Annual Financial Report 2025 - Coleg Sir Gâr

In 1992, Parliament passed the Further and Higher Education Act as a result of which all former institutions of further education (where the total full-time, block release and part-time day release student enrolments in the 1990 FESR amounted to at least 15 per cent of the College’s student load) and all existing sixth form institutions were incorporated into a new sector.  The College was incorporated on 30 September 1992, although the Corporation did not become an independent Institution until 1 April 1993 (vesting day). 

On 1 August 2013 the Coleg Sir Gâr 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 Sir Gâr Company. The Coleg Sir Gâr (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 Sir Gâr company is a wholly owned subsidiary of University of Wales: Trinity Saint David. 

On the 1 August 2017, Coleg Ceredigion became a wholly owned subsidiary of Coleg Sir Gâr, having formerly been a direct subsidiary of the ultimate parent company University of Wales: Trinity Saint David.

Coleg Sir Gâr is a large, multi-site, Further Education College based in South West Wales and has five main campuses at Llanelli (Graig), Carmarthen (Pibwrlwyd and Jobs Well), Ammanford and Llandeilo (Gelli Aur). It has approximately 9,000 learners of which some 2,500 are full time and over 6,000 are part time. There are approximately 600 higher education learners. The College has a comprehensive and broad range of academic and vocational education and training programmes that range from pre-entry to graduate level, providing a service to the whole learning community.  The principal activities of the College are further education, higher education, work-based learning, 14-19 school provision, professional training, consultancy and the delivery of Government initiatives to industry.  The College also offers its provision online, via partnerships at community locations and in the workplace. 

Campuses vary in size and nature and offer a variety of subjects.  The College has an annual turnover of around £52 m and employs circa 640 staff. Of these, 313 are directly involved in teaching and 327 in support and administrative functions

Carmarthenshire is a predominantly rural county with a chain of market towns providing the focus of activity. Carmarthen is the county town with a strong retail sector and relatively large local government, health and administration population. 

The south east of the county has historically been associated with heavy industry and is the most densely populated part of the county, with Llanelli being the largest settlement. Whilst some large key employers remain in this part of the county, the economy has sought to diversify into light engineering and new technology industries.   

The Index of Deprivation shows that there are concentrated areas of educational deprivation, employment deprivation and, consequently, multiple deprivation in South West Wales.  Carmarthenshire has proportionally higher levels of inactive individuals in comparison to Wales and the UK.

• 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 34. The highlights for the period in relation to these are detailed below. 

• Total income for the period has remained relatively stable at circa £52m (2024: £46m).  Maintaining a significant level of turnover reflects the continued success of the College at delivering education. Fluctuations in turnover are inevitable, and can be greatly influenced by the level of project work undertaken.
• Staff costs (excluding exceptional costs) as a percentage of total income have remained relatively stable at 53.0 % (2024: 54 %). The average number of staff employed remained relatively constant. Other operating expenses increased as a percentage of total income from 40% to 43%, primarily driven by high inflationary pressures.
• The surplus for the year was £ 410,000 (2024: £710,000 surplus), post FRS 102 non cash adjustments of a positive £ 230,000 ( 2024 : £ 619,000 positive) . The operating deficit (pre FRS 102 non cash adjustments) was £ 180,000 ( 2024 : £ 91,000 surplus).
• The liquidity position remains satisfactory, with the ratio of short-term assets to creditors falling due within one year standing at 2.9 (2024: 2.6).
• Net assets have reduced slightly from £ 30.4 million to a £ 30.1 million.  Net assets, excluding defined benefit obligations have increased from £30.4 million to £30.6 million as the asset ceiling was applied to the pension reducing the unfunded liability amount only - £0.5 m. 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 38.
• 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 £477,000 (2024: £530,000).

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 negative amount of £ 1.5 m. Overall cash balances decreased by £ 1.27 m (from £15.1 m to £13.9 m). This was in the main driven by a delay in receiving grant funding for capital investment costs. 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 2 months expenditure (circa £ 8 m) 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 Welsh Government’s 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 representative bodies, Coleg Cymraeg Cenedlaethol, 14-19 networks, ACL colleagues, University of Wales: Trinity Saint David, industry, business and local employers.  This is supplemented using skills observatory data provided through the RLSP.  

The College Curriculum and Quality team report to the Board’s Committee for Learners 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 challenges in 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 1 August 2013, the College became part of the University of Wales: Trinity Saint David Group, maximising opportunities for learners and sharing information, expertise and resources. In a similar vein, Coleg Ceredigion became a subsidiary of Coleg Sir Gâr on the 1st August 2017.
• Through partnerships within the education authority and with local partner schools (over 16 schools), the breadth and volume of vocational opportunities for 14-19 school pupils is significant.
• Education and employer links are excellent and include the College’s longstanding collaboration with CYFLE.
• The college works extensively in delivering provision collaboratively with TLC - the training and learning company.
• The college is working closely with a range of employers, eg, Dŵr Cymru, Owens Group, Thermal Earth, COTS, TRJ, Prince’s Gate, CM-Days, Ron Skinner & Son, Castell Howell, the AA, Serco, Remploy, Hywel Dda, e- Careers, 4DAcademy etc.
• The College has made a significant contribution to the South West Wales Regional Learning and Skills Partnership and to the Public Service Board.
• Very good partnerships exist with Pembrokeshire College, other FE colleges and a number of other private training providers in the delivery of Work Based Learning (WBL) through the B-WBL Consortium.
• Long standing relationships are continuing with Carmarthenshire County Council in the delivery of Adult and Community Learning.
• Close working relationships exist with the LEA Youth Service and local schools to offer support and courses to learners who are at risk of becoming NEET (Not in Employment, Education or Training).
• Excellent partnership working has been achieved with the Scarlets, National Botanical Gardens Wales and Aberglasney Gardens, some of which act as centres for delivery.
• The College is well represented by members of the executive and College management team on a range of national networks; Regional Learning and Skills Partnership; Adult and Community Learning; 14-19 Networks; Colegau Cymru and Welsh Government.
• Excellent sporting academies in rugby, football and netball provide opportunities for learners at elite levels. These opportunities have resulted from working partnerships with the Welsh Rugby Union; Scarlets; FAW; the Welsh Netball Association, etc.

*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.

Although there were no major building projects or acquisitions during the year, there has been a significant amount capital investment in relation to buildings maintenance, plant, equipment and IT expedited at the college during 2024/25.  

The College sees a strong future for itself as part of the merged University of Wales: Trinity Saint David (“UWTSD”) group and has made a commitment to continuing to offer a strong further education provision across the county.

A number of key challenges face the College over the next few years, including:

• Improving learner outcomes
• Developing the college as a centre of excellence for teaching and learning
• Meeting the challenges of ‘Digital 2030’
• Meeting the requirements of the ALN Bill
• The development of the Welsh Baccalaureate Qualification at Level 3
• Developing more Welsh medium provision
• Maintaining a diversified curriculum portfolio across a range of sectors
• Developing more commercial training
• Developing strategies to cope with pressures in public funding
• Improving, rationalising and developing its estate in partnership with UWTSD and the County Council
• Driving the sustainability agenda on a limited budget 

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 Ceredigion 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 pressure 

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 is pleased to 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 £180,000 surplus (24/25: £92,000 surplus). The surplus for the year after defined benefit obligation costs is £ 873,000 (surplus of £710,000 in 24/25), with non-cash adjustments being an unusual positive benefit of £693,000 (24/25: £618,000 positive adjustment). 

Student numbers remained relatively buoyant for the year, with total FE full time numbers remaining higher than in prior years.

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 target set by the Treasury for payment to suppliers within 30 days is 95 per cent. The College’s performance in paying its suppliers during the year to 31 July 2025 was as follows:-

The College incurred no interest charges under The Late Payment of Commercial Debts (Interest) Act 1998. Moving forward, to improve invoice timeliness, the Finance Department will begin closely tracking the college’s payment performance and addressing any issues that arise.

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. In 24/25, the college saw completion of the “Arches” building, a state-of-the-art facility to showcase and teach net carbon zero and general sustainability courses – lead by our Green Skills Academy team. The fully funded facility cost just over £600,000. Work also commenced on a new slurry storage facility on our working farm at Gelli Aur (estimated at circa £ 250,000).

The college is also working with Welsh Government on a major project to redevelop our site at Pibwrlwyd. We are in an early part of the process, but firmly on our way to secure funding via the “Mutual Investment Model” initiative. Updates will be provided as we progress.

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 (and prior year)  : 
 

We have followed the 2019 HM Government Environmental Reporting guidelines. We have also used the GHG Reporting Protocol  - Corporate Standard and have used the 2025 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. Solar panels have been installed on 3 of our largest campuses which significantly reduces purchased electricity. 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 all our campuses.

The Board of Directors have a duty to promote the success of the Group for the benefit of its members as a whole having regards to the interests of our stakeholders ( no shareholders as the company is limited by guarantee) , our students, Welsh Government, our clients, our employees, our relationships with our suppliers and the impact of our operations on the communities in which we operate, and to ensure that we maintain a reputation for high standards of quality, care and business conduct.

Our key stakeholders are our students, Welsh Government, our clients, local businesses, our employees and the communities within which we operate. Our suppliers and regulators are also important stakeholder groups. All key Board decisions consider the impact on relevant stakeholders. Increasingly, stakeholders are looking to understand our performance across multiple areas from performance to services, community engagement, innovation, governance, 

workplace practices and corporate citizenship. The Board endeavours to gain an understanding of the perceptions and attitudes of each stakeholder group and the weight they give to different issues. Where the views of different stakeholder groups do not align, the Board must decide on the best course of action to promote the company’s long-term success.

Our students are at the heart of our business and operations. We aim to deliver the best possible standards of education and training as well as a safe, exciting and modern environment to study within coupled with the best possible experience during their time at the college.

As a service organisation, our employees are key to our business. We want our employees to feel engaged and empowered to deliver great outcomes for our students and indeed all our stakeholders. Staff wellbeing is particularly important to the college and as such   we have a college wellbeing manager in post to specifically address both the student and staff wellbeing agenda. There are significant support mechanisms within the college to deal with any concerns that staff may have, and there is regular opportunity for supported professional development open to all who wish to apply. The college works closely with all staff unions to ensure the needs and concerns of staff are addressed and prides itself on having a very strong, collaborative and mutually beneficial relationship in this regard. Staff members also have a representative on the Board of Directors. 

The college, being a Further Education Institution, works very closely with Welsh Government who are the principal funding body for the majority of the college grant income. Regular qualitative and financial reports are submitted regularly and success is dependent on an open, robust and reciprocal relationship.

The college as a company and charity, also reports via Companies House and the Charity commission.

A strong relationship with Suppliers is essential to ensure the continuity of our operations and thus our ability to service our stakeholders to the highest possible standards. This would include suppliers of product and services across our 5 campuses.  We aim to treat our suppliers fairly and pay them within agreed timescales, if not sooner, and always conduct ourselves professionally and to the highest possible standards. We work closely with our suppliers to ensure that they have effective controls in place to protect our students (and stakeholders if applicable) ‘health and safety’ and the security and privacy of their data.

We play an active role in the communities in which we operate and take care of the environment. We evaluate the business risks and opportunities associated with climate change, closely managing our environmental impact and actively promoting positive environmental practices.

The company continues to keep employees informed of matters affecting them and the financial and economic factors affecting the performance of the company. This is achieved through consultations/training sessions, a staff gateway which is continually updated, email, newsletters and social media. Applications for employment by disabled persons are given full and fair consideration. 

In the event of employees becoming disabled and being unable to continue within the existing role, every effort is made to retrain them in order that their employment with the college may continue. It is the policy of the company that training, career development and promotion opportunities should be available to all employees at all times.

Neither the Company nor its subsidiary made any political donations or incurred any political expenditure during the period (2024 – donations £nil).

An indication of likely future developments in the business and particulars of significant events which have occurred since the end of the financial year have been included in the Strategic Report on pages 4 – 16.

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.

This report was approved by the Board on the 11thh December 2025 and was signed on behalf of the Board by:

Mr John Edge                 Registered Address: Graig Campus, Sandy Road, Pwll, Llanelli. SA15 4DN 

Director

Date: 11th December 2025

The members of the Board of Directors are listed on page 17. 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.

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  MEDR / 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. 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.

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 Sir Gâr 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 Sir Gâr 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 Sir Gâr 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.

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 MEDR/ 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 carried 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 pay inflation and changes in funding arrangements, 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.

Training and Development – Board of Directors and Heads of Governance

• Colegau Cymru online training on Cymraeg 2050, Risk Management, Anti-Racism and Work Based Learning
•   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 March 2025.  

By order of the Board

Mr John Edge                             

Director

Date: 11th December 2025

We have audited the financial statements of Coleg Sir Gâr (“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 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 are an integral part of the Financial Statements

The financial statements on pages 34 to 65 were approved and authorised for issue by the Board on the 11th 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.: 8539630

Charity registration no.: 1152522

Coleg Sir Gâr is a company limited by guarantee and incorporated and domiciled in the United Kingdom.

These financial statements have been prepared in accordance with the Companies Act as adapted to the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (the 2019 FE HE SORP), in accordance with Financial Reporting Standard 102 – “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (FRS 102), the Companies Act 2006 and with the applicable Medr Accounts Direction. Coleg Sir Gâr 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 FRS102 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 of certain fixed assets as deemed cost at transition to FRS 102 as at 1 August 2014. The accounting rules set out below have been applied consistently.

The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare group financial statements.  These financial statements present information about the Company as an individual undertaking and not about its group.

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 pay inflation and changes in funding arrangements, 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. The recurrent grants from Welsh Government represent the funding allocations attributable to the current financial year and are credited direct to the income and expenditure account.  Recurrent grants are recognised in line with planned activity. Any under-achievement against this planned activity is adjusted in-year and reflected in the level of recurrent grant recognised in the income and expenditure account.

Income from tuition fees is stated gross and recognised in the period for which it is received and includes all fees payable by students or their sponsors. Where the amount of tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

Income from Grants, 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.

Donations with restrictions are recognised when relevant conditions have been met; in many cases recognition is directly related to expenditure incurred on specific purposes. Donations which are to be retained for the benefit of the institution are recognised in endowments; other donations are recognised by inclusion as other income in the income and expenditure account.

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

Non-recurrent grants from the Welsh Government or other government bodies received in respect of the acquisition or construction of fixed assets are treated as deferred capital grants and amortised in line with depreciation over the life of the assets under the accrual method as permitted by FRS 102.

Income from the sale of goods or services is credited to the income and expenditure account when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.

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

The TPS is an unfunded scheme. Contributions to the TPS are charged to the income and expenditure 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 quinquennial 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 liability. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to 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 as an actuarial movement in other comprehensive income.  Actuarial gains and losses on liabilities are also recognised immediately in other comprehensive income. 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.

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 and expenditure account 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.

(a) Land and buildings

Freehold buildings are depreciated over their expected useful economic life to the College of between ten and fifty years.  Leasehold land and buildings are depreciated over 50 years or, if shorter, the period of the lease. Freehold land is not depreciated. 

Where land and buildings are acquired with the aid of specific grants, they are capitalised and depreciated as above.  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 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.

Assets in the course of construction are not depreciated until the College has full use of the asset, at which time they are depreciated in accordance with the policy stated above.

Finance costs, which are directly attributable to the construction of land and buildings, are not capitalised as part of the cost of those assets.

On adoption of FRS 102, the College followed the transitional provision to retain the book value of land and buildings, which were revalued in 1998, as deemed cost but not to adopt a policy of revaluations of these properties in the future. 

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. An annual review of impairment indicators is carried out annually at the financial statement reporting date.

(b) Equipment (including fixtures and fittings)

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.  All other equipment is capitalised at purchase cost.  Equipment inherited from the Local Education Authority has not been included in the balance sheet, as it was their policy to charge the full purchase cost of the asset to the income and expenditure account in the year of acquisition.

Equipment is depreciated over its useful economic life as follows:

General equipment    5% - 25 % per annum

Computer equipment 20% -    33 % per annum

Fixtures and fittings 10% - 25 % per annum

Where equipment is acquired with the aid of specific grants it is capitalised and depreciated in accordance with the above policy. 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 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.

The College has acquired a number of milk quotas for use in conjunction with the College’s farming activities. The cost of the milk quotas has been classified as an intangible fixed asset. Milk quotas are amortised over a 10 year period on a straight-line basis.

Costs in respect of operating leases are charged on a straight line basis over the lease term. Any lease premiums or incentives relating to leases signed after 1st August 2014 are spread over the minimum lease term. The College has taken advantage of the transitional exemptions in FRS 102, and has retained the policy of spreading lease premiums and incentives to the date of the first market rent review for leases signed before 1st August 2014.

Leasing agreements which transfer to the College substantially all of the risks and rewards of ownership of an asset are treated as if the asset had been purchased outright. These are capitalised at their fair value at the inception of the lease, and depreciated over the shorter of the lease term or the useful economic lives of equivalently owned assets. The capital element outstanding is shown as obligations under finance leases.

The finance charges are allocated over the period of the lease in proportion to the capital element outstanding. Where finance lease payments are funded in full from funding council capital equipment grants, the associated assets are designated as grant-funded assets.

Investments in subsidiaries are accounted for at cost less impairment in the financial statements.

Listed investments held as non-current assets and current asset investments, are stated at fair value, with movements recognised in Comprehensive Income. Investments that are not listed on a recognised stock exchange are carried at historical cost less any provision for impairment in their value, estimated using a valuation technique.

Stocks are stated at the lower of their cost and net realisable value. Where necessary, provision is made for obsolete, slow moving and defective stocks.

Cash 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.

The College has a ten-year rolling long-term maintenance plan which forms the basis of the ongoing maintenance of the estate.  The cost of long-term and routine corrective maintenance is charged to the income and expenditure account as incurred.

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.

All 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. Loans and investments that are payable or receivable within one year are not discounted.

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of the transactions.  Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the end of the financial period with the resulting exchange differences being taken to income or expenditure 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 to exclusively charitable purposes.

The College receives no similar exemption in respect of Value Added Tax.

The College’s subsidiary company CCTA Enterprises Ltd is subject to corporation tax and VAT in the same way as any commercial organisation.

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.

Livestock is treated as a fixed asset where it is intended for use on a continuous basis for the College’s activities.  Livestock is revalued on an annual basis with no depreciation charge being made.  The movement between successive valuations is charged or credited to the income and expenditure account.

The College acts as an agent in the collection and payment of financial contingency funds and educational maintenance allowances. Related payments received from Welsh Government and subsequent disbursements to students and institutions 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. 

Non-exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the College is entitled to the funds.  

Income is retained within the restricted reserve until such time that any donor imposed restrictions attached to the donations and endowments are met at which time the income is released to general reserves through a reserves transfer. Donations with no restrictions are recognised in income when the College is entitled to the funds.  

Investment income and movements in fair value of endowments are recorded in income in the year in which they arise and as either restricted or unrestricted income according to the terms of the restrictions applied to the individual endowment funds. 

There are three main types:

1. Unrestricted permanent endowments – the donor has specified that the fund is to be             permanently invested to generate an income stream for the general benefit of the institution
2. Restricted expendable endowments – the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the institution can convert the donated sum into income
3. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective 

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

• Determine whether there are indicators of impairment of the group’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 21, 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 personnel) employed by the College during the year, expressed as full-time equivalents, was:

Based on an average Headcount basis: 

Teaching staff                  313     286

Support Staff                   327    291       

Staff costs for the above persons:
 

The number of staff, including key management personnel (as defined in note 6), who received emoluments in the following ranges were:

A pay award of 5.5 % was approved by the Board and paid with effect from 1 August 2024 for all staff, including the Principal who received 5.5 % (2024: 0%).  For these purposes, emoluments include taxable benefits in kind but not employer pension costs. There were no staff within the £110,001 - £180,000 range.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College and are represented by the College Leadership Team which comprises the Principal, and vice principals. 

The number of key management personnel, including the Principal, was 4 (2024: 4).

Key management personnel emoluments are made up as follows:
 

The above emoluments include amounts payable to the Principal (who is also the highest paid member of the key management) of:
 

The pension contributions in respect of the Principal and other senior post-holders are in respect of employer’s contributions to the Local Government and Teachers Superannuation Schemes and are paid at the same rate as for other employees.

The Board members, other than the Principal and staff members, did not receive any payment from the College other than the reimbursement of travel and subsistence expenses of £1,105 (2024: £1,635) incurred in the course of their duties.

The Principal received a pay increase of 5.5 % in 2025 (2024: 0 %), along with other higher paid staff (including key management personnel), who received a pay increase of 5.5 % during the year (2024: 5.0%).  No additional bonuses or other salary enhancements were awarded to key management personnel or other higher paid staff (2024: nil). The Principal’s salary, as a multiple of the median of all employees pay (all full and part time staff but excluding agency workers) was 5.3 in 2025 (2024 : 5.3). Similarly, the multiple based on all emoluments was 5.7 in 2025 (2024 : 5.5). 

The remuneration of the Principal is benchmarked on typical Further Education institutions of a similar size and complexity and reflects the challenges and magnitude of the role. Coleg Sir Gâr, combined with its’ subsidiary company, Coleg Ceredigion, is a large company with a combined turnover of over £ 58 m with a staff headcount of over a 600, spilt across a very diverse area; indeed, crossing 2 counties: Carmarthenshire and Ceredigion. The task of managing the 7 sites, so widely dispersed, is complicated and challenging. 

Key performance measures would include achieving the highest possible standards of quality in terms of our teaching and learning operation whilst providing an exciting, innovative and inclusive environment for students and staff to work within, and at all times to do so within the resources provided. 

A constant challenge is to achieve efficiency of operations, combined with a drive to seek out and secure new sources of income where possible. This can only be achieved by working with all the college stakeholders, of which there are many, and ensuring a harmonious, collaborative and fair environment to all.

In addition, since the college is part of a wider group as a subsidiary of the University of Wales: Trinity Saint David, the Principal plays an important role in terms of working closely with the university to achieve mutually beneficial planned and agreed objectives, designed to create the highest level of teaching quality and learner experience whilst facilitating a lifelong learning culture and environment.

The Principal reports directly to the Board of Directors who are ultimately responsible for the performance of the college. The Directors also evaluate and assess the Principal’s effectiveness in terms of managing the college and similarly, the remuneration package for the role.

The Directors have carried out an assessment with regards the Principal’s salary and believe, that the salary is commensurate with the role at the college. To derive this conclusion, an assessment of the size, complexity, challenges and responsibility would have been undertaken, along with a benchmarking exercise of other FE colleges of similar size and complexity.

Severance Payments

The college paid 6 severance payment in the year, disclosed in the following bands : 
 

Included in staff restructuring costs is a special severance payment totalling £27,000. 

Other operating expenses include:

 

The following costs were incurred during 2025-2026 in respect of overseas activities, which were carried out in accordance with the strategy approved by the governing body:
 

Land and buildings were revalued in 1998 at depreciated replacement cost by Cooke & Arkwright, a firm of independent chartered surveyors. On adoption of FRS 102, revalued properties have been treated as deemed cost.  The analysis of cost or valuation of the tangible fixed assets as at 31 July 2025 is as follows:
 

Freehold land and buildings
 

The College’s investments are in the following subsidiaries:
 

Other non-current asset investments

 

Note: Amounts owed by group undertakings are repayable on demand and interest free. Other refers to the parent company UWTSD

Note: Amounts owed to group undertakings are repayable on demand and do not accrue interest

Finance leases

The enhanced pension provision relates to staff who have already left the College’s employ and commitments for reorganisation costs from which the College cannot reasonably withdraw at the balance sheet date. The provision has been recalculated in accordance with the latest LSC circular.

The principal assumptions for this calculation are:

The movement in capital grants is as follows:

Year ended 31st July 2025

 

Year ended 31st July 2024

 

The College’s employees belong to two principal pension schemes, the Teachers Pension Scheme (TPS) which is unfunded and the Local Government Pension Scheme (LGPS) which is funded. Both are multi-employer defined benefit plans, the assets of the schemes being held in separate trustee-administered funds.

The total pension cost for the College was:
 

There were no outstanding or prepaid contributions at either the beginning or the end of the financial year. 
 

LGPS (Local Government Pension Scheme)

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 £372 m.

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 is 19.8 % (2024: 19.8%), The next scheme valuation was on the 31st March 2025 with new contribution rates applicable from April 2026.

An actuarial valuation of the scheme was also carried out at 31 July 2025, and 31 July 2024 by a qualified independent actuary using the projected unit method.  The major assumptions used by the actuary were:

Estimated Asset allocation:

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 38 for more detail):
 

    Present Value of unfunded liability                                                        481     565        

    Recognised unfunded pension liability                                                  481      -      

The following components of the pension charge have been recognised in the Statement of Comprehensive Income for the years ended 31 July 2025 and 31 July 2024: