NEBOSH Annual Report and Financial Statements for the year ...

The National Examination Board in Occupational Safety and Health

NEBOSH

Annual Report and Financial

Statements for the year ended

31 March 2015

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Company Number: 2698100

Charity Number: 1010444



Contents

Chair’s Foreword 4

Strategic Report 6

Governance Report 29

Report of Trustees’ Approval 36

Independent Auditor’s Report to the Members of the National Examination Board in Occupational Safety and Health 37

Statement of Financial Activities 39

Balance Sheet 40

Cash Flow Statement 41

Notes to Financial Statements 42

Registered Office Dominus Way Meridian Business Park Leicester LE19 1QW Telephone: +44 (0) 116 263 4700 Email: [email protected]

www.nebosh.org.uk Registered in England and Wales Company Number 2698100 Registered Charity Number: 1010444


mailto:[email protected]

http://www.nebosh.org.uk/

The National Examination Board in Occupational Safety and Health Chair’s Foreword

Chair’s 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 HSE’s 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.

Britain’s 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 2011/12 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 Queen’s 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. 2014/15 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 Queen’s 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 National Examination Board in Occupational Safety and Health Chair’s Foreword

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


The National Examination Board in Occupational Safety and Health Strategic Report

Strategic Report

NEBOSH is delighted to report continued growth and expansion in 2014/15, despite less buoyant

trading conditions in some of our key international markets.

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 2014/15.

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 2014/15, up by 8,187 to 176,234, 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 2013/14. 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 2013/14.

Growth in registrations has resulted in our annual income rising to a record £9,055k this year, up by

6% from 2013/14. Coupled with excellent investment gains, our reserves have increased by a further

£2,566k. 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 2014/15 indicates a return to

growth. We look forward to next year with a positive outlook.



Qualifications

New Qualifications

2014/15 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 UK’s 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.

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 world’s 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.

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 2014/15 there were 10,936 registrations worldwide, up by 2,714 (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 Work’s 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.



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).

Figure 1 Unit Registrations for the National and International General Certificate over the last

three years

For those seeking a long-term career in occupational health and safety, NEBOSH’s 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 UK's 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.

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The International General Certificate is by far our most popular qualification. There were 95,677

examination registrations in 2014/15, 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

39,329 in 2014/15. It remains our second most popular qualification.

During 2014/15 we made alterations to the National General Certificate and International General

Certificate syllabuses, to reflect changes made to HSG65 - the UK Health and Safety Executive’s 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 175,000th 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 RNLI’s

(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.”

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 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.

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

2013/14, to 5,943 (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 2014/15, particularly in London and the South East.

During 2014/15 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 2013/14, registrations for the NEBOSH International Certificate in Construction Health and Safety (ICC) increased by more than 130% to 1,340 and we are pleased to report that interest in this

relatively new qualification continues to grow. Registrations grew by a further 8% to 1,445.

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 3,620 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 and/or management

responsibilities.



Figure 2 Registrations for NEBOSH Specialist Certificates over the last 3 years

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 2014/15 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.

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 2013/14. There were

1,268 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

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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 2014/15 to

1,977 compared to a record 2,216 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

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.

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Figure 4 Cumulative pass rates on NEBOSH International Diploma at the end of March 2015

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.

Figure 5 Cumulative pass rates on NEBOSH National Diploma at the end of March 2015

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During 2014/15, 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.

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 2014/15, 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 2014/15 registrations for the NEBOSH Certificate in Environmental Management fell by 6% to

2,447 (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 2015/16.



NEBOSH Top Candidates for the Year 2014/15 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 & 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



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 2014/15, 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 Master’s Degree status.

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 90,436 per annum to 176,234. 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 2014/15. 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 of 49 C:\Users\LWY\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WDPX387R\NEBOSH Annual Report and Financial Statements - Charity Commission Version.docx


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 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 2014/15 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 2013/14 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.

International Development In 2014/15 we celebrated our achievement of the Queen’s 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

23,000 to around 82,000. 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 2014/15. 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 2014/15.

Overseas registrations increased to 114,536, up by 6,047 (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 2013/14 to 122 in 2014/15. 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 2014/15, 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 Queen’s Award help to enhance our

reputation overseas.

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 2014/15, 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.

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 16,000 ‘likes’ compared to around 10,000 at the end of 2013/14. Of the

244 people who have provided a review of NEBOSH on Facebook, 188 (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 5,500 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 2014/15 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 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.

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 1,750 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.



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 2014/15, 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. VTCT’s Facility Officer, Nick Shaw, was tasked with the purchase and complete

refurbishment of the organisation’s 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)

The 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 2013/14, 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.

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and improving health, safety and the environment in workplaces worldwide, and we are proud of

Teresa’s involvement and contribution.

International Network of Safety and Health Practitioner Organisations

(INSHPO)

During 2014/15 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.

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 9001:2008 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 2015/16,

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 Sarah’s previous

role. Tania moves from NEBOSH’s 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.

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.

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

lecturer’s 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 year’s 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.

Financial Review Total income for the year 2014/15 increased to £9,055k from £8,556k in 2013/14. 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 £14,668k

(2014: £12,102k).

Investment Policy

After giving due consideration to the Charity’s 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 Charity’s

Investment Policy annually.

The Charity’s Investment Portfolio is entrusted to CCLA, an investment management company solely of 49 C:\Users\LWY\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WDPX387R\NEBOSH Annual Report and Financial Statements - Charity Commission Version.docx


for not-for-profit organisations, with an investment management agreement. The Trustees have asked

CCLA to adopt a benchmark of RPI+4% 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 £8,999,422 of

free reserves, after a deduction of £4m designated by the Trustees after the year end for further

development of the Charity’s 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


The National Examination Board in Occupational Safety and Health Governance Report

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


Mrs Emma Roach BSc DipFM CMIOSH ICIOB SIIRSM


Appointed October 2014

Mr Mike Weaver MSc CPFA

Independent Trustee



Mr Colin Willis BA (Hons) Dip NEBOSH Grad IOSH MIfL


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 NEBOSH’s 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.

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

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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 Commission’s 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

NEBOSH’s 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 and/or 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 NEBOSH’s

qualifications, to authorise other organisations to set and mark examinations or other systems

of assessment leading to NEBOSH’s qualifications and to establish conditions for such



authorisation;

• to form, where appropriate, part of a national framework of vocational qualifications;

• to issue evidence of NEBOSH’s awards of qualifications to successful candidates; and

• to establish syllabuses related to NEBOSH’s qualifications.

Strategies for achieving NEBOSH’s 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.

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 company’s 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.


The National Examination Board in Occupational Safety and Health Report of Trustees’ Approval

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


The National Examination Board in Occupational Safety and Health Independent Auditor’s Report

Independent Auditor’s 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 39 to 49. 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 company’s 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 company’s members those matters we are required to state to them in an

auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the charitable company and the charitable company’s

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 pages 34 and 35, 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 Board’s (APB’s) 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

Council’s website at http://www.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 company’s affairs as at 31 March 2015 of 49 C:\Users\LWY\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\WDPX387R\NEBOSH Annual Report and Financial Statements - Charity Commission Version.docx

http://www.frc.org.uk/auditscopeukprivate

The National Examination Board in Occupational Safety and Health Independent Auditor’s Report

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


The National Examination Board in Occupational Safety and Health Statement of Financial Activities (including Income and Expenditure Account) 31 March 2015

Statement of Financial Activities

(Including Income and Expenditure Account) For the year ended 31 March 2015 Total Funds 2015 2014 Notes £’000 £’000 (restated) Incoming resources Incoming resources from generated funds: Investment income 2 22 97 Incoming resources from charitable activities: Operations of Examination Board 3 9,033 8,459 Total incoming resources 9,055 8,556 Resources expended Charitable activities: Operations of Examination Board 4(a) 7,210 6,528 Governance costs 4(b) 128 94 Total resources expended 7,338 6,622 Net incoming resources before other recognised gains 1,717 1,934 Realised gains on investment assets 9 - 72 Net income for the year 1,717 2,006 Unrealised gains on investment assets 9 849 208 Net movement of funds in year 2,566 2,214 Reconciliation of funds Total funds brought forward 12,102 9,888 Total funds carried forward 15 14,668 12,102 The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.


The National Examination Board in Occupational Safety and Health Balance Sheet 31 March 2015 Company Number: 2698100

Balance Sheet

31 March 2015 Notes 2015 2014 £’000 £’000 FIXED ASSETS Tangible assets 8 1,669 1,788 Investments 9 12,518 9,252 14,187 11,040 CURRENT ASSETS Stock 10 11 13 Debtors 11 625 768 Cash at bank and in hand 12 1,413 1,707 2,049 2,488 CREDITORS: amounts falling due within one year 13 (1,568) (1,426) NET CURRENT ASSETS 481 1,062 TOTAL ASSETS LESS CURRENT LIABILITIES 14,668 12,102 BEING NET ASSETS REPRESENTED BY: FUNDS Unrestricted: General 15 14,668 12,102 TOTAL FUNDS 14,668 12,102 The financial statements on pages 39 to 49 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 Vice Chair of the Board of Trustees Trustees


The National Examination Board in Occupational Safety and Health Cash Flow Statement 31 March 2015

Cash Flow Statement

31 March 2015

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

2015 £’000

2014 £’000

(Decrease)/increase in cash in the year being movement in net funds in the year

(294)

490

Net funds at 1 April 1,707 1,217 Net funds at 31 March 19b 1,413 1,707

Note 2015 £’000

2014 £’000

NET CASH FLOW FROM OPERATING ACTIVITIES 19a 2,238 2,091 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 (2,417) (4,344) Sale of investments - 2,839 (2,554) (1,698) (DECREASE)/INCREASE IN CASH IN THE YEAR 19b (294) 490


The National Examination Board in Occupational Safety and Health Notes to Financial Statements 31 March 2015

Notes to Financial Statements

31 March 2015 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.


The National Examination Board in Occupational Safety and Health Notes to Financial Statements (continued) 31 March 2015

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.

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 £’000 £’000 (restated) Income from Assessments UK 2,657 2,331 Outside UK 4,550 4,145 7,207 6,476 Income from Course Providers UK 736 763 Outside UK 994 1,076 1,730 1,839 Income from Publications UK 35 50 Outside UK 61 94 96 144 Total 9,033 8,459 The comparatives have been restated as a result of the reclassification of an income stream.

4. (a) OPERATIONS OF EXAMINATION BOARD Course Total Total Examinations Providers Publications 2015 2014 £’000 £’000 £’000 £’000 £’000 Costs directly allocated to activities Staff costs 1,572 534 12 2,118 2,038 Direct examination board costs 1,623 431 2 2,056 2,029

Support costs allocated to activities Staff costs 1,133 277 15 1,425 1,105 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 2,416 588 32 3,036 2,461 Total 5,611 1,553 46 7,210 6,528 Support costs are allocated on a basis consistent with the use of resources.



4. (b) GOVERNANCE COSTS 2015 2014

£’000 £’000 Governance includes the following costs:

Meeting expenses 35 16 Chief Executive’s department 69 53 Audit, legal and other costs 24 25

128 94

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 2,840 2,441 Principal examiners 14 14 Social security 293 260 Temporary staff 45 82 Pension costs 237 169 3,429 2,966

The number of employees whose emoluments (salaries and benefits in kind) in excess of £60,000 for the year fell within the following bands:

2015 2014 No. No. £60,000 to £69,999 7 5 £110,000 to £119,999 - 1 £120,000 to £129,999 1 - During the year the charity paid money purchase pension contributions in respect of the above higher paid individuals amounting to £50,288 (2014: £42,109). The average number of full time equivalent employees 2015 2014 during the year was as follows: No. No.

Governance, finance and office administration 33 25 Qualification development, assessment administration / logistics, setting, marking and accreditation 55 50 88 75



7. TRUSTEES’ EMOLUMENTS

The Trustees of NEBOSH received no remuneration for their services. During the year, travel, accommodation and incidental expenses amounting to £5,432 were reimbursed to 10 Trustees (2014: £5,367 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 1,678 209 63 465 124 2,539 Additions - - - 82 79 161 Disposals - - - (110) (56) (166) At 31 March 2015 1,678 209 63 437 147 2,534

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 1,414 65 10 88 92 1,669

At 31 March 2014 1,444 94 15 170 65 1,788

9. INVESTMENTS

Market Transfers in/ Market value at deposits Disposal Net gain/ value at 01/04/14 received proceeds (loss) 31/03/15 £’000 £’000 £’000 £’000 £’000 COIF deposit account 3,699 2,417 (2,398) - 3,718 COIF accumulation units fund 4,905 2,198 - 754 7,856 COIF property fund accumulation 48 200 - 26 274 COIF equity investment fund 600 - - 69 670

9,252 4,815 (2,398) 849 12,518 2015 2014

£’000 £’000 Historical cost 10,616 8,199 All of the above investments are held primarily to provide an investment return for the charity.



9. INVESTMENTS (continued) 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

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 1,412 1,706 Cash balance 1 1 1,413 1,707

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 1,568 1,426



13. CREDITORS: amounts falling due within one year (continued)

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

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 12,102 9,055 (7,338) 849 14,668

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 £4,600 during the year in their capacity as examiners, (2014: 2 Trustees received £1,934 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: £2,484).



19. NOTES ON THE CASH FLOW STATEMENT (a) RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATING ACTIVITIES

2015 £’000

2014 £’000

Net incoming resources 1,717 1,934 Investment income (22) (97) Net incoming resources before revaluation and investment income

1,695

1,837

Depreciation (note 8) 181 156 Loss on disposal of tangible fixed assets 75 4 Decrease/(increase) in stock 2 (5) Decrease/(increase) in debtors 143 (39) Increase in creditors 142 138 Net cash inflow from operating activities 2,238 2,091

(b) ANALYSIS OF CHANGES IN NET FUNDS

1 April 2014 £’000

Cash flows

£’000

31 March 2015 £’000

Bank current and reserve accounts and cash in hand

1,707

(294)

1,413

1,707 (294) 1,413


NEBOSH Annual Report and Financial Statements for the year ...

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