HLC’s operating environment remained challenging throughout 2025–26, with continuing uncertainty surrounding the future funding and commissioning of learning, skills and employment support. The year was characterised by the transition from short-term domestic replacement funding towards a more devolved commissioning landscape across Hull and East Yorkshire. Although this created significant strategic and financial uncertainty, HLC continued to deliver strongly, maintain effective partnerships and position the organisation for future opportunities.
HLC successfully maintained its partnership-based approach through the UK Shared Prosperity Fund. During 2025–26, HLC continued to lead the Hull Exploring Opportunities (EO) programme, working with a network of local community and voluntary sector organisations to support economically inactive residents and people facing significant barriers to employment and learning.
The Hull Exploring Opportunities partnership performed impressively throughout the year. In the 12 months to March 2026, the programme supported 902 participants, of whom 68% were economically inactive and 44% were young people not in education, employment or training. 72.3% of participants progressed into employment or further learning. These results demonstrate the effectiveness of HLC’s neighbourhood-based partnership model and the value of trusted community organisations in engaging residents who may not access mainstream provision. Hull & East Yorkshire Combined Authority awarded the EO partnership approximately £1.6m for 2025-26 via the Local Growth Fund. Whilst this helped to protect vital employment support services in Hull, it also represented a 38% cut in funding compared to 2024-25. There is an added caveat of a fixed review point for this investment in September 2026. Continuation from Oct26 to Mar27 will be subject to the partnership meeting HEYCA contract targets and closer alignment with Local Growth Plan objectives. Discussions are also underway with HEYCA regarding potential EO delivery beyond April 2027.
HLC’s Adult Skills Fund provision continued to perform well during 2025–26. The transfer of responsibility for the contract into the Hull and East Yorkshire devolved funding arrangements created additional complexity and financial pressure. HLC continued to engage with local authorities, and the Hull and East Yorkshire Combined Authority as preparations progressed for full skills devolution from August 2026.
The organisation’s 16–19 Study Programme continued to meet an important need across Hull. Delivery through Goodwin Development Trust, Unity in Community and Niche Training provided a flexible and supportive alternative for young people who had struggled to engage successfully in larger or more formal institutions. A substantial proportion of learners had Education, Health and Care Plans or were classified as high needs. HLC’s Study Programme and high-needs provision were inspected by Ofsted during 2025–26 under the new further education and skills inspection framework. Leadership and governance were judged to be Strong. Achievement and curriculum, teaching and training within education programmes for young people were also judged to be Strong, with inspectors identifying aspects of exceptional practice. Inclusion and the high-needs provision met the expected standard, and safeguarding was judged to be effective. The Board welcomed this highly positive external assessment of the quality of HLC’s leadership, partnership management, and provision for young people.
The National Lottery Community Fund-supported Good to Go programme concluded on 31 March 2026 after providing targeted mentoring and support to young people. As no continuation funding was available, four posts primarily funded through the programme were made redundant. The ending of Good to Go (and previously Exploring Opportunities East Riding) illustrated the continuing challenges associated with short-term project funding and the loss of experienced staff and established services when funding periods conclude.
During the year, HLC continued to develop its strategic role across Hull and East Yorkshire. This included contributing to discussions concerning economic inactivity, youth unemployment, skills devolution and the prevention of young people becoming NEET. HLC also progressed plans to strengthen its neighbourhood front-door model, improve progression pathways, support voluntary and community sector capacity, deepen employer engagement and make greater use of evidence and insight.
HLC reported a financial deficit of £133,554 for the year ending 31 March 2026. Free reserves on 31 March 2026 were £673,625, and unrestricted reserves were £673,914. HLC continued to operate without external borrowing.
The financial result reflected the combined effect of the closure of the East Riding Exploring Opportunities programme and Multiply in the previous financial year, the conclusion of Good to Go, reduced income from devolved Adult Skills Fund arrangements, significant redundancy outlay in 2025, and continued uncertainty over replacement employment and skills funding. The Board and senior management team maintained close oversight of cash flow, reserves and future commitments throughout the year.
Despite the difficult operating environment, the Board of Trustees remains confident in HLC’s ability to respond to future challenges and opportunities. This confidence is founded on HLC’s strong record of contract and grant management, consistently positive funding audits, high-quality provision, experienced staff team, trusted relationships with commissioners and stakeholders, and its network of community-based delivery partners.
HLC entered 2026–27 still in a robust financial position, no external borrowings and a clear strategic direction. Nevertheless, the organisation remains alert to the risks arising from short-term funding cycles, changes in commissioning arrangements and increasing financial pressure across the voluntary and community sector. The Board will continue to take a prudent approach to financial planning while seeking opportunities to protect and develop HLC’s role as a lead partner for inclusive learning, skills and employment support across Hull, East Yorkshire and the wider Humber area.
The trustees present their annual report and financial statements for the year ended 31 March 2026.
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 governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
The charitable objects of HLC are to promote the advancement of education for the public benefit, in particular:
(a) To improve access to learning opportunities for users, volunteers, and employees of voluntary and community organisations in Humber and Yorkshire
(b) To develop voluntary sector learning providers to meet quality thresholds and stakeholder requirements
(c) To develop a partnership approach to the delivery and development of learning opportunities and good practice
(d) To carry out associated activities
(e) To promote the efficiency and effectiveness of charities, voluntary and community groups based in the Humber and Yorkshire region by providing training and on-going support to increase their ability to access funding and participate in the regeneration of their area.
HLC's activities promote the advancement of education for the public benefit. In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including specific guidance on fee charging.
We work with delivery partners, the majority of which are local not-for-profit organisations, to deliver a wide range of accredited and non-accredited learning opportunities.
HLC's learning provision is targeted at disadvantaged individuals and communities. As a result, where possible, learning is provided free of charge, or at the lowest possible cost to encourage access and participation.
From a broader perspective, HLC's activities help adults and young people within the Yorkshire and Humber region to engage on a journey that leads to further learning and / or job opportunities, benefiting both the individual, their families, and communities.
Quality assurance and improvement processes are given a high profile across HLC and its partner's networks. Guidance and training are regularly provided to ensure that delivery partners and their staff members meet the quality thresholds of funders and inspection bodies.
HLC is committed to strengthening voluntary and community sector organisations to deliver learning opportunities. Our experience demonstrates that promoting the delivery of learning opportunities in partnership with local and trusted community groups helps to engage those from the most disadvantaged backgrounds.
During 2025-26 HLC has been able to promote and deliver learning opportunities through the following core activities, grants, and contracts:
- Quality and Development
- DfE 16-19 Study Programme
- ESFA Adult Adult Skills Fund
- UKSPF Exploring Opportunities Hull
- National Lottery Community Fund – Good to Go project
- ERASMUS+ Independent People 2.0
With our partners we have delivered a wide range of learning opportunities to disadvantaged people. The contracts and projects are summarised below. The letters in brackets demonstrate which of HLC's charitable objects (see above) are being met by a particular area of work, grant, or contract.
Quality and Development (a, b, c, d, e)
Quality assurance and the development of our delivery partners is a driven by our commitment to continuous improvement. Supporting voluntary sector organisations to become high quality learning providers is one of HLC’s primary charitable objects and one of our 3 strategic priorities. HLC carries out a range of quality and development activities, including:
- Regular 1-1 quality and support visits to partners
- Observations of teaching, learning, and assessment (including dual observations)
- Quality Improvement Network meetings (5-6 per academic year)
- Designated Safeguarding Officers network (4 per year)
- Continuing professional development events
- Equality & diversity support, inc. E&D diaries and calendars
- Learner enrichment activities
- Safeguarding & Prevent Duty support and advice
- E-safety audits
- Webinars
- Telephone advice, on-line meetings, 1-1 support, and virtual networks
- A dedicated quality resources website
- Matrix IAG quality assurance compliance support
These activities help HLC to maintain and strengthen our relationships with partner organisations, in turn helping them to build their own capacity and deliver high quality learning opportunities to our target beneficiaries.
HLC continues to demonstrate a strong commitment to quality improvement. HLC was inspected by Ofsted in April 2026 under the new further education and skills inspection framework. Leadership and governance were judged to be Strong. Achievement and curriculum, teaching and training within education programmes for young people were also judged to be Strong, with inspectors identifying aspects of exceptional practice. Inclusion and the high-needs provision met the expected standard, and safeguarding was judged to be effective. HLC has also been rated “Good” in all its previous inspections (2012, 2015, 2022). HLC holds the Matrix information, advice, and guidance quality standard, the DfE Sub-Contracting Standard, and Cyber Essentials accreditation.
DfE - 16-19 Study Programme started August 2023 (a, b, c, e)
The Study Programme replaced our previous 16-18 Traineeship contract when the national Traineeships programme was scrapped by the former Conservative government. This contract is delivered by 3 community-based partners. HLC has been growing its Study Programme delivery incrementally and carefully over the past 2 academic years to develop and maintain quality of provision, and our allocation for 2026-27 has increased by approximately another 30%, which will see us support 70+ learners in the next academic year.
ESFA - Adult Skills Fund (a, b, c, e)
The ASF programme supports adults aged 19+ offering a range of flexible accredited units and qualifications that are designed to progress individuals into employment, further learning, or career progression. In 2025-26, HLC worked with 5 community-based delivery partners in Hull. We hope to grow ASF provision gradually, adding new partners and local delivery over the next 2-3 years. ASF will come under the local remit and control of the Hull & East Yorkshire Mayoral Combined Authority (via Devolution) in summer 2026. An interim pilot devolution arrangement was in place for 2025-26, which saw HLC’s ASF funding “account managed” by Hull Training & Adult Education for one academic year.
UKSPF Exploring Opportunities Hull from April 2023 to March 2026 (a, b, c)
Funded through UKSPF with Hull City Council as the accountable body, EO Hull is an HLC-led partnership project with 8 experienced Hull-based organisations It aims to support unemployed and economically inactive residents with the goal of progressing them into employment or further learning or moving them closer to the labour market. In 2025-26 the partnership provided 902 beneficiaries with 1-1 keyworker and a personalised programme of support, including dedicated mental health and debt advice services. Over 72% progressed into work or further learning. In 2026-27 we received a smaller allocation of Local Growth Fund (62% v.v. UKSPF) to continue delivery of EO.
National Lottery Community Fund – Good to Go from April 2024 to March 2026 (a, c, d)
A 2-year Lottery-funded programme (Reaching Communities), which is focused on first steps and social inclusion activities that act as a bridge into employability provision. The project closed in March 2026.
ERASMUS+ Independent People 2.0 (a, c)
A 3-year EU-funded project to March 2027, with partners from Sweden, Belgium, and Germany. IP2.0 develops portable educational escape rooms (PEERs) – interactive and participative games designed to help learners improve their employability / soft skills, e.g., communication, problem-solving, and teamwork.
This year, HLC is reporting a deficit £133,554. From a financial health perspective, HLC has robust sustainability and gearing ratings (no borrowings), with an unrestricted reserve position of £673,914.
At the time of writing, HLC is operating within a rapidly changing local commissioning environment. The transition to devolved employment and skills funding across Hull and East Yorkshire presents both significant opportunities and material risks. The Board’s priority is to ensure that HLC remains well positioned to secure future investment, protect effective community-based provision and sustain the network of voluntary and community sector organisations that supports residents facing the greatest barriers to learning and employment.
HLC will continue to work with the Hull and East Yorkshire Combined Authority, local authorities and other strategic stakeholders to make the case for sustained investment in neighbourhood-based employment support. HLC will also seek to build on the evidence generated through Exploring Opportunities, including the programme’s strong engagement, progression and partnership outcomes.
During 2026–27, HLC will pursue opportunities arising from the Combined Authority’s employment and economic inactivity agenda. This includes seeking a significant role in future provision designed to support people who are economically inactive, unemployed or at risk of becoming disengaged from education and employment. HLC’s proposed model will continue to centre on trusted neighbourhood front doors, specialist support and coordinated progression pathways into learning and work.
HLC will also continue to develop its strategic contribution to reducing the number of young people who are not in education, employment or training. The organisation intends to work with the Combined Authority, local authorities, education providers, employers, health partners and the voluntary and community sector to establish a more coordinated approach to prevention, early intervention and progression. This will include addressing the transition points, service gaps and wider barriers that contribute to young people becoming or remaining NEET.
Responsibility for the Adult Skills Fund transferred to the Hull and East Yorkshire Combined Authority from August 2026. HLC will seek to secure and grow its role within the devolved adult skills system, building on its strong delivery performance and its established network of community-based providers. The organisation will continue to advocate for funding arrangements that recognise the additional costs and value associated with engaging learners in disadvantaged communities and supporting smaller voluntary and community sector providers.
The 16–19 Study Programme remains a key area for planned growth. HLC intends to expand learner numbers in a controlled and sustainable manner while maintaining the quality of provision recognised through the 2026 Ofsted inspection. Emphasis will be placed on improving progression, strengthening provision for learners with Education, Health and Care Plans and high needs, and developing additional supported employment and internship opportunities.
HLC will continue to implement its five-year strategic plan, with priorities focused on strengthening neighbourhood access, improving pathways and progression, building voluntary and community sector capacity, increasing employer co-design and using evidence and insight to improve services. During 2026–27, the organisation will translate these priorities into detailed delivery plans, measurable outcomes and clear responsibilities across the staff team and Board.
The organisation will also continue to diversify its income base and reduce its exposure to short-term, single-source funding. This will include pursuing grant funding, devolved contracts, strategic partnerships and opportunities to provide programme management, quality assurance, research and capacity-building support. The Board will maintain a prudent approach to financial management and will carefully assess the affordability, risk and strategic fit of new opportunities.
Although the external environment remains uncertain, the Board believes that HLC’s strong delivery record, positive Ofsted outcome, experienced staff team, robust governance and extensive partnership network provide a firm foundation for future development. HLC will continue to adapt proactively, protect its financial resilience and pursue opportunities that advance its charitable purpose and improve outcomes for communities across Hull, East Yorkshire and the wider Humber area.
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
A board comprising six trustees is the current the accountable body for policy and oversight within the agreed framework set out in the Memorandum of Association.
The trustees meet quarterly to discuss and approve major decisions. The board of HLC has a Finance & General Purposes sub-group, which meets in advance of a full board meeting to scrutinise the financial and management accounts. A management team comprising a Chief Executive, Deputy Chief Executive, and Quality Director, oversees the day-to- day operations of the organisation. The Chief Executive also serves as the Company Secretary.
The trustees seek to utilise a partnership approach in the development of strategy, which enables the whole staff team to engage in and discuss issues affecting the organisation. We meet as a whole group every January for an away day. This ensures that the staff team remains fully engaged and that strategic decisions of the board benefit from the expertise and operational experience of all employees. Responsibility for the day-to-day operations and implementation is subsequently taken by each individual member of staff, as appropriate to their level of responsibility.
Contractual Partnerships
Humber Learning Consortium utilises contractual partnerships to enable the delivery of a broad range of services in support of learning within the voluntary and community sector (VCS). In this context the organisation has worked very successfully with the Education & Skills Funding Agency, Department for Education (DfE), National Lottery Community Fund, Hull City Council (UKSPF & Multiply), and East Riding of Yorkshire Council (UKSPF). HLC also has strategic alliances which support VCS learning; partners include Hull & East Yorkshire Business Growth & Skills Hub (formerly HEY LEP), Careers Hub, and the National Careers Service.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The management team in conjunction with trustee representatives review the risks faced by the organisation. A risk register is held and reviewed periodically to assess changing risk factors. The main risks to the organisation considered as part of this strategy are as follows:
1. Corporate/Strategic Factors
2. Governance and Management
3. Financial
4. Personnel
5. Teaching, Learning & Assessment
6. Communications, Information Technology and MIS
7. Premises and facilities
8. Marketing
9. Natural disaster
10. Fraud
Following a procurement exercise Rackhams Accountants Limited re-appointed by HLC trustees at the 2023 AGM for a 3-year period.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Humber Learning Consortium 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 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 charity 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 charity 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Humber Learning Consortium (the ‘charity’) for the year ended 31 March 2026 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:
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 charity 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.
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 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.
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.
In the light of the knowledge and understanding of the charity 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.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
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.
As part of our planning process:
We enquired of management the systems and controls the company has in place, in the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected, or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the company and we determined that the following were most relevant: FRS 102, Companies Act 2006, Health and Safety at Work Act and Employment Law.
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities, including fraud, and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records. In particular, we tested items that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates. In particular, we considered going concern and impairment of trade debtors.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key revenue lines.
Performing physical verification of key assets.
Obtaining third party confirmation of material balances.
Documenting and verifying all significant related party balances and transactions.
Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Humber Learning Consortium is a private company limited by guarantee incorporated in England and Wales. The registered office is 63-71 Anlaby Road, Hull, England, East Yorkshire, HU3 2LL.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
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 freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
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.
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.
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.
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.
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.
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:
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.
At each reporting end date, the charity reviews the carrying amounts of its tangible 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).
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.
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, 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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the 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.
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.
The charitable company shares a mutual trustee with the Goodwin Development Trust. During the year payments were made by Humber Learning Consortium to Goodwin Development Trust amounting to £626,726 (2025 : £666,857).