Welcome to this year's annual report for the Crescent Purchasing Group (CPL Group). It goes without saying that this has been a challenging year for all and I firstly want to commend the staff of Crescent Purchasing Consortium (CPC) and Tenet for the way they adapted to working remotely, always putting the members needs first.
CPL Group have continued to invest in the education sector and have targeted help to those who need it in these difficult times. As we hopefully navigate our way through this pandemic and come out the other side, CPC will be a constant in offering assistance to the education sector whether through purchasing frameworks or the services offered by Tenet.
What is clear to me as we hopefully near the end of the pandemic is that efficient purchasing and securing value for money has never been more important and Colleges and schools will see CPC as a trusted partner offering solutions to an ever-increasing funding problem.
Finally, can I offer my thanks to our valued customers and suppliers for their continued support and hope everyone has a prosperous and most importantly, safe period ahead.
Head of Procurement
The Contracting Team experienced a demanding year with the introduction of several new frameworks as well as the retendering of existing frameworks.
These were all delivered which is testament to the professionalism and commitment of the team. I am also delighted to report that their camaraderie and support for each other as a team was exemplary particularly during such a difficult year.
The Contracting Teams partnership with the Department for Education (DfE) went on hold during the year as a consequence of Covid19. 12 Frameworks remain supported and many of our other frameworks are under consideration for recommendation by the DfE. We look forward to the opportunities that this partnership will undoubtedly bring for the organisation.
Tenet has been operational throughout 2019/20 with demand from customers continuing throughout the national lockdown. Tenet’s two core procurement services have both exceeded the previous year’s income, which is exceptional under the circumstances.
CPL Group will be a constant in offering assistance to the education sector as we hopefully navigate our way through this pandemic and come out the other side, whether through purchasing frameworks or the services offered by Tenet.
The team supported 43 contracts nationwide. Provision of days on-site at each contract ranged from 0.5 to 5 days per week. Adjustments to the normal practice of delivering our services within our customers organisation was required part way through the year. The availability of the latest IT systems and a flexible attitude from the team ensured we quickly adapted to new working practices and all our customers continued to receive a full service.
The enhanced support received from Tenet is delivered by regional teams of procurement professionals and a network of 35 procurement colleagues, all of whom are employed by Tenet and based around the country. This range of expertise allows for the sharing of knowledge and best practice to the benefit of our customers.
The demand for this service has increased during 2019/20, with 64% of the income coming from the school and academy marketplace. The growth was projected to be higher however the COVID19 pandemic resulted in some confirmed projects being postponed until the 2020/21 financial year (at the request of the customer).
The grant funding from the CPL Group has helped many customers to gain extremely competitively priced procurement support from Tenet via the subsidised procurement consultancy fund.
Tenet Procurement Services focuses on delivering procurement support to organisations outside the education sector. Tenet delivered projects within the housing sector and supported a well-known high street fashion retailer to tender a cleaning service for 300+ stores across the UK.
Customers using Tenet Procurement Services are not from the education sector but all fully support the charitable ethos of the business and the benefits it brings to their organisation in the development of their future workforce.
The financial year produced a good return and enabled the CPL Group to benefit from additional funds to support their charitable objectives.
Tenet Education Services and Tenet Procurement Services fully support the work of the education sector. Donating 100% of our surplus to CPL Group ensures as much money as possible is retained within the sector.
The education sector continues to support Tenet and for this we are truly grateful. The forthcoming year offers more opportunities for Tenet and CPC to combine resources and deliver further improvements to the services we already deliver.
CPL Group Finance Manager
CPL Group income fell this year as a direct result of the national lockdown and in particular the closure of educational establishments during the Spring and Summer.
Although Tenet contracts were able to continue with relatively little disruption the impact on the charity was greater as framework activity diminished considerably in the final quarter of the financial year.
CPL Group was able to survive this period without the need for any staff reduction and with minimal use of the Coronavirus Job Retention Scheme introduced by the Chancellor. We acknowledge that many companies have not been so fortunate and put this down to having excellent levels of cash and revenue reserves alongside a robust financial business model.
During the year we continued to honour our promise to reinvest surplus back into the education sector with over £325k being spent primarily in the form of grants to fund student activities and welfare. Furthermore, in November 2019 the Board committed a further £500k into the free reserves fund for further reinvestment.
The balance of funds available for reinvestment was £657k at the year end and whilst projects have been placed on hold whilst we concentrated on protecting cashflow through the year we feel confident that funds can start to be released during 2021.
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|Income||2020£||2019£ (restated)||Assets||2020£||2019£ (restated)|
|Investments||15,658||11,339||Other fixed assets||163,566||89,162|
|Total income||3,446,600||3,602,794||Net current assets||3,537,272||3,499,487|
|Operational Expenditure||3,445,934||3,107,285||Provision for liabilities||(2,425,000)||(616,000)|
|Operational Net income||666||495,509||Total Net Assets||1,765,838||3,587,649|
|Reinvestment to sector||325,477||17,785|
|Net income||(324,811)||477,724||Financed by|
|Actuarial (loss)/gain on defined benefit pension schemes||(1,497,000)||(558.000)||Pension||(2,425,000)||(616,000)|
|Net movement in funds||(1,821,811)||(80,276)||Total reserves||1,765,838||3,587,649|
Looking ahead, the Group has sufficient reserves and cash to withstand events such as experienced during 2020 though the impact has resulted in a much more cautious approach to the 5-year business plan and budgets. Thresholds have been put into place should income levels drop again which will trigger appropriate responses to enable business continuity.