Annual Report 2024 - 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 £46 m and employs circa 577 staff. Of these, 286 are directly involved in teaching and 291 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 32. The highlights for the
period in relation to these are detailed below.

• Total income for the period has remained relatively stable at circa £46m (2023: £47m). 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 54.0 % (23: 54 %) . The average number of staff employed remained relatively constant. Other operating expenses increased as a percentage of total income from 39% to 40%, primarily driven by high inflationary pressures.
• The surplus for the year was £ 710,000 (2023: £437,000 loss) post FRS 102 non cash adjustments of a positive £ 619,000 ( 2023 : £ 851,000 negative) . The operating surplus ( pre FRS 102 non cash adjustments) was £ 91,000 ( 2023 : £ 414,000) .
• The liquidity position remains satisfactory, with the ratio of short-term assets to creditors falling due within one year standing at 2.6 (2023: 2.3).
• Net assets have improved from £ 30.3 million to a £ 30.4 million . Net assets, excluding defined benefit obligations have also increased from £30.3 million to £30.4 million as the asset ceiling was applied to the pension reducing the position to NIL. 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 37.
• 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 2024 has been estimated at £530,000 (2023: £542,000).

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 £ 1.8 m. Overall cash balances decreased by £ 3 m (from £18.0 m to £15 m). This was in the main driven by a repayment of unutilised grants from 22/23. 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 ( £ 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 Gar 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, Dwr 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 BWBL 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.

Note that the next section of the report that deals with quality performance, measures and statistics that reflect the combined data for both Coleg Sir Gâr and its subsidiary company Coleg Ceredigion. Coleg Sir Gâr is by far the largest proportion in terms of weighting, with a turnover of circa £ 46 m against £6 m for Coleg Ceredigion (8,500 students vs circa 1,300 students respectively). 

The College welcomed Estyn in May 2022 who undertook an inspection of its further education provision. The inspection framework covered 5 key areas: Learning; Well-being & Attitudes to Learning; Teaching & Learning Experiences; Care, Support & Guidance; and Leadership & Management. Whilst graded outcomes are no longer provided by Estyn, the overall outcome for the College was very positive. Good features identified within the report include: 

• “Most learners feel safe and well supported during their time at the college”. 
• “The college has successfully embedded a positive ethos based on the values of respect, unity and professionalism”. 
• “Most learners speak positively about their experiences at the college”. 
• “Most learners develop competent practical skills and many relate theory to practice successfully”. 
• “The college has systems in place to support learners in their understanding of how to keep safe and safeguarding”. 
• “Nearly all teachers know their learners well and foster relationships that encourage and support learners to progress”. 
• “Most teachers skilfully develop learners’ digital skills in their vocational or academic subjects”.
• “Learners demonstrate high levels of competency using digital platforms to store, record, organise and track their own learning”.
• “Where appropriate teachers support learners’ Welsh language skills by engaging them in conversation during classes”. 
• “The College has developed strong partnerships with local schools for 14-16 provision”. 
• “Across nearly all courses, learners benefit from clear progression routes to the next level or into work-based learning, higher education or employment”. 
• “The principal has set a vision that informs the college’s strategic priorities well”. 
• “Senior and middle managers show a clear understanding regarding how they support the college’s aim to deliver ‘‘inspirational learning experiences’’. 
• “During the pandemic, a particular strength of the college was its commitment to upskilling teaching and support staff to enable them to effectively support learners to develop strong digital skills and remain on their courses”. 
• “The college senior management team has been effective in improving the learning experiences and outcomes at an underperforming campus. They reacted quickly and put in place robust quality improvement procedures”. 
• “The college has comprehensive quality assurance systems and collects a wide range of data”.

Recommendations for continuous improvement include: 

1. Make better use of the extensive data the college has to further refine the evaluation of the impact of provision and initiatives. 
2. Strengthen strategies to improve learners’ understanding of radicalisation and extremism.
3. Ensure that learners’ numeracy skills and wider mathematical skills are developed fully to address their skills gaps.

Estyn Report May 2022 https://www.estyn.gov.wales/provider/f0009005

All actions have since been addressed and completed.

Further Education 

The 2022/23 Welsh Government ‘national consistent performance measures’ (CPM) for FE show completion rates in all levels of provision are at/or above the national comparator, with the exception of Level 3. Successful completion in all levels of provision are below the national comparator, with the exception of Level 1. Prioritising successful completion outcomes will be a key objective for the college this year.

*Outcomes for 2023/24 are yet to be validated and published by the Welsh Government.

Outcomes for academic qualifications are provided in the table below.

Overall outcomes in 2024 for AS (A-E) and A level (A*-E) were excellent and above the national comparator apart from the percentage of A*s awarded at A Level, which at 6% is slightly lower than the national comparator of 6.6%.

*Outcomes for 2023/24 are yet to be validated and published by the Welsh Government. 

2022/23 was a challenging year for WBL with performance dropping at apprenticeships and higher apprenticeships. However, early projection figures for 2023/24 are very encouraging.

Historically, higher education students have consistently performed well across both full-time and part-time provision. However, the 2022/23 academic year saw an unusual decline, particularly in full-time student success rates. The data for 2023/24, based on estimated outcomes, indicates a potential stabilisation, albeit not at the high levels observed in 2021/22.

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.

In 2023/24, the focus of the further education annual learner voice survey was to gauge learner perception of teaching and learning. Overall, learners’ perception in relation to their teaching and learning experiences is excellent. Improving the response rate for vocational learners will be prioritised this year.

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. Student satisfaction remains high, with an overall satisfaction rate of 85%. Despite marginal declines, satisfaction scores remain excellent and above the UWTSD and Welsh HEI averages in key categories of the survey: Learning Resources; (93%); Academic Support (91%); Assessment & Feedback (90%); Teaching (93%); and Learning Opportunities (90%).

Overall Satisfaction

Teaching

Assessment & Feedback

Academic Support

Organisation & Management

Learning Resources

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 for during 2023/24.

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 £ 92,000 surplus (22/23: £414,000 surplus). The surplus for the year after defined benefit obligation costs is £710,000 (deficit of 437,000 in 22/23), with non-cash adjustments being an unusual positive benefit of £618,000 (22/23: £851,000 negative adjustment). 

Student numbers remained relatively buoyant for the year, with total FE full time numbers slightly better 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 12th December 2024 and was signed on behalf of the board by:

Mr John Edge, Director

The members of the Board of Directors are listed on page 16. 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 2024, 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 2024 are set out in note 6 to the financial statements.

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

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

The Company’s internal auditor monitors the systems of internal control, risk management controls and governance processes in accordance with an agreed plan of input, and report their findings to management and the Audit and Risk Management committee. 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 meets 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 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 2024 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 2024 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 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 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 2024 meeting, the Board carried out the annual assessment for the year ended 31 July 2024 by considering documentation from the senior management team and internal audit, and taking account of events since 31 July 2024. 

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”.

Statement on regularity, propriety and compliance 

The Governing Body has considered its responsibility to notify the Welsh Government of material irregularity, impropriety and non-compliance with the terms and conditions of funding, under the financial memorandum and contracts in place between the College and the Welsh Government. As part of our consideration we have had due regard to the requirements of the financial memorandum and contracts with the Welsh Government. 

We confirm on behalf of the Governing Body, that after due enquiry, and to the best of our knowledge, we are able to identify any material irregular or improper use of funds by the College, or material non-compliance with the terms and conditions of funding under the college’s financial memorandum and contracts with the Welsh Government. 

We confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Welsh Government.

Going concern 

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

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

The Directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements. After reviewing these forecasts, the Directors are of the opinion that, taking account of severe but plausible downsides, including the anticipated impact of the energy & cost of living crisis, 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 

• Prevent training in conjunction with the UWTSD Council in September 2023. 
• Colegau Cymru online training on ALN and FE Finances 
• All directors and the Clerk undertook online training in : Safeguarding; Prevent and GDPR.

External Review – Governance 

An external review of Governance is undertaken at least once every 3 years. The last review was carried out by the Internal Audit Team – Mazars LLP - in May 2022. 

By order of the Board

Mr John Edge, Director

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 WG Circular (2023-24). 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 the anticipated impact of energy costs & the cost of living crisis, 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 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 2024. 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.