DATGANIADAU ARIANNOL COLEG SIR BENFRO BLWYDDYN YN GORFFEN 31 GORFFENNAF 2018
PEMBROKESHIRE COLLEGE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2018 CYNNWYS
Adroddiad y Pennaeth
Cyflwyniad...... 4
Strategaeth...... 6
Perfformiad y Dysgwyr...... 11
Ein Staff...... 18
Cydnabod Rhagoriaeth...... 22
Perfformiad Ariannol...... 24
Yr Economi Leol a Menter...... 29
Llywodraethu...... 32
Rhagolygon y Dyfodol...... 33
Adroddiad y Bwrdd Corfforaethol...... 36
Datganiad ar Lywodraethu Corfforaethol yn ymgorffori’r Datganiad o Reolaeth Ariannol Fewnol...... 43
Aelodau Bwrdd y Gorfforaeth...... 48
Adroddiad Archwilwyr Annibynnol i Gorfforaeth Coleg Sir Benfro...... 51
Datganiad o Incwm Cynhwysfawr...... 54
Datganiad o’r Newidiadau yn y Cronfeydd wrth Gefn...... 55
Y Fantolen...... 56
Datganiad Llifau Arian...... 57
Nodiadau i’r Datganiadau Ariannol...... 58
2 CONTENTS
Principals Report
Introduction...... 5
Strategy...... 6
Learner Performance...... 11
Our Staff...... 18
Recognition of Excellence...... 22
Financial Performance...... 24
Local Economy and Enterprise...... 29
Governance...... 32
Future Prospects...... 33
Report of the Corporation Board...... 36 Corporate Governance Statement Incorporating the Statement of Internal Financial Control...... 43
Members of the Corporation Board...... 48
Independent Auditors Report to the Corporation of Pembrokeshire College...... 51
Statement of Comprehensive Income...... 54
Statement of Changes in Reserves...... 55
Balance Sheet...... 56
Statement of Cash Flows...... 57
Notes to the Financial Statements...... 58
3 ADRODDIAD Y PENNAETH AR GYFER Y FLWYDDYN YN GORFFEN 31 GORFFENNAF 2018 Adolygiad Strategol a Gweithredol o Berfformiad Cyflwyniad Mae’n bleser mawr gennyf gyflwyno fy Dyfarnwyd £600,000 i ni gan Lywodraeth adroddiad ar berfformiad y Coleg yn ystod Cymru er mwyn diweddaru dyfeisiadau y flwyddyn a ddaeth i ben ar 31 Gorffennaf Apple Macintosh a dyfeisiadau TG symudol 2018 (y cyfeirir ati yma wedi hyn fel FY18). i ddysgwyr ac i wella’r ystâd drwy gydol FY18. Rydym yn ddiolchgar i Lywodraeth Mae’r Coleg yn falch o adrodd bod Cymru am eu cefnogaeth barhaus i’r Coleg cyfraddau llwyddiant cyffredinol myfyrwyr sydd, yn ein barn ni, yn adlewyrchiad o’u ar gyfer FY17 ymhlith y tri uchaf yn y hyder yng ngallu’r Coleg i ddarparu addysg sector yng Nghymru ac mae disgwyl i’r a hyfforddiant o ansawdd uchel. canlyniadau ar gyfer FY18 gyfateb yn agos â’r canlyniadau hynny. Cadarnheir Mae sefyllfa ariannol y Coleg yn parhau’n canlyniadau Lefel A ar gyfer FY18 ac iach, ac mae ein strategaeth o fuddsoddi unwaith eto mae’r Coleg yn falch o gofnodi parhaus yn adnoddau ac isadeiledd y cyfradd lwyddo gyffredinol o 100% a Coleg wedi ei chynnal. Nid yw sefyllfa chyfradd llwyddiant A*-C sy’n sylweddol ‘cronfeydd net’ y Coleg (arian heb uwch na’r cymharydd cenedlaethol. fenthyciadau) ond wedi gostwng £0.3m Disgwylir i ganlyniadau Dysgu Seiliedig er gwaethaf gwariant cyfalaf o £1.6m yn ar Waith ar gyfer y Coleg a’i Gonsortiwm ystod y flwyddyn – tystiolaeth bellach o’n B-wbl fod yn gryf eto ac uwchlaw’r gallu i ddarparu addysg a hyfforddiant o cymharydd cenedlaethol diwethaf oedd ansawdd uchel o fewn setliadau ariannol ar gael. Mae’r canlyniadau hyn yn dyst cynyddol llym. i waith caled y staff ym mhob maes o weithgarwch y Coleg. Ar yr adeg hon, rwyf am fynegi fy niolch personol i dîm o staff cymorth busnes Agorwyd adeilad newydd y Coleg, sef ac academaidd aruthrol, y mae eu Campws6 gan Ysgrifennydd Addysg y hymrwymiad a’u hymroddiad yn sicrhau Cabinet ym mis Hydref 2017 ac mae’r bod ein holl fyfyrwyr yn cael y profiad cyfleusterau modern wedi bod yn sylfaen dysgu gorau posibl yma yng Ngholeg Sir ar gyfer darpariaeth Lefel A, gwasanaethau Benfro. Rwyf hefyd am achub ar y cyfle salonau harddwch a thrin gwallt a hwn i ddiolch i’r corff llywodraethu am eu gweithgareddau chwaraeon yn ystod y cymorth a’u cyfeiriad gwerthfawr drwy flwyddyn academaidd. Llwyddodd y Coleg gydol y flwyddyn academaidd. Fel Coleg, i gael grant o £3.3 miliwn gan Lywodraeth mae’n fraint i ni gael tîm o staff a chorff Cymru er mwyn darparu arian cyfatebol ar llywodraethol mor gryf, a diolchaf iddynt gyfer buddsoddiad y Coleg yn Campws6, yn ddiffuant. gan ddangos ein gallu i ddarparu addysg o ansawdd uchel a buddsoddi yn y gwaith o ddatblygu a chynnal a chadw’r campws ar yr un pryd.
4 PRINCIPAL’S REPORT FOR THE YEAR ENDED 31 JULY 2018 Strategic and Operating Review of Performance Introduction I have great pleasure in presenting my We have been awarded £600,000 by the report on the performance of the College, Welsh Government for the purpose of during the year ended 31 July 2018 updating Apple Macintosh and mobile IT (hereinafter referred to as FY18). devices for learners and in improving the estate throughout FY18. We are grateful to The College is pleased to report that the Welsh Government for their ongoing overall student success rates for FY17 support of the College which we believe were amongst the top three in the sector is a reflection of their confidence in the in Wales and the outcomes for FY18 are College’s ability to deliver high quality expected to closely match those results. A education and training. Level results for FY18 are confirmed and the College is again pleased to record The College’s cash position remains a 100% overall pass rate and an A*-C healthy, and our strategy of continued success rate that is significantly above investment in the resources and the national comparator. WBL results for infrastructure of the College has been both the College and its B-WBL consortium maintained. The Colleges ‘net funds’ are expected to be strong again and are position (cash less borrowings) has well above the last available national only reduced by £0.3m despite capital comparator. These results are a testament expenditure of £1.6m during the year - to the hard work of staff in all areas of further evidence of our ability to provide College activity. high quality education and training within increasingly stringent financial The College’s new build Campus6 was settlements. opened by the Cabinet Secretary for Education in October 2017 and the state- At this point I want to express my personal of-the art facilities have been the base gratitude to a tremendous business for A level delivery, beauty and hair salon support and academic staff team, whose services and sports activities during the commitment and dedication ensures that academic year. In 2017 the College was all our students have the best possible successful in obtaining a £3.3 million grant learning experience here at Pembrokeshire from the Welsh Government to match College. I also want to take this fund the College investment in Campus6, opportunity to thank the Governing Body demonstrating our ability to deliver for their selfless support and direction high quality education and invest in the throughout the academic year. As a development and upkeep of the campus College, we are indeed privileged to have at the same time. such a strong staff team and governing body, and I thank them most sincerely.
5 1. Strategy
The College’s mission is to inspire excellence, empower individuals and develop the future workforce. To achieve this we aim to provide the highest quality education, training and support services, enabling all our learners to realise their full potential.
In delivering for the benefit of learners, the College fulfils important roles, within Pembrokeshire and Wales, in enhancing the skills of our students, which contribute to the success of local employers and, more generally, to the local economy. the local economy.
The ‘stakeholders’ in the College
Community Economy Employers Higher Education
College
Regional Learning & Students Schools Welsh Government Local Authority Skills Partnership
6 The College provides learning for 13,000 students, The College’s Advanced Level Centre – Campus6 the majority of whom are engaged in vocational – has been in operation for a full academic year. studies, either at the College, at the premises of Almost 190 full time students enrolled on AS levels their employers, or through our B-WBL consortium in September 2017, and an additional 50 students arrangements. enrolled on a single A level as part of partnership arrangements with schools. Retention during Given the diverse activities undertaken by the the year was a pleasing 92% and AS outcomes College, ranging from the teaching of basic skills provided strong evidence of value added (literacy and numeracy), vocational studies (at the and learners performing better than targeted College and in the workplace), ‘A’ levels and higher outcomes. level degrees and diplomas, the College works in collaboration with a number of stakeholders in Further Education order to achieve its strategy. The core of the College’s work revolves around further education. The College continues to Local Authority develop its provision to meet the needs of During FY18, we have been at the heart of employers and industry, and fundamental to this significant change in the delivery of post 16 is the provision of learning for 16-19 year olds. education in North and mid Pembrokeshire. The majority of the county’s 16 year olds come Changes agreed for September 2017 meant that to the college for further training, with others AS level students from Ysgol Dewi Sant and Ysgol remaining in school to study A levels. This is one Bro Gwaun attended Pembrokeshire College, of the reasons why we have been committed to prior to enacting a change of age category for bringing all of post 16 together on the College both schools in 2018. The College has strongly campus. supported this direction of travel during its consultation phases. There are significant Full time student numbers increased by 6% in benefits for learners, including: FY18 over FY17; this increase achieved against a backdrop of a declining demographic. Level 3 • Better choice of subjects, based on demand, provision (A level and equivalent) now accounts as the achievement of “critical mass” allows a for 60% of overall provision – reflecting Welsh greater range of 27 AS subjects to be offered; Government priorities to increase higher level • Improvement in quality standards, due to skills. We remain committed to post 19 skills, and increased access to curriculum choice and whilst we have seen a sharp decline in enrolments access to excellent teaching and resources; in recent years following the significant reduction • Improved advice and guidance for students, in Welsh Government part time funding, employer with College staff attending Year 10 and Year led delivery remains a priority. 11 school pupil groups to offer appropriate guidance as courses available and best fit; • Investment in the development of the best teaching skills and resources in the county for the benefit of the learner; • Avoiding duplication and waste, resulting in effective deployment of resources.
7 1. Strategy cont’d.
Work based learning The teaching of skills to employees who are in and this process will commence again in 2019 for work is critical for “up-skilling the work force” and Apprenticeships. therefore is of significant relevance to: The College has, since August 2011, been leading • Individuals by providing the means whereby a work based learning consortium – “B-wbl”, they can fulfil their potential; delivering different levels of apprentice training • Employers by improving the skills of their and training for employment. The Consortium workforce; originally consisted of 6 partners (comprising • The local and national economy by improving further education colleges, private companies and the skill base available for driving economic voluntary sector organisations), and secured a growth. contract for £6.5m in 2011. This composition of the consortium has changed over the years, and now The Welsh Government provides funding to operates two ‘hubs’ – one in South West Wales, and organisations in the public and private sectors, one in South East Wales – and the contract value to deliver work-based learning. These training has increased to £13m (excl pressure point request) contracts are the subject of competitive tender in FY18.
The Consortium is now the third largest contract holder in Wales and the volume of delivery can be seen in the following chart.
8 Delivery volume compared to the network 2017/18
There are 18 other providers of apprenticeships and eight other providers of traineeships. The total contract values for 2017/18 were apprenticeships £114 million (B-wbl £9.9 million, 3rd largest provider) and traineeships £33 million (B-wbl £3.2 million, 3rd largest provider).
The Consortium delivers across a range of routes as shown below with the Health and Care (45%) priority sector being the largest followed by Engineering (22%).
9 1. Strategy cont’d.
Higher Education The College fulfils an important role in delivering Since 2011, University of Wales, Trinity St. David higher education courses in the county. The (‘TSD’) provided the funding, the degree awarding provision of such courses (full time and part time) powers and quality oversight for the majority of our is important to the learner in Pembrokeshire for the Higher Education provision. Their expertise in areas following reasons: such as art and design is especially important, given the curriculum make up within the College. • There is no Higher Education Institution (‘HEI’) in Pembrokeshire, offering courses; In April 2014, the ‘College University Skills • Students who are in employment, but want to Partnership’ (CUSP) was formed, with Swansea pursue higher education qualifications are able University, Gower College Swansea, Group NPTC to do so; and Coleg Cambria. This partnership has been • Some youngsters for financial and/or family formed to drive vocational higher education based reasons are unable to go away to study and on employer requirement, through a joint venture want to remain at home, but still want to partnership agreement. The College is currently pursue a higher education qualification; providing higher education engineering through • Employers want to up-skill their employees, by this partnership. allowing them to take part-time higher level courses; • Adult returning learners can find the college environment more appropriate for their learning, and more convenient.
Our Locality Similarly, we are committed to supporting our The College seeks to work closely with employers local community. Despite cuts in funding, we have, and the business community in Pembrokeshire, and through alternative income sources, been able to realises that this remains an area for continuous maintain community provision. We also provide development. We have some excellent working services to the community through charitable practice with employers, and we are seeking to activity. replicate this across all areas of the College.
10 2. Learner Performance
The success of a school, college or university is The principal areas of the College’s activities relate reflected in the success of its students. In this to further education – vocational and academic respect FY17 has been a hugely successful year for courses - and work based learning (together 75% of the College. our activities), as shown in the chart below: -
PC
Further Education Outstanding Results
The College provides courses over the previous 5 year period rate compared to a national for full time students, mainly have shown an improving comparator of 87%. Results for 16-18 years of age, and part trend and for FY 17 remain in 2017/18 are expected to be in time students. Student the top quartile for the sector line with these outcomes. outcomes (all qualifications) with an overall 88% success
11 2. Learner Performance cont’d.
A level results A level results for FY18 are confirmed, and are strong at A*-C being 6 percentage points above the national comparator. A/A* were below national comparator and will be a focus of attention for 2018/19. We were delighted that we had a 100% pass rate at A*-E, and 84% of entries achieving A*-C (78% nationally). The table and graph below show the trend over the last 4 years, which in the main, has been above national comparators.
A Level Results 2015/16 2016/17 2017/18 2017/18NC
A/A* 29.0% 25.0% 22.1% 26.3% A*-C 78.0% 78.0% 84.1% 76.3%
A*-E 100.0% 100.0% 100.0% 97.4%
12 Further Education Learning Areas Further Education results have continued to above national comparators. The table overleaf improve over the last 5 years. For FY17, all sector demonstrates this sustained improvement: subject areas are classified by Estyn as ‘good’ or ‘excellent’, with overall success rates of 88%, 2%
13 2. Learner Performance cont’d.
The graph below shows the outcomes for FY17 of key performance indicators for completion, attainment and success. The blocks indicate College performance over the last three years, whilst the broken line indicated national comparator success rates for 2016/17.
Work Based Learning: apprentices and trainees Higher Education and Progression to University For Pembrokeshire College as an organisation, The ability to provide both A-level routes and framework success rates for FY18 are expected to extended diploma routes allows students to choose finalise at 83% two percentage points above the the best pathway for them to progress to higher last available national comparator of 81%. The education. Extended Diplomas are the equivalent success rate of the Consortium for FY18 is expected of 3 A-levels, and this year 35% of students to be 84%. Success rates are improving in most achieved full distinction*/distinction profiles – providers involved within the Consortium, and that is, the equivalent of 3 A or A*s at A level. As a where problems have been identified, relevant result, the College is delighted to report that almost action is taking place. The ability to improve 200 students were accepted by universities for learners’ outcomes, regardless of where learners September 2018. are situated or from whom they receive direct delivery was commented on in the Estyn Inspection report of June 2015, and reflects the success of the management team in adapting to managing a large number of sub-contractors.
14 Student wellbeing and safeguarding
Community Learning The College continues to focus on improving The College’s Adult and Community Learning (ACL) provision comprises short courses under the brand of all aspects of safeguarding, care, wellbeing and STEP Forward and a selection of accredited employability support of learners. During FY18, significant courses delivered to long-term unemployed by the emphasis has been placed on the PREVENT Welfare to Work team. In conjunction with STEP Forward, agenda, raising awareness of and protecting the College delivers a lottery funded project called students from the risk of radicalisation. Our The Reach which provides training subsidies for the safeguarding team has continued to fulfil a hardest to reach learners throughout Pembrokeshire pivotal role, identifying students at risk, and areas and Ceredigion. Courses are delivered at community of development activity have included wider venues and at the main campus. Courses are planned in implementation of the electronic Learner Profile response to need through consultation with communities, and Learner Voice. individuals and groups. “Being work ready” Employability courses are delivered to the unemployed – qualifications that enhance CVs and are attractive to Unfortunately, on entry many learners are not potential employers are the main focus of this provision. ready for work as they are lacking in basic skills. On In addition, support is provided to customers in general entry, over 80% of learners are assessed as having employability including job search, CV workshops, literacy and numeracy skills below level 2 – GCSE interview skills etc. Effective employer engagement level. allows enhanced opportunities to those seeking work. This involves some advocacy on behalf of learners with health issues which reduce their general employability. 15 Outcomes are particularly good in this area of delivery. 2. Learner Performance cont’d.
Before these students can embark on courses and employment, the College has to improve these basic skill levels. All students not having achieved a grade C in English or Mathematics at school are required to resit these qualifications when they come to the College. We are currently working with approximately 1000 full time students in these areas, on provision which improves their levels of skills, and better prepares them for the world of work.
Skills The College provides vocational provision in all sector subject areas enabling access to learners in Pembrokeshire to the broadest curriculum offer. The sectors for which vocational courses are offered largely reflect the economy of Pembrokeshire. The College has worked hard to develop strong links with local employers. The College estimates that it works with 4,000 employers and, therefore, is uniquely placed to help students realise their potential for employment.
16 519 learners completed either a Welsh language skills unit or a Welsh language awareness unit/activity
In addition, the provision of work-based learning weekly classroom based sessions and one-to-one allows employers to up-skill their workforce. The mentoring sessions. Staff were also supported by level of part-time students in the College reflects the Bilingual Champion and the Welsh Language the engagement that employers have with the Development Officer to increase Welsh-medium/ College and their commitment to investing in bilingual opportunities and materials for learners. their workforce. College learners were very successful in the 2018 National Urdd Eisteddfod, winning 5 Gold, 3 Silver Other areas of focus: and 4 Bronze medals for various art and design competitions. Welsh Language and Culture In FY18, the College continued to implement its The College continued to deliver Welsh-medium Welsh Language Scheme and was successful Agricultural Engineering vocational course for in achieving its strategic targets relating to the Ysgol y Preseli’s Year 10 and 11 pupils, with a total Welsh Language. Welsh Language continued to of 7 pupils attending in FY18. be integrated into the LAPs and as a result 240 assessments were completed either through the Blended Learning medium of Welsh or bilingually. A further 519 The College has invested strategically in on line learners completed either a Welsh language skills learning, recognising that our student body unit or a Welsh language awareness unit/activity uses technology as a ‘norm’, and that it has an and 357 learners participated in various Welsh important part to play in engaging students in language and Welsh culture events throughout learning. Our dedicated e-learning team have the year. worked with academic staff to provide modules of learning on line. We have in the first instance Staff also engaged in the ‘Work Welsh’ national brought this approach into our Diplomas, and are project in order to develop their Welsh language seeing improvements in quality and in flexibility skills in the classroom environment. A total of of learning as a result. We see this as being a 24 staff signed up to the project and received significant area of development for the College.
17 3. Our Staff
The success of our students is ultimately down through the following: to their own hard work. However, we are very fortunate to have 505 dedicated staff that strive to • Sharing best teaching practices amongst the provide our students with the opportunity to fulfil staff their potential. The College is privileged to enjoy • Observation of teaching through positive the level of commitment provided by its staff. learning walk and observation models • Involving staff in quality developments, As an aspirational organisation, we are proud of encouraging a staff led approach both the quality of our teaching and learning and • Individual self-assessment of performance and the support that we provide for our staff. Our appraisal collective aim is to improve the experience of our • Learning and Teaching support through learners and the outcomes that they achieve. coaching • Inspirational training days In developing our people practices we aim to • Improving systems for learning and teaching nurture the pride and aspiration of our staff, help • The ongoing development of the PEOPLE to focus it and increase the visibility of all College programme, based on our College core values achievements. We aim to attract staff who value • Ensuring staff are encouraged to continue their the opportunity to advance and share knowledge personal development and have the necessary within an open and transparent, supportive and time to do so. inspirational environment. In doing so we have the following priorities: Continuing professional development under our ASPIRE programme remains a priority and, in The Human Resource Strategy aims are to: addition, we continue to drive forward a mandatory training programme for safeguarding, positive • recruit and retain the best staff; behaviour management, equality and diversity and • remunerate staff fairly; safer working practices. ASPIRE encourages staff • develop positive employee engagement and to undertake their own development, and offers morale; support to teaching staff using innovative coaching • develop a high-performance aspirational method and models. We continually review the culture; development needs of our management teams • promote a safe, healthy and equal environment and have an on-going leadership and management in which staff take a proactive approach to their development programme, further enhancing own wellbeing. our effectiveness as managers, our knowledge, understanding and skills. Quality Assurance We pride ourselves on our continual focus to The quality assurance processes in the College improve. The structure of Aspire consists of Quality could not be achieved without the active support Improvement, Quality Assurance, Learning and and engagement of our staff. Their commitment Teaching and Staff Development, enabling the to quality is what drives the success of the College. Aspire Team to effectively integrate all aspects of The performance of the College in the most recent Quality Improvement. This structure utilises the Estyn inspection is a testament to the excellence of way these elements of provision impact on each our staff in all areas of the College, aspiring to be other, supporting and inspiring staff, improving the best we can be, in everything we do. systems and processes and building on the existing aspirational culture of the College, reinforced
18 FE: Estyn’s Judgements - January 2017
Pay Equality The Equality Act 2010 (Specific Duties and A positive percentage shows that on average Public Authorities) Regulations 2017, requires women have lower pay than men. A negative organisations employing more than 250 percentage show that on average men have lower employees to provide an annual report showing pay than women. the pay gap between its male and female employees. There is no statutory duty for The College is required to provide: Colleges in Wales to publish that data but a small number of Colleges have chosen to do so. • The difference in mean pay between genders; • The difference in median pay between The gender pay gap is the difference between the genders; average earnings of men and women. Any gap is • The number of men and women in each expressed as a percentage of male earnings. quartile of the range.
Calculated Pay Gap Median Mean Pembrokeshire College 9.7% 5.5%
This shows that a gender pay gap exists within the College, however the results when compared with relevant benchmarks in the education sector, show a favourable position.
19 3. Our Staff cont’d.
Pembrokeshire College has a current split of 63% female staff and 37% male staff.
The data identifies that there is a slightly larger gender pay gap in the lower quartile than in most others. It is acknowledged that more females than male work on a part time and/or term time only basis and that a larger proportion of the term time only roles sit within the lower pay quartile of the College (eg learning support and day nursery) – this is the reason for the larger gap.
It is pleasing to note that in the upper pay quartile the pay split reflects the gender split across the College overall. This would indicate that there is no ‘glass ceiling’ and no gender based barriers to promotion within the College.
Pembrokeshire College has a fair and transparent pay system with structured pay spines (in the case of the Lecturing pay spine, agreed nationally with the recognised Trade Unions). Appointment to any role is based on qualifications, skills and experience regardless of gender.
20 Equality & Diversity We value the talent, skills and knowledge of every individual and we recognise that this is a key contributing factor in achieving excellent standards. We aim to create an environment that respects the diversity of staff and learners and enables them to achieve their full potential, to contribute fully, and to derive maximum benefit and enjoyment from their involvement in the life of the College.
To date there have been no reports of concerns from any staff regarding unacceptable behaviour in relation to Equality & Diversity. College staff have specific training and as a result has an open, welcoming and tolerant culture for both staff and learners.
21 4. Recognition of Excellence
The College encourages students and staff to take part in Other Competitions competitions, locally, within Wales, the UK and globally. We Skills Competition Wales, Advanced Welding – believe that such competitions have the following benefits: Jay Blair, 3rd Place Advanced Bricklaying Regional Heats – Luke • Allow students and staff to achieve recognition for their Russell, 1st Place outstanding skills; WorldSkills Wales Patisserie and • Enable the College to benchmark the skills of its Confectionery Finals – Ffion Howells, Silver; students and staff with the best in Wales and the UK; Ronia Wheeler, Bronze • Provide exemplars of excellence, which can inspire SkillWeld South Wales Semi Final – Jay Blair, current and future students to raise their sights with 2nd; Joshua Nash, 3rd regards to performance. Physics Olympiad – Beth Davis, Oliver McIntosh and Ethan Webster achieved Merits Students Sky Arts Artist of the Year 2017 – Former College learners achieved huge successes in regional and student Theo Crutchley-Mack national competitions, and we would wish to highlight their St Davids Award 2018 – Mair Elliot winner of the achievements. Our “roll of honour” is as follows: Citizenship category St Davids Award 2018 – Bethany Roberts, finalist in the Young Person category British Physics Olympiad - Jake Thomson, Competition Winners 2017/18 Silver Award; Jeremiah Owen, Bronze 2 Award Salon Cymru – Jodie Warlow, 1st Place, WorldSkills UK Training and Development Programme Complementary Therapies Massage Christopher Caine, Joiner EESW Commercial Potential category winners Sam Everton, Hospitality – Valero Energy Engineering Apprentices, Ben Brickle, Ieuan Davies and Imogen Reynolds Euroskills medalist IET Young Women in Engineering Awards – Christopher Caine, Joiner Ellie Wilson (finalist – top ten in UK) WorldSkills UK Finals Agored Cymru Access to HE Learner of the Year – Racheal Ellison Christopher Caine Pembrokeshire Sports Awards – Student Joinery, Part of Squad UK Contribution to School Sport – Nina Garcia Sam Everton BTEC Health Care Learner of the Year – Bethan Culinary Arts, Part of Squad UK Thomas, highly commended Orry Franklin BHS Helen Barton-Smith Silver Stirrup Award Construction Metalwork, Bronze – Mike Butcher (Lecturer) Gwen Evans Inclusive Skills ICT Entry L2, Silver Richard Williams Inclusive Skills Restaurant Service Entry L1, Silver Theo Knipe Graphic Design, Highly Commended Samantha Stables Graphic Design, Not Placed Joshua Tuson Welding, Highly Commended
22 Sports Sir Benfro Eisteddfod During 2017/18 our Sports Academy supported Solo from a Musical – Melissa Fletcher, 3rd a record number of students to participate in Folk Song – Melissa Fletcher, 3rd their chosen sport at regional, national and Monologue – Melissa Fletcher, 1st international level. 2D Drawing – Josh Harold, 1st 2D Creative Work – Cornerstone, 2nd International Honours Monochrome Print – Jacob Evans, 1st; Lowri Ryan Foot: Welsh Sevens World Cup Winner for Field, 2nd the Deaf. Colour Print – Lily Wellan, 1st Lleucu George: Full International Honours for Series of Monochrome Prints – Jacob Evans, Women’s Rugby 1st James Tomlinson: GB Athletics Discus Thrower Series of Colour Prints – Lily Wellan, 1st (3rd in the world in his age group) 3D Creative Work – Rhiannon Whitby, 1st; Jordan Legg, 2nd; Samuel Knight, 3rd Under 18’s Welsh Football Creating an Artefact – Hannah Childs, 1st; Leah Ben Fawcett, Jack Wilson & Jake Merry Knowles, 2nd; Ellie Colbeck, 3rd
Welsh Colleges National Eisteddfod Kieran O’Connor & Jonny White: Cricket 2D Drawing – Josh Harold, 3rd Jack Miles: Badminton 2D Creative Work – Cornerstone, 3rd Eliza Martin & Rhys Davies: Cross Country Monochrome Print – Lowri Feild, 1st Marged Williams & Amy Rothero: Rugby Colour Print – Lily Wellan, 2nd Series of Monochrome Prints – Jacob Evans, Sir Benfro Team 18’s 1st Will Blackburn, Jack Brown, Tom Carrington, Series of Colour Prints – Lily Wellan, 1st Thomas Clarke, Josh Davies, Lewis Davies, Creating an App Under 19s – Shannon Roach, Zac Davies, Owain Evans, Josh Hamer, Isaac 1st; Callum Davies, 2nd; James Lewis, 3rd Hathaway, Joseph Owen, Kieran Scourfield, Rhys Creating an App Under 25s – Dylan Bolton, 1st; Symmons, Lewis Tingay, Iwan Twigg & Dylan Layton Morgan-Jewitt, 2nd; Tom Bee, 3rd Walsh Ted Breeze Memorial Trophy – Lowri Field
Plus: Thea Llewellyn: 3-day eventer Josh Davies: Plays for the Scarlets Chloe Hood: Welsh & GB Weight Lifting Team
23 5. Financial Performance
Overview The key performance indicators (KPI) in the table below are the main measures used to evaluate how successful the College has been in its financial performance.
Key Performance Indicators FY17 FY18
Earnings before interest, tax, depreciation and amortisation (EBITDA) (£’000) £1,129 £1,468
Surplus/deficit before other gains and losses (£’000) (£294) (£268)
Unrestricted reserves without defined benefit pension provision (£’000) £11,447 £12,172
Unrestricted reserves with defined benefit pension provision (£’000) £3,281 £6,330
Days net liquid assets to total expenditure 65 53
Current ratio 1.69 2.01
Gearing ratio (external borrowing/unrestricted reserves) 0.10 0.08
EBITDA as % total income 4.37% 5.04%
Surplus/deficit before other gains and losses as % total income (1.13%) (0.92%)
WG grant as % total income (excl. Franchised Provision) 82.86% 83.21%
Total pay expenditure as % of total income (excl. Franchised Provision) 74.95% 74.16%
The results for the FY18 are good, and we believe achieved by tight financial control and also through compare favourably with other institutions in innovation and creativity in leveraging the funds Wales, which given the rural challenges of the from the Welsh Government (which provides the County and specific funding cutbacks, is a major majority of our funding) and other external sources achievement. of income.
One of the main measures the College uses to The College is reporting a deficit of £268k for the assess financial performance is ‘adjusted EBITDA’ year, which is in line with the deficit of £294k (as calculated on the Statement of Comprehensive reported in FY17. This however is after accounting Income page 54). The ‘adjusted EBITDA’ removes for £1,026k (FY17 £781k) of pension adjustments. non cash and one off costs. It is an important The College made a surplus of £758k (FY17 £487k) measure as it shows the Colleges ability to generate before accounting for these ‘non cash’ pension cash to invest in the future. Relative to the sector in adjustments, an increase of 56% on last year. The which it operates, the College generates significant following table explains the movement between EBITDA each year to ensure future capital the EBITDA of £1,468k and the deficit position of investment, despite increasing financial constraints £268k. on the further education sector. This has been
24 Delivery volume compared to the network 2017/18
FY17 FY18 £’000 £’000 Adjusted EBITDA (see page 54) 1,129 1,468 Net Interest credit / (cost) 7 (6) Staff restructuring costs (8) (23) Depreciation (938) (1,105) Release of deferred capital grant 305 422 (Loss)/Gain on sale of fixed assets (8) 2 Surplus before pension adjustments 487 758 FRS 102 service charge to staff costs (559) (798) FRS 102 pension interest charge to interest and other finance costs (208) (203) Enhanced pension cost (14) (25) Deficit for the year (294) (268)
The College’s reliance on Welsh Government (WG) area the College represents which has a negative is highlighted in the KPIs. WG grants account impact on class sizes when compared to city for 83% of income (Total Income excluding centre colleges. The College also does not benefit franchised provision) to the College. The reliance from the economies of scales the larger colleges has increased slightly year on year. Continued do. diversification remains crucial to ensure the funding from Welsh Government is used to Welsh Government Recurrent Funding leverage other activities sourced from other The majority of the College’s funding comes from funds. Increasing the diversification of income the Welsh Government as recurrent funding. sources remains a strategic goal for the College. The grant to the College is based on the volume of education provided. The further education The final KPI in the table (Pay to Income ratio) element of the table shows an increase in funding shows that 74% of the Colleges income is spent for FY18 of £563k 5.8% on the previous year. This directly on pay costs. This ratio is higher for relates to 1.25% unit price increase amounting to Pembrokeshire College when measured against £120k and growth funding of £443k. other colleges in the sector. Factors affecting this include the rurality of the College, the rural
25 5. Financial Performance cont’d.
Welsh Government Grant Income FY14 FY15 FY16 FY17 FY18 (excl. franchised provision) £’000 £’000 £’000 £’000 £’000 Further Education Recurrent Funding 11,572 11,330 9,780 9,730 10,293 Work Based Learning Funding 3,001 2,708 3,155 3,521 3,637 Total Welsh Government Grant Received 14,573 14,038 12,935 13,251 13,930
The table below shows full time learners remaining broadly static whilst there is a decrease in part time learners following the 50% reduction in part time funding instigated during 2015.
FE Learner Numbers FY14 FY15 FY16 FY17 FY18
Full-time 1,713 1,643 1,691 1,669 1,733 Part-time 6,744 5,519 4,616 3,818 4,026 Total 8,457 7,162 6,307 5,487 5,759
Work Based Learning - DfES Contract Learners The College is the lead provider for a successful work based learning consortium arrangement with ten others – a mixture of FE, private providers and the voluntary sector within South Wales. The Consortium current contract period is 2015-19.
During FY18, the College saw a 3% increase in its own work based learning income.
WBL Learner Numbers FY14 FY15 FY16 FY17 FY18
Employability Programmes 323 388 391 403 292 Apprentices 771 685 802 882 974 Total Learners 1,094 1,073 1,193 1,285 1,266
HE Learner Numbers (excluding International) Higher Education enrolments over the same years are presented in the table below:
HE Learner Numbers FY14 FY15 FY16 FY17 FY18
Full-time 72 50 46 51 55 Part-time 252 202 162 125 108 Total 324 252 208 176 163
Full-time and part-time numbers are broadly consistent but have declined overall. This is at odds with the College’s strategy to drive up Higher Education activity within the College.
26 Other External Funding Streams The College is committed to its income guarantee that further applications made for generation strategy and is continuing to pursue funding within the 2014-2020 funding window and exploit alternative funding sources in order to will, if successful, be honoured. There is currently support innovative developments in line with the no confirmation on where replacement funding needs of the learner. will come from and the respective priorities.
During FY18 the College continued delivery of Pembrokeshire College secured ‘Sector Skills two significant European Social Fund projects. Priority Fund’ (SPPFE) for the second year. These are: ‘Skills for Industry’ led by Gower This funding enables the College to invest in College Swansea which aims to upskill the relevant staff training in priority areas and course existing workforce of SMEs and ‘Cynnydd’ led by development and/or delivery aligned with Pembrokeshire County Council which provides regional industry priorities in response to areas of support to learners at most risk of becoming demand identified in the Regional Learning and NEET (Not in Education, Employment or Training). Skills Partnership’s plan. Both projects are strongly linked to the Colleges core business. Cash flow The need to generate cash surpluses is to allow The national vote to leave the EU has had no the College to invest. The College has used the immediate effect on these existing funding cash it has generated over the last five years, as streams. We understand from the H M Treasury follows:
FY14 FY15 FY16 FY17 FY18 £’000 £’000 £’000 £’000 £’000 Cash flows from operating activities 2,405 (211) 712 1,094 1,321 Cash flows from Capital (net of grants) (559) (760) (309) (2,397) (1,631) Cash flows from investments 42 39 30 11 9 Cash flows from financing (129) (95) (136) 365 (147) Increase/(Decrease) in cash & cash equivalents 1,759 (1,027) 297 (927) (448) Cash balance (Including deposits) - Opening balance 4,577 6,336 5,309 5,606 4,679 - Closing balance 6,336 5,309 5,606 4,679 4,231
Over the last 5 years the College has invested the College has access to £1m of a revolving nearly £11 million (of which £4.9m was funded credit facility to draw upon when required. by capital grants) on capital expenditure. Despite In FY18 Pembrokeshire College secured an the £6.1m cash outlay on capital expenditure, the ‘Industrial Equipment Grant’ from the Welsh College cash balance has only reduced by £2.1m Government of £390k which enabled the College over the period. to invest in industry standard equipment to support delivery. Following completion of Campus 6, a £6.6m capital project, the College maintains the ability to invest heavily in capital projects should the need arise. Alongside the cash balance of £4.2m
27 5. Financial Performance cont’d.
Balance Sheet The balance sheet is set out on page 56. This shows a healthy and liquid balance sheet. Net assets have increased £3m to £11.8m, this improvement is down to a £3.3m actuarial gain on the assets held in the pension fund. Despite this gain the liability for the LGPS pension fund still stands at £5.8m. The reporting requirement of this liability on the Balance Sheet is the same for all organisations included in this scheme, including local authorities and other public bodies.
Subsidiary Company “Pembrokeshire Apprenticeship Scheme” ceased trading in FY18. The objective of the scheme was to provide sponsored Engineering training opportunities with SME’s in Pembrokeshire. This scheme was supported through sponsorship by the large Oil and Gas companies based in around Pembrokeshire. The financial results of Pembrokeshire Apprenticeship Scheme have not been consolidated with those of Pembrokeshire College as the Corporation Board considers that the amounts involved are not material. A separate statement of the affairs of Pembrokeshire Apprenticeship Scheme is set out in note 25 to the financial statements.
28 6. Local Economy and Enterprise
The College plays an important part in Community the economy of Pembrokeshire. The key We are aware of the importance of role from an economic perspective is the relationships between the College improvement in the skill base of young and the community it serves. Close people and employees in work. ESF relationships are cultivated through Projects support workforce development a wide range of networks, positive and close links with curriculum areas relationships and community activities, exist through FE and WBL delivery. examples include community projects delivered through the Princes Trust Team Employer Engagement Programme. Having previously delivered the DWP Work Programme, we believe we play Within our curriculum, the importance an important role in the local economy of the environment, sustainable and improve opportunities for those development and global citizenship seeking work in Pembrokeshire. The remain important themes. Our learners College has skills and expertise allowing contribute to the local community it to deliver this support and has in many ways, from direct project through a number of ESF Projects and assistance to fundraising by creating an Employment Bureau been able to offer a free recruitment The Environment service to local employers. This has The College has invested approximately been well received by employers and £11 million over the past 5 years in provides an opportunity for the College capital schemes and continues to to gain an understanding of their staffing invest a high level of expenditure in requirements, recruitment processes maintenance programmes to provide an and expectations. environment conducive to learning.
Capital Expenditure FY14 FY15 FY16 FY17 FY18 £’000 £’000 £’000 £’000 £’000 Land & buildings 207 73 453 5,755 778 IT equipment 318 550 287 743 350 Other equipment 51 40 21 660 235 Total 576 663 761 7,158 1,363
29 6. Local Economy and Enterprise
Estyn report on management of resources management of its estate. For example, it has The College’s Learning Environment was classed as reduced its carbon footprint by about a third in Excellent in the January 2017 Estyn inspection. The the past year; report identified: • Overall, outcomes for learners are good and the College offers good value for money. “All College buildings and facilities provide learners with learning facilities and The new Campus 6 project was completed at the classrooms that are of a high standard, end of August 2017 after 13 months of construction with good access to ICT and resources. work. This £7m investment, which was part There is good internet connectivity that funded by the Welsh Government under their 21st enables learners to use their own devices, Century Schools Programme has seen the College and the College provides all learners with create outstanding new facilities for learners, with software. Learners have a broad range providing a stimulating and inspiring learning of learning options that help them to environment being at the forefront of the design. develop digital competence. Nearly all These new facilities have specifically focused on workshops and specialist classrooms accommodation for learners who are studying A contain modern, industry standard levels, Sport Science and Hair and Beauty courses. equipment that meets the needs of In addition to this the new Campus 6 building also learners well. A classroom based at a local incorporates a new sports hall and fitness suite riding centre is well equipped with ICT and which has benefited the health and wellbeing of all 3D learning resources. The College has learners and staff. The building was officially open developed an exceptional virtual control by AM Kirsty Williams in October 2017. room that enables learners to simulate a wide range of industrial process control The College has submitted an updated Strategic operations in a realistic environment.” Outline Plan for capital development during the next 5 years. If approved, plans are to refurbish In terms of Resource management this was classed areas of the College including Engineering and as Good. The report identified the following areas: Plumbing workshops, to create more flexible accommodation for learning and teaching, to • It routinely reinvests savings, such as £750k create additional refectory and social space, from reduced energy costs, into improving enhance the LRC, develop offsite provision in College services and provision further; animal care in conjunction with local industry and • During a period of reduced funding, the College to build a 3G surface in partnership with Narberth has grown its reserves, enabling it to invest in RFC. building new provision to meet its strategic aims of supporting local learners; • The College takes very good account of sustainability and energy efficiency in the
30 Energy Since 2002/03 the College has implemented a number of energy efficiency improvements, which have led to significant energy savings. The movement in energy statistics between FY03 and FY18, for the College achieved by the above, is shown opposite.
Despite growth of 38% in space occupied, the College has been successful in driving down gas and electricity consumption by 44% and 33%, respectively over the last 15 years.
Waste The College set itself a target of achieving 70% waste recycled by 2014 and to maintain every year after. i
The College has met this target in all but one of the last five years and achieved its highest ever proportion of waste recycled in FY18, these statistics show the Colleges commitment to this target. Staff and learner printing is closely managed to avoid waste. In addition, investment has been made (introduction of central and there are communal waste printing locations and reduced segregation areas around the printers in office) in order to College to encourage staff to reduce usage. To increase separate their own waste. recycling in future years, office bins have now been removed
31 7. Governance
As a provider of employment, training and education, we value the diversity of our staff and learners. We are committed to providing a fair, equitable and mutually supportive learning and working environment for our learners and staff and this is reflected in the core values of the College and in our Strategic Equality Plan.
Other stakeholders During FY14, the Board introduced a membership body - the Pembrokeshire College Advisory Forum. This Forum has representatives from our stakeholders in Pembrokeshire and beyond. Trade bodies, Chamber of Commerce, higher education, DWP etc. This Forum has proved to be of significant advantage to the College during FY18, in both an advisory and consultative role, and in securing community ownership and involvement in the College’s future.
FY18 saw Caroline Oakley take on the role as Chair of the Corporation Board following the resignation of Ed Tomp, who was interim Chair, at the end of his five year tenure as governor. The College is hugely appreciative of Ed’s contribution to the life of the College. The end of FY18 also saw the retirement of the College Principal and CEO Sharron Lusher. Sharron has led the College through a difficult journey during fundamental changes to further education funding and local education reorganisation, overseen the build of the new Campus6 and ensured the College’s outcomes were placed firmly in the top quartile in the sector. Her contribution to the College has been significant and we have been hugely appreciative of her leadership and direction over the past seven years. Sharron’s expertise will not be lost as she continues in an advisory capacity to the governing body.
Following Sharron’s retirement an interim structure has been put in place where myself, Dr Barry Walters (Previously Deputy Principal) has been appointed Interim Principal. The Corporation Board will be undertaking a recruitment process for a permanent Principal during FY19.
We had two student governors serving on the Board in FY18. Leah Grey and Bethany Roberts were appointed to the Board, following their election by fellow students, and their contribution to the Board has been exceptional. Leah has been re-elected for FY19 along with a new student governor, Charlie Marsh.
32 8. Future Prospects
Changing landscape have different, but complementary Pembrokeshire College is facing visions. With the imminent development an exciting future. Having grown – of Degree Apprenticeships, and physically and symbolically in recent the future implementation of years – we are extremely well placed recommendations from the Diamond to deliver quality education for Review, we are reviewing how best we Pembrokeshire and South Wales. can grow our higher education, and seek to reverse the declining trend in The face of our further education numbers. provision has changed since September 2017, when we welcomed post 16 Welsh Government Policies learners from Ysgol Bro Gwaun and In October 2017, the Welsh Government Ysgol Dewi Sant. The range of A level completed a consultation on ‘Public curriculum on offer to these students at Good and a Prosperous Wales – a single location, the focus of support Building a reformed PCET sector’. and the collaborative arrangements This consultation proposed that between the College and two schools an overarching body for all post 16 means that these students will have the education and training be established, very best opportunities we can offer at ‘arms length’ from Government. The to help them progress in their chosen body – to be known as the Tertiary career. Education and Research Commission – would have responsibility for planning, We anticipate shortly the competitive funding and other functions currently tender period for the next round of undertaken by Welsh Government work based learning apprenticeship for post 16 education. Consultation programme. We are currently waiting outcomes were published in October for guidance from Welsh Government 2018 and appear broadly supportive but on the future structure of work based with suggestions for further refinement learning, given the growing importance in many areas. of the regional agenda. We shall ensure that the College is best placed to take The regional agenda is also growing in advantage of the opportunities afforded pace, and for the first time in September by the tender. The College was successful 2018, funding allocations have been in the Pre-Qualifying Questionnaire for influenced by regional employment and Working Wales Youth Traineeship being skills plans. approved to submit a tender and we are currently awaiting the outcome.
Our Higher Education future has taken on a new dynamic, having partnerships with two Universities, both of whom
33 8. Future Prospects cont’d.
Funding Further Education Colleges in Wales continue to However, despite the cutbacks in public funding, face challenging funding settlements. For FY18, a our tight control of cost has enabled us to reduce 1% increase to the unit rate for recurrent further our cost base in line with anticipated funding education funding was allocated, whilst increases decreases. We have also continued to subsidise in staff salaries rose by 3% per annum accounting activity which we believe is ‘mission critical’, for cost of living and incremental uplifts. This puts including the operation of the A Level Federation pressure on the underlying core activity of the and higher education. Inevitably though, there will College, and the need to identify and implement be a reduction in the quantum of education and efficiencies year on year. training that is offered to individuals in our county.
Both part-time further education and work based In addition, on a global level, the implications of funding are largely used to up-skill and are, BREXIT on education are unclear. Our learners therefore, critical to the economic prosperity of benefit from European Funding, and we would be Pembrokeshire. concerned if it were removed. We will work with the relevant agencies to influence the outcomes of Increased costs are also a cause for concern. The the educational debate. cost of the introduction of the national contract for all staff, annual incremental increases, a significant increase in the employer contribution for teachers’ pensions and the removal of the rebate for national insurance contributions, add a significant pressure to our cost base.
The Welsh Government believes that Colleges need to become more ‘commercial’ in their operations. In practice, this means reducing course choices, increasing group sizes, being cost focused about our employer provision, seeking alternative income streams from commercial operations such as internal projects, applying for larger scale commercial work and pursuing relationships with other organisations which provide support services for education and training, including the Work Programme. These imperatives will be key features of our work as we progress into FY19.
34 Our Approach
The College remains committed to delivering our teams are able to deliver to the best of their against its key objectives of: “…enabling ability; learners to meet their full potential and attain • Increase our commercial operation, in the highest levels of achievement, whilst whichever way best underpins the strategic meeting the skills needs of the employers”. aims of the College; Accordingly, the College intends to ensure that • Seek to diversify our income sources and it will: produce viable projects to underpin core levels of activity; • Work collectively with Pembrokeshire County • Seek to influence the educational debate with Council in the delivery of the 14-19 agenda; reference to European funding. • Continue to drive work based learning and expand provision whilst improving quality of Given some of the uncertainties we face, our aim outcomes; remains to continue to build cash reserves in • Engage with HEIs and the regional learning the short term in order to achieve our long-term partnership in the delivery of Higher Education; strategy. However, if necessary, the College will use • Improve our learner outcomes and progression its reserves to fund the pursuit of its strategy. into employment and other education and training routes; The success of the College could not be • Consider carefully the curriculum we offer, achieved without the enthusiasm, creativity and ensuring that it meets economic needs, and commitment of the staff. I am proud to have their that it can be delivered sustainably; support, commitment and energy to build the • Continue to deliver value to the local economy College in order to deliver improving quality for and will be active in supporting the economic the benefit of our learners. My thanks go to the development activities in the area; staff, whose dedication and commitment have • Play an active role in promoting the region to consistently delivered excellent results, and to the outside investors and take a leading role in Corporation Board for their support, counsel and promoting the Enterprise Zone and accruing continued commitment – the contribution they benefits; make through their knowledge, experience and • Work to engage with our community, in many skills will ensure that the College will position itself ways, including through our Advisory Forum; as one of the most successful in Wales. • Work closely with the Welsh Government to ensure the implementation of Welsh Dr Barry Walters Government policy; Principal • Invest in development activity to ensure that
35 Report of the Corporation Board
Introduction The Corporation Board of Pembrokeshire College has pleasure in presenting the report and audited financial statements for Pembrokeshire College for the FY18.
The Corporation The members who served on the Corporation of the College during the year and subsequent to the year- end, up to the date of signing the financial statements are listed on page 48.
The Corporation is provided with regular and timely information on the overall financial performance of the College together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel-related matters. The Corporation meets each term as a minimum.
The Corporation conducts its business through a number of committees. Each committee has terms of reference, which have been approved by the Corporation. These committees are Search and Remuneration, Audit, Quality Improvement and A Level Centre. Full minutes of all meetings, except those deemed to be confidential by the Corporation, are available from the Clerk to the Corporation at Pembrokeshire College, Haverfordwest, Pembrokeshire, SA61 1SZ.
Professional Advisers The professional advisers of the Corporation who provide advice to the members and management of the College during the year were:
Independent Auditors: PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors One Kingsway Cardiff CF10 3PW
Internal Auditors: TIAA LLP Business Support Centre 53 – 55 Gosport Business Centre Aerodrome Road Gosport Hampshire PO13 0TQ
Bankers: Barclays Bank plc Bank of Scotland, Lloyds Banking Group 32 High Street Faryners House, 25 Monument Street Haverfordwest London EC3R 8BQ Pembrokeshire SA61 2DG
Santander Corporate and HSBC Bank plc Commercial Banking Coventry DSC 9 Queen Street Harry Weston Road 36 Cardiff CF10 2UD Binley CV3 2SH Stakeholder Relationships In line with other Colleges, Pembrokeshire College has many stakeholders. These include:
• Learners; • Staff; • The local community; • Schools; • Work based learning consortium members; • HE Institutions; • Local employers (with specific links); • Local Authorities; • Government Offices (DWP)/ Regional Bodies; • Other FE institutions; • Trade Unions; • Professional bodies; • Third Sector and voluntary organisations.
The College recognises the importance of these relationships and maintains strong communication links with its stakeholders.
Mission The College’s mission for FY18 as approved by its members is “To inspire excellence, empower individuals and develop the future workforce”.
It is the Corporation’s responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct.
Strategic Goals 2017-2020 Within the period of this institutional plan Pembrokeshire College aims to provide:
• A comprehensive curriculum for education and training; • Excellent learning and teaching; • Improved community engagement; • First class governance and management; • A supportive culture and a safe and sustainable environment; • Strong investment policies.
These strategic goals are envisaged as broad statements of intent which capture the vision, values and ethos of the College over a three year period. The goals will be addressed by a series of aims, some short term, others longer.
37 Report of the Corporation Board cont’d.
Legal Status The Corporation was established under the Further and Higher Education Act 1992 for the purpose of conducting education and training. The College is an exempt charity for the purposes of the Charities Act 2011. The College is subject to the additional requirements of the Accounting and Reporting by Charities’ Statement of Recommended Practice (revised 2015) and the Charities Act 2011. Pembrokeshire Apprenticeship Scheme is a subsidiary of the Institution which is a Company limited by guarantee and is therefore subject to the Companies Act 2006.
Charitable and Taxation Status The College is an exempt charity for the purposes of the Charities Act 2011 and is not liable for corporation tax.
Governance The College has an excellent and committed Board of Governors who continue to play an important role in the operation of the College. The Corporation Board and committee meetings are generally very well attended, as are training sessions and other events.
The Governors are provided with clear and succinct information from the College senior management, which is rigorously challenged where appropriate. Governors have a good understanding of their role and key curriculum and resource areas have Link Governors assigned.
The Link Governor scheme encourages each Governor to participate more fully in the activities of the particular directorate or functional area of the College to which he or she is linked. This scheme has generally worked very well.
The Audit Committee monitors the audit reports and any other matters referred to it by the Corporation or other Committees. The Committee meets four times a year. This Committee also looks at risk management and complex issues affecting the College in an endeavour to give assurance to the Board.
Governors are asked to undertake training, as well as, attendance at meetings of the Board and committees. The Governors provide the College management and staff with a broad range of knowledge and experience. In particular, the Governors’ knowledge of estates, health and safety, finance, Local Authority operations, health and social service sectors etc, can often provide assistance in the growth of College activities. In addition, there is time spent on strategic planning and other activities including attendance at award and learner events.
Apart from chairing Board meetings, the Chair of Governors has responsibility for the line management of the Principal and the Clerk. In addition, there are meetings with strategic partners, inspectors and other external bodies, which require their attendance on behalf of the College. They consult regularly with the Principal.
Additionally, the Corporation Board introduced a new governance structure, from September 2013, which was a direct response to the Review of Governance in the Further Education Sector and has resulted in an increased focus on community consultation and involvement. 38 Principal Risks and Uncertainties The new style of Corporate Risk Management Plan is in its second year of implementation and is working well. There are 10 Corporate Risks which are aligned to the Strategic Plan. The Senior Leadership Team review the Corporate Risk Management Plan termly. The Audit Committee review the full plan annually and review any relevant new and emerging risks as they arise, an example of this are the risks associated with BREXIT. The Plan identifies the risks, the cause, the potential impact, the inherent risk rating, three lines of defence controls and a residual risk rating. SMT also consider the College’s risk appetite for each risk, it can be determined if the controls in place are adequate to minimise the risks to the appetite.
A Risk Management Group has been set up to look at whether risks are being controlled appropriately. The Assistant Principal chairs this group and it meets every half term. There are a number of required members of staff but the invitation has been extended to all staff. At each meeting two corporate risks are chosen to do a ‘deep dive’ into to ensure there are adequate controls in place and therefore assurance that risks are being managed.
A TIAA audit was conducted on the Corporate Risk Management Plan in November 2017, substantial assurance was given.
Human Resources (HR) The College is committed to developing policy and good practice to ensure that the recruitment and development of staff remains a key priority in order to provide the highest standards of education, training and support services.
The College’s work is supported by 505 (318 Female: 187 Male) full time and part time staff (363 FTE) that perform a number of roles and functions.
Effective human resource management practices are in place to include annual performance management appraisals and staff attendance management. The College is committed to the health and well-being of staff and learners and has comprehensive support arrangements in place to promote this ethos. The College was the first College in Wales to be awarded the Welsh Government’s Corporate Health Gold Standard
Communication and Consultation The HR and Payroll department continues to lead on communication and consultation arrangements with staff and trade unions to ensure that good communication channels are maintained. The Local Joint Consultative Committee meetings with joint Trade Unions continue monthly and a Staff Voice Forum is now continuing following its introduction in 2011. Other regular communication arrangements, which are in place include Latest College News, Nexus, on-line discussion forum and review groups.
Learner Involvement The College considers good communication with our learners to be very important and all relevant news and events can now be found on our intranet. The College encourages learner involvement through membership of formal committees, including Learner Voice and the Corporation Board.
39 Report of the Corporation Board cont’d.
Continual Professional Development (CPD) The College’s Aspire department lead on the development of the corporate training for delivery the following academic year.
The CPD programme incorporates the College’s strategic aims, each Directorate’s aims and individual development needs. The College has a Learning and Teaching Quality Manager to drive forward a culture of continued professional development and ensure teaching and learning strategies are consistent across College.
Safeguarding The College has a mandatory safeguarding training programme in place. All staff are required to attend the Pembrokeshire Safeguarding Children Board’s ‘Tier 1’ training which is a certificated course and is delivered by the Head of Safeguarding and Learning who is an approved trainer. The programme has continued throughout this academic year.
Equality and Diversity An Equality and Diversity Strategy follows the implementation of the Equality Act 2010 in October 2010. The Equality and Diversity plan is formulated and agreed at the Equality and Diversity Committee to ensure that priorities are identified and progress monitored. Equality impact assessments are undertaken for all policies. Proposals have been tabled for consultation and actions have been identified and followed up.
The College’s strategic plan reflects the institution’s commitment to Equality and Diversity, which will encompass all the protected characteristics as set out in the Equality Act 2010. As well as fulfilling its statutory duties, the College aims to go beyond and deliver good practice and transparency in the functions and services it delivers. It recognises that equality is not only about meeting its legislative requirements but makes good business sense to attract a rich diversity of skills and talents of learners and staff.
The College will continue to update action plans and improve monitoring processes in line with developments in legislation and feedback from all of our stakeholders, including the nomination of a Link Governor to this area of work.
Equal Opportunities and Employment of Disabled Persons The College is committed to ensuring equality of opportunity for all learners and staff. The College respects and positively values differences in race, sex, disability, sexual orientation, religion or belief, gender reassignment, pregnancy and maternity, being married or in a civil partnership and age. It vigorously strives to remove conditions, which place people at a disadvantage and it actively combats bigotry.
40 Disability Statement The College seeks to achieve the objectives set down in its Strategic Equality Plan:
a. As part of its accommodation strategy the College has updated its access audit. Experts in this field conducted a full access audit during 2006/07 and the results of this formed the basis of a bid to WG for funding capital projects aimed at improving access; b. The College has appointed a Learning Support Team which provides information, advice and where necessary, arranges support for learners with disabilities; c. There is a list of specialist equipment, such as radio aids, which the College can make available for use by learners. A range of assistive technology is available in the Learning Centre; d. The Admissions Policy for all learners is described in the College charter. Appeals against a decision not to offer a place are dealt with under the Complaints Policy; e. The College has made a significant investment in the appointment of specialist lecturers to support learners with learning difficulties and/or disabilities. There are a number of Learner Support Assistants who can provide support for learning. There is a continuing programme of staff development to ensure the provision of a high level of appropriate support for learners who have learning difficulties and/or disabilities; f. Specialist programmes are described in College guides and achievements and destinations are recorded and published in the standard College format; g. Counselling and welfare services are described on the College web page, these are notified to learners, together with the Complaints and Disciplinary Procedure Policies, upon admission and at enrolment.
Employment of Disabled Persons The College always considers applications for employment from disabled persons, bearing in mind the aptitudes of the individuals concerned. Where an existing employee becomes disabled every effort is made to ensure that employment with the College continues. The College’s policy is to provide training, career development and opportunities for promotion that are, as far as possible, identical to those for other employees.
Health, Safety and Environmental Statement Health and Safety The College has been committed to aligning with BS OHSAS 18001, and is now committed to aligning with the new ISO 45001. The College continues to embed a positive HSE culture, this is carried out through a number of initiatives such as SMT Tours. Last year over 285 HSE improvements were made through the HSE action tracking system. A new system for submitting educational visits online is being developed and a new system has been put in place to ensure a robust health surveillance programme is in place. Thorough audits are conducted on a risk basis and there is good cooperation from managers, academic staff and learners.
Environment The College is committed to sustainable development and will further develop initiatives to ensure that resources are used effectively. The main impact on the environment arises from the consumption of energy, transport and the generation of waste and the consumption of office materials. Objectives and targets have been produced in order to improve environmental management and performance and to reduce the College’s environmental impact. The College continues to promote sustainability throughout all it does and continues to seek opportunities to enhance its environmental performance. 41 Report of the Corporation Board cont’d.
Financial Statements
• Financial objectives and review of out-turn for the year The financial statements are set out on page 54. The College out turned a deficit of £268,000 after contribution to depreciation from the capital reserve (-0.9% of gross income) for the year compared with a deficit of £294,000 (-1.1% of gross income) for the previous year. The balance on the general reserve at 31 July 2018 stood at £6,330,000 (2017 £3,281,000) including pension reserve.
• Review of performance The financial performance and financial position of the Corporation is regarded as satisfactory. A review of performance and key performance indicators is set out in the Principal’s Report on pages 4-35.
• Payment performance The late payment of Commercial Debts (Interest) Act 1998, which came in to force on 1 November 1988, requires colleges, in the absence of agreement to the contrary, to make payments to suppliers within thirty days of either the provision of goods or services or the date on which the invoice was received. At the year end, creditors represented 11 days of trade purchases. The College incurred no interest charges in respect of late payment for this period.
The target set by the Treasury for payment to suppliers within thirty days is 95%. As at 31 July 2018 the College had 11 creditor days. The College incurred no interest charges in respect of late payment.
Trade Creditors balance at 31 July 2018 £145,618 Amounts invoiced during the year by suppliers £4,987,908 Number of days in the financial year 365 days Trade creditor days at 31 July 2017 11 days
• Pensions The financial statements report the share of the pension scheme deficit on the College’s balance sheet in line with the requirements of FRS 102 (28).
• Disclosure of information to auditors The members who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the College’s auditors are unaware and each member has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the College’s auditors are aware of that information.
Approved by order of the members of the Corporation on 11 December 2018 and signed on its behalf by:
Caroline Oakley CHAIR 42 Corporate Governance Statement Incorporating the Statement of Internal Financial Control
Statement of Corporate Governance and Internal Control The following statement is provided to enable readers of the annual report and accounts of the College to obtain a better understanding of its governance and legal structure. This statement covers the period from 1st August 2017 to 31st July 2018 and up to the date of approval of the annual report and financial statements.
The College endeavours to conduct its business: i. in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership); ii. in accordance with The Governance Code for Further Education published by ColegauCymru in January 2016 (“the Code”); iii. having due regard to the UK Corporate Governance Code 2016 insofar as it is applicable to the further education sector. The College is committed to exhibiting best practice in all aspects of corporate governance and in particular the College has adopted and complied with the Code. We have not adopted and therefore do not apply the UK Corporate Governance Code. However, we have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governance Code we consider to be relevant to the further education sector and best practice.
In the opinion of the Governors, the College complies with all the provisions of the Code, and it has complied throughout the year ended 31 July 2018. The Governing Body recognises that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times. In carrying out its responsibilities, it takes full account of The Governance Code for Further Education published by ColegauCymru in January 2016, which it formally adopted on 23 February 2016. The College is an exempt charity within the meaning of Part 3 of the Charities Act 2011. The Governors, who are also the Trustees for the purposes of the Charities Act 2011, confirm that they have had due regard for the Charity Commission’s guidance on public benefit and that the required statements appear elsewhere in these financial statements.
The Corporation The composition of the Corporation Board is set out on page 48. It is the Corporation’s responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct.
The Corporation is provided with regular and timely information on the overall financial performance of the College together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel related matters such as health and safety and environmental issues. The Corporation meets six times per year as a minimum.
The Corporation conducts its business through a number of committees. Each committee has terms of reference, which have been approved by the Corporation. These committees are Audit, Search and Remuneration, Quality Improvement and A Level Centre.
In furtherance of their duties, all Board members are able to take independent professional advice, at the College’s expense, and have access to the Clerk to the Corporation, who is responsible to the Board for ensuring compliance with all applicable procedures and regulations. The appointment, evaluation and removal of the Clerk are matters for the Corporation as a whole. 43 Corporate Governance Statement Incorporating the Statement of Internal Financial Control cont’d.
The Corporation cont’d Formal agendas, papers and reports are supplied to Board members in a timely manner, prior to Board meetings. Briefings are provided on an ad-hoc basis.
The Corporation has a strong and independent non-executive element and no individual or group dominates its decision making process. The Corporation considers that each of its non-executive members is independent of management and free from any business or other relationship, which could materially interfere with the exercise of their independent judgement.
There is a clear division of responsibility in that the roles of the Chair and Principal are separate.
The Corporation Board has adopted a governance structure that includes the “Membership Body” to further develop relationships with businesses, schools, voluntary organisations and the wider public and encourage greater community participation and integration with the College. This Body is known as the Pembrokeshire College Advisory Forum.
The structure was introduced in September 2013 and piloted for a year before becoming effective from September 2014 to coincide with the transition of the Further and Higher Education (Governance and Information) (Wales) Bill 2014.
Appointments to the Corporation Any new appointments to the Corporation are a matter for the consideration of the Corporation as a whole. The Corporation has a Search and Remuneration Committee comprising five members who are responsible for the selection and nomination of any new member for the Corporation’s consideration. The Corporation is responsible for ensuring that appropriate training is provided as required.
Members of the Corporation are appointed for a term of office not exceeding four years.
Search and Remuneration Committee The Corporation Board merged the duties of the Search Committee and Remuneration Committee to form a single committee. The Committee has five members. The Committee’s responsibilities include making recommendations to the Board on the remuneration and benefits of senior post holders including the Principal and the Clerk to the Corporation.
Details of remuneration for the year ended 31 July 2018 are set out in note 7 to the financial statements.
Audit Committee The Audit Committee comprises three members of the Corporation (excluding the Principal and Chair). The Committee operates in accordance with written terms of reference approved by the Corporation.
The Audit Committee meets on a termly basis and provides a forum for reporting by the College’s internal and external financial statement auditors, who have access to the Committee for independent discussion, without the presence of College management. The Committee also receives and considers reports from Welsh Government as they affect the business of the College.
The College’s internal auditors monitor the systems of internal control, risk management controls and governance processes in accordance with an agreed plan of input and report their findings to management and the Audit Committee. 44 Audit Committee cont’d Management is responsible for the implementation of agreed audit recommendations and internal auditors undertake periodic follow up reviews to ensure such recommendations have been implemented.
The Audit Committee advises the Corporation on the appointment of internal and financial statement auditors and their remuneration for both audit and non-audit work.
Quality Improvement Committee The Board established a Quality Improvement Committee to determine and advise on such matters relating to the improvement of quality of performance. The remit of the Committee is to analyse the College’s current performance using benchmark data including the performance information for further education, work based learning and higher education.
The constitution of the Committee is a minimum of two governor representatives nominated by the Board, the Principal, Deputy Principal, Assistant Principal, the Director of Curriculum and a co-opted representative from higher education along with Faculty Heads, Quality Assurance and Head of Education, Pembrokeshire County Council
The Committee will also consider how the College listens and responds to its learners, through the Learner Involvement Strategy as well as student behaviour, including disciplinary action, and will monitor complaints.
A Level Committee The Board established an A Level Centre (ALC) Committee to oversee the operation of the A Level Centre. The remit of the Committee is to provide strategic advice and direction to the ALC management team.
The constitution of the Committee is four members nominated from the Corporation, including a Member of the Corporation, Principal, Head of Curriculum and Head of the A-Level Centre. Seven members nominated by Pembrokeshire County Council who are – the Chief Education Officer, two Head Teachers from Ysgol Penrhyn Dewi and Ysgol Bro Gwaun, two governors from Ysgol Penrhyn Dewi and Ysgol Bro Gwaun, the 14-19 Advisor or equivalent and a Member of Pembrokeshire County Council. An independent member from ERW or its equivalent.
The ALC will deliver the Corporation’s strategy for the improvement of quality Post 16 education in the College.
Internal Control Scope of Responsibility The Corporation is ultimately responsible for the College’s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The Corporation has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement of the College’s policies, aims and objectives, whilst safeguarding the public funds and assets for which they are personally responsible, in accordance with the responsibilities assigned to them in the Financial Memorandum between the College and Welsh Government. They are also responsible for reporting to the Corporation any material weaknesses or breakdowns in internal control. 45 Corporate Governance Statement Incorporating the Statement of Internal Financial Control cont’d.
The Purpose of the System of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of College policies, aims and objectives, to evaluate the likelihood of those risks being realised and their impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in the College for the year ended 31 July 2018 and up to the date of approval of the annual report and financial statements.
Capacity to Handle Risk The Corporation has reviewed the key risks to which the College is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Corporation is of the view that there is a formal ongoing process for identifying, evaluating and managing the College’s significant risks that has been in place for the year ending 31 July 2018 and up to the date of approval of the annual report and financial statements. The Corporation regularly reviews this process.
The Risk and Control Framework The system of internal control is based on a framework of regular management information, administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:
• Comprehensive budgeting systems with an annual budget, which is reviewed and agreed by the Corporation Board; • Regular reviews by the Corporation Board of periodic and annual financial reports, which indicate the financial performance against forecasts; • Setting targets to measure financial and other performance; • Clearly defined capital investment control guidelines; • The adoption of formal project management disciplines, where appropriate.
The College has an internal audit service, which operates in accordance with the requirements of the Welsh Government. The work of the internal audit service is informed by an analysis of the risks to which the College is exposed and annual internal audit plans are based on this analysis. The Corporation, on the recommendation of the Audit Committee, endorses the analysis of risks and the internal audit plans. At a minimum annually, the Head of Internal Audit provides the Corporation Board with a report on internal audit activity in the College. The report includes the Head of Internal Auditor’s independent opinion on the adequacy and effectiveness of the College’s system of risk management, controls and governance processes.
Review of Effectiveness As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. The review of the effectiveness of the system of internal control is informed by:
• The work of the Internal Auditors; • The work of the senior managers within the College who have responsibility for the development and maintenance of the internal control framework; • The comments made by the College’s financial statements auditors and the Welsh Government’s auditors 46 in their management letters and other reports. Review of Effectiveness cont’d The Principal has been advised on the implications of the result of the review of the effectiveness of the system of internal control by the Audit Committee, which oversees the work of the Internal Auditor and a plan to address weaknesses and ensure continuous improvement of the system is in place.
The senior management team receives reports setting out key performance and risk indicators and considers possible control issues brought to members’ attention by early warning mechanisms, which are embedded within the departments and reinforced by risk awareness training. The senior management team and the Audit Committee also receive regular reports from internal audit, which include recommendations for improvement. The Audit Committee’s role in this area is confined to a high level review of the arrangements for internal control. The Corporation’s agenda includes a regular item for consideration of risk and control and receives reports thereon from the senior management team and the Audit Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception.
At its December 2018 meeting, the Corporation carried out the annual assessment for the year ended 31 July 2018 by considering documentation from the senior management team, the internal audit and taking account of events since 31 July 2018.
Based on the advice of the Audit Committee and the Accounting Officer, the Corporation is of the opinion that the College has an adequate and effective framework for governance, risk management and control, and has fulfilled its statutory responsibility for “the effective and efficient use of resources, the solvency of the institution and the body and the safeguarding of their assets”.
Going Concern After making appropriate enquiries, the Corporation considers that the College has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements.
Bribery Act 2010 The Bribery Act 2010 came into effect on 1 July 2011 and applies to any organisation which is incorporated in the UK irrespective of where it carries out its business. The College is covered by the Act as it engages in commercial activities.
The Act contains two general offences:
• Active Bribery – offering or giving a bribe; and • Passive Bribery – requesting or accepting a bribe.
Training has been provided to staff that have been identified as being most at risk. Any staff member who has suspicion of bribery being carried out must report it immediately to the Director of Resources.
Date: 11.12.18 Date: 11.12.18 Caroline Oakley Barry Walters Chair Principal 47 Members of the Corpration Board - for the Year Ended 31 July 2018
Governor Date of Appointment / Term of End of Term Committees Served Notes Reappointment Office of Office Caroline Oakley Sep 2016 (First term) 4 yrs Sep 2020 Chair - Corporation Board Review Sep 2020 Chair - Search & Remuneration A Level Centre Susan Leonard Dec 2013 4 yrs Oct 2021 Vice Chair - Corporation Board Review Oct 2021 (re-appointed Oct 2017) Chair - Quality Improvement Audit Christopher Martin Dec 2015 (First term) 4 yrs Dec 2019 Chair - Audit Review Dec 2019 Search & Remuneration Graham Morgan Jul 2017 (First term) 4 yrs Jul 2021 N/A Review Jul 2021
Andy Jones Jul 2017 (First term) 4 yrs Jul 2021 Audit Review Jul 2021 Cris Tomos Sep 2017 (First term) 4 yrs Sep 2021 Audit Review Sep 2021 Andrew Evans Aug 2014 4 yrs Oct 2018 N/A Review Oct 2018 (Re-appointed 2nd term) Andrew Phillips Dec 2017 (First term) 4 yrs Dec 2021 N/A Review Dec 2021
Jonathan Haswell Oct 2014 (First term) 4 yrs Oct 2018 Audit Review Oct 2018 Kate Evan-Hughes Dec 2014 (First term) 4 yrs Dec 2018 Chair - A-Level Centre Committee Review Dec 2018 Quality Improvement Iwan Davies Dec 2014 (First term) 4 yrs Dec 2019 N/A Review Dec 2019 Stan McIlvenny Dec 2015 (First term) 4 yrs Dec 2019 Search & Remuneration Review Dec 2019 Maria Pena Jul 2018 4 yrs July 2022 N/A Review Jul 2022 Julia Rees Aug 2011 4 yrs Sep 2019 Quality Improvement Review Sep 2019 (Re-appointed 2nd term) Charlie Royal Sep 2016 (First term) 4 yrs Sep 2020 Quality Improvement Review Sept 2020
Barry Walters Jul 2018 TBC Search & Remuneration Interim Principal A-Level Centre Quality Improvement Jocelyn Llewhellin Jun 2018 2 yrs Jun 2020 Observer on Board President of Option to extend PCAF 2 yrs Sharron Lusher Feb 2012 Jun 2018 Search & Remuneration Retired Principal A-Level Centre Quality Improvement Bethany Roberts Feb 2018 4 mths Jul 2018 Quality Improvement Leaving College July 2019 Leah Gray Sep 2017 1 yr Jul 2018 Quality Improvement Leaving College July 2019 Derek Lloyd Jun 2014 4 yrs Jun 2018 Observer on Board President of Finished PCAF Ed Tomp Aug 2014 (re-appointed 4 yrs Jan 2018 Chair -Corporation Board. Finished 2nd term) Chair - Search & Remuneration Luke Howard Sep 2017 1 yr Jan 2018 N/A Finished Nic Wheeler Mar 2014 1 yr Nov 2017 Audit Finished Extended to Nov 2017 48 MEMBERS OF THE CORPORATION BOARD – FOR THE YEAR ENDED 31 JULY 2018 cont’d
The Members of the Corporation of the College are responsible for the administration and management of the College’s affairs, including ensuring an effective system of internal control and are required to present audited financial statements for each financial year.
Within the terms and conditions of the Financial Memorandum agreed between WG and the Corporation, the Corporation, through its chief officer, is required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the College, the surplus/deficit and cash flows for that year.
49 Statement of the Responsibilities of the Members of the Corporation Board
In preparing the financial statements the Corporation is required to:
• Select suitable accounting policies and apply them consistently; • Make judgments and estimates that are reasonable and prudent; • State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; • Prepare financial statements on the going concern basis unless it is inappropriate to assume that the College will continue in operation. The Corporation is satisfied that it has adequate resources to continue in operation for the foreseeable future; for this reason, the going concern basis continues to be adopted in the preparation of financial statements.
The Corporation is required to prepare a Members’ Report describing its aims and how these are being addressed, including the legal and administrative status of the College.
The Corporation is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the College and enable it to ensure that the financial statements are prepared in accordance with guidance issued by WG and other relevant accounting standards. It has general responsibility for taking such steps that are reasonably open to it to safeguard assets of the College and to prevent and detect fraud and other irregularities.
Members of the Corporation are responsible for ensuring that funds from WG are used only in accordance with the financial memorandum with WG and any other conditions which WG may from time to time prescribe. Members of the Corporation must ensure that there are appropriate financial and management controls in place sufficient to safeguard public funds and funds from other sources and ensure that these are used only in accordance with the conditions under which they have been made available. Members of the Corporation are responsible for safeguarding the assets of the College and prevention and detection of fraud. In addition, members of the Corporation are responsible for securing the economical, efficient and effective management of the College’s resources and expenditure, so that the benefits that should be derived from the application of public funds by WG are not put at risk.
Approved by order of the members of the Corporation on 11 December 2018 and signed on its behalf by:
Caroline Oakley Chair
50 Independent Auditors’ Report to the Corporation of Pembrokeshire College (the “Institution”)
Report on the audit of the Financial Statements Opinion In our opinion, Pembrokeshire College’s financial statements (the “financial statements”):
• give a true and fair view of the state of the institution’s affairs as at 31 July 2018, and of the institution’s income and expenditure and cash flows for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); • have been properly prepared in accordance with the requirements of the Statement of Recommended Practice – Accounting for Further and Higher Education; and • have been properly prepared in accordance with the Accounts Direction issued by the Welsh Government.
We have audited the financial statements, included within the Financial Statements (the “Annual Report”), which comprise the Balance Sheet as at 31 July 2018; the Statement of Comprehensive Income; the Statement of Changes in Reserves; the Statement of Cash Flows for the year then ended; and the Notes to the Financial Statements, which include a summary of significant accounting policies.
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when:
• the Corporation’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the Corporation has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the institution’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the institution’s ability to continue as a going concern.
51 Independent Auditors’ Report to the Corporation of Pembrokeshire College (the “Institution”) cont’d
Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Corporation is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or any form of assurance thereon.
In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
Responsibilities for the financial statements and the audit Responsibilities of the Corporation for the financial statements As explained more fully in the Statement of the Responsibilities of the Members of the Corporation set out on page 50, the Corporation is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Corporation is also responsible for such internal control as they 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 Corporation is responsible for assessing the institution’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 Corporation either intends to liquidate the institution or to cease operations, or has no realistic alternative but to do so.
Auditors’ 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 auditors’ 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
52 Independent Auditors’ Report to the Corporation of Pembrokeshire College (the “Institution”) cont’d
Use of this report This report, including the opinions, has been prepared for and only for the institution’s Corporation as a body in accordance with Article 18 of the institution’s articles of government and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other Required Reporting
Opinions on other matters prescribed in the Further Education Audit Code of Practice 2015 issued by the Welsh Government
In our opinion, in all material respects:
• monies expended out of Welsh Government grants and other funds from whatever source administered by the Institution for specific purposes have been properly applied to those purposes and, if appropriate, managed in compliance with all relevant legislation; and • income has been applied in accordance with the financial memorandum with the Welsh Government.
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Cardiff December 2018
53 PEMBROKESHIRE COLLEGE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JULY 2018
2018 2017 Note £’000 £’000
Income
Funding body grants 2 26,009 22,935 Tuition fees and education contracts 3 1,572 1,634 Other income 4 1,493 1,311 Investment & other similar income 5 9 11
Total income 29,083 25,891
Expenditure Staff costs 6 13,731 12,996 Other operating expenses 8 14,299 12,031 Depreciation 11 1,105 938 Interest and other finance costs 9 218 212
Total expenditure 29,353 26,177
Adjusted EBITDA before one off costs and non-cash items 1,468 1,129
Net Interest (Payable) / Receivable (6) 7 Staff Restructuring Costs 6 (23) (8) Non-Cash Items: Depreciation 11 (1,105) (938) Release of Capital Grants 16 422 305 FRS 102 Pension & Early Retirement Charge (1,026) (781)
Deficit on continuing operations (270) (286)
Gain/(Loss) on disposal of fixed assets 2 (8)
(Deficit) for the year retained within general reserves (268) (294)
Actuarial Gain in respect of pension schemes 18 3,325 905
Total Comprehensive Income for the year 3,057 611
The income and expenditure account is in respect of continuing activities of the College. 54 PEMBROKESHIRE COLLEGE STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 JULY 2018
Total Income and Capital unrestricted Expenditure Reserve Reserves £’000 £’000 £’000
Balance at 1st August 2016 2,542 5,621 8,163
Deficit from the income and expenditure account (294) - (294) Other comprehensive income 905 - 905 Transfers between revaluation and income and expenditure reserves 128 (128) Total comprehensive income for the year 739 (128) 611
Balance at 31st July 2017 3,281 5,493 8,774
Deficit from the income and expenditure account (268) - (268) Other comprehensive income 3,325 - 3,325 Transfers between revaluation and income and expenditure reserves (8) 8 Total comprehensive income for the year 3,049 8 3,057
Balance at 31st July 2018 6,330 5,501 11,831
55 PEMBROKESHIRE COLLEGE BALANCE SHEET AS AT 31 JULY 2018
2018 2017 Note £’000 £’000 Fixed assets Tangible assets 11 25,791 25,533
Current assets Stocks 37 38 Debtors 12 2,422 2,738 Cash at bank and in hand - Own Funds 4,059 4,648 - Work Based Learning Consortium 172 31
Total current assets 6,690 7,455
Less: Creditors - amounts falling due within one year 13 (3,328) (4,418)
Net current assets 3,362 3,037
Total assets less current liabilities 29,153 28,570
Less: Creditors - amounts falling due after more than one year 14 (10,756) (10,880)
Less: Provisions for liabilities 17 Defined benefit obligations (5,842) (8,166) Other provisions (724) (750)
Total net assets 11,831 8,774
Unrestricted reserves Income and expenditure account 6,330 3,281 Capital reserve 5,501 5,493
Total unrestricted reserves 11,831 8,774
The financial statements on pages 54 to 79 were approved by the Corporation on 11 December 2018 and were signed on its behalf by:
Caroline Oakley Barry Walters Caroline M James Chair Principal Director of Resources 56 PEMBROKESHIRE COLLEGE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2018
2018 2017 £’000 £’000
Cash flow from operating activities Deficit for the year (268) (294) Adjustments for non-cash items Depreciation 1,105 938 Release of capital grants (422) (305) Decrease / (Increase) in stocks 1 (2) Decrease in debtors 316 13 (Decrease) / Increase in creditors due within one year (390) 11 Decrease in provisions (26) (35) Pension costs less contributions payable 1,001 767 Adjustment for investing or financing activities Investment income (9) (11) Interest payable 15 4 (Gain) / Loss on sale of fixed assets (2) 8 Net cash flows generated from operating activities 1,321 1,094
Cash flows from investing activities Proceeds from sale of fixed assets 3 22 Investment income 9 11 Maturity of cash deposits - 1,000 Payments made to acquire fixed assets (2,041) (6,678) Capital grants received 407 4,259 Net cash flows used in investing activities (1,622) (1,386)
Cash flows from financing activities Interest paid (15) (4) New unsecured loan - 500 Repayments of amounts borrowed (132) (131) Net cash flows (used in)/generated from financing activities (147) 365
(Decrease)/Increase in cash and cash equivalents in the year (448) 73
Cash and cash equivalents at beginning of the year 4,679 4,606
Cash and cash equivalents at end of the year 4,231 4,679
57 Notes to the Financial Statements for the Year Ended 31 July 2018
1 Statement of Principal Accounting Policies The following accounting policies will be applied consistently in dealing with items that are considered material in relation to the financial statements.
Basis of Preparation These financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting for Further and Higher Education 2015 (the 2015 FE HE SORP), the College Accounts Direction for 2017 to 2018 and in accordance with Financial Reporting Standard 102 - “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (FRS 102). The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102. The financial statements conform to guidance published by WG in the Accounts Direction Handbook.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the College’s accounting policies.
Reference to companies linked to the Institution by way of a limited guarantee or subsidiary, adhere to the reporting requirements of the Companies Act 2006 and have been prepared in accordance with FRS 102.
Basis of Accounting The financial statements are prepared in accordance with the historical cost convention as modified by the use of previous valuations as deemed cost at transition for certain non-current assets.
Going concern The activities of the College, together with the factors likely to affect its future development and performance are set out in the Members Report. The financial position of the College, its cash flow, liquidity and borrowings are presented in the financial statements and accompanying notes.
The College has a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements.
Recognition of Income The recurrent grants from Welsh Government (WG) and specific government grants are accounted for under the accrual model as permitted by FRS 102. Recurrent grants are recognised in line with planned activity. Any under-achievement against this planned activity is adjusted in-year and reflected in the level of recurrent grant recognised in the Statement of Comprehensive Income.
The Work Based Learning grant from WG is accounted for under the accrual model as permitted by FRS 102. The income is recognised in line with when delivery took place.
Grants from non-government sources are recognised in income when the College is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.
Government capital grants are capitalised, held as deferred income and recognised in income over the expected useful life of the asset, under the accrual method as permitted by FRS 102.
Income from tuition fees is stated gross of any expenditure which is not a discount and is recognised in the period for which it is received. 58 Notes to the Financial Statements for the Year Ended 31 July 2018 cont’d
Recognition of Income cont’d Income from contracts and other services rendered is included to the extent of the completion of the contract or service concerned. This is generally equivalent to the sum of the relevant expenditure incurred during the year and any related contributions towards overhead costs.
Income from the sale of goods or services is credited to the Statement of Comprehensive Income when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.
Income received from the Department of Work and Pensions contract is based upon fixed payments for members participating in the scheme and an entitlement to additional fees when members remain in work for pre-agreed periods of time. The College recognises the income on a “cash received” basis when the income is achieved. This is considered to be the most prudent and appropriate method for accounting for this income.
All income from short-term deposits is credited to the income and expenditure account in the period in which it is earned.
Accounting for post-employment benefits Post-employment benefits to employees of the College are provided by the Teachers’ Pension Scheme (TPS) and the Local Government Pension Scheme (LGPS). These are defined benefit schemes, which are externally funded and contracted out of the State Second Pension.
Teachers’ Pension Scheme (TPS) The TPS is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions over employees’ working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method. The TPS is a multi-employer scheme and the College is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as an expense in the Statement of Comprehensive Income in the periods during which services rendered by employees.
Local Government Pension Scheme The LGPS is a funded scheme. The assets of the LGPS are measured using closing fair values. LGPS liabilities are measured using the projected unit credit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Comprehensive Income and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Short term Employment benefits Short term employment benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused 59 entitlement. Notes to the Financial Statements for the Year Ended 31 July 2018 cont’d
Enhanced Pensions The actual cost of any enhanced on-going pension to a former member of staff is paid by the College annually. An estimate of the expected future cost of any enhancement to the on-going pension of a former member of staff is charged in full to the college’s Income in the year that the member of staff retires. In subsequent years a charge is made to provisions in the balance sheet using the enhanced pension spreadsheet provided by WG.
Non-current Assets - Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to the 2015 FE HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.
Land and buildings Land and buildings inherited from the Local Education Authority are stated in the balance sheet at valuation on the basis of deemed cost. Land and buildings acquired since incorporation are included in the balance sheet at cost. Freehold land is not depreciated. Freehold buildings are depreciated over their expected life of: Years Buildings 100 Building and major refurbishment projects 66 - 80 Minor refurbishment projects 10 - 15
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any fixed asset may not be recoverable.
On adoption of FRS 102, the College followed the transitional provision to retain the book value of land and buildings, which were re-valued in 1998, but not to adopt a policy of revaluations of these properties in the future.
Assets under construction Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs, incurred to 31 July. They are not depreciated until they are brought into use.
Equipment Equipment costing less than £1,000 per individual item or group of related items is recognised as expenditure in the period of acquisition. All other equipment is capitalised at cost.
Equipment is depreciated on a straight line basis over its estimated useful economic life at the following rates:
• Motor vehicles and general equipment 10 - 25% per annum • Fixtures, fittings and Equipment 10 - 40% per annum
Capital Reserve The value of tangible fixed assets inherited from the Local Education Authority on 1 April 1993 was transferred to the College’s Capital Reserve. An amount equal to the depreciation charged on the inherited assets is transferred from the Capital Reserve to the Income and Expenditure Account each year.
Borrowing costs Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised, all other borrowing costs are recognised as expenditure in the period in which they are incurred. 60 Notes to the Financial Statements for the Year Ended 31 July 2018 cont’d
Leased assets Costs in respect of operating leases are charged on a straight-line basis over the lease term to the Statement of Comprehensive Income and Expenditure.
Stocks Stocks are stated at the lower of their cost and net realisable value. Where necessary, provision is made for obsolete, slow moving and defective stocks.
Cash and cash equivalents Cash includes cash in hand, deposits repayable on demand and overdrafts. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.
Financial liabilities Financial liabilities are classified according to the substance of the financial instrument’s contractual obligations, rather than the financial instrument’s legal form.
All loans are classified as basic financial instruments in accordance with FRS 102. The loan is initially recorded at the transaction price less any transaction costs (historical cost). FRS 102 requires that basic financial instruments are subsequently measured at amortised cost, the College has calculated that the difference between the historical cost and amortised cost basis is not material and so these financial instruments are stated on the balance sheet at historical cost. Loans that are payable or receivable within one year are not discounted.
Taxation The College is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by sections 478-488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
The College is partially exempt in respect of Value Added Tax, so that it can only recover a portion of the VAT charged on its inputs. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature.
The College’s subsidiary company is subject to corporation tax and VAT in the same way as any commercial organisation.
Provisions and Contingent liabilities Provisions are recognised when the College has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Agency arrangements The College acts as an agent in the collection and payment of Financial Contingency Funds and Educational Maintenance Allowances. Related payments received from WG and subsequent disbursements to learners are excluded from the Statement of Comprehensive Income are shown separately in the notes to the financial statements, except for the 3 per cent of the grant received which is available to the College to cover administration costs relating to the grant. The College employs one member of staff dedicated to the administration of Financial Contingency Fund applications and payments. 61 Notes to the Financial Statements for the Year Ended 31 July 2018 cont’d
Investments in subsidiaries Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.
The results of Pembrokeshire Apprenticeship Scheme have not been consolidated with those of Pembrokeshire College as the Corporation Board considers that the amounts involved are not material. A separate statement of the affairs of Pembrokeshire Apprenticeship Scheme is set out in note 25 of these financial statements.
Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing these financial statements, management have made the following judgements:
The College acts as the lead provider in the Work Based Learning Contract. The College subcontracts some of the delivery of this contract to other partner institutions and companies. Pembrokeshire College holds the contract directly with the Welsh Government and therefore, this is not considered to be a consortia arrangement. Income is recognised on the basis of the College acting as “Principal”. Therefore, and in accordance with the Accounts Direction issued by Welsh Government, the College has recognised income from this contract on a gross basis in these financial statements (see note 2).
Determined whether leases entered into by the College either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis:
Determined whether there are indicators of impairment of the college’s tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Local Government Pension Scheme The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 19, will impact the carrying amount of the pension liability. The actuary has used a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2016 to value the pensions liability at 31 July 2018. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
62 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
2 Funding Body Grants 2018 2017 £’000 £’000 Recurrent grant 10,230 9,669 Work Based Learning grant (WBL) 3,637 3,521 Franchised provision - WBL 10,506 8,489 - FE 63 62 Release of deferred capital grants - Buildings 162 139 - Equipment 224 129 Specific grants 1,187 926
26,009 22,935
The College is a lead in the Work Based Learning contract. All income derived through the contract is shown in these financial statements. The breakdown of monies allocated is as below:
2018 2017 £’000 £’000
WBL Contract Income 14,143 12,010 Payments to FE partners (8,152) (5,913) Payments to non FE partners (2,354) (2,576) Total Payments to Partners (10,506) (8,489)
Pembrokeshire College WBL income as provider and contract lead 3,637 3,521
3 Tuition Fees and Education Contracts 2018 2017 £’000 £’000 Further Education - European Union (including home) 625 651 - Non-European Union 12 32 Higher Education (HE) income 427 391 1,064 1,074 Higher Education (HE) Franchised income 74 71 Department of Work and Pensions income 161 206 Other Educational Contracts 273 283
1,572 1,634
63 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
4 Other Income 2018 2017 £’000 £’000 European funds 592 498 Knowledge Exploitation Funds (KEF) - 23 Catering and Residences operations 69 36 Release of deferred capital grants (non WG) 36 37 College Facilities 199 169 International Discrete Provision 9 129 Salary and Other Grants 288 158 Other Income Generating Activity 300 261
1,493 1,311
5 Investment & other similar income 2018 2017 £’000 £’000
Bank Interest receivable 9 11 Pension Finance Income - - 9 11
6 Staff Costs
The number of persons (including senior post holders) employed by the College during the year, expressed as full-time equivalents with the associated staff costs was:
2018 2017 No. £’000 No. £’000 Teaching departments - Teaching staff 165 6,764 163 6,554 - Other staff 96 2,838 93 2,638 Teaching support services 29 709 28 712 290 10,311 284 9,904 Other support services 12 329 8 240 Administration and central services 40 1,670 42 1,604 General education expenditure 3 102 4 126 Premises 11 312 11 299 Other income generating activities 7 161 9 242 Total 363 12,885 358 12,415 FRS 102 non cash pension adjustment 798 559 Early retirement costs 25 14 Staff restructuring 23 8
13,731 12,996
64 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
6 Staff Costs cont’d 2018 2017 £’000 £’000 Wages and salaries 10,464 10,209 Social security costs 969 920 Other pension costs (including FRS 102 adjustments) 2,250 1,845 Early retirement costs 25 14 Staff Restructuring 23 8 Operating staff costs 13,731 12,996
2018 2017 £’000 £’000 Employment costs for staff on permanent contracts 12,066 11,694 Employment costs for staff on short-term and temporary contracts 819 721 FRS 102 non cash pension adjustment 798 559 Early retirement costs 25 14 Staff Restructuring 23 8 Operating staff costs 13,731 12,996
All Staff
In line with a nationally agreed award by all Colleges and the joint unions, the College awarded a 1% cost of living settlement with effect from 1 August 2017.
7 Key Management Personnel
Key management personnel are those persons having authority and responsibility for planning, directing and con- trolling the activities of the College. The key management personnel comprise of the Principal, Deputy Principal and Assistant Principal.
Emoluments of Key Management Personnel, Accounting Officer and other higher paid staff
The number of key management personnel and other staff who received (or would have done, had they been em- ployed by the College for the full year) annual emoluments, excluding pension contributions but including benefits in kind, in the following ranges was:
Key Management Personnel Other Staff 2018 2017 2018 2017 No. No. No. No. £60,001 to £70,000 - - 1 2 £70,001 to £80,000 - - 1 - £80,001 to £90,000 2 2 - - £90,001 to £100,000 - - - - £100,001 to £110,000 - - - - £110,001 to £120,000 - - - - £120,001 to £130,000 - 1 - - £130,001 to £140,000 1 - - - 65 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
7 Key Management Personnel cont’d
The emoluments of key management personnel and other higher paid staff above was: Key Management Personnel Other Staff 2018 2017 2018 2017 £ £ £ £ Salaries 296,961 292,918 135,315 131,552 Benefits in Kind - - - - 296,961 292,918 135,315 131,552 Pension Contributions 47,805 46,371 20,462 18,655 344,766 339,289 155,777 150,207
There was a change of Principal during the year 2017/18. The emoluments paid to each Principal for their respective terms are set out below.
01/08/17 01/07/18 2018 2017 - 30/06/18 - 31/07/18 £ £ £ £ Emoluments of the Principal Salary 120,580 9,167 129,747 123,000 Benefits in Kind - - - - 120,580 9,167 129,747 123,000 Pension Contributions 19,872 1,511 21,383 20,270 140,452 10,678 151,130 143,270
There were no amounts due to key management personnel or higher paid staff that were waived in the year.
The previous Principal was awarded a pay increase effective 1 August 2017, which equated to 6.94% annually.
The Deputy Principal (now Principal) and the Assistant Principal were not awarded any discretionary pay increases during the year other than each being awarded a Cost of Living increase of 1% effective 1 August 2017.
On appointment of the Deputy Principal to Principal effective 1 July 2018 an annual salary of £110,000 was applied.
The pension contributions of the Principal and key management personnel are in respect of employer’s contributions and are paid at the same rate as for other employees.
The members of the Corporation, other than the Principal and the two staff members, did not receive any payment from the College other than the reimbursement of travel and subsistence expenses incurred in the course of their duties.
66 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
8 Other Operating Expenses 2018 2017 £’000 £’000 Teaching departments - Learner Related Expenditure 715 639 - Projects Expenditure 106 48 Teaching support services 955 887 Other support services 120 77 Administration and central services 856 771 General education expenditure 76 81 Premises costs - Running costs 339 324 - Maintenance 151 213 - External Contracts 192 167 - Rents and Leases 72 97 Planned maintenance and Condition Survey Work 30 48 Other income generating activities 58 69 Catering and residences 60 59 Subtotal before Franchised provision 3,730 3,480 Franchised provision - FE 63 62 Franchised provision - WBL 10,506 8,489
14,299 12,031
Other operating expenses include: 2018 2017 £’000 £’000 Auditors' remuneration - external audit 14 14 - internal audit 20 16 - other services regulatory 6 6 Operating leases - plant and machinery 8 8 - land and buildings 72 97 Unrecoverable VAT (included in Administration and Central Services) 307 250 Examination Fees (included in Teaching support services) 445 423
9 Interest and Other Finance Costs 2018 2017 Note £’000 £’000 Bank loans 15 4 Pension finance costs 18 203 208
218 212
67 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
10 Taxation
The College is not liable for any corporation tax arising out of its activities during the year due to its charitable status.
11 Tangible Assets Freehold Fixtures Assets in the Land and Plant and Fittings and Course of Buildings Machinery Equipment Construction Total £’000 £’000 £’000 £’000 £’000 Cost or valuation At 1 August 2017 26,927 886 8,314 5,879 42,006 Additions 162 24 561 616 1,363 Disposals - (17) (619) - (636) Transfer 6,495 - - (6,495) - At 31 July 2018 33,584 893 8,256 - 42,733
Accumulated depreciation At 1 August 2017 9,410 799 6,264 - 16,473 Charge for year 507 40 558 - 1,105 Eliminated in respect of disposals - (17) (619) - (636) At 31 July 2018 9,917 822 6,203 - 16,942
Net book value At 31 July 2018 23,667 71 2,053 - 25,791
At 31 July 2017 17,517 87 2,050 5,879 25,533
Inherited 5,501 - - - 5,501 Financed by capital grant 9,012 - 1,342 - 10,354 Other 9,154 71 711 - 9,936
Net book value at 31 July 2018 23,667 71 2,053 - 25,791
Land and buildings were valued as at 31 January 1994 at their depreciated replacement cost by Chestertons International PLC, Property Consultants. Other tangible fixed assets inherited from the Local Education Authority at incorporation were valued by the College at their estimated depreciated replacement cost.
Land and buildings with a net book value of £5,500,954 (2017: £5,492,956) have been funded from Local Education Authority sources. Should these assets be sold, the College would either have to surrender the sale proceeds to WG or use them in accordance with the financial memorandum of the WG.
Assets in the Course of Construction represented the build costs of Campus6, the new advanced level centre. The project was complete by August 2017.
68 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
12 Debtors 2018 2017 £’000 £’000 Amounts falling due within one year Trade debtors 2,159 2,467 Prepayments and accrued income 263 271
2,422 2,738
13 Creditors: Amounts falling due within one year 2018 2017 Note £’000 £’000 Bank and other loans 15 128 133 Payments received in advance 103 22 Creditors - Trade 145 150 - Capital 152 830 Taxation and social security 254 247 Accruals 697 676 Other Creditors 1,320 1,539 Deferred revenue grants 89 363 Deferred capital grants 16 440 458
3,328 4,418
14 Creditors: Amounts falling due after more than one year 2018 2017 Note £’000 £’000 Bank and other loans 15 842 969 Deferred capital grant 16 9,914 9,911
10,756 10,880
69 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
15 Maturity of debt
Bank loans The College has the following loan facilities in place:
Barclays Bank plc The loan facility bears interest at 0.45% above base and is repayable over 15 years. The balance on this account at 31 July 2018 was £447,280 (2017: £562,730).
HSBC The College entered into a Revolving Credit Facility (RCF) with HSBC in October 2016. The facility of £1,500,000 is in place for a 5 year term which allows the College access to funds up to this value as and when required. The RCF bears interest at 1.75% above LIBOR on amounts drawn down. A non-utilisation fee of 0.25% is charged on any undrawn balance. As at 31st July 2018 the College had drawn down £500,000 of the facility (2017: £500,000).
Salix Finance Ltd Energy Efficiency Loan Scheme to allow an interest free loan to finance the cost of energy saving projects. Payback period is over 6 years during which time the energy savings made will cover the loan repayments. The balance on this account at 31 July 2018 was £22,349 (2017: £38,696).
The loans are repayable as follows: 2018 2017 £’000 £’000 In one year or less 128 133 Between one and two years 123 130 Between two and five years 719 839 In five years or more - -
970 1,102
70 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
16 Deferred capital grants
WG Grants Other Grants Land and Land and Buildings Other Buildings Other Total £’000 £’000 £’000 £’000 £’000 Balance at 1 August 2017 7,940 1,176 1,165 88 10,369 Cash received 183 224 - - 407 Transfer (94) 94 - - - Released to Statement of Comprehensive Income (162) (224) (20) (16) (422)
At 31 July 2018 7,867 1,270 1,145 72 10,354
Other Total £’000 £’000 In one year or less 440 458 In one year or more 9,914 9,911
10,354 10,369
17 Provisions for Liabilities Defined benefit Enhanced obligations pensions Total £’000 £’000 £’000
At 1 August 2017 8,166 750 8,916 Expenditure for year (727) (47) (774) Transferred from Statement of Comprehensive Income (1,597) 21 (1,576)
At 31 July 2018 5,842 724 6,566
Defined benefit obligations relate to the liabilities under the College’s membership of the Local Government Pension Scheme. Further details are given in Note 18.
71 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
17 Provisions for Liabilities cont’d
The enhanced pension provision relates to future payments in respect of early retirees. This provision has been recalculated in accordance with guidance issued by the funding body.
The principal assumptions for this calculation are: 2018 2017
Interest rate 2.3% 2.3% Inflation rate 1.3% 1.3%
The provision includes £163,354 (2017: £168,672) in respect of early retirement pension payable to former key management personnel.
18 Pension and Similar Obligations
The employees of the College belong to two principal pension schemes, the unfunded Teachers’ Pension Scheme (TPS) and the funded Dyfed Local Government Pension Scheme (LGPS). The total pension cost was £1,455,750 (2017 £1,290,404).
The principal assumptions for this calculation are: 2018 2017 £’000 £’000 TPS contributions Paid 729 659
LGPS contributions paid 727 631 LGPS FRS 102 (28) charge 798 559 LGPS total 1,525 1,190
Enhanced Pension charge to the Statement of Comprehensive Income 25 14
Total Pension Cost for Year within staff costs 2,279 1,863
Teachers’ Pension Scheme (TPS)
Introduction
The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pensions Scheme Regulations 2014. These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities.
In addition, teachers in many independent and voluntary-aided schools, and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.
72 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
18 Pension and Similar Obligations cont’d
The Teachers’ Pension Budgeting and Valuation Account
Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act 1972 and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act.
The Teachers’ Pensions Regulations 2010 require an annual account, the Teachers’ Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.
Valuation of the Teachers’ Pension Scheme
The latest actuarial review of the TPS was carried out as at 31 March 2012 and in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education (the Department) on 9 June 2014. The key results of the valuation and the subsequent consultation are:
• employer contribution rates were set at 16.48% of pensionable pay (including a 0.08% levy for administration); • total scheme liabilities for service to the effective date of £191.5 billion, and notional assets of £176.6 billion, giving a notional past service deficit of £14.9 billion; • an employer cost cap of 10.9% of pensionable pay will be applied to future valuations • The new employer contribution rate for the TPS was implemented in September 2015.
A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website at the following location: https://www.teacherspensions.co.uk/news/employers/2014/06/publication-of-the-valuation-report.aspx
Scheme Changes
Following the Hutton report in March 2011 and the subsequent consultations with trade unions and other representative bodies on reform of the TPS, the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015.
The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.
In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall up to three and a half years outside of the 10 year protection. 73 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
18 Pension and Similar Obligations cont’d
Regulations giving effect to a reformed Teachers’ Pension Scheme came into force on 1 April 2014 and the reformed scheme com- menced on 1 April 2015.
The pension costs paid to TPS in the year amounted to £728,747 (2017: £645,372).
FRS 102 (28)
Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The College is unable to identify its share of the underlying assets and liabilities of the plan.
Accordingly, the College has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The College has set out above the information available on the plan and the implications for the College in terms of the anticipated contribution rates.
Local Government Pension Scheme (LGPS)
The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Dyfed Local Authority. The total contributions made for the year ended 31 July 2018 were £1,025,435 of which employer’s contributions totalled £722,993 and em- ployees’ contributions totalled £302,442. The agreed contribution rates to the 31st March 2019 are 17.0% for employers and range from 5.5% to 12.5% for employees, depending on salary.
Principal Actuarial Assumptions
The following information is based upon a full actuarial valuation of the fund at 31 March 2018 updated to 31 July 2018 by a quali- fied independent actuary.
2018 2017 Rate of CPI inflation 2.1% 2.1% Rate of increase in salaries 3.6% 3.6% Rate of increase in pensions 2.2% 2.1% Discount rate 2.9% 2.6%
The assumed life expectations on retirement age 65 are: 2018 2017 Years Years Retiring Today – Males 22.9 22.8 Retiring Today – Females 25.6 25.5 Retiring in 20 years’ time – Males 25.1 25.0 Retiring in 20 years’ time – Females 27.9 27.8
74 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
18 Pension and Similar Obligations cont’d
The College’s share of the assets in the plan at the balance sheet date: Value at Value at 31 July 31 July 2018 2017 £’000 £’000 Equities 18,445 16,583 Government Bonds 2,274 2,152 Other Bonds 2,457 2,222 Property 2,849 2,269 Other 105 164
26,130 23,390
The amount included in the balance sheet in respect of the defined benefit pension plan
2018 2017 £’000 £’000 Fair value of plan assets 26,130 23,390 Present value of plan liabilities (31,972) (31,556)
(5,842) (8,166)
The analysis of amounts charged to the Statement of comprehensive income and expenditure is as follows
2018 2017 £’000 £’000 Charged to staff costs Current service costs (1,496) (1,161) Administration expenses (29) (25) Effect of curtailment - (4) Total Charge to staff costs (1,525) (1,190)
Charge for net return on pension scheme Interest Income 616 540 Interest cost (819) (748) Net interest charged (203) (208)
Credit to other comprehensive income Return on pension plan assets 1,600 1,801 Changes in assumptions underlying the present value of plan liabilities 1,725 (896) Actuarial Gain 3,325 905
Total credit / (charge) to the Income Statement 1,597 (493) 75 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
18 Pension and Similar Obligations cont’d
Movement in net defined liability during the year 2018 2017 £’000 £’000 Deficit at 1 August (8,166) (8,304) Movement in year: Current service cost (1,496) (1,161) Net interest on the defined liability (203) (208) Administration costs (29) (25) Effect of curtailments - (4) Contributions 727 631 Actuarial gain 3,325 905
Net defined liability at 31 July (5,842) (8,166)
Asset and liability reconciliation
Changes in the present value of defined benefit obligations
2018 2017 £’000 £’000 Defined benefit obligations at start of period (31,556) (28,794) Current service cost (1,496) (1,161) Interest cost (819) (748) Contribution by scheme participants (302) (283) Changes in financial assumptions 1,725 (896) Curtailments - (4) Benefits paid 476 330
Net defined liability at 31 July (31,972) (31,556)
Changes in fair value of plan assets 2018 2017 £’000 £’000 Fair value of plan assets at start of year 23,390 20,490 Return on plan assets 616 540 Remeasurements (assets) 1,600 1,801 Administration costs (29) (25) Employer contributions 727 631 Contributions by scheme participants 302 283 Benefits paid (476) (330)
Fair value of plan assets at 31 July 26,130 23,390 76 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
19 Capital Expenditure 2018 2017 £’000 £’000 Purchase of tangible fixed assets (2,041) (6,678) Proceeds from sale of tangible fixed assets 3 22 Capital grants received 407 4,259
Net cash outflow from capital expenditure (1,631) (2,397)
20 Analysis of Changes in Net Funds
At 1 August Cash flow Non-cash At 31 July 2017 Movement 2018 £’000 £’000 £’000 £’000 Cash at bank and in hand 4,679 (448) - 4,231 Bank loans due within one year (133) 132 (127) (128) Bank loans due after one year (969) - 127 (842)
Net funds 3,577 (316) - 3,261
21 Capital commitments 2018 2017 £’000 £’000 Capital expenditure contracted for at 31 July not provided for in the financial statements. 42 686
22 Financial Commitments
At 31 July the College had future minimum lease payments under non-cancellable operating leases as follows:
2018 2017 £’000 £’000 Expiring less than one year 71 48 Expiring between two and five years inclusive 38 41 Expiring in more than five years 57 63
166 152
77 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
23 Related Party Transactions
Due to the nature of the College’s operations and the composition of the Board of Governors (being drawn from local public and private sector organisations) it is inevitable that transactions will take place with organisations in which a member of the Board of Governors may have an interest. All transactions involving organisations in which a member of the Board of Governors may have an interest are conducted at arm’s length and in accordance with the College’s financial regulations and normal procurement procedures.
The College entered into the following transactions with organisations in which a member of the Board of Governors had an interest: Sales to related Purchases from Balances owed party related party by/(owed to) at Restated year end 2018 2017 2018 2017 2018 2017 £’000 £’000 £’000 £’000 £’000 £’000 Details of related party
Pembrokeshire County Council 302 361 510 350 54 53 Valero 19 40 - - - - Milford Haven Port Authority 2 3 103 112 - (3) Carreg Construction 3 - - - - - PLANED 1 - - - - - Swansea University 8 4 - - - -
24 Financial Contingency Fund
The College acts as agent in the administration of learner support funds which are available solely for learners. The grants and related disbursements are excluded from the Statement of Comprehensive Income.
2018 2017 £’000 £’000 Brought Forward 1 August 4 24 Received from WG 215 215 Pembrokeshire College Contribution 5 -
224 239
Disbursed to Learners (224) (235)
Balance unspent - 4
Summary of balance unspent at 31st July
Retained for following year - 4
Balance unspent - 4 78 PEMBROKESHIRE COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2018
25 Wholly owned Subsidiary - Pembrokeshire Apprenticeship Scheme
These results of Pembrokeshire Apprenticeship Scheme have not been consolidated with those of Pembrokeshire College as the Corporation Board considers that the amounts involved are not material.
2018 2017 Income & Expenditure Account £’000 £’000 Income Welsh Government Grant 10 - Sponsorship money 5 21 Employer wage reimbursements 22 18 Deferred capital grant release 3 2 40 41 Expenditure Apprentice Pay costs 37 35 Non pay costs 3 6 40 41
Result for the year - -
2018 2017 Balance Sheet £’000 £’000 Fixed Assets Plant & Machinery - 8 Total Fixed Assets - 8 Current Assets Debtors 6 4 Cash at Bank and in Hand 4 1 Total Current Assets 10 5 Creditors: amounts falling due within one year Other Creditors 10 9 Deferred capital grant - 2 Total Current Liabilities 10 11 Creditors: amounts falling due after more than one year Deferred capital grant - 2 Total Long Term Liabilities - 2 Net Assets - -
General Reserve Total Funds - -
The Pembrokeshire Apprenticeship Scheme ceased trading in July 2018 following the final employees completing their apprenticeships.
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