Annual Financial Report 2025 - Coleg Ceredigion

Coleg Ceredigion Further Education Corporation was established under the Further Education and Higher Education Act 1992 for the purpose of conducting education and training at Coleg Ceredigion, which is a bilingual further education college with campuses at Aberystwyth and Cardigan.

On 31 December 2013 the Coleg Ceredigion Further Education Corporation (Dissolution) Order 2013 came into force. This order dissolved the further education corporation previously established and transferred all of its properties, rights and liabilities to the new Coleg Ceredigion Company (incorporated on 9 October 2013). The Coleg Ceredigion (Designated Institutions in Further Education) Order 2013 came into force on the same day establishing a new College conducted by a registered company, limited by guarantee. This new Coleg Ceredigion company was a wholly owned subsidiary of University of Wales: Trinity Saint David up until the 1st of August 2017 when ownership transferred to Coleg Sir Gar, another subsidiary of University of Wales: Trinity Saint David.

The principal activities of the College are the provision of conducting education and training, within a rural, bilingual further education college situated on campuses in Aberystwyth and Cardigan.

The distance between the two campuses is 40 miles. The college’s main catchment area is the county of Ceredigion but the college also attracts a considerable number of students from parts of Pembrokeshire, Carmarthenshire and Powys.

The College has an annual turnover of around £ 6.2m and employs circa 130 staff of whom around 70 are employed on a full-time basis. Each year, around 900 learners enrol at the college.  This total includes circa 600 full-time learners, with the majority being school leavers from the ten secondary schools in the college’s catchment area (the seven secondary schools in Ceredigion together with the secondary schools located in Machynlleth, Newcastle Emlyn and Crymych).

Ceredigion’s population, according to the 2021 census is 71,500. With 40 people per square kilometer, the area is one of the least densely populated in Wales. In keeping with the rest of Wales 25.7% of the population are 65 years or over. The number of 16–19-year olds in the county is projected to decrease over the next 10 years. Consequently, the college takes careful account of this demographic trend in all its decision-making in relation to the college curriculum. According to the 2021 Census 47.35% of the population of Ceredigion are Welsh speakers, compared with 17.8% across Wales.

The population is scattered throughout the small towns, villages and hamlets of the county. Aberystwyth is by far the largest town, with a resident population of over 18,000, which increases to approximately 25,000 during university term time. The next largest towns are Cardigan with a population of 4,000 and Lampeter with a resident population of 2,000, which also increases during university term time. The fourth largest town is Aberaeron with a population of 1,500. Coleg Ceredigion’s campuses are therefore located in the two largest towns in the county.

Ceredigion is poorly served by public transport. Some main routes have an adequate bus service but public transport is a challenge for many communities. Many learners would not be able to attend Coleg Ceredigion were it not either for their own private transport or for the bus service.

• inspiring learners

• fulfilling potential

• achieving excellence

We will:

• put the needs of the learner first;
• be safe, inclusive and caring;
• live by our values and behaviours;
• provide the best learner experience, enhanced by digital technology;
• facilitate personal development and progression for learners;
• encourage curiosity and creativity in teaching and learning;
• develop a flexible, employer-informed curriculum;
• champion the Welsh language and culture;
• implement an ambitious workforce development programme;
• develop partnerships that impact positively on learners and business performance;
• improve our financial resilience and efficiency;
• support regeneration and prosperity in our communities; and
• create a sustainable environment for learners to be successful.

RESPECT
We will be:

• accepting of difference and provide opportunity for everyone to thrive;
• empathetic to each others’ needs;
• courteous and kind to each other;
• supportive and care for each other;
• ready and willing to engage positively.

UNITY
We will be:

• one team with a set of common goals and unified direction;
• mindful of our behaviour and language, and its impact on others;
• bilingual in our communication and engagement;
• integrated with our community and partners;
• transparent in all aspects of our work.

PROFESSIONALISM
We will be:

• honest and act with integrity;
• driven to provide outstanding education and customer service;
• open to receiving different views that inform our decision-making;
• a learning organisation with a curious nature;
• sustainable in our planning and delivery

• Outstanding teaching and learning

• Inspirational learner experience

• Sustainable organisational resilience

• Committed partnership working

The College’s financial objectives are:

• to achieve an annual operating surplus (defined as a surplus prior to FRS 102 non cash pension costs) and positive cash flow
• to diversify income streams and reduce reliance on core funding
• to generate sufficient levels of cash to support the asset base of the College
• to ensure a healthy short-term liquidity position
• to fund continued capital investment

The Statement of Comprehensive Income for the period is set out on page 30. The highlights for the period in relation to these are detailed below. 

• Total income for the period has increased to circa £ 6.9 million (2024: £6.6 million). Maintaining a significant level of turnover reflects the continued success of the College at further education. Fluctuations in turnover are inevitable, and can be greatly influenced by the level of project work undertaken.
• Staff costs as a percentage of total income increased to 71.1% mainly due to increases in employers pension and national insurance contributions. The average number of staff by FTE employed is consistent to the previous year. Other operating expenses decreased as a percentage of total income, from 27 % to 24 %.
• The deficit for the year was £74,000 (2024: £1,000 deficit).
• The liquidity position remains consistent with the previous year. The ratio of short-term assets to creditors falling due within one year stands at 2.57 (2024: 2.63).
• Net assets have decreased by £0.118 million to a positive £3.226 million. For further details on the accounting standards under which these financial statements are prepared, see the Statement of Principal Accounting Policies and Estimation Techniques on page 34.
• Specific capital grants were applied in line with the College’s Strategic Plan towards enhancing effectiveness and providing a quality learning environment.
• The provision for enhanced pensions was reviewed during the period and the balance required at 31 July 2025 has been estimated at £233,000 (2024: £240,000).

Treasury management is the management of the College’s cash flows, banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

The College has a separate treasury management policy in place.

Short-term borrowing for temporary revenue purposes is authorised by the Accounting Officer.  All other borrowing requires the authorisation of the Corporation and shall comply with the requirements of the Financial Memorandum.

The college operating cashflow position for the year is a positive amount of £0.129m. Overall cash balances increased from £1.650m to £1.779m. The College wishes to continue to accumulate cash balances to fund future planned capital developments. To achieve this, the College has continued its drive for efficiency in the education and training it delivers. This has been, and will be, achieved by thoroughly reviewing its curriculum provision, effective deployment of resources, and best value procurement of goods and services. In addition, the College continues to seek and develop other sources of income. Significant re-investment into the College estate and plant and equipment ensures that learners have quality provision to aid in their educational process. The College aims to hold a minimum of two months expenditure in cash reserves at all times.

There is a wide-ranging curriculum that meets learners’ aspirations.  The curriculum is broad, flexible, coherent, and facilitates progression.  It is offered in a variety of modes to suit learners’ needs.  There is a strong vocational focus and all Sector Subject Areas are represented at the College. 

The curriculum is formulated and reviewed in partnership with the College’s stakeholders, the Regional Learning and Skills Partnership (RLSP), Sector Skills Councils, 14-19 networks, the ACL Group, University of Wales: Trinity Saint David, industry, business and local employers.  This is supplemented using skills observatory data provided through the RLSP.  

The College has a Curriculum and Quality Committee, reporting to the Board’s Advisory Body for Curriculum and Standards. This provides a focus for discussion on curriculum and quality policy and development matters.

A range of options are available at all levels which offer diversity and choice to learners.  The County’s Youth Access programme also provides a partial full-time alternative curriculum for learners at the College who have had difficulty in, or have been excluded from, local schools.  Almost the entire curriculum offered by the College is accredited, providing opportunities for learners to attain formal qualifications.  

A range of further accredited provision is provided to learners to support learning. Learners also engage in a wide range of activities that enrich their study including work-related experiences, live projects, educational visits, overseas visits, environmental work, visiting speakers, community arts, voluntary work and fundraising. 

The College has excellent partnership arrangements which contribute to an enhanced curriculum and learning experience.  

From 31st December 2013, the College became part of the University of Wales: Trinity Saint David group, maximising opportunities for learners and sharing information, expertise and resources. On the 1st of August 2017, ownership was transferred to Coleg Sir Gar, also a subsidiary of University of Wales: Trinity Saint David.

The college has played a leading role in developing Partnerships with a broad range of partners within Ceredigion and on a regional level. Some of this work is undertaken in networks such as the 14-19 Network, Growing Mid Wales Partnership, Regional Learning Partnership, and the Ceredigion ACL Partnership. Some work is with a range of FE and HE institutions, the B-WBL Work-based Learning Consortium, voluntary, statutory and specialist agencies, the local economic and the Regeneration Partnership. 

*2024/25 outcomes are pending finalisation and validation by the Welsh Government.

In 2023/24, successful completion outcomes for full-time FE vocational programmes show improvement in some areas, though performance remains below national benchmarks in others. Entry and Pre-Entry provision continues to be a strength, achieving outcomes above the national comparator, while Level 2 improved to 76%, just below the national rate. At Level 3, outcomes remain consistent at 76% compared with 81% nationally, and Level 1 declined slightly to 75% against the 80% benchmark. Access to HE also showed improved outcomes but remains below national averages. Improving outcomes in Level 3 and Level 1 are key priorities in 2024/25, with early indications suggesting improvement is expected.

In 2024/25, A Level performance at the College exceeded national comparators across all grade boundaries. The proportion of A* grades rose significantly to 14%, compared with 10% nationally and an increase from 6% in 2023/24. Higher grades (A*–A) also improved to 32%, slightly above the national comparator of 30% and an increase from 25% in the previous year. Overall pass rates (A*–E) remained very strong at 99%, exceeding the national benchmark of 98% and improving on 92% in 2023/24. These results highlight sustained improvement and position the College’s A Level provision above national benchmarks.

In 2024/25, AS Level performance at the College presents a mixed picture when compared with national benchmarks. The proportion of A grades decreased slightly to 19.4%, below the national figure of 23% and down from 21% in 2023/24. However, overall pass rates (A–E) improved to 96%, six points above the national benchmark of 90%, and a notable increase on 92% in the previous year. Overall, these outcomes reflect excellent achievement, with improved outcomes of higher grades identified as a focus for further development.

*2024/25 outcomes are pending finalisation and validation by the Welsh Government.

In 2023/24, overall apprenticeship success improved significantly to 80%, from the decline experienced in 2022/23. Success in Foundation Apprenticeships continue to rise, reaching 80%, while Apprenticeships recovered to 77% after the significant decline in 2022/23. Higher Apprenticeships show the most marked improvement, increasing to 84% from 64% in 2022/23. These outcomes demonstrate an upward trend across all levels, reflecting the impact of targeted improvement strategies.

Over the past three years, HE performance at the college has shown a downward trend, with both full-time and part-time cohorts experiencing declines. Full-time student performance fell sharply from 88% in 2021/22 to 75% in 2022/23, before showing a modest recovery to 78% in 2023/24. Part-time outcomes were initially more stable, falling slightly from 86% to 84%, and further, more significantly to 78% in 2023/24. These trends have prompted targeted interventions, and the improvement among full-time learners suggests these actions are beginning to have a positive impact. Early indications show further progress in 2024/25, with outcomes improving across both full-time and part-time cohorts.

The College is committed to achieving the best for its learners. It understands that every learner learns in their own unique way, and is dedicated to providing engaging, innovative, and well-supported learning experiences to help each learner thrive and succeed.   The College’s Teaching and Learning Strategy is designed to empower staff to provide each and every learner with the opportunity to succeed. In an ever-changing world, it is essential to build resilience in both staff and learners to ensure they are equipped to face future challenges. 

The College’s approach to teaching and learning, and the learner experience is underpinned by its commitment to all:

• staff being empowered to underpin their pedagogy choices through action research informed processes.
• teaching and learning environments to be digitally enabled and innovative.
• staff being supported to access industry upskilling to nurture and enhance their dual professionalism.
• staff trained and supported to create inclusive and empowering environments based on a culture of coaching.

The College provides bespoke and tailored support for all learners and staff. The significant emphasis on training, motivating and supporting staff was recognised in 2017 when Coleg Sir Gâr was awarded the Association of Colleges Beacon Award for excellence in staff development; in 2019 when it received a Princess Royal Training Award and more recently in 2022 when it again received a Princess Royal Training Award. 

Staff actively engage with, and benefit from the College’s strong commitment to continuous professional development, reflected in learner outcomes and learner survey results. Central to this process is each teacher’s self-assessment of their performance against key criteria, which helps create a personalised teaching profile identifying specific areas for development. After a period of implementation, the self-assessment process is repeated to enable ongoing tailored support and improvement.

The College’s Teaching and Learning Team provides excellent support and tailored training to new members of staff, PGCE students and those teaching staff who need support with aspects of their work. Excellence in teaching is highly valued and celebrated through an annual teaching and learning award ceremony.

The College is dedicated to fostering a healthy environment that enhances the wellbeing of both learners and staff. In response to increasing needs, it has elevated the focus on wellbeing and mental health.  Induction, tutorial, and promotional activities have successfully enhanced learners’ understanding of wellbeing, reflecting the College’s priority on ensuring their safety, including online safety.

The College provides excellent specialist support for personal wellbeing and mental health. A new referral and assessment procedure has been introduced, focusing on ensuring that learners receive the appropriate support at the right time.  Learners who face considerable barriers to learning are referred to mentoring and counselling services. Learner feedback is positive, with the wellbeing team’s support playing a crucial role in helping students stay in education and succeed, despite often facing significant personal challenges.

A strong emphasis on equality and diversity ensures that all learners and staff are treated with respect. Awareness has been effectively raised among both groups through a variety of media and activities that are prominently showcased across the campuses.

Effective measures are in place to safeguard children and vulnerable adults, supported by clear policies and procedures. The College’s “be safe” message emphasises the rights of all learners to be free from bullying and harassment, with definitive actions taken to prevent such behaviour. Online safety is also well-supported through dedicated promotions and tutorial activities.

The 2024/25 annual further education (FT) learner voice survey continues to demonstrate high learner satisfaction across both AS & A Level and Vocational courses. Learners report that lessons are well-planned, challenging, and engaging, with effective use of technology, opportunities for collaboration, and strong, timely feedback. Teachers are seen to support individual learning needs, maintain high expectations, and inspire learners to succeed, creating a positive and motivating learning environment.

Higher Education students in their final year of study have continued to respond well to the National Student Survey, and excellent student satisfaction scores have historically been achieved in teaching, learning and overall experiences in college.  However, the 2025 National Student Survey results highlight a downward trend in overall student satisfaction at CSG, falling from 87% in 2023 and 85% in 2024 to 77%, placing the College below both UWTSD (85%) and the Welsh HEI averages (82%). Declines are evident across teaching, assessment and feedback, academic support, organisation and management, and learning opportunities, where CSG now performs at or below sector averages. However, learning resources remain a clear strength, with satisfaction rising consistently to 94% in 2025, exceeding both UWTSD and the Welsh HEIs average. Whilst the College continues to achieve satisfaction scores broadly aligned with sector averages, targeted action is required to address the overall decline and restore previous levels of student satisfaction in higher education.

The College operates a strong risk management and internal control framework as described in the corporate governance statement below. This is supported by a specific risk management programme.

The Audit and Risk Management committee undertakes a comprehensive review of all the potential risks facing the College, which are then recorded on the College’s risk register and scored in accordance with a set matrix which identifies the likelihood or probability of these risks occurring, and the potential impact on the College if they materialise. The committee must then identify systems, procedures and controls which can be put in place to mitigate the risks in order to reduce the risks to a manageable or acceptable level.

Risk management is a topic covered at each meeting of the Audit and Risk Management committee, which reports its findings periodically to the Board. 

An annual review is undertaken to ensure the effectiveness of the risk management system and any weaknesses identified are corrected. 

Outlined below are some of the principal risks facing the College for the foreseeable future. Not all of the factors are within the College’s control. Other factors besides those listed below may also adversely affect the College. 

1. Reduction in real terms of government funding

The College relies on government funding, and the current climate is such that there are continuous pressures on this income stream. 

This risk is mitigated in a number of ways:

• Concerted effort, drive and focus on creating a more diversified income base;
• Specific focus on quality to ensure a high standard of delivery in all education and training endeavours;
• Maintaining the intake of higher education students. The College already offers a significant higher education provision;
• Working closely with the UWTSD group and Coleg Sir Gâr to harmonise operations and remove duplication with a view to reducing costs;
• The operation of a Business Development Unit which has a primary objective of building a sustainable commercial income stream that is not reliant on government funding;
• Focusing on priority sectors which are likely to continue to attract public funds;
• Growing and developing the College’s work-based learning provision; and
• Building partnerships with schools and business.

2. Failure to recruit and retain students

Demographics and a changing environment in which competition is perceived to be intensifying will invariably make it more difficult to recruit and maintain student numbers. This could have an impact on all areas of funding.

The risk is mitigated as follows:

• Partnership working with schools;
• Focused marketing effort;
• Diversified income streams;
• Partnership with local businesses and other relevant bodies;
• Ensuring high quality delivery of education and training;
• Learner support structures to ensure learners are supported for the whole journey;
• Focus on progression through the levels. 

3. General Economic Conditions: Increasing costs and pay pressures

The college is actively addressing operations to ensure the smooth continuity of operations as well as working closely with Welsh Government during these continued challenging times. 

The College can confirm that the target of breakeven before defined benefit obligation costs has been achieved. With an actual outturn before non-cash defined benefit obligation costs of (£118,000) deficit (23/24: £147,000 deficit). The deficit for the year after defined benefit obligation costs is (£74,000) (deficit of £1,000 in 23/24), with non-cash adjustments being (£44,000) (23/24: £146,000). 

Student numbers remained relatively buoyant for the year, with total FE full time numbers roughly in line with prior year levels.

The College continues to achieve high standards of quality for its teaching and learning function, and received a good Estyn report in at the last inspection (see Strategic Report). Similarly, National Student Survey reports normally indicate a high level of student satisfaction. 

This report was approved by the board on the 11th December 2025 and was signed on behalf of the board by:                    

Signature: 

Date: 11th December 2025

Mr John Edge

Director

The directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year, and remains in force as at the date of signing of these financial statements.

The College follows the Better Payments Practice Code in dealing with its suppliers. The four key principles of the code are:

• agree payment terms at the outset of a deal and stick to them;
• explain the payment procedures to suppliers;
• pay bills in accordance with any contract agreed with the supplier, or as required by law; and
• inform suppliers without delay when an invoice is contested and settle quickly on receiving a satisfactory response.

The Late Payment of Commercial Debts (Interest) Act 1998, which came into force on 1 November 1998, requires Colleges, in the absence of agreement to the contrary, to make payments to suppliers within 30 days of either the provision of goods or services or the date on which the invoice was received. 

The College regularly invests in the maintenance of the estate with planned annual programmes of maintenance carried out during the summer months. Annual budgets include an allocation for such works. 

The College is committed to ensuring equality of opportunity for all who learn and work here. We respect and value positively differences in race, gender, sexual orientation, disability, religion or belief and age. We strive vigorously to remove conditions which place people at a disadvantage and we will actively combat bigotry. This policy is resourced, implemented and monitored on a planned basis.

The College’s Strategic Equality Plan, although applying generally to employees, has equal relevance to disabled persons as the College would provide training, career development and opportunities for promotion which are, as far as possible, identical to those for other employees.

The College has many stakeholders.  These include, but are not limited to:

• Students;
• Education sector funding bodies;
• Staff;
• Local employers (with specific links);
• Local authorities;
• Local Enterprise Partnerships (LEPs);
• The local community;
• Other FE institutions;
• Trade unions; and
• Professional bodies.

The College recognises the importance of these relationships and engages in regular communication with them through meetings and the College’s internet site.

The College systematically provides employees and staff with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests The committee structure provides the formal communication links with representation as appropriate from different staff employment categories and students. Employee and student involvement in the College is encouraged, as achieving a common awareness on the part of all employees and students of the financial and economic factors affecting the College plays a major role in the decision-making process.  

The Directors are required to present audited financial statements for each financial year under company law.  The Directors are responsible for preparing the Strategic Report, the Directors’ Report, Public Benefit Statement and Statement of Corporate Governance and Internal Control and the financial statements in accordance with applicable law and regulations.  

Within the terms and conditions of the Financial Memorandum between the Welsh Government and the further education institutions, the Directors are required to prepare financial statements and an operating and financial review for each financial year in accordance with the Statement of Recommended Practice – Accounting for Further and Higher Education, the Accounts Direction for Further Education Colleges in Wales and the UK’s Generally Accepted Accounting Principles including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.  Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the College and its profit or loss for that period.

The regulation of the Welsh Further Education sector was transferred from the Welsh Government to Medr, the Commission for Tertiary Education and Research on 1 August 2024. The Audit Code of Practice, Accounts Direction for Further Education Colleges in Wales 2024/25 issued by Welsh Government (“2024/25 Accounts Direction”) and Financial Memorandum Management Code issued by the Welsh Government remain in place until superseded by subsequent Medr publications. In view of this transfer, any reference to the Welsh Government in our report should be read as also referring to Medr.

In preparing the financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• assess the College’s ability to continue as a going concern, noting the key supporting assumptions or mitigating actions, as appropriate (which must be consistent with other disclosures in the accounts); and
• use the going concern basis of accounting unless they intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.

The Directors are also required to prepare a Members’ Report which describes what it is trying to do and how it is going about it, including information about the legal and administrative status of the College.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the College’s transactions and which disclose, with reasonable accuracy at any time, the financial position of the College and which enable them to ensure that the financial statements are prepared in accordance with relevant legislation including the Companies Act 2006, the Further and Higher Education Act 1992 and Charities Act 2011, and relevant accounting standards.  They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. They are responsible for taking steps that are reasonably open to them to safeguard the College’s assets and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of its website(s); the work carried out by auditors does not involve consideration of these matters and, accordingly, auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors are responsible for ensuring that expenditure and income are applied for the purposes intended by the Welsh Government and that the financial transactions conform to the authorities that govern them. In addition, they are responsible for ensuring that funds from the Welsh Government, and any other public funds, are used only in accordance with the Financial Memorandum with the Welsh Government and any other conditions that may be prescribed from time to time by the Welsh Government or any other public funder. The Directors must ensure that there are appropriate financial and management controls in place to safeguard public and other funds and ensure they are used properly. In addition, Directors are responsible for securing economical, efficient, and effective management of the College’s resources and expenditure so that the benefits that should be derived from the application of public funds from the Welsh Government and other public bodies are not put at risk.

UK Greenhouse gas emissions and energy use data for the period 1st August 2024 to 31st of July 2025 : 

We have followed the 2019 HM Government Environmental Reporting guidelines. We have also used the GHG Reporting Protocol  - Corporate Standard and have used the 2024 UK Government’s conversion factors for Company Reporting

The chosen intensity measurement ratio is total gross emissions in metric tonnes Co2e per pupil, the recommended ratio for the sector.

Smart meters are installed across all sites. Energy saving lightbulbs (LEDs) are installed wherever possible and staff travel is reduced due to a focus on conducting meetings virtually using software such as Teams or Google meet. The college has invested heavily in bicycle storage facilities and operates a Cycle to Work Scheme to encourage this cleaner and healthier means of travel to college. EV (Electric Vehicle) charging points are also installed at both our campuses. 

Each of the persons who were directors at the time when the Directors’ Report was approved has confirmed that, so far as the directors are aware, there is no relevant audit information (i.e. information needed by the company’s auditor in connection with preparing their report), of which the company’s auditors are unaware, and the directors have taken all steps that they ought to have taken in order to make themselves aware of any relevant information and to establish that the company’s auditor is aware of that information.

Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office.

In August 2024, MEDR (the Commission for Tertiary Education and Research), a new arm’s length body, took over responsibility for funding and overseeing tertiary education and research.

Approved by order of the Directors on 11th December 2025 and signed on its behalf by:

Signed:  

Mr John Edge

Director

The members of the Board of Directors are listed on page 15. It is the responsibility of the directors to bring independent judgement to issues of strategy, performance, resources and standards of conduct. The Company recognises that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times. 

The Board is provided with regular and timely information on the overall financial performance of the Company, together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel-related matters such as health and safety and environmental issues. The Board meets four times a year.

The Company conducts its business through a number of committees. Each committee has terms of reference which have been approved by the Board. These committees are Search and Governance, Remuneration; Learner Curriculum and Skills; Standards; Resources and Business Engagement; and Audit and Risk Management. 

The committees are comprised of directors and co-opted members chosen via the search and governance committee which is comprised entirely of directors - for the knowledge, skills and experience that they bring to the respective committee. For the avoidance of doubt, the co-opted members are not directors of the Company. All decisions taken by the committees have to be subsequently formally approved by the Board.

The committees serve on an advisory basis and report directly to the Board of Directors. As a minimum, the chair of each committee will be a serving director. Details of the composition of each committee are noted under the respective heading below. Formal agendas, papers and reports are supplied to committee members and directors in a timely manner, prior to meetings. Briefings are also provided on an ad-hoc basis. 

The Board has a strong and independent non-executive element and no individual or group dominates its decision-making process. The Company considers that each of its non-executive members is independent of management and free from any business or other relationship, which could materially interfere with the exercise of their independent judgement.

There is a clear division of responsibility in that the roles of the Chairman (a non-executive director) and Principal (an executive director) are separate.

The Board of Coleg Ceredigion meet regularly, but in the main, items for consideration are dealt with at the Coleg Sir Gar Board meetings (as the direct parent company).

Any new appointments to the Board are a matter for the consideration of the Board as a whole. The Search committee is responsible for the selection and nomination of any new member for the Board’s consideration. The Board is responsible for ensuring that appropriate training is provided as required.

Throughout the year ended 31 July 2025, the Institution’s Search committee comprised four members of the Board of Directors. The committee’s responsibilities are to make recommendations to the Board on the selection of directors and co-opted members, and on matters of governance.  

Made up of three Directors, the committee determines the remuneration and conditions of employment of senior post holders, including the principal. Details of remuneration for the year ended 31 July 2025 are set out in note 6 to the financial statements.

The Audit and Risk Management committee is comprised of four members. The committee operates in accordance with written terms of reference approved by the Board. 

The Audit and Risk Management committee meets on a termly basis and provides a forum for reporting by the Institution’s internal and financial statement auditors, who have access to the committee for independent discussion without the presence of Institution management. The committee also receives and considers reports from WG as they affect the Institution’s business.

The Company’s internal auditor monitors the systems of internal control, risk management controls and governance processes in accordance with an agreed plan of input, and report their findings to management and the Audit and Risk Management committee.

Management is responsible for the implementation of agreed audit recommendations, and internal audit undertake periodic follow-up reviews to ensure such recommendations have been implemented.

The Audit and Risk Management committee also advises the Company on the appointment of internal and financial statement auditors, and their remuneration for both audit and non-audit work.

The Resources and Business Development committee is comprised of eight members. The committee operated in accordance with written terms of reference approved by the Board. 

The committee meets on a termly basis to review all aspects of planning and resource utilisation in the Company. This would include budgeting, management and financial accounts, treasury and investments, human resources, and estates development and maintenance.

The Learner, Curriculum and Skills along with the Standards committee is comprised of eight members. The committees operated in accordance with written terms of reference approved by the Board. 

The committees meet on a termly basis to review all aspects of curriculum provision, delivery and performance in the Company. 

Scope of responsibility

The directors are ultimately responsible for the Institution’s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The Board has delegated the day-to-day responsibility to the principal for maintaining a sound system of internal control that supports the achievement of the Institution’s policies, aims and objectives, whilst safeguarding the public funds and assets for which they are personally responsible, in accordance with the responsibilities assigned to them in the Financial Memorandum between Coleg Ceredigion and Medr/ WG. The principal is also responsible for reporting to the Board any material weaknesses or breakdowns in internal control.

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Institution policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Coleg Ceredigion for the year ended 31 July 2025 and up to the date of approval of the annual report and financial statements. 

Capacity to handle risk

The Board reviewed the key risks to which the Institution is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board is of the view that there is a formal ongoing process for identifying, evaluating and managing the Institution’s significant risks that has been in place for the year ending 31 July 2025 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board. 

The risk and control framework

The system of internal control is based on a framework of regular management information, administrative procedures including the segregation of duties, and a system of delegation and accountability. In particular, it includes:

• Comprehensive budgeting systems with an annual budget, which is reviewed and agreed by the Board;
• Regular reviews by the advisory committee and board of periodic and annual financial reports, which indicate the financial performance against forecasts;
• Setting targets to measure financial and other performance;
• Clearly defined capital investment control guidelines; and
• The adoption of formal project management disciplines, where appropriate.

Coleg Ceredigion engages a firm of professional auditors to provide an internal audit service, which operates in accordance with the requirements of Medr/WG. The work of the internal audit service is informed by an analysis of the risks to which the Institution is exposed and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit plans are endorsed by the Board on the recommendation of the audit and risk management committee. The internal auditor provides the governing body with a report on internal audit activity in the institution at least once each year. The report includes the internal auditor’s independent opinion on the adequacy and effectiveness of the Institution’s system of risk management, controls and governance processes.

The external auditor undertakes the annual financial statements audit and reports findings back to the committee. Both the internal and external auditors are key components of the Audit & Risk management process and are key areas of responsibility for the committee.

Review of effectiveness

The principal has responsibility for reviewing the effectiveness of the system of internal control. His review of the effectiveness of the system of internal control is informed by:

• the work of the internal auditor;
• the work of the executive managers within the Institution, who have responsibility for the development and maintenance of the internal control framework; and
• comments made by the Institution’s financial statements auditor and WG’s auditor in their management letters and other reports. 

The principal has been advised on the implications of the result of their review of the effectiveness of the system of internal control by the Audit and Risk Management committee, which oversees the work of the internal auditor, and a plan to address weaknesses and ensure continuous improvement of the system is in place.

The senior management team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms, which are embedded within the departments and reinforced by risk awareness training. The senior management team and the Audit and Risk Management committee also receive regular reports from internal audit, which include recommendations for improvement. The Audit and Risk Management committee’s role in this area is confined to a high-level review of the arrangements for internal control. The Board’s agenda includes a regular item for consideration of risk and control and receives reports thereon from the senior management team and the Audit and Risk Management committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its December 2025 meeting, the Board will carry out the annual assessment for the year ended 31 July 2025, by considering documentation from the senior management team and internal audit, and taking account of events since 31 July 2025.

Based on the advice of the Audit and Risk Management Committee and the Principal, the Board is of the opinion that the Company has an adequate and effective framework for governance, risk management and control, and has fulfilled its statutory responsibility for “the effective and efficient use of resources, the solvency of the institution and the body and the safeguarding of their assets”.

Going concern

The activities of the College, together with the factors likely to affect its future development and performance are set out in the Strategic Report. The financial position of the College, its cash flow, liquidity and borrowings are presented in the Financial Statements and accompanying notes.

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements. After reviewing these forecasts, the Directors are of the opinion that, taking account of severe but plausible downsides, including the anticipated impact of the cost of living, pay, changes in funding, the College will have sufficient funds to meet its liabilities as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period). 

Consequently, the directors are confident that the College has adequate resources to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore continue to adopt the going concern basis in preparing the financial statements.

Training and Development – Board of Directors and Heads of Governance

- Prevent training in conjunction with the UWTSD Council in September 2023.

-  Colegau Cymru online training on ALN and FE Finances 

-  All directors and the Clerk undertook online training in : Safeguarding; Prevent and GDPR.

External Review – Governance 

An external review of Governance is undertaken at least once every 3 years. The last review was carried out by the Internal Audit Team – Mazars LLP - in February 2025. 

By order of the Board

…………………………

Mr John Edge                            

Director

Date: 11th December 2025

We have audited the financial statements of Coleg Ceredigion (“the College”) for the year ended 31 July 2025 which comprise the Statement of Comprehensive Income, Statement of Changes in Reserves, Balance Sheet, Cash Flow Statement and related notes, including the including the Statement of Principal Accounting Policies and Estimation Techniques.  

In our opinion the financial statements: 

• give a true and fair view of the state of the College’s affairs as at 31 July 2025 and of its surplus for the year then ended;
• have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and
• have been prepared in accordance with the requirements of the Companies Act 2006. 

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the College in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. 

The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the College or to cease its operations, and as they have concluded that the College’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the Directors’ conclusions, we considered the inherent risks to the College’s business model and analysed how those risks might affect the College’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

• we consider that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; and
• we have not identified, and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the College’s ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the College will continue in operation. 

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of Directors, the Audit and Risk Management Committee, as well as whether they have knowledge of any actual, suspected or alleged fraud.
• Reading Board of Directors and Audit and Risk Management Committee meeting minutes.
• Using analytical procedures to identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. 

As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk  that management may be in a position to make inappropriate accounting entries. On this audit we did not identify a fraud risk related to revenue recognition due to the non-complex revenue recognition criteria, which limits the opportunity to fraudulently manipulate revenue.

We did not identify any additional fraud risks.

We also performed procedures including: 

Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included journals with unexpected account pairings with cash and journals posted to seldom used accounts

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the Directors and other management (as required by auditing standards), and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations.  

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.  

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the College is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation and further education related legislation, including the Accounts Direction for Further Education Colleges in Wales issued by Medr), distributable profits legislation and pensions legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.  

Secondly, the College is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation.  We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, and employment law recognising the nature of the College’s activities.  Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.  

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

The Directors are responsible for the other information, which comprises the Public Benefit Statement, Strategic Report, Directors’ Report, and the Statement of Corporate Governance and Internal Control–Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: 

• we have not identified material misstatements in the other information; 

• in our opinion the information given in the Strategic Report and the Directors’ Report for the financial year is consistent with the financial statements; and

• in our opinion those reports have been prepared in accordance with the Companies Act 2006.

Under the Companies Act 2006 we are required to report to you if, in our opinion:  

• adequate accounting records have not been kept by the College, or returns adequate for our audit have not been received from branches not visited by us; or 
• the College financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or 
• we have not received all the information and explanations we require for our audit.  

We have nothing to report in these respects.  

As explained more fully in their statement set out on page 17, the Directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the College’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so. 

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

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. 

We are required to report on the following matters under the Further Education Audit Code of Practice 2015 (effective 1 August 2014) (“the Audit Code of Practice”) issued by the Welsh Government under the Learning and Skills Act 2000.

The regulation of the Welsh Further Education sector was transferred from the Welsh Government to Medr, the Commission for Tertiary Education and Research on 1 August 2024. The Audit Code of Practice and Financial Memorandum issued by the Welsh Government remain in place at the date of our report. In view of this transfer, any reference to the Welsh Government in our report should be read as also referring to Medr.

In our opinion, in all material respects:

• monies expended out of Welsh Government grants and other funds from whatever source administered by the College for specific purposes have been properly applied to those purposes and, if appropriate, managed in compliance with all relevant legislation;
• funding received from the Welsh Government (and other bodies and restricted funds where appropriate) has been applied in accordance with the Financial Memorandum between the Welsh Government and further education institutions; and
• the financial statements meet the requirements of the Accounts Direction for Further Education Colleges in Wales 2024/25 issued by Medr.

This report is made solely to the College’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and paragraph 56(b) of the College’s Articles of Association.  Our audit work has been undertaken so that we might state to the College’s members those matters we are required to state to them in an auditor’s report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and the College’s members, as a body, for our audit work, for this report, or for the opinions we have formed.  

Rees Batley (Senior Statutory Auditor) 

for and on behalf of KPMG LLP, Statutory Auditor 

Chartered Accountants 

66 Queen Square

Bristol

BS1 4BE

DATE: 

All amounts are derived from continuing operations.

The accompanying notes on pages 34-53 form part of the financial statements.

The accompanying notes on pages 34-53 form part of the financial statements.

The financial statements on pages 30 to 53 were approved and authorised for issue by the Board on the 11h December 2025 and were signed on its behalf on that date by:

Chair:                     Director:   

Date : 11th December 2025                             Date: 11th December 2025

Mr John Edge                                  Mrs Vanessa Cashmore

Company registration no.: 08725643

Charity registration no.: 154557

The accompanying notes form part of the financial statements.

These financial statements have been prepared in accordance with the Companies Act, the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (the 2019 FE HE SORP), the Accounts Direction for Further Education Colleges in Wales 2024/25 and in accordance with Financial Reporting Standard 102 - “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (FRS 102). The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the College’s accounting policies.

The financial statements are prepared in accordance with the historical cost convention as modified by the use of previous valuations as deemed cost at transition to FRS 102 for certain non-current assets. The accounting rules set out below have been applied consistently.

The activities of the College, together with the factors likely to affect its future development and performance are set out in the Strategic Report. The financial position of the College, its cash flow, liquidity and borrowings are presented in the Financial Statements and accompanying notes.

Total net assets were £3,226k as at 31 July 2025. The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval      of these financial statements. After reviewing these forecasts, the Directors are of the opinion that, taking account of severe but plausible downsides, including the anticipated impact of the cost of living, pay, changes in funding, the College will have sufficient funds to meet its liabilities as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period). Consequently, the Directors have prepared the financial statements on a going concern basis.

Government revenue grants include funding body recurrent grants and other grants and are accounted for under the accrual model as permitted by FRS 102. Funding body recurrent grants are measured in line with amounts received in year. Any under or over achievement is estimated, adjusted for and reflected in the level of recurrent grant recognised in the income and expenditure account.

Grants (including research grants) from non-government sources are recognised in income when the College is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.

Government capital grants are capitalised, held as deferred income and recognised in income over the expected useful life of the asset, under the accrual method as permitted by FRS 102. Other capital grants are recognised in income when the College is entitled to the funds subject to any performance related conditions being met.

Income from tuition fees is stated gross of any expenditure which is not a discount and is recognised in the period for which it is received.

Income from contracts and other services rendered is included to the extent of the completion of the contract or service concerned.  This is generally equivalent to the sum of the relevant expenditure incurred during the year and any related contributions towards overhead costs

All income from short-term deposits is credited to the income and expenditure account in the period in which it is earned on a receivable basis.

Post-employment benefits to employees of the College are principally provided by the Teachers’ Pension Scheme (TPS) and the Local Government Pension Scheme (LGPS). These are defined benefit plans, which are externally funded and contracted out of the State Second Pension.

The TPS is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions over employees’ working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method. The TPS is a multi-employer scheme and the College is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution plan and the contributions recognised as an expense in the income statement in the periods during which services are rendered by employees.

The LGPS is a funded scheme. The assets of the LGPS are measured using closing fair values. LGPS liabilities are measured using the projected unit credit method and discounted at the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Comprehensive Income and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other comprehensive income. Actuarial gains and losses are recognised immediately in other comprehensive income. Where the   calculation results in a net asset, recognition of the asset is limited to the extent to which the College is able to recover the surplus, either through reduced contributions in the future or through refunds from the plan, and as such, the asset ceiling has been applied reducing the surplus to NIL.

Short term employment benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.

The actual cost of any enhanced ongoing pension to a former member of staff is paid by the college annually. An estimate of the expected future cost of any enhancement to the ongoing pension of a former member of staff is charged in full to the College’s income in the year that the member of staff retires. In subsequent years a charge is made to provisions in the balance sheet using the enhanced pension spreadsheet provided by the funding bodies.

Tangible fixed assets are stated at cost / deemed cost less accumulated depreciation and accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to the 2015 FE HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Land and buildings

Freehold buildings are depreciated on a straight-line basis over their expected useful lives of 50 years. Freehold land is not depreciated. Where land and buildings are acquired with the aid of specific grants, they are capitalised and depreciated as above. Further building improvements have historically been depreciated over 10 years or over the useful economic life of the asset.  The related grants are credited to a deferred income account within creditors, and are released to the income and expenditure account over the expected useful economic life of the related asset on a systematic basis consistent with the depreciation policy. The deferred income is allocated between creditors due within one year and those due after more than one year.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any fixed asset may not be recoverable.

On adoption of FRS 102, the College followed the transitional provision to retain the book value of land and buildings, which were revalued in 1996, as deemed cost but not to adopt a policy of revaluations of these properties in the future.

Assets under construction

Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs, incurred to 31 July. They are not depreciated until they are brought into use.

Subsequent expenditure on existing fixed assets

Where significant expenditure is incurred on tangible fixed assets after initial purchase it is charged to income in the period it is incurred, unless it increases the future benefits to the College, in which case it is capitalised and depreciated on the relevant basis.

Equipment

Equipment costing less than £3,000 per individual item is written off to the income and expenditure account in the period of acquisition. Grouped items, which are in aggregate above the threshold but individually under, will be reviewed specifically to determine the approach. Capitalised equipment is depreciated on a straight-line basis over its remaining useful economic life as follows:

• General equipment 5% - 25% per annum
• Computer equipment 20% - 33% per annum
• Fixtures and fittings 10% - 25% per annum

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Leasing agreements which transfer to the College substantially all the benefits and risks of ownership of an asset are treated as finance leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charges are allocated over the period of the lease in proportion to the capital element outstanding.

Inventories are stated at the lower of their cost and net realisable value, being selling price less costs to complete and sell. Where necessary, provision is made for obsolete, slow-moving and defective items.

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.  

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. An investment qualifies as a cash equivalent when it has maturity of three months or less from the date of acquisition

Financial assets, liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations, rather than the financial instrument’s legal form.

Any loans, investments and short-term deposits held by the College are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost). FRS 102 requires that basic financial instruments are subsequently measured at amortised cost. 

Transactions denominated in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the end of the financial period with all resulting exchange differences being taken to income in the period in which they arise.

The College is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by sections 478-488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The College is partially exempt in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs and added to the cost of tangible fixed assets as appropriate, where the inputs themselves are tangible fixed assets by nature.

Provisions are recognised when the College has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in the statement of comprehensive income in the period it arises.

A contingent liability arises from a past event that gives the College a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the College. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

Contingent liabilities are not recognised in the balance sheet but are disclosed in the notes to the financial statements.

The College acts as an agent in the collection and payment of discretionary support funds. Related payments received from the funding bodies and subsequent disbursements to students are excluded from the income and expenditure of the College where the College is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

In preparing these financial statements, management have made the following judgements:

• Determine whether there are indicators of impairment of the College’s tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Other key sources of estimation uncertainty

• Local Government Pension Scheme

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 16, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 July 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Where the calculation results in a net asset, recognition is limited to the extent to which the college is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. The directors have assessed that the Company is not able to recover the surplus through either reduced future contributions or through refunds from the plan, and as such, the asset ceiling has been applied reducing the surplus to NIL.

The average number of persons (including key management personal) employed by the College during the year, described as full-time equivalents, was:

Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. Key management personnel, represent  members of the management team with salaries exceeding £60,000 per annum.

Number of Key management personnel, Accounting Officer and other higher paid staff

The number of key management personnel and other staff who received annual emoluments, excluding pension contributions but including benefits in kind, in the following ranges was:

Key management personnel emoluments are made up as follows: -

£350,000 was recharged by Coleg Sir Gar to recover an element of the Principal, Vice Principals and Directors, who are on the payroll of Coleg Sir Gar but who’s time is spent between Coleg Sir Gar and Coleg Ceredigion. The recharge includes £57,910 towards the payment of the principal’s salary (not included in key personnel above). The principal is also the Accountable officer. Further details of the principal’s emoluments can be found in the disclosures within Coleg Sir Gar financial statements.

The highest paid staff member’s salary, as a multiple of the median of all employees pay (all full and part time staff but excluding agency workers) was 2.0. Similarly, the multiple based on all emoluments was 2.1

Severance Payments

There were no severance payments during the year. (2024:£22,000)

    Any amounts owed by group undertaking are repayable on demand and interest free.

The ultimate parent undertaking and controlling party is the University of Wales: Trinity Saint David, a Higher Education Corporation. The results of the Company have been incorporated in the University of Wales: Trinity Saint David consolidated financial statements, which form the largest and smallest group for which the Company’s statements are consolidated, copies of which are obtained from the following address: 

University of Wales: Trinity Saint David

Carmarthen Campus
Carmarthen
SA31 3EP

The enhanced pension provision relates to the cost of staff that have already left the College’s employ and commitments for re-organisation costs from which the College cannot reasonably withdraw at the balance sheet date. This provision has been recalculated in accordance with guidance issued by the funding bodies.

The principal assumptions for this calculation are:

At 31 July the College had minimum lease payments under non-cancellable operating leases as follows:

The College’s employees belong to two principal post-employment benefit plans: The Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Dyfed Pension Scheme (LGPS) for non-teaching staff, which is managed by Mercer Limited.  Both are multi­ employer defined-benefit plans.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest formal actuarial valuation of the TPS was 31 March 2020 and of the LGPS 31 March 2022.

Contributions amounting to £69,000 (2024: £60,000) were payable to the TPS scheme and

£Nil (2024: £Nil) were payable to the LGPS scheme at the year-end and are included in creditors.
 

TPS (Teachers Pension Scheme)

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014.  These regulations apply to teachers in schools, colleges and other educational establishments.  Membership is automatic for teachers and lecturers at eligible institutions. Teachers and lecturers are able to opt out of the TPS.

The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act. Retirement and other pension benefits are paid by public funds provided by Parliament.

Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The college is unable to identify its share of the underlying assets and liabilities of the plan.

Accordingly, the college has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The college has set out above the information available on the plan and the implications for the college in terms of the anticipated contribution rates.

The valuation of the TPS is carried out in line with regulations made under the Public Service Pension Act 2013. Valuations credit the teachers’ pension account with a real rate of return assuming funds are invested in notional investments that produce that real rate of return.

The latest actuarial review of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education (the Department) in October 2023. The valuation reported total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service at the effective date of £262 billion, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222 billion giving a notional past service deficit of £40 billion (compared to £22 billion in the 2016 valuation)

As a result of the valuation, new employer contribution rates rose to 28.68% from April 2024.

A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website.

The pension costs paid to TPS in the year amounted to £625,000 (2024: £499,000)

Local Government Pension Scheme

The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Carmarthenshire Local Authority. The total contribution made for the year ended 31 July 2025 was £311,000, of which employer’s contributions totaled £241,000 and employees’ contributions totaled £70,000.

The last full actuarial valuation was performed on 31 March 2022 at which date the market value of assets of the scheme was £3,243 million.  The actuarial value of the assets represented 113 % of the fund’s accrued liabilities after allowing for future increases in earnings. This equates to a surplus of £372m.

The funding objective as set out by the FSS is to achieve and maintain a solvency funding level of 100 % of liabilities. In line with the FSS, where a shortfall exists at the effective date of the valuation a deficit recovery plan will be put in place which requires additional contributions to correct the shortfall. The directors have assessed that the Company is not able to recover the surplus through either reduced future contributions or through refunds from the plan, and as such, the asset ceiling has been applied reducing the surplus to NIL. At this valuation, the average recovery period for employers in deficit is 9 years and for employers in surplus 14 years (subject to the surplus buffer).

The agreed contribution rate for the College year commencing 1 April 2025 remained at 20.2%. The next scheme valuation will be on the 31st March 2025 with new contribution rates applicable from April 2026.

The Contribution Banding Arrangement for the MAIN Section of the Scheme for the period from 1 April 2025 to 31 March 2026 is as below:

Principal Actuarial Assumptions

The following information is based upon a full actuarial valuation of the fund at 31 March 2022 updated to 31 July 2025 by a qualified independent actuary.

Post Retirement Mortality assumptions

Beginning of period:

- Non-retired members SAPS4 CMI 23 (1.50%) (103 % males,97 % females)

- Retired Members SAPS4 CMI 23 (1.50%) (100%males, 97% Females

End of period:

- Non-retired members SAPS4 CMI 24 (1.50% (115% males ,104% females)

- Retired members SAPS4 CMI 24 (1.50%) (109% males, 103% females)

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

The College’s share of the assets in the plan and the expected rates of return were:

The following amounts at 31 July 2025 and 31 July 2024 were measured in accordance with the requirements of FRS 102 (note that IAS 19 has been used to calculate the value of pension surplus to be recognised on the balance sheet which concluded that the surplus should be restricted to NIL) – see LGPS policy under policies on page 34 for more detail:

     Effect of asset ceiling (5,315)                (2,967)

     Recognised pension asset/(liability)                                                                   -                           -

    Present Value of unfunded liability                                                       20        21

    Recognised unfunded pension liability                                                         20           -

Amounts recognised in the Statement of Comprehensive Income in respect of the plan are as

During the current period, an adjustment was also recognised within Other Comprehensive Income related to the unfunded pension liability of £21k.

Asset and liability reconciliation

Reconciliation of assets

Reconciliation of asset ceiling                                                  £’000

Sensitivity Analysis
 

On 25 July 2024, the Court of Appeal dismissed the appeal in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others. The appeal was brought by Virgin Media Ltd against aspects of the High Court’s ruling handed down in June 2023 relating to the validity of certain historical pension changes due to the lack of actuarial confirmation required by law. The Court of Appeal upheld the High Court’s ruling. The ruling may have implications for other UK defined benefit plans. It is understood this may or may not apply to the LGPS and HM Treasury is currently assessing the implications for all public service pension schemes. No further information is available at this stage.”

Owing to the nature of the College’s operations and the composition of the board of governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of governors may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the College’s financial regulations and normal procurement procedures.

The total expenses paid to or on behalf of the Governors during the year was £Nil; 4 governors (2024: £Nil; 4 governors). This represents travel and subsistence expenses and other out of pocket expenses incurred in attending Governor meetings and charity events in their official capacity.

No Governor has received any remuneration or waived payments from the College or its subsidiaries during the year (2024: None).

The following transactions were undertaken during the year and balances held with related parties at the year-end:

University of Wales: Trinity Saint David - Parent

Receivable £Nil (2024 £Nil)     Payable £Nil (2024 £Nil)

Total Income for the year £67 (2024 £60)          

Total Purchases for the year £Nil (2024 £Nil)

Coleg Sir Gar - Group Member

Receivable £Nil (2024 £Nil)   Payable £Nil (2024 £Nil)

Total Income for the year £18,700 (2024 £28,870) 

Total Purchases for the year £Nil (2024 £Nil)

 Fforwm Services Limited 

 Total income for the year £47,631 (2024 £23,505)

 Total purchases for the year £Nil (2024 £Nil)

Note: Transactions for group companies are for services rendered during the year

Funding body grants are available solely for students. In the majority of instances, the College only acts as a paying agent. In these circumstances, the grants and related disbursements are therefore excluded from the Statement of Comprehensive Income.

The movement in capital grants is as follows: