Company number.. 2876147 Charlty number.. 1034750 Open College Network London Region Report and financial statements For the year ended 31 July 2024 *ADUIGSQZ• 1110112025 r.nM.PANIES HOUSE A07
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Open College New11( London Region (OCNLR) Contents For the year ended 31 July 2024 Reference and administrative information Trustees, annual report Independent auditor's report Statement of financial activities (incorporating an income and expenditure account) Balance sheet Statement of cash flows Notes to the financial starernents 20 22 23
Open College Ne[k LcxNlon Reglon ILP) Reference and admlnlstratlve Inforniatlon For the year ended 31 July 2024 Company number Charity number Reglstered offlce and operatlonal addre55 Country of reglstratlon Country of Incorporatlon 2876147 1034750 24 Angel Gate, City Road, London, ECI V 2PT England Unlted Kingdom The company trades under the name OCN London. Trustees Trustees. who are also directors under company law, who serrfed during the year and up to the date of thls report were as follows.. P. Pledger L. Arnold-courtney Chair {reslgned 13 June 2024) Interim Chair (13 June to 26 September 2024) J. Farmer N. Garner P. Chuman K. Hintz K. Holt A. May A-M. Soyinka J. Stockdale C. Tennant Chair (Appointed 26 September 2024) (appointed 13 February 2024> (appointed 13 February 2024) (appointed 13 February 2024) Key management Personnel Carlos Cubil lo- Barsi Paul Brownlng Dixa Patel Chief Executive Deputy Chief Executlve Company Secretary Banker5 National Westminster Bank PIC 166 Carnden High Street. London, NWI ONW Sollcltors Grays Sol icitors Duncombe Place. York. YOI 7DY Audltors Sayer Vincent LLP Chartered Accountants and Statutory Audiror I l O Golden Lane. London. ECIY OTG
Open College Netv&) London Reglon (O(J4LR) Trustees, annual report For the year ended 31 Juty 2024 The trustees present their report and the audited financial statements for the year ended 31 July 2024. Reference and administrative information set out on page 3 forms part of this report. The financial statements comply with current statutory requirements, the Articles of Assoclation, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP appllcable to charities preparing their accounts in accordance wlth FRS 102. Purposes and alms The charlty Is a company limited by guarantee and is constltuted under an Articles of Association. The Memorandum and Articles of A550ciation 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 Reglon (OCNLRI is an awarding organisation IAOI approved by the Office of Qualifications and Examinations Regulation IOFQUAL) to offer national qualiflcations. As an Access Valldating Agency IAVA). OCNLR is licensed by the Quallty Assurance Agency for Higher Education (QAA) to validate and award certificates on QAA- recognlsed Access to Higher Education Diplomas. The Board of Trusteesls ultimately responsible for the operation of both licenses. None of the trustees recelve remuneration or other benefit from thelr work with the charity. Objectlves and activities OCNLR exists to support learnlng and widen participation through achievement of credlt- based qualifications. regulated and unregulated. OCNLR aims are the advancement of the education of ihe public in one or more of the following ways-. By promoting and increasing participation in education and training. partlcularly by those persons who have beneflted least from existing provision. By being an open and inclusive organisation, where diversity is promoied, and discrlmination eliminated. Our commitment is to contlnue to ensure that our services meet the needs of all our diverse customers. It ensures that equality. diversity, and human rights are integraied Into the way we plan, develop. and deliver our services, covering our internal functions as an employer and our external operations as a provider of qualifications and accred itation services. y improving the quality and flexibility of education provision for the public benefit. primarily for educationally disadvantaged persons.
Open College Netsrt( Lorthn Reglon {cLR} Trustees, annual report For the year ended 31 July 2024 y facilitatin9 progression for learners by enabling them to achieve Open College NeMork IOCN) credits and to accumulate and, where appropriate, to transfer these toward 5 a qualification. By improving access to higher education by carrying on and conducting the work of the accreditation system in London and elsewhere and conducting the work of Open College Network London Region as an AVA under license from the Quality Assurance Agency for Higher Education (QAA). y improving recog nition of education quallfication5 by Issuing nationally recogn ised Access to HE Diplomas and credits for learner achievement to be awarded independently of the providing organisations. Publlc beneflt In settin9 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 w.ho have benefitted least from existing provision and can be encoura9ed to prog ress to achieve their potential. The activities cu rrenily carried out for the pu blic benefit by the c harity can be broadly categorised into the followln,g areas: Development of products and servlces for organisatlons to use for educatlonal, training and assessment purposes. Registration and certification of learners. Support for customers to confirm centre approval and the offer of coherent curriculum provision with quality assured confirmation of the achievement of credit. Retention of licenses to ensure continuity of the operarion on behalf of customer organisaiions. The majority of centres are not-for-profit organisatlons, deliverlng education and tralnlng for adults. Many of them target the educatlonally disadvantaged, which Is critical to. supporting OCNLR to achieve its alms. A slgnificant number of centres, namely (hose in the trad itional further and adu It educatlon sectors. are eligible to access pu blic funding via the Education and Skills Funding Agency (ESFA), the Greater London Authoriry (GLA) and other Mayoral Combined Authorltles (MCAs> for their delivery of our qualifications. The outcomes of these actlvltles for 202 3-24 are Identified in the following sections. The trustees review the aims. objec.tive5. and activitie5 of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in (he reporting period. The trustees repori 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. The trustees have referred to the guidance contained in the Charity Commission's general
Open College Nets{ London Reglon (OCNLR) Trustees. annual report For the year ended 31 July 2024 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 alms and objectives that have been set. Achlevements and performance The charity's main activities and who it trles to help are descri bed below. Al I Its charitable activities focus on education and are undertaken to further OCNLR'S charitable purposes for Ihe public benefit. OCNLR acts to accredit courses and develop regulated qualificatlons in partnership with its centres, register learners on those courses and q ualifications. confirm the learners, achievement of credits and qualifications through an external quality assurance process and then to certificate those achievements. I n many cases these certlficates are the flrst tangible evidence of learning and achievement those learners will have received. OCNLR is not directly involved with the delivery of learni ng,. it acts to formally recogn ise a centre's fitness to provide quality assured learning programmes that may consist of its qualificatlons (regulated) or accred ited cou rses (unreg ulated). I n each case OCN LR is concerned with confirming that the offer is appropriate and coherent at the curriculum planning stage and then is quality assured to ensure comparablllty of standards and io safeguard the learner experience. In 202 3-24 learner registrations on our national regu lated qualifications were in line with and in. some cases, ahead of projections. However, registrations onto Access to HE courses reduced by 210 compared to 2022-23: again, reflecting the increased number of students undertaking foundation years at universltie5 and other qualification options, as well as the mpact of the cost-of-living crisis. Thi5 reduction in registrations was offset, in part, through the introduction of a new seNice offering Digital Bad9es to confirm learning on othe1$e unaccredited provislon. The maximum number of organisations registered with OCNLR throughout the reportlng period was 356. There were 53 new centres approved in 2023-24, including large further education colleges, and a small number of resignations over the year. Our most popular qualification was the Level l Award in Preveni Duty Awareness. while demand for Essential Dig ital Skills Qualiflcations remained strong. There were also healthy registrations on the Level l Award in Health and Safety in the Construction Environment.
Open College London Region (OCNLR) Trustees. annual report For the year ended 31 July 2024 Achievements against 2023-24 strategic priorities Recruited three new Trustees io the Board covering areas such as.. repre5entatlon from London borough and GLA stakeholders and expertise in higher education. Worked with centres to support them in responding to the QAA changes to the Access to Higher Educarion Diploma specification and Grade Scheme. In response to priorities identif led by the Greater London and Greater Manchester Local Skills Improvement Plans, development of a range of modular learning opportunities focused in the sectors of health & social care, construction, greenlsustainability and digital. Awarded the City of London Silver Awatd at the London Chamber of Commerce and Industry (LCCI) SME London Business Awards 2024. Cained Ofqual approval to provide apprenticeship end polnt assessment services to the creative theatre sector. Member of the City of London Corporation Taskforce supporting women into digital careers and sponsored the LCCI'S Women into Business programme. Worked with the Di9ltal Policy Alllance IDPA) and other digltal sector slake holders to inform di9ltal skills policy development in conjunction with relevant All Party Parliamentary Groups (APPGS). Engaged wlth trade associations wlthln the greenlsustainabil Ity sector, worklng on commlssions to produce resources. credenrlals and qualifications to support the development of skills and knowledge relating to carbon neutral energy production and effective eco-friendly working practices, Launched new microcredentials product to support lifelong learnlng and recognise the importance placed on skills development within the workplace and communities, alongside the acqu isirion of formal qualifications. Developed and launched new on-line Access to Higher Educatlon Diplomas in Nursing and Business Studies. Began a two year pilot with the Army and partner centres to dellver an on-line Access to HE Diploma (Business Studie5) to an initial cohort of 40 learners from the junior NCO Academy. Awarded bursaries to two Access to HE Diploma learners for outstanding acadernic achievement and a further two for outstanding commitment to study. Maintalned an excellent level of service to our customers throughout the year through remote and in-person operation. Retained Cyber Essentials Plus accreditation demonstrating that OCNLR has enhanced levels of cybersecurity protection.
Open College Newrk London Region {OCNLR) Trustees, annual report For the year ended 31 July 2024 Beneficiarles of our services Learner reglstratlon and certlflcatlon In 2023-24 OCNLR received 39,580 learner reglstrations, representing an increase of 6% on the previous year. Learner demographics were as follows: 55% female., 40% of a Black and Minority Ethnic background., 47% 16-18 year olds., and 45% of learners resident In the top 2 5% of socioeconornically deprived wards. There were 2,01 O learners registered on Access to HE courses In 2023-24 of which 1 .440 achieved the full Dlploma (72%). Results were submitted to UCAS by thejuly deadline for all learners. except for those who had appealed. The learners who had achieved the Access io HE Diplomas recelved thelr resul¢s and were able to confirm thelr acceptance of hlgher education places in a timely fashion. Sponsorshlp As part of its continuous commitment to adult learners. OCNLR sponsored the Kelth Fletcher Access to HE Learner Awards and Michael Sargent Access to HE Bursary Awards were awarded to four Acce55 to HE Diploma learners in recognition of their outstanding academic achievement and outstanding commitment to study. All four learners had overcome the particularly challenging clf cumstances and barriers to learning In order to achieve their Access to HE Diplomas. Flnancial review In 2022123 period, the Board of Trustees approved a change in the financial reporting period, shiftlng it from October-september to August-july, effective as of l August 2023. Consequently. the financial statements included in this report reflect a preceding l O-month period, from l October 2022 to 31 July 2023. OCNLR In 2023124 reported a £2.036 surplus on a turnover of £1.9m. 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 qualif ications. The income from quallflcations Increased by 17% on the 2022-23 outturn and exceeded budget. The increase indicates ongoing growth in Ofqual regulated qual if ications, with considerable numbers of registrations on small health and wellbeing qualif ication5 and continu ing interest 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 employrnent.
Open College NeMx>rk London Reglon IOCNLR) Trustees. annual report For the year ended 31 July 2024 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 rnanagin9 risk. They assess the major risks to which the charity is ex posed, 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 qualificatlon reform programme continues to represent 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 situatlon and continue to work closely with representatives and government bodies to ensure that the impact of any potential risks or issues is kept to a minimum. In addition, the potential for a significant reduction in learner registrations in the context of continuin9 Cost of living pressures remains a significant risk. This applies particularly in relatlon to Access to HE Diplomas and other larger qualificatlons where commitment to an extended period of study is not sustainable for some potential learners. OCNLR officers monitor changes in re9iStration patterns on a monthly basis and account managers are in regular contact with centres so that queries and concerns can be addressed promptly. There Is also ongoing marketing activity to promote our qualification offer and initiatives in progress to diversify our product range and offer broader choice to potential learners. Reserves pollcy and golng concern The Board of Trustees has considered the requirement for the Charity to maintain an appropriate level of free reserves. They feel it is prudent to adopt a risk-based approach when considering the minimum level of reserves to retain. The Trustees have considered the level of free reserves required to cover the following risks., Robustness of current income streams Failure to achieve agreed delivery or performance targets Lack of compliance wlth regulatory requirements Free reserves are deemed to be those not invested into Fixed Assets. Our baseline is to keep this at a mlnlmum of £500k.
Open College Nemvrk London Reglon (OCNLR) Trustees, annual report For the year ended 31 July 2024 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 falrly so that we attract and retain the best people for the job and lil) careful management of our charity funds, In so doing we ensure the greatest effectiveness in delivering ou r charitable objectives and meetlng the needs of our beneficiaries. Salaries for all posts comprise a band made up of a serles 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 cholce. In June each year, the trustees determine whether the salary polnts for all staff should be adjusted for the forthcoming financial year beginning I st August. to reflect changes in the cost of Ilvlng. The trustees, considerations begln wlth 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.. the charity's financial situation; the charlty's performance: cost of living adjustments made in recent years,. pay reviews elsewhere in the sector. (iv) Cost of Ilving adjusrments are applied equally to all staff. For OCNLR to run successfully, a wide ran9e of ski115 are required, and it Is important to pay staff appropriately to ensu re that we can recruit people with the rig ht ski115. 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 unlque to them in the organlsation and could not be quickly replaced. OCNLR staff pay scales are set with this in mind. Fundraislng OCNLR does not engage in public fundraising and does not use professional fundraisers or commercial participators. OCNLR nevertheless observes and complles with the relevant fundraising re9ulations 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.
Open llege Network London Region (OCNLR) Trustees, annual report For the year ended 31 July 2024 Plans for the future The flnancial outlook for OCNLR In 2024-25 is positive. The work Invested In qualification and materials development and promotion this year has led to addltlonal courses in place for 2024- 25 and new centres have joined in order to deliver qualifications and credentials, including several large FE colleges and employer5. The impact of the DfE's rolling programme of removing funding from qualifications with low or no re9lStrations 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 io provide support. challenge and assurance in the delivery of the 2022-25 strategic plan, The five siraiegic aims of the existing plan are to: Significantly improve employer involvement through innovaiion and collaboralion,. Proactively seek opportunities for growth and diverslfy sources of income: Provlde the highest levels of customer experlence; Develop h igh leve I vocational qualifications and ladders of progression., Improve organisational resilience and productivity. Progress towards achievlng the strategic aims and objectives has been positive. A new sub- committee of the Board, the Strategic Development and Engagement Committee ISDEC), has been established with responsi bility for advises the Chief Executive and reports to the Board of Trustees on all matters relating to OCN London's strategic, external facing activities, the effectiveness of the customer journey- and the impact that OCN London has on the communiiies it serves. Structure, governance and management Three new Trustees joined the Board In February 2024. addlng further expertise in key areas relevant to our work. In June the Chair of the Board stepped down from this role, and following a short interim period a new Chair was appointed by Trustees from among their number. OCNLR has a Finance and General Purposes committee (F&GP) with a remit to advise the CEO and report to the Board of Trustees on all matters relating to financial policy and the flnancial arrangements. pollcies and arrangements for general resourcing, and on all matters relating to the staffing resources of OCNLR.
Open College Nets( London Region {OCNLR) Trustees, annual report For the year ended 31 July 2024 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 responsiblllties to the Quality and Standards Committee and the F&GP but retains overall responsibility for all strateg ic issues and regulatory licenses. The Chalr 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 l O March 1994. The company was esiabllshed under a Memorandum of Assoclatlon which established the objects and powers of the charitable company and is governed under its Articles of Association. All tru 5tees g ive thelr tlme voluntarily and receive no benefits f rom the charity. Any expenses reclaimed from rhe 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 alms. The objectlve 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 assessrnent and quallty assurance to enhance the learning experience for beneficiaries. The CEO and oiher officers also have positive relatlonships wlth their counterparts at other awardin9 organisations who share a common heritage and value5 With OCNLR. 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 ihe 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).
Open College Lon(k)n Reglon (CthLR) Trustees. annual report For the year ended 31 July 2024 Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitable company for that period. In preparing these financial statements, the trustees are required to.. Select sultable accountlng policles and then apply rhem consistently: Observe the methods and principles in the Charities SORP: Make judgement5 and estimares that are reasonable and prudenr., State whether applicable UK Accountin9 Siandards and statements of recommended practlce have been followed, subject to any material departures disclosed and explalned in the financlal statements,. Prepare the financial statements on the going concern basis unless It is Inappropriate to presume that the charity will continue in operation. 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 wlth the Companles Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the preventlon and detectlon of fraud and other irregu larities. In so far as the trustees are aware: There is no relevant audit information of which the charitable company's auditor is unaware. The trustees have taken all steps that they ought to have taken to make themselve5 aware of any relevanr audit information and to establish that the auditor is aware of that Information. The trustees are responsible for the maintenance and integrity of the corporate and flnancial information included on the charitable company's website. Members of the charity guarantee to contribute an amount not exceeding £ I to the assets of the charity in the event of winding up. The total number of such guarantee5 at l August 2023 was 8 and as at 31 July 2024 was l O. The trustees are members of the charity, but this entitles ihem only to voti ng rights. The trustees have no beneficial interest in the charity.
Open College NeIvrk LoThlon Re9lon IOCNLR) Trustees, annual report For the year ended 31 July 2024 Audltor Sayer Vincent LLP was re-appointed as the charitable'company's auditor during the year and has ex pressed its willingness to operate in that capacitv. The Trustees, annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companle5' regime. Approved by the trustees on S December 2024 and signed on their behalf by Kurt Hint2 Chair of OCNLR Board of Trustees
Independent audltorfs report To the members of Open College Network London Region For the year ended 31 July 2024 Opinlon We have audited the financial statements of Open College Network London Region (the 'charitable company,) For the year ended 31 July 2024 which comprise the statement of financial activities, balance sheet. statement of cash flows and notes to the financial Statements. including significant accou nting policies. The financial reporting f ramework 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 Republlc of Ireland (United Klngdom Generally Accepted Accountin9 Practice). In our oplnion, the financial statements.. Give a true and fair view of the state of the charitable company's affairs as at 31 July 2024 and of Its incoming resources and applicatlon of resources, includlng its income and expenditure for the period then ended Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practlce Have been prepared in accordance wlth the requirements of the Companles Act 2006 Basls for oplnlon We conducted our audlt in accordance with International Standards on Auditing (UK) (ISAS (UKI) and applicable law. Ou r responsibi lities under those Standards are further descrlbed in the Auditor's responsibilities for the aud it 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 Eth ical Standard and we have fulfilled ou r other eth ical 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 relatlng to golng 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 condltions that. individual ly or collectively, may cast significant dou bt on Open College Network London Region's ability to continue as a going concern for a period of at least twelve monihs from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are descri bed in the relevant sections of this report.
Independent audltorfs reFK>rt To the members of Open College Network London Reglon For the year ended 31 July 2024 Other Informatlon 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 otheThvise 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 inconslstent with the financlal statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially rnlsstared. If we identify such material inconsistencies or apparent material mi5Statements, we are required to determine whether thi5 gives rise to a material misstatement In the financial 5taternents themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are requ ired to report that fact. We have nothlng to report in thi5 re9ard. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken In the course of the audlt: The informatlon glven in the trustees, annual report for the financlal period for which the financial starements are prepared is consistent with the f inancial statements; and The trustees, annual report has been prepared in accordance wlth appllcable legal requirements. Matters on which we are requlred to report by exception In the light of the knowledge and understanding of the charltable company and its environment obtained in the course of the audlt, 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= Adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by u5; or The financial statements are not in agreement with the accounting records and returns., or Certain disclosures of trustees, remuneration specified by law are not made,. or We have not received all the information and explanations we require for our audit.,
IndeperKlent a1110$ report To the members of Open College Network London Reglon For the year ended 31 July 2024 or The directors were not entitled to prepare the financial statements in accordance with the 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 ex plained more fully in the statement of trustees, responsibilities set out in the trustees, annual report, the trustees Iwho are also the directors of the charitable company for the purpose5 of company lawl are responsible for the preparation of the financial statements and for being satisf led 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 charltable company's abillty to continue as a going concern, disclosing. as applicable, matters related to golng 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 real istic 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 materlal 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 IUK) will always detect a material misstatement when it exists. Misstatement5 can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the econom ic decislons of users taken on the basis of these financlal statement5. Irregularities, includlng fraud. are instance5 of non-compliance wlth laws and regu lations. We design procedures in line with our responsibiliiies. outlined above. to detect material misstatements in respect of irregularities, Includ ing fraud, The extent to which our procedures are capable of detecting irregularities. includ ing fraud are sei out below.
Irthpendent altto¢S report To the members of Open College Network London Reglon For the year ended 31 July 2024 Capability of the audit in detecting irregularities In identifying and assessing risks of material mi55tatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following.. We enqulred of management which included obtaining and reviewing supporting docu mentation. concerning the charity's policies and procedure5 relatlng to.. Identifying, evaluating. and complying with laws and regulations and whether they were aware of any instances of non-compliance., Detectin9 and responding to the rlsks of fraud and whether they have knowledge of any actual. suspected, or alleged fraud; The Internal controls established to mlrl9ate risks related to fraud or non- compliance wlth laws and re9ulations. We inspected the minutes of meetings of those charged with 9overnance. We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundarnental effect on the operation5 of the charity from our professional and sector experience. We communicated applicable laws and regulations throughout the audit team and remalned alert to any Indications of non-compliance throughout the audlt. We reviewed any reports made to regulators. We reviewed the financial statement disclosures and tested these to supporting documentation io assess compliance wlth applicable laws and regulations. We performed analytical procedures io identify any unusual or unexpected relatlonships that may indicate risks of material m155tatement due ro fraud. In addressing the risk of fraud through management override of controls. we tested the appropriateness of journal entries and other adjustments, assessed whether the Judgements made In making accountin9 esrlmates are indlcatlve of a potentlal blas and tested significant transactions that are unusual or those outside the normal course of busines5. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregu larltles. including those leading to a material misstatement i n the f inancial Statements or non-compliance with regulation. This risk increases the more that compliance wirh a law or regulation is removed from ihe 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 irregu laritie5 occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion. omission or misrepresentation.
IndepeTrJent audlrorfs report To the member5 of Open College Network London Reglon For the year ended 31 July 2024 A fu rther description of our responsibilities is available on the Financial Reporting Councll's website at.. www.frc.org.uklauditorsresponsibilities. 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 rnatters we are required to state to them in an auditor's repori 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) 17 December 2024 for and on behalf of Sayer Vincent LLP, I l O Golden Lane, London, EC? Y OTG
Open College Nefyvork London Region (CKNLR) Statement of flnancial activities (incorporating an income and expenditure account) For the year ended 31 July 2024 2023 (l O months) Total 2024 Total Note Income from: Charitable activities Other trad ing activities Interest receivable 1,866,952 70,961 2,378 1.722,676 23,180 1,890 Total Income 1,940,291 1.747,746 Expendlture on.. Charitable activities 1.938.255 1.938.255 1,682.700 1.682.700 Total expendlture Net Income for the year Reconclllatlon of fund5: Total funds brought forward Total funds carrled fOard 2,036 65,046 908.303 910,339 843.256 908,303 All of the above results are derived from continuln9 actlvlile5. There were no other recognlsed gains or losses other than those stated above. All income and expenditure Is unrestricted. 20
Owi College Netsrk London Reglon (OCNLR) Balance Sheet For the year ended 31 July 2024 Company number.. 2876147 2023 11 O months) 2024 Note Flxed assets Intangible assets Tangible assets 60,353 116,247 176.600 167,081 167,081 Current Assets Debtors Short term deposits Cash at bank and in hand 239,658 250,000 479.224 968.882 253,769 104,913 717,225 1.075.907 Credltors: amounts falllng due wlthln one year (198.863) (324,463) Net assetslllabllltle5 770,019 751,444 Total asset5 less current Ilabllltles 946,619 918,525 Creditors: amounts falling afier more than one year (36,280) (10,222) Total net assetslllabllltles 910,339 908.303 The funds of the Charlty Un resrricted fu nds Total charfty funds 910.339 910,339 908,303 908,303 Approved by the rrustees on 5 December 2024 and signed on their behalf by: Lucy Arnold-courtney Trustee Kurt Hintz Trustee 21
Open College Nets¢ London Region (OCNLR) Statement of cash flows For the year ended 31 July 2024 2023 (l O months) 2024 Net Income for the reportlng perlod5 (as per the statement of flnanclal actSvities) Adjustments for.. Depreciation of tangible f ixed assets Amortisation of intangible fixed assets Interest and other trading income 2.036 65,046 63,170 14.747 (2.378) 65.740 (1,890) Changes In: (Increase)IDecrease in Trade and other debtors IncreasellDecrease) in Trade and other creditors 108,987 (17,780) (99,542> Net cash flow from operatlng actlvltle5 (7,856) 220,104 Cash flows from Investlng actlvltles: Interest and other trading income Pu rchase of tang I ble flxed assets Sale of tangible fixed assets (net of costs of d isposal) 2.378 (87,436> 11,8901 1208,8901 417,928 Net cash flow from Investlng actfvltles (85.057) 207.149 Net Increasel(decrease) In cash (92.914) 12,955 Cash and cash equlvalents at the beglnnlng of the year 822,138 809,7 83 Cash and cash equlvalents at the end of the year 729.224 822,138 22
Open College LorKlon Regknn (O(JLR) Notes to the financSal statements For the year ended 31 July 2024 l Accountlng pollcles a) Statutory Informatlon Open College Network London Region is a charitable company limited by guarantee and is incorporared in England and Wales. The registered office address land principal place of business) is 24 Angel Gate. City Road, London. ECIV 2PT. b) Basls of preparatlon The financial statements have been prepared in accordance with Accountin9 and Reportlng by Charities: Statement of Recommended Practice applicable ro charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of I reland (FRS 102) - (Charities SORP FRS 1021, the Financial Reporting Standard applicable In the UK and Republlc of Ireland (FRS 1021 and the Companles Act 2006. Assets and liabilitles are inltlally recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. In applying the flnanclal reporiing framework, the trustees have made a number of subjective jud9ements, for example in respect of significant accounting estimates. Estimates and Judgements are continually evaluated and are based on historical experience and other factors, including ex pectations of f uture 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 sig nif icant estlmates and jud9emenis affeitlng these financial statements are detailed within the relevant accounting policy below. c> Publlc beneflt entlty The charitable company meets the definition of a public benefit entity under FRS 102. d) Golng concern The trustees consider tha¢ there are no material u ncertaintles about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimatlon uncertainty ai the reportin9 date that have a significant risk of causing a material adjustment to the carrying amou nts of assets and liabllities with in the next reporting period. e) Income Income is recognised when the charlty 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. 23
Open College Network LorKlon Region IOQ4LR) Notes to the flnancial statements For the year ended 31 July 2024 f) Interest recelvable Interest on funds held on deposit is included when receivable and the amount can be measured rel iably by the charity; this is normally u pon notification of the interest paid or payable by the bank. g> Fund accountlng Restricted funds are to be used for specific purposes as lald down by the donor. Expendlture which Meets these criteria is charged to the fund. Unrestricted funds are incoming resources received or generated for the charl(able purposes. Designated funds are unrestricted fund5 earmarked by the trustees for particular purposes. h) Expendlture and Irrecoverable VAT Expenditure is recognised once there 15 a legal or constructive obligation to make a payment to a third party, It Is probable that settlement wlll be required, and the amount of the obligation can be measured reliably. Expend iture on charitable activities includes the costs of delivering services and other educational actlvities u ndertaken to fu rther the pu rposes of the charity and their associated suppori costs. l) Allocatlon of support costs Resources ex pended are allocated to the particular activity where the cost relates directly to that activity. The cost of each activlty Is made up of the total of d I rect costs and shared costs, includ ing support costs involved in undertaking each activity. Governance costs are the costs associated wlth the governance arrangernents of the charlty. These costs are assoclated wlth constitutional and Statutory requirements and include any costs associated with the strategic rnanagement of the charity's activities. J) Operatlng leases Rental charges are charged on a straight-line basls 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. k) Tanglble flxed assets Items of equipment are capltalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets i n those activities. A55ets are reviewed for impairrnent if circumstances indicate their carrying value may exceed their net realisable value and value in use. 24
Open College Netwvrk tfjndon Reglon (OCNLR) Notes to the flnanclal statements For the year ended 31 July 2024 Depreciaiion is provided at rates calculated to write down the cost of each a55et to its estimated residual value over its ex pected usefu I life. The depreciation rates in use are as follows- Fixtures & fittings 4 years Computer Equipment 3 years l) Intanglble flxed asset Items of sofrware are capitalised where the purchase prlce exceeds £500. Depreciation costs are allocated to activities on the basi5 of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carryin9 value may exceed rheir 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.. Software 3 years m) Cash at bank and cash In hand Cash at bank and cash In hand includes cash and short term highly Ilquld investments with a short maturity of three months or less from the date of acquisition or openlng of the deposit or similar account. n) Credltors and prov151ons Creditors and provisions are recognlsed where the charity has a present obligatlon resultin9 from a past event that will probably resu It in (he transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and prov151ons are normally recognised at their settlement amount after allowing for any trade discounts due. o) Penslons Teacherfs Penslon Scheme (rps) The charity participates In the Teachers. Pension Scheme (England and Wales) ("the TPS") for its teaching s(aff. The pension charge for the year includes contributlons payable to the TPS of £15,328.79 (2023 £32,817.24). The TPS is an unfunded multi-employer defined benefit pension scheme governed by the Teachers, Pension Scheme regulations 2014. Members contribuie on a'pay as you go. basis wlth contributions from members and the employer belng credited to the Exchequer. Retiremeni 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 25
Open College NetsYorf( London Region {OCNLR) Notes to the financlal statements For the year ended 31 Juty 2024 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 I September 2019 pay a scheme administration levy of 0.08% of pay and will be payable over the remalnder of the period to March 2023 to ensure that the level of the notional fund at rhe next valuation of the scheme is expected to be unaffected by delay. The charity is unable to identlfy its share of the underlying assets and liabilltles of the scheme. Accordingly, the charity has taken advantage of the exemption in FRSI 02 and has accounted for Its conrributions to the scheme as if it were a defined contributlon scheme. Local Government Penslon Scheme (LGPS) The LGPS is a multi-employer defined benefit scheme, It is contracted out of the State Second Pension. The assumptlon and other data that the most slgniflcant effect on the determination of the contribution levels are as follows.. Latest actuarial valuation Actuarial method Discount rate Salary scale increases per annum Market value of assets at date of last valuation £6.053m Fund Surplus £1.63bn Fundlng Level 128% 31 March 2022 Prospective benefirs 5.2% The LGPS is a multl-employer pension scheme. The charlty Is unable to identlfy Its share of the underlying assets and liabilities of the scheme. Accordingly, the charity has taken advantage of the exemption In FRSI 02 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 £28.361 (2023 £57,835). No additional payment5 have been required this year to cover the deficit funded. (2023.. Nil). 26
Open College Neiwork London Reglon (OCNLR) Notes to the flnanclal statements For the year ended 31 July 2024 2 Income 2023 <10 months) Total 2024 Total Income from Charltable Activities Accred itations and reg istration income Unit Development income Subscriptions Other service income 1,542,888 28,526 238,949 56.589 1.866.952 1,472,290 1.330 206,336 32,720 1,722,676 Income from tradlng activitle5 Other income 70.961 23,180 Income from Investments Interest receivable 2,378 1,890 Total 1,940,291 1,747,746 27
Optn Colttgt London Regknn Note5 to the financlal statements For rhe year ended 31 July 2024 3 Expethdittife Expendliure on charltable aaivltle5 Covemance Co515 2024 Total E¥pendiiure on Governance 20Z3 110 morih51 Total C0515 Staff costs (Note 51 Moderators, feÈs 1,071,490 80.166 74.135 101.934 58.956 249.005 18,915 1.090,405 80,166 74,135 101,934 58.956 249,005 937.889 68,215 61,710 62.889 60.890 184,288 6,262 10.385 15,467 9S3,356 68,215 61,710 62,889 60.890 184,288 6,262 10.385 Sub5crlpiions and publlcatlons Ren15, rare5 and Insurance Telephone. postage and statlonery Con5ultancv Travel and sub5151ence Sundry expenses Dtpreclatlon Arnonl$4tlon Repalrs and rnalniÉnanc 74,979 433 63,170 14.747 8,811 10,909 63.170 14,747 65.740 65,740 33,8Z8 33.8Z8 10,909 Computer management and malntenance Legal and professional Bank charges and Iniere5r Publlcity and markotlng 8dd debi provlsion 9,269 9,269 5.066 5,066 33.732 2,670 24,386 33,732 2,670 24,386 23,590 2.609 15.878 8.921 64,000 3.650 23,590 2,609 15,878 8,921 64,000 3,650 23,581 1,662,700 72,338 2,990 72,338 2,990 12,600 1,938,255 Acctss Revalidation Governance costs 12,600 31,948 23.581 11,906,307 31,948 1,938,255 1,643,652 39,048 1,682,700 39,048 139.0481 vernance £05r5 Resourcei Expended 1.938,255 1,682,700 28
Open College Net¥ London Reglon IOCNLR) Notes to the financial statements For the year ended 31 July 2024 4 Net (expendlture)Ilncome Is stated after charglngl(credltlng): 2023 (10 months) 2024 Depreciation of tang ible f ixed assets Amortisation of intangible flxed assets Payments for operating leases Property Auditors remuneration for audit services for non-audit service5 63.170 14.747 65,740 112,270 57.631 11,700 ,375 10.950 1,300 The above audlt fees are excluslve of VAT. 5 Analysls of staff costs. trustee remuneration and expense5. and the cost of key management personnel The total staff and employee benefits for the period are analysed as follows.. 2023 (10 months) 2024 Wages and salaries Social Security Costs Employer contributions to pension plans Termination costs 913.692 92.688 43.784 40,240 1,090,405 787.650 83,966 81,740 953,356 The following number of employees received employee benefits (excluding employer penslon costs and employer's national Insurance) during the year between= 2023 (10 months) No. 2024 No. £60,000 - £69,999 £70,000 - £79,999 £80,000 - £89,999 £90.000 - £99,999 29
Open College Netrrf( London Reglon (O(NLR) Notes to the flnanclal statement5 For the year ended 31 July 2024 The total employee benefits (Including pension contributions and employer's national insurance) of the key management personnel were £173,778 (2023: £150,707). The charity trustees were neither paid nor received any other beneflts from employment with the charity in the year 12023= £nil). No charity trustee received payment for professional or other services su pplied to the charity (2024- £nil). Trustees, expenses represent the payment or reimbursement of travel and subsistence costs for two Trustees totalling £433 '12023'. £0) incurred by O (202 3.. 0) members relating to attendance at meetings of the trustees. 6 Staff numbers The avera9e number of employees (head count based on number of staff employed) during the year was 25 12023= 25) Staff are s plit across the activities of the charitable cornpany as follows (head count basi5).' 2023 (10 month5) No. 2024 No. Chief Executlve Off ice Administration Finance Information Technology Curriculum group Quality group 2S 25 7 Related party transactlons A number of trustees hold positions at OCNLR approved centres London. This includes= Natalie Garner - Croydon College and Kurt Hintz - Petroc College. All transactions were on normal commerclal terms and were made at arms-length. 8 Taxatlon The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 30
Open College NetsIk Lorthn Reglon {OCNLR) Notes to the flnanclal 5tatement5 For the year ended 31 July 2024 9 Fixed Assets Flxtures and flttlngs Computer equipment Tanglble fixed assets Total Cost At the start of the year Additions in year Transfer to intang ible fixed assets At the end of the year 183,808 188 49,611 21,747 (14,400) 56,958 233.419 21.935 (14,4001 240,954 183.995 Depreclatlon At the start of the year Charge for the year Transfer to intangible f ixed assets At the end of the year 48,329 45.968 7 8,007 17,202 (4,800) 30,409 66,337 63,170 (4.800) 124,707 94,297 Net Book value At the end of the year At the start of the year 89,698 135,478 26,549 31,603 116,247 167.081 Intan9lble fixed assets SOfare Total Cost At the start of the year Transfer from tangible fixed assets Additions in year Ai the end of the year 14,400 65,500 79.900 14,400 65,500 79.900 Depreclation A( the start of the year Transfer from tangible fixed assets Charge for the year At the end of the year 4,800 14.747 19,547 4.800 14,747 19.547 Net Book value At the end of the year At the start of the year 60.353 60.353 31
Open College Netsw)rk Lnndon Reglon (OCNLR) Notes to the flnancial statements For the year ended 31 July 2024 l O Debtors 2023 110 months) 2024 Trade debtors Prepayments and accrued income 206,005 33,653 239,658 155,080 98,689 253.769 I I Crtdltors: amounts falllng due wlthln one year 2023110 months) 2024 Trade creditor5 Accruals and deferred income Social secu rlty and other taxes Other creditors 83,082 85,587 20,357 9.837 198,863 129,623 148,190 31.281 15,368 324,462 Total Credltors: amounts falllng due after one year 2023110 months) 2024 Accruals and deferred income 36,280 10,228 Within accruals and deferred income as at 3110712024 there is £74k which relates to deferred income (2023- £65k). 2023 (10 months) 2024 Balance brought fornard Amounts released from prior reporting period5 Income deferred in the current year Balance carried forward 65,665 (18,403) 7,227 54,489 223.535 1223,535) 65.665 65,665 32
i.f Open College Nety•Drk LorKlon Reglon (0(LR) Notes to the flnanclal statements For the year ended 31 July 2024 12 Analysis of net assets between fund5 Unrestrlcted funds Fund balances at 31 July 2024 are represented by: Total Tangible Fixed Assets Intangible Fixed Assets Current Assets Creditors- amounts falling due within one year Creditors: amounts falling due after more than one year Total 116,247 60,353 968,882 (235.143) 136,280 910,339 ) 16.247 60.353 968.882 (235,143) 136,280> 910.339 Fund balances at 31 July 2023 are represented by: Tangible Flxed Assets Current Assets Credltors.. amounts falling due within one year 167,081 1,075,907 (324.463) 167,081 1.075,907 (324,463) Creditors: amounts falling due after more than one year (10,222) (10,222) Total 908,303 908.303 13 Movements In fund5 Balance at I 0110812023 Movement In funds Income Expendlture Balance at 31 3110712024 Unrestricted Funds General 908,303 1.940.291 (1,938,255) 910.339 Total Funds 908.303 1,940,291 (1,938,255) 910,339 Prlor year Balance at I 0111012022 Movement In funds Income Expendlture Balance at 31 3110712023 Unrestrlctod Funds General 843,256 1.747,746 (1 .682.700) 908.303 Total Fund5 843,256 1,747,746 (1 .682.700) 908.303 33
Open College NeMrt£ London Regknn (OCNLR) Notes to the flnanclal statements For the year ended 31 July 2024 14 Operating lease commltments The charity's total future minimum lease payments under non-cancellable operating leases is as fol lows for each of the followin9 periods. Property 2024 2023 110 months) Less than one year One to five years 57.631 57.631 57.631 57.631 57,631 57.631 15 Legal 5tatu$ of the charlty The Charity Is a company limited by guarantee and has no share capital. The liability of each member in the event of windlng up is limited to £1. 34