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2022-09-30-accounts

Company number: 2876147 Charity number: 1034750

Open College Network London Region

Report and financial statements For the year ended 30 September 2022

Open College Network London Region (OCNLR)

Contents

For the year ended 30 September 2022

Reference and administrative information ............................................................................................................. 1 Trustees' annual report ................................................................................................................................................ 2 Independent auditor's report ................................................................................................................................... 13 Statement of financial activities (incorporating an income and expenditure account) ............................ 17 Balance sheet ............................................................................................................................................................... 18 Statement of cash flows ............................................................................................................................................. 19 Notes to the financial statements ........................................................................................................................... 20

Open College Network London Region (OCNLR)

Reference and administrative information

For the year ended 30 September 2022

Company number 2876147 Charity number 1034750 Registered office and operational address 15 Angel Gate, City Road, London, EC1V 2SF Country of registration England Country of incorporation United Kingdom

The company trades under the name OCN

London.

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

L. Arnold-Courtney Deputy Chair (Quality) K. Caplin J. Farmer N. Foster P. Pledger Chair P. Wilson (resigned 31 August 2022) J. Dishman (resigned 16 June 2022) Key management Mr Federico Carlos Chief Executive personnel Cubillo-Barsi Paul Browning Deputy Chief Executive Omovbera Erhenede Head of Finance and Company Secretary Bankers National Westminster Bank Plc 166 Camden High Street, London, NW1 0NW Solicitors GRAYS SOLICITORS Duncombe Place, York, YO1 7DY Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

1

Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

The trustees present their report and the audited financial statements for the year ended 30 September 2022.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Purposes and aims

The charity is a company limited by guarantee and is constituted under a Memorandum and Articles of Association. The Memorandum of Association is dated 19 November 1993 and was amended on 13 January 1994, 26 February 1998 and 17 May 2005. A new Articles of Association was adopted by special resolution on 9 May 2008. Further changes were agreed by Board in December 2019 and are currently with the Charities Commission pending approval. Its registered charity number is 1034750 and its registered company number is 2876147. The charity trades under the name OCN London.

Open College Network London Region (OCNLR) is an awarding organisation (AO) approved by the Office of Qualifications and Examinations Regulation (OFQUAL) to offer national qualifications. As an Access Validating Agency (AVA), OCNLR is licensed by the Quality Assurance Agency for Higher Education (QAA) to validate and award certificates on QAA-recognised Access to Higher Education Diplomas. The Board of Trustees is ultimately responsible for the operation of both licences.

None of the trustees receive remuneration or other benefit from their work with the charity.

OBJECTIVES AND ACTIVITIES

OCNLR exists to support learning and widen participation through achievement of credit-based qualifications, regulated and unregulated. OCNLR aims are the advancement of the education of the public in one or more of the following ways:

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

PUBLIC BENEFIT

In setting its objectives for the year the Board of Trustees has regard to both the Charity Commission's general guidance on public benefit and the mission of OCNLR that supports education for learners who have benefitted least from existing provision and can be encouraged to progress to achieve their potential. The activities currently carried out for the public benefit by the charity can be broadly categorised into the following areas:

The majority of centres are not-for-profit organisations, delivering education and training for adults. Many of them target the educationally disadvantaged which is critical to supporting OCNLR to achieve its aims. A significant number of centres, namely those in the traditional further and adult education sectors, are eligible to access public funding via the Education and Skills Funding Agency (ESFA) for their delivery of our qualifications.

The outcomes of these activities for 2021-22 are identified in the following sections.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Achievements and performance

The charity's main activities and who it tries to help are described below. All its charitable activities focus on education and are undertaken to further OCNLR's charitable purposes for the public benefit.

OCNLR acts to accredit courses and develop regulated qualifications in partnership with its centres, register learners on those courses and qualifications, confirm the learners' achievement of credits and qualifications through an external quality assurance process and then to certificate those achievements. In many cases these certificates are the first tangible evidence of learning and achievement those learners will have received.

OCNLR is not directly involved with the delivery of learning; it acts to formally recognise a centre's fitness to provide quality assured learning programmes that may consist of its qualifications (regulated) or accredited courses (unregulated). In each case OCNLR is concerned with confirming that the offer is appropriate and coherent at the curriculum planning stage and then is quality assured to ensure comparability of standards and to safeguard the learner experience.

Practically our aims are pursued beyond the core functions of the organisation where we seek to foster an understanding and an expansion of the benefits of accreditation.

In 2021-22 learner registrations on our national regulated qualifications were above projections despite further disruption during the year as a result of the COVID 19 pandemic. The transition that many centres made to remote teaching and assessment during the previous year enabled them to continue with delivery of our qualifications and accredited courses during the winter 2021-and for the remainder of the academic year.

The maximum number of organisations in membership throughout the reporting period was 359 plus 8 associate members (those organisations which do not offer OCNLR accredited educational programmes but want to support OCNLR aims). There was an increase in new centres, including large further education colleges, and a small number of resignations over the year, almost all of which were centres that had been inactive.

There were healthy registrations on Health & Safety qualifications and vocations allied to medicine. Demand for the newly developed Essential Digital Skills qualifications (EDSQs) increased significantly compared to 2019-20 as a result of continued focus and development.

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Achievements against 2021-22 strategic priorities

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Beneficiaries of our services

Learner registration and certification

In 2021-22 OCNLR received over 37,000 learner registrations, representing an increase of 18% compared to the previous financial year. Learner demographics were as follows: 56% female; 56% of a Black and Minority Ethnic background; 45% 16-18 year olds; and 47% of learners resident in the top 25% of deprived wards.

There were 2,772 learners registered on Access to HE courses in 2021-22 of which 1,985 achieved the full Diploma (71.6%). Results were submitted to UCAS by the July deadline for all learners, except for those who had appealed. The learners who had achieved the Access to HE Diplomas received their results ahead of A level results day. Hence, they were able to confirm their acceptance of higher education places in a timely fashion.

Sponsorship

As part of its commitment to adult learners OCNLR sponsored the Keith Fletcher Access to HE Learner Awards and Michael Sargent Access to HE Bursary Awards were awarded to four Access to HE Diploma learners in recognition of their outstanding academic achievement and outstanding commitment to study. All four learners had overcome the particularly challenging circumstances and barriers to learning in order to achieve their Access to HE Diplomas.

In addition, OCNLR sponsored the Access to HE student of year award as part of a student awards ceremony hosted by one of our FE college customers.

Financial review

OCNLR reported a £147,579 surplus on a turnover of £1,848,309 after a year in which trustees had set a surplus budget of £17,271.

The key sources of income continue to be registration and certification of learners on qualifications developed by the charity, accredited courses and annual fees charged to the approved centres for delivering the qualifications. The income from qualifications increased by 16% on the 2020-21 outturn and exceeded budget. The increase indicates ongoing growth in Ofqual qualifications, with considerable numbers of registrations on small health and wellbeing qualifications and an increase in Essential Digital Skills Qualifications, all of which are intended to meet the needs of learners who require a foundation of learning before they are ready to progress to higher levels of learning and into better employment.

Trustees continued to monitor income carefully and received information on major trends on a quarterly basis. OCNLR has good financial management with tight control of cash and debtors.

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Principal risks and uncertainties

The Board of Trustees takes responsibility for managing risk. They assess the major risks to which the charity is exposed, in particular those related to the operations and finances, and are satisfied that appropriate systems and procedures are in place to mitigate those risks. The pandemic continued to present risks but of a less dramatic nature and mitigations were already in place to support any risks to business continuity. These included continuing to raise awareness of qualifications/products suitable for online delivery, investing resource in the development of materials to support remote delivery and allocating additional resource to support the implementation of both the Ofqual and QAA contingency regulatory frameworks and the quality assurance processes that were required to be able to certificate learners.

External quality assurance and curriculum support continued through remote means and in person. Video meetings and webinars continued to be used to provide additional support and were very well-received and appreciated by centres. The staff team have worked successfully under a hybrid model of working; both from home through our cloud-based systems and typically attending the office on average twice a week. The productivity of the organisation does not appear to have been detrimentally affected by these ongoing arrangements and the health and well-being of staff has been monitored through one to one and team meetings.

In addition, risks have emerged through the Government’s continued review of regulated qualifications, particularly those at Level 2 and below, which represents 79% of OCNLR’s regulated offer. The outcomes and impact of the review are not yet known, although Trustees have been working closely with the executive team to ensure that effective plans and in place to mitigate against potential impact.

Reserves policy and going concern

In accordance with its stated policy, OCNLR holds reserves to cover 3 months' expenditure in order to provide the necessary resources should the company need to be wound up. The reserves would be needed to meet liabilities relating to learners, centres, staff and lease costs. At the end of 2020-21 financial year, the total unrestricted funds were £695,677. The reserves at 2021-22 year-end are £843,256. The calculated costs of winding up the company based on the current staff complement is £534,000.

The money held by OCNLR in reserves is invested prudently with UK high street banks.

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Remuneration policy

OCNLR is committed to ensuring a proper balance between (i) paying our staff and others who work for us fairly so that we attract and retain the best people for the job and (ii) careful management of our charity funds. In so doing we ensure the greatest effectiveness in delivering our charitable objectives and meeting the needs of our beneficiaries. Salaries for all posts comprise a band made up of a series of evenly distributed salary points.

In June each year, the trustees determine whether the salary points for all staff should be adjusted for the forthcoming financial year beginning 1[st ] October, to reflect changes in the cost of living. The trustees' considerations begin with an assumption that salaries should be adjusted to match inflation (specifically the Consumer Price Index) over the preceding 12 months. They then determine whether this is appropriate in the context of:

Cost of living adjustments are applied equally to all staff.

For OCNLR to run successfully, a wide range of skills are required, and it is important to pay staff appropriately to ensure that we can recruit people with the right skills. Retention of staff is also important so as to benefit from their accumulated knowledge and skills in what is a niche sector. This is in preference to the disruption and expense of recruitment, especially as many staff have detailed knowledge that is unique to them in the organisation and could not be quickly replaced. OCNLR staff pay scales are set with this in mind.

Fundraising

OCNLR does not engage in public fundraising and does not use professional fundraisers or commercial participators. OCNLR nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and OCNLR received no complaints relating to its fundraising practice.

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Plans for the future

The financial outlook for OCNLR in 2022-23 is positive. The work invested in qualification and materials development and promotion this year has led to additional courses in place for 2022-23 and new centres have joined in order to deliver qualifications in 2021-22, including several large FE colleges and employers. The impact of the DfE's rolling programme of removing funding from qualifications with low or no registrations has been mitigated by the sustained promotion and subsequent take-up of the new Essential Digital Skills qualifications.

Additionally, a new 3-year strategic plan, covering the period 2022-2025, was agreed by the Board of Trustees in June 2022. The five strategic aims of the new plan are to:

The previous CEO retired in January 2022 after 8 years in post and 26 years in the organisation. A successor was appointed and started in February 2022 with a full induction and transition coordinated by the Chair.

Structure, governance and management

A Search Committee of Trustees has been established to seek new Trustees to address gaps in skills, expertise and/or representation of the breadth of membership on the Board. A specialist recruitment organisation, Peridot Partners, has been commissioned to advertise for, and support the assessment of, trustee applicants. Following interviews, the Board approves the appointment of recommended new trustees.

New trustees are provided with a welcome pack that includes information about the organisation and its governance (including Memorandum & Articles of Association), contextual information, Charity Commission Guidance on being a Trustee and forms to complete including any conflict of interests for recording on the Register of Interests and Declaration of Eligibility and Suitability to meet the Ofqual requirements for senior officers.

The induction process follows and includes a tour of the organisation, meeting the staff and meeting with the Chief Executive for further information about their responsibilities in relation to governance of OCNLR, and a question and answer session.

OCNLR employs a full-time CEO, who is responsible for the day-to-day management of the organization, supported by his Deputy Chief Executive. Staffing matters are delegated to the CEO subject to the guidance of the Board of Trustees. The Board of Trustees delegates some responsibilities to a Quality and Standards Committee but retains overall responsibility for all strategic issues and regulatory licenses. The Board has also agreed to establish a Finance and

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

General Purposes Committee in the next financial year. The Chair of the Board is responsible for monitoring and reviewing the performance of the Chief Executive.

The organisation is a charitable company limited by guarantee, incorporated on 19 November 1993 and registered as a charity on 10 March 1994.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in the notes to accounts.

Related parties and relationships with other organisations

OCNLR continues to work in an informal partnership with Laser Learning Awards in line with our shared mission, values and aims. The objective of the collaboration is to extend the range of qualifications available to its beneficiaries, share new developments that will benefit beneficiaries and share good practice in assessment and quality assurance to enhance the learning experience for beneficiaries.

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Open College Network London Region (OCNLR)

Trustees' annual report

For the year ended 30 September 2022

Funds held as custodian trustee on behalf of others

OCNLR does not hold funds as a custodian nor acted as a custodian trustee.

Statement of responsibilities of the trustees

The trustees (who are also directors of OCNLR for the purposes of company law) are responsible for preparing the trustees' annual report 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:

The trustees are responsible for keeping adequate 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.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 30 September 2022

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the year ended 30 September 2022

was 7. The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to operate in that capacity.

The trustees' annual report has been approved by the trustees on 8 December 2022 and signed on their behalf by

Peter Pledger

Chair of OCNLR Board of Trustees

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Independent auditor’s report

To the members of Open College Network London Region

For the year ended 30 September 2022

Opinion

We have audited the financial statements of Open College Network London Region (the ‘charitable company’) for the year ended 30 September 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Open College Network London Region's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other

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Independent auditor’s report

To the members of Open College Network London Region

For the year ended 30 September 2022

information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Independent auditor’s report

To the members of Open College Network London Region

For the year ended 30 September 2022

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Independent auditor’s report

To the members of Open College Network London Region

For the year ended 30 September 2022

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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.

Joanna Pittman FCA (Senior statutory auditor) 16 January 2023

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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Open College Network London Region

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 September 2022

Note
Income from:
2
3
Reconciliation of funds:
4
Total funds carried forward
Total funds brought forward
Interest receivable
Total income
Expenditure on:
Total expenditure
Net income for the year
Charitable activities
Other trading activities
Charitable activities		 2022
2021
Total
Total
£
£
1,839,638
1,647,418
8,250
9,455
421
704
1,848,309
1,657,577
1,700,730
1,469,435
1,700,730
1,469,435
695,677
507,535
843,256
695,677
188,142
147,579

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. All income and expenditure is unrestricted.

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Open College Network London Region

Balance sheet

Balance sheet
As at 30 September 2022 Company no. 2876147
Note
Fixed assets:
9
Current assets:
10
Liabilities:
11
13
15a
Total unrestricted funds
General funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Total assets less current liabilities
Short term deposits
Unrestricted income funds:
Designated funds
Debtors
Total charity funds

Cash at bank and in hand
Tangible assets		 £
362,756
305,432
503,751		 2022
£
23,784
819,468		 £
277,065
305,025
426,354		 2021
£
22,144
690,341
1,171,939
(352,472)		 1,008,444
(318,103)
-
843,256		 100,000
595,677
843,252
-		 712,485
(16,808)
843,256 695,677
843,256 695,677
843,256 695,677

Approved by the trustees on 8 December 2022 and signed on their behalf by:

Lucy Arnold-Courtney Trustee

Peter Pledger Trustee

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Open College Network London Region

Statement of cash flows

For the year ended 30 September 2022

For the year ended 30 September 2022 For the year ended 30 September 2022 For the year ended 30 September 2022
Note
£
£
16
96,233
421
(18,850)
(18,429)
77,804
731,379
809,183
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2022
Cash flows from operating activities
Net cash provided by / (used in) investing activities
Net cash (used in) / provided by operating activities
Cash flows from investing activities:
Dividends, interest and surplus from operating activities
Purchase of fixed assets		 £
£
250,386
704
(2,712)
(2,009)
248,377
483,002
731,379
2021
77,804
731,379		 248,377
483,002
809,183 731,379

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Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

1 Accounting policies

a) Statutory information

Open College Network London Region is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address (and principal place of business) is 15 Angel Gate, City Road, London, EC1V 2SF.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. Management has considered the consequences of COVID-19 and other events and conditions, and it has determined that they do not create a material uncertainty that casts significant doubt upon the entity’s ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

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Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities includes the costs of delivering services and other educational activities undertaken to further the purposes of the charity and their associated support costs.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. The cost of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

1 Accounting policies (continued)

p) Pensions

Teacher's Pension Scheme (TPS)

The charity participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £32,817.24 (2021 £43,877).

The TPS is an unfunded multi-employer defined contribution pension scheme governed by the Teachers' Pension Scheme regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department. The latest valuation report of the TPS was prepared at 31 March 2016 and was published in March 2019. This report confirmed that the employer contribution rate for the TPS would increase from 16.48% to 23.68% although, recognising that teaching establishments work on an academic and not financial year, the Government deferred the implimentation of this increase to September 2019. Employers in addition from 1 September 2019 pay a scheme administration levy of 0.08% of pay and will be payable over the remainder of the period to March 2023 to ensure that the level of the notional fund at the next valuation of the scheme is expected to be unaffected by delay.

The charity is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the charity has taken advantage of the expemtion in FRS102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme.

Local Government Pension Scheme (LGPS)

The LGPS is multi-employer defined contribution scheme. It is contracted out of the State Second Pension. The assumption and other data that the most significant effect on the determination of the contribution levels are as follows:

as follows:
Latest actuarial valuation
31 March 2019
Actuarial method
Prospective benefits
Discount rate
5.3%
Salary scale increases per annum
3.6%
Market value of assets at date of last valuation
£6,053m
Fund Surplus £481m
Funding Level 109%

The LGPS is a multi-employer pension scheme. The charity is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the charity has taken advantage of the expemtion in FRS102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme.

Total contributions to the scheme during the year were £94,904.65, (2021 £66,193). No additional payments have been required this year to cover the deficit funded, (2020: Nil)

Income from charitable activities
Subscriptions
Other service income
Accreditation and registration income
Units Development income
Total for charitable activities		 2022
Total
£
1,571,178
10,975
225,634
31,851
1,839,638		 2021
Total
£
1,398,095
24,425
207,777
17,121
1,647,418

22

Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

Staff costs (Note 5)
Moderators' fees
Subscriptions and publications
Rents, rates and insurance
Telephone, postage and stationery
Consultancy
Printing and publishing
Travel and subsistence
Sundry expenses
Depreciation
Repairs and maintenance
Staff training and recruitment
Computer management and maintenance
Legal and professional
Bank charges and interest
Publicity and marketing
Bad debt provision
External verification
Access Revalidation
Governance costs
Governance costs
Total expenditure		 Charitable
activities
£
1,062,363
62,085
64,868
131,242
49,381
103,316
6,642
7,579
39,034
17,210
11,728
11,589
7,414
13,425
2,665
15,083
3,000
48,963
2,255
-
Governance
costs
£
15,699
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,189
2022
Total
£
1,078,062
62,085
64,868
131,242
49,381
103,316
6,642
7,579
39,034
17,210
11,728
11,589
7,414
13,425
2,665
15,083
3,000
48,963
2,255
25,189
Charitable
activities
£
916,311
63,140
69,667
106,947
41,843
96,652
7,411
6,810
3,424
18,616
10,515
3,493
7,402
2,412
2,832
6,511
3,000
64,650
2,180
Governance
costs
2021
Total
£
£
14,540
930,851
-
63,140
-
69,667
-
106,947
-
41,843
-
96,652
-
7,411
-
6,810
-
3,424
-
18,616
-
10,515
-
3,493
-
7,402
-
2,412
-
2,832
-
6,511
-
3,000
-
64,650
-
2,180
21,079
21,079
1,659,842
40,888		 40,888
(40,888)		 1,700,730
-		 1,433,816
35,619		 35,619
1,469,435
(35,619)
-
1,700,730 - 1,700,730 1,469,435 -
1,469,435

23

Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

This is stated after charging:

This is stated after charging:
2022 2021
£ £
Depreciation 17,210 18,616
Operating lease rentals:
Property 91,768 91,768
Auditor's remuneration (excluding VAT):
Audit 9,525 9,075
Other services 1,175 1,125

Staff costs were as follows:

Staff costs were as follows:
Termination costs
Operating costs of defined benefit pension schemes
Social security costs
Salaries and wages		 2022
£
845,615
92,384
127,563
12,500		 2021
£
743,377
77,374
110,099
-
1,078,062 930,851

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2022 2021
No. No.
£60,000 - £69,999 1 1
£70,000 - £79,999 - 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £188,289 (2021: £168,180).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £225 (2021: £114.60) incurred by 2 (2021: 2) members relating to attendance at meetings of the trustees.

24

Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 24 (2021: 21).

Staff are split across the activities of the charitable company as follows (head count basis):

Staff are split across the activities of the charitable company as follows (head
Administration
count basis):
Finance
Curriculum group
Quality group
Chief Executive
Information Technology		 2022
No.
2
3
2
2
5
10		 2021
No.
2
3
2
1
5
8
24 21

7 Related party transactions

A number of trustees hold positions at member organisations which in the year have engaged with OCN London. These include: L. Arnold-Courtney (UAL and City Lit), J Dishman (CU Coventry).

All transactions were on normal commercial terms and were made at arms-length.

8 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Tangible fixed assets

Tangible fixed assets
Cost

At the start of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
Depreciation
At the end of the year
Net book value
At the end of the year		 Fixtures and
fittings
£
252,631
13,482
Computer
equipment
£
170,767
5,367
Total
£
423,398
18,850
266,113 176,135 442,248
234,298
14,269		 166,955
2,942		 401,253
17,210
248,567 169,896 418,463
17,546 6,238 23,784
18,332 3,813 22,145

All of the above assets are used for charitable purposes.

25

Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

10 Debtors

For the year ended 30 September 2022
10
Debtors
11
Trade debtors
Prepayments
Other debtors
Creditors: amounts falling due within one year
Taxation and social security
Other creditors
Trade creditors
Accruals
Deferred income (note 12)		 2022
£
220,373
24,647
117,736		 2021
£
166,607
24,642
85,816
362,756 277,065
2022
£
40,690
21,519
14,420
52,308
223,535		 2021
£
47,733
19,874
12,699
62,097
175,700
352,472 318,103

12 Deferred income

Deferred income comprises of annual subscriptions received in advance

12
Deferred income
Deferred income comprises of annual subscriptions received in advance
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year
13
Accruals
Creditors: amounts falling due after one year		 2022
£
175,700
(175,700)
223,535		 2021
£
154,168
(154,168)
175,700
223,535 175,700
2022
£
-		 2021
£
16,808

26

Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

14a Analysis of net assets between funds (current year)

For the year ended 30 September 2022
14a
Analysis of net assets between funds (current year)		 For the year ended 30 September 2022
14a
Analysis of net assets between funds (current year)
14b
15a
At 1
October
2021
£
100,000
Total designated funds
100,000
General funds
595,677
695,677
15b
At 1
October
2020
£
100,000
Total designated funds
100,000
General funds
595,677
695,677
Movements in funds (current year)
Net assets at 30 September 2022
Analysis of net assets between funds (prior year)
Tangible fixed assets
Tangible fixed assets
Net current assets
Net assets at 30 September 2021
Future Lease cost
Unrestricted funds
Designated funds:
Total unrestricted funds
Total unrestricted funds
Movements in funds (prior year)
Unrestricted funds
Designated funds:
Future lease costs
Long term liabilities
Long term liabilities
Net current assets

Income &
gains
£
-		 Designated
£
-
-
-		 General
unrestricted
£
23,784
836,281
(16,809)
Total funds
£
23,784
836,281
(16,809)
- 843,256 843,256
Designated
£
-
100,000
-		 General
unrestricted
£
22,144
573,533
-
Total funds
£
22,144
673,533
-
100,000 595,677 695,677

Expenditure
& losses
£
-
Transfers
£
(100,000)		 At 30
September
2022
£
-
100,000 - - (100,000) -
595,677 147,579 - 100,000 843,256
695,677 147,579 - - 843,256
At 1
October
2020
£
100,000

Income &
gains
£
-
Expenditure
& losses
£
-
Transfers
£
-		 At 30
September
2021
£
100,000
100,000 - - - 100,000
595,677 - - - 595,677
695,677 - - - 695,677

Purposes of designated funds Designated funds of £100,000 has been provided for future lease costs.

27

Open College Network London Region

Notes to the financial statements

For the year ended 30 September 2022

16 Reconciliation of net income to net cash flow from operating activities

Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Interest and other trading income
Increase in debtors
(Decrease)/increase in creditors
Net cash (used in) / provided by operating activities		 2022
£
147,579
17,210
(421)
(85,696)
17,561		 2021
£
188,142
18,616
(703)
27,393
16,938
96,233 250,386

17 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods


each of the following periods
Less than one year
One to five years		 2022
2021
£
£
91,729
91,729
-
91,729
Property
91,729 183,459

18 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

28