the potential impacts on policy and education. Additionally, the effects of Covid related disruption and a growth in mental health concerns for all ages continued to impact learners and apprentices. Significant cost of living concerns were felt across organisations and providers.

 

Open Awards registered 33,292 learners within the year and 17,973 learners were certificated within this period achieving full qualifications or specific units. The Department for Education announced the return to 2019 Awarding standards and this had little impact on Vocational qualifications. Sixty apprentices underwent their End Point Assessment with us, encompassing 166 assessments.

 

Customer satisfaction continued to be measured within the year; and events continued with increased use of online webinars and support. Meetings with providers between 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 develops to meet differing needs. 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.

 

Functional Skills financial performance was impacted over this period as a large training provider moved to cheaper provision at the start of the academic year. Open Awards continued to provide online assessment and remote invigilation services with training for organisations using their own invigilators. Open Awards continued to work with Future Qualifications and VTCT to continue development of our Functional Skills papers and resources.

 

Open Awards was disappointed that Essential Digital Skills qualifications were delayed until the next academic year and that our End Point Assessment services suffered significant delay. This has resulted in a restructure within the organisation to align different functions and streamline processes.

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

Open Awards engaged with the government and shadow cabinet regarding policy decisions; and across Department for Education departments at a regulatory level. Open Awards continued to represent our providers, learners and apprentices to ensure their voices are heard. We have sought to represent our providers with the new government in the areas of employability and skills.

 

Open Awards has 614 recognised Providers, however not all these register learners each period and we work closely with all Providers to understand their business needs and funding positions. This presented a challenge during the year due to cost of living pressures against a backdrop of increasing needs and a reluctance to make long term commitments given the known General Election. Open Awards recognised 60 new Centres within the period and activity continued strongest with Construction and Pharmacy qualifications, our Skills for Learning and Employment suite and Functional Skills.

 

Learner registrations were 33,292 a decrease of over 3,000 from the previous financial year and mainly due to the loss of a large Functional Skills provider. Changes in funding for Further Education Colleges and the voluntary sector continued to have an impact and we await the scale of government policy changes. Open Awards completed work on the Ofqual Level 2 and Level 3 reforms during the financial year.

 

Qualification development and Validity processes continue to be reviewed to ensure they provide real employment prospects and meet learner demand. Particular emphasis continued to be 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. Validity is underpinned by our ongoing investment in our labour market intelligence system and guidance from the Business Development Committee.

 

We continue to have a national presence and attendance in person at a growing number of events, meetings and online training and events. The debate around Artificial Intelligence grew apace within the year with opportunities and challenges for those in the education and training sector.

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.

 

Open Awards worked hard to continue to maintain our low-risk rating with Ofqual, Qualification Wales and QAA.

 

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 Trustees retired due to their length of service in June 2024 and recruitment took place to recruit replacements. We would like to thank Adrian Bevin, David Tilley, Gill Mason, Gordon Laing and Kieran Gordon for their hard work and support over the years.

 

Fundraising Activities

 

Open Awards does not undertake any fundraising activities.

Investment Performance

 

Open Awards has an Investment Policy, which was reviewed in the last period. The Investment Manager changed to Quilter Cheviot the year previously. 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 2024 was 11% (2023: -2.3%) which was a good performance given the economic situation. Recognised and unrecognised gains for the year were £240,889 with £73,348 income generated. It is recognised there may still be volatility with investments following the US election but as the portfolio is for long term investment this is not a significant concern at this time.

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Group Financial review

 

The Statement of Financial Activities is on page 13. The group’s income is derived from charges to providers of its courses and qualifications, such as learner registration fees and an annual provider approval 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 60 new centres over a broad spectrum including FE Colleges, schools, Offender Learning providers, private training providers and employers.

 

Over the period the group generated income of £3,100,787 which was 19% higher than the previous period’s figure of £2,601,093 for the year ended 31 July 2023 but was buoyed by residual contractual income from IfATE. 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 continue to develop qualifications in Wales and our End-point assessment services. Prices for 2023-24 saw a small increase but continue to remain competitive in the current market.

 

Resources expended were £3,189,728 in comparison to £2,831,084 for year ended 31 July 2023. This is a 13% increase on the previous period. Net operating expenditure was £88,941. After gains on investment there was a total surplus of £151,948.

 

Maxam Training contributed £44,568 towards the Open Awards surplus.

Unrestricted Funds

 

During the period, the group’s net assets increased in value from £4,412,520 to £4,564,468. 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.

 

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 DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 5 -

As at 31 July 2024 the group’s total reserves stood at £4,564,468. After making allowance for designated funds of £1,698,956, including the carrying amount of functional tangible and intangible assets, reserves available to satisfy the policy requirements above stood at £2,865,512.

 

The Trustees are satisfied the existing amount of reserves allows the group to fulfil all its obligations shown above and the existing Policy is reviewed annually to ensure the sustainability of the group 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 £20,000 to meet the ongoing commitment from Trustees and this is due to be reviewed in November 2024.

 

The Auditors and Trustees are happy that there are no uncertainties about Open Awards and the group 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 20 June 2024 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 DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 6 -
Plans for future periods

 

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 Mailey (Chair)
Dr A Stott
Mr B Jordan
Dr H van Zalinge
Mrs J Armitage
Mr M Bennett
Mrs L Adam
(Appointed 20 June 2024)
Mrs C Blanchard
(Appointed 20 June 2024)
Mrs S Clark
(Appointed 20 June 2024)
Mrs J Colbourne-Davies
(Appointed 20 June 2024)
Mr B Maregere
(Appointed 20 June 2024)
Dr G Laing
(Retired 20 June 2024)
Mr A Bevin
(Retired 20 June 2024)
Ms G Mason
(Retired 20 June 2024)
Mr D Tilley
(Retired 20 June 2024)
Mr I Gordon
(Retired 20 June 2024)
OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 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 is currently undergoing a review 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.

 

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.

Relationship with Related Parties

 

Maxam Training Ltd is a wholly owned subsidiary of Open Awards

OPEN AWARDS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
Auditor

DSG resigned as auditor on 7 November 2024. DSG Audit were appointed on 7 November 2024 and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Mrs N Mailey (Chair)
Trustee
28 November 2024
OPEN AWARDS
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 JULY 2024
- 9 -

The trustees, who also act as 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 charity and group and of the incoming resources and application of resources, including the income and expenditure, of the group for that year.

 

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

 

 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and group 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 charity and group 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 'parent charity') and its subsidiary (the 'Group') for the year ended 31 July 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity balance sheets, the Consolidated 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 group's and parent charity's affairs as at 31 July 2024 and of the group's 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 group 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 group's or parent charity'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.

OPEN AWARDS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPEN AWARDS
- 11 -

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 and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and

-

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or

-

the parent charity 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.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the parent charity 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 group and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 -

Based on our discussions with the group and parent 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 parent charity'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 parent charity'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 parent charity and the parent charity'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 Audit
28 November 2024
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
OPEN AWARDS
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
-
9,721
9,721
-
3,000
3,000
Charitable activities
4
2,657,428
-
2,657,428
2,280,677
-
2,280,677
Other trading activities
5
324,547
-
324,547
231,444
-
231,444
Investments
6
109,091
-
109,091
85,972
-
85,972
Total income
3,091,066
9,721
3,100,787
2,598,093
3,000
2,601,093
Expenditure on:
Raising funds
7
280,317
-
280,317
158,317
-
158,317
Charitable activities
8
2,899,690
9,721
2,909,411
2,669,767
3,000
2,672,767
Total expenditure
3,180,007
9,721
3,189,728
2,828,084
3,000
2,831,084
Net gains/(losses) on investments
13
240,889
-
240,889
(50,524)
-
(50,524)
Net income/(expenditure) and movement in funds
151,948
-
151,948
(280,515)
-
(280,515)
Reconciliation of funds:
Fund balances at 1 August 2023
4,412,520
-
4,412,520
4,693,035
-
4,693,035
Fund balances at 31 July 2024
4,564,468
-
4,564,468
4,412,520
-
4,412,520

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

OPEN AWARDS
CONSOLIDATED BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
15
572,322
641,000
Other intangible assets
15
-
5,880
Total intangible assets
572,322
646,880
Tangible assets
17
187,230
205,704
Investments
19
2,555,315
2,241,207
3,314,867
3,093,791
Current assets
Debtors
21
366,403
537,771
Cash at bank and in hand
1,367,554
1,360,956
1,733,957
1,898,727
Creditors: amounts falling due within one year
23
(484,356)
(504,998)
Net current assets
1,249,601
1,393,729
Total assets less current liabilities
4,564,468
4,487,520
Creditors: amounts falling due after more than one year
25
-
(75,000)
Net assets
4,564,468
4,412,520
The funds of the charity
Unrestricted funds
29
4,564,468
4,412,520
4,564,468
4,412,520

As permitted under Section 408 of the Companies Act 2006, the trustees have not presented a separate Statement of Financial Activities for the parent charity. The parent charity made a surplus, including investment gains, of £220,694 for the year.

The financial statements were approved by the trustees on 28 November 2024
Mrs N Mailey (Chair)
Trustee
Company registration number 05462874 (England and Wales)
OPEN AWARDS
PARENT CHARITY BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
16
-
5,880
Tangible assets
18
187,230
205,704
Investments
20
3,266,982
2,952,874
3,454,212
3,164,458
Current assets
Debtors
22
400,400
586,775
Cash at bank and in hand
1,288,843
1,260,580
1,689,243
1,847,355
Creditors: amounts falling due within one year
24
464,456
478,508
Net current assets
1,224,787
1,368,847
Total assets less current liabilities
4,678,999
4,533,305
Creditors: amounts falling due after more than one year
26
-
(75,000)
Net assets
4,678,999
4,458,305
The funds of the charity
Unrestricted funds - general
30
4,678,999
4,458,305
4,678,999
4,458,305
The financial statements were approved by the trustees on 28 November 2024
Mrs N Mailey (Chair)
Trustee
Company registration number 05462874 (England and Wales)
OPEN AWARDS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
34
(27,023)
(97,593)
Investing activities
Purchase of intangible assets
-
(686,785)
Purchase of tangible fixed assets
(2,251)
(15,743)
Purchase of investments
(127,199)
(8,600)
Proceeds from disposal of  investments
-
9,399
Investment income received
109,091
85,972
Net cash used in investing activities
(20,359)
(615,757)
Financing activities
Payment of finance leases obligations
-
(1,296)
Net cash used in financing activities
-
(1,296)
Net decrease in cash and cash equivalents
(47,382)
(714,646)
Cash and cash equivalents at beginning of year
1,414,953
2,129,599
Cash and cash equivalents at end of year
1,367,571
1,414,953
Relating to:
Cash at bank and in hand
1,367,554
1,360,956
Short term deposits included in current asset investments
17
53,997
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
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 charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 company has taken advantage of the exemption in section 408 of the Companies Act from presenting its individual profit and loss account.

 

The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Exemptions under FRS 102

The parent charity has taken advantage of the following exemptions in its individual financial statements:

 

 

 

Basis of consolidation

The consolidated financial statements incorporate Open Awards its subsidiary company (ie an entity that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
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 or grantors 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 charity 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 charity 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.

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.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -

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 - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill shall be considered to have a finite useful life, and shall be amortised on a systematic basis over ten years.

1.7
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
1.8
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.

Depreciation 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:

Long leasehold buildings
equally over 40 years
Fixtures and fittings
15 years straight line
Computers
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.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
1.9
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.

1.10
Impairment of fixed assets

At each reporting end date, the charity 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).

1.11
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.

1.12
Financial instruments

The charity 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 charity's balance sheet when the charity 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.

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 charity’s contractual obligations expire or are discharged or cancelled.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
1.13
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Income from donations and legacies
Restricted
Restricted
funds
funds
2024
2023
£
£
Grants
9,721
3,000
4
Income from charitable activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Charitable activity
Fees from learner registration, awards and accreditation of courses
2,657,428
2,280,677
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
5
Income from other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Fees from further education teaching and assessor qualifications.
324,547
231,444
6
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Income from listed investments
73,348
62,730
Interest receivable
35,743
23,242
109,091
85,972
7
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Trading costs
Other trading activities
169,526
114,441
Staff costs
107,453
40,080
Support and governance costs
3,000
3,530
279,979
158,051
Investment management
338
266
Total costs
280,317
158,317
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
8
Expenditure on charitable activities
Charitable activity
Charitable activity
2024
2023
£
£
Direct costs
Staff costs
1,860,152
1,863,377
Depreciation and impairment
20,725
22,243
Printing, postage and stationery
62,892
50,196
Telephone
12,391
11,636
Travelling
8,239
6,760
Staff expenses
7,845
6,958
Qualification development
66,065
110,092
Staff development, training and conferences
66,336
17,086
ICT Systems and maintenance
412,227
223,554
Bad debts
25,537
-
Subscriptions
31,371
37,393
Hire of copier
2,370
1,786
Training, hospitality and room hire
1,622
2,025
External verification and quality assurance
167,621
182,817
Bursary Fund
-
4,800
2,745,393
2,540,723
Share of support and governance costs (see note 9)
Support
152,163
124,382
Governance
11,855
7,662
2,909,411
2,672,767
Analysis by fund
Unrestricted funds
2,899,690
2,669,767
Restricted funds
9,721
3,000
2,909,411
2,672,767
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
9
Support costs allocated to activities
2024
2023
£
£
Amortisation
74,558
45,785
Office and similar costs
77,605
78,597
Governance costs
14,855
11,192
167,018
135,574
Analysed between:
Fundraising
3,000
3,530
Charitable activity
164,018
132,044
167,018
135,574
10
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable to the charity's auditor:
- for the audit of the charity and the consolidated financial statements
10,548
10,401
- for the audit of the subsidiary's financial statements
3,000
3,530
Depreciation of owned tangible fixed assets
20,725
22,243
Amortisation of intangible assets
74,558
45,785
11
Trustees

None of the trustees (or any persons connected with them) received remuneration during the year (2023: None and £nil). Three of them were reimbursed a total of £343 in expenses (2023: £696).

12
Employees
Group
2024
2023
Number
Number

The average monthly number of employees during the year was:

56
59
Employment costs
2024
2023
£
£
Wages and salaries
1,700,987
1,647,760
Social security costs
167,454
161,293
Other pension costs
99,164
94,404
1,967,605
1,903,457
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
12
Employees
(Continued)
- 25 -

Redundancy and termination payments totalling £13,180 were made in the reporting period.

The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£80,001 to £90,000
1
1
Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024
2023
£
£
Aggregate compensation
408,004
340,108
Parent charity
2024
2023
Number
Number

The average monthly number of employees during the year was:

53
57
13
Gains and losses on investments
Unrestricted
Unrestricted
funds
funds
2024
2023
Gains/(losses) arising on:
£
£
Revaluation of investments
240,889
(50,524)
14
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 26 -
15
Intangible fixed assets (Group)
Goodwill
Website and database
Total
£
£
£
Cost
At 1 August 2023 and 31 July 2024
686,785
26,472
713,257
Amortisation and impairment
At 1 August 2023
45,785
20,592
66,377
Amortisation charged for the year
68,678
5,880
74,558
At 31 July 2024
114,463
26,472
140,935
Carrying amount
At 31 July 2024
572,322
-
572,322
At 31 July 2023
641,000
5,880
646,880
16
Intangible fixed assets (Parent charity)
Website and database
£
Cost
At 1 August 2023 and 31 July 2024
26,472
Amortisation and impairment
At 1 August 2023
20,592
Amortisation charged for the year
5,880
At 31 July 2024
26,472
Carrying amount
At 31 July 2024
-
At 31 July 2023
5,880
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
17
Tangible fixed assets (Group)
Long leasehold buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 August 2023
1,006,015
253,799
64,313
1,324,127
Additions
-
-
2,251
2,251
At 31 July 2024
1,006,015
253,799
66,564
1,326,378
Depreciation and impairment
At 1 August 2023
864,900
206,533
46,990
1,118,423
Depreciation charged in the year
5,867
6,054
8,804
20,725
At 31 July 2024
870,767
212,587
55,794
1,139,148
Carrying amount
At 31 July 2024
135,248
41,212
10,770
187,230
At 31 July 2023
141,115
47,266
17,323
205,704
18
Tangible fixed assets (Parent charity)
Long leasehold buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 August 2023
1,006,015
241,219
64,313
1,311,547
Additions
-
-
2,251
2,251
At 31 July 2024
1,006,015
241,219
66,564
1,313,798
Depreciation and impairment
At 1 August 2023
864,900
193,953
46,990
1,105,843
Depreciation charged in the year
5,867
6,054
8,804
20,725
At 31 July 2024
870,767
200,007
55,794
1,126,568
Carrying amount
At 31 July 2024
135,248
41,212
10,770
187,230
At 31 July 2023
141,115
47,266
17,323
205,704
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
19
Fixed asset investments (Group)
Listed investments
Long term savings accounts
Total
£
£
£
Cost or valuation
At 1 August 2023
2,187,210
53,997
2,241,207
Additions
127,199
-
127,199
Valuation changes
240,889
-
240,889
-
(53,980)
(53,980)
At 31 July 2024
2,555,298
17
2,555,315
Carrying amount
At 31 July 2024
2,555,298
17
2,555,315
At 31 July 2023
2,187,210
53,997
2,241,207
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 £2,344,744 (2023: £2,217,546).

 

Long term savings accounts and other investments are at cost.

20
Fixed asset investments (Parent charity)
Listed investments
Long term savings accounts
Other investments
Total
£
£
£
£
Cost or valuation
At 1 August 2023
2,187,210
53,997
711,667
2,952,874
Additions
127,199
-
-
127,199
Valuation changes
240,889
-
-
240,889
Change in cash balance
-
(53,980)
-
(53,980)
At 31 July 2024
2,555,298
17
711,667
3,266,982
Carrying amount
At 31 July 2024
2,555,298
17
711,667
3,266,982
At 31 July 2023
2,187,210
53,997
711,667
2,952,874
2024
2023
Other investments comprise:
Notes
£
£
Investments in subsidiaries
33
711,667
711,667
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
20
Fixed asset investments (Parent charity)
(Continued)
- 29 -
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 £2,344,744 (2023: £2,217,546).

 

Long term savings accounts and other investments are at cost.

Details of the subsidiary are included in note 33.

21
Debtors  (Group)
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
173,443
271,685
Other debtors
4,474
8,575
Prepayments and accrued income
188,486
257,511
366,403
537,771
22
Debtors (Parent charity)
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
140,106
247,296
Other debtors
3,779
8,575
Prepayments and accrued income
256,515
330,904
400,400
586,775
23
Creditors: amounts falling due within one year (Group)
2024
2023
£
£
Other taxation and social security
41,565
46,937
Trade creditors
51,612
49,001
Other creditors
105,619
210,107
Accruals and deferred income
285,560
198,953
484,356
504,998
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 30 -
24
Creditors: amounts falling due within one year (Parent charity)
2024
2023
£
£
Other taxation and social security
31,073
40,029
Trade creditors
50,794
43,141
Amounts owed to subsidiary undertakings
2,045
-
Other creditors
94,984
196,385
Accruals and deferred income
285,560
198,953
464,456
478,508
25
Creditors: amounts falling due after more than one year (Group)
2024
2023
£
£
Other creditors
-
75,000
26
Creditors: amounts falling due after more than one year (Parent charity)
2024
2023
£
£
Other creditors
-
75,000
27
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
99,164
94,404

The group operates defined contribution pension schemes for all qualifying employees. The assets of the scheme are held separately from those of the group in independently administered funds.

28
Restricted funds (Group and Parent charity)

The restricted funds of the group and parent charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 August 2023
Incoming resources
Resources expended
At 31 July 2024
£
£
£
£
Welsh Translation Grant
-
9,721
(9,721)
-
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
28
Restricted funds (Group and Parent charity)
(Continued)
- 31 -
Previous year:
At 1 August 2022
Incoming resources
Resources expended
At 31 July 2023
£
£
£
£
Welsh Translation Grant
-
3,000
(3,000)
-
29
Unrestricted funds (Group)

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 August 2023
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 July 2024
£
£
£
£
£
£
Bursary Fund
20,000
-
-
-
-
20,000
IT Infrastructure and Systems Fund
250,000
-
(64,217)
64,217
-
250,000
Assessment Development Fund
78,652
-
(37,255)
58,603
-
100,000
Tangible & Intangible Fixed Asset Fund
852,584
-
-
(93,032)
-
759,552
Covid
200,000
-
-
-
-
200,000
Building Maintenance
94,539
-
(1,195)
-
-
93,344
Project work / Diversification opportunities
86,060
-
-
50,000
-
136,060
Cyber related incidents
100,000
-
-
-
-
100,000
Redundancy payments
40,000
-
(13,180)
13,180
-
40,000
General funds
2,690,685
3,091,066
(3,064,160)
(92,968)
240,889
2,865,512
4,412,520
3,091,066
(3,180,007)
-
240,889
4,564,468
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
29
Unrestricted funds (Group)
(Continued)
- 32 -
Previous year:
At 1 August 2022
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 July 2023
£
£
£
£
£
£
Bursary Fund
20,250
-
(4,800)
4,550
-
20,000
IT Infrastructure and Systems Fund
250,000
-
(79,362)
79,362
-
250,000
Assessment Development Fund
135,000
-
(56,348)
-
-
78,652
Tangible & Intangible Fixed Asset Fund
218,084
-
-
634,500
-
852,584
Adjustment in income / Covid 19
500,000
-
(193,823)
(106,177)
-
200,000
Building Maintenance
97,477
-
(2,938)
-
-
94,539
Project work / Diversification opportunities
86,060
-
-
-
-
86,060
Cyber related incidents
100,000
-
-
-
-
100,000
Redundancy payments
40,000
-
-
-
-
40,000
General funds
3,246,164
2,598,093
(2,490,813)
(612,235)
(50,524)
2,690,685
4,693,035
2,598,093
2,828,084
-
(50,524)
4,412,520

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 value of the goodwill 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. Whilst the number of approved providers has grown, there is reliance on a number of key customers.

 

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 2024
29
Unrestricted funds (Group)
(Continued)
- 33 -

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 - A restructure took place in April 2024 to enable streamlining and efficiency of operations. The economic climate has been and continues to be challenging for our Providers and it is therefore prudent to retain this fund.

30
Unrestricted funds (Parent charity)

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

£
£
£
£
£
£
Bursary Fund
20,000
-
-
-
-
20,000
IT Infrastructure and Systems Fund
250,000
-
(64,217)
64,217
-
250,000
Assessment Development Fund
78,652
-
(37,255)
58,603
-
100,000
Tangible & Intangible Fixed Asset Fund
923,252
-
(24,357)
-
-
898,895
Adjustment in income / Covid 19
200,000
-
-
-
-
200,000
Building Maintenance
94,539
-
(1,195)
-
-
93,344
Project work / Diversification opportunities
86,060
-
-
50,000
-
136,060
Cyber related incidents
100,000
-
-
-
-
100,000
Redundancy payments
40,000
-
(13,180)
13,180
-
40,000
General funds
2,665,802
2,811,155
(2,691,146)
(186,000)
240,889
2,840,700
4,458,305
2,811,155
2,831,350
-
240,889
4,678,999
OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
30
Unrestricted funds (Parent charity)
(Continued)
- 34 -
Previous year:
At 1 August 2022
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 July 2023
£
£
£
£
£
£
Bursary Fund
20,250
-
(4,800)
4,550
-
20,000
IT Infrastructure and Systems Fund
250,000
-
(79,362)
79,362
-
250,000
Assessment Development Fund
135,000
-
(56,348)
-
-
78,652
Tangible & Intangible Fixed Asset Fund
218,084
-
-
705,168
-
923,252
Adjustment in income / Covid 19
500,000
-
(193,823)
(106,177)
-
200,000
Building Maintenance
97,477
-
(2,938)
-
-
94,539
Project work / Diversification opportunities
86,060
-
-
-
-
86,060
Cyber related incidents
100,000
-
-
-
-
100,000
Redundancy payments
40,000
-
-
-
-
40,000
General funds
3,246,164
2,440,042
(2,286,977)
(682,903)
(50,524)
2,665,802
4,693,035
2,440,042
(2,624,248)
-
(50,524)
4,458,305
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. Whilst the number of approved providers has grown, there is reliance on a number of key customers.

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 2024
30
Unrestricted funds (Parent charity)
(Continued)
- 35 -
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 - A restructure took place in April 2024 to enable streamlining and efficiency of operations. The economic climate has been and continues to be challenging for our Providers and it is therefore prudent to retain this fund.
31
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
77,350
95,870
Between two and five years
133,826
127,477
211,176
223,347
32
Related party transactions

Group

Details for payroll and expenses in regards to trustees and key management personnel are disclosed in notes 11 and 12.

 

Due to the nature of the group's operations and the composition of it's boards, who are drawn from the education and skills sector, it is possible that transactions will take place with organisations in which board members may have an interest only by reason of their employment by such organisations.

 

There were no other disclosable related party transactions during the year (2023: none).

 

Parent charity

Other than the transactions disclosed above, the company’s other related party transactions were

with wholly owned subsidiaries.

 

OPEN AWARDS
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 36 -
33
Subsidiaries

Details of the charity's subsidiary at 31 July 2024 is as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Maxam Training Limited
England and Wales
Provision of further education teaching and assessor qualifications
Ordinary shares
100.00

The subsidiary is included in the consolidated accounts.

34
Cash generated from operations
2024
2023
£
£
Surplus/(deficit) for the year
151,948
(280,515)
Adjustments for:
Investment income recognised in statement of financial activities
(109,091)
(85,972)
Fair value gains and losses on investments
(240,889)
50,524
Amortisation and impairment of intangible assets
74,558
45,785
Depreciation and impairment of tangible fixed assets
20,725
22,243
Movements in working capital:
Decrease in debtors
171,368
42,419
(Decrease)/increase in creditors
(95,642)
107,923
Cash absorbed by operations
(27,023)
(97,593)
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