2025-07-31-accounts

Orchard Hill College

Annual Report and Financial Statements

31 July 2025

Charity Registration Number

1144922 Company Registration Number 07586715 (England and Wales)

Contents

Reports

Reports
Reference and administrative information	1
Trustees’ report (including strategic report)	3
Independent auditor’s report	20
Accounts
Statement of financial activities	24
Balance sheet	25
Statement of cash flows	26
Principal accounting policies	28
Notes to the accounts	33

Reference and administrative information 31 July 2025

Members John Brown Darren Coghlan Roger Mills (resigned 03.04.2025)[Irina (k/a Lisa) Grayston (Appointed 01.09.2025) ] Lionel Marumahoko (Appointed 01.09.2025) Trustees/Directors Peter Lauener (Chair) Rama Venchard (Vice Chair)[Angela O’Hara (Vice Chair) ] John Prior (CEO) Simon Fryer David Dangana Tim Borrie Douglas Glenday Kim Caplin Principal office Copthall House 9 The Pavement Grove Road Sutton Surrey SM1 1DA Telephone [phone] Website www.orchardhill.ac.uk

Executive Senior Leadership Team

CEO John Prior Chief Finance Officer Corrina Jenkins Chief Operating Officer Lloyd Hankin Deputy CEO Laurie Cornwell Executive Principal Kelly Phillips Executive Director of Development Lynn Barratt Executive Director of Quality & Standards Julia James

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Reference and administrative information 31 July 2025

External Auditor Buzzacott Audit LLP 130 Wood Street London EC2V 6DL Internal Auditor MHA (appointed 01.12.24) 2 London Wall Barbican London EC2Y 5AU Bankers Lloyds Bank Plc 49/53 High Street Sutton Surrey SM1 1DT Veale Wasborough Vizards Solicitors Narrow Quay House Narrow Quay Bristol BS1 4QA

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Trustees’ report (including Strategic Report) 31 July 2025

The Trustees present their statutory report together with the financial statements of Orchard Hill College (‘OHC’ or ‘the College’) for the year ended 31 July 2025.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and it is also the report of the directors for the purposes of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out on pages 28 to 32 and comply 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 United Kingdom and Republic of Ireland (FRS 102).

It should be noted that the Directors of Orchard Hill College are the Trustees and as such both terms are used interchangeably throughout this report.

OBJECTIVES AND ACTIVITIES

Orchard Hill College is an outstanding specialist college committed to offering social and vocational opportunities for students in the heart of their communities. Our vision statement is “Building Futures, Changing Lives” and this commitment informs everything we do.

Our provision is open to students over the age of 16 with a wide range of additional needs. All students are individual, and each programme is as unique as they are. Operating out of nine main centres and additional satellite provision across London and Surrey, our programmes are designed to support and empower each student to achieve their aspirations and goals, whilst developing skills to prepare them for adulthood. Alongside this, we work closely with families, local authorities, community stakeholders and other external partners in order to broker strong community partnerships that will support our students to build meaningful and fulfilling lives.

As a charity, our objects are to advance education, training, vocational and occupational opportunities for the benefit of the public in the following ways:

• ♦ promoting and widening participation in education, training, vocational and occupational opportunities, particularly for students with complex/profound/severe learning difficulties and/or disabilities and those who have been previously excluded from such opportunities and supporting practitioners who work with such students;

• ♦ improving the quality of education, training, work placements and employment prospects, particularly for students with complex/profound/severe learning difficulties and/or disabilities and those who have not previously been equitably represented in such opportunities and supporting practitioners who work with such students;

• ♦ recognising progress in all forms: promoting and improving access to education, training, work and employment opportunities, through the development and promotion of resources, provision, organisations and systems; and

• ♦ any other activity in its own work or work with others not covered by the above which, in the view of the Trustees, directly enhances the charity’s activities and objectives.

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ACHIEVEMENTS AND PERFORMANCE

Public benefit

In formulating the College’s aims and in planning its activities, the Trustees confirm that they have had due regard to the general guidance published by the Charity Commission on public benefit.

Orchard Hill College is an outstanding college and continues to be so. The College provides exceptional opportunities for learning and meeting the needs and aspirations of its students. OHC works closely with its many communities and commissioners, including 27 local authorities, to ensure that it is always responsive to increased student demand which is growing year on year. Specialist centres are sited in Camberwell, Kingston, Bermondsey, Wandsworth, Carshalton, Sutton and Hillingdon.

OHC is an Independent Specialist College listed in Section 41 of the Children and Families Act 2014 and also delivers work-related training through a GLA (ASF) funding grant. The College delivers the highly regarded Diploma in Further Education & Skills, validated by Canterbury Christchurch College University.

Student performance and achievements

Across all courses and centres, the quality of education students receive continues to be outstanding. Typically, 84% of teaching was never less than Good or Outstanding during 2024-25. The overall effectiveness of teaching is quality assured using the Teacher Evaluation Schedule (TES). OHC students help to design their programmes to achieve their aspirations and goals, whilst developing their skills and talents to become more independent in their lives in the future. The College is a busy, diverse and vibrant place to work and study, with a high focus on vocational programmes together with being part of the local communities it serves.

The College continues to hold Matrix Standard accreditation which affirms the many areas of outstanding practice, particularly in relation to careers education, information, advice and guidance (CEIAG).

The majority of students attend a full-time course. There are two types of course offerings:

• ♦ Foundation Skills for Life, a specialist post-19 programme for students with complex, profound, and severe learning difficulties and/or disabilities, and;

• ♦ Skills for Work and Living, for students with an aspiration or identified outcome in employment.

Both courses have four study programmes which are related to Preparation for Adulthood outcomes (employment, independent living, good health and friends and relationships in the community) and lead to individualised destinations in work, living and the community. The College also offers a range of work-related learning courses. The WorkStart programme suite comprises Supported Internships, Traineeships, Project Search, Pathway to Employment and Preparation for Employment. These programmes provide opportunities for students to gain relevant employability qualifications and work experience and to define their working ambitions for the future. They also give students, where appropriate, the opportunity to work towards achieving Functional Skills qualifications in English and maths. The courses are open to students who have experienced barriers to learning, including young people who are not in education, employment or training (NEET) as well as students with a learning difficulty or disability. A significant cohort of the students also have complex behaviours of concerns aligned to their disabilities.

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OHC is the education provider for the Project Search initiative in Hillingdon (working with the Local Authority and Hillingdon Autistic Care and Support), Sutton (working with the Local Authority and Sutton and St Helier Hospital), Lambeth (working with the Local Authority and Unity Works), Kingston (working with Achieving for Children) and Merton (working with the Local Authority). Project Search is a partnership project delivering one-year supported internships with the aim of securing paid employment for participants.

Overall student numbers increased from 476 in 2023-24 to 521 in 2024-25. Overall retention was an impressive 99%, up from 97.4% in 2023-24.

307 students were enrolled on the Foundation Skills for Life and Skills for Work and Living courses, a healthy increase on the previous year’s figure of 281. All achieved an outcome relevant to their individual EHCP ranging from employment, independent living, good health and friends and relationships in the community. Destinations remained strong: 77% of students progressed into employment and 9% into independent living outcomes, while 16% achieved outcomes related to friendships, relationships and community, and 6% achieved outcomes in good health.

The College's work-based learning provision continues to go from strength to strength, reflecting a commitment to expand opportunities within each college region. Two additional Supported Internship programmes were launched at the beginning of the 2024/25 academic year, bringing the total to six supported internships programmes across all College regions. Notably, 94% of students on WorkStart programmes achieved employment-related outcomes in 2024-25, with 21% securing employment before finishing their Supported Internship.

During the period under discussion, the College took the decision to pause its apprenticeship provision in order to conduct a thorough review of the delivery model and risk mitigation measures around effectively supporting apprentices with additional needs. Subsequently the College’s registration on the Apprenticeship Provider and Assessment Register (APAR) was withdrawn, in line with APAR conditions of acceptance around periods of non-delivery. The College will reapply to the APAR as and when apprenticeship provision recommences.

Other performance and achievements

The College has effective links with over 80 employers and community-based programmes; these provide outstanding progression into local supported living schemes, supported employment, internships and volunteering and Further Education and Adult Community programmes, as well as enhancing students’ educational and pastoral experience during their time with us.

The College estate is varied and geographically dispersed, and effective management is a key priority. During 2023-24 a comprehensive Estates Strategy was developed and implemented. This included recruitment to several key estates and facilities roles; suitability surveys conducted on two centres (Lomond House and Park View), which have supported ongoing discussions with London Borough of Southwark regarding identification of a suitable replacement site for Lomond House; preparation of Asset Management Plans to support ongoing planning in relation to the management of our estate; and the commissioning of Net Capacity Surveys which took place during the summer break, alongside a rolling programme of condition and suitability improvement projects. The Estates Strategy will continue to be rolled out during 2024-25 and beyond, to ensure OHC students can continue to access high quality learning opportunities in a safe and welcoming environment.

Safeguarding across the College continues to be outstanding, underpinned by a robust set of policies, procedures and training for all staff, which are informed by the SEND-specialist knowledge of OHC

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leaders and practitioners. All staff receive training as part of their annual safeguarding update as well as bespoke training and refreshers throughout the year. The College Designated Safeguarding Lead (DSL) oversees a team of Safeguarding and Mental Health Leads across the College who provide appropriate interventions and support as well as supporting the development of OHC’s student safeguarding ambassadors. All DSLs and SLT staff receive external clinical supervision, enabling more ethical and objective interventions.

The DSL works closely with OHC&AT’s Director of Safeguarding & Wellbeing and participates in the cross-organisational DSLs’ network alongside OHCAT DSLs. This has continued to be a rich source of knowledge exchange and resource sharing throughout 2024-25, enabling a consistent and evidenceled response to current safeguarding issues, as well as greater triangulation of compliance requirements. Through delivery of a bespoke curriculum including relationships, sex and health education, e-safety and British values, students learn how to safeguard themselves and how to apply this knowledge in a variety of settings, particularly focusing on contextual safeguarding in their local communities.

The College continues its journey to become Trauma and Mental Health informed, building on work done in previous years to develop and implement a bespoke Trauma-Informed Positive Behaviour Support approach that addresses students' behavioural and emotional needs holistically. College staff continued to access comprehensive training programmes to ensure the framework was embedded across all levels of the organisation. This training has fostered a greater understanding of trauma and mental health, equipping staff with the skills to provide proactive, compassionate support and improve overall student wellbeing.

OHC has 50 trained Mental Health First Aiders within the staff team, who augment this team approach through their work with staff and students. Internally a supervision structure is in place to support staff working with specific student groups, such as the PMLD cohort, or students who display behaviours of concern.

The Senior Mental Health Lead providing these internal sessions is a qualified therapist and completed an accredited supervision course in 2024-25 to further develop this practice and ensure staff are appropriately supported to work with students with varied needs.

Other notable achievements this year included confirmation from Ofsted in March 2025 that Orchard Hill College remains an Outstanding specialist provider across all areas. The College continued its focus on staff development and mental health, achieving a 99% retention rate across 521 students and delivering six Supported Internship programmes.

The vocational curriculum was expanded further, with students co-designing programmes and accessing new opportunities in podcasting, sports coaching, and broadcasting, all fully aligned with the Gatsby Benchmarks for careers education. The College’s Integrated Services team led national developments in therapy and clinical practice, embedding trauma-informed positive behaviour support and strengthening collaboration between curriculum and therapy teams.

Student experience remained a key priority, with 100% of students reporting that they feel safe at college, and strong participation in national campaigns, enrichment activities, and the Duke of Edinburgh Award scheme, which grew from 24 to 42 participants. Following the launch in 2023-24 of Club House, the College expanded its inclusive nightclub to a second venue in Hillingdon, providing unique social opportunities to new communities of young people with additional needs.

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The Parent and Carer Forum expanded its offer, hosting workshops on Positive Behaviour Support, trauma-informed practice and legal rights, supported by professionals from across health, housing, and community sectors. The College also committed to delivering its new 5-year strategy, focusing on employer engagement, further embedding its mental health and wellbeing strategy, and integrating innovative teaching technologies such as AI and adaptive learning tools.

OHC has a comprehensive and highly effectively Continuing Professional Development (CPD) programme in place to ensure that staff receive high quality training and development pertinent to their job role and to support succession planning. New starters undertake a rigorous two-week induction covering key compliance areas such as safeguarding, Positive Behaviour Support (PBS) and Team Teach, manual handling and therapeutic approaches to underpin curriculum delivery, which must be completed before they are cleared to work with students. All staff undertake regular training and refreshers on these subjects thereafter, as well as a range of specialist CPD focused on best practice within SEND. As a result, the quality of education students receive at Orchard Hill College is typically outstanding. Across the College and on all courses, during 2024-25 84% of teaching was never less than good and outstanding over time. Where teaching is less than good, lecturers benefit from a bespoke coaching and mentoring support package which includes peer, leadership and multidisciplinary interventions. This strategy ensures staff have every opportunity to improve their practice further in order to ensure the best outcomes for students.

Alongside regular INSET days, OHC runs a full Training Week in the October half term and an annual Development Planning Day for all staff. OHC Training Week took place on 21-25 October 2024, with staff accessing individualised training programmes spanning compliance matters and specialism focused content. Due to the College being inspected by Ofsted in the spring term, the annual Development Planning Day was held in the summer term and enabled the whole staff team to come together and celebrate OHC’s third consecutive grading as Outstanding in all areas. The day, held at Twickenham Stoop on Friday 6[th] June, was co-facilitated by College students and SLT staff, with a keynote from an external speaker on engagement and transforming lives alongside OHC and wider Trust updates, strategic discussions and team building exercises.

The College delivers the Diploma in Further Education & Skills (Dip FES), validated by Canterbury Christ Church University (CCCU), which offers staff a route into qualified Further Education (FE) teaching and a clear career progression pathway within the organisation. During 2024-25, 4 new trainees joined in Year 1, including 1 external candidate alongside 3 OHC staff, and 9 of the 10 existing trainees progressed to Year 2 of the course, with one withdrawal due to the staff member moving away. The revalidated qualification, which launched during the period under discussion, no longer includes separate specialist pathways, meaning that trainees from partner colleges can no longer join OHC’s programme for SEND-specific modules. In response to this change, the College has opened up recruitment to external applicants as well as OHC and OHCAT staff, and throughout 2024-25 worked closely with CCCU to develop a targeted marketing campaign for the course including liaison with other specialist post-16 providers via Natspec and a co-produced promotional video that will be available from 2025-26.

OHC offers Level 1 and 2 Functional Skills in Maths and English for all staff members who do not yet hold such qualifications. During 2024-25, the College delivered Level 1 and 2 Functional Skills English and maths courses to staff from OHC and OHCAT. Leaders and managers have an individualised CPD programme, including relevant higher level leadership qualifications. Two members of the College Senior Leadership Team have completed Level 7 leadership qualifications with distinction.

The Principal and SLT continue to make a regional and national contribution to government and advisory groups, influencing policy for the benefit of all students and the wider community. The College

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Principal is the Director for the Southwest Region of Natspec and represents SEND on the Association of Colleges (AoC) regional committee. The College Senior Leadership Team actively engages in regional and national forums, conferences and employer events, reflecting the College’s strong sector reputation and reinforcing its commitment to championing the voices and aspirations of OHC students.

During 2024-25, members of the College SLT were represented on national, regional and local bodies including:

• ♦ The PBS Alliance National Steering group and Schools and Colleges Community of Practice

• ♦ AoC’s Prevent Pilot Board, AoC’s sports inclusion hub and the Sutton Local Safeguarding Board.

• ♦ South and West London Careers Hubs

• ♦ The Careers and Enterprise Company

• ♦ Prevent Forum for London

• ♦ Learning Disability Network, Schools and College Network for therapy disciplines

• ♦ South London Lead Speech & Language Therapy (SALT), Occupational Therapy (OT), Physical Therapy (PT), Cognitive Analytic Therapy (CAT) specialist groups

• ♦ South London National Back Exchange forum

• ♦ Health Education Network for Co-Production (HENCop)

• ♦ SEND employment forums

• ♦ Supported internship forums

• ♦ Governors of SEND schools

The wider OHC&AT team also includes current and former badged Ofsted inspectors for both schools and further education. During the period under discussion the College collaborated with Natspec and Ofsted, aiming to deepen Ofsted's understanding of learners with additional needs and establish 'best practice' guidelines for their education, ensuring that all students receive the highest quality of learning tailored to their needs.

Orchard Hill College sponsors Orchard Hill College Academy Trust, which supports the development and delivery of high-quality educational provision for school-age children and young people with SEND. The symbiotic relationship between College and Trust promotes collaborative working and enables the exchange of best practice and specialist knowledge which enriches and strengthens the student and staff experience on both sides, as well as smoothing transitions for students moving from school to college.

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FINANCIAL REVIEW

Results for the year

A summary of the results for the year can be found on page 25 of the financial statements.

Income for the year totalled £22,036,000 (2024: £19,334,000). The major part of this income is in relation to core grants from the Education and Skills DfE Agency of £7,055,000 (2024: £5,761,000), and funding from Local Authorities for educational contracts of £14,368,000 (2024: £12,898,000).

Expenditure for the year, which principally related to the provision of education, totalled £21,444,000 (2024: £19,090,000).

The net surplus for the year ended 31 July 2025 as shown on the statement of financial activities was £592,000 (2024: £244,000). Excluding the pension current service cost and interest cost adjustments in relation to the Local Government Pension Scheme (LGPS) required by FRS 102 of £297,000 (2024: 145,000 credit), the net position would be a surplus of £295,000 (2024: surplus of £99,000).

Financial position and reserves policy

As at 31 July 2025, the balance sheet included net assets totalling £9,359,000 (2024: net assets of £8,026,000). This is comprised of:

• ♦ The Tangible Fixed Assets fund of £4,951,000 (2024: £4,690,000). This fund represents the net book value of the College’s tangible fixed assets net of any associated lease obligations and has been separated on the balance sheet in recognition of the fact that these assets are essential to the day-to-day operation of the College, and the value of the assets can therefore not be considered as realisable.

• ♦ The Pension Reserve Fund is £nil as at 31 July 2025 (2023/24: £1,038,000 deficit; Although the actuarial valuation identified a surplus, this has not been recognised due to the asset ceiling restriction under FRS102.This fund has been separated on the College’s balance sheet in order to distinguish the liability from the operational liabilities which form part of the College’s working capital.

• ♦ The Unrestricted General fund of £3,002,000 (2024: £4,370,000) are funds which are not represented by the tangible fixed assets fund, the pension reserve fund, restricted, or otherwise designated, and are in effect the College’s free reserves which are immediately available for general charitable use.

• ♦ Restricted funds of £9,000 (2024: £4,000) representing DfE funding carried forward.

• ♦ Designated unrestricted funds of £1,397,000 (2024: £nil) which have been set aside to cover future capital projects cost and possible future costs in relation to estate utilised by the College, particularly towards the end of the relevant lease term.

Maintaining an appropriate level of financial reserves is considered essential in protecting the charity from financial risk generated by, for example:

• ♦ Income reduction due to Government funding changes;

• ♦ Unexpected falls in student numbers;

• ♦ Cash flow issues due to delays in receipt of funding; and

• ♦ Emergencies.

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Financial position and reserves policy

In general, it is considered prudent to maintain a level of usable reserves sufficient to cover unexpected and unplanned events so that the individual College’s primary objective is preserved. At the same time, the College wishes to ensure that it uses its funding to benefit the students in its care which implies an imperative to consider actively the use of reserves to enhance educational provision.

The Board of Trustees monitors levels of reserves in financial reports provided by the Chief Finance Officer. Trustees look to ensure that a prudent level of reserves is maintained, bearing in mind the recurrent spending needs to ensure high quality provision. In deciding the level of reserves, Trustees take into account the following:

• ♦ One month’s salary bill;

• ♦ The College’s annual budget;

• ♦ The need for any large project spends such as facilities development or building condition needs; Any uncertainty, turbulence or expected reduction in funding arrangements, including the level of transitional protection within the College funding and its expiry date; and

• ♦ Anticipated funding over the next three years. As a prudent measure, the College will aim for between 45 and 60 consecutive days of free reserves based on annual expenditure before depreciation and pension adjustments.

During the year, the College achieved free reserves of 52 days based on the unrestricted fund balance at 31 July 2025 of £3,002,000 (2024: 85 days totalling £4,370,000), and cash (including short-term deposits) of 99 days of £5,794,000 (2024: 119 days totalling £6,086,000).

Of these reserves, £618,000 has been designated for capital projects committed beyond the reporting period including condition improvements as well as investment in the Sutton Life Centre project, which is scheduled to complete its final phase of works by October and November 2025.

A further £79,000 is designated for LGPS deficit repayments due between August 2025 and July 2027. The remaining reserves support operational expenditure, LGPS current service and interest costs. General reserves will also underpin the next phase of investment in College premises, including £250,000 designated to the Cherry Gardens Centre in Southwark.

The College has also designated £450,000 from general reserves to cover potential future dilapidation costs on leased properties.

Fundraising

The College accesses funds for specific projects that will benefit existing and future students where funds for these projects cannot be accessed via existing channels i.e. government education funding. The College will access funds for projects that will provide opportunities and enhance the learning experience and environment for students.

The code of fundraising practice is followed (https://www.fundraisingregulator.org.uk/code).

The College does not use commercial organisations to support its fundraising activities. There were no complaints concerning the College’s fundraising activities during the year.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The College is an independent charitable company. Its primary governance document is the Articles of Association.

As a charity and company limited by guarantee, Orchard Hill College is governed by a Board of Directors (also referred to as Trustees) who are responsible for, and oversee, the management and administration of the College. The Trustees have overall responsibility and ultimate decision-making authority for all the work of the College. This is largely exercised through strategic planning and the setting of policy. It is managed through business planning, monitoring of budgets, performance management, the setting of standards and the implementation of quality management processes.

The Trustees delegate certain responsibilities, through a scheme of delegation, to the Executive Senior Leadership Team (ESLT – see page 1 for details). The services of ESLT (excluding the Executive College Principal) are provided to the College by OHCAT as part of the core service charge service level agreement.

Organisational structure

Orchard Hill College has four Members, to whom the Board of Trustees report via the AGM (see page 1 for details).

Orchard Hill College established and sponsored Orchard Hill College Academy Trust in 2013. The College and the Trust are independent legal entities that collaborate closely together, working for the benefit of students and pupils in local communities. Together they are known as Orchard Hill College and Academy Trust (OHC&AT).Through a formal collaboration agreement, Orchard Hill College and Orchard Hill College Academy Trust share a committee structure, enabling Trustees from both organisations to collaborate and contribute their combined knowledge, skills and experiences. This shared approach strengthens the College Board by enhancing its decision-making and governance capacity. The shared committees are: Finance and Resources Committee, Quality, Standards and Safeguarding Committee, Audit and Risk Committee, and the People Committee. In addition to all committees meeting once a term, the Board of Trustees joins the Orchard Hill College Academy Trust Trustees in a joint Board meeting at the end of each term.

The Audit and Risk Committee (ARC) is responsible for maintaining oversight of the College‘s financial, governance, risk management, and internal control systems. Its responsibilities include monitoring and making recommendations to the Board on the effectiveness of internal scrutiny, ensuring that identified risks are being appropriately addressed, and reporting findings both regularly and annually to the Boards and the Accounting Officer. During 2024-25, a new internal scrutiny partner was appointed. This has introduced a shift towards deep-dive audits focused on high-risk areas such as cash management, procurement, IT infrastructure, and payroll. This forms a critical part of the Board’s annual reporting requirements and provides assurance on the adequacy of the internal control framework, covering governance, financial and non-financial controls, and risk management.

The Quality, Standards and Safeguarding Committee (QSSC) ensures that the College’s strategic vision and values are embedded across all aspects of its work. The Committee is responsible for monitoring and making recommendations to the Board on a range of key areas. These include the appropriateness and suitability of the curriculum offer, progress and achievement measures, and the strategic objectives relating to quality and standards, including their impact. The Committee also oversees the quality and effectiveness of pastoral care, wellbeing and welfare support for students, as

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well as safeguarding and child and adult protection processes and practice. Through this oversight, the QSSC plays a critical role in ensuring that students receive a high-quality, safe and supportive educational experience.

The Finance and Resources Committee plays a vital role in overseeing the financial and operational sustainability of the College. It monitors income and expenditure, evaluates the financial implications for the College and provides recommendations to the Trustees to support informed decision-making. The Committee also oversees estate management, including health and safety compliance, and the strategic development of IT infrastructure, ensuring that resources are effectively aligned with College priorities.

In addition to its focus on fostering a positive and supportive work environment that enables employees to thrive and contribute effectively, the People Committee also plays a key role in remuneration oversight. It considers salary arrangements for senior post holders, including the key management personnel of the College, and makes informed recommendations to the College Board for approval. This ensures transparency, fairness, and alignment with organisational values and strategic priorities. he Trustees, except for the CEO who is also a Trustee of the charitable company, did not receive any remuneration for their services to the College in the period of report; as noted above, the CEO is remunerated by Orchard Hill College Academy Trust and the College is recharged by the Academy Trust for their time under a service level agreement.

The Trust Board ensures proper oversight of the College through its termly Board of Trustees meetings, where strategic priorities, performance, and compliance are reviewed in detail. These meetings provide a formal mechanism for accountability and enable Trustees to monitor progress, challenge effectively, and support the College’s leadership in delivering high-quality outcomes for students.

In addition to the committee structure, most Trustees hold a designated portfolio holder role, which enables them to engage closely with senior leaders across key areas of the College. This structure supports strategic alignment and provides Trustees with deeper insight into operational progress, challenges, and outcomes. By maintaining regular dialogue with senior staff, Trustees are wellpositioned to offer informed support and scrutiny, contributing to effective governance and continuous improvement. To further strengthen their understanding of the College, all Trustees visit College sites throughout the year, enabling them to see first-hand what is happening on the ground and facilitating more informed and meaningful conversations with senior leaders.

Connected organisations

The College, as sponsor, is a Member of Orchard Hill College Academy Trust. To ensure appropriate representation and engagement at the Trust level, it has been agreed that the Chair of the College Board will represent the College at Trust Member meetings. This arrangement supports continued alignment between the College and the Trust, reinforcing shared values and strategic priorities. In addition, the College can appoint up to two Trust sponsor members and up to one sponsor Trustee to the Orchard Hill College Academy Trust board. The College and Academy Trust work closely together and are responsive to the requirements of each other. The aligned Executive Senior Leadership Team (ESLT) maintains a close working relationship with the College Senior Leadership Team. The Academy Trust provides operational support to the College in a number of areas including HR, Governance, Procurement, Finance and Facilities.

Support and Development for Members and Trustees

The Trustees (Directors) who served during the period and up to the date of approval of the report are included on page 1.

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The Director of Governance plays a central role in ensuring that all Members and Trustees are wellsupported throughout their governance journey. All new Members and Trustees receive a comprehensive induction upon appointment, designed to familiarise them with their responsibilities and the strategic context of the organisation. Ongoing support is provided throughout their term of office to ensure they remain confident and effective in their roles.

All Members and Trustees have access to a secure online governance portal offering a wide range of resources, including training materials and key documentation. In addition, they benefit from a robust package of online training modules through The Key, and the National Governance Association. These platforms offer essential training in areas such as safeguarding, health and safety, and equality and diversity, alongside broader governance topics.

To complement this, the College offers bespoke training sessions tailored to individual or collective needs. The Director of Governance also facilitates opportunities for Trustees to engage in wider development activities, including the annual joint Governors’ Conference held by the College and the Trust. The 2024 conference, held on 11[th] October, focused on the theme ‘Working Together and Enhancing Outcomes’. It was well attended and received positive feedback, offering valuable opportunities for training, development, and networking across both organisations.

Key management personnel

The Trustees consider the key management personnel for the College to include:

• ♦ The Trustees, and

• ♦ The Executive Senior Leadership Team:

• The CEO

• The Deputy CEO

• The College Executive Principal

• The Chief Finance Officer

• The Chief Operating Officer

• The Executive Director of Development

• The Executive Director for Quality & Standards

The Executive Senior Leadership Team (except for the College Executive Principal) all offer their services on a Service Level Agreement arrangement with OHCAT and are not direct employees of the College.

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FUTURE PLANS

Orchard Hill College, together with Orchard Hill College Academy Trust, operates as a collaborative family of specialist providers. Our mission is to support, enable and champion the talents, skills and rights of the most complex and vulnerable people in our society, so that we can release their potential, promote their wellbeing and transform their lives. As a community of learners, families and colleagues we believe that by working collaboratively, with energy and ambition, we can always effect positive change. At the core of our ethos is the conviction that there should be no limit placed on what is possible and that everyone has the ability to be the very best they can be.

Our learners require and receive a high-quality blended offer within their local context in order to meet their different needs and ambitions. By working together as a family, we can maximise the benefits to our pupils and students from having staff, leaders, governance and associates with extensive expertise and experience in both the special and mainstream sectors, from pre-school through to Further Education (FE).

Currently, the College offers specialist educational programmes for students aged 16 and over in nine main centres and additional satellite provision in London and Surrey. Provision is organised on a hub model, with College centres and Orchard Hill College Academy Trust schools clustered around four hubs:

• ♦ Sutton and Croydon – OHC Vocational Progression Centre, OHC Garratt House, OHC Robin Hood Lane, OHC Old Town Hall, plus Carew Academy, The Link School and Addington Valley Academy;

• ♦ Northwest London and Slough – OHC Park View, plus The PRIDE Academy, The Skills Hub and Arbour Vale School;

• ♦ Southwest London – OHC Beaconsfield, OHC Lomond House, OHC Camberwell Road, OHC Vocational Centre, OHC Cherry Gardens, plus Dysart School, St Philip’s School, Bedelsford School and Nightingale Community Academy;

• ♦ Surrey and Sussex – St Dominic’s School, Grafham Grange School, Brantridge School, Unified Academy.

The hub model supports effective cross-organisational working and best use of resources to benefit every OHC&AT student. The College operates in a combination of co-located and community-based centres, offering a curriculum closely aligned to the needs of pupils in each hub who are leaving OHCAT schools to attend the College. Each hub develops or forms partnerships with providers to ensure that resourced facilities may be accessed by multiple OHC&AT provisions as required; this may include vocational facilities, digital hubs, generic/specialist sports facilities, independent living practice suites, as well as continuing professional development opportunities for staff.

The development of the hub model has supported both College and Trust to offset potential limitations associated with geographical dispersion. By growing local excellence alongside OHCAT academies, the College has been able to smooth transitions for incoming students, provide additional learning opportunities through shared facilities and resources, and enable staff to build networks and share expertise. Each member of the College Senior Leadership Team acts as Regional Lead for a specific area or areas, liaising closely with both College centre staff and OHCAT academies in the hub to ensure that quality assurance, compliance processes and responsive localised support are robust.

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Trustees’ report (including Strategic Report) 31 July 2025

The period under discussion has seen the continuation of a planned shift in focus and a further evolution of strategic priorities. Building on the success of the College and the strong partnership with Orchard Hill College Academy Trust, the College strategy is structured around the following key priorities: The period under discussion has seen the drawing to a close of phase two of the organisational strategy, following a very successful five year period of implementation, and consultation across the year with Trustees, senior leaders, staff and other key stakeholders on the next evolution of the College’s strategic direction. Building on previous phases of growth, development and consolidation, the refreshed College strategy for 2025-2030 launches from September 2025 and remains structured around the following key priorities:

• ♦ Quality, standards and reputation: ensuring life-changing outcomes, meaningful destinations and quality of life for every young person within the organisation, through the delivery of consistently excellent teaching and learning across a rich and relevant curriculum offer;

• ♦ Innovation and specialism: growing and developing the existing wealth of specialist knowledge within the organisation through the establishment of internal and external professional networks, robust impact measurement processes that feed into year-on-year strategic plans, and active engagement in research;

• ♦ Development and growth: taking an ambitious, judicious approach to securing the future of the organisation, through capacity building, maximising financial probity and efficiency, and the strategic improvement of estates;

• ♦ System leadership: building influence and advocacy, and ensuring compliance and accountability, through a strong organisational culture that promotes responsive governance and leadership at all levels;

• ♦ Nurturing talent: future-proofing the organisation through a strategic approach to recruitment and retention, including training and development opportunities and career pathways that enable every staff member to maximise their potential within the College and the Trust.

In alignment with these strategic priorities, the College’s immediate future plans include further development of premises to meet local need and enable an innovative curriculum including vocational opportunities, ongoing staff and whole organisational development around the specialisms associated with the cohort, and the further development of the ICT offer to support students in and out of College.

In order to meet local demand and provide an enhanced student experience, from November 2025 the College will be expanding into Sutton Life Centre, absorbing the current provision at OHC Robin Hood Lane. The new centre will have space for 72 students who will be able to access a variety of work and vocational opportunities alongside existing community facilities.

The proposed campus is intended to offer local pathways to local young people who might benefit from having additional post-16 choice. As well as classroom spaces for young people with different needs and abilities, the campus would aim to ensure the provision of a flat for independent-living practice and a wide range of vocational workshops, giving young people sustainable employability skills.

The College internship offer will also be expanding, with an additional programme starting in the upcoming academic year at Orchard Hill College Academy Trust. This expansion further strengthens the College’s commitment to providing students with valuable, real-world work experience.

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Trustees’ report (including Strategic Report) 31 July 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees have assessed the major risks to which the College is exposed and have implemented strategies to manage those risks. The following key principles outline the College’s approach to risk management and internal control as set out in the Risk Management Policy:

• ♦ The Board of Trustees has responsibility for overseeing risk management within the College as a whole.

• ♦ An open and receptive approach to solving risk problems is adopted by the Board of Trustees.

• ♦ The Executive Senior Leadership Team, including the Executive Principal, support, advise on and implement policies approved by the Board of Trustees.

• ♦ The College makes conservative and prudent recognition and disclosure of the financial and nonfinancial implications of risks.

• ♦ Senior and middle managers are responsible for ensuring good risk management practice within their designated managed area.

• ♦ Key risk indicators are identified and closely monitored on a regular basis.

Principal risks are detailed in the risk register, which is reviewed by the Board of Trustees each term. Key risks include:

Quality

The College currently operates nine related but separate centres, with additional satellite provision where necessary to meet demand. Ensuring the delivery of a transformative, high quality of education and pastoral care is the central mission of OHC and crucial to its continued success and growth. The College’s robust quality and progression monitoring framework is fully embedded, enabling a deep understanding at executive level of each centre and work stream’s strengths and areas for development to inform targeted improvement initiatives, underpinned by robust quantitative and qualitative data.

Compliance

The College is geographically dispersed across four regional hubs. In addition, the College works to an underlying principle of localism supported by a central function. Such a local and regional focus means that individual centres can be more responsive to the bespoke nature of their context. It also reduces the risk of micro-management from a central function that may be less well informed about the local landscape and impose less efficacious solutions. Overarching this approach is the core role that OHC&AT plays in the monitoring and assurance of each College centre and work stream and in relation to statutory policies and procedures, key stakeholder engagement and the promotion of OHC’s broader mission and vision more widely. The reciprocal risk of this approach is that on matters of compliance, local variations could result in inconsistencies across the organisation.

Our well-developed and established risk assessment processes – particularly, but not exclusively, in relation to safeguarding, financial systems, processes and reporting, recruitment and statutory policies – ensure that the College has comprehensive executive oversight of risk and any behaviours that may be sub-optimal in relation to compliance, and is able to intervene appropriately, decisively and in a timely manner.

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Trustees’ report (including Strategic Report) 31 July 2025

Recruitment

Recruitment continues to be a risk for the college. Whilst some provisions have more challenges due to local and/or circumstantial reasons, such as Hillingdon and Southwark, all centres are experiencing challenges, which is consistent with the national picture.

The cost-of-living challenges, coupled with higher rates of pay being offered in some other industries (for example retail), have made it more challenging to recruit to roles at the lower end of the pay scales. It is particularly difficult to attract Learning Support Assistants and other support staff. This also applies to Integrated Services for the College (therapy and nursing), as availability of skilled personnel in this sector is diminishing. However, HR have diligently supported overseas recruitment for several members of Integrated Services staff and worked with key stakeholders to implement a reviewed set of terms and conditions for Integrated Services personnel that benchmark to the NHS Agenda for Change.

Estates

Over the past seven years, the College has seen significant growth not only in numbers on roll but also the wide range of need. In particular there has been an increasing pattern of students presenting with more profound and complex need which cannot be met within some of our centres. This is particularly pertinent for students within our VPC and Lomond centres, due to lack of suitable space and facilities.

The critical challenge currently facing the College is working within the constraints imposed by some of the current buildings. It has now come to a point where we have a mismatch between some of the accommodation and the demand for more complex student places. To meet the increased demand, we do need to work in partnership with local authorities to purchase or secure long term leases with enough building capacity to offer an innovative curriculum, to enable more young people to study in their local areas.

Infrastructure and capacity

To most effectively meet its strategic aims and objectives, the College requires an infrastructure for its business support services that enables it to operate in an efficient, coordinated and reliable way.

Systems and processes are well established, appropriately supported and remain under active review by ESLT and Trustees to ensure that they are effective and fit for purpose. Central support, as well as delivery to students, requires sufficient capacity, in terms of quality, number of personnel and coherent organisational management to promote exceptional outcomes.

As both an outstanding provider and the sponsor of a Multi Academy Trust, the College faces a range of potential challenges to its ability to continuously deliver high quality education and related services. The College and the Trust have taken steps to more closely align themselves in recent years, which increases the risk of issues impacting on both organisations rather than individually. The College has developed robust succession planning arrangements, developing leadership within the organisation and recruiting high quality staff to increase capacity, while strengthening cross-organisational support systems that encourage knowledge sharing and staff support targeted at areas of high demand. Internal reporting mechanisms have been synchronised across both organisations, allowing senior leaders to anticipate support needs and act rapidly to mitigate risk.

Over-expansion

Any organisation that expands too rapidly risks downturns in the quality of provision and financial overstretch, to the detriment of its reputation and quality. OHC has agreed a five-year strategy that allows for growth while retaining the focus on quality, standards and wellbeing. The current strategic

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Trustees’ report (including Strategic Report) 31 July 2025

focus is on growth in numbers through building on existing commissioning and expanding successful partnerships such as our Supported Internship programmes, further developing our outreach and advocacy work to enhance opportunities for learners with SEND wherever they may be, and strengthening the workforce through high quality CPD and robust succession planning.

Business continuity

Interruptions to typical activity can have a negative impact on the offer provided to OHC students. In a dynamically shifting national, regional and local landscape, threats to normal business continuity are complex and multifaceted; these might represent a physical threat of interruption such as damage to premises or restrictions such as those experienced during the pandemic, or a risk of interruption to crucial College operations through malicious acts e.g. cyber-attacks, fraud attempts, deliberate data breaches. OHC has a secure ethos, a clearly defined headline mission and vision, and a well-articulated and understood set of values, in addition to effective and responsive operational support via OHC&AT Central Teams. These combine to support the College to continue to deliver to a high standard even if working practices need to be adapted. Our suite of risk assessment and monitoring supports a detailed understanding of the overall operational picture across OHC at any given time. Identified threats to business continuity receive targeted intervention e.g. system security testing, refresher training.

Funding

The College is reliant on Government funding to support students whose additional support needs carry costs that exceed most other forms of ongoing funding. Variations in the funding methodology and levels of resource, as well as changes in eligibility criteria and uncertainty associated with major political events, create potential risk. OHC engages proactively with funding bodies to raise awareness of the potential impact of planned actions and maintains strong working relationships with external agencies to ensure that productive dialogue takes place at local, regional and national level. This risk is particularly acute in the forthcoming academic year and beyond; as inflation has significantly increased this is directly impacting on the cost of attracting and retaining staff, the procurement of goods and services, in particular energy and the cost of borrowing which would be needed to support our estates strategy. This, alongside a downward pressure from financially challenged Local Authorities via Commissioning Alliances to reduce pricing, will have a double effect.

Risk management

OHC regularly reviews the key risks to which its operations are exposed, together with the operating, financial and compliance controls that have been implemented to mitigate those risks. This year saw the implementation of a new risk management framework, following review and approval by Trustees. Trustees agree that there is a formal ongoing process for identifying, evaluating and managing the College’s significant risks; additionally, factors are in place that provide the organisation with the capacity to deal with issues or problems that occur, for example, an experienced Executive Senior Leadership Team, which can act quickly in response to unexpected events through forward planning, policies and insurance and through holding appropriate reserves. Risk is monitored specifically by the Audit and Risk Committee. This committee provides Trustees with independent assurances and assistance on their financial and performance reporting responsibilities, risk oversight and management, and system of internal control. The Audit and Risk committee has been considerably strengthened with the addition of experienced and highly skilled Trustees who report directly to the Board of Trustees.

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Trustees’ report (including Strategic Report) 31 July 2025

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of Orchard Hill College for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

• ♦ select suitable accounting policies and then apply them consistently;

• ♦ observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);

• ♦ make judgements and estimates that are reasonable and prudent;

• ♦ state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

• ♦ so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

• ♦ the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

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

Trustees’ report, including Strategic Report, approved by the Board of Trustees and signed on its behalf by:

Mr P Lauener Trustee

Date: 12 December 2025

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Independent auditor’s report to the members of Orchard Hill College

Opinion

We have audited the financial statements of Orchard Hill College (the ‘College’) for the year ended 31 July 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies, and the notes to the financial statements. 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:

• give a true and fair view of the state of the College’s affairs as at 31 July 2025 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 College in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, and includes the strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees’ report, which is also the directors’ report for the purposes of company law, and includes the strategic report, has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the College and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report including the strategic 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

• 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.

Responsibilities of Trustees

As explained more fully in the statement of trustees’ responsibilities, the trustees (who are also the directors of the College 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 College’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 College 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the College through discussions with management, and from our knowledge and experience of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the College, including the Charities Act 2011, Companies Act 2006, funding agreements with the DfE and associated funding rules, DfE regulations, data protection legislation, anti-bribery, safeguarding, employment, health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the College’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• reviewed journal entries to identify unusual transactions; and

• assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of trustee meetings; and

• • enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

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Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the College’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 College’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 College and the College’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Gumayel Miah (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP Statutory Auditor

130 Wood Street London EC2V 6DL

Date: 16 December 2025

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Statement of Financial Activities for the year ended 31 July 2025 (including Income and Expenditure Account)

Notes	Unrestricted funds £’000 Restricted funds £’000 2025 Total funds £’000	Unrestricted funds £’000 Restricted funds £’000 2025 Total funds £’000	Unrestricted funds £’000 Restricted funds £’000 2025 Total funds £’000	2024 Total funds £’000
Income from: Donations and legacies 1 Charitable activities Provision of education 2 Other trading activities 3 Investments 4 Total income Expenditure on: Charitable activities Donations and legacies 5 Total expenditure Net income Other recognised gains and losses Actuarial gains on defined benefit pension scheme 20 Net movement in funds Reconciliation of funds Fund balances brought forward at 1 August 2024 Fund balances Carried forward at 31 July 2025	12 - 12 21,512 118 21,630 138 - 138 256 - 256			5 18,922 233 174
	21,918 118 22,036			19,334
	21,331 113 21,444			19,090
	21,331 113 21,444			19,090
	587 5 741 -		592 741	244 1,304
	1,328 5 8,022 4		1,333 8,026	1,548 6,478
	9,350	9	9,359	8,026

All recognised gains and losses are included in the above statement of financial activities.

All of the College’s activities derived from continuing operations during the above two financial periods.

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Balance Sheet as at 31 July 2025

Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Short-term deposits Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 14 Net assets excluding pension liability Defined benefit pension scheme liability 20 Total net assets The funds of the College: Restricted funds Unrestricted funds 17 . Designated fund 19 . Tangible fixed assets fund 15 . Pensions reserve fund 16 . General fund 18	2025 £’000	2025 £’000	2024 £’000	2024 £’000
	1,957 1,500 4,294	6,167 4,382	829 1,997 4,089	5,929 4,351
	7,751 (3,369)		6,915 (2,564)
	1,397 4,951 - 3,002		- 4,690 (1,038) 4,370
		10,549 (1,190)		10,280 (1,216)
		9,359 -		9,064 (1,038)
		9,359		8,026
		9 9,350		4 8,022
		9,359		8,026

Approved by the Board of Trustees and signed on its behalf by:

Mr P Lauener (Trustee) Orchard Hill College Company Registration Number: 07586715 (England and Wales)

Date: 12 December 2025

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Statement of Cash Flows for the year ended 31 July 2025

	2024 £’000 2025 £’000 277 314 256 174 (776) (1,130) 497 (1,997) (23) (2,953) (49) (52) (49) (52) 205 (2,691) 4,089 6,780 4,294 4,089
Cash flows from operating activities: Net cash provided by operating activities A Cash flows from investing activities: Bank interest receivable Purchase of tangible fixed assets Short-term deposits Net cash used in investing activities Cash flows from financing activities: Interest on finance lease obligation Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 August 2024 B Cash and cash equivalents at 31 July 2025 B	277
	256 (776) 497
	**(23) **
	(49)
	**(49) **
	205 4,089
	4,294

Notes to the statement of cash flows for the year ended 31 July 2025

A Reconciliation of net income to net cash provided by operating activities

	2025 £’000	2024 £’000
Net income (as per the statement of financial activities) Adjustments for: Depreciation charge Bad debts provision Defined benefit pension scheme finance cost adjustment Defined benefit pension scheme service cost adjustment Interest receivable Interest payable on finance lease obligation (Increase)/decrease in debtors Increase/(decrease) in creditors Net cashprovided by operating activities	592 538 31 25 (379) (256) 49 (1,128) 805	244 467 - 96 (241) (174) 52 835 (965)
	277	314

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B Analysis of cash movements

Analysis of cash movements
	2025 £’000	2024 £’000
Cash at bank and in hand Change in cash and cash equivalents in the year Total cash and cash equivalents	4,089 205	6,780 (2,691)
	4,294	4,089

C Analysis of cash and short-term investments

		2025 £’000		2024 £’000 757 2,167 1,165 4,089 1,997 6,086 31 July 2025 £’000
Cash at bank and in hand Notice deposits (less than 3 months) Other saving accounts (0-3 months) Total of cash and cash equivalents Other saving accounts (3-12 months) as short-term deposits Total cash and short-term deposits		2,016 2,272 6
		4,294
		1,500
		5,794
Analysis of change in net debt
Cash at bank Loans falling due within one year Loans falling due after more than one year Total	4,089 205 (23) (3) (1,216) 26			4,294 (26) (1,190)
	2,850 228			3,078

D Analysis of change in net debt

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Principal Accounting Policies 31 July 2025

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year ended 31 July 2025. The comparative results are for the year ended 31 July 2024.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and the Companies Act 2006.

The College constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest thousand pounds.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

• ♦ the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge;

• ♦ the assumptions adopted by the Trustees and management in determining the value of any designations required from the College’s general unrestricted funds;

• ♦ the present value of the Local Government Pension Scheme defined benefit liability depends on several factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost for pensions include the discount rate and salary increase rate. Any changes in these assumptions, which are disclosed in note 19, will impact the carrying amount of the pension liability; and where the actuary estimates that the scheme is a net surplus position, a judgement has been made that this would not be recoverable (as explained within the pensions costs accounting policy below) and therefore no asset is recognised on the balance sheet.

• ♦ the discount rate applied in relation to the carrying value of building finance lease obligations.

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of at least one year from the date of approval of these financial statements.

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Principal accounting policies 31 July 2025

The Trustees of the College have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the College to continue as a going concern. The Trustees are of the opinion that the College will have sufficient resources to meet its liabilities as they fall due.

In forming this assessment, the Trustees have considered the impact of high inflation in recent years on the College’s activities with a particular focus on its effect on the College’s financial position including income, expenditure and reserves; the College’s beneficiaries; and its employees. The financial position, cash flow projections, and available reserves have also been reviewed and detailed in the Financial Review of the Trustees’ Report, taking into account the expected levels of funding from the Department for Education (DfE), Education and Skills Funding Agency (ESFA), Local Authorities (LAs) and other sources. Based on this review, the Trustees have concluded that the College has sufficient liquid resources to continue for the foreseeable future, despite the current pressures.

Income

Income is recognised in the year in which the College has entitlement to the income, the amount of income can be measured reliably, and it is probable that the income will be received.

Grants

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the year is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

Tuition fees and educational contracts

Fee and educational contract income is recognised in the year in which the education was delivered.

Donations

Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.

Assets donated to the College by Orchard Hill College Academy Trust have been accounted for based on the net book value of the asset in the Academy Trust balance sheet immediately before the date of transfer.

Net assets donated to the College by the London Borough of Sutton have been accounted for using the acquisition method. The assets and liabilities transferred were valued at their fair value and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised as net income in the statement of financial activities as donations income.

Interest receivable

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

Orchard Hill College 29

Principal accounting policies 31 July 2025

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure headings are as follows:

• a. Expenditure on raising funds - This includes all expenditure incurred by the College to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

• b. Expenditure on charitable activities - These are costs incurred on the College’s educational operations, including support costs and costs relating to the governance of the College. Governance costs comprise the costs involving the public accountability of the College (including audit costs) and costs in respect to its compliance with regulation and good practice.

All expenditure is inclusive of irrecoverable VAT.

Tangible fixed assets

All assets costing more than £2,000 and with an expected useful life exceeding one year are capitalised.

All assets are stated at cost less depreciation.

Depreciation has been calculated at the following rates in order to write off each asset over its estimated useful life:

• ♦ Leasehold Buildings – to match the length of the lease subject to impairment review.

• ♦ Motor Vehicles - 25% (4 years) straight line.

• ♦ Furniture & Equipment - 25% (4 years) straight line.

• ♦ Computer Equipment & Software - 33.33% (3 years) straight line.

• ♦ Major Works (£50,000 - £100,000) - 10%-20% (5-10 years) straight line.

Depreciation on assets in the course of construction is not charged until they are brought into use.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Orchard Hill College 30

Principal accounting policies 31 July 2025

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the College anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Pension costs

Retirement benefits to employees of the College are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes.

The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees’ working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the year to which they relate.

The LGPS is a funded scheme, and the assets are held separately from those of the College in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred.

Net interest on the net defined benefit liability is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Orchard Hill College 31

Principal accounting policies 31 July 2025

Where the scheme is estimated to be in a surplus position, under the reporting provisions of FRS 102, the College is only able to recognise the surplus as to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. As the College does not anticipate being able to recover the surplus in the aforementioned manner, the surplus is not recognised on the balance sheet, and a corresponding adjustment is made within other recognised gains and losses on the statement of financial activities (as an actuarial loss) to bring the net LGPS position to £nil on the balance sheet.

Leased assets

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the lease term.

Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their useful economic lives (or the term of lease if shorter). The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to the statement of financial activities over the year of the lease at a constant proportion of the outstanding balance of capital repayments.

Fund accounting

Restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor-imposed conditions.

Designated funds comprise monies set aside out of unrestricted funds for specific future purposes or projects, including:

• ♦ The tangible fixed assets fund represents the net book value of the College’s tangible fixed assets.

• ♦ The pension reserve fund represents the net defined benefit pension scheme liability is respect to the LGPS.

• ♦ A dilapidations reserve which has been set aside to cover possible future costs in relation to the estate utilised by the College, particularly towards the end of the relevant lease term.

Orchard Hill College 32

Notes to the financial statements 31 July 2025

1 Income from donations and legacies

Donations		2025 Total funds £’000 2024 Total funds £’000 6,150 4,770 905 991 7,055 5,761 14,368 12,898 207 192 - 71 21,630 18,922 18,922 Unrestricted funds 2025 Total funds £’000 2024 Total funds £’000 12 5	2025 Total funds £’000 2024 Total funds £’000 6,150 4,770 905 991 7,055 5,761 14,368 12,898 207 192 - 71 21,630 18,922 18,922 Unrestricted funds 2025 Total funds £’000 2024 Total funds £’000 12 5
Income from charitable activities: Provision of education Unrestricted funds £’000 Restricted funds £’000 ESFA / DfE: - 16-19 funding 6,067 83 - 19+ funding 901 4 6,968 87 Local Authority educational contracts 14,337 31 Other educational operations 207 - Other ESFA / DfE funding - Catch-up premium (Tuition Fund) - - Total 2025 21,512 118 Total 2024 18,696 226		2025 Total funds £’000 6,150 905 7,055 14,368 207 - 21,630 18,922
			4,770 991
			5,761 12,898 192 71
			18,922

2 Income from charitable activities: Provision of education

3 Income from other trading activities

Income from other trading activities
Other grants – DWP Access to Work Other revenue grants Miscellaneous income	Unrestricted funds
	2025 £’000 131 - 7 138	2024 £’000
		215 1 17
		233

Orchard Hill College 33

Notes to the financial statements 31 July 2025

4 Income from investments

Income from investments
Bank interest receivable		Unrestricted funds
		2025 £’000 256	2024 £’000 174

5 Expenditure on charitable activities: Provision of education

Staff costs (note 8) Educational supplies Allocated support costs (note 6) Total 2025 Total 2024	Unrestricted funds £’000	Restricted funds £’000 - 113 - 113 243	2025 Total funds £’000 14,599 1,063 5,782 21,444 19,090	2024 Total funds £’000 13,253 743 5,094 19,090
	14,599 950 5,782
	21,331
	18,847

6 Support costs

Support costs
Premises costs Administration costs Legal and professional fees ICT Cost Governance costs (note 7)	Unrestricted funds
	2025 Total funds £’000 2,314 3,185 134 117 32 5,782	2024 Total funds £’000
		2,182 2,737 85 63 27
		5,094

Administration costs above include £2,498,000 for the core service charge and business support services provided by Orchard Hill College Academy Trust (2024: £2,443,000). See also note 21 to these financial statements.

7 Governance costs

Governance costs
External auditor’s remuneration: - Teachers’ Pension assurance - Financial statements audit - Regularity assurance	Unrestricted funds
	2025 £’000 2 30 - 32	2024 £’000
		3 21 3
		27

Orchard Hill College 34

Notes to the financial statements 31 July 2025

8 Staff costs

Wages and salaries Social security costs Pension costs: - TPS contributions payable - LGPS contributions payable - LGPS service and finance cost adjustment Severance payments	2025 £’000 12,091 941 750 1,158 (354) 13 14,599	2024 £’000
		10,967 756 549 1,107 (145) 19
		13,253

Staff numbers

The average number of persons employed by the College during the year was as follows:

Lecturers & management Teaching support staff Admin staff	2025 Number 67 192 25 284	2024 Number
		70 183 25
		278

The number of employees whose annualised emoluments (including taxable benefits in kind but excluding employer pension costs) exceeded £60,000 were as follows:

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £100,001 - £110,000	2025 Number 4 4 3 - 1	2024 Number
		2 8 2 - 1

Remuneration of key management personnel

The Trustees consider that they, together with the Executive Senior Leadership Team, comprise the key management personnel of the charity in charge of directing and controlling, running and operating the College on a day-to-day basis.

Trustees were not remunerated for their services to the College apart from the CEO, who is an employee of Orchard Hill College Academy Trust, and is remunerated by the College under a service level agreement with the Academy Trust (see note 21 Related Party Transactions).

The total remuneration of the Principal for the year ended 31 July 2025 (including employer pension contributions and employer national insurance contributions) was £156,000 (2024: £143,000).

Other members of the Executive Senior Leadership Team are employed by Orchard Hill College Academy Trust and the split of the remuneration attributable to the College and the Academy Trust individually cannot be determined with sufficient reliability. The total remuneration (including employer pension contributions and employer national insurance contributions) of the Executive Senior Leadership Team

Orchard Hill College 35

Notes to the financial statements 31 July 2025

(payable by Orchard Hill College Academy Trust) for the year ended 31 July 2025 was £1,063,000 (2024: £924,000).

As noted in the Trustees’ report, Orchard Hill College continues to be the academy sponsor of Orchard Hill College Academy Trust. Further information regarding transactions between the College and the Academy Trust is given in note 21.

9 Trustees’ expenses

Trustees may claim reimbursement for any out-of-pocket expenditure incurred in connection with their duties as Trustees of the College. During the year ended 31 July 2025, four trustees received reimbursement for travel and subsistence expenses totalling £692 (2024: NIL)

10 Net income for the year

is stated after charging:

Staff costs (note 8) Depreciation (note 11) Operating lease rentals Externalauditor’sremuneration	2025 £’000 14,599 541 728 30	2024 £’000
		13,253 467 581 29

11 Tangible assets

Cost or valuation At 1 August 2024 Additions Disposals At 31 July 2025 Depreciation At 1 August 2024 Charge for the year Released on disposal At 31 July 2025 Net book values At 31 July 2025 At 1 August 2024	Long Leasehold Buildings £’000 Assets under construction £’000 Furniture and Equipment £’000 Motor Vehicles £’000 IT Asset £’000 Total £’000
	6,692 - 605 199 1,653 9,149 273 212 64 149 86 784 - - - - (8) (8)
	6,965 212 669 348 1,731 9,925
	1,560 - 332 114 1,214 3,220 307 - 84 30 120 541 - - - - (3) (3)
	1,867 - 416 144 1,331 3,758
	5,098 212 253 204 400 6,167
	5,132 - 273 85 439 5,929

At 31 July 2025, the Trust had capital commitments of £51,000. This mainly relates to retention accruals for completed capital projects, where part of the cost is being held back in line with contract terms. This

Orchard Hill College 36

Notes to the financial statements 31 July 2025

also includes amounts associated with the OHC Cloud Migration Project. As at 31 August 2025, the Trust held £212,000 in assets under construction, primarily relating to capital works at the Sutton Life Centre site. These projects are ongoing and will be transferred to the appropriate asset category once completed and brought into operational use.

12 Debtors

Educational fees receivable VAT recoverable (see note 13) Prepayments and accrued income Other debtors	2025 £’000 328 916 700 13 1,957	2024 £’000
		186 - 630 13
		829

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year	1,957	829
Trade creditors Accruals Deferred income Finance lease obligation (note 14) Other taxation and social security GPC expense Movements on deferred income (included above) Balance brought forward at 1 August 2024 Income deferred in current reporting year end Amounts released to income from prior reporting year end Balance carried forward at 31 July 2025	2025 £’000 - 1,568 584 26 1,184 7 3,369 487 521 (424) 584	2024 £’000
		1,071 635 487 23 347 1
		2,564
		437 327 (277)
		487

Deferred income in the main relates to funding received in advance from the DfE and local authorities.

Following confirmation from HMRC that the Trust should have been accounting for VAT as a ‘private school’ under HMRC’s guidance, a reconciliation has been prepared covering VAT periods from 1 January 2025. This has resulted in a balance of VAT owed to HMRC of £612,000 (included within ‘other taxation and social security’ creditors above). This balance is recoverable in full from the Local Authority and therefore also recorded within year end debtors along with additional VAT recoverable on taxable supplies of £304,000 (see note 12). Only supplies relating to students with EHCPs who are receiving education have been treated as taxable, in line with HMRC advice.

Orchard Hill College 37

Notes to the financial statements 31 July 2025

14 Creditors: amounts falling due after one year

On 31 July 2025, the present value of future minimum lease payments in respect to finance lease obligations for the College was as follows:

Finance lease obligation Amounts falling due within one year (note 13) Amounts falling due after one year: . Amounts falling due between one to two years . Amounts falling due between two to five years . Amounts falling due after more than five years Total finance lease obligations	2025 £’000 1,190 2025 £’000 26 28 96 1,066 1,190 1,216	2024 £’000
		1,216
		2024 £’000
		23
		26 90 1,100
		1,216
		1,239

The above obligations are in respect to long-leasehold properties transferred from the London Borough of Sutton and have been discounted at a rate of 4% and 5.25% respectively.

15 Tangible fixed assets fund

At 1 August 2024 Net movement in year At 31 July 2025	2025 £’000
	4,690 261
	4,951

The tangible fixed assets fund represents the net book value of the College’s tangible fixed assets net of associated finance lease obligations. A decision was made to separate this fund from the general funds and other funds of the College in recognition of the fact that the tangible fixed assets are essential to the day-to-day work of the College and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

16 Pension reserve fund

At 1 August 2024 Net movement in year At 31 July 2025	2025 £’000
	(1,038) 1,038
	-

Orchard Hill College 38

Notes to the financial statements 31 July 2025

The pension reserve fund represents the College’s share of the net liability in respect of the Local Government Pension Scheme. This fund has been separated on the College’s balance sheet in order to distinguish the liability from the operational liabilities which form part of the College’s working capital. In accordance with FRS 102 Section 28.22, the College has not recognised the pension surplus of £1.801 million arising from the Local Government Pension Scheme (LGPS) on the balance sheet as at 31 July 2025. This is due to the application of the asset ceiling, which limits recognition to the extent that the surplus is recoverable through reduced future contributions or refunds from the scheme. Although the actuarial report confirms that the maximum recognisable surplus is approximately £6.5 million, the College has adopted a prudent approach consistent with sector practice and Orchard Hill College Academy Trust (OHCAT) policy. The surplus has therefore been restricted to £nil.

17 Restricted funds

The income funds of the College include restricted funds comprising the following balances of donations and grants held on trust to be applied for specific purposes.

Other restricted DfE funding LA Pupil Equipment funding	At 1 August 2024 £’000 2 2 4	Income £’000 87 31 118	Expenditure £’000 (83) (30) (113)	At 31 July 2025 £’000
				6 3
				9

The specific purposes for which the monies are held are as follows:

Other restricted DfE funding - this comprises monies received from government, the use of which is limited to very specific purposes in line with the grant conditions.

LA Pupil Equipment funding- this comprises funding received from local authorities specifically to support the purchase of equipment and resources for individual people. The use of these funds is restricted to meeting the educational and developmental needs of those pupils, in accordance with the conditions set by the respective local authorities.

18 Analysis of net assets between funds

Tangible fixed assets Debtors Cash at bank and in hand Short-term deposits Creditors due within one year Creditors due after more than one year	Unrestricted funds General funds £’000 Tangible fixed assets fund £’000 Designated Reserves £’000 Pensions reserve fund £’000 Restricted funds £’000 2025 Total funds £’000
	- 6,167 - - - 6,167 1,957 - - - - 1,957 2,897 - 1,397 - - 4,294 1,500 - - - - 1,500 (3,352) (26) - - 9 (3,369) - (1,190) - - - (1,190)
	3,002 4,951 1,397 - 9 9,359

Orchard Hill College 39

Notes to the financial statements 31 July 2025

Unrestricted general funds comprise those monies which may be used towards meeting the objectives of the College at the discretion of the Trustees. The Trust may designate unrestricted reserves to support strategic priorities, manage financial risks, or meet potential future obligations.

19 Designated funds

Orchard Hill College has designated a portion of its unrestricted funds to cover potential future dilapidation costs relating to leased properties, where lease agreements may give rise to obligations upon exit. No provision has been made in the financial statements due to uncertainty around timing and cost. However, given this possible exposure, the trustees have elected to ringfence a sum of £450,000 (2024: £nil) from the College’s unrestricted fund as a designated fund to cover any potential future outflows. The amount designated has been informed by an assessment of the College’s Estates Team which has considered the condition of each property and past experience. This does not impact the reported surplus, brought forward reserves, or financial health grading.

Designated funds also include £618,000 for capital projects committed beyond the reporting period including condition improvements as well as investments in Sutton Life Centre project. It also underpins the next phase of investment in college premises, including £250,000 designated to the Cherry Gardens Centre in Southwark.

Also, £79,000 has been designated for LGPS deficit repayments due between August 2025 and July 2027.

Designated funds allocation	Amount (£’000)
Capital projects (Hillingdon, Southwark, Sutton Life Centre)	618
Capital projects (Cherry Gardens Centre)	250
LGPS deficit repayments (Aug 2025 – Jul 2027)	79
Future Dilapidation cost	450
Total	1,397

20 Pension and similar obligations

The College’s employees belong to two principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by London Borough of Sutton Pension Fund. Both are multi-employer defined benefit schemes.

Orchard Hill College 40

Notes to the financial statements 31 July 2025

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the Teachers’ Pension Scheme was carried out as at 31 March 2020. The valuation report was published in 2023 and sets the employer contribution rate payable from 1 April 2024. The LGPS is valued every three years, with the latest valuation as at 31 March 2022.

Contributions amounting to £197,000 were payable to the schemes at 31 July 2025 (2024: £178,000) and are included within creditors.

Teachers’ Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The actuarial valuation of the TPS which applied during the year ended 31 August 2025 was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation and subsequent consultation are:

• ♦ employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy) from 1 April 2024, which is 5% increase from 23.68% prior to this date, and the cost control result is such that no change in member benefits is needed.

• ♦ total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.

• ♦ the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 1.7% above the rate of CPI.

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The College has accounted for its contributions to the scheme as if it were a defined contribution scheme. The College has set out above the information available on the scheme.

The employer’s pension costs paid to TPS during the year amounted to £750,000 (2024: £549,000).

Local Government Pension Scheme (LGPS)

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 July 2025 was £1,467,000 (2024: £1,395,000), of which employer’s contributions totalled £1,150,000 (2024: £1,095,000) and employees’ contributions totalled £317,000 (2024: £300,000).

Orchard Hill College 41

Notes to the financial statements 31 July 2025

Principal actuarial assumptions At 31 July 2025 % Rate of increase in salaries 2.65 Rate of increase for pensions in payment 2.65 Discount rate for scheme liabilities 5.75 Inflation assumption (CPI) 2.65	At 31 July 2024 %
	2.70 2.70 5.00 2.70

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations from retirement age 65 are:

The assumed life expectations from retirement age 65 are:
Retiring today Males Females Retiring in 20 years Males Females	2025 Years 19.5 23.5 20.5 24.3	2024 Years
		19.2 24.3 20.2 24.2

Orchard Hill College 42

Notes to the financial statements 31 July 2025

The College’s share of the assets in the scheme were:

Equities Bonds Property Cash Other Total market value of assets	Fair value 2025 £’000 6,985 2,667 890 1,143 1,015 12,700	Fair value 2024 £’000
		6,325 1,851 729 729 1,160
		10,794

Amounts recognised in statement of financial activities:

Current service costs Net interest cost Administration expenses Total operating charge in currentperiod	2025 £’000 771 25 57 853	2024 £’000
		854 96 54
		1,004

Changes in the present value of defined benefit obligations were as follows:

Opening balance Current service cost Interest cost Employee contributions Actuarial gain Benefits paid Defined benefit obligation as of 31 July 2025	2025 £’000 11,832 771 597 317 (2,515) (103) 10,899	2024 £’000
		11,122 854 562 300 (906) (100)
		11,832

Changes in the fair value of the College’s share of scheme assets:

Opening balance Interest income Actuarial gain Employer contributions Employee contributions Benefits paid Administration expenses Fair value of fund assets as of 31 July 2025	2025 £’000 10,794 572 27 1,150 317 (103) (57) 12,700	2024 £’000
		8,689 466 398 1,095 300 (100) (54)
		10,794

Orchard Hill College 43

Notes to the financial statements 31 July 2025

Movement in liability Interest cost (net of interest income on assets) Current service and past service costs, net of employers contributions Administration expenses Actuarial gain	2025 £’000 1,038 25 (379) 57 741	2024 £’000 1,395 96 (241) 54
		1,304

In accordance with FRS 102 Section 28.22, the College has not recognised the pension surplus of £1.801 million arising from the Local Government Pension Scheme (LGPS) on the balance sheet as at 31 July 2025. This is due to the application of the asset ceiling, which limits recognition to the extent that the surplus is recoverable through reduced future contributions or refunds from the scheme.

Although the actuarial report confirms that the maximum recognisable surplus is approximately £6.5 million, the College has adopted a prudent approach consistent with sector practice and Orchard Hill College Academy Trust (OHCAT) policy. The surplus has therefore been restricted to £Nil.

The adjustment has been reflected within the actuarial remeasurement gain reported in Other Comprehensive Income.

21 Related party transactions

Owing to the nature of the College’s operations and the composition of the Governing Body being drawn from local public and private sector organisations. It is inevitable that transactions will take place with organisations in which a Governor may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the College’s financial regulations and normal procurement procedures.

Related party income

The College collaborates with Orchard Hill Academy and Trust and its academies, which provide learning support services to the College. For the year ended 31 July 2025, theses amounted to £50,617 (2024: £243,000).

Related party expenditure

During the year, the College received services from Orchard Hill College Academy Trust under service level agreements, at cost of £2,498,000 (2023: £2,443,000). This included recharges of leadership and support staffing costs, IT support, MIS services, marketing services, governance, training, safeguarding, legal, procurement and occupational health services. All services were provided at cost.

In addition to the above, the following transactions took place between the College and individual academies within the Academy Trust:

• ♦ A College centre is based at one of the academies of Orchard Hill College Academy Trust; the College pays occupational costs of £47,000 (2024: £51,000);

• ♦ During 2024-25, College students accessed a vocational provision delivered by one of the academies; the cost of these courses amounted to £47,000 (2024: £60,000).

Orchard Hill College 44

Notes to the financial statements 31 July 2025

• ♦ The College has a service level agreement to reimburse the Academy Trust for costs incurred in relation to Garratt House, a College site transferred from the Academy Trust on a 50-year lease. In the year to 31 July 2025, the College paid £12,000 (2024: £12,000);

• ♦ All of these transactions were provided by Orchard Hill College Academy Trust at cost.

Receivables and payables

At 31 July 2025, the amount due to the Academy Trust from the College was £11,000, and is included within debtors (2024: £40,000 due from the Academy Trust to the College) The amount due to the Academy Trust from the College at 31 July 2025 was £41,000 included within creditors (2024: £717,000).

Protocol Education Ltd A company from which the Orchard Hill College purchased staffing services totalling £205,993 net of VAT during the year. Douglas Glenday, Trustee of Orchard Hill College (appointed 1 September 2024), was also a director of Protocol Education Ltd until 21 July 2025. There were no outstanding balances at 31 July 2025. Also, the college raised invoices totalling £1,028 during the year to Protocol Education Ltd. A balance of £1,000 remained outstanding at 31 July 2025.

Teaching Personnel Ltd – A company from which the College purchased education staffing and tutoring services, totalling £31,184 net of VAT during the year. Douglas Glenday, Trustee of Orchard Hill College, was also a director of Teaching Personnel Ltd until 21 July 2025. There were no outstanding creditor balances at 31 July 2025.

The above contracts with agencies were existing before 1 September 2024 when Douglas Glenday was appointed as trustee of Orchard Hill College.

22 Operating lease commitments

At 31 July 2025, the total of the College’s future minimum lease payments under non-cancellable operating leases was as follows:

Amounts due within one year Amounts due within one to two years Amounts due after more than five years	At 31 July 2025 £’000 636 2,026 5,623 8,285	At 31 July 2024 £’000
		461 1,895 6,052
		8,408

Orchard Hill College 45

23 Events after the balance sheet date

Since the balance sheet date, Orchard Hill College has continued to progress a number of strategic expansion projects across both the College and the Trust. These developments are not adjusting events but are disclosed to provide information relevant to the understanding of the financial statements.

College Projects

• The Sutton Life Centre and Community Hub, Sutton : The centre opened in November 2025. This is expected to provide 70 pupil placements and a community hub for Sutton residents.

• Cherry Gardens, Southwark : A new interim site has been secured to accommodate 21 learners from October 2025.

24 Comparative information

Analysis of income and expenditure account for the year ended 31 July 2024 between restricted and unrestricted funds:

	Unrestricted funds £’000 5 18,696 233 174 19,108 18,847 18,847 261 1,304 1,565 6,457 8,022	Restricted funds £’000 - 226 - - 226 243 243 (17) - (17) 21 4	2024 Total funds £’000 5 18,922 233 174 19,334 19,090 19,090 244 1,304 1,548 6,478 8,026
Income from: Donations and legacies Charitable activities . Provision of education Other trading activities Investments Total income Expenditure on: Charitable activities . Provision of education Total expenditure Net expenditure Other recognised gains and losses Actuarial gains on defined benefit pension scheme Net movement in funds Reconciliation of funds Fund balances brought forward at 1 August 2023 Fund balances carried forward at 31 July2024

Orchard Hill College 46