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2021-12-31-accounts

Charity Registration No. 1088936

Company Registration No. 4104466 (England and Wales)

LANGDON COLLEGE

(A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J Bolchover
Mrs S Fagelman (resigned 5 May 2021)
Mrs T Farley (resigned 17 February 2022)
Mrs A Levy
Mr B Miller
Mrs J Wolfe MBE
Governors (in addition to Mrs S Bourla
the Trustees) Mrs F Epstein
Mr P Miller
Ms A Rosen (appointed 1September 2021)
College Principal Jane Baker
Company Secretary Mr B Shine
Charity number: 1088936 (England and Wales)
Company number 4104466 (England and Wales)
Principal address 9 Leicester Avenue
Salford
Manchester
M7 4HA
Registered Office Unit 506,
Centennial Park,
Centennial Avenue,
Elstree,
Borehamwood
WD6 3FG
Auditor Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
Bankers Lloyds TSB
7thFloor
40 Spring Gardens
Manchester
M2 1EN

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees’ Annual Report 1-5
Independent auditor’s report 6-8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the accounts 12-20

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

The Trustees present their report and accounts for the period ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with Langdon College's Memorandum and Articles of Association, the Companies Act 2006, the Financial Reporting Standard (FRS 102) and the Statement of Recommended Practice, “SORP 2015”, issued in July 2014.

Reference and administrative details

Langdon College is a registered charity (No. 1088936) and a company limited by guarantee and not having a share capital (No. 4104466). The registered office is as shown on the legal and administrative page.

The Trustees on date of this report, all of whom served throughout the period up until the date of signing these accounts unless indicated below, are as follows:

Mrs A Levy Chairperson Mr J Bolchover Mr Ben Miller Mrs J Wolfe MBE

There are also four non-Trustee governors: Mrs S Bourla Mrs F Epstein Mr Peter Miller Ms A Rosen

The Senior Managers of the College to whom day to day management is delegated are Mrs Jane Baker (Principal), Paula Mitchell and Dianne Reeves (both Assistant Principals).

Structure, governance and management

The Board of Trustees is responsible for the overall governance of Langdon College as a charity. Trustees are coopted by the existing Board of Trustees or nominated by the Trustees of The Langdon Foundation. Individual Trustees may remain Board Members until death, resignation or by unanimous vote of the Board to terminate a Member's membership of the Company. There are no individual subscriptions or other sums payable by Members. The Langdon Foundation, as the sole member, has the right to appoint and remove trustees of Langdon College. The Trustees also act as Governors of the College and additional Governors may also be appointed.

The Trustees review management remuneration annually via the finance committee. The College ensures its salaries remain competitive in the labour market, paying individuals in line with normal industry practice and standards, and benchmarking salaries against other employers. Langdon College determines the pay range for a vacancy prior to advertising it, following the creation and/or amendment of a job description and specification. On appointment the starting salary is determined within that range to be offered to the successful candidate, based on relevant qualifications, experience and any recruitment and retention needs. Senior leadership salaries are based on the same economic factors specified above, such as, qualifications, experience and other factors such as supply and demand.

The external advisors of Langdon College are as set out on the legal and administrative page.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

Corporate governance

The Governors of the College meet regularly to ensure the data and performance is monitored and challenged. The college quality improvement plan is used to drive forward the development of provision and address the areas identified in need of improvement.

The Chair of Governors and Principal work together to ensure the Foundation Board are kept abreast of key strategic and operational decisions.

Induction and training for new Trustees and Governors is facilitated by the Chairperson and the College Principal. Trustees and Governors have the opportunity to meet all employees and students.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, specifically those related to the operations – including care and safeguarding - and finances of the charity and are satisfied that systems are in place to mitigate exposure to the major risks. Policies that are in place include Child and Adult Safeguarding, Anti-Bullying and E-safety. The Policies and the Systems and procedures that link to them are reviewed periodically to ensure that they still meet the needs of the charity. Financial risks are discussed in the Financial Review below.

The key risks that currently face Langdon College and the principal mitigating strategies are:

• Inability to recruit students which we manage by close liaison with local authorities to ensure the relevance and value of our offer, by maintaining the quality of our educational provision and by focused marketing initiatives.

• Safeguarding failure or adverse regulator opinion. The Trust keeps quality at the forefront of its strategy. The safeguarding risk is managed through recruitment policies, training, risk assessment, operating policy and incident reporting.

The Covid19 pandemic added an additional risk in 2020 and 2021 and we prepared specific action plans in response to the situation. Additional PPE has been purchased as needed and we have adapted our way of working with those we support and in our offices. Most of the income that relates to College from statutory sources has remained secure. Costs have been reduced where possible.

Objectives, activities, achievements and performance

The objectives of Langdon College is the education of Jewish young people, primarily between the ages of 16 and 25 years with special educational needs and disabilities. Langdon College is the only independent provider in the country making specialist residential and/or day provision specifically for Jewish learners with learning difficulties and/ or disabilities in the post 16 further education sector.

The main objectives for this period continued to be the provision of education and development of independent living and employability skills.

The College offers a range of activities, such as:

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

The key developments for Langdon College in 2021 are summarised below.

The College continued to develop the curriculum to ensure students develop their skills to enter the world of work and become as independent has possible. Our focus remains on our key strategic aims:

  1. To achieve high quality outcomes for our students by prioritising teaching and learning.

  2. To continue to improve levels of efficiency and to achieve outstanding financial health.

  3. To maximise opportunities for growth .

The Covid pandemic continues to have a significant impact on the College throughout 2021. The College continued to remain open when possible and successfully ensured that students could access learning online when needed. External work experience, for example, continued to be suspended and the focus of the curriculum delivery has been changed to reflect the mental health and well-being needs of students, families and staff. Attendance remained high at 95.7% and a learner survey in the Summer term of 2021 registered 95% of students being happy with their college experience, which in the light of the disruption is a tremendous achievement. The OFSTED inspection was disappointing as the overall grade was Requires Improvement. The report did note the hard work that had been undertaken around the students well-being and safeguarding.

Financial review, management policies and results for the period

The Statement of Financial Activities (SOFA), set out on page 8, shows that Langdon College had income of £1,296,318 (2020: £1,204,585) and expenses of £1,272,844 (2020: £1,169,091) leaving a surplus of £23,474 (2020: £35,495).

The Principal, as operations manager, discusses regularly with the Chair and quarterly with the Board, any concerns, risks and uncertainties that may face the College. The financial environment in which the College operates remains tight and will continue to do so for the foreseeable future.

The Education and Skills Funding Agency is the primary source of the educational fee funds, Elements 1 and 2. The Local Authorities are the commissioning agents and primary contributor of funds for the care and therapy services received by students, classed as Element 3.

Income has altered proportionally to the changes in student numbers, their level of dependency and need and, the change from residential to day placement. Additional income for student travel and extra-curricular and social activities has also been received.

The amounts received in donations this year was £16,673 (2020: £21,461). The College wishes to thank those who gave generously to its cause.

During the period, student numbers stand at 37. In September 2020 we rented a Jewish Care building in Edgware which improved both our capacity and facilities for students in Edgware, particularly in the light of Covid safety measures. This facility has been extended for up to an additional 10 years from September 2021.

Principal sources of funding

Local Authority contracts constitute the majority of the College's income.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

Reserves

The Trustees have established the level of reserves (that is those that are freely available) they believe the Charity require in order to carry out its activities. Reserves are needed to bridge the funding gaps between committed expenditure and receiving income from the Local Authorities. Reserves are also held to cover the possibility of a student discontinuing their education through illness, re-location, etc. during the academic year, resulting in a loss of fees. The level of unrestricted reserves is £198.965 (2020: £191,817). It should be noted that £13,122 (2020: £25,764) relates to Tangible Fixed assets, leaving £185,843 (2020: £166,053) available as free reserve for the continuity of business, representing 15% of 2021 costs (2020: 14%). The Trustees' current aim is to build free reserves equivalent to three months' budgeted costs, representing a fund of c£310,000. The reserves level will be reviewed each year. Costs continue to be monitored closely to ensure that efficiency is maintained whilst service provision increases. Restricted reserves are £40,057 (2020: £23,731). Total funds are £239,022 (2020: £215,548). The Langdon Foundation has issued a letter of support to the charity.

Investment policy and performance

The present investment policy is that Langdon College does not hold shares or investments.

Staff Training and Career Development

Langdon College is committed to the training, career development and welfare of its employees. An individual's career development is assessed through a Performance Management process that is linked to enhance teaching and learning.

Future plans

Langdon College will continue to offer a curriculum that will ensure the development of young people’s independence and work skills. Moving forward it is likely most of its provision will focus on a day provision. This is in light of an increasing focus by Local Authorities to provide local education provision, rather than a high cost residential environment.

The Principal has been tasked with ensuring relationships with the local authorities and local educational providers is strengthened. This approach will ensure increased growth in day students. The College continues to adapt its provision in order that this can continue remotely when necessary through the pandemic and when students have been unable to physically attend the College.

Connected charities

Langdon College is connected to three charities these being The Langdon Foundation, Langdon Community and Langdon Housing, which are all registered with the Charity Commission.

The Langdon Foundation has the right to appoint and remove trustees of Langdon College, Langdon Housing and Langdon Community.

Fundraising

The College does not undertake significant fundraising activities that fall within the definitions of the Charities (Protection and Social Investment) Act 2015.

Public benefit

The Trustees have complied with their duty in Section 4 of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission. The benefit to the public is manifestly demonstrated by the achievements contained in this report, all of which seeks to extend and improve the care of young people whose life chances, aspirations and contributions to society will be enhanced, as a result.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

Disclosure of information to auditors

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have each further confirmed that they have each taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Trustees’ responsibilities in relation to the financial statements

The Charity’s trustees (who are also the directors of Langdon College for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires the Charity trustees to prepare financial statements for each 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 charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 2006 and the charity’s constitution. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

On behalf of the board of Trustees

Mrs A Levy Trustee

Date 1 December 2022

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LANGDON COLLEGE

Independent Auditor’s Report to the Members of Langdon College

Opinion

We have audited the financial statements of Langdon College (‘the charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement 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 Financial Reporting Standard 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 trustee's 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 the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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 our audit

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LANGDON COLLEGE

Matters on which we are required to report by exception

In 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 directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), health and safety legislation, employment legislation, tax legislation, and CQC Regulations for service providers and managers.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LANGDON COLLEGE

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within income recognition, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Redwood Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

14 December 2022

LANGDON COLLEGE

(A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations
3
Charitable activities
4
Investment income
5
Total income
Expenditure on:
Charitable activities
Education and student
recreation
6
Total expenditure
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
funds
Total
funds
2021
Total
funds
2020
£
£
£
£
16,673
-
16,673
21,461
1,225,336
54,309
1,279,645
1,183,124
-
-
-
-
1,242,009
54,309
1,296,318
1,204,585
1,234,772
38,072
1,272,844
1,169,091
1,234,772
38,072
1,272,844
1,169,091
7,237
16,237
23,474
35,494
(89)
89
-
-
7,148
16,326
23,474
35,494
191,817
23,731
215,548
180,054
198,965
40,057
239,022
215,548

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

LANGDON COLLEGE Company registration number: 1088936 (England and Wales) (A COMPANY LIMITED BY GUARANTEE)

BALANCE SHEET

AS AT 31 DECEMBER 2021

Note
Fixed assets:
Tangible assets
14
Current assets:
Debtors
15
Cash at bank and in hand
Total Current assets
Liabilities:
Creditors: Amounts falling due within one year
16
Net current assets
Total net assets
The funds of the Charity:
17
Restricted funds
Unrestricted funds
Total funds
18		 2021
£
13,122
88,852
207,196
296,048
(70,148)
225,900
239,022
40,057
198,965
239,022		 2020
£
25,764
123,183
155,970
279,153
(89,369)
189,784
215,548
23,731
191,817
215,548

The financial statements have been prepared in accordance with the provisions applicable to companies’ subject to the small companies’ regime.

The notes at pages 12 to 20 form part of these accounts.

Approved by the trustees and authorised for issue on: December 2022 1

Mrs A Levy Trustee

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Cash flows from operating activities:
Net cash provided by/(used in) operating activities
20
Cash flows from investing activities:
Purchase of tangible fixed assets
Net cash (used in) investing activities
Cash flows from financing activities:
Interest received
Net cash provided by financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 Total
Funds
2021
Total
Funds
2020
£
£
53,591
(27,309)
(2,366)
(5,228)
(2,366)
(5,228)
-
-
-
-
51,225
(32,537)
155,970
188,507
207,195
155,970

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Preparation of the accounts on a going concern basis

The accounts have been prepared on a going concern basis and the trustees believe there to be no material uncertainties about the Charity’s ability to continue as a going concern. Following recent changes in the management structure, costs have been reviewed and are being aligned with anticipated income streams. If necessary, Langdon Foundation provides a letter of support to the College covering the period to 31 December 2023. More information in respect of factors affecting income and expenditure are set out in the Financial Review on page 3. Consideration has been given as the impact of the COVID 19 health emergency in 2020 and 2021 and the College has continued to be funded from the normal sources whilst modifying delivery of tuition.

1.3 Income

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

Income towards the provision of education is recognised in the year in which education is provided.

Income from government or other grants, whether “capital” grants or “revenue” grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Investment income is accounted for when receivable.

1.4 Expenditure

Expenditure is recognised on an accruals basis once the charity has entered into a legal or constructive obligation. Expenditure includes any VAT which cannot be fully recovered which is reported as part of the expenditure to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. All costs are allocated to the one charitable activity.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies

(Continued)

1.5 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment 25% straight line Motor vehicles 25% straight line Computers 33% straight line

All single items of equipment with a value less than £1,000 have not been capitalised.

The policy with respect to impairment reviews of fixed assets is that these assets are inspected regularly for any impairment and any defect remedied so as to maintain the current value.

1.6 Debtors

Trade and other debtors are recognised at the settlement amount due after any discount offered and provision for bad and doubtful debts. Prepayments are valued at the amount prepaid net of any discounts due.

1.7 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.

1.8 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 discounts due.

1.9 Financial instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Pensions

The Langdon Foundation operates a defined contribution scheme which certain College staff are members of. The College is also a member of the Teachers’ Pension Scheme (TPS) which is a multi-employer pension scheme available to teaching staff. It is not possible to identify the charity’s share of the underlying assets and liabilities of the TPS on a consistent and reasonable basis and therefore the scheme is accounted for as if it were a definedcontribution scheme. As a result, the amount charged in the financial statements represents contributions payable to the scheme in respect of the accounting period for both schemes.

1.11 Operating leases

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting Policies

(Continued)

1.12 Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted funds is set out in the notes to the financial statements.

Designated funds represent funds which are unrestricted but the Trustees have designed them for a specific purpose to further the objectives of the charity.

1.13 Critical accounting estimates and areas of judgement

In the application of the Charity’s accounting policies, Trustees are required to make judgements, estimates, and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

2 Legal status of the Charity

Langdon College is a registered charity (No. 1088936) and a company limited by guarantee and not having a share capital (No. 4104466). The registered office is Unit 506, Centennial Park, Centennial Avenue, Elstree, Borehamwood WD6 3FG

The company does not have share capital and is limited by guarantee. In the event of the company being wound up, the maximum amount which each member is liable to contribute is £10.

3 Income from donations

Donations

Unrestricted Restricted Total Total
funds funds funds funds
2021 2020
£ £ £ £
16,673 - 16,673 21,461

In 2020 all donations were unrestricted.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

4 Income from charitable activities

Fees
Other income and grants received		 Unrestricted
funds
Restricted
funds
Total
funds
2021
Total funds
2020
£
£
£
£
1,115,382
-
1,115,382
1,114,289
109,954
54,309
164,263
68,835
1,225,336
54,309
1,279,645
1,183,124

In 2020 income from charitable activities was allocated as follows: £1,122,563 to unrestricted funds and £60,561to restricted funds.

5 Investment income

nvestment income
2021 2020
£ £
Interest receivable (unrestricted funds) - -

6 Expenditure on charitable activities

Education and student recreation
Staff costs
Rent
Therapists and consultants
Food and provisions
Light and heat
Repairs and renewals
Other direct costs
Depreciation
Governance costs (see note 7)		 Total
2021
Total
2020
£
£
803,675
689,625
64,156
33,477
100,679
138,944
9,248
7,062
17,811
14,758
30,229
23,424
222,685
233,576
15,008
19,945
9,353
8,280
1,272,844
1,169,091

For 2020, expenditure on charitable activities was £1,169,091 of which £1,123,159 was unrestricted and £45,932 was restricted. All support costs are related to the provision of education and student recreation.

7 Analysis of governance costs

The Charity identifies those costs which relate to the governance function. Having identified its governance costs, these are all allocated against the one charitable activity.

Other governance costs comprise:
Audit
Other		 2021
2020
£
£
6,420
6,000
2,933
2,280
9,353
8,280

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. Net income / (expenditure) for the year

This is stated after charging:

Depreciation
Building lease rentals
Auditor’s remuneration		 2021
2020
£
£
15,008
19,945
64,156
33,477
6,420
6,000
85,584
59,422

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

Wages and salaries
Social security costs
Pension
he number of employees having benefits in excess of £60,000 were:
£70,000 to £80,000		 2021
2020
£
£
663,340
562,327
58,466
51,090
81,869
76,208
803,675
689,625
2021
2020
Number
Number
1
1

The number of employees having benefits in excess of £60,000 were:

The key management personnel of the Charity comprises the senior management team as detailed on page 1 of the trustees’ report.

The total payments made by the charity in respect of the senior management team were £236,246 (2020: £235,644).

There were no termination payments paid during the year (2020: none).

None of the Trustees (or any persons connected with them) received any remuneration during the period neither were they reimbursed expenses during the year (2020: £nil).

10 Staff Numbers

The average monthly head count of employees during the year was as follows:

Charitable activities
Administration
Total		 2021
2020
Number
Number
25
21
5
3
30
24

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

11 Pension and other post-retirement benefit commitments

The College participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £81,869 (2020: £76,208) and at the year-end £9,611 (2020 - £9,094) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). 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 by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019, the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020. As a result of the consultation, the government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the cost cap mechanism revision is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

12 Related party transactions

The charity is connected to The Langdon Foundation (registered charity number: 1142742, registered company number: 7621714), Langdon Community (registered charity number: 1086393, registered company number: 4055338) and Langdon Housing (registered charity number: 114743, registered company number: 7623246), all of which are incorporated charitable companies registered in England and Wales that do not have share capital and are limited by guarantee.

At the year end, the charity had a creditor of £31,938 (2020: £22,750) due to The Langdon Foundation. During the year the Langdon Foundation charged the charity building lease rents of £18,156 (2020: £18,144) which are included in the amount stated in Note 8 above, and recharges of £17,156 (2020: £16,900) for certain shared costs including Insurance and Audit.

The ultimate controlling party of Langdon College is The Langdon Foundation, a charitable company (charity number 1142742, company number 7621714) in whose accounts the results have been consolidated. The Langdon Foundation is the sole member of Langdon College. The Langdon Foundation owns properties, raises funds and gives donations to Langdon College, Langdon Community and Langdon Housing. Consolidated accounts for the Langdon Foundation can be obtained from the same registered office as the charity.

13 Corporation tax

As a charity, Langdon College is exempt from UK tax on income and gains to the extent that these are applied to its charitable objects. No UK tax charges have arisen in the Charity, during the year or the previous year.

14 Tangible fixed assets

Tangible fixed assets
Office Fixtures, Motor Total
equipment Fittings and Vehicles
equipment
£ £ £ £
Cost:
As at 1 January 2021 35,049 67,867 6,500 109,416
Additions - 2,366 - 2,366
As at 31 December 2021 35,049 70,233 6,500 111,782
Depreciation:
As at 1 January 2021 13,911 63,512 6,229 83,652
Charge for the year 11,683 3,054 271 15,008
As at 31 December 2021 25,594 66,566 6,500 98,660
Net book value
As 31 December 2021 9,455 3,667 0 13,122
As 31 December 2020 21,138 4,355 271 25,764
All assets are used for charitable purposes.

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

15
Debtors
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Trade creditors
Amounts owed to group undertakings
Taxation and social security costs
Other creditors
Accruals		 2021
2020
£
£
59,830
3,635
-
4,584
29,022
114,964
88,852
123,183
2021
2020
£
£
7,449
22,467
31,938
22,750
24,327
20,656
14
-
6,420
23,496
70,148
89,369

17 Analysis of charitable funds

Analysis of movements in restricted funds

Brotherton Real Estate
Norman Laski Memorial CT
City Bridge Trust
ESFA Pension Grant
ESFA Tuition Fund
ESFA Capital Programme		 Balance as
at 1 January
2021
Income
Expenditure
Transfers
between
Funds
Funds as at
31 December
2021
£
£
£
£
1,525
-
(155)
-
1,370
1,617
-
(1,706)
89
-
738
-
(738)
-
-
-
22,702
(22,702)
-
-
4,415
5,990
(10,405)
-
-
15,436
25,617
(2,366)
-
38,687
23,731
54,309
(38,072)
89
40,057

Analysis of movements in restricted funds – prior year

Laptops for students
Brotherton Real Estate
Norman Laski Memorial CT
City Bridge Trust
ESFA Pension Grant
ESFA Tuition Fund
ESFA Capital Programme		 Balance as
at 1 January
2020
Income
Expenditure
Transfers
between
Funds
Funds as at
31 December
2020
£
£
£
£
-
2,040
-
(2,040)
-
1,807
-
(282)
-
1,525
-
2,000
(383)
-
1,617
-
10,000
(9,262)
-
738
-
29,420
(29,420)
-
-
-
4,415
-
-
4,415
9,335
12,686
(6,585)
-
15,436
11,142
60,561
(45,932)
(2,040)
23,731

LANGDON COLLEGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

18 Analysis of net assets between funds

Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 December 2021 are
represented by:
Tangible fixed assets 13,122 - 13,122
Current assets 255,991 40,057 296,048
Creditors (70,148) - (70,148)
198,965 40,057 239,022
Analysis of net assets between funds – prior year
Fund balances at 31 December 2020 are
represented by:
Tangible fixed assets 25,764 - 25,764
Current assets 255,422 23,731 279,153
Creditors (89,369) - (89,369)
191,817 23,731 215,548

19 Commitments under operating leases

Commitments under operating leases
Land and Buildings
The future minimum payments under non-cancellable operating leases are: 2021 2020
£ £
Expiry date:
No later than one year 60,400 7,667
Later than one year and not later than five years 103,224 -
Reconciliation of net movement in funds to net cash flow from operating activities
2021 2020
£ £
Net movement in funds 23,474 35,494
Add back depreciation charge 15,008 19,945
Deduct interest income shown in financing activities - -
Decrease/(Increase)in debtors 34,330 (48,807)
(Decrease) in creditors (19,221) (33,941)
Net cash (used in) / provided by operating activities 53,591 (27,309)

20 Reconciliation of net movement in funds to net cash flow from operating activities