Financial Statements 2023-24 by Heart of Yorkshire Education Group

HEART OF

31 JULY 2024

EDUCATION

Heart of Yorkshire Education Group

KeyManagementPersonnel,BoardofGovernorsandProfessionalAdvisors2 ReportoftheGoverningBody

StatementofCorporateGovernanceandInternalControl.............:.:ccece20

StatementontheGroup’sRegularity,ProprietyandCompliance....................33 StatementofResponsibilitiesoftheMembersoftheCorporation...................35

IndependentAuditor’sReporttotheCorporationOfTheHeartOfYorkshire EducationGroup

ConsolidatedandCollegeStatementsofComprehensiveIncome....................42

ConsolidatedStatementOfCashFIOWS..........cccescssccesseeesseseeseeeeeneeeseeeesneeteeneeees43

ConsolidatedandCollegeBalanceSheetsasat31July.......eeeeeeeeeeeeeeee44

ConsolidatedandCollegeStatementsofChangesinReserves(groupand OGcssasecccenicsiiaseastenactedRANSRASARAINSASTRAamndiwatenUeoenemmeandome45

NotestotheFinancialStatementsforthePeriodAugust2023to31 SOY20264eroscccscouncrearseavewumeessersiveuedatrvenraweneneueneuniaetammITRONINRETneTENENORS46 ACrONYMGIOSSAPY........cccccsscesscseseneeeeeseesseesceessescoesaseaeeseseasceseeeeesereeeseneeneeneaeneeenee78

For the year ended 31 July 2024

KEY MANAGEMENT PERSONNEL, BOARD OF GOVERNORS AND PROFESSIONAL ADVISORS

Keymanagementpersonnel

Keymanagementpersonnelarerepresentedbythefollowingin2023/24: Post Title Post Holder Date Leaving AppointedDate

Principal,ChiefExecutiveandSamWright01/03/2011N/A AccountingOfficer

GroupExecutiveDirector:FinanceandJasonPepper12/06/2017N/A Resources

GroupExecutiveDirector:CurriculumLisaMacdonald01/02/2012N/A andQuality

GroupExecutiveDirector:StudentClareAllcock14/05/2012N/A ExperienceandStudentSupport

GroupExecutiveDirector:PeopleKarenSykes30/09/2002N/A

GroupExecutiveDirector:ExternalLorraineCross01/10/2021N/A Partnerships,SkillsDevelopmentand Apprentices

HeadofGovernanceandLegalServices|SamCremore07/01/2019N/A andClerk

BoardofGovernors

AfulllistofGovernorsisgivenonpages22-24ofthesefinancialstatements.

SamCremoreactedasClerktotheCorporationthroughouttheyear.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024

ProfessionalAdvisors

FinancialStatementsand Bankers: Regularityauditor: CloseBrothersLimited

RSMUKAuditLLP 10CrownPlace TwoHumberQuays London WellingtonStreetWest EC2A4FT Hull HU12BN

Internalauditors: ICCA LloydsBankplc

McLarenHouse 2ndFloor 46Priory LisbonHouse Queensway 116WellingtonStreet Birmingham Leeds B47LR LS14LT

Solicitors: EvershedsSutherland BridgewaterPlace WaterLane Leeds LS115DR

InsuranceBrokers: ZurichMunicipal 1EastParade Leeds LS12UA

FINANCIAL STATEMENTS

For the year ended 31 July 2024

REPORT OF THE GOVERNING BODY

HeartofYorkshire

Education Group

Thememberspresenttheirreportandtheauditedfinancialstatementsfortheyearended 31July2024.

KeyDevelopments

ThemergerofWakefieldCollegeandSelbyCollegeinMarch2022establishedtheHeartof YorkshireEducationGroupandalsosawthecreationofanewCastlefordCollegealongside Selby and Wakefield Colleges.

Theacademicyear2023/24hasbeenthesecondcompleteyearforourGroupofthree collegesandkeydevelopmentsinclude-

eThedevelopmentofaclearGroupcurriculumplanthatrespondstoregionalandlocal skillsneedsandhasdevelopedsomespecificandinnovativeprovisionthroughLSIFs and Skills Boot Camps.

eThequalityofprovisionhasbeenrecognisedthroughtheGroup’sOfstedinspection, whichtookplaceinOctober2023.InspectorsgradedtheGroupas‘Good’overall andforeveryjudgementandprovisiontype,andas‘Strong’forourcontributionto meetingskillsneeds.

eWhilststillworkingthroughthelegacyofthepandemicandtheimpactthishashad onyoungpeopleandtheirmentalhealthinparticular,alargeproportionofthe Group’sprovisionhasdeliveredstrongachievementratesandahighproportionof positivedestinationsforlearners.

eWehavecontinuedtodeliverourPeople&CultureStrategy,andstaffsurvey participationandfeedbackhasimprovedyearonyear.

eInspiteofsomerealchallengesaroundrecruitmentofstaffandtherelianceoncostly agencyworkerstofillanumberofvacancies,particularlyforEngineeringand Constructioncourses,wehavecontinuedtomanageourfinancesprudentlyandhave securedgrowthoffundingandincomeinanumberofareas,resultingin‘Good’ financialhealth.

eWehavetakenforwardthethreestrandsofourSustainabilityStrategy—the DevelopmentofourplanforNetZero;Sustainabledevelopmentwithincurriculum, greenskillsandpartnerships;Educationandvisibilityforsustainablefuture.

FINANCIAL STATEMENTS

For the year ended 31 July 2024

Nature,ObjectivesandStrategy

LegalStatus

HeartofYorkshire

Education Group

TheHeartofYorkshireEducationGroupCorporationwasestablishedundertheFurtherand HigherEducationAct1992forthepurposeofconductingWakefieldCollege.On1March 2022,theCollegemergedwithSelbyCollegeandfollowingSecretaryofStateconsent,the nameoftheneworganisationwaschangedtotheHeartofYorkshireEducationGroup.The GroupisanexemptcharityforthepurposesofPart3oftheCharitiesAct2011.

TheGroupconsistsofWakefield,SelbyandCastlefordCollegesandHeartofYorkshire EducationLtd,adormantcompany.

TheGroup’sregisteredaddressisMargaretStreet,Wakefield,WestYorkshire,WF12DH.

Mission

TheGroup’sMissionis:

“Ourstaffpositivelytransformourstudents’livesandthecommunitiesweservebyputting themattheheartofeverythingwedo.”

PublicBenefit

TheHeartofYorkshireEducationGroupisanexemptcharityunderPart3oftheCharities Act2011andfollowingtheMachineryofGovernmentchangesinJuly2016,isregulatedby theSecretaryofStateforEducation.ThemembersoftheGoverningBody,whoaretrustees ofthecharity,aredisclosedonpages22-24.

InsettingandreviewingtheGroup’sstrategicobjectives,theGoverningBodyhashaddue regardfortheCharityCommission’sguidanceonpublicbenefitandparticularlyuponits supplementaryguidanceontheadvancementofeducation.

Indeliveringitsmission,theGroupprovidesidentifiablepublicbenefitsthroughthedelivery ofeducationandtraining.In2023/24,theGrouphadatotalof10,545students,comprising:

16-19year-olds4,591

Adultstudentaged19+4,066

HEstudents 613

Apprentices 1,275

Includedintheaboveare412highneedslearners.

TheGroupiscommittedtoinclusivityandprovidingeffectiveinformation,adviceand guidancetoprospectivestudentstoenablethemtodeveloptheirskillsandprogressinto meaningfulemployment.

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

ImplementationofStrategicPlan

TheStrategicPlan2022/25wasdevisedforthenewlymergedGroupinsummer2022and approvedbytheGroupBoardinOctober2022.

ThisPlanwasbasedaroundfivestrategicobjectives,eachofwhichwasunderpinnedbya rangeofKeyPerformanceIndicators(KPIs).TheCorporationmonitorsperformance againstthesestrategicobjectivesandKPlsthroughouttheyearviaconsiderationofa performancedashboardateachGoverningBodymeeting,aswellasscrutinyattherelevant Committeemeetings.

TheGroupBoardagreedthefollowingstrategicobjectivesfortheperiod2022/25:

S01:

SO2:

SO3:

SO4:

Developaskillsofferthatisalignedtotheneedsoftheareasweservethrough partnershipandcollaboration.

Ensureourcurriculumdeliveryishighquality,inclusiveandambitiousandwe provideanoutstandingstudentexperience.

Developahighperformingcultureandpeoplewhoareeffectiveandcommitted.

Ensureourfinancesarestrongtofacilitateinvestmentinourresourcesandour offer.

SO5:Commitwholeheartedlytothedevelopmentofsustainabilitywithinourcommunities.

Inthedeliveryoftheseobjectives,thefollowingkeyachievementswererealisedintheyear ending31July2024:

DeliveryofaninclusiveandambitiouscurriculumrespondingtoWakefield/West YorkshireandSelby/YorkandNorthYorkshireskillsprioritiesandlabourmarket needs.90%ofprovisionwasinpriorityskillsectorareas.

Strongachievementrates.Passratesinthemajorityofprogrammescontinuedtobe highacrossalltypesofprovision.

Extensivefocusonstudentandstaffmentalhealthandwellbeing,providinghigh levelsofsupportandawiderangeofengagementactivities.

Excellentstudentsurveyresponselevels,withthevastmajorityofresponsesat4+ outofpossible5grades(goodorbetter).

Improvinglevelsofengagementandratingswithinthestaffsurveysthroughoutthe year.

The National Student Satisfaction (NSS) survey achieved a response rate of 87%, whichisaboveaverageforthesector(averageresponserateacrosswholesector 71%).TheGroupwaswellabovethesectoraveragein7outofthe9categories.

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS

For the year ended 31July 2024

ImplementationofStrategicPlan(continued)

eMaintenanceofourMatrixAccreditationduringourannualreviewofcontinuous improvement.

eMaintenanceoftheQualityStandardinCarerSupportaccreditationforourworkin supportingYoungAdultCarers.

e20%increasedattendanceatstudentrecruitmenteventsand10%increased numbersofapplications,resultingingrowthofenrolmentsandlearnernumbers.

eExpansionofschoolsliaisonworkandestablishmentofaChildren’sUniversity.

eContinuedsubstantialinvestmentintheGroup'sestateandITinfrastructure,andthe creationofanewGroupnetwork.

eExcellentprogressonoursustainabilityagenda,withfurtherreductionsincarbon emissions;andtheembeddingofsustainabilityintothecurriculum.

FinancialObjectives

TheCorporationoftheHeartofYorkshireEducationGroupsetthefollowingstrategic financialobjectivesfortheGroupin2023/24. (i)

Achieveacalculatedfinancialhealthscoreof‘Good’.

Thistargethasbeenachieved.TheGrouphasachievedacalculatedfinancialhealth gradeof‘Good’.

TheGroupachievedanESFAfinancialhealthgradefortheyearended31July2023of ‘Good’.

ToachieveanEBITDAofatleast£1.3mat31July2024.

Thistargethasbeenachieved.TheGroupachievedanEBITDAof£1.63mat31July 2024.

TheGroupachievedanEBITDAof£1.65mat31July2023.

Toensurethatstaffingcostswerenomorethan73.20%ofeligibleincome.

Thistargethasbeenachieved.Groupstaffingcosts(excludingrestructuring,enhanced pensionandFRS102charges)were70.64%fortheyearending31July2024.

Groupstaffingcostswere71.48%ofeligibleincomefortheyearended31July2023.

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS

For the year ended 31 July 2024

PerformanceIndicators

HeartofYorkshire

Education Group

TheGroupiscommittedtoobservingtheimportanceofsectormeasuresandindicatorsand usestheQualificationAchievementRatereport,NationalAchievementRateTables,andthe DfEPerformanceTablestocompareperformanceinmeasuressuchasretention,passand achievementratesandvalueadded.

KPlsandotherPerformanceIndicators(Pls)covertheGroup’soperationsandinclude attendance,studentnumbers,lessonobservationactivity,fundingandallocations,financial objectives,staffabsence,staffutilisationandpropertycondition.CertainPlsarereviewed cyclicallyaccordingtotheavailabilityandcurrencyofthedata.Theseincludestudent satisfaction,destinationdataandachievementrates.

Governorsensuredallperformanceindicatorswerescrutinisedthroughouttheyear.Plsthat sawstrongorimprovedperformanceincluded:

. Achievementrates

. Studentrecruitment

. FinancialPerformance

° Studentsatisfaction

Financial Position

FinancialResults

TheGroupproducedanoperatingsurplus(beforeremeasurementonnetdefinedpension benefitscheme)intheyearof£104,000,afterpensionservicegainof£177,000(2022/23: operatingdeficit£1,620,000,afterpensionservicecostsof£1,149,000).

Tangiblefixedassetadditionsduringtheyearamountedto£3.61m(2022/23:£2.61m).

TheGroupreliessignificantlyontheeducationsectorfundingbodiesasitsprincipalfunding source,largelyfromrecurrentgrants.In2023/24,thesefundingbodiesprovided84.54%of the Group’s total income (2022/23: 84.20%).

TheGroupcontinuestohavenoLGPSliabilityintheyearending31July2024.Thiswas eliminatedin2022/23due,inlargepart,toachangeinthediscountrateusedtocalculate schemeliabilitiesandachangeinthedemographicassumptionsusedbytheactuary.The Group’sshareoftheresultingnetdefinedassetasat31July2024hasbeenlimitedbythe applicationofanassetceilingandthereforetheamountshowninthebalancesheetiszero.

In2022/23theGroupwassubjecttoanESFAILRFundingauditinrespectofSelbyCollege forthe2021/22academicyear.In2023/24theAuditwasextendedtocoverthe2020/21 academicyear.Afinalauditreportfor2020/21wasissuedinSeptember2024anda provisionwasmadeforclawbackoffunding.

Heart of Yorkshire Education Group

FINANCIAL

STATEMENTS

For the year ended 31 July 2024

TreasuryPoliciesandObjectives

HeartofYorkshire

Education Group

TreasurymanagementisthemanagementoftheGroup’scashflows,itsbanking,money marketandcapitalmarkettransactions;theeffectivecontroloftherisksassociatedwiththose activities;andthepursuitofoptimumperformanceconsistentwiththoserisks.

TheGroupgenerated£466,000ofinvestmentincome(2022/23:£141,000)excluding endowments,fromthemanagementofitscashbalances.

AnyborrowingrequirestheauthorisationoftheCorporationandtheDfE/ESFAfollowingONS reclassification.At31July2024theGrouphadnobankdebt.

AkeyfocusoftreasurymanagementactivityfortheGroupistoensurethatresourcesarein placetosupportthepropertystrategyandinvestinotherelementsoftheGroup’soperations. Therehasbeensignificantinvestmentinbothteachingandlearninginfrastructureand staffingattheGroupinrecentyears.

InNovember2022,thestatutoryFEsectorinEnglandwasreclassifiedintothecentral governmentsector,meaningthatcollegesmustnowmeettheoverallrequirementsinHM Treasury’sdocument,‘ManagingPublicMoney’.TheESFAhaspublished6‘bite-sized guides’toaidcollegesinmeetingtherequirementsofthetransition.

CashFlowsandliquidity

Therewasanetcashinflowonoperatingactivitiesof£3,228,000duringtheyear(2022/23: £5,125,000).

TheGroup’scashandinvestmentbalancesstoodat£13,440,000(31July2023: £13,359,000).

Aswellasprovidingnecessarydaytodaycashrequirementsandsufficientcashreserves, theGroupintendstoinvestresourcesasoutlinedintheFutureProspectssection,below.

ReservesPolicy

AreservespolicywasapprovedbytheGroup’sFinance,People&ResourcesCommitteeon the21February2024.

AkeyfocusoftheCorporationinrecentyearshasbeentoensurethattheGrouphas adequatereservestosupportitscoreactivities.Monitoringandoversightofthereserves heldbytheGroupisundertakenthroughouttheyear.Thisisachievedthroughregular managementaccounts,cashflowmonitoringandupdatestoourfinancialforecasts.

TheGroup’spolicyforreservesislinkedto,andpartof,itsformalconsiderationoftheGoing Concernpresumptionandanappropriatelevelofreservesunderliestheforecastsand

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS

For theyear ended 31 July 2024

ReservesPolicy(continued)

cashflowprojectionsusedbyGovernorstoconfirmthattheHeartofYorkshireEducation Groupisagoingconcernandthatitisabletomeetitsliabilitiesastheyarise.

TheGroupcurrentlyhasasmall,restrictedreserve,theresultofapastlegacy.Asatthe balancesheetdate,theTotalUnrestrictedReservesstandat£53.04m(2022/23:£53.16m).

FinancialHealth

TheGroupisrequiredtocompletetheannualFinanceRecordfortheEducationandSkills FundingAgency(“ESFA”).TheFinanceRecordproducesafinancialhealthgrading.The Groupexpectstoachieveafinancialhealthgradeof“Good”fortheyearending31July2024.

TheGrouphasmaintainedrobustfinancialhealththroughacarefulapproachtocurriculum planning,budgetsettingandcashflowmanagement.AlthoughtheGrouphasmadea significantinvestmentininfrastructureinrecentyears,ithasbeenabletofinancethesefrom reservesandcapitalgrants,andsohasnodebtandcontinuestoretainanappropriatelevel ofcashreserves.

Thecurrentmacroeconomicenvironmentstillpresentsadditionalfinancialchallenges. Fundinglevelsandtheprospectsoffurtherpublicsectorbudgetreductionsarestillrisksto theGroupandtothewidersector.Inflation,particularlyinrespectofstaffingandutilitycosts, continuetoplaceadditionalpressureontheGroupoperatingposition.

Current and Future Development and Performance

GroupCompanies

TheGroupcomprisestheformerWakefieldandSelbyCollegesandsubsidiarycompany HeartofYorkshireEducationLtd.

SupportingFuturesSelbyLtd,asubsidiarycompanyoftheformerSelbyCollege,was dissolvedon30January2024.Thefinancialstatementsfor2023/24resultsandfinancial positionarethereforefortheCollegeonly.

HeartofYorkshireEducationLtdisadormantcompany.

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS

For the year ended 31 July 2024

StudentNumbers

HeartofYorkshire

Education Group

In2023/24theGroupdeliveredactivitythatproduced£34.2minrecurrentfundingbodymain allocationsfromtheESFA,TheOfficeforStudentsandtheWestYorkshireCombined Authority(2022/23-£31.43m).Totalstudentnumbersinyearwere10,545:thisincludes learnersfundedbyourmainfundingbodiesinadditiontolearnersfundedfromothersources (2022/23—10,191).

Students’Achievements

Theyearending31July2023wasthefirstfullyearofoperationfortheHeartofYorkshire EducationGroup.

Althoughareturntonormalitywaswelcomedbystudentsandstaff,wearestillexperiencing asignificantlegacyfromCovid-19;bothintermsoflearnerbehaviourandmentalhealth.This isconsistentwithinformationwehavereceivedfromourpartnerfeederschoolsandotherFE providerswithinthesector.Weanticipatethatthepandemicwillcontinuetothrowupfurther challengesintermsoflearners’readinesstostudyandadditionallearnersupport requirements.

Studentdemandformentalhealthsupportremainedveryhighin2023/24andasignificant proportionofstudentsthatenrolledwithusthisyeardisclosedsignificantmentalhealth issues.Adultlearnersseemtohavebeenlessaffectedbythepandemicbuthaveinstead facedsignificanteconomicchallenges.

Economicdrivershavecontinuedtohaveanadverseimpactonouryoungerstudents,with anincreasingnumberleavingtheirstudiesearlytotakeupemployment.Overallclassroom learnerretentionfortheGroupin2023/24was86.90%.Thisisconsistentwithretentionrates in2022/23.

TheGroupoffersawiderangeofacademic,vocationalandapprenticeshipprovision designedtomeetbothlocalandregionalskillspriorities.Provisionisbroughttolifethrough industryprojects,workplacements,trips,visits,andcompetitions.

FutureProspects

TheGrouphasagreedtotalfundingbodyincomeof£36.49mforthe2024/25financialyear. ThisincludesfundingfromtheOfficeforStudentswhichhasbeenconfirmedat£262,379for thesameperiod.

TheGrouphasseenafurtherincreasein16-18studentnumbersatthestartofthe2024/25 academicyear.

Lookingforward,theGroupwillcontinuetofacecompetitionfromavarietyofschoolsand collegesacrossWestandNorthYorkshire,althoughfeederyearcohortsizesremainstrong forthenexttwoyears.

Heart of Yorkshire Education Group

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

FutureProspects(continued)

Transporthasbecomeanincreasinglyimportantfactorinrespectofstudentrecruitment.Bus servicesacrossbothWestandNorthYorkshirehavebeenrationalised,andthishasadded additionalbarrierstoparticipation;inparticularforpotentialstudentswholiveinruralorsemiruralareas.WithinWestYorkshirethereareplanstoaddressthetransportinfrastructure, butthesearelikelytotakeseveralyearstoimplement.

TheGroupoperatesacrosstwocombinedauthorities—-WestYorkshireCombinedAuthority, whichiswellestablishedandwhereadultfundinghasbeendevolvedforanumberofyears, andYork&NorthYorkshireCombinedAuthority,whichwasestablishedinFebruary2024. DevolutionofadultfundinginYork&NorthYorkshirewillbeimplementedfromAugust2025. Inaddition,theGrouphasanESFAadultfundingcontractfornon-devolvedareas.The amountoffundingfromeachfundingstreamisuncertainatthisstage,butwearewell positioned.

TheGroupisembeddedwithinLocalSkillsImprovementPlansandhasbenefittedfromLocal SkillsImprovementFundswithinbothcombinedauthoritiesandhasalsosecuredSkillsBoot Campfundingtodeveloppriorityskillsinboth.TheGroupwillcontinuetoworkwithinthe fundinginfrastructurestogrowthistypeoffundingforadultprovision.

TheGroupwillcontinuetodevelopitsinfrastructuretoensureallstudentshaveaccessto highqualityteachingandlearningenvironmentsthatarebothflexibleandefficient.Key prioritiesfortheimmediatefuturewillbe:

eToexpandthespecialistconstructionworkshopaccommodationthatwehaveacross theGroup.ThiswillincludethecreationofanewDfEfundedconstructionworkshop atourCastlefordcampus(partlyfundedthroughthePost-16CapacityFund).

eToensurethatthereisthenecessaryaccommodationandinfrastructureinplaceto supportthefurtherdevelopmentofentryandlower-levelcurriculumtofacilitate inclusivity.

e«Tocontinuetoinvestinourequipmentandfacilities,particularlyinprioritysectors suchasEngineering,Automotive,ConstructionandHealth&SocialCaretoensure weareoperatingtoindustrystandards.

eToinvestinourITinfrastructuretosupportthedeliveryofourDigitalStrategyandiInnovateimplementationplans.

eWewillcontinuetoinvestinsafeguardingtechnologyandfacilitiestoensureour studentsarekeptsafe.

InadditiontosuccessfullybiddingforESFAcapitalfunding,theGrouphasalsobeenawarded significantcapitalgrantsfromtheOfficeforStudentsandtheLocalSkillsImprovementFund.

Wewillcontinuetopursueanycapitalfundingopportunitiesthatmayassistwiththedelivery oftheGroupInfrastructureStrategy,whichwillbereviewednextyear,alongsideourStrategic Plan.

Heart of Yorkshire Education Group

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

FutureProspects(continued)

CorporationmembershavenoconcernsabouttheGroup’scontinuedabilitytobea successfulprovideroflearningtoitscommunities,noraboutitsabilitytoadequatelyresource teachingandlearning.TheGrouphasareasonablelevelofreserves,andsohasasolid platformfromwhichtocontinueitssuccess.

Inadditiontotheriskmanagementarrangementsoutlinedelsewhereinthisreport,andthe robustapproachtakentoriskmanagement,arrangementsareinplacetomonitorcloselythe performanceofitsoperations,andtheGrouphasaconstantfocusongrowingincome, controllingcostsandachievingefficienciestoensurethatresourcescanbere-investedin coreactivities.

DepartmentforEducationChanges

InSeptember2024,theDepartmentforEducation(DfE)announcedthedecisiontotransfer thecurrentfunctionsoftheESFAintothedepartment.ThismeansthattheESFAasan executiveagencywillcloseonMonday31March2025.Thischangeisnotexpectedtohave anydaytodayimpactontheGroup’sactivities.

Resources

TheGrouphasvariousresourcesthatitcandeployinpursuitofitsstrategicobjectives.

eAhighlycommittedgroupofemployees.At31July2024theGroupstaffemployed 869colleagues,ofwhich367wereteachingstaff,223werestudentsupportstaffand 279werenon-teachingstaff.

eTangibleresourcesincludetheGroupcampusesinCastleford,SelbyandWakefield.

eTheGrouphas£80.44moffixedassets. Theseincludelandandbuildingswitha bookvalueof£76.79m,andequipmentwithabookvalueof£3.61m.

eAt31July2024theGroupheld£13.44mofcash,andhadnetcurrentassetsof £5.37m.

eTheGroupenjoysahighprofileandanexcellentreputationwithinandbeyondWest andNorthYorkshire.

Principalrisksanduncertainties

TheGroup’sabilitytoachieveitsvisionandstrategicobjectiveswillbeaffectedbyitscapacity tomitigatetherisksanduncertaintiesthatitfaces.TheGrouphaswell-establishedsystems ofinternalcontrolincludingfinancial,operationalandriskmanagement,whicharedesigned toprotecttheGroup’sassetsandreputation.

ThekeyelementsoftheGroup’sriskmanagementframeworkareidentifiedintheStatement ofCorporateGovernanceandInternalControlonpage20.

TheGroup’sriskenvironmentismonitoredregularlybyGroupmanagers,theExecutive TeamandGovernorstoensurethatanyemergingrisksareidentified,prioritisedand Page13

FINANCIAL STATEMENTS

For the year ended 31 July 2024

Principalrisksanduncertainties(continued)

HeartofYorkshire

Education Group

mitigatedandthatopportunitiesaremaximised.Thebroadcategoriesofriskfacingthe Groupareoutlinedbelow.NotallofthesefactorsarewithintheGroup’scontrol.

eRealisinggrowthinhighqualityprovisionthrougheffectiverecruitment.

eAttracting,retaininganddevelopingasuitablepoolofstafftalent.

eEffectivelydeliveringournewmergedGroupstructurewithoutimpactonthe achievementoftheGroup’sstrategicobjectives.

eMitigatingtheafter-effectsofthepandemicintermsofsocialandwellbeingimpacts onourstudents.

eDefendingtheGroupfromasignificantcyber-attack.

eMaintainingthesolvencyoftheGroup.

eEmbeddingahigh-qualityteachingandlearningculture.

eAdequatelyplanningandresourcinganeffectivesafeguardinginfrastructure.

eDevelopinganddeliveringaneffectiveinfrastructurestrategy.

Ourresponsetotheseriskshasincluded:

eEnsuringwehaveeffectivemanagementinfrastructures,highqualityprovisionand studentrecruitmentstrategiesinplaceforallprovisiontypes.

eDevelopingeffectivestaffretentionandrecruitmentprocesses.

eEmbeddingeffectivecommunicationsonorganisationalchange.

e«Embeddingeffectivestudentexperienceandsupportinfrastructures.

eEnsuringstaffareeffectivelytrainedaroundcybersafety.

eContinuingtoidentifyoperatingefficienciesandgrowincomestreams.

eOngoingfocusonachievementratesandtargetssupportandCPDforteachingstaff.

eContinuingtoensuresafeguardingisprimaryfocusforallstaffmembers.

eCarefulestatemanagementandrobustplannedmaintenance.

Relationshipwithourpartners,stakeholdersandcommunities

StakeholderengagementisaparticularstrengthoftheHeartofYorkshireEducationGroup andwecontributetoandbenefitfromabroadrangeofimportantrelationships,asoutlinedin ourExternalStakeholder&EmployerEngagementStrategy2022/25andalsoourAnnual AccountabilityStatement&LocalNeedsDuty2024/25.Theseincludethosewith: eStudents; eParentsorCarersofStudents; eStaff;

eNational,RegionalandLocalEmployers;

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS

For the year ended 31 July 2024

Education Group

HeartofYorkshire

Relationshipwithourpartners,stakeholdersandcommunities (continued)

eCivicPartnersincludingWakefieldandNorthYorkshireLocalAuthorities;West YorkshireandYork&NorthYorkshireCombinedAuthorities;theChambersof Commerce;theFederationofSmallBusiness; eCommunityandvoluntaryorganisationsandmembers; eEducationalpartnersincludingotherFEinstitutions,localschoolsanduniversities; theChildren’sUniversity; eTradeunions;and eProfessionalbodiesandAwardingOrganisations.

TheGrouprecognisestheimportanceoftheserelationshipsandengagesinregular communicationwiththem.

TheGroupisawareofseveralissueswhichmayimpactonfuturefunding,including governmentpolicychanges,Growth&SkillsLevyplansanddevolutionoftheYork&North YorkshireCombinedAuthorityadulteducationbudget.TheGroup,inconjunctionwithitskey stakeholders,hasdevelopedastrategyforgrowthinresponsetothedevolutionagendaand topotentialpolicyreform.

Equality&diversity

TheGroupiscommittedtoensuringequalityofopportunityforallwholearnandworkhere. Werespectandvaluepositivelydifferencesinrace,gender,sexualorientation,ability,class andage.Westrivevigorouslytoremoveconditionswhichplacepeopleatadisadvantage andwewillactivelycombatbigotry.

InlinewiththePublicSectorEqualityDuty,theGrouphaspublishedequalityobjectives.The agreedobjectivesareoutlinedbelow-

eIndividualsaretreatedfairlywhilstatoneoftheGroup’scolleges,irrespectiveof characteristicsand/orbackground.

eToidentifyandaddressanyemerginggapsinachievementacrossallprovision includingStudyProgrammes,Apprenticeships,AdultProvisionandHE,forall monitoredcharacteristics.

eToproactivelylearnfromandrespondtoallfeedbackrelatedtoEDImatters, includingcomplaints,queries,andcompliments.

eTheGroupconsidersalljobapplicationsanonymouslyreducingthepossibilityofany consciousorsubconsciousbias.

eTheGrouphassigneduptotheAssociationofColleges’MentalHealthCharterfor staffandstudents.

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

GenderPayGap

TheGrouppublishesitsannualgenderpaygapreportonitswebsite(March24reporting).

eWomenearn77pforevery£1thatmenearnwhencomparingmedianhourlypay. Theirmedianhourlypayis23.20%lowerthanmen’s.

e«Womenoccupy51%ofthehighestpaidjobs.

eWomenoccupy80%ofthelowestpaidjobs.Thisproportionofwomeninlowerpaid jobs,parttime/termtimeonlyjobs,contributestotherebeingagenderpaygap.

TheGroupiscommittedtotacklepayinequalityandlowpay,asdemonstratedbypaying abovestatutoryminimumwageratesandacommitmenttotheLivingWageFoundation“Real LivingWage”asaminimumhourlyrate.During2023/24theGroupconcludedafull-scale reviewofitspayandgradingstructuretoaddresserodeddifferentialsandensureequityof payacrosstheGroup.Thishashadapositiveimpactonthegenderpaygap.

DisabilityStatement

TheGrouphasarangeofinitiativesaimedatsupportingindividualswithdisabilities.These include:

eEnhancingphysicalaccessibilityacrossallcampuses,includingregularmaintenance andupgradestoaccessiblefacilities.

eProvidingstate-of-the-artassistivetechnologiesandlearningaidstostudentswith specificlearningdifficultiesanddisabilities,ensuringtheyhaveequalaccessto educationalresources.

eOfferingspecialisedsupportservicessuchasmentalhealthcounselling,disability services,andindividualisedlearningsupportplanstailoredtomeetthespecificneeds ofstudentswithdisabilities.

eDeliveringcomprehensivetrainingtostaff,equippingthemwiththeknowledgeand skillstoeffectivelysupportindividualswithdisabilitiesandfosteraninclusivelearning andworkingenvironment.

eFundingreasonableadjustmentsinteaching,assessment,andcampusactivitiesto ensurefairaccesstoeducationandopportunitiesforallstudents.

TheHeartofYorkshireEducationGrouprecognisesitsresponsibilitytocreatean environmentthatpromotesstaffandstudentwellbeingandthatproactivelysupportsstaffand studentmentalhealth.InJune2019,theGroup'scommitmenttothiswasendorsedfurther throughthesigningoftheAoCMentalHealthandWellbeingCharter.Asemployers,the GrouphassigneduptotheMindfulEmployerCharterforemployerswhoarepositiveabout mental health.Employees have access toEmployer funded benefits thatcan provideindividualswithaccesstoarangeofconfidentialsupportmechanisms.

Heart of Yorkshire Education Group

FINANCIALSTATEMENTS

For the year ended 31 July 2024

DisabilityStatement(continued)

Heart of Yorkshire

EducationGroup

Aspartofourongoingcommitment,wecontinuouslyevaluateandupdateourpoliciesand practicestoensuretheyalignwiththeevolvingneedsofindividualswithdisabilities.Weare dedicatedtocreatinganinclusive,supportiveenvironmentwhereeveryonecansucceed,and wecontinuetoinvestininitiativesthatpromoteaccessibilityandequalopportunityacrossthe group.

CarbonEmissions

Wehaveastronghistoryoncarbonmanagementandhavebeenmakingfurtherheadway.

eWehavereducedourcarbonemissionsby13%overallto1203tonnes,whichshows areductionateachCollegeof:4%atCastleford;21%atSelby;and16%at Wakefield,comparedtoourpositionin2021/22.Thishasbeendonethrough replacingenergysources,throughPVsolarthermalpanels(inplaceorbeing reviewed),LEDlightingandmovingourvehiclestoelectrictosupportourcarbon management.Moreover,weusebuyingframeworkswithenvironmentstandardsto supportourprocurement.

eEnvironmentalconsiderationsareinplaceforanynewbuildsandrefurbishment.We arealsoincreasingbiodiversityatourcollegeswithwildflowerareas,treeplanting, bughotels,hedgehoghousesandbirdboxes.

eHeartofYorkshireEducationGroupsecuredin2023,aSustainabilityGrant,thiswill addressthecriticalsystemsidentifiedatSelbyandWakefieldCollege.Thegrantwill provideasignificantnumberofphotovoltaic(PV)panelsthatwillgenerateelectricity forthesites.TheenergygeneratedwillbeusedspecificallyatWakefieldCollegefor storageinaseriesofbatteriesthatwillmaintainITsystemsresilienceintheeventof powerfailure.

eInaddition,theGrouphasacontinuingcommitmentofzerowastelandfillthroughour considerationoffoodwasteandthroughthewastemanagementcompanyweutilise.

Tradeunionfacilitytime

TheTradeUnion(FacilityTimePublicationRequirements)Regulations2017requirethe Grouptopublishinformationonfacilitytimearrangementsfortradeunionofficialsatthe Group. Page17

STATEMENTS EducationGroup

HeartofYorkshire

For the year ended 31 July 2024

Tradeunionfacilitytime(continued)

NumbersofemployeeswhowererelevantFTEemployee period ; number 3 2.40

Percentageoftime Numberof employees

GoingConcern

Aftermakingappropriateenquiries,theCorporationconsidersthattheGrouphasadequate resourcestocontinueinoperationalexistencefortheforeseeablefutureandhas demonstratedthisinthedetailedfinancialplantoJuly2026,includingcostsrelatingtothe Group’scapitalprogramme.Forthisreason,itcontinuestoadoptthegoingconcernbasisin preparingthefinancialstatements.

TheGrouphasalonghistoryofgeneratingpositivecashflowsfromoperationsand controllingcoststhrougharobustprocessofbusinessreview.TheGrouphasproduceda detailedcashflowforecasttoJuly2026includingasensitivityanalysis,andthisissubjectto closefrequentmonitoring.TheGrouphasnobankloansoroverdraftfacilities.Whilst provisionhasbeenmadefortherecoveryofESFAfunding,followingauditsofSelby College’spre-mergerILR,theGroupremainsfinanciallyrobust.

TheGroup’sfinancialplan,sharedwiththeEducationandSkillsFundingAgencyinJuly 2024,demonstratedanabilitytocontinuewithitsplansforinvestmentandgeneratecash fromitsoperatingactivitiesuntilatleastJuly2026.

TheBoardtakesassurancefromthisbutrecognisesthechallengeslikelytoimpactonthe sectoroverthenexttwoyears.Inparticular,theBoardiscognisantofthepotentialof significantcostinflationincluding(butnotlimitedto)staffingcostsandfuel.TheAutumn

Heart of Yorkshire Education Group

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

GoingConcern(continued)

2024budgethasseenanincreaseinemployers’nationalinsurancerates,whichcouldadd upto£600,000ofcostinafullyear,basedoncurrentstaffinglevels.TheChancellorhas indicatedthatadditionalfundingtomeetthiscostwouldbemadeavailabletothepublic sector,includingfurthereducationcolleges,butthedetailsofthisareyettobeannounced.

DisclosureofInformationtoAuditors

Thememberswhoheldofficeatthedateofapprovalofthisreportconfirmthat,sofarasthey areeachaware,thereisnorelevantauditinformationofwhichtheGroup’sauditorsare unaware;andeachmemberhastakenallthestepsthatheorsheoughttohavetakentobe awareofanyrelevantauditinformationandtoestablishthattheGroup’sauditorsareaware ofthatinformation.

ApprovedbyorderofthemembersoftheCorporationon11December2024andsignedon itsbehalfby:

AML

AndrewMcConnellOBE ChairofCorporation

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL

Thefollowingstatementisprovidedtoenablereadersoftheannualreportandfinancial statementsoftheGrouptoobtainabetterunderstandingofitsgovernanceandlegal structure.Thisstatementcoverstheperiodfrom1August2023to31July2024andupto thedateofapprovaloftheannualreportandfinancialstatements.

TheGroupendeavourstoconductitsbusiness:

i.inaccordancewiththesevenprinciplesidentifiedbytheCommitteeonStandardsin PublicLife(selflessness,integrity,objectivity,accountability,openness,honestyand leadership);and

ii.infullaccordancewiththeguidancetocollegesfromtheAssociationofCollegesin TheCodeofGoodGovernanceforEnglishColleges(“theCode’).

IntheopinionoftheGovernors,theGroupcomplieswith/exceedsalltheprovisionsofthe Code,andithascompliedwiththeCodethroughouttheyearended31July2024as evidencedbyareviewconsideredbytheSearchandGovernanceCommitteeon4December 2024andsharedwiththeBoardthereafter.

TheInstrumentandArticles,andgovernancestructurewereupdatedandreviewedaspart ofmergeractivitieswithinagovernanceworkstream.AdvicewassoughtfromaNational LeaderofGovernance,andrecommendationsweresharedwiththeFECandESFA,before beingadoptedandapprovedbytheBoardon8February2022.

TheGoverningBodyrecognisesthatasabodyentrustedwithbothpublicandprivatefunds, ithasaparticulardutytoobservethehigheststandardsofcorporategovernanceatalltimes. Incarryingoutitsresponsibilities,ittakesfullaccountofTheCodeofGoodGovernancefor EnglishCollegesissuedbytheAssociationofColleges(AoC)inMarch2015(andamended inMay2019),whichitformallyadoptedinAugust2017.TheupdatedversionofTheCode ofGoodGovernanceforEnglishCollegesdated2023willbeadoptedfortheacademicyear 2024/25inaccordancewithAoCguidance.

TheGroupisanexemptcharitywithinthemeaningofPart3oftheCharitiesAct2011.The Governors,whoarealsotheTrusteesforthepurposesoftheCharitiesAct2011,confirmthat theyhavehaddueregardfortheCharityCommission’sguidanceonpublicbenefitandthat therequiredstatementsappearelsewhereinthesefinancialstatements.

ExternalReviewofGovernance

TheGroupBoardcommissionedtheAssociationofCollegestoundertakeaformalexternal reviewofGovernancethatcommencedinJanuary2024andendedinearlyApril2024.The reviewincludedinterviewswiththePrincipal,Chair,committeeChairs,co-optedgovernors andtheGovernanceProfessional,alongwithBoardandcommitteeobservationsanda comprehensivereviewofthepastworkundertakenbytheBoardanditscommittees.The Page20

FINANCIAL STATEMENTS

For the year ended 31 July 2024

HeartofYorkshire

Education Group

Statement of Corporate Governance and Internal Control (continued)

ExternalReviewofGovernance(continued)

reviewerassessedcompliancewiththeprinciplesoftheCodeofGoodGovernance,the EducationInspectionFrameworkandtheDFE’scurrentguidance,amongotherthings.There wasalsoaparticularemphasisonhowwelltheBoardstructurewasfunctioningfollowingthe recentmergerwithSelbyCollegeandtheGroup’simplementationofgovernancebest practice.Thefinalreportfromthisreviewwasreceivedon22April2024.Theminor recommendationsforimprovementarisingfromthisreporthavebeenincorporatedintoan actionplanwhichwasapprovedbytheBoardon2July2024andhasbeenpublishedonthe GovernancepageoftheGroup’swebsite.Theseactionsare,atthetimeofwriting,being implemented.Thereportconcludedasfollows:

‘TheoverallconclusiononBoardeffectivenessisthatthereisstrongevidencethat theBoardishighlyproficientandconsistentlyimpactspositivelyoncollegestrategy, effectiveness,andoutcomes.’

Responsibilitiesunderaccountabilityagreements

Thefurthereducationsectorwasreclassifiedasbeingpartofthepublicsectorfollowinga reviewbytheOfficeforNationalStatistics.Becauseofthisthegrouphasupdateditspolicies, practicesandprocessestoensurethattheyarefullycompliantwiththenewguidanceforFE CollegesissuedbytheDepartmentofEducation.

Heart of Yorkshire Education Group

For the year ended 31 July 2024

Education Group

HeartofYorkshire

Statement of Corporate Governance and Internal Control (continued)

MemberswhoservedtheCorporationsince1August2023

ThememberswhoservedontheCorporationduringtheyearanduptothedateofsignature ofthisreportarelistedinthetablebelow:

LukeAaron October 1year Student N/A Board:2/2 20232024

Mohammed|N/A October 4 - ExternalBoard Board:4/5 Ayub 2023 years

FayeBanks|N/A July2023 4 July ExternalBoardand Board:2/5 years2024 Audit Audit:1/4 Committee

Bea N/A October 1year|February|Student N/A Board:0/2 Bassford 2023 2024

RuthBaxter|N/A March2022|4 - Staff Boardand Board:4/5 years Curriculum C&Q:5/5 andQuality Committee

Jason N/A September|4 - ExternalAudit Audit:4/4 Brook 2022 years (Co- Committee opted)

NigelBrook|N/A April20224 - ExternalBoardand Board:5/5 years Audit Audit4/4 Committee

Michael N/A March2022|4 October|ExternalFinance, FP&R:% Clarke years2024 (Co- Peopleand opted) Resources Committee

Claire Oct2020 March2022|4 - ExternalBoard; Board:3/5 Corneille years Remuneration|RemCo:1/1 Committee; FP&R:3/4 Finance, S&G:4/4 Peopleand Resources Committee; andSearch and Governance Committee.

Heart of Yorkshire Education Group

FINANCIAL STATEMENTS

For the year ended 31 July 2024

HeartofYorkshire Education Group

Statement of Corporate Governance and Internal Control (continued)

MemberswhoservedtheCorporationsince1August2023(continued)

Louise N/A March2024|4 - ExternalCurriculum Board:2/2 Elkington years andQuality C&Q:1/1 Committee

Dmitry July2017|March2022|4 - ExternalBoard; Board:3/5 Fedotov July2021 years Curriculum C&Q:5/5 (Vice andQuality S&G:4/4 Chair) Committee; RemCo:0/1 Searchand Governance; and Remuneration

Brian N/A July2023 4 February|Staff Board Board:0/2 Fisher years2024

Julian N/A April20224 May ExternalCurriculum C&Q:2/3 Harrison years|2024 (Co- andQuality opted)Committeeee

Tony N/A July2023 4 AugustStaff Boardand Board:5/5 Jackson years|2024 Finance, FP&R:4/4 Peopleand Resources _|Committee

Annabelle|N/A December|4 ExternalCurriculum C&Q:4/5 James 2022 years (Co- andQuality opted)

George N/A October 1year|AugustStudent N/A Board:4/5 Kilner20232024

Jayne N/A September|4 - ExternalBoard; Board:5/5 King 2022 years Finance, FP&R:3/3 Peopleand RemCo:1/1 Resources Audit:1/1 Committee; Remuneration Committee; andAudit Committee

Quinn N/A March2024|1year|July Student N/A Board:0/1 Leavy 2024 Page23

Heart of Yorkshire Education Group

STATEMENTS

For the year ended 31 July 2024

HeartofYorkshire

Education Group

Statement of Corporate Governance and Internal Control (continued)

MemberswhoservedtheCorporationsince1August2023(continued)

Andrew Oct2006 March2022|4years

External Board; Board:5/5 McConnell|Oct2010 Finance, FP&R:4/4 OBE Oct2014 Peopleand S&G:4/4 (Chair) Jan2017 Resources RemCo:1/1 Committee; Dec 2018 Search and Governance Committee; and Remuneration Committee

AlexMiles N/A

March2022|4years|-

David Oct2020March2022|4years

External Curriculum C&Q:3/5 (Co- and=Quality opted) Committee

External Boardand Board:5/5 Powell Curriculum C&Q:5/5 andQuality

:Committee

Martyn April2020|March2022|4years|- External Board;AuditBoard:5/5 Shaw Committee; Audit:3/4 andS&G:3/4 Searchand Governance Committee

Vijay N/A March2022|4years|- External Boardand Board:4/5 Teeluck Curriculum C&Q:3/5 andQuality Committee

Neil July2020|March2022|4years|- External Boardand Board:5/5 Warren Finance,FP&R:4/4 Peopleand Resources Committee

Sam March2011|March2022|N/A - PrincipalBoardand Board:5/5 Wright SearchandS&G:3/4 Governance Committee

FINANCIAL STATEMENTS

For theyear ended 31 July 2024 _

HeartofYorkshire

Education Group

Statement of Corporate Governance and Internal Control (continued)

ItistheCorporation’sresponsibilitytobringindependentjudgementtobearonissuesof strategy,performance,resourcesandstandardsofconduct.

TheCorporationisprovidedwithregularandtimelyinformationontheoverallfinancial performanceoftheGrouptogetherwithotherinformationsuchasperformanceagainst fundingtargets,proposedcapitalexpenditure,qualitymattersandpersonnel-relatedmatters forexamplehealthandsafetyandenvironmentalissues.

TheCorporationmetregularlythroughouttheyearandsomeofitsbusinessisconducted throughcommittees.Eachcommitteehaswrittentermsofreference,whichhavebeen approvedbytheCorporation. CommitteesincludeAudit,Remuneration,Searchand Governance,CurriculumandQuality,Finance,PeopleandResources.

DecisionsofthesecommitteesareformallyreportedtotheCorporation.Fullminutesofall meetings,exceptthosedeemedtobeconfidentialbytheCorporation,areavailablefromthe ClerktotheCorporationat:

HeartofYorkshireEducationGroup

MargaretStreet Wakefield WestYorkshire WF12DH

TheClerktotheCorporationmaintainsaregisteroffinancialandpersonalinterestsofthe Governors.Theregisterisavailableforinspectionattheaboveaddress.

AllGovernorsareabletotakeindependentprofessionaladviceinfurtheranceoftheirduties, attheGroup’sexpenseandhaveaccesstotheClerktotheCorporation,whoisresponsible totheBoardforensuringthatallapplicableproceduresandregulationsarecompliedwith. Theappointment,evaluationandremovaloftheClerkaremattersfortheCorporationasa whole.

Formalagendas,papersandreportsaresuppliedtoGovernorsinatimelymanner,priorto Boardmeetings.Briefingsarealsoprovidedonanadhocbasis.

TheCorporationhasastrongandindependentnon-executiveelementandnoindividualor groupdominatesitsdecision-makingprocess.TheCorporationconsidersthateachofits non-executivemembersisindependentofmanagementandfreefromanybusinessorother relationshipwhichcouldmateriallyinterferewiththeexerciseoftheirindependentjudgement.

ThereisacleardivisionofresponsibilityinthattherolesoftheChairandAccountingOfficer (Principal)areseparate.

FINANCIAL STATEMENTS

For the year ended 31 July 2024

HeartofYorkshire

Education Group

Statement of Corporate Governance and Internal Control (continued)

AppointmentstotheCorporation

AnynewappointmentstotheCorporationareamatterfortheconsiderationofthe Corporationasawhole.TheCorporationhasaSearchandGovernanceCommittee,witha minimumoffivemembers,thatisresponsiblefortheselectionandnominationofanynew memberfortheCorporation’sconsiderationexceptforthePrincipalandAccountingOfficer andStaff/Studentmembers.TheCorporationisresponsibleforensuringthatappropriate trainingisprovidedasrequired.

MembersoftheCorporationareappointedforatermofofficenotexceedingfouryears.In accordancewiththeCode,memberswillnowservenomorethantwotermsexceptin exceptionalcircumstanceswherealongertermofofficeisconsideredbytheBoardtobein thebestinterestsoftheCorporation.

TheappointmentofAndrewMcConnellOBEasChairwasmadeafterdiscussingtheneed forcontinuityandstabilityoftheboard,post-merger.PartofMrMcConnell’sfinaltermof officeincludestheresponsibilityforensuringsuccessionplanningisinplaceforthefuture.

Corporationperformance

TheCorporationcarriedoutaself-assessmentofitsownperformancethroughindividual appraisalsandreviewingperformanceattheendofeachmeeting.TheCorporation commissionedanexternalreviewofgovernance,asdetailedabove,duringtheperiod.

Havingundertakenmandatorysafeguardingtrainingthepreviousyear,Governorswere requiredonlytoreadandconfirmtheirunderstandingoftheamendedKeepingChildrenSafe inEducationguidanceandtheGroup’supdatedsafeguardingpoliciesandprocedures. Governorscompletedskillsauditsfromwhichpersonaldevelopmentsuggestionsweremade. OnlineAoCmoduleswereundertakentoaddressthesesuggestions.Governorsalso attendedtrainingeventsspecifictotheirparticulargovernanceresponsibilities.TheChair attendedanumberofAoCeventsin2023/24andcontinuedtoattendmeetingsaspartofthe Chair’snetworktostayuptodatewithkeydevelopmentsinthesector.

RemunerationCommittee

Throughouttheyearending31July2024,theRemunerationCommitteecomprisedfour members.ThegoverningbodyadoptedtheAoC’sSeniorStaffRemunerationCodeinJuly 2019.TheCommittee'sresponsibilitiesaretomakerecommendationstotheBoardonthe specificremunerationandbenefitspackagesoftheAccountingOfficerandotherseniorpost holders.Detailsofremunerationfortheyearended31July2024aresetoutinNote7tothe financialstatements. Page26

Heart of Yorkshire Education Group

For the year ended 31 July 2024

Statement of Corporate Governance and Internal Control (continued)

AuditCommittee

TheAuditCommitteecomprisedbetweenfiveandsixmembers(includingco-optees)during therelevantperiod.TheCommitteeoperatesinaccordancewithwrittentermsofreference approvedbythecorporation.

TheAuditCommitteemeetsonatermlybasisandprovidesaforumforreportingbythe Group’sinternal,regularityandfinancialstatementsauditors,whohaveaccesstothe Committeeforindependentdiscussion,withoutthepresenceofmanagement,where appropriate.TheCommitteealsoreceivesandconsidersreportsfromthemainFEfunding bodiesastheyaffecttheGroup’sbusiness.

TheGroup’sinternalauditorsreviewthesystemsofinternalcontrol,riskmanagement controlsandgovernanceprocessesinaccordancewithanagreedplanofinputandreport theirfindingstomanagementandtheAuditCommittee.

Managementisresponsiblefortheimplementationofagreedauditrecommendationsand internalauditundertakesperiodicfollow-upreviewstoensuresuchrecommendationshave beenimplemented.

TheAuditCommitteealsoadvisestheCorporationontheappointmentofinternal,reporting accountantsandfinancialstatementsauditorsandtheirremunerationforbothauditandnonauditworkaswellasreportingannuallytotheCorporation.TheAuditCommitteemetfour timesintheyearto31July2024.Themembersofthecommitteeandtheirattendance recordsareshownbelow:

Committeemember MeetingsAttended

FayeBanks 1/4

JasonBrook(Co-opted) 40f4

Nigel Brook (Chair) 4of4

JayneKinga1/1

MartynShaw 3of4

Asnotedabove,FayeBankswasremovedfromtheBoardinJuly2024andJayneKingwas movedontotheAuditCommitteetoreplaceher.

Heart of Yorkshire Education Group

For the year ended 31 July 2024

Statement of Corporate Governance and Internal Control (continued)

ScopeofResponsibility

TheCorporationisultimatelyresponsiblefortheGroup’ssystemofinternalcontrolandfor reviewingitseffectiveness.However,suchasystemisdesignedtomanageratherthan eliminatetheriskoffailuretoachievebusinessobjectivesandcanprovideonlyreasonable andnotabsoluteassuranceagainstmaterialmisstatementorloss.

TheCorporationhasdelegatedtheday-to-dayresponsibilitytothePrincipal,asAccounting Officer,formaintainingasoundsystemofinternalcontrolthatsupportstheachievementof theGroup’spolicies,aimsandobjectives,whilstsafeguardingthepublicfundsandassetsfor whichsheispersonallyresponsible,inaccordancewiththeresponsibilitiesassignedtoher intheConditionsofFundingbetweentheHeartofYorkshireEducationGroupandthefunding bodyandtheOfSregistrationconditions. Sheisalsoresponsibleforreportingtothe Corporationanymaterialweaknessesorbreakdownsininternalcontrol.

Thepurposeofthesystemofinternalcontrol

Thesystemofinternalcontrolisbasedonanongoingprocessdesignedtoidentifyand prioritisetheriskstotheachievementofGrouppolicies,aimsandobjectives,toevaluatethe likelihoodofthoserisksbeingrealisedandtheimpactshouldtheyberealised,andtomanage themefficiently,effectivelyandeconomically.Thesystemofinternalcontrolhasbeeninplace intheGroupfortheyearended31July2024anduptothedateofapprovaloftheannual reportandfinancialstatements.

Capacitytohandlerisk

TheCorporationhasreviewedthekeyriskstowhichtheGroupisexposedtogetherwiththe operating,financialandcompliancecontrols,andarrangementsforcompliancewithlegaland regulatorymattersincludingthoserelatingtotheregularityandproprietyoftheuseofpublic fundingthathavebeenimplementedtomitigatethoserisks.TheCorporationisoftheview thatthereisaformalongoingprocessforidentifying,evaluatingandmanagingtheGroup's significantrisksthathasbeeninplacefortheperiodended31July2024anduptothedate ofapprovaloftheannualreportandaccounts.TheAuditCommitteeactsastheRisk CommitteeandthisprocessisregularlyreviewedbytheCorporation.

TheInternalControlandRiskManagementFramework

TheGroupencouragesthetakingofmeasuredriskthatmayprovideopportunitiestomeet oneormoreofitsobjectives.Theinternalcontrolandriskmanagementframeworkis designedto:integrateriskmanagementintothecultureoftheGroup;raiseawarenessofthe Page28

STATEMENTS

For the year ended 31 July 2024

Statement of Corporate Governance and Internal Control (continued)

TheInternalControlandRiskManagementFramework(continued)

needforriskmanagement;encourageapositiveapproachtorisktaking;supportimproved decision-making,innovationandperformance;andmanageriskinaccordancewithbest practice.TheframeworkcontinuestoevolveandenablestheGrouptorespondtoavariety ofstrategic,operational,financial,commercial,regulatoryandreputationalrisks.Itprovides assurancestosuccessivelevelsofmanagementand,ultimately,theBoard. Thekey componentsoftheriskandcontrolframeworkinclude:

e clearlydefinedfinancialregulationsandproceduresincludingprotocolsforcapital investmentandothermajordevelopments;

e astrategicandfinancialplanningandbudgetingcycleinvolvingstaffatalllevelsofthe Groupinthesettingofobjectivesandactionsandtheallocationofresources;

° rigoroustermlyreviewsofbusinessareastoevaluateperformance,assessareasofrisk andopportunityandtakeappropriateaction;

e acomprehensiveanti-briberypolicy,fraudpolicyandresponseplan,‘whistle-blowing’ policyanddisastermanagementandbusinesscontinuityplan,whichhavebeen communicatedtostaffsothattheyareawareoftheproceduresforreportingsignificant riskissuesandcontrolfailingstoappropriatelevelsofmanagement;

e continuingprofessionaldevelopmentandidentificationofpersonalobjectivesand operationaltasksthroughannualappraisal,linkedtotheachievementoftheGroup’s strategicobjectivesandmanagementofkeyrisks;

eaGroup-wideapproachtoevaluatingthequalityofteaching,learningandassessment, andserviceareasincludingplanstoaddressissuesofpoorperformance;

e ahigh-profilehealthandsafetymanagementsystem,ledbytheAccountingOfficer whichactivelypromotesthecommitmenttoanddevelopmentofgoodhealthandsafety;

° ahumanresourcesandorganisationaldevelopmentstrategydesignedtomeetthe needsoftheGroupinachievingitsobjectiveswhilstrespondingtochangesin legislation;

eestatesmanagementbasedonapropertystrategyformulatedtomeettheneedsofthe Groupanditscommunity;

eintegratedmanagementinformationsystemsdesignedtoprovideaccurateandtimely dataandanalysistomanagementtosupportdecisionsandmonitorprogresstowards policies,strategiesandtargets.

TheCorporationensuresthatitsbusinesscalendarandagendasenableriskmanagement andinternalcontroltobeconsideredonaregularbasisduringtheyearsothatthereisafull riskandcontrolassessmentbeforereportingon31Julyeachyear.Thisincludesreportson theeffectivenessofriskmanagementbytheAuditCommitteeandExecutiveTeam. :Page29

FINANCIAL STATEMENTS

For the year ended 31 July 2024

HeartofYorkshire

EducationGroup

Statement of Corporate Governance and Internal Control (continued)

TheInternalControlandRiskManagementFramework(continued)

TheGrouphasanInternalAuditService(IAS)whichoperatesinaccordancewiththe requirementsoftheESFA’sPost-16AuditCodeofPracticeandsubmitsregularreports, whichincludeitsindependentopinionontheadequacyandeffectivenessofthesystemof internalcontrolalongwithrecommendationsforimprovement.Theworkoftheinternalaudit serviceisinformedbytheGroup’sanalysisofrisk,andannualinternalauditplansarebased onthisanalysis.TheinternalauditannualandstrategicplansareapprovedbytheAudit Committee.TheHeadofInternalAudit(HIA)providestheGoverningBodywithanannual reportoninternalauditactivityintheGroup.ThereportincludestheHIA’sindependent opinionontheadequacyandeffectivenessoftheGroup’ssystemofriskmanagement, controlsandgovernanceprocesses.

Risksfacedbythecorporation

ThecorporationidentifiesriskbyapplicationoftheGroupRiskManagementFramework.This allowsriskstobeidentifiedandthelikelihoodandimpactofeachtobeassessed,andset againsttheriskappetitestipulatedbythecorporation.Eachofthekeyrisksisenteredonto ariskregisterwhichisapprovedbythecorporation.Eachidentifiedriskisevaluated accordingtoitslikelihoodandpotentialimpactandmanagedviamitigatingactionsidentified andcarriedoutbytherelevantriskmanagers.Duringtherelevantperiod,theAudit Committeereviewedtheriskregisterateachofitsfourmeetingswithaviewtosatisfying itselfthatreachriskremainedwithinitstolerancerange.

Statementfromtheauditcommittee

TheAuditCommitteehasadvisedtheBoardofGovernorsthattheCorporationhasan effectiveframeworkforgovernanceandriskmanagementinplace.TheAuditCommittee believestheCorporationhaseffectiveinternalcontrolsinplace.

ThespecificareasofworkundertakenbytheIASin2023/24anduptothedateofthe approvalofthefinancialstatements(whichwerereviewedbytheAuditCommittee)include:

eHealthandSafetyinrespectofwhichsubstantialassurancewasgivenand1medium priorityrecommendationwasmade.

eILRSubmissionsinrespectofwhichsubstantialassurancewasgivenand1low priorityrecommendationwasmade.

eKeyFinancialControlsinrespectofwhichsubstantialassurancewasgivenand1 mediumpriorityrecommendationwasmade.

e16-19workplacementsinrespectofwhichreasonableassurancewasgivenand1 mediumand1highpriorityrecommendationsweremade. Thehighpriority recommendationwasthatbetter,moresystematicusebemadeofinformation systemsanddatatoplan,settargetsandmonitorthecompletionofworkplacement hours.Inresponsetothis,clearlinesofresponsibilityhavebeensetoutforplanning,

Heart of Yorkshire Education Group

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024 __

Statement of Corporate Governance and Internal Control (continued)

Statementfromtheauditcommittee(continued) settingcriteriaandreportingoftheachievementofthetargetedhours. Intheirreviewoftheimplementationofrecommendationsmadeinthepreviousyear, substantialassurancewasgivenandnorecommendationsareoutstanding.

TheESFAcontinueditsfundingassurancereviewduringtheperiod,thistimeforthe academicyear2020/21.Fundinganddataerrorswereidentifiedwhichalsoincludederrors relatingtofundingyearspriorto2020/21.Asaresult,theESFAinstigatedrecoveryaction fortheamountincorrectlyclaimed.Throughout,theCommitteereceivedupdatesonthe reviewandtheactionstakentoguardagainsterroneousclaimsbeingmadeinthefuture.

ReviewofEffectiveness

AsAccountingOfficer,thePrincipalhasresponsibilityforreviewingtheeffectivenessofthe systemofinternalcontrol.

ThePrincipal'sreviewoftheeffectivenessofthesystemofinternalcontrolisinformedby:

e theworkoftheinternalauditors;

e theworkoftheexecutivemanagerswithintheGroupwhohaveresponsibilityforthe developmentandmaintenanceoftheinternalcontrolframework;

e commentsmadebytheGroup’sfinancialstatementsauditors,theregularityauditors, andtheappointedfundingauditorsintheirmanagementlettersandotherreports.

TheAccountingOfficerhasbeenadvisedontheimplicationsoftheresultofherreviewofthe effectivenessofthesystemofinternalcontrolbytheAuditCommittee,whichoverseesthe workoftheinternalauditorandothersourcesofassurance,andaplantoaddress weaknessesandensurecontinuousimprovementofthesystemisinplace.

TheExecutiveTeamreceivesreportssettingoutkeyperformanceandriskindicatorsand considerspossiblecontrolissuesbroughttotheirattentionbyearlywarningmechanisms, whichareembeddedwithinthedepartmentsandreinforcedbyriskawarenesstraining.

ExecutiveTeamandtheAuditCommitteealsoreceiveregularreportsfrominternalauditand othersourcesofassurance,whichincluderecommendationsforimprovement.TheAudit Committee'sroleinthisareaisconfinedtoahigh-levelreviewofthearrangementsforinternal control.TheCorporation'sagendaincludesaregularitemforconsiderationofriskandcontrol andreceivesreportsfromtheExecutiveTeamandtheAuditCommittee.

HeartofYorkshire FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

Statement of Corporate Governance and Internal Control (continued)

ReviewofEffectiveness(continued)

Theemphasisisonobtainingtherelevantdegreeofassuranceandnotmerelyreportingby exception.AtameetinginDecember2024,theCorporationcarriedouttheannual assessmentfortheyearended31July2024byconsideringdocumentationfromthe ExecutiveTeamandinternalauditandtakingaccountofeventssince31July2024.

BasedontheadviceoftheAuditCommitteeandtheAccountingOfficer,theCorporationis oftheopinionthattheGrouphasanadequateandeffectiveframeworkforgovernance,risk managementandcontrol,andhasfulfilleditsstatutoryresponsibilityfor“theeffectiveand efficientuseofresources,thesolvencyoftheinstitutionandthebodyandthesafeguarding oftheirassets”.

ApprovedbyorderofthemembersoftheCorporationon11December2024andsignedon itsbehalfby:

MeL nikgt

Andrew McConnell OBE

am Wright ChairofCorporation AccountingOfficer

FINANCIAL STATEMENTS

For the year ended 31July 2024

STATEMENT ON THE GROUP’S REGULARITY, PROPRIETY AND COMPLIANCE

Asaccountingofficerconfirmthatthecorporationhashaddueregardtotheframeworkof authoritiesgoverningregularity,priorityandcompliance,andtherequirementsofthe college’saccountabilityagreement,fundingagreementsandcontractswithESFAandDfe, andhasconsidereditsresponsibilitytonotifyESFAofmaterialirregularity,improprietyand non-compliancewiththoseauthoritiesandtermsandconditionsoffunding.

confirmonbehalfofthecorporationthatafterdueenquiry,andtothebestofmyknowledge, amabletoidentifyanymaterialirregularorimproperuseoffundsbythecorporation,or materialnon-compliancewiththeframeworkofauthoritiesandthetermsandconditionsof fundingunderthecollege’saccountabilityagreement,fundingagreementsandcontractswith ESFAandDfe,oranyotherpublicfunder.Thisincludestheelementsoutlinedinthe“Dear accountingofficer”letterof29November2022andESFA’sbitesizeguides.

confirmthatthefollowinginstanceofmaterialirregularity,impropriety,fundingnoncompliance,ornon-compliancewiththeframeworkofauthoritieshasbeendiscoveredand hasbeennotifiedtotheESFA.Ifanyfurtherinstancesareidentifiedafterthedateofthis statement,thesewillbenotifiedtotheESFA:

Mattersarising

Duringthefinancialyearended31July2024theCollegemadeanon-contractualtermination paymenttoanemployeeinexcessofthedelegatedauthoritygiventotheCollegeunderthe ESFA’sbitesizeguide“collegerequirementsforspecialpayments,includingseverance, compensationandex-gratiapayments”.Theamountofthenon-contractualspecialpayment thatrequiredpriorESFAconsent,whichwasnotsought,was£14,595,whichwasgreater thantheequivalentof3monthsgrosssalary.

SamWright “a AccountingOfficer

11December2024

Heart of Yorkshire Education Group

HeartofYorkshire FINANCIAL STATEMENTS EducationGroup

For the year ended 31 July 2024

Statement on the Group’s Regularity, Propriety and Compliance (continued)

Statementofthechairofgovernors

OnbehalfoftheCorporation,|confirmthattheaccountingofficerhasdiscussedtheir statementofregularity,proprietyandcompliancewiththeboardandthatamcontentthatit ismateriallyaccurate.

ALAA

AndrewMcConnellOBE

ChairofGovernors

11December2024

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

STATEMENT OF RESPONSIBILITIES OF THE MEMBERS OF THE CORPORATION

ThemembersoftheCorporationarerequiredtopresentauditedfinancialstatementsforeach financialyear.

Withinthetermsandconditionsofthecorporation’saccountabilityagreement,funding agreementsandcontractswithESFA,OfSandWYCAthecorporationisrequiredtoprepare financialstatementswhichgiveatrueandfairviewofthefinancialperformanceandposition ofthecorporationfortherelevantperiod.Corporationsmustalsoprepareastrategicreport whichincludesanoperatingandfinancialreviewfortheyear.Thebasesforthepreparation ofthefinancialstatementsandstrategicreportaretheStatementofRecommendedPractice —AccountingforFurtherandHigherEducation,ESFA’sCollegeAccountsDirection, AccountsDirectionissuedbytheOfficeforStudentsandtheUK’sGenerallyAccepted AccountingPractice.Inpreparingthefinancialstatements,thecorporationisrequiredto:

¢selectsuitableaccountingpoliciesandapplythemconsistently

*makejudgementsandestimatesthatarereasonableandprudent

*statewhetherapplicableUKaccountingstandardshavebeenfollowed,subjecttoany materialdeparturesdisclosedandexplainedinthefinancialstatements

*assesswhetherthecorporationisagoingconcern,notingthekeysupportingassumptions, qualificationsormitigatingactions,asappropriate(whichmustbeconsistentwithother disclosuresintheaccountsandauditor'sreport)

*preparefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetoassume thatthecorporationwillcontinueinoperation.

TheCorporationisalsorequiredtoprepareastrategicreport,inaccordancewithparagraphs 3.23to3.27oftheFEandHESORP,thatdescribeswhatitistryingtodoandhowitisgoing aboutit,includinginformationaboutthelegalandadministrativestatusofthecorporation.

TheCorporationisresponsibleforkeepingproperaccountingrecordswhichdisclose,with reasonableaccuracyatanytime,thefinancialpositionoftheCorporationandwhichenable ittoensurethatthefinancialstatementsarepreparedinaccordancewithrelevantlegislation includingtheFurtherandHigherEducationAct1992andCharitiesAct2011,andrelevant accountingstandards.Itisresponsiblefortakingstepsthatarereasonablyopentoitto safeguarditsassetsandtopreventanddetectfraudandotherirregularities.

TheCorporationisresponsibleforthemaintenanceandintegrityofitswebsite(s);thework carriedoutbyauditorsdoesnotinvolveconsiderationofthesemattersand,accordingly, auditorsacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancial

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

Statement of the Responsibilities of the Members of the Corporation (continued)

statementssincetheywereinitiallypresentedonthewebsite.LegislationintheUnited Kingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfrom legislationinotherjurisdictions.

MembersoftheCorporationareresponsibleforensuringthatexpenditureandincomeare appliedforthepurposesintendedandthatthefinancialtransactionsconformtothe authoritiesthatgovernthem.Inaddition,theyareresponsibleforensuringthatfundsfrom ESFA, and any other public funds, are used only in accordance with ESFA’s accountability agreement,grantfundingagreementsandcontractsandanyotherconditions,thatmaybe prescribedfromtimetotimebyESFA,oranyotherpublicfunder,includingthatany transactionsenteredintobythecorporationarewithinthedelegatedauthoritiessetoutinthe “Dearaccountingofficer”letterof29November2022andESFA’sbitesizeguides.Members ofthecorporationmustensurethatthereareappropriatefinancialandmanagementcontrols inplacetosafeguardpublicandotherfundsandensuretheyareusedproperly.Inaddition, membersofthecorporationareresponsibleforsecuringeconomic,efficientandeffective managementofthecorporation’sresourcesandexpendituresothatthebenefitsthatshould bederivedfromtheapplicationofpublicfundsfromESFAandotherpublicbodiesarenot putatrisk.

Approvedbyorderofthemembersofthecorporationon11December2024andsignedon itsbehalfby:

AMLMA

AndrewMcConnellOBE ChairofCorporation

For theyear ended 31 July 2024

HeartofYorkshire

Education Group

INDEPENDENTAUDITOR’SREPORTTOTHECORPORATIONOFTHE HEARTOFYORKSHIREEDUCATIONGROUP

Opinion

WehaveauditedthefinancialstatementsoftheHeartofYorkshireEducationGroup(the “College”)anditssubsidiary(the“Group”)fortheyearended31July2024whichcomprise theconsolidatedandCollegestatementsofcomprehensiveincome,theconsolidatedand Collegebalancesheets,theconsolidatedandCollegestatementsofchangesinreserves, theconsolidatedstatementofcashflowsandnotestothefinancialstatements,including significantaccountingpolicies.Thefinancialreportingframeworkthathasbeenappliedin theirpreparationisUnitedKingdomAccountingStandards,includingFRS102“TheFinancial ReportingStandardapplicableintheUKandRepublicofIreland”(UnitedKingdomGenerally AcceptedAccountingPractice)andtheAccountsDirectionissuedbytheEducationandSkills FundingAgency.

Inouropinionthefinancialstatements:

egiveatrueandfairviewofthestateoftheGroup’sandoftheCollege’saffairsasat 31July2024andoftheGroup’sandtheCollege’ssurplusofincomeoverexpenditure fortheyearthenended;

ehavebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAccepted AccountingPractice;and ehavebeenpreparedinaccordancewiththeAccountsDirectionissuedbythe EducationandSkillsFundingAgency.

Basisforopinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs (UK))andapplicablelaw.Ourresponsibilitiesunderthosestandardsarefurtherdescribedin theAuditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport.We areindependentoftheGroupandCollegeinaccordancewiththeethicalrequirementsthat arerelevanttoourauditofthefinancialstatementsintheUK,includingtheFRC’sEthical Standardandwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththese requirements.Webelievethattheauditevidencewehaveobtainedissufficientand appropriatetoprovideabasisforouropinion.

Conclusionsrelatingtogoingconcern

Inauditingthefinancialstatements,wehaveconcludedthatthegovernors’useofthegoing concernbasisofaccountinginthepreparationofthefinancialstatementsisappropriate.

Basedontheworkwehaveperformed,wehavenotidentifiedanymaterialuncertainties relatingtoeventsorconditionsthat,individuallyorcollectively,maycastsignificantdoubton theGroup’sortheCollege’sabilitytocontinueasagoingconcernforaperiodofatleast twelvemonthsfromwhenthefinancialstatementsareauthorisedforissue.

Ourresponsibilitiesandtheresponsibilitiesofthegovernorswithrespecttogoingconcern aredescribedintherelevantsectionsofthisreport.

Heart of Yorkshire Education Group

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

Independent Auditor’s Report to the Corporation of the Heart of Yorkshire Education Group (continued)

Otherinformation

TheotherinformationcomprisestheinformationincludedintheReportandFinancial Statementsotherthanthefinancialstatementsandourauditor’sreportthereon.The governorsareresponsiblefortheotherinformationcontainedwithintheReportandFinancial Statements.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformation andwedonotexpressanyformofassuranceconclusionthereon.

Ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheother informationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtained inthecourseoftheauditorotherwiseappearstobemateriallymisstated.Ifweidentifysuch materialinconsistenciesorapparentmaterialmisstatements,wearerequiredtodetermine whetherthisgivesrisetoamaterialmisstatementinthefinancialstatementsthemselves.If, basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementof thisotherinformation,wearerequiredtoreportthatfact.

Wehavenothingtoreportinthisregard.

OpiniononothermattersprescribedbytheOfficeforStudents’AccountsDirection Inouropinion,inallmaterialrespects:

efundsfromwhateversourceadministeredbytheCollegeforspecificpurposeshave beenproperlyappliedtothosepurposesandmanagedinaccordancewithrelevant legislation;

e funds provided by the Office for Students, UK Research and Innovation (including ResearchEngland),theEducationandSkillsFundingAgencyandDepartmentfor Educationhavebeenappliedinaccordancewiththerelevanttermsandconditions; and

etherequirementsoftheOfficeforStudents’accountsdirectionfortherelevantyear’s financialstatementshavebeenmet.

Mattersonwhichwearerequiredtoreportbyexception

WehavenothingtoreportinrespectofthefollowingmatterswherethePost-16AuditCode ofPracticeissuedbytheEducationandSkillsFundingAgencyrequiresustoreporttoyouif, inouropinion:

eadequateaccountingrecordshavenotbeenkept; ethefinancialstatementsarenotinagreementwiththeaccountingrecords;or ewehavenotreceivedalltheinformationandexplanationsrequiredforouraudit.

Heart of Yorkshire Education Group

HeartofYorkshire

FINANCIAL STATEMENTS Education Group

For the year ended 31 July 2024

Independent Auditor’s Report to the Corporation of the Heart of Yorkshire Education Group (continued)

Mattersonwhichwearerequiredtoreportbyexception(continued)

WehavenothingtoreportinrespectofthefollowingmatterswheretheOfficeforStudents’ accountsdirectionrequiresustoreporttoyouif:

etheCollege’sgrantandfeeincome,asdisclosedinthenote3tothefinancial statements,hasbeenmateriallymisstated.

etheCollege’sexpenditureonaccessandparticipationactivitiesforthefinancialyear hasbeenmateriallymisstated.

ResponsibilitiesoftheCorporationoftheHeartofYorkshireEducationGroup

AsexplainedmorefullyintheStatementoftheCorporation’sResponsibilitiessetouton pages35and36,theCorporationisresponsibleforthepreparationoffinancialstatements andforbeingsatisfiedthattheygiveatrueandfairview,andforsuchinternalcontrolasthe Corporationdetermineisnecessarytoenablethepreparationoffinancialstatementsthatare freefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,theCorporationisresponsibleforassessingthe Group’sandtheCollege’sabilitytocontinueasagoingconcern,disclosing,asapplicable, mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthe CorporationeitherintendtoliquidatetheGrouportheCollegeortoceaseoperations,orhave norealisticalternativebuttodoso.

Auditor’sresponsibilitiesfortheauditofthefinancialstatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsas awholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissuean auditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance butisnotaguaranteethatanauditconductedinaccordancewithISAs(UK)willalwaysdetect amaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandare consideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedto influencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

Theextenttowhichtheauditwasconsideredcapableofdetectingirregularities, includingfraud

Irregularitiesareinstancesofnon-compliancewithlawsandregulations.Theobjectivesof ourauditaretoobtainsufficientappropriateauditevidenceregardingcompliancewithlaws andregulationsthathaveadirecteffectonthedeterminationofmaterialamountsand disclosuresinthefinancialstatements,toperformauditprocedurestohelpidentifyinstances ofnon-compliancewithotherlawsandregulationsthatmayhaveamaterialeffectonthe

Heart of Yorkshire Education Group

For the year ended 31 July 2024

Heart of Yorkshire

EducationGroup

Independent Auditor’s Report to the Corporation of the Heart of Yorkshire Education Group (continued)

Theextenttowhichtheauditwasconsideredcapableofdetectingirregularities, includingfraud(continued) financialstatements,andtorespondappropriatelytoidentifiedorsuspectednon-compliance withlawsandregulationsidentifiedduringtheaudit.

Inrelationtofraud,theobjectivesofourauditaretoidentifyandassesstheriskofmaterial misstatementofthefinancialstatementsduetofraud,toobtainsufficientappropriateaudit evidenceregardingtheassessedrisksofmaterialmisstatementduetofraudthrough designingandimplementingappropriateresponsesandtorespondappropriatelytofraudor suspectedfraudidentifiedduringtheaudit.

However,itistheprimaryresponsibilityofmanagement,withtheoversightofthosecharged withgovernance,toensurethattheentity'soperationsareconductedinaccordancewiththe provisionsoflawsandregulationsandforthepreventionanddetectionoffraud.

Inidentifyingandassessingrisksofmaterialmisstatementinrespectofirregularities, includingfraud,theGroupauditengagementteam:

eobtainedanunderstandingofthenatureofthesector,includingthelegaland regulatoryframeworksthattheGroupandCollegeoperatesinandhowtheGroup andCollegearecomplyingwiththelegalandregulatoryframeworks; einquiredofmanagement,andthosechargedwithgovernance,abouttheirown identificationandassessmentoftherisksofirregularities,includinganyknown actual,suspectedorallegedinstancesoffraud; ediscussedmattersaboutnon-compliancewithlawsandregulationsandhowfraud mightoccurincludingassessmentofhowandwherethefinancialstatementsmaybe susceptibletofraud.

Asaresultoftheseproceduresweconsiderthemostsignificantlawsandregulationsthat haveadirectimpactonthefinancialstatementsareFRS102,FurtherandHigherEducation SORP,theCollegeAccountsDirectionpublishedbytheEducationandSkillsFundingAgency andRegulatoryAdvice9:AccountsDirectionpublishedbytheOfficeforStudents’.We performedauditprocedurestodetectnon-complianceswhichmayhaveamaterialimpacton thefinancialstatementswhichincludedreviewingfinancialstatementdisclosures.

Themostsignificantlawsandregulationsthathaveanindirectimpactonthefinancial statementsarethosewhichareinrelationtotheEducationInspectionFrameworkunderthe EducationandInspectionsAct2006,KeepingChildrenSafeinEducationunderthe EducationAct2002andtheUKGeneralDataProtectionRegulation(UKGDPR)andthe DataProtectionAct2018.Weperformedauditprocedurestoinquireofmanagementwhether theGroupisincompliancewiththeselawsandregulationsandinspectedcorrespondence withlicensingorregulatoryauthoritiesinordertodrawaconclusion. Page40

Heart of Yorkshire Education Group

STATEMENTS Education Group

Heart of Yorkshire

Fortheyearended31July2024

Independent Auditor’s Report to the Corporation of the Heart of Yorkshire Education Group (continued)

Theextenttowhichtheauditwasconsideredcapableofdetectingirregularities, includingfraud(continued)

TheGroupauditengagementteamidentifiedtheriskofmanagementoverrideofcontrols andrevenuerecognitionastheareaswherethefinancialstatementsweremostsusceptible tomaterialmisstatementduetofraud.Auditproceduresperformedincludedbutwerenot limitedtotestingmanualjournalentriesandotheradjustmentsandevaluatingthebusiness rationaleinrelationtosignificant,unusualtransactionsandtransactionsenteredintooutside thenormalcourseofbusinessandchallengingjudgmentsandestimatesandperformingtests ofdetailonasampleofrevenuetransactionstogetherwithperformingareviewofthe appropriateapplicationoftheGroupandCollege’srevenuerecognitionpolicy.

Afurtherdescriptionofourresponsibilitiesfortheauditofthefinancialstatementsislocated ontheFinancialReportingCouncil’swebsiteathttp://www.frc.org.uk/auditorsresponsibilities. Thisdescriptionformspartofourauditor'sreport.

Useofourreport

ThisreportismadesolelytotheCorporation,asabody,inaccordancewiththeFunding AgreementpublishedbytheEducationandSkillsFundingAgencyandourengagementletter dated23December2022.Ourauditworkhasbeenundertakensothatwemightstatetothe Corporation,asabody,thosemattersweareengagedtostatetotheminanauditor'sreport andfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassume responsibilitytoanyoneotherthantheCorporation,asabody,forourauditwork,forthis report,orfortheopinionswehaveformed.

Fortheyearended31July2024

CONSOLIDATED AND COLLEGE STATEMENTS OF COMPREHENSIVE INCOME

Alloftheaboveactivitiesrelatetocontinuingoperations.Thenotesonpages46to75form partofthesefinancialstatements.

The2022/23comparativefiguresareforcollegetransactionsandconsolidatedgroup transactions,whichincludetheSupportingFuturesSelbyLtdtransactions.SFSLtdwas dissolvedinJanuary2022andthereforethe2023/24figuresareforcollegetransactions.

For the year ended 31 July 2024 _ rectors

CONSOLIDATED STATEMENT OF CASH FLOWS

the year ended 31 July 2024

Thefinancialstatementsonpages42to75wereapprovedandauthorisedforissuebythe Corporationon11Dec2024andweresignedonitsbehalfon,thatdateby:

AndrewMcConnellOBE ChairofCorporation

For the year ended 31 July 2024 Heeaeletenee

CONSOLIDATED AND COLLEGE STATEMENTS OF CHANGES IN RESERVES (GROUP AND COLLEGE)

Thenotesonpages46to75formpartofthesefinancialstatements.

9,41553,194

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

NotestotheFinancialStatementsforthePeriod1August2023to31July2024

1AccountingPolicies

Statementofaccountingpoliciesandestimationtechniques

Thefollowingaccountingpolicieshavebeenappliedconsistentlyindealingwithitems whichareconsideredmaterialinrelationtothefinancialstatements.

BasisofPreparation

ThesefinancialstatementshavebeenpreparedinaccordancewiththeStatementof RecommendedPractice:AccountingforFurtherandHigherEducation2019(the2019F& HESORP),theCollegeAccountsDirectionfor2023to2024andRegulatoryAdvice9; AccountsDirectionissuedbyOfSandinaccordancewithFinancialReportingStandard102 —“TheFinancialReportingStandardapplicableintheUnitedKingdomandRepublicof Ireland”(FRS102).TheGroupisapublicbenefitentityandhasthereforeappliedtherelevant publicbenefitrequirementsofFRS102.

ThepreparationoffinancialstatementsincompliancewithFRS102requirestheuseof certaincriticalaccountingestimates.Italsorequiresmanagementtoexercisejudgementin applyingtheGroup'saccountingpolicies.

BasisofAccounting

Thefinancialstatementsarepreparedinaccordancewiththehistoricalcostconvention.

Reduceddisclosures

InaccordancewiththeF&HESORP,theGroupinitsseparatefinancialstatements,which arepresentedalongsidetheconsolidatedfinancialstatements,hastakenadvantageofthe disclosureexemptionsavailabletoitinrespectofpresentationofacashflowstatementand financialinstruments.

BasisofConsolidation

Theconsolidatedfinancialstatementsincludethecollegeanditssubsidiaries,Supporting FuturesSelbyLtd(onlytradedin2022/23)andHeartofYorkshireEducationLtdcontrolled bythegroup.SFSLtdwasdissolvedinJanuary2022andisthereforeincludedincomparative figuresonly.Controlisachievedwherethegrouphasthepowertogovernthefinancialand operatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Underthepurchase methodofaccounting,theresultsofsubsidiaryandassociatedundertakingsacquiredor disposedofduringtheyearareincludedintheconsolidatedincomeandexpenditureaccount fromoruptothedateonwhichcontroloftheundertakingpasses.Intra-groupsalesand profitsareeliminatedfullyonconsolidation.

InaccordancewithFRS102,theactivitiesofthestudentunionhavenotbeenconsolidated becausetheGroupdoesnotcontrolthoseactivities.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 Education Group

Heart of Yorkshire

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued) GoingConcern

TheactivitiesoftheGroup,togetherwiththefactorslikelytoaffectitsfuturedevelopment andperformancearesetoutintheReportoftheGoverningBody.Thefinancialpositionof theGroup,itscashflow,liquidityandborrowingsarepresentedintheFinancialStatements andaccompanyingnotes.

TheGrouphasalonghistoryofgeneratingpositivecashflowsfromoperationsand controllingcoststhrougharobustprocessofbusinessreview.TheGrouphasproduceda detailedcashflowforecasttoJuly2026withsensitivityanalysis,andthisissubjecttoclose frequentmonitoring.TheGrouphasnobankloansoroverdraftfacilities.Whilstprovision hasbeenmadefortherecoveryofESFAfunding,followingauditsofSelbyCollege’spremergerILR,theGroupremainsfinanciallyrobust.

TheGrouphasareasonableexpectationthatithasadequateresourcestocontinuein operationalexistenceortheforeseeablefuture(toatleast31July2026),andforthisreason willcontinuetoadoptthegoingconcernbasisinthepreparationofitsFinancialStatements.

RecognitionofIncome

Revenuegrantfunding

Governmentrevenuegrantsincludefundingbodyrecurrentgrantsandothergrantsandare accountedforundertheaccrualmodelaspermittedbyFRS102.Fundingbodyrecurrent grantsaremeasuredinlinewithbestestimatesfortheperiodofwhatisreceivableand dependontheparticularincomestreaminvolved.Thefinalgrantincomeisnormally determinedwiththeconclusionoftheyearendreconciliationprocesswiththefundingbody followingtheyearend,andtheresultsofanyfundingaudits.16-18fundingisnotsubjectto reconciliationandisthereforenotsubjecttocontractadjustments.AdultEducationBudget (‘AEB’)grantfundingincomerecognisedisabestestimateoftheamountreceivablein accordancewiththeannualmainfundingguidancepublishedbytheESFAandeither determinedaspartofthereconciliationprocessorbyseparateagreementbetweenthe GroupandtheESFAatthereportingperiodenddate.Anysubsequentagreementto determinationoftheAEBfundingafterthereportingenddatewhichisnotprovidedforinthe annualmainfundingguidanceisnotreflectedintheincomerecognised.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 Eevcoton Gree

Heart of Yorkshire

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

For2023/24theESFAhasconfirmedthattheywillmeetclaimsofupto110%ofcontract valueofAEB.ThisisnotreflectedintheAEBcontractwithWestYorkshireCombined Authoritywhereclaimsarelimitedto100%ofcontractvalue.

TherecurrentgrantfromOFSrepresentsthefundingallocationsattributabletothecurrent financialyearandiscrediteddirecttotheStatementofComprehensiveIncome.

Wherepartofagovernmentgrantisdeferred,thedeferredelementisrecognisedasdeferred incomewithincreditorsandallocatedbetweencreditorsduewithinoneyearandcreditors dueaftermorethanoneyearasappropriate.

Grants(includingresearchgrants)fromnon-governmentsourcesarerecognisedinincome whentheGroupisentitledtotheincomeandperformancerelatedconditionshavebeenmet. Incomereceivedinadvanceofperformancerelatedconditionsbeingmetisrecognisedas deferredincomewithincreditorsonthebalancesheetandreleasedtoincomeasthe conditionsaremet.

Capitalgrantfunding

Governmentcapitalgrantsarecapitalised,heldasdeferredincomeandrecognisedinincome overtheexpectedusefullifeoftheasset,undertheaccrualmodelaspermittedbyFRS102. Other,non-governmental,capitalgrantsarerecognisedinincomewhentheGroupisentitled tothefundssubjecttoanyperformancerelatedconditionsbeingmet.Incomereceivedin advanceofperformancerelatedconditionsbeingmetisrecognisedasdeferredincomewithin creditorsontheBalanceSheetandreleasedtoincomeasconditionsaremet.

Feeincome

Incomefromtuitionfeesisstatedgrossofanyexpenditurewhichisnotadiscountandis recognisedintheperiodforwhichitisreceived.

Investmentincome

Allincomefromshort-termdepositsiscreditedtotheStatementofComprehensiveIncome intheperiodinwhichitisearnedonareceivablebasis.

AgencyArrangements

TheGroupactsasanagentinthecollectionandpaymentofcertaindiscretionarysupport fundsandanyotherarrangements.Relatedpaymentsreceivedfromthefundingbodiesand subsequentdisbursementstostudentsareexcludedfromtheincomeandexpenditureofthe GroupwheretheGroupisexposedtominimalriskorenjoysminimaleconomicbenefitrelated tothetransaction.

Heart of Yorkshire Education Group FINANCIALSTATEMENTS

For the year ended 31 July 2024 Hewett

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

Accountingforpost-employmentbenefits

Post-employmentbenefitstoemployeesoftheGroupareprincipallyprovidedbythe Teachers’PensionScheme(TPS)andtheLocalGovernmentPensionScheme(LGPS). Thesearedefinedbenefitplans,whichareexternallyfundedandcontractedoutoftheState SecondPension.

Teachers’PensionScheme(TPS)

TheTPSisanunfundedscheme.ContributionstotheTPSarecalculatedsoastospread thecostofpensionsoveremployees’workingliveswiththeGroupinsuchawaythatthe pensioncostisasubstantiallylevelpercentageofcurrentandfuturepensionablepayroll.The contributionsaredeterminedbyqualifiedactuariesonthebasisofvaluationsusinga prospectivebenefitmethod.

TheTPSisamulti-employerschemeandthereisinsufficientinformationavailabletouse definedbenefitaccounting.TheTPSisthereforetreatedasadefinedcontributionplanand thecontributionsrecognisedasanexpenseintheincomestatementintheperiodsduring whichservicesarerenderedbyemployees.

WestYorkshireLocalGovernmentPensionScheme(LGPS)

TheLGPSisafundedscheme.TheassetsoftheLGPSaremeasuredusingclosingfair values.LGPSliabilitiesaremeasuredusingtheprojectedunitcreditmethodanddiscounted atthecurrentrateofreturnonahigh-qualitycorporatebondofequivalenttermandcurrency totheliabilities.Theactuarialvaluationsareobtainedatleasttrienniallyandareupdatedat eachbalancesheetdate.Theamountschargedtooperatingsurplusarethecurrentservice costsandthecostsofschemeintroductions,benefitchanges,settlementsandcurtailments. Theyareincludedaspartofstaffcostsasincurred.

Netinterestonthenetdefinedbenefitliability/assetisalsorecognisedintheStatementof ComprehensiveIncomeandcomprisestheinterestcostonthedefinedbenefitobligationand interestincomeontheschemeassets,calculatedbymultiplyingthefairvalueofthescheme assetsatthebeginningoftheperiodbytherateusedtodiscountthebenefitobligations.The differencebetweentheinterestincomeontheschemeassetsandtheactualreturnonthe schemeassetsisrecognisedininterestandotherfinancecosts.

Re-measurementcomprisingactuarialgainsandlosses,theeffectoftheassetceilingand thereturnonschemeassets(excludingamountsincludeinnetinterestonthenetdefined benefitliability)arerecognisedimmediatelyinothercomprehensiveincome.

TheLGPSassetsaremanagedbytheschemetrusteesatschemelevel,andthe determination/allocationofassetstoeachindividualemployerintheschemeismanagedby theschemeactuary.Theassetsareallocatedtoeachemployerforaccountingpurposes basedonthevaluationoftheassetsatthelatesttriennialvaluationasadjustedfor Page 49

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

subsequentcontributionsreceivedfromtheemployer,assetreturnsandbenefitpayments made(eitheronacashbasisoractuarialbasis).

Theretirementbenefitobligationrecognisedrepresentsthedeficitorsurplusinthedefined benefitplans.Anysurplusresultingfromthiscalculationislimitedtothepresentvalueofany economicbenefitsavailableintheformofrefundsfromtheplansorreductionsinfuture contributionstotheplans.

ShorttermEmploymentbenefits

Shorttermemploymentbenefitssuchassalariesandcompensatedabsences(holidaypay) arerecognisedasanexpenseintheyearinwhichtheemployeesrenderservicetothe Group.AnyunusedbenefitsareaccruedandmeasuredastheadditionalamounttheGroup expectstopayasaresultoftheunusedentitlement.

EnhancedPensions

Theactualcostofanyenhancedongoingpensiontoaformermemberofstaffispaidbythe Groupannually.Anestimateoftheexpectedfuturecostofanyenhancementtotheongoing pensionofaformermemberofstaffischargedinfulltotheGroup’sStatementof ComprehensiveIncomeintheyearthatthememberofstaffretires.Insubsequentyearsa chargeismadetoprovisionsinthebalancesheet.

TangibleFixedAssets

Tangiblefixedassetsarestatedatcostlessaccumulateddepreciationandaccumulated impairmentlosses.Certainitemsoffixedassetsthathadbeenrevaluedtofairvalueonor priortothedateoftransitiontotheF&HESORP,aremeasuredonthebasisofdeemed cost,beingtherevaluedamountatthedateofthatrevaluation.

Wherepartsofafixedassethavedifferentusefullives,theyareaccountedforasseparate itemsoffixedassets.

Landandbuildings

Freeholdlandisnotdepreciatedasitisconsideredtohaveaninfiniteusefullife.

Freeholdandlongleaseholdbuildingsaredepreciatedovertheirexpectedusefuleconomic lifetotheGroupofbetween5and50years.TheGrouphasapolicyofdepreciatingmajor adaptationstobuildingsovertheperiodof15years.

Areviewforimpairmentofafixedassetiscarriedoutifeventsorchangesincircumstances indicatethatthecarryingamountofanyfixedassetmaynotberecoverable.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

OnadoptionofFRS102,theGroupfollowedthetransitionalprovisiontoretainthebookvalue oflandandbuildings,whichwererevaluedin2014,asdeemedcostbutnottoadoptapolicy ofrevaluationofthesepropertiesinthefuture.

Assetsunderconstruction

Assetsunderconstructionareaccountedforatcost,basedonthevalueofarchitects’ certificatesandotherdirectcosts,incurredto31July.Theyarenotdepreciateduntiltheyare broughtintouse.

Subsequentexpenditureonexistingfixedassets

Wheresignificantexpenditureisincurredontangiblefixedassetsafterinitialpurchaseitis chargedtoincomeintheperioditisincurred,unlessitincreasesthefuturebenefitstothe Group,inwhichcaseitiscapitalisedanddepreciatedontherelevantbasis.

Equipment

Equipmentcostinglessthan£1,000perindividualitemisrecognisedasexpenditureinthe periodofacquisition.Allotherequipmentiscapitalisedatcost.

Capitalisedequipmentisdepreciatedonastraight-linebasisoveritsremaininguseful economiclifeasfollows: etechnicalequipment 3-5years emotorvehicles 5-10years ecomputerequipment 5years elaptops 3years efurniture,fixturesandfittings 5-10years

LeasedAssets

Costsinrespectofoperatingleasesarechargedonastraight-linebasisovertheleaseterm totheStatementofComprehensiveIncome.

Cashandcashequivalents

Cashincludescashinhand,depositsrepayableondemandandoverdrafts.Depositsare repayableondemandiftheyareinpracticeavailablewithin24hourswithoutpenalty.

Cashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibleto knownamountsofcashwithinsignificantriskofchangeinvalue.Aninvestmentqualifiesas acashequivalentwhenithasmaturityof3monthsorlessfromthedateofacquisition.

Financialliabilitiesandequity

Financialliabilitiesandequityareclassifiedaccordingtothesubstanceofthefinancial instrument'scontractualobligations,ratherthanthefinancialinstrument'slegalform.

Heart of Yorkshire Education Group FINANCIALSTATEMENTS

For the year ended 31 July 2024

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

Allloans,investmentsandshort-termdepositsheldbythegroupareclassifiedasbasic financialinstrumentsinaccordancewithFRS102.Theseinstrumentsareinitiallyrecorded atthetransactionpricelessanytransactioncosts(historicalcost).FRS102requiresthat basicfinancialinstrumentsaresubsequentlymeasuredatamortisedcost,howevertheGroup hascalculatedthatthedifferencebetweenthehistoricalcostandamortisedcostbasisisnot materialandsothesefinancialinstrumentsarestatedonthebalancesheetathistoricalcost. Loansandinvestmentsthatarepayableorreceivablewithinoneyeararenotdiscounted.

Taxation

TheGroupisconsideredtopassthetestssetoutinParagraph1Schedule6FinanceAct 2010andthereforeitmeetsthedefinitionofacharitablecompanyforUKcorporationtax purposes.Accordingly,theGroupispotentiallyexemptfromtaxationinrespectofincomeor capitalgainsreceivedwithincategoriescoveredbysections478-488oftheCorporationTax Act2010orSection256oftheTaxationofChargeableGainsAct1992,totheextentthat suchincomeorgainsareappliedexclusivelytocharitablepurposes.

TheGroupispartiallyexemptinrespectofValueAddedTax,sothatitcanonlyrecover around2%ofVATchargedonitsinputs.IrrecoverableVAToninputsisincludedinthecosts ofsuchinputsandaddedtothecostofexpensesasappropriateandtothecostoftangible fixedassets,wheretheinputsthemselvesaretangiblefixedassetsbynature.

Thecollege’ssubsidiarycompaniesaresubjecttocorporationtaxandVATinthesame wayasanycommercialorganisation.

Provisionsandcontingentliabilities

Provisionsarerecognisedwhen;

etheGrouphasapresentlegalorconstructiveobligationasaresultofapastevent, eitisprobablethatatransferofeconomicbenefitwillberequiredtosettletheobligation, and eareliableestimatecanbemadeoftheamountoftheobligation.

Wheretheeffectofthetimevalueofmoneyismaterial,theamountexpectedtoberequired tosettletheobligationisrecognisedatpresentvalueusingapre-taxdiscountrate.The unwindingofthediscountisrecognisedasafinancecostinthestatementofStatementof ComprehensiveIncomeintheperioditarises.

AcontingentliabilityarisesfromapasteventthatgivestheGroupapossibleobligationwhose existencewillonlybeconfirmedbytheoccurrenceorotherwiseofuncertainfutureevents notwhollywithinthecontroloftheGroup.Contingentliabilitiesalsoariseincircumstances whereaprovisionwouldotherwisebemadebuteitheritisnotprobablethatanoutflowof resourceswillberequiredortheamountoftheobligationcannotbemeasuredreliably.

Contingentliabilitiesarenotrecognisedinthebalancesheetbutaredisclosedinthenotes tothefinancialstatements.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 Education Group Heart of Yorkshire

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

Judgementsinapplyingaccountingpoliciesandkeysourcesofestimation uncertainty

Inpreparingthesefinancialstatements,managementhavemadethefollowingjudgements:

eDeterminewhetherleasesenteredintobytheGroupeitherasalessororalesseeare operatingDeterminewhetherleasesenteredintobytheGroupeitherasalessorora lesseeareoperatingorfinanceleases.Thesedecisionsdependonanassessmentof whethertherisksandrewardsofownershiphavebeentransferredfromthelessorto thelesseeonaleasebyleasebasis.

Determinewhetherthereareindicatorsofimpairmentofthegroup’stangibleassets. Factorstakenintoconsiderationinreachingsuchadecisionincludetheeconomic viabilityandexpectedfuturefinancialperformanceoftheassetandwhereitisa componentofalargercash-generatingunit,theviabilityandexpectedfuture performanceofthatunit.

LocalGovernmentPensionScheme

DeterminingtheexistenceofaminimumfundingrequirementfortheLocalGovernment PensionSchemetoincludeintheassetceilinginmeasuringandrecognisingasurplusinthe scheme.Thisjudgementisbasedonanassessmentofthenatureoftheschemeasa statutoryschemeandistheinherentimpliedcontinuanceandtheoperationoftheprimary andsecondarycontributions.

Otherkeysourcesofestimationuncertainty

Tangiblefixedassets

Tangiblefixedassetsaredepreciatedovertheirusefullivestakingintoaccount residualvalues,whereappropriate.Theactuallivesoftheassetsandresidualvalues areassessedannuallyandmayvarydependingonanumberoffactors.Inreassessingassetlives,factorssuchastechnologicalinnovationandmaintenance programmesaretakenintoaccount.Residualvalueassessmentsconsiderissues suchasfuturemarketconditions,theremaininglifeoftheassetandprojecteddisposal values.

Determinewhetherthereareindicatorsofimpairmentoftangibleassets.Factorstaken intoconsiderationinreachingsuchadecisionincludetheeconomicviabilityand expectedfuturefinancialperformanceoftheasset.

Heart of Yorkshire Education Group FINANCIALSTATEMENTS

For the year ended 31 July 2024 Lrestinh tial

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

1AccountingPolicies(continued)

LocalGovernmentPensionScheme

ThepresentvalueoftheLocalGovernmentPensionSchemedefinedbenefit obligationdependsonanumberoffactorsthataredeterminedonanactuarialbasis usingavarietyofassumptions.Theassumptionsusedindeterminingthenetcost (income)forpensionsincludethediscountrate.Anychangesintheseassumptions, whicharedisclosedinnote23,willimpactthecarryingamountofthepensionliability. Theactuaryhasusedarollforwardapproachwhichprojectsresultsfromthelatestfull actuarialvaluationperformedat31March2022tovaluethepensionsobligationat31 July2024.Anydifferencesbetweenthefiguresderivedfromtherollforwardapproach andafullactuarialvaluationwouldimpactonthecarryingamountofthepension obligation.

FundingBodyGrants

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 :

Group

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

3 TuitionFeesandEducationContracts

IncludedwithinFundingBodyGrantsandTuitionFeesandEducationContractsarethe following:

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 ; Hoi hal

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

7 StaffCosts

Theaveragenumberofpersons(includingkeymanagementpersonnel)employedbythe Groupduringtheyearanddisclosedonanaverageheadcountbasis,was:

Staffcostsfortheabovepersons

Staffwereawardeda6.50%increasein2023/24,witheffectfrom1December2023.The dateofpaymentofthe2022/23increaseof3.50%wasSeptember2023,butitwaseffective from1February2023andwasbackdatedtothatdate.

TheGroupmadeseverancepaymentsto7staffinthebandingof£0-£25,000and2staff inthebanding£25,001to£50,000whichareincludedinthe£194,000restructuringcosts above.

Includedinstaffrestructuringcostsarespecialseverancepaymentstotalling£62,097 (2022/23£15,941).Individually,thepaymentswere:£5,154,£7,653,£8,457(with£600 legalcostsincludedinotheroperatingexpenses),£10,238,£14,595(with£420legalcosts includedinotheroperatingexpenses)and£16,000.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 : Education Group

Heart of Yorkshire

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

7 StaffCosts(continued)

KeyManagementPersonnel—CollegeandGroup

Keymanagementpersonnelarethosepersonshavingauthorityandresponsibilityfor planning,directingandcontrollingtheactivitiesoftheGroupandarerepresentedbythe individualslistedearlier(page2)inthesefinancialstatements.

Emolumentsofkeymanagementpersonnel,AccountingOfficerandotherstaff

Thenumberofkeymanagementpersonnelincludingthe 7 8 AccountingOfficerwas:

Thenumberofstaffwhoreceivedannualemoluments,excludingpensioncontributionsand employer'snationalinsurancebutincludingbenefitsinkind,inthefollowingrangeswas:

£60,001to£65,000

£70,001to£75,000

£75,001to£80,000

£80,001to£85,000

£85,001to£90,000

£90,001to£95,000

£95,001to£100,000

£100,001to£110,000

£115,001to£120,000

£170,001to£175,000

£195,001to£200,000

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

7 StaffCosts(continued)

Keymanagementpersonnelcompensation,includingtheAccountingOfficer,ismadeupas follows:

Therewerenoamountsduetokeymanagementpersonnelthatwerewaivedintheyear, noranysalarysacrificearrangementsinplace.Inadditiontotheabovenationalinsurance amountedto£96,000(2022/23-£91,000).

TheaboveemolumentsincludeamountspayabletotheAccountingOfficer(whoisalsothe highestpaidofficer)of:

ThegoverningbodyadoptedAoC’sSeniorStaffRemunerationCodeinJuly2019and assessespayinlinewithitsprincipals.

TheremunerationoftheAccountingOfficerisapprovedbytheGroup’sRemuneration Committee.Fortheyearto31July2024,awrittenresolutionwasapprovedtoawardabonus of£5,000totheAccountingOfficeronthe24November2023.Onthe19February2024,it wasagreedbytheRemunerationCommitteethattheAccountingOfficerwouldreceivethe samePayAwardasmadetoallotherstaff.Thereforetheamountsshownaboveincludea 6.50%increasefor2023/24,witheffectfrom December2023andthe2022/23increaseof 3.50%,paidinSeptember2023,buteffectivefrom1February2023andbackdatedtothat date.

TheAccountingOfficerwasnotinvolvedinsettingherremuneration.Thefactorstakeninto accountbytheCommitteeindeterminingtheAccountingOfficer'sremunerationfortheyear to31July2024included:performanceagainstpersonalobjectives;performanceofthe organisation;sectorbenchmarkingdataonpayofaccountingofficersintheregionandina similarincomebracket;benchmarkingofcollegeswithsimilarstaffnumbersandcomplexity ofincomestreams.

OnlytheAccountingOfficeriscoveredbytheSeniorStaffRemunerationCode.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 teanees

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

7 StaffCosts(continued)

Otherkeymanagementpersonnelaresubjecttothesamepaypoliciesandproceduresas allotheremployees.

Therelationshipbetweentheaccountingofficer'semoluments,expressedasamultipleofall otheremployeesbasedonfull-timeequivalents,issetoutbelowforbothbasicsalaryand totalremuneration.

Totalremunerationasamultipleofmediantotalremunerationof6.135.80 staff

Thisiscalculatedfromthetotalpaycostsexcluding:enhancedpension,pension adjustments,contractedoutstaffingcosts,restructuring,socialsecurityandemployer pensioncontributionsforthebasicsalarycostandincludingemployerpensioncontribution forthetotalremunerationcosts.

Governors’renumeration

TheAccountingOfficersandthestaffmemberonlyreceiveremunerationinrespectof servicestheyprovideundertakingtheirrolesofPrincipalandstaffmembersundercontracts ofemploymentandnotinrespectoftheirrolesasgovernors.Theothermembersofthe CorporationdidnotreceiveanypaymentsfromtheGroupinrespectoftheirrolesas governors.

ThemembersofthecorporationotherthantheAccountingOfficerandthestaffmemberdid notreceiveanypaymentfromtheGroupotherthanthereimbursementoftraveland subsistenceexpensesincurredinthecourseoftheirduties.

ThetotaltravelandsubsistenceexpensespaidtooronbehalfoftheGovernorsduringthe yearwas£847to3governors(2022/23:£700to1governor’)

*2022/23 figures have been updated.

For the year ended 31 July 2024

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

8 Otheroperatingexpenses

Includedinexpenditurearethefollowingtransactions,individualtransactionsexceeding £5,000areidentifiedseparately(noex-gratiapaymentsweremade).

Compensationpayments

Writeoffandlosses 17,5556,524 Thetotalvaluerelatesto26 individualdebtswrittenoffinthe year(oneofthesewasabove £5,000)

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

TheGroup’sAccessandParticipationPlanisavailableontheGroup’swebsiteat: https://www.heartofyorkshire.ac.uk/higher-education/office-for-students

"2022/23 figures have been amended as planned, not actual figures were disclosed.

ThemembersdonotbelievethattheGroupisliableforanycorporationtaxarisingoutofits activitiesduringtheyear.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31July 2024 Eateatonrou

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

‘F’Block(WakefieldCampus)waspreviouslymarketedforsaleandtheassetwasimpaired to£1,200,000.Duetoincreasingstudentnumbers,thepropertyhasbeenreincorporatedinto theGroup’scoreestateandhasbeenpartlyrefurbished.£515,000oftherefurbishmentcost isincludedintheCostfiguresabove.

WakefieldCollege’slandandbuildingswerelastvaluedat31July2014,ontransitiondate toFRS102,byPrincipalSurveyoratSheffieldValuationOfficeinaccordancewiththe PracticestatementsintheRICSValuation—ProfessionalStandardsJanuary2014as publishedbytheRoyalInstitutionofCharteredSurveyors.

LandandbuildingsoftheformerSelbyCollegetransferredtotheHeartofYorkshire EducationGrouponmergerincludelandvaluedat£3,250,000on1August2014(the transitiondatetoFRS102)thatisnotdepreciated.Thiswasincludedatdeemedcost.The valuationofthislandwasperformedbyStephensons,anindependentvaluer,onafairvalue basis.

(continued) 12 Tangiblefixedassets—-GroupandCollege(continued)

Iffixedassetshadnotbeenrevaluedbeforebeingdeemedascostontransitiontheywould havebeenincludedatthefollowinghistoricalcostamounts:

TheCollegeowned100percentoftheissuedordinary£1sharesofSupportingFutures SelbyLimited(SFSLtd),acompanyincorporatedinEnglandandWales.Theprincipal businessactivitySFSLtdwastheprovisionofsupportservices.TheCompanyceased tradinginDecember2022. AllstaffemployedviaSupportingFuturesSelbyLtdwere transferredtodirectemploymentbytheGroupon1December2022andtheCompanywas dissolvedon30January2024.

TheCollegeowns100percentoftheissuedordinary£1sharesofHeartofYorkshire EducationGroupLtd,acompanyincorporatedinEnglandandWales.Thecompanyis dormant.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024

Notes to the Financial Statements for the Period August 2023 to 31 July 2024 (continued)

14Tradeandotherreceivables

Amountsfallingduewithinoneyear:

Tradereceivablesincludesaprovisionforbaddebtsof£41,000(2022/23-£39,000).

DepositswereheldwithbanksandbuildingsocietiesoperatingintheLondonmarketand licensedbytheFinancialConductAuthoritywithmorethanthreemonthsmaturityatthe balancesheetdate.Theinterestratesforthesedepositswerefixedforthedurationofthe depositattimeofplacement.

Heart of Yorkshire Education Group

For the year ended 31 July 2024

(continued)

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 teentcroce

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

TheenhancedpensionprovisionrelatestothecostofstaffwhohavealreadylefttheGroup’s employmentandcommitmentsforreorganisationcostsfromwhichtheGroupcannot reasonablywithdrawatthebalancesheetdate.Thisprovisionhasbeenrecalculatedin accordancewithguidanceissuedbythefundingbodies.

Theprincipalassumptionsforthiscalculationare:

the year ended 31 July 2024 ; EducationGroup

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued) 20Commitmentsunderoperatingleases-GroupandCollege

At31JulytheGrouphadminimumleasepaymentsundernon-cancellableoperatingleases asfollows:

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 Ecotnoup

Notes to the Financial Statements for the Period 1 August 2023 to 31 July 2024 (continued)

22Analysisofchangesinnetfunds-Group

23Retirementbenefits

TheemployeesoftheGroupbelongtotwoprincipalpost-employmentbenefitplans:the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and theLocalGovernmentPensionScheme(LGPS)fornon-teachingstaff,whichismanagedby WestYorkshirePensionFund.Botharemulti-employerdefined-benefitplans.

Thepensioncostsareassessedinaccordancewiththeadviceofindependentqualified actuaries.ThelatestformalactuarialvaluationoftheTPSwas31March2020andofthe LGPS31March2022.

Priortomerger,staffwhoweremembersoftheLGPSatSelbyCollege,hadtheirpensions managedbyNorthYorkshirePensionFund.Theassets(includingcontributionspaidinyear) andliabilitiesweretransferredfromNorthYorkshirePensionFund(NYPF)toWestYorkshire PensionFund(WYPF)followingmerger.Untilthetransfervaluationhasbeencompleted, theWYPFActuaryhasprovidedanapproximatevaluationbasedoninformationprovidedby theNYPFActuary.

TheemployeesofSupportingFuturesSelbyLtd(nolongertrading)belongedtoastakeholder pensionschemethatwasadefinedcontributionsscheme.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

23Retirementbenefits(continued)

Totalpensioncostfortheyear

Contributionsamountingto£555,000(2022/23:£523,000)werepayabletotheschemesat 31Julyandareincludedincreditors(Note16).

Teachers’PensionScheme

TheTeachers’PensionScheme(TPS)isastatutory,contributory,definedbenefitscheme, governedbytheTeachers’PensionSchemeRegulations2014.Theseregulationsapplyto teachersinschools,collegesandothereducationalestablishments.Membershipis automaticforteachersandlecturersateligibleinstitutions.Teachersandlecturersareable tooptoutoftheTPS.

TheTPSisanunfundedschemeandmemberscontributeona‘payasyougo’basis—these contributions,alongwiththosemadebyemployers,arecreditedtotheExchequerunder arrangementsgovernedbytheaboveAct.Retirementandotherpensionbenefitsarepaidby publicfundsprovidedbyParliament.

UnderthedefinitionssetoutinFRS102(28.11),theTPSisamulti-employerpensionplan. Thegroupisunabletoidentifyitsshareoftheunderlyingassetsandliabilitiesoftheplan. Accordingly,theGrouphastakenadvantageoftheexemptioninFRS102andhasaccounted foritscontributionstotheschemeasifitwereadefined-contributionplan.TheGrouphas setoutabovetheinformationavailableontheplanandtheimplicationsfortheGroupinterms oftheanticipatedcontributionrates.

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 EsucatonGroup

Heart of Yorkshire

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

23Retirementbenefits(continued)

NotlessthaneveryfouryearstheGovernmentActuary(“GA”),usingnormalactuarial principles,conductsaformalactuarialreviewoftheTPS.Theaimofthereviewistospecify theleveloffuturecontributions.Actuarialschemevaluationsaredependentonassumptions aboutthevalueoffuturecosts,designofbenefitsandmanyotherfactors.Thelatestactuarial valuationwascarriedoutasat31March2020andinaccordancewithThePublicService Pensions(ValuationsandEmployerCostCap)Directions2023andtheEmployer ContributionRatewasassessedusingagreedassumptionsinlinewiththeDirectionsand wasacceptedattheoriginalassessedrateastherewasnocostcontrolmechanismbreach.

ValuationoftheTeachers’PensionScheme

Thevaluationreportwaspublishedon26October2023.Thekeyresultsofthevaluationare:

-Totalschemeliabilitiesforservice(thecapitalsumneededat31March2020tomeetthe streamoffuturecashflowsinrespectofbenefitsearned)of£262billion

-Valueofnotionalassets(estimatedfuturecontributionstogetherwiththeproceedsfromthe notionalinvestmentsheldatthevaluationdate)of£222billion

-Notionalpastservicedeficitof£39.8billion(2016£22billion)

-Discountrateis1.7%inexcessofCPI(20162.4%inexcessofCPI(thischangehashad thegreatestfinancialsignificance)

Asaresultofthevaluation,newemployercontributionrateshavebeensetat28.68%of pensionablepayfrom1April2024untilApril2028(comparedto23.68%undertheprevious valuationincludinga0.08%administrationlevy).DfEagreedtopayaTeachers’Pensions employercontributiongranttocovertheadditionalcostsduringthe2021/22academicyear, andcurrentlythroughtoJuly2025.

ThepensioncostspaidtoTPSintheyearamountedto£2,678,000(2022/23:£2,479,000).

LocalGovernmentPensionScheme(LGPS)

TheLGPSisafundeddefinedbenefitscheme,withtheassetsheldinseparatefunds administeredbyBradfordMetropolitanDistrictCouncil(WestYorkshirePensionFund). Priortomerger,employeesoftheformerSelbyCollegeweremembersoftheNorth YorkshirePensionFund.

Thetotalcontributionmadefortheyearended31July2024was£2,467,000ofwhich employer'scontributionstotalled£1,863,000andemployees’contributionstotalled £633,000.Thecurrentemployercontributionrateincreasedfrom17.8%to18.4%fromApril 2024andfuturecontributionshavebeennotifiedas19.0%fromApril2025.Employee contributionsarebetween5.5%and12.5%dependentonsalaryaccordingtoanational scale.

Parliamenthasagreed,attherequestoftheSecretaryofStateforEducation,toaguarantee that,intheeventofanFEbodyinthestatutorysectorclosure,wherethereisnotransferor Page71

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 nce hele

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

23Retirementbenefits(continued)

merger,outstandingLocalGovernmentPensionSchemeliabilitieswouldbemetbythe DepartmentforEducation.Theguaranteecameintoforceon12November2024.

Thefollowinginformationisbaseduponafullactuarialvaluationofthefundat31March 2022andupdatedto31July2024byaqualifiedindependentactuary.

Thecurrentmortalityassumptionsincludesufficientallowanceforfutureimprovementsin mortalityrates.Theassumedlifeexpectationsonretirementage65are:

TheGroup’sshareoftheassetsintheplanatthebalancesheetdatewere:

Heart of Yorkshire

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 ; Hotel htstalaad

NotestotheFinancialStatementsforthePeriod August2023to31July2024 (continued)

23Retirementbenefits(continued)

Theamountincludedinthebalancesheetinrespectofthedefinedbenefitpensionplan andenhancedpensionsbenefitsisasfollows:

NetpensionassetrecognisedinBalanceSheet - -

Thevalueofthegroup’sshareofnetassetshasbeenrestrictedduetotheeffectoftheasset ceilingbeingthemaximumvalueofthepresentoftheeconomicbenefitsavailableintheform oftheunconditionalrighttoreducedcontributionsfromtheplan.Acorrespondingchargehas beenmadetoothercomprehensiveincomeintheperiod.

AmountsrecognisedintheStatementofComprehensiveIncomeinrespectofthe planareasfollows:

AmountrecognisedinOtherComprehensiveIncome

For the year ended 31 July 2024 tteaanees

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

23Retirementbenefits(continued) Changesinthepresentvalueofdefinedbenefitobligations

Heart of Yorkshire Education Group FINANCIAL STATEMENTS

For the year ended 31 July 2024 esesuneen

NotestotheFinancialStatementsforthePeriod1August2023to31July2024 (continued)

23Retirementbenefits(continued)

TheGroupisawarethattheCourtofAppealhasrecentlyupheldthedecisionintheVirgin MediavsNTLPensionTrusteesIILimitedcase.Thedecisionputsintoquestionthevalidity ofanyamendmentsmadeinrespectoftherulesofacontracted-outpensionscheme between6April1997and5April2016.Thejudgmentmeansthatsomehistoricamendments affectings.9(2B)rightscouldbevoidifthenecessaryactuarialconfirmationunders.37ofthe PensionSchemesAct1993wasnotobtained.Untilfurtherinvestigationshavebeen completedbytheUKGovernment’sActuary’sDepartmentand/oranylegislativeactiontaken bythegovernment,thepotentialimpactifany,onthevaluationofschemeliabilitiesremains unknown.

24Relatedpartytransactions

Keymanagementcompensationdisclosureisgiveninnote7.

SelbyCollegewasamemberofSelbyEducationalTrust, companylimitedbyGuarantee. During2022/23,rechargestoSelbyEducationalTrustamountedto£5,085.Therewereno amountsoutstandingatthereportingdate.

TransactionswithSubsidiary

SupportingFuturesSelby,asubsidiaryoftheGroup,ceasedtradinginDecember2022, thereforenogoodswerepurchasedbytheCollegefromthesubsidiaryin2023/24(2022/23 —£246,000)andnogoodsandservicesweresoldtoitssubsidiary(2022/23-£1,500).No amountswereowedbyortothecompanyatthereportingdate.

Qualifiedconclusion

Wehavecarriedoutanengagement,inaccordancewiththetermsofourengagementletter dated23December2022andfurthertotherequirementsofthegrantfundingagreementsand contractswiththeEducationandSkillsFundingAgency(the“ESFA”)andtheDepartmentfor Education(theDfE)orthoseofanyotherpublicfunder,toobtainlimitedassuranceaboutwhether theexpendituredisbursedandincomereceivedbyHeartofYorkshireEducationGroupduring theperiod1August2023to31July2024havebeenappliedtothepurposesidentifiedby Parliamentandthefinancialtransactionsconformtotheauthoritieswhichgovernthem.

Inthecourseofourwork,exceptforthemattersarisinglistedbelow,nothinghascometoour attentionwhichsuggeststhatinallmaterialrespectstheexpendituredisbursedandincome receivedduringtheperiod1August2023to31July2024havenotbeenappliedtopurposes intendedbyParliamentandthefinancialtransactionsdonotconformtotheauthoritieswhich governthem.

Mattersarising

Duringthefinancialyearended31July2024theCollegemadeanoncontractualtermination paymenttoanemployeeinexcessofthedelegatedauthoritygiventothecollegeunderthe ESFA’sbite-sizeguide“collegerequirementsforspecialpayments,includingseverance, compensationandex-gratiapayments”.Theamountofthenoncontractualspecialpaymentthat requiredpriorESFAconsent,whichwasnotsought,was£14,595,whichwasgreaterthanthe equivalentof3monthsgrosssalary.

Basisforqualifiedconclusion

TheframeworkthathasbeenappliedissetoutinthePost-16AuditCodeofPractice(theCode) issuedbytheESFAandinanyrelevantconditionsoffundingconcerningadulteducationnotified byarelevantfunder.

WehavecompliedwiththeindependenceandotherethicalrequirementsoftheFRC’sEthical StandardandtheethicalpronouncementsoftheICAEW.WealsoapplyInternationalStandard onQualityManagement(UK)1QualityManagementforFirmsthatPerformAuditsorReviewsof FinancialStatements,orOtherAssuranceorRelatedServicesEngagementsandaccordingly maintaincomprehensivesystemsofcontinuingqualitymanagement.Webelievetheassurance evidencewehaveobtainedissufficienttoprovideabasisforourqualifiedconclusion.

ResponsibilitiesofCorporationforregularity

TheCorporationoftheHeartofYorkshireEducationGroupisresponsible,underthegrant fundingagreementsandcontractswiththeESFAandtherequirementsoftheFurther&Higher EducationAct1992,subsequentlegislationandrelatedregulationsandguidance,forensuring thatexpendituredisbursedandincomereceivedareappliedforthepurposesintendedby Parliamentandthefinancialtransactionsconformtotheauthoritieswhichgovernthem.The CorporationofHeartofYorkshireEducationGroupisalsoresponsibleforpreparingthe GoverningBody'sStatementofRegularity,ProprietyandCompliance.

Reportingaccountant’sresponsibilitiesforreportingonregularity

OurresponsibilitiesforthisengagementareestablishedintheUnitedKingdombyour profession’sethicalguidanceandaretoobtainlimitedassuranceandreportinaccordancewith ourengagementletterandtherequirementsoftheCode.

Reportingaccountant’sresponsibilitiesforreportingonregularity(continued)

Theobjectiveofalimitedassuranceengagementistoperformsuchproceduresastoobtain informationandexplanationsinordertoprovideuswithsufficientappropriateevidencetoexpress anegativeconclusiononregularity.Alimitedassuranceengagementismorelimitedinscope thanareasonableassuranceengagementandtheproceduresperformedvaryinnatureand timingfrom,andarelessinextentthanforareasonableassuranceengagement;consequently alimitedassuranceengagementdoesnotenableustoobtainassurancethatwewouldbecome awareofallsignificantmattersthatmightbeidentifiedinareasonableassuranceengagement. Accordingly,wedonotexpressapositiveopinion.

Wereporttoyouwhetheranythinghascometoourattentionincarryingoutourworkwhich suggeststhatinallmaterialrespects,expendituredisbursedandincomereceivedduringthe period1August2023to31July2024havenotbeenappliedtopurposesintendedbyParliament orthatthefinancialtransactionsdonotconformtotheauthoritieswhichgovernthem.

Ourworkincludedidentificationandassessmentofthedesignandoperationaleffectivenessof thecontrols,policiesandproceduresthathavebeenimplementedtoensurecompliancewiththe frameworkofauthoritiesincludingthespecificrequirementsofthegrantfundingagreementsand contractswiththeESFAandthoseofanyotherpublicfunderandhighlevelfinancialcontrol areaswhereweidentifiedamaterialirregularityislikelytoarise.Weundertookdetailedtesting, onasamplebasis,ontheidentifiedareaswhereamaterialirregularityislikelytoarisewhere suchareasareinrespectofcontrols,policiesandproceduresthatapplytoclassesof transactions.

Thisworkwasintegratedwithourauditofthefinancialstatementsandevidencewasalsoderived fromtheconductofthataudittotheextentitsupportstheregularityconclusion.

Useofourreport

ThisreportismadesolelytotheCorporationoftheHeartofYorkshireEducationGroupandthe SecretaryofStateforEducationactingthroughtheESFAinaccordancewiththetermsofour engagementletter.OurworkhasbeenundertakensothatwemightstatetotheCorporationof theHeartofYorkshireEducationGroupandtheSecretaryofStateforEducationactingthrough theESFAthosematterswearerequiredtostateinareportandfornootherpurpose.Tothe fullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthan theCorporationoftheHeartofYorkshireEducationGroupandtheSecretaryofStatefor EducationactingthroughtheESFAforourwork,forthisreport,orfortheconclusionwehave formed.

own Ulo Ault CLP

RSM UK AUDIT LLP CharteredAccountants

FirstFloor TwoHumberQuays WellingtonStreetWest Hull HU12BN

Date: i al | 2024

ACRONYM GLOSSARY

AEB

AoC

DfE

EBITDA

ESFA

FE FEC

FRC

FRS

GDPR HE HIA

ICAEW

AdultEducationBudget

AssociationofColleges

DepartmentforEducation

EarningsBeforeInterest,Taxes,DepreciationandAmortisation

EducationandSkillsFundingAgency

FurtherEducation

FurtherEducationCommissioner

FinancialReportingCouncil

FinancialReportingStandard

GeneralDataProtectionRegulation

HigherEducation

HeadofInternalAudit

InstituteofCharteredAccountantsinEnglandandWales

InternalAuditService

IndividualLearnerRecord

InternationalStandardsonAuditing

InformationTechnology

KeyPerformanceIndicator

LocalGovernmentPensionScheme

LimitedLiabilityPartnership

LocalSkillsImprovementFund

NotApplicable

NationalStudentSurvey

NorthYorkshirePensionFund

OrderoftheBritishEmpire

OfficeforStudents

OfficeforNationalStatistics

PerformanceIndicator

RoyalInstituteofCharteredSurveyors

SupportingFuturesSelby

StatementofRecommendedPractice

Teachers’PensionScheme

ValueAddedTax

WestYorkshireCombinedAuthority

WestYorkshirePensionFund