Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Page 46
Page 47
Page 48
Page 49
Page 50
Page 51
Page 52
Page 53
Page 54
Annual Report and Financial Statements 2015 Globally recognised safety health and environmental qualifications Registered Office Dominus Way Meridian Business Park Leicester LE19 1QW Telephone 44 0116 263 4700 Email infonebosh.org.uk www.nebosh.org.uk Registered in England and Wales Company Number 2698100 Registered Charity Number1010444 Cover Victoria Casey Risk Consultant RiskSTOP Group Ltd National General Certificate in Occupational Health and Safety Awarded 2011 National Certificate in Fire Safety and Risk Management Awarded 2012 Contents Chairs Foreword 5 Strategic Report 6 Governance Report 34 Report of Trustees Approval 39 Independent Auditors Report to the Members of the National Examination Board in Occupational Safety and Health 40 Statement of Financial Activities 41 Balance Sheet 42 Cash Flow Statement 43 Notes to Financial Statements 44 David Fitz-Patrick SHE Officer Thorntons National General Certificate in Occupational Health and Safety Awarded 2011 National Certificate in Fire Safety and Risk Management Awarded 2013 Environmental Awareness at Work Qualification Awarded 2015 3 Maria Fernanda Anderson Health and Safety Manager British Museum National General Certificate in Occupational Health and Safety awarded 2005 National Diploma in Occupational Health and Safety awarded 2007 National Certificate in Fire Safety and Risk Management awarded 2010 National Certificate in Construction Health and Safety awarded 2011 4 Chairs Foreword Chairs Foreword It is 40 years since the Health and Safety Executive HSE was formed. Its remit was to undertake the requirements of the Health and Safety Commission to enforce health and safety legislation following the Health and Safety at Work Act gaining Royal Assent. The total number of work-related injuries has fallen by three quarters since the Act was introduced. The number of people in the UK fatally injured doing their job now stands at a record low. The HSEs work on proportionate and effective risk based regulation is recognised as world leading. In NEBOSH we feel especially proud that we have been selected by the HSE to develop an accredited qualification for all new health and safety inspectors. Britains excellent safety record is built on the work of the HSE but it is also built on the great work done by safety practitioners. NEBOSH qualified Safety Health and Environmental Practitioners play a huge part in helping to sustain this trend. Applying their knowledge and skills in their workplaces saves thousands of lives eliminates environmental risk prevents injuries at work and reduces the economic and social costs of health and safety failures. The principles of managing risk are universally applicable and can be applied across all workplaces worldwide. NEBOSH is proud to help share this knowledge to help save even more lives around the world. Three years ago following my first full year as NEBOSH Chair I stated in our Annual Report that we had achieved a landmark year. During 201112 our international registrations grew to equal those from the UK. By the end of the following year our international presence had grown so rapidly it warranted our proud achievement of the Queens Award for Enterprise for outstanding achievement in International Trade. Throughout last year growth continued so that by the end of March 2014 we had reached the point where two thirds of all NEBOSH registrations were from international students. This year we find ourselves in the same position with 65 of registrations from International students. This certainly does not mean we have stood still. Both international and UK registrations have continued to grow. We have posted record results and we have more accredited course providers throughout the world. 201415 has been another successful year for NEBOSH a year of consolidation of a strong position. So how should we now judge our success During this year when we celebrated our achievement of the Queens Award I was struck by the fact that while the growth figures were important we had clearly achieved something far more fundamental linked entirely to our vision as an organisation to preserve and improve health safety and the environment in workplaces worldwide. This became even more apparent when I visited the Middle East this year. Here I could see first-hand the contribution NEBOSH makes in encouraging robust health safety and environmental regulatory systems in other parts of the world and competency within their industries. We really do make a difference and this is the true story of our success. Through our qualifications and our worldwide network of accredited course providers we are raising standards of safety improving health reducing risk in the workplace and improving environmental management. Saving lives preventing suffering and preserving the world for future generations. As ever I would like to thank our Board of Trustees for helping to steer our vision and I would like to congratulate our accredited course providers examiners and our team of NEBOSH staff for their invaluable contribution to our ongoing success. Sir Bill Callaghan Chair 5 Strategic Report A considerable fall in the price of oil during the second half of 2014 placed significant pressure on many oil producing countries not least those of the Middle East. NEBOSH has a strong presence in the region and it is clear that falling oil prices both here and in many other parts of the world led to a slowing in the rate of our international growth during 201415. Despite this the overall number of examination registrations has once again grown to a record level as has our financial performance. This puts us in an even stronger position to continue investing in our systems our processes and our international brand in pursuit of our vision of improving health safety and the environment in workplaces worldwide. Once again we must praise the hard work and commitment of everyone who has achieved a NEBOSH qualification over the past 12 months as well as our accredited course providers and our dedicated staff here at NEBOSH who have supported them. You are all the reason behind our ongoing success. Growth in overall registrations continued in 201415 up by 8187 to 176234 an increase of 5 compared to last year. Registrations from outside of the UK grew by 6 accounting for 65 of all NEBOSH assessments the same proportion we reported in 201314. Registrations within the UK increased by 4 UK registrations now account for 35 of total NEBOSH assessments. At the end of this business year NEBOSH had 618 accredited course providers throughout the world up 3 on 201314. NEBOSH is delighted to report continued growth and expansion in 201415 despite less buoyant trading conditions in some of our key international markets. Growth in registrations has resulted in our annual income rising to a record 9055k this year up by 6 from 201314. Coupled with excellent investment gains our reserves have increased by a further 2566k. Once again we have strengthened our financial position which means our future remains secure and allows further expansion of our services worldwide. Having consolidated our position our performance in the final quarter of 201415 indicates a return to growth. We look forward to next year with a positive outlook. Qualifications New Qualifications 201415 has seen the introduction of a specialist NEBOSH Diploma designed solely for UK Health and Safety Executive HSE inspectors the launch of our new Award in Environmental Awareness at Work and an extension to our partnership with the University of Hull which offers a range of Masters Degrees. The new NEBOSH Diploma in Regulatory Occupational Health and Safety increases our portfolio of qualifications to 16 three at Award level nine Certificates and four Diplomas. This Masters level qualification has already seen 100 HSE inspectors start the programme. The HSE is the UKs national independent regulator for work-related health and safety. HSE inspectors identify failings that lead to loss of life injury and illness and then take appropriate action such as enforcement and prosecution. They represent an essential part of the health and safety system in the UK a system that is held in high regard as an example of best practice throughout the world. 6 Strategic Report The syllabus and assessment methodology for this new qualification were developed jointly with HSE with NEBOSH taking responsibility for moderation of assessments and monitoring of standards. We are very proud to have been chosen by HSE to partner with them on this valuable high-level training and development programme. The NEBOSH Environmental Awareness at Work Qualification was approved following an 18 month pilot phase. It has now been fully accredited by Scottish Qualifications Authority SQA Accreditation. Demand has been strong for the qualification with one significant success being its integration by independent government body Dubai Aviation Engineering Projects DAEP into a training programme for more than 100 personnel contractors and stakeholders involved in the development of Al Maktoum International Airport at Dubai World Central. The airport is set to become the worlds largest when fully completed and DAEP has made a strong commitment to minimise adverse environmental impacts. In March 2015 we built on the success of the three Master of Research MRes qualifications we offer in partnership with the University of Hull by adding the following taught Masters degrees MSc in Occupational Health Safety and Environmental Management MSc in Occupational Health and Safety Management MSc in Environmental Management All six qualifications are now open to NEBOSH Diploma holders who are looking to further their learning. Growth in registrations has resulted in our annual income rising to a record 9055k this year up by 6 from 201314 Steven Low QHSE Advisor Fugro Singapore Pte Ltd International Diploma in Occupational Health and Safety Awarded 2013 7 Graham Losh Group Occupational Health Safety Manager The FA National General Certificate in Occupational Health and Safety Awarded 2005 National Certificate in Fire Safety and Risk Management Awarded 2008 National Diploma in Occupational Health and Safety Awarded 2010 8 Strategic Report Award Level Health and Safety Qualifications Our Award level qualifications provide a flexible introduction to occupational health and safety and can be adapted to suit any type of workplace anywhere in the world. They also offer a progression route to our higher level International and National Certificates. Employers in particular are attracted to these qualifications and tell us they help to improve the health and safety culture across their organisations. One example is engineering hard services led facilities management provider Norland which has adopted the NEBOSH Award in Health and Safety at Work as a mandatory foundation qualification for a large number of its employees. The company describes the qualification as having sufficient flexibility to be tailored to the way we do things whilst providing a foundation for future NEBOSH qualifications. At the same time they say it has generated greater enthusiasm for being involved in risk management. Norland is not the only employer to have integrated our NEBOSH Award in Health and Safety at Work into its broader employee training programmes. Other high profile organisations including the English Football Association FA have also adopted it. As a result of this employer enthusiasm registrations for the Award in Health and Safety at Work have continued to grow. In 201415 there were 10936 registrations worldwide up by 2714 33 on the previous year making this our third most popular qualification despite having been officially launched just five years ago. The Award in Health and Safety at Works international popularity has been aided by its availability in five languages other than English. The qualification can also be taken in Arabic French Mandarin Chinese Russian and Spanish. Our second Award level health and safety qualification is the NEBOSH Award in Health Safety and Environment for the Process Industries. This qualification is improving safety standards and knowledge in the international chemical pharmaceutical nuclear oil and gas petroleum and polymer industries. Registrations for the Award in Health and Safety at Work have increased by 33 from the previous year 9 Health and Safety Certificates The NEBOSH International General Certificate in Occupational Health and Safety IGC and NEBOSH National General Certificate in Occupational Health and Safety NGC represent more than three quarters of all NEBOSH examination registrations see Figure 1. For those seeking a long-term career in occupational health and safety NEBOSHs Certificate qualifications offer a progression route towards our professional level Diplomas. However both the International General Certificate and National General Certificate are increasingly seen as an important core qualification for general management in the workplace. In fact around 80 of people who take our health and safety Certificates are employed in roles where their primary function is not health and safety. People in operational facilities production HR security and even financial management roles now regularly seek a NEBOSH International General Certificate or NEBOSH National General Certificate. Candidates from a wide range of backgrounds from airline flight crew to mechanical engineers take our Certificate examinations and increasingly it is their employers who set it as the standard they wish their managers to reach. For example Thames Water the UKs largest water and wastewater services provider initiated a training programme to ensure that all 500 of its general management personnel hold a NEBOSH Health and Safety Certificate. The International General Certificate is by far our most popular qualification. There were 95677 examination registrations in 201415 up 8 on the previous 12 months. Introduced in 2005 the International General Certificate has been instrumental in our international development in recent years. The number of exam registrations for International General Certificate has grown by almost 450 in the past five years. Those who complete our International General Certificate qualification rate it highly. A NEBOSH student survey in 2014 showed that of those who responded 98 would recommend the qualification to others. In addition almost 40 said their International General Certificate had a positive impact on their career within 12 months of passing citing examples such as promotion greater responsibilities salary increases and membership of professional bodies. The International General Certificate can be taken in Arabic French Portuguese Russian Spanish and Turkish as well as English. Registrations for the National General Certificate also grew by 3 compared to last year rising to 39329 in 201415. It remains our second most popular qualification. During 201415 we made alterations to the National General Certificate and International General Certificate syllabuses to reflect changes made to HSG65 - the UK Health and Safety Executives key guidance for managing health and safety. Both syllabuses were aligned to reflect recent changes to the Construction Design and Management Regulations 2015. This year also resulted in a significant milestone being reached for the National General Certificate with the 175000th person achieving this qualification. Peter Dawes is an experienced lifesaver who provides support to many heroic volunteers every day throughout Britain and Ireland as the RNLIs Royal National Lifeboat Institution Lifesaving Services Manager. He was presented with a NEBOSH Silver Salver to commemorate the occasion. Peter who came to work in the UK from Australia modestly described himself as being just one of an awful lot of people who have been better trained at looking after their colleagues and the companies they work for. 10 Strategic Report This makes them popular with employers from all types of industry anywhere in the world. Globally both the International General Certificate and National General Certificate are seen as a way of demonstrating health and safety knowledge and its practical application. As part of our drive to simplify the process of gaining multiple NEBOSH qualifications the International General Certificate and National General Certificate now share two units GC2 and GC3. This means that only one further unit is needed to gain the other qualification provided they are taken within five years of each other. In modern well-managed workplaces employers seek managers contractors and stakeholders who fully understand the requirements of health and safety law and who are capable of identifying and controlling workplace hazards. One of the key strengths of our Certificate qualifications is their flexibility as courses can follow a wide range of formats and learning methods. This year we reached a significant milestone for the National General Certificate with the 175000th person achieving the qualification Figure 1 Unit Registrations for the National and International General Certificate over the last three years National General Certificate International General Certificate 100000 75000 50000 25000 0 201213 201314 201415 11 Specialist Certificates This year we have seen a resurgence in the number of registrations for the NEBOSH National Certificate in Construction Health and Safety NCC. Registrations grew by 5 compared to 201314 to 5943 see Figure 2. This represents the highest level for four years and appears to reflect a reasonable recovery in construction output in the UK during 201415 particularly in London and the South East. During 201415 we made some updates to the legislative content of the National Certificate in Construction Health and Safety syllabus following the introduction of The Construction Design and Management Regulations 2015. During 201314 registrations for the NEBOSH International Certificate in Construction Health and Safety ICC increased by more than 130 to 1340 and we are pleased to report that interest in this relatively new qualification continues to grow. Registrations grew by a further 8 to 1445. The International Certificate in Construction Health and Safety shares one Unit IGC1 with the International General Certificate and therefore represents a further offering that accredited course providers can promote to holders of the general qualification. Registrations for the NEBOSH National Certificate in Fire Safety and Risk Management remain relatively static up slightly to 3620 this year see Figure 2. The equivalent NEBOSH International Certificate in Fire Safety and Risk Management was launched just three years ago and registrations for this qualification are again comparable to those achieved last year. Last year we reported that the NEBOSH National Fire Certificate entitled holders to Technician Membership of the Institute of Fire Prevention Officers IFPO. We are delighted to confirm that this has now been extended to include the NEBOSH International Fire Certificate. Both qualifications meet the underpinning knowledge requirement for membership of IFPO at Technician Grade and use of the designatory letters TIFPO or a higher grade with additional experience andor management responsibilities. Figure 2 Registrations for NEBOSH Specialist Certificates over the last 3 years National Construction Certificate National Fire Certificate Oil and Gas Certificate Environmental Certificate 6000 4500 3000 1500 0 201213 201314 201415 12 Strategic Report Following a dramatic surge in growth two years ago registrations for the NEBOSH International Technical Certificate in Oil and Gas Operational Safety have fallen slightly for reasons we believe are linked to falling oil prices in 2014. At the end of 201415 we launched a consultation exercise looking at the format of this qualification. The review included a survey of both successful and unsuccessful past candidates and face to face interviews with a range of employers and other stakeholders. Development has begun on restructuring the Certificate and we plan on producing a draft syllabus for further consultation later in 2015. Although registrations for the NEBOSH National Certificate in the Management of Health and Well-being at Work remain relatively low compared to other specialist Certificates we are pleased to report a further significant increase in examination entries up by 64 to 517. This year we have seen a resurgence in the registrations for the National and International Construction Certificates Nigel Clamp Senior SHE Manager Hanson UK National General Certificate in Occupational Health Awarded 2001 National Diploma in Occupational Health and Safety Awarded 2008 13 Health and Safety Diplomas New enrolments for the NEBOSH National Diploma in Occupational Health and Safety NDip fell slightly this year following an increase for the first time in several years during 201314. There were 1268 enrolments down 5 on last year see Figure 3. However in the UK we are encouraged by the findings of our recent Jobs Barometer research which showed that more than half 55 of nationally advertised health and safety positions insist on candidates holding a NEBOSH Diploma up from 48 last year and 41 five years ago. The findings which also highlight that Diploma holders command a higher salary suggest more UK employers see health and safety management as a strategic role demanding an appropriate professional level qualification. Enrolments for the NEBOSH International Diploma in Occupational Health and Safety IDip continue to surpass those for the UK variant. However new enrolments fell by 11 in 201415 to 1977 compared to a record 2216 last year see Figure 3. Again we believe this is partly due to economic pressures in some of our most important overseas markets during the past financial year. Figure 3 New enrolments on National and International Diploma over the last four years National Diploma Enrolments International Diploma Enrolments 2400 1800 1200 600 0 201112 201213 201314 201415 14 Strategic Report Figure 4 Cumulative pass rates on NEBOSH International Diploma at the end of March 2015 Figure 5 Cumulative pass rates on NEBOSH National Diploma at the end of March 2015 Pass rates for the International Diploma continue to be slightly lower than those achieved for our National Diploma see Figure 4. One key reason for this is the higher proportion of international students who study in their own time and at their own expense through distance learning. As a result they tend to spread their studies and assessments over longer periods. Another factor is that the majority of International Diploma students do not take their assessments in their first language. Given these circumstances a cumulative pass rate of 62 is encouraging. Cumulative pass rates for the National Diploma remain stable at 88 See Figure 5. The cumulative pass rate is the percentage of students that have attempted all four assessments at least once and have now achieved their Diploma. Although many candidates do not pass all units first time with persistence most will have passed their Diploma by the expiry of their enrolment period. During 201415 we began our largest ever consultation exercise with course providers employers students and other stakeholders on possible changes to both the National Diploma and International Diploma. The consultation is part of the normal five year development cycle which ensures the qualifications remain fit for purpose. Preliminary mapping of the current syllabuses to the new IOSH recognition criteria has already been completed. We anticipate that the redevelopment of both qualifications will be completed by December 2015 and will be ready to be taught in 2016. The qualifications will also be resubmitted for SQA accreditation in 2016. Year of Enrolment Currently Enrolled Currently Enrolled Year of Enrolment 100 75 50 25 0 100 75 50 25 0 200809 200809 200708 200708 200607 200506 201011 201011 201112 201112 201213 201213 201314 201314 201415 201415 200910 200910 15 Environmental Qualifications Although still within its pilot phase our new NEBOSH Award in Environmental Awareness at Work EAW qualification had 473 registrations during the year 201415 which is a 13 increase on the previous year. We are encouraged by this growth and by the feedback we have received from employers who tell us the qualification is not only useful in supporting their Environmental Management Systems EMS such as ISO 14001 but has improved awareness and culture in their workplaces with an increase in the reporting of environmental issues. The Award in Environmental Awareness at Work adopts a similar approach to our Award in Health and Safety at Work allowing course content to be tailored to different workplaces. Following its successful pilot our Award level Environmental Awareness at Work qualification is now a permanent part of our portfolio of qualifications. We believe it presents an opportunity for us to build a more prominent international brand in the environmental management arena and that as a result more people will progress towards higher level NEBOSH environmental qualifications in the future. In 201415 registrations for the NEBOSH Certificate in Environmental Management fell by 6 to 2447 see Figure 2. Last year we moved from a UK based Certificate to one that is more internationally relevant. This may have resulted in a slowing down of registrations from the UK. The impact will be better understood as we move forward over the next 12 months. Registrations for the NEBOSH National Diploma in Environmental Management also declined slightly down by 2 to 845 this year. This year we began consulting with accredited course providers and students on a potential move to a single NEBOSH Environmental Diploma with international relevance. The findings of this exercise will be considered and decisions made during 201516. 16 Section title Chris Powley Health and Safety Manager Rugby Football Union RFU National General Certificate in Occupational Health and Safety Awarded 2011 National Certificate in Fire Safety and Risk Management Awarded 2014 17 18 Strategic Report NEBOSH Top Candidates for the Year 201415 The NEBOSH Best Candidate Awards recognise and reward the achievements of the best performing candidates for both Certificate and Diploma qualifications. NEBOSH International General Certificate in Occupational Health and Safety Mr Muhammad Zafar Iqbal Studied with SGS Pakistan Pvt Ltd NEBOSH National General Certificate in Occupational Health and Safety Mr Greg Bishop Studied with BMC Safety Ltd NEBOSH International Diploma in Occupational Health and Safety Ms Patricia Howard Studied with CMI- Communications Management Institute NEBOSH National Diploma in Occupational Health and Safety Mr George Brian Tait Studied with Northumbria University NEBOSH National Diploma in Occupational Health and Safety Unit A Mrs Jane Gartland Studied with Safetyboss Ltd NEBOSH National Diploma in Occupational Health and Safety Unit B Mrs Victoria Challis Studied with Astutis Ltd NEBOSH National Diploma in Occupational Health and Safety Unit C Mr George Brian Tait Studied with Northumbria University NEBOSH National Diploma in Occupational Health and Safety Unit D Mrs Marion Carnell Studied with RRC International NEBOSH National Diploma in Environmental Management Mr Nicholas Cooke Studied with University of Hull NEBOSH Certificate in Environmental Management Mrs Marketa Horne Studied with RRC International NEBOSH National Certificate in Construction Health and Safety Mr Christopher Cartwright Studied with Compass Health Safety Consultancy NEBOSH National Certificate in Fire Safety and Risk Management Mr Joe Duckworth Studied with Messam and Rider Limited NEBOSH International Technical Certificate in Oil and Gas Operational Safety Mr Ayman Mohamed Kamal Studied with International Expertise Association 19 Regulatory Accreditation Qualifications accreditation ensures our development assessment certification and quality assurance procedures are subject to expert independent scrutiny safeguarding the interests of our stakeholders including students course providers and employers. NEBOSH has been a UK-recognised awarding body since 2000 and received Approved Awarding Body status from Scottish Qualifications Authority SQA Accreditation in 2009. The majority of NEBOSH qualifications are accredited and credit rated by SQA Accreditation within the Scottish Credit Qualifications Framework SCQF. SQA Accreditation has a UK-wide regulatory remit. NEBOSH is subject to a triennial audit cycle by SQA and our current risk analysis rating is in the lowest Low risk category. Our next review is scheduled to take place in 2017. In 201415 a further two NEBOSH qualifications were accredited and credit rated by SQA Accreditation The NEBOSH Environmental Awareness at Work Qualification was rated at SCQF Level 5 comparable to level 2 in England Wales and Northern Ireland or GCSE Standard Grade A-C. The new NEBOSH Diploma in Regulatory Occupational Health and Safety was rated at SCQF Level 11 comparable to level 7 elsewhere in the UK or Masters Degree status. Graham Losh Group Occupational Health Safety Manager The FA National General Certificate in Occupational Health and Safety Awarded 2005 National Certificate in Fire Safety and Risk Management Awarded 2007 National Diploma in Occupational Health and Safety Awarded 2010 20 Strategic Report robust assessment of knowledge and the ability to apply such knowledge in the field of health safety and environmental practice. As such we are very open about the way we manage and respond to malpractice issues which albeit infrequently do sometimes occur. We continue to conduct investigations and take strong action in cases that are proven. The fact that during 201415 a UK accredited course provider in the top 10 in terms of student numbers had its accreditation removed for reasons of malpractice demonstrates our willingness to take action in this regard. Other incidents have led to students having their qualifications removed and some have been banned from taking NEBOSH qualifications in the future. We are pleased to report that our action taken during 201314 to better prevent deter and detect malpractice is having an impact. Course provider support and training as well as an alignment of our assessment and marking processes for standard date and on demand examinations have had a positive effect. Of significant importance has also been the continued and expanded use of British Council inspectors to help us uncover irregularities. Their appointment to manage all examinations taking place in specified countries has now been compulsory since September 2013. The format of NEBOSH Examiners reports changed at the beginning of 2014. The new format provides general guidance on candidate performance in relation to the syllabus outcomes and examination technique. These reports are free to download by students as well as course providers. They provide feedback in the key areas of examination technique command words and learning outcomes. Certificate level Examiners Reports are published on a quarterly basis. Examiners Reports for the National and International Diploma are published bi annually. As part of this review NEBOSH no longer provides individual feedback for Enquiry About Result requests. Also available is the Example question paper and Examiners feedback on expected answers document which provides example questions and details Examiners expectations in response. Following a review of our translation processes for assessments we now have reviewers of all non-English question papers by qualified safety professionals who have the target language as their mother tongue. Examinations and Assessment The Standards Department at NEBOSH plays a vital role in the administration and management of examinations and assessments. It is from within this department that examinations are prepared item banks are maintained standards are monitored and results are managed. During the past five years the overall number of NEBOSH examination registrations has nearly doubled from 90436 per annum to 176234. The range and number of available NEBOSH qualifications has also grown significantly and whereas five years ago two-thirds of registrations were from within the UK almost two-thirds are now from international markets. On demand sittings now exceed standard date assessments and NEBOSH qualifications can now be taken in seven languages other than English. All of these factors have placed increasing levels of demand on our Standards Department. As a result we took the decision to reorganise our Standards Department in 201415. The approach we adopted was to split the department into three separate teams Pre-Assessment Team deals with the preparation of new questions and papers reviewing item performance and making any necessary changes. They also deliver workshop based training to new item writers. Assessment Team looks after the recruitment and training of examiners and monitors their overall performance including the accuracy of marking. Post-Assessment Team confirm results checking marks and dealing with malpractice identification and investigation. The team also handles Enquiries About Results. This new approach within the department is working well. Three separate Principal Standards Officers now lead the teams under the supervision of the NEBOSH Standards Manager. Each was promoted from their existing Standards Officers roles and because they have previously undertaken all the tasks within the department they are able to stand in for each other whenever needed. The Standards Manager is also now able to devote more of her time to strategic and development issues. At NEBOSH we are passionate about maintaining the integrity of our qualifications. It is essential that we protect our strong reputation for providing a 21 International Development In 201415 we celebrated our achievement of the Queens Award for Enterprise for Outstanding Achievement in International Trade. The Award was based on our overseas performance between 2010 and 2013 during which time our international examination registrations grew from just over 23000 to around 82000. This was a period of unprecedented growth for NEBOSH resulting from our strategy of developing new markets throughout Asia the Middle East Africa and other parts of the world. As these international markets became more firmly established we expected to see a slowdown in this extremely rapid rate of growth and this has been the case during 201415. External factors particularly a fall in international oil prices and the knock on effect this has had on the growth of infrastructure in many of our international markets has also contributed to slower growth compared to the previous four years. However despite these factors we have continued to grow our international portfolio during 201415. Overseas registrations increased to 114536 up by 6047 6. This represents 65 of our registrations the same proportion as last year. Encouragingly the number of countries in which people sat NEBOSH assessments also increased by a further ten up from 112 in 201314 to 122 in 201415. Each new country represents a potential new market for our qualifications. Of further encouragement for the future is additional growth in the number of international accredited course providers up from 210 to 249 during 201415 an increase of 19. Our strategy of making our qualifications available in languages other than English continues to bear fruit. In particular this is having an impact on the number of major multi-national employers who now integrate NEBOSH into their training and competency programme. Many seek a common benchmark for knowledge and skills across their worldwide operations and our flexible but consistent suite of qualifications helps to achieve this. Of course achieving growth is not an end in itself. Our vision is to preserve and improve health safety and the environment in workplaces worldwide. Expanding the numbers that gain our qualifications helps us to achieve this. Each qualification holder can influence and improve safety in their workplace protecting others from life changing injuries and ill health. Internationally our representatives speak at a variety of conferences each year to promote good practice in health safety and environmental management. We also continue to work closely with overseas government departments and support many in the development of their evolving regulatory frameworks. Our charitable rather than commercial status helps in this regard and frequently we act as a conduit for global networking and the sharing of good practice between governments as well as regulatory standards and other relevant bodies. We were delighted for example that this year two members of staff were recognised for their wider contribution to occupational health and safety in one of our important international territories. NEBOSH Managers Stuart Naylor and Barry Wilkes were presented with a Certificate of Appreciation by the Ministry of Labour in the United Arab Emirates UAE in Dubai in February in recognition of their significant and valuable contributions to health and safety in the Emirates. Occasions such as this and our achievement in winning the Queens Award help to enhance our reputation overseas. 22 Strategic Report The number of countries in which people sat NEBOSH assessments increased to122 Teresa Budworth Lady Gretton Lord Lieutenant of Leicester Sir Bill Callaghan and Colonel Murray Colville Deputy Lord Lieutenant of Leicester with the Bhangra dancers at the Queens Award Celebrations. 23 Lisa Sherratt Head of Health Safety and Security Kent Community Health NHS Foundation Trust National General Certificate in Occupational Health and Safety Awarded 2007 National Diploma in Occupational Health and Safety Awarded 2014 24 Strategic Report Customer Services The achievement of excellence in standards of customer care for our course providers students and other stakeholders is something we continuously strive for at NEBOSH. We continue to invest in the largest infrastructure project we have ever instigated at NEBOSH that of modernising and enhancing our technology based support systems to further improve efficiency and offer more user friendly processes. One aspect of progress in this regard is the introduction of online registration for almost 100 of examination entries. During 201415 online registration was made available for both our International and National Diplomas in Occupational Safety and Health. This now leaves only the Environmental Diploma to be added to the system. Another area of significant progress within our replacement examination database programme is with the new Content Management System CMS that will form the backbone of our brand new public facing website. We are currently populating the content in preparation for the launch of our new website later in 2015. Taking slightly longer than anticipated is progress with the platform chosen to replace our current examination database. Work has been completed with regard to due diligence consultation testing and building confidence both internally and externally and putting the necessary processes in place. Our examination database programme is a long-term and vital investment for NEBOSH as we continue to grow both in the UK and internationally. This year we have been investing time and money protecting our intellectual property and branding around the world. This helps to ensure students receive reliable quality training from genuine NEBOSH accredited course providers and therefore gain correct and recognised qualifications. In addition to strengthening our trademark protection in key markets we also have a web watching service. We do not hesitate to take legal action to enforce our rights when others use similar names and product offerings in an attempt to confuse prospective students. The NEBOSH Customer Relations team which sits within our Customer Services Department continues to proactively support course providers including guiding newly accredited providers through the administration of examinations and our Course Provider Interface CPI system through face-to-face telephone based and online screen sharing assistance. 25 Communications and marketing support for Course Providers Our social media following continues to grow and is proving to be a useful and popular way of sharing news updates and important announcements. The various platforms we use also help to promote interaction between our students and other stakeholders. On Facebook we have over 16000 likes compared to around 10000 at the end of 201314. Of the 244 people who have provided a review of NEBOSH on Facebook188 77 rate our organisation as five star. Overall our star rating is 4.6 out of 5. In addition we regularly tweet through Twitter to almost 5500 followers have a channel on YouTube for video content and also provide updates via LinkedIn and Google. We also continue to communicate using more traditional methods through media releases and our three newsletters designed for students and their employers course providers and NEBOSH Council and panel members. Once again NEBOSH representatives have travelled to various conferences and exhibitions throughout the world. These events give us an opportunity to not only promote our range of qualifications but to support our widespread network of accredited course providers. Overseas we exhibited attended or participated in events held in Doha Qatar Johannesburg South Africa Mumbai and Chennai India Orlando USA and Abu Dhabi and Dubai in the United Arab Emirates. We were delighted to receive an award for the best stand at OSH Africa Exhibition in Johannesburg. We also exhibited at most of the major health and safety and environmental management exhibitions in the UK. Our Course Provider Workshops continue to be highly popular. During 201415 these have been delivered in the UK Dubai India and Singapore. Topics covered have included Marking the Certificate practical application and Preparing your students for examination. In addition we have introduced an e-learning programme for those invigilating NEBOSH examinations. The programme has been designed as an aid and does not replace our detailed Instructions for Conducting Examinations document. We also provide course providers with guidance updates to legislation referred to in the syllabuses of NEBOSH qualifications. To help illustrate how employers use NEBOSH qualifications within their safety and environmental management systems we have continued to produce a wide variety of case studies. These case studies feature employers and safety practitioners working in a diverse range of fields such as aviation chemicals engineering manufacturing sports stadia and events management retail oil and gas and insurance. These case studies are a useful resource for those wishing to study as they demonstrate the positive experience and career progression of past students whilst giving an understanding of why they chose the qualifications they studied. We pass out case studies at many of the events we attend and also make them available on our website and in our various newsletters. To further supplement this we also produced a Case Studies booklet downloadable from our website primarily to support course providers seeking to promote our qualifications. More than two hundred NEBOSH Diploma students from around the world gathered in June 2014 to celebrate their success at our graduation ceremony held at The University of Warwick. Diplomates travelled from countries such as Egypt India Nigeria Oman Qatar and United Arab Emirates to attend as well as all parts of the United Kingdom. UK Health and Safety Executive Chair Judith Hackitt CBE was Guest of Honour at the ceremony and personally congratulated every graduate. Judith also presented special awards to our top performing students in NEBOSH Certificate and Diploma examinations in the last year. Several videos shot at the event were subsequently made available to view on our YouTube channel. These included ceremony highlights as well as interviews with successful students and award winners and the thoughts of Judith Hackitt and NEBOSH Chair Sir Bill Callaghan 26 Strategic Report Charitable Activities NEBOSH is a registered charity which means we exist for charitable purposes the advancement of health and the saving of lives for the public benefit. Our purpose is set out in our governing documents The objects of NEBOSH shall be the preservation of health by the promotion of high standards of health safety and environmental protection at work in particular but not exclusively through study and competence in risk management. Our approach is simple By helping individuals achieve competence in health safety and environmental management they in turn are equipped to protect others from the hazards arising from workplace activities. As a charity we strongly believe we have a commitment to work with other charities and non-profit organisations in promoting health and safety both in the UK and throughout the world particularly through education and training. RoSPA Awards This year we confirmed that we would continue our headline sponsorship of the annual Royal Society for the Prevention of Accidents RoSPA Occupational Health and Safety Awards for a further three years. The Awards recognise a commitment to protecting people at work. They celebrate dedication to excellence and highlight how health and safety is not a burden but something to be proud of. Each year the Awards recognise around 1750 winners from the UK and overseas for their health and safety successes not just in terms of accident records but also their management systems and important practices such as strong leadership and workforce involvement. NEBOSH personnel sit on the judging panel. At NEBOSH we believe the RoSPA Awards make a tremendous contribution to improving health and safety standards by providing others with a template for improving safety performance. Sector winners are exemplars and highlight excellent and innovative practice which through RoSPA they share for the benefit of us all. Our support enables RoSPA to publicise and promote the scheme more widely bringing the benefits to more organisations both in the UK and around the world. At the RoSPA Award dinners held in May and June 2014 NEBOSH hosted a table of guests on each night. They included representatives of the Health and Safety Executive HSE International Organization for Standardization ISO American Society of Safety Engineers ASSE Board of Canadian Registered Safety Professionals CRSP Canadian Society of Safety Engineers CSSE and several of our accredited course providers. NEBOSH also continues to support the work of RoSPA through membership of its National Occupational Safety and Health Committee. 27 Peter Dawes Lifesaving Services Manager RNLI Royal National Lifeboat Institution National General Certificate in Occupational Health and Safety Awarded 2015 28 Strategic Report Charities Safety Group Each year we work with the Charities Safety Group CSG to support individuals from the charitable and voluntary sectors who are studying for their NEBOSH National General Certificate. NEBOSH waives its fees for these individuals and our course providers provide free places to candidates who apply through the CSG. In 201415 one beneficiary of this support was the Vocational Training Charitable Trust VTCT which offers vocational qualifications to people working in hairdressing beauty hospitality catering and retail. VTCTs Facility Officer Nick Shaw was tasked with the purchase and complete refurbishment of the organisations new headquarters and to support this aspect of his role he needed to rapidly expand his health and safety knowledge. He took and passed his National General Certificate with funding from CSG. Nick said his qualification has been incredibly helpful especially when dealing with contractors and understanding CDM Regulations. Safety Groups UK Safety Groups UK is a co-ordinating body that supports more than 70 occupational health and safety forums throughout the UK. It encourages local meetings networking and co-operation between employers health and safety inspectors and trade unions. The Groups can be especially useful in advising small businesses regarding health and safety issues. Their secretariat is provided by RoSPA. NEBOSH continues to support Safety Groups UK through sponsorship of events and publications. International Organization for Standardization ISO International Organization for Standardization ISO has formed a working group to develop a new ISO Standard for Occupational Health and Safety Management ISO 45001 which is set to replace OHSAS 18001 from October 2016. We are delighted that NEBOSH Accreditation Manager Teresa Hawkins is part of this working group. Following an initial meeting of the group in 201314 they gathered again on two occasions this year firstly in Casablanca Morocco and then again in Port of Spain Trinidad and Tobago. Teresa is one of over 85 delegates from around 30 member bodies who provide expert input on the draft standard and who work collectively to improve and ultimately agree on the final document. Excellent progress is being made with a draft now being agreed for worldwide consultation. The target date for the publication of this new standard is October 2016. The work and ultimate outcome of this working group fits extremely well with our vision of preserving and improving health safety and the environment in workplaces worldwide and we are proud of Teresas involvement and contribution. International Network of Safety and Health Practitioner Organisations INSHPO During 201415 NEBOSH became a full member of INSHPO International Network of Safety Health Practitioner Organisations. INSHPO is a non-profit body which brings together professional health and safety practitioner organisations throughout the world to tackle workplace risks. Our full membership gives us voting rights allowing greater participation in their work. We have already worked together on the production of a literature review which provides a summary of research on the value of the safety professional. INSHPO is also developing a global competency framework for the occupational safety and health profession which it hopes to publish soon. 29 People At NEBOSH we are incredibly proud of our people their dedication and their achievements. We recognise that their hard work and commitment lies at the heart of our continuing growth and our increasing relevance and influence throughout the world. NEBOSH has held Investors in People status for some time. This was due for renewal in the autumn of 2014 at which time we decided to re-evaluate using the full framework with the aim of reviewing planning and improving our overall Human Resource Management. We are delighted to report that we achieved the prestigious Investors in People Silver Award. To be successful with the initial Investors in People status an organisation must comply with 39 standards covering the training and development of staff. To achieve silver status a further 76 evidence requirements must also be met. Only the top 2 of organisations in the UK gain silver status. This along with our ISO 90012008 registered organisation status demonstrates that the achievement of best employment practices is a core value for NEBOSH. Our Management Team recently agreed to a paper which proposes a more formal approach to succession planning within the organisation in order to better manage risk. The proposal focuses not only on succession planning for key roles but also for building bench strength within the organisation in the event of vacancies and opportunities. This process will be developed further during 201516 with the identification of key roles within our organisation and details of the relevant underpinning competency requirements. Of course we also recognise that the NEBOSH family extends beyond our staff to include our examiners moderators panel members committee Council and Board. We all work together as one team supporting each other to deliver our objectives. We are extremely grateful to our examiners who are mainly practicing health and safety or environmental professionals. Many have previously taken NEBOSH qualifications and are keen to put something back into the vocational education system that supported them in their development. Two managers have recently been seconded to new roles at NEBOSH to support improvements to our business processes. Sarah Mace has taken up the role of Business Improvement Manager and is working with the Executive team business partners and suppliers to make proactive business process enhancements to provide an improved customer experience and efficiencies. Tania Barker has been appointed as Customer Services Manager for a period of 12 months to fill Sarahs previous role. Tania moves from NEBOSHs Communications and Marketing Department and brings with her a wealth of management and training experience. As described earlier within the Examinations and Assessments section of this report our Standards Department was reorganised this year and split into three teams covering Pre-Assessment Assessment and Post-Assessment. Three of our Standards Officers Maxine Pollock Fergus Kaye and Paul Clegg were all promoted to the position of Principal Standards Officer to lead these new teams. Sue Cooper an independent Trustee and Emma Roach from accredited course provider SHEilds have recently joined the NEBOSH Board of Trustees. 30 Strategic Report Sue has 30 years experience of working within the private sector has significant experience of strategic development and recently retired as Human Resources Director for WS Atkins PLC a company that featured in The Times Best 25 Big Companies to Work for in 2014. Sue recently won the WISE Champion Award sponsored by Research Councils UK for leading policies and practices which have supported the recruitment and retention of female engineers in WS Atkins PLC. Emma Roach has been involved in health and safety practice as both an employee and employer and also as a tutor for more than 15 years. She is currently a Senior Business Manager at NEBOSH course provider SHEilds where she leads on development and innovation. Emma has also held a lecturers post with Leeds College of Building since 2009. Colin Willis was reappointed to the Board also representing course providers. Colin is currently health and safety course leader at Redcar and Cleveland College and was first appointed to the Board in October 2010. Ken James retired from the Board after serving his maximum term as a Trustee. He was chair of a strategy review committee and had also served as vice chair of NEBOSH. His ability to provide strategic focus will be sorely missed. In terms of growth in registrations and our financial performance we are again delighted to provide a positive report in what has been a year of consolidation for NEBOSH. We remain proud of our achievements. We believe it is clear from this years report that the scope of our influence is increasing helping us to realise our important vision of preserving and improving health safety and the environment in workplaces throughout the world. NEBOSH has achieved Investors in People Sliver Award only the top 2 of organisations in the UK gain this recognition 31 Financial Review Total income for the year 201415 increased to 9055k from 8556k in 201314. This represented an increase of 6 in the year. Income from on demand examinations reduced in the year but the overall increase in registrations income more than compensated for this. Income from overseas examinations continued to grow and there was very encouraging income growth from UK based examinations. Investments also performed well during the year. After taking into account investment gains both realised and unrealised of 849k 2014 280k at 31 March 2015 our reserves stood at 14668k 2014 12102k. Investment Policy After giving due consideration to the Charitys financial position the Trustees have decided the investment portfolio should be separated into two accounts. This allows performance to be better measured and reflects the long term aim that approximately 70 with an agreed tolerance of - 10 of surplus funds are invested in a balanced fund which may be a mixture of equities fixed interest and other investments which offer medium to long term value and are appropriate for capital growth and sustainable income. The other 30 with an agreed tolerance of - 10 is placed on short term deposit providing immediate access. The investment objective for the long term investments is to achieve a balance between generating sufficient income to support the on-going activities of NEBOSH whilst maintaining the real capital value of the investments over the long term. The investment objective for the cash deposits is security of capital with easy access and an attractive rate of interest. The Trustees review the Charitys Investment Policy annually. The Charitys Investment Portfolio is entrusted to CCLA an investment management company solely for not-for-profit organisations with an investment management agreement. The Trustees have asked CCLA to adopt a benchmark of RPI4 over rolling five year periods for long term performance measurement and to use an appropriate composite benchmark for reviewing annual performance. Portfolio Review Services have been appointed by the Trustees to conduct regular monitoring of the performance of our investment managers. Our strategy is reviewed on a regular basis. Furthermore an Investment Committee has been established to advise the Trustees on the investment policy and make recommendations regarding the investment portfolio. A representative from the investment managers may be invited to a Board meeting as required. Reserves Policy The Trustees have a standing policy whereby the unrestricted funds not committed or invested in tangible assets the free reserves should be available to meet anticipated resources expended and provide funding to expand our range of qualifications. The Trustees consider that in the light of plans to continue to develop charitable activities and manage risks reserves should equate to between no less than nine months and no more than 18 months annual resources expended. The Reserves Policy is reviewed annually in March. At 31 March 2015 the charity had 8999422 of free reserves after a deduction of 4m designated by the Trustees after the year end for further development of the Charitys infrastructure which equates to 15 months annual resources based on current levels of expenditure. The Trustees believe that this level of reserves is appropriate at the present time due to planned project costs and the potential volatility of our investments. In addition NEBOSH operates solely in the field of education in health safety and environmental management which is sensitive to fluctuations in demand caused by political and economic factors. The Trustees have borne in mind that NEBOSH has no income or prospect of financial support other than that derived from its own fees and charges. Donations No charitable or political donations were made during the year 2014 Nil. Policy on Payment of Creditors It is the policy to abide by the terms of payment agreed with its suppliers either their standard terms or special terms where agreed beforehand. 32 Strategic Report Lisa Pearson Group Health Safety and Environmental Manager Hallmark Cards National General Certificate Awarded 2003 National Diploma Awarded 2010 33 Governance Report Legal Status and Constitution The National Examination Board in Occupational Safety and Health hereafter referred to as NEBOSH is a company registered in England no. 2698100 limited by guarantee and having no share capital. NEBOSH is a registered charity No.1010444. As a charity the company is exempt from corporation tax. Chief Executive Officer Mrs Teresa Budworth BSc Hons Dip IoD MBA MIRM CFIOSH C.Dir Secretary Mr Peter Ryan BSc Hons FCCA Registered Office NEBOSH Dominus Way Meridian Business Park Leicester LE19 1QW Auditors Baker Tilly UK Audit LLP St Philips Point Temple Row Birmingham B2 5AF Bankers National Westminster Bank plc 5 The Parade Oadby Leicester LE2 5BB Solicitors Shakespeares Legal LLP 2 Colton Square Leicester LE1 1QH Trustees The Trustees serving during the year and since the year end were as follows Sir Bill Callaghan BA Oxon MA Chair Mr Derrick Farthing BSc CEng FIIRSM FIMechE FEI MIoD Vice Chair Independent Trustee Mr Ian Coombes CMIOSH CSPA Representing Course Providers Ms Sue Cooper FCIPD Independent Trustee Appointed October 2014 Mr Andrew Cort MPhil BSc Hons MRINA FIOD CEng Independent Trustee Mr Ken W James MA OBE Independent Trustee Term of Office ended 30 Sept 2014 Mr David Lewis MBA LL.B Hons Independent Trustee Mr Bryan McCracken BEng Hons MA Dip2OSH CMIOSH AIEMA Representing Course Providers Mrs Emma Roach BSc DipFM CMIOSH ICIOB SIIRSM Representing Course Providers Appointed October 2014 Mr Mike Weaver MSc CPFA Independent Trustee Mr Colin Willis BA Hons DipNEBOSH Grad IOSH MIfL Representing Course Providers 34 Governance Report Mrs Emma Roach Mr Ken W JamesMr Andrew Cort Mr Colin Willis Mrs Teresa Budworth Mr Peter Ryan Sir Bill Callaghan Mr Ian Coombes Staff Trustees Mr Derrick Farthing Ms Sue Cooper Mr David LewisMr David Lewis Mr Bryan McCracken Mr Mike Weaver 35 Structure Governance and Management Governing Document NEBOSH a company limited by guarantee is governed by its Memorandum and Articles of Association dated 5 March 1992. An amended version of the Memorandum of Association was adopted by Special Resolution passed at the Annual General Meeting dated 4 September 2007. An amended version of the Articles of Association was adopted by Special Resolution passed at the Annual General Meeting dated 13 September 2012. NEBOSH is registered as a charity with the Charity Commission. There were 22 registered Members as at 31 March 2015 2014 21 Members each of whom has undertaken to contribute 1 in the event of NEBOSH being wound up. Appointment of Trustees The Trustees are elected by all the Members at the Annual General Meeting the Members constitute an advisory committee known as NEBOSH Council. The Chair of NEBOSH Council is appointed as a Trustee and serves as Chair of the Board of Trustees. The Chair is appointed for a term of three years and may be re-appointed for two further terms of three years before retiring from office. Four Trustees are elected from NEBOSH Council to represent accredited course providers. Each Trustee appointed on this basis serves a term of two years and may be re-appointed for two further terms before retiring from office. On the recommendation of the Trustees the Annual General Meeting may elect up to five other Trustees. Each Trustee is appointed for a term of three years and may be re-appointed for one further term of three years before retiring from office. Induction and Training of Trustees A formal induction process exists for new Trustees. The programme includes familiarisation with the role of NEBOSH in health and safety competence its charitable objects structure and governance and the role and responsibilities of a charity trustee. Additional briefings are arranged from time to time for both Trustees and other Members of NEBOSH Council on key issues which may impact on the work of NEBOSH or their role. Organisation The affairs of NEBOSH are managed by the Trustees who meet quarterly. They are guided by the NEBOSH Council on matters related to policy and direction of the charity. The Trustees may delegate any of their powers to sub-committees. Sub-committees have been established to cover Audit Nominations to the Board of Trustees Remuneration Investment and Strategy Review. Technical aspects of NEBOSHs work are overseen by a Qualifications and Technical Council which includes in its membership Trustees key stakeholders and those appointed for their expertise in health and safety environmental management or assessment methodology. A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operations of NEBOSH. To facilitate effective operations the Chief Executive Officer has delegated authority for all operational matters. Third Party Indemnity Provision for Trustees Qualifying third party indemnity provision is in place for the benefit of all Trustees of NEBOSH. 36 Governance Report Stuart Naylor NEBOSH International Manager raises Queens Award flag Risk Assessment The Trustees are responsible for overseeing the establishment and implementation of a sound framework for management of risk by NEBOSH. The Trustees have a formal policy on the Management of Risk which is reviewed annually. The significant risks to NEBOSH include those which threaten our reputation for integrity in the awarding of our qualifications the political volatility of some of the regions where a high proportion of our candidates are based and the impact of economic uncertainty and recession on the uptake of health safety and environmental qualifications. Risk management is an inherent part of the strategy review process and is considered in the formulation of the annual business plan. The major risks to which NEBOSH is exposed have been systematically reviewed and recorded in a risk register. The Trustees are confident that sufficient steps have been and are being taken to reduce and manage those risks. The risk register is reviewed three times per year by the Audit Committee on behalf of the Trustees and reviewed by all Trustees annually. Corporate governance arrangements in place to minimise strategic risks are reviewed by our Internal Auditors biennially. 37 Objectives and Activities Objects The objects of NEBOSH shall be the preservation of health by the promotion of high standards of health safety and environmental protection at work in particular but not exclusively through study and competence in risk management. In setting our objectives aims and planning our activities the Trustees have given careful consideration to the Charity Commissions general guidance on public benefit and in particular to its supplementary public benefit guidance for charities whose aims include the advancement of education and the guidance for those charities that charge fees. Aims NEBOSHs aims are to encourage the provision in collaboration with other organisations of facilities for training and education of people throughout their careers in safety and health and environmental management to promote appropriate and uniform qualifications and standards of examinations in safety and health and environmental management as affected by work activities and seek to co-ordinate international standards to assist in the development of facilities to enable those intending to pursue careers which involve responsibilities for the health and safety of those affected by work activities or managing the environmental impacts of work activities to acquire appropriate qualifications to provide qualifications based on examinations or other systems of assessment to be used in association with their other requirements as a basis for membership of professional bodies concerned with safety and health of those affected by work activities andor environmental management and to provide other qualifications to meet the needs of employment and the requirements of safety and health and environmental legislation to set and mark examinations or other systems of assessment leading to NEBOSHs qualifications to authorise other organisations to set and mark examinations or other systems of assessment leading to NEBOSHs qualifications and to establish conditions for such authorisation to form where appropriate part of a national framework of vocational qualifications to issue evidence of NEBOSHs awards of qualifications to successful candidates and to establish syllabuses related to NEBOSHs qualifications. Strategies for achieving NEBOSHs Objectives NEBOSH achieves its objectives by publishing syllabuses for health and safety environmental and related risk management qualifications accrediting course providers to run courses preparing candidates for assessment for NEBOSH qualifications setting and marking examinations and assessments issuing Unit Certificates and Qualification Parchments to candidates successful in assessment and maintaining approved awarding body status with Scottish Qualifications Authority SQA Accreditation. 38 Governance Report Trustees Responsibilities The Trustees who are also Directors of The National Examination Board in Occupational Safety and Health for the purposes of company law are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards United Kingdom Generally Accepted Accounting Practice. Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources including the income and expenditure of the charitable company for that period. In preparing these financial statements the Trustees are required to select suitable accounting policies and then apply them consistently observe the methods and principles in the Charities SORP make judgments 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 and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the National Examination Board in Occupational Safety and Health website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In so far as the Trustees are aware there is no relevant audit information of which the charitable companys auditor is unaware and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Auditors A resolution to re-appoint Baker Tilly UK Audit LLP Chartered Accountants as auditors will be proposed at the Annual General Meeting to be held on 16 September 2015. Report of Trustees Approval The Report of the Trustees incorporating both the Strategic Report and the Governance Report is approved by the Trustees by whose authority it is signed below Sir Bill Callaghan Chair of the Board of Trustees 3rd August 2015 39 Independent Auditors Report to the Members of the National Examination Board in Occupational Safety and Health We have audited the financial statements of National Examination Board in Occupational Safety and Health for the year ended 31 March 2015 on pages 41 to 53. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards United Kingdom Generally Accepted Accounting Practice. This report is made solely to the charitable companys members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable companys members those matters we are required to state to them in an auditors 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 charitable company and the charitable companys members as a body for our audit work for this report or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees responsibilities set out on page 39 the Trustees who are also the Directors of the charitable company for the purposes of company law are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing UK and Ireland. Those standards require us to comply with the Auditing Practices Boards APBs Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Councils website at httpwww.frc.org.uk auditscopeukprivate Opinion on financial statements In our opinion the financial statements give a true and fair view of the state of the charitable companys affairs as at 31 March 2015 and of its incoming resources and application of resources including its income and expenditure for the year then ended have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and have been prepared in accordance with the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Report of the Trustees and the incorporated Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if in our opinion the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us or the financial statements are not in agreement with the accounting records and returns or certain disclosures of trustees remuneration specified by law are not made or we have not received all the information and explanations we require for our audit. Paul Oxtoby Senior Statutory Auditor For and on behalf of BAKER TILLY UK AUDIT LLP Statutory Auditor Chartered Accountants St Philips Point Temple Row Birmingham B2 5AF 3rd August 2015 40 Independent Auditors Report Statement of Financial Activities including Income and Expenditure Account For the year ended 31 March 2015 Total Funds 2015 2014 restated Notes 000 000 Incoming resources Incoming resources from generated funds Investment income 2 22 97 Incoming resources from charitable activities Operations of Examination Board 3 9033 8459 Total incoming resources 9055 8556 Resources expended Charitable activities Operations of Examination Board 4a 7210 6528 Governance costs 4b 128 94 Total resources expended 7338 6622 Net incoming resources before other recognised gains 1717 1934 Realised gains on investment assets 9 72 Net income for the year 1717 2006 Unrealised gains on investment assets 9 849 208 Net movement of funds in year 2566 2214 Reconciliation of funds Total funds brought forward 12102 9888 Total funds carried forward 15 14668 12102 The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities. 41Statement of Financial Activities Balance Sheet 31 March 2015 2015 2014 Notes 000 000 Fixed Assets Tangible assets 8 1669 1788 Investments 9 12518 9252 14187 11040 Current Assets Stock 10 11 13 Debtors 11 625 768 Cash at bank and in hand 12 1413 1707 2049 2488 Creditors amounts falling due within one year 13 1568 1426 Net current assets 481 1062 Total assets less current liabilities being net assets 14668 12102 Represented by Funds Unrestricted General 15 14668 12102 Total funds 14668 12102 The financial statements on pages 41 to 53 were approved and authorised for issue by the Trustees on 3rd August 2015 and were signed on their behalf by Sir Bill Callaghan Derrick Farthing Chair of the Board of Trustees Vice Chair of the Board of Trustees 42 Balance Sheet Cash Flow Statement 31 March 2015 2015 2014 Notes 000 000 Net cash flow from operating activities 19a 2238 2091 Returns on investments and servicing of finance COIF investment income 18 92 Bank interest receivable 4 5 22 97 Capital expenditure and financial investment Purchase of tangible fixed assets 161 207 Sale of tangible fixed assets 24 14 Purchase of investments 2417 4344 Sale of investments 2839 2554 1698 Decreaseincrease in cash in the year 19b 294 490 Reconciliation of net cash flow to movement in net funds 2015 2014 000 000 Decreaseincrease in cash in the year being movement in net funds in the year 294 490 Net funds at 1 April 1707 1217 Net funds at 31 March 19b 1413 1707 43 1. Accounting Policies Basis of preparation The financial statements have been prepared under the historic cost convention with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities SORP 2005 issued in March 2005 applicable UK Accounting Standards and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are set out below. Incoming resources All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income income from charitable activities includes fee income. Fee income represents fees receivable for the provision of examination and accreditation. Income receivable against certain examination schemes has been deferred where it relates to the provision of services not yet undertaken. The income received which does not relate to the current financial year is deferred to subsequent years. investment income is recognised on an accruals basis. Resources expended Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. The following specific policies are applied to particular categories of expenditure charitable activities include expenditure associated with the setting and marking of examination papers accreditation of training course providers and publication of syllabuses past papers and examiners reports and include both the direct costs and support costs relating to these activities. governance costs include those incurred in the governance of the charity and its assets and are primarily associated with long term strategy and constitutional and statutory requirements. support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources e.g. staff costs by the time spent and other costs by their usage. Notes to Financial Statements 31 March 2015 44 Notes to Financial Statements 1. Accounting Policies continued Tangible fixed assets Fixed assets are stated at historical cost. Depreciation is calculated so as to write off the cost of an asset over the useful economic life of that asset as follows Freehold land Nil Freehold buildings 2 on cost Fixtures and fittings 10 25 on cost Office equipment 10 25 on cost Computer equipment 20 25 33 on cost Motor vehicles 25 on cost Stocks Stocks which comprise printed and other materials are stated at the lower of cost and net realisable value. Provision is made for obsolete and slow-moving items. Investments Investments are stated at market value. Movements in the valuation of investments are included within gains and losses in investment assets in the Statement of Financial Activities. Long term investments are classified as fixed assets. Short term investments are classified as current assets. Operating leases Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against resources on a straight line basis over the lease term. Pension costs Contributions in respect of the pensions for staff are charged against resources arising for the year in which they are payable to the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. Funds structure All funds are unrestricted income funds. They are available for use at the discretion of the trustees in furtherance of the general charitable objectives. Foreign currencies Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities. 45 Notes to Financial Statements continued 31 March 2015 2. Investment Income 2015 2014 000 000 COIF investment income 18 92 Bank interest receivable 4 5 22 97 3. Incoming Resources from Charitable Activities The income was primarily from the operations of the examination board. 2015 2014 restated 000 000 Income from Assessments UK 2657 2331 Outside UK 4550 4145 7207 6476 Income from Course Providers UK 736 763 Outside UK 994 1076 1730 1839 Income from Publications UK 35 50 Outside UK 61 94 96 144 Total 9033 8459 The comparatives have been restated as a result of the reclassification of an income stream. 46 Notes to Financial Statements 4a. Operations of Examination Board Course Total Total Examinations Providers Publications 2015 2014 000 000 000 000 000 Costs directly allocated to activities Staff costs 1572 534 12 2118 2038 Direct examination board costs 1623 431 2 2056 2029 Support costs allocated to activities Staff costs 1133 277 15 1425 1105 Premises costs 76 18 1 95 162 Office administration 197 48 2 247 185 Travel 49 12 1 62 48 Legal and professional 211 51 3 265 284 Marketing 223 54 3 280 235 Computing 383 93 5 481 286 Depreciation 144 35 2 181 156 Support costs total 2416 588 32 3036 2461 Total 5611 1553 46 7210 6528 Support costs are allocated on a basis consistent with the use of resources. 4b. Governance Costs 2015 2014 000 000 Governance includes the following costs Meeting expenses 35 16 Chief Executives department 69 53 Audit legal and other costs 24 25 128 94 47 5. Net Incoming Resources is Stated After Charging 2015 2014 000 000 Depreciation on owned assets 181 156 Loss on disposal of assets 75 4 Auditors remuneration for audit services 14 14 Operating lease rentals plant and machinery 55 32 Trustee indemnity insurance 4 4 6. Employees 2015 2014 000 000 Staff costs consists of Wages and salaries 2840 2441 Principal examiners 14 14 Social security 293 260 Temporary staff 45 82 Pension costs 237 169 3429 2966 The number of employees whose emoluments salaries and benefits in kind in excess of 60000 for the year fell within the following bands 2015 2014 No. No. 60000 to 69999 7 5 110000 to 119999 1 120000 to 129999 1 During the year the charity paid money purchase pension contributions in respect of the above higher paid individuals amounting to 50288 2014 42109. The average number of full time equivalent employees during the year was as follows 2015 2014 No. No. Governance finance and office administration 33 25 Qualification development assessment administration logistics setting marking and accreditation 55 50 88 75 Notes to Financial Statements continued 31 March 2014 48 Notes to Financial Statements 7. Trustees Emoluments The Trustees of NEBOSH received no remuneration for their services. During the year travel accommodation and incidental expenses amounting to 5432 were reimbursed to 10 Trustees 2014 5367 to 10 Trustees. 8. Tangible Fixed Assets Freehold Fixtures land and and Office Computer Motor buildings fittings equipment equipment vehicles Total 000 000 000 000 000 000 Cost At 1 April 2014 1678 209 63 465 124 2539 Additions - - - 82 79 161 Disposals - - - 110 56 166 At 31 March 2015 1678 209 63 437 147 2534 Depreciation At 1 April 2014 234 115 48 295 59 751 Charge for year 30 29 5 80 37 181 Disposals 26 41 67 At 31 March 2015 264 144 53 349 55 865 Net book value At 31 March 2015 1414 65 10 88 92 1669 At 31 March 2014 1444 94 15 170 65 1788 49 9. Investments Market Transfers Market value at indeposits Disposal Net gain value at 010413 received proceeds loss 310314 000 000 000 000 000 COIF deposit account 3699 2417 2398 3718 COIF accumulation units fund 4905 2198 754 7856 COIF property fund accumulation 48 200 26 274 COIF equity investment fund 600 69 670 9252 4815 2398 849 12518 2015 2014 000 000 Historical cost 10616 8199 All of the above investments are held primarily to provide an investment return for the charity. The net gain above is split as follows 2015 000 Realised gain on disposal Unrestricted gain on valuation 849 849 10. Stock 2015 2014 000 000 Examination printed stock 3 3 General stationery 1 1 Publications 7 9 11 13 Notes to Financial Statements continued 31 March 2014 50 Notes to Financial Statements 11. Debtors 2015 2014 000 000 Fees receivable 463 524 Prepayments and accrued income 162 244 625 768 12. Cash At Bank And In Hand 2015 2014 000 000 Bank current and business reserve accounts 1412 1706 Cash balance 1 1 1413 1707 13. Creditors amounts falling due within one year 2015 2014 000 000 Trade creditors 149 178 Taxation and social security 78 79 Accruals 591 397 Deferred income - Assessment fees and course provider fees received in advance 750 772 1568 1426 Deferred income comprises assessment fees and course provider fees received in advance. 2015 000 Movement on deferred income Deferred income brought forward 772 Released in year 772 Deferred in year 750 Deferred income carried forward 750 51 14. Pension Contributions The charity contributes to a money purchase Group Personal Pension Scheme with Standard Life up to 30 June 2014 and Royal London from 1 July 2014. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund. 2015 2014 000 000 Contributions payable by the charity for the year 237 169 15. Reconciliation of Movement in Funds At 1 April Incoming Outgoing Investment At 31 March 2014 Resources Resources Gains 2015 000 000 000 000 000 Unrestricted Funds General fund 12102 9055 7338 849 14668 16. Financial Commitments At 31 March 2015 the charity had annual commitments under non-cancellable operating leases as follows Plant and machinery 2015 2014 000 000 Expiring within 2-5 years 61 55 17. Related Party Transactions 2 Trustees received 4600 during the year in their capacity as examiners 2014 2 Trustees received 1934 in their capacity as examiners. No other transactions with related parties were undertaken which are required to be disclosed under Financial Reporting Standard 8. 18. Capital Commitments As at 31 March 2015 the charity had contractual capital commitments of Nil 2014 2484. Notes to Financial Statements continued 31 March 2014 52 Notes to Financial Statements 19. Notes on the Cash Flow Statement a Reconciliation of net incoming resources to net cash flow from operating activities 2015 2014 000 000 Net incoming resources 1717 1934 Investment income 22 97 Net incoming resources before revaluation and investment income 1695 1837 Depreciation note 8 181 156 Loss on disposal of tangible fixed assets 75 4 Decreaseincrease in stock 2 5 Decreaseincrease in debtors 143 39 Increase in creditors 142 138 Net cash inflow from operating activities 2238 2091 b Analysis of changes in net funds 1 April 31 March 2014 Cash flows 2015 000 000 000 Bank current and reserve accounts and cash in hand 1707 294 1413 1707 294 1413 53 Dominus Way Meridian Business Park Leicester LE19 1QW Telephone 44 0116 263 4700 Email infonebosh.org.uk www.nebosh.org.uk National Examination Board in Occupational Safety and Health