OpenCharities

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2023-07-31-accounts

Company number: 2876147 Charity number: 1034750

Open College Network London Region

Report and financial statements For the period ended 31 July 2023

Open College Network London Region (OCNLR)

Contents

For the period ended 31 July 2023

Reference and administrative information 1
Trustees' annual report 2
Notes to the financial statements 12
Independent auditor's report 13
Statement of financial activities (incorporating an income and expenditure account) 18
Balance sheet 19
Statement of cash flows 20

Open College Network London Region (OCNLR)

Reference and administrative information

For the period ended 31 July 2023

Company number 2876147 Charity number 1034750 Registered office and operational address 24 Angel Gate, City Road, London, EC1V 2PT 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:

P. Pledger Chair L. Arnold-Courtney Deputy Chair J. Farmer N. Garner (appointed 8 December 2022) P. Ghuman (appointed 8 December 2022) K. Hintz (appointed 8 December 2022) K. Holt (appointed 8 December 2022) J. Stockdale (appointed 8 December 2022) K. Caplin (resigned 8 December 2022) N. Foster (resigned 8 December 2022) A. May (appointed 13 February 2024) A-M. Soyinka (appointed 13 February 2024) C. Tennant (appointed 13 February 2024) Key management Carlos Cubillo-Barsi Chief Executive personnel Paul Browning Deputy Chief Executive Dixa Patel Company Secretary Bankers National Westminster Bank Plc 166 Camden High Street, London, NW1 0NW Solicitors Grays Solicitors Duncombe Place, York, YO1 7DY Auditors Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House, 110 Golden Lane, London, EC1Y 0TG

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

The trustees present their report and the audited financial statements for the year ended 31 July 2023.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the 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 an Articles of Association. The Memorandum and Articles of Association were revised, and a new combined Articles of Association was adopted by special resolution on 20 March 2023. 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 licenses.

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 period ended 31 July 2023

primarily for educationally disadvantaged persons.

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), the Greater London Authority (GLA) and other Mayoral Combined Authorities (MCAs) for their delivery of our qualifications.

The outcomes of these activities for 2022-23 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 remain focused on its stated purposes.

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

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.

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.

OCNLR trustees and the executive team undertook a review of the Memorandum and Articles of Association with a view to: ensure that they reflected how OCNLR operates; remove detailed provisions that were no longer relevant or practical; and to modernise both documents, ensuring that they were fit for purpose in supporting the future strategy and direction of the organisation. The revised Articles of Association were adopted by special resolution on 20 March 2023.

In 2022-23 learner registrations on our national regulated qualifications were in line with projections. However, registrations onto Access to HE courses reduced by 546 compared to 2021-22; due, in part, to the increased number of students undertaking foundation years at universities and the impact of the cost of living crisis. This reduction in registrations was offset, in part, as a result of a new international partnership with a Greek provider, UCERT, delivering OCNLR accredited International ESOL qualifications.

The maximum number of organisations registered with OCNLR throughout the reporting period

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

was 362. There were 40 new centres approved in 2022-23, including large further education colleges, and a small number of resignations over the year.

There were healthy registrations on our new ESOL International qualifications and the Level 1 qualification in developing emotional resilience, whilst demand for the Essential Digital Skills qualifications (EDSQs) remained strong.

Achievements against 2021-22 strategic priorities

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

Beneficiaries of our services

Learner registration and certification

In 2022-23 OCNLR received 36,667 learner registrations, representing a small decrease of 5% due to the foreshortening of the financial year by two months. Learner demographics were as follows: 58% female; 60% of a Black and Minority Ethnic background; 47% 16–18 year olds; and 46% of learners resident in the top 25% of deprived wards.

There were 2,229 learners registered on Access to HE courses in 2022-23 of which 1,529 achieved the full Diploma (68.6%). 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 and were able to confirm their acceptance of higher education places in a timely fashion.

Sponsorship

As part of its continuous 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.

Financial review

In order to align the financial reporting period to OCNLR’s business cycle, the Board of Trustees agreed to realign the financial reporting period from October/September to August/July, effective from 1 August 2023. Accordingly, the financial statements accompanying this report relate to the 10-month period 1 October 2022 – 31 July 2023.

OCNLR reported a £65,046 surplus on a turnover of £1,747,746 after a year in which trustees had set a surplus budget of £140,801.

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

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 3% on the 2021-22 outturn and exceeded budget. The increase indicates ongoing growth in Ofqual regulated 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.

Principal risk 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 Department of Education’s qualification reform programme represents one of the highest risk factors faced by OCNLR, particularly at Level 2 and below which represents 79% of OCNLR’s regulated offer. The Board and Trustees and OCNLR’s executive team routinely monitor the situation and work closely with key stakeholders, such as the Federation of Awarding Bodies (FAB) and the Institute for Apprenticeships and Technical Education (IfATE), to ensure that the impact of any potential risks or issues is kept to a minimum.

In addition, the potential for the widespread misuse of artificial intelligence (AI) poses a risk to the safety of OCN London awards with regulatory and reputational risks. OCNLR’s CEO convened a group of collaborative awarding organisations who have developed a common position statement on AI. Further work has been undertaken to develop appropriate guidance to centres and to update policies relating to malpractice/maladministration. Further work is underway to: establish training for staff on impact and uses of AI with a focus on the staff responsible for external quality assurance; provide awareness raising activities with centres; and the development of an agreed code of practice around use of AI.

Reserves policy and going concern

In accordance with its stated policy, OCNLR holds reserves to cover 4-6 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, members, staff, creditors, pensions. At the end of 2021-22 financial year, the total unrestricted funds were £843,256. The reserves at

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

2022-23 year-end are £908,303. The calculated costs of winding up the company based on the current staff complement is £596,459.

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

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. All staff are entitled to receive a contribution towards either the Teachers' Pension or the Local Government Pension Scheme. They also receive a small contribution to a personal learning course of their choice.

In June each year, the trustees determine whether the salary points for all staff should be adjusted for the forthcoming financial year beginning 1st 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

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

commercial participators. OCNLR nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance with these regulations and codes and OCNLR received no complaints relating to its fundraising practice.

Plans for the future

The financial outlook for OCNLR in 2023-24 is positive. The work invested in qualification and materials development and promotion this year has led to additional courses in place for 202324 and new centres have joined in order to deliver qualifications and credentials, 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 of qualifications and credentials to support the development of skills required by employers identified through LSIPs.

The Board of Trustees and OCNLR’s executive team continue to provide support, challenge and assurance in the delivery of the 2022-25 strategic plan. The five strategic aims of the new plan are to:

Progress towards achieving the strategic aims and objectives has been positive. A new Strategic Operations Team (SOT) has been established with responsibility for agreeing organisational key results (OKRs) and ensuring that these are delivered. Business actions are monitored through an agreed operational plan and progress of achieving quarterly milestones is reported to the Board of Trustees.

Structure, governance and management

A Search Committee of Trustees was established to seek new Trustees to address gaps in skills, expertise and/or representation of the breadth of membership on the Board following a Skills Audit of trustees A specialist recruitment organisation, Peridot Partners, was then commissioned by the Board to advertise for, and support the assessment of, trustee applicants for this year and for the next couple of years to ensure the maintenance of a Board of Trustees with the skills, knowledge and experience to govern and develop the charity. Following interviews, the Board approved the appointment of recommended new trustees.

OCNLR has a Finance and General Purposes committee (F&GP) with a remit to advise the

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

CEO and report to the Board of Trustees on all matters relating to financial policy and the financial arrangements, policies and arrangements for general resourcing, and on all matters relating to the staffing resources of OCNLR.

OCNLR employs a full-time CEO, who is responsible for the day-to-day management of the organisation. Staffing matters are delegated to the CEO subject to the guidance of the Board of Trustees. The Board of Trustees delegates some responsibilities to the Quality and Standards Committee and the F&GP but retains overall responsibility for all strategic issues and regulatory licenses. 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.

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

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Open College Network London Region (OCNLR)

Trustees’ annual report

For the period ended 31 July 2023

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.

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 was 5 and as at 31 July 2023 was 8 . The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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Open College Network London Region (OCNLR)

Notes to the financial statements

For the period ended 31 July 2023

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 prepared in accordance with the special provisions applicable to companies subject to the small companies' regime. Approved by the trustees on 21 March 2024 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 period ended 31 July 2023

Opinion

We have audited the financial statements of Open College Network London Region (the ‘charitable company’) for the period ended 31 July 2023 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

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Independent auditor’s report

To the members of Open College Network London Region

For the period ended 31 July 2023

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 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:

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Independent auditor’s report

To the members of Open College Network London Region

For the period ended 31 July 2023

small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

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.

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

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Independent auditor’s report

To the members of Open College Network London Region

For the period ended 31 July 2023

documentation, concerning the charity’s policies and procedures relating to:

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 non-compliance 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

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Independent auditor’s report

To the members of Open College Network London Region

For the period ended 31 July 2023

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)

DATE: 11 April 2024 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 110 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 period ended 31 July 2023

Total income
Expenditure on:
Charitable activities
3
Total expenditure
Net income for the year
4
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Note
Income from:
Charitable activities
2
Other trading activities
Interest receivable		 1,722,676
1,839,638
23,180
8,250
1,890
421
2023 (10
months)
Total
£
2022
Total
£
1,747,746
1,848,309
1,682,700
1,700,730
1,682,700
1,700,730
65,046
147,579
843,256
695,677
908,303
843,256

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

Company no. 2876147

Balance sheet

As at 31 July 2023

Net current assets
Total assets less current liabilities
Total net assets
Total unrestricted funds
Total charity funds
Note
Fixed assets:
Tangible assets
9
Liabilities:
Creditors: amounts falling due within one year
11
Creditors: amounts falling due after one year
13
Current assets:
Debtors
10
Short term deposits
Cash at bank and in hand
The funds of the charity:
15a
Unrestricted income funds:
Designated funds
General funds
£
253,769
104,913
717,225		 167,081
751,444
2023 (10
months)
£





 £

362,756
305,432
503,751
23,784

819,468
2022
£
1,075,907
(324,463)		 1,171,939
(352,472)
-
908,303		 -
843,256
918,525
(10,228)		 843,252
-
908,303 843,256
908,303

 843,256

908,303 843,256

Approved by the trustees on 21 March 2024 and signed on their behalf by:

Lucy Arnold-Courtney Peter Pledger Trustee Trustee

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Open College Network London Region

Statement of cash flows

For the period ended 31 July 2023 For the period ended 31 July 2023 For the period ended 31 July 2023

Cash flows from operating activities
Net cash (used in) / provided by operating activities
220,103
Net cash provided by / (used in) investing activities
(207,088)
Change in cash and cash equivalents in the year
(13,015)
Cash and cash equivalents at the beginning of the year
809,183
Cash and cash equivalents at the end of the year
822,138
Note
2023 (10 months)
£
£
16
Cash flows from investing activities:
Dividends, interest and surplus from operating activities
Purchase of fixed assets
Disposals of fixed assets
1,890
208,890
(417,868)		 2022
£
£

96,233
(18,429)

77,804

731,379

809,183

421
(18,850)


(13,015)
809,183
822,138 809,183

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Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

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 24 Angel Gate, City Road, London, EC1V 2PT.

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.

These financial statements comprise 10 months to 31 July 2023 as the accounting year end has been changed. This has been done to better align with the delivery of the charity's activities.

c) Public benefit entity

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

The trustees consider that there are no material uncertainties about the charitable company'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.

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 period ended 31 July 2023

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.

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.

Rental charges are charged on a straight line basis over the term of the lease. Under the 5-year lease agreement, the lessor gave a four month rent-free period. This has been charged on a straight line over the term of lease with a break clause of 3-years.

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.

22

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

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 £23,727.46 (2022 £32,817.24).

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 implementation 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 exemption 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:

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 £57,837.98, (2022 £94,905). No additional payments have been required this year to cover the deficit funded, (2023: Nil)

23

Open College Network London Region

Notes to the financial statements

Notes to the financial statements
For the period ended 31 July 2023

2
Income from charitable activities
Accreditation and registration income
Units Development income
Subscriptions
Other service income
Total for charitable activities		 2023 (10
months)
Total
£
1,472,290
11,330
206,336
32,720
1,722,676		 2022
Total
£
1,571,178
10,975
225,634
31,851
1,839,638
Income from other trading activities
Other Income
Income from investments
Bank interest receivable
Restricted
Unrestricted
£
£
23,180
-
23,180
-
Unrestricted
£
1,890
1,890		 Restricted
£
-		 2023
Total
£
23,180
23,180
2023
Total
£
1,890
1,890		 2022
Total
£
8,250
- 8,250
2022
Total
£
421
421

3 Income from investments

24

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

Governance costs
Total expenditure
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		 Charitable
activities
£
Governance
costs
£
2023 (10
months)
Total
£
Charitable
activities
£
Governance
costs
£
2022
Total
£
937,889
68,215
61,710
62,889
60,890
184,288
6,262
10,385
11,730
65,740
33,828
16,114
5,066
23,590
2,609
15,878
8,921
64,000
3,650
15,467
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23,581
953,356
68,215
61,710
62,889
60,890
184,288
6,262
10,385
11,730
65,740
33,828
16,114
5,066
23,590
2,609
15,878
8,921
64,000
3,650
23,581
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
-
15,699
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,189
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
1,643,652
39,048
1,682,700
1,659,842
40,888
1,700,730
39,048
(39,048)
-
-
-
-
1,682,700
-
1,682,700
1,700,730
-
1,700,730

25

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

This is stated after charging:

This is stated after charging:
2023 (10
months) 2022
£ £
Depreciation 65,740 17,210
Operating lease rentals:
Property 57,631 91,768
Auditor's remuneration (excluding VAT):
Audit 10,950 9,525
Other services 1,300 1,175

5 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Operating costs of defined benefit pension schemes
Termination costs		 2023 (10
months)
£
787,650
83,966
81,739
-

2022

£

845,615

92,384

127,563

12,500
953,356
1,078,062

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

2023 (10
months) 2022
No. No.
£60,000 - £69,999 1 1
£70,000 - £79,999 - -
£80,000 - £89,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £150,707 (2022: £188,289).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £0 (2022: £225) incurred by 0 (2022: 2) members relating to attendance at meetings of the trustees.

26

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 25 (2022: 24).

Staff are split across the activities of the charitable company as follows (head
count basis):
Chief Executive Office
Administration
Finance
Information Technology
Curriculum group
Quality group		 2023 (10
months)
2022
No.
No.
2
2
3
3
2
2
2
2
5
5
11
10
25
24

7 Related party transactions

A number of trustees hold positions at member organisations which in the year have engaged with OCN London. These include: Natalie Garner - Croydon College, Kurt Hintz - Capital City College Group. Membership status ended on 20 March 2023 when the new Articles of Association were adopted.

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
Additions in year
Disposals
At the end of the year
Depreciation
At the start of the year
Charge for the year
On Disposals
At the end of the year
Net book value
At the end of the year
At the start of the year		 Fixtures and
fittings
£
266,261
165,602
(248,055)

Computer
equipment

£

176,135

43,289

(169,813)		 Total

£

442,395

208,890

(417,868)
183,807
49,610
233,417
248,567
47,817
(248,055)

169,897
17,923
(169,813)


418,464
65,740
(417,868)
48,328

18,008


66,336
135,479
31,603
167,081
17,694
6,237
23,784

All of the above assets are used for charitable purposes.

27

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

For the period ended 31 July 2023
10
Debtors
Trade debtors
Other debtors
Prepayments
11
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income (note 12)
12
Deferred income
Deferred income comprises of OCN ESOL International received in advance
Balance at the end of the year
13
Creditors: amounts falling due after one year
Accruals
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year		 2023 (10
months)
£
155,080
-
98,689

2022

£

220,373

24,647

117,736
253,769
362,756
2023 (10
months)
£
129,623
31,281
15,368
82,525
65,665

2022

£

40,690

21,519

14,420

52,308

223,535
324,463
352,472
2023 (10
months)
£
223,535
(223,535)
65,665

2022

£

175,700

(175,700)

223,535
65,665 223,535
2023 (10
months)
£
10,228

2022

£
-

28

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

14a
Analysis of net assets between funds (current year)		 14a
Analysis of net assets between funds (current year)
Tangible fixed assets
Net current assets
Long term liabilities
Net assets at 31 July 2023
14b Analysis of net assets between funds (prior year)
Net assets at 30 September 2022
15a
Movements in funds (current year)
At 1
October
2022
Income &
gains
£
£
Unrestricted funds
Designated funds:
Future Lease cost
-
-
Total designated funds
-
-
General funds
843,256
65,046
Total unrestricted funds
843,256
65,046
15b Movements in funds (prior year)
At 1
August
2021
Income &
gains
£
£
Unrestricted funds
Designated funds:
Future lease costs
100,000
-
Total designated funds
100,000
-
General funds
595,677
147,579
Total unrestricted funds
695,677
147,579
Purposes of designated funds
Tangible fixed assets
Net current assets
Long term liabilities		 Designated
£
-
-
-
General
unrestricted

£
167,081
751,444
(10,228)

Total funds

£
167,081
751,444
(10,228)
- 908,303 Total funds

£
908,303



23,784
836,281
(16,809)
Designated
£
General
unrestricted

£
23,784
836,281
(16,809)
- 843,256 843,256


Expenditure
& losses

£

-

Transfers

£

-
At 31 July
2023

£

-
-
-
-
-
-
843,256
65,046
-
-
908,303
843,256
65,046
-
-
908,303
At 1
August
2021
Income &
gains
£
£
100,000
-

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

29

Open College Network London Region

Notes to the financial statements

For the period ended 31 July 2023

2023 (10
months) 2022
£ £
Net income for the reporting period 65,046 147,579
(as per the statement of financial activities)
Depreciation charges 65,740 17,210
Interest and other trading income (1,890) (421)
Decrease in debtors 108,987 (85,696)
(Decrease)/increase in creditors (17,781) 17,561
Net cash (used in) / provided by operating activities 220,103 96,233

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		 Property
2023 (10
months)
2022
£
£
57,631
91,729
57,631
-
115,262
91,729

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.

30