2022-07-31-accounts - The Co-Operative College

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The Co-operative College

Annual Report and Accounts

Year Ended 31 July 2022

Trustees Report

The Trustees present their annual report and financial statements of the charity for the year ended 31 July 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011, the Charities Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS 102.

The College began the financial year in August 2021 with its new staffing structure and organisational design fully in place. This followed a period of over two years of significant and ongoing change, including the work led by the Scenario Planning / Transition Working Groups to “right-size” its cost base and equip it for an external context, and indeed a world, changed forever by a number of factors including the consequences of the COVID-19 pandemic. It ended the year, following a programme of extensive development and stakeholder consultation, with the launch of a new strategy identifying its direction, purpose and key areas of focus for the three years to July 2025.

The work of the College is varied and rarely static, but this has nevertheless been another year of great change. Whilst this report can provide some insight into the last 12 to 18 months and our plans for the future, we would welcome all visitors to our website (www.co-op.ac.uk), where a more detailed commentary on our strategy and its implications is available, and would also recommend following our channels on social media to gain a better understanding of our work and of how they may become involved in it.

Our work is only possible due to the continued hard work of our colleagues, the dedication and commitment of our Board of Trustees, and the support of our Members and partner organisations in the UK and around the world, so our thanks go to them all.

Objects and activities

The College’s charitable objective is “ to promote the education of the public, in particular, but not exclusively, by the provision and conduct of a College for the education of people in a manner consistent with the values and principles of the co-operative movement.”

The strategy, which the College published on 30 June 2022 to coincide with its AGM after a lengthy period of stakeholder consultation, identified the key aim of becoming “the distinctive learning partner of choice for educators, co-operators like-minded individuals and organisations” , in order to:

Support co-operators and co-operatives to develop
Inspire the co-operators of the future
Tackle inequalities in communities by working together

Importantly, the strategy breaks down the College’s work into four key strategic areas :

Co-operative learning
Thought leadership
International Co-operative development
Youth empowerment

It also identifies the three curriculum areas into which the College’s broad and diverse range of learning programmes can be classified:

Co-operative leadership
Co-operative values and behaviours
Concern for community

Trustees Report

This new strategy for the College recognises the impact of many changes to both the internal and external context since 2019. Externally, the COVID-19 pandemic will have a lasting impact on the way in which individuals and organisations access learning, training and development, with blended programmes likely to become increasingly popular. An already challenging economic outlook, made even tougher by the invasion of Ukraine in early 2022 and a global spike in inflation, continues to suggest that income may be slow to return to pre-pandemic levels, and ongoing work to reduce costs and improve efficiency continues to be a high priority. The anticipated increase in international activity, as travel restrictions have been lifted and pent-up demand from overseas partners released, is providing an increasing number of exciting opportunities for new activity and income. The strategy also provides an indication of the importance to the smaller, leaner College of working in partnerships – with co-operatives, academic institutions and other value-based organisations.

One consequence of the work to develop a new strategy was the decision to make a small, but significant, change to the internal structure of the College by moving away from the use of a dedicated Projects Team. This change saw the College’s youth work in the UK subsumed into the work of the Learning Team, under the leadership of Ali Longden as Director of Learning and Teaching, in a recognition of the move towards the use of a more consistent co-operative learning approach across all our programmes. The responsibility for international projects became part of the remit of the Head of International Partnerships, Sarah Alldred. The resulting structure provides opportunities for delivering outcomes more efficiently, as well as providing greater alignment with the key areas of the new strategy.

The decision was also taken to add the additional post of an Adult Education Tutor, in order to bring more of our learning delivery “in-house”. The purpose of this change was twofold: to enable further improvements in the quality and consistency of learning and teaching, and to support further efforts in achieving greater cost efficiency. Stacey Salt joined the team in June 2022 and is already involved in delivering programmes across the full breadth of the College’s work, including in UK youth projects.

The majority of the College’s 13 members of staff now form the Learning Team . The Learning Team is the hub for the design, delivery and quality assurance of a wide range of programmes to meet the needs of co-operatives, co-operators, learners and beneficiaries.

The Business Development Team ’s responsibilities include the key operational areas of finance, marketing, governance, health and safety, estates and human resources (with the continued support of an external HR consultant). Alongside its core function of developing client relationships and new business opportunities, the team also has oversight of Member engagement and the College’s Membership.

The Head of International Partnerships develops and maintains relationships with overseas partners and clients across the full range of activity of the College, plays a key role in the work of the International Co-operative Working Group (ICWG) and leads the College’s international co-operative development work.

Achievements and Performance

With a permanent structure finally in place, but many aspects of working life still very “new”, including the 4-day week and the shift to remote working, the College’s key challenge during the 2021-22 year was to balance two priorities: developing a new strategy which would deliver relevant programmes of a high quality using a distinctive learning approach, whilst concurrently seeking and agreeing new business opportunities in order to meet immediate income targets. Although the new College strategy was not formally published and adopted until the end of the year, the key

Trustees Report

strategic areas were identified and used internally much earlier and provide the best structure to summarise the College’s work in this period.

Co-operative learning

The College’s ongoing work to settle on a precise definition of “co-operative learning” as a distinctive learning approach is likely to continue for some time. There is, however, already broad agreement that it typically involves a facilitated, co-constructed and collaborative style of delivery. The use of such an approach is now a prerequisite for the development of all new programmes, regardless of whether delivery is remote, face-to-face or hybrid. Learner feedback continues to be extremely positive across a wide range of our activity, and while the feedback is used to drive continuous improvement, it also provides ongoing validation of the College’s drive to improve both the quality and consistency of its provision.

The provision of learning programmes for partners in the UK has continued to develop, and has included work with partners including three of the major retail societies (Central England, Tamworth and East of England) as well as the Co-operative Group’s National Members’ Council, the Co-operative Councils’ Innovation Network (CCIN) and the Prospect / Bectu trade union. Learning provision for these clients has ranged from the development of online, self-paced learning to delivering bespoke, face-to-face activities.

Partnerships with Higher Education providers are set to form an increasingly significant proportion of the College’s provision of learning programmes, allowing our learners to access a wider network and to follow routes allowing formal accreditation of their learning. In January 2022, we embarked upon a prestigious partnership with Imperial College London. The first joint initiative delivered under the partnership is an online programme of adult and community learning entitled Spanner in the Works? Co-operation then, now and into the future . Three cohorts of learners have now successfully completed the programme.

The College’s second major new partnership in Higher Education is with the University of Dundee. Following a lengthy period of initial discussions between the two institutions, we announced at our 2022 AGM the intention for the College and the University’s Business School to work together in the development of Masters-level, credit bearing, modules of learning focussing on co-operatives and the co-operative movement. It is hoped that teaching on these programmes will begin in 2024.

The continuing relaxation of the travel restrictions imposed during the COVID-19 pandemic has enabled the College to resume its provision of study visits for international clients, and this is emerging as a key area of current and future business. Working with partner organisations, including Co-ops UK, the Co-operative Group, the Co-operative Heritage Trust and ICMIF, to provide specialist input, and using our distinctive approach to ensure that visits retail a genuine focus on learning, we have been delighted to receive almost exclusively positive learner feedback from visitors including a group of dentists and allied professionals from health co-ops in Brazil and a party of 53 members of staff and representatives of member organisations joining us from our established partner CLIMBS, a life assurance co-op based in the Philippines.

In addition to hosting study visits, our international work also includes online provision. In the summer of 2022 we were successful in winning the contract to develop a programme of selfpaced, digital learning resources for the global ambassadors of the International Raffeisen union.

Trustees Report

Thought leadership

With a smaller, leaner staff cohort, the College currently has a reduced capacity to lead on pieces of academic research in the way that it has done in the past. We do, however, still place a high priority on our role in thought leadership, uniquely positioned as we are within the global cooperative movement and academia to provide spaces and networks for the dissemination, discussion and further development of current and relevant thinking. In October 2021 we hosted the first of a new series of webinars at which the authors of a major piece of research by the International Co-operative Alliance (ICA) into the role of co-operatives in the green economy joined us to discuss their findings and take questions from our Members and guests.

College staff have also been active in engaging in external thought leadership activity. Our CEO, Neil Calvert, gave the inaugural address at the maiden convocation of the Lagos State Co-operative College and spoke at conferences hosted by the ICA and UNESCO, at which he was also joined by Sarah Alldred. Amanda Benson, our Curriculum Development Manager, and Stacey Salt, our Adult Education Tutor, were also invited to speak to Masters students at the Universities of Cambridge and Derby respectively.

International co-operative development

The major focus of the College’s international project work during the year was the launch of a major co-operative development initiative in Malawi, funded by Central Co-op. "Our Malawi Project” is a UK-led retail strategy which ensures a deeper understanding of the impact of co-operative and fair trade over aid. The intention is to deliver a project over at least three years which is sustainable in the longer term, to take Malawian communities out of abject poverty and create engagement opportunities with CEC members and communities. Building on our prior experience of working in co-operative development in the country, the College is project managing responsibilities for this ground-breaking piece of work.

The second of our thought leadership webinars focussed on international co-operative development (ICD), and saw delegates from around the world joining us to debate with a highly experienced panel of global leaders in the field. Our role in the International Co-operative Working Group (ICWG) has provided a forum for networking and co-ordination of international links, partnerships and initiatives across the UK co-operative movement, and the work of Sarah Alldred to co-ordinate the Group’s work in ICD and disaster relief is a key element of our partnership with Co-ops UK.

Youth empowerment

The core of our youth empowerment work during the year was the delivery to multiple cohorts across the UK of two established projects. Our Co-operative (ad)Venture project works with young people with learning difficulties, disabilities and autism, helping them to reach their full potential in a world that puts so many barriers in their way. The project is designed so that the young people all have an equal voice, gain the confidence and skills to take into their future education, training and employment, and build their own co-operative and social action events in their local community. The second project, Youth Co-operative Action (YCA), aims to inspire young people to use co-operative values and principles to make a change where they live, and is typically targeted at disadvantaged groups and/or members of deprived communities.

Each project is either centred in a school or college, or anchored by an existing community organisation, facilitated either by members of College staff or a local delivery partner. Our UK projects have been enabled by grant funding and financial support from partners including the Cooperative Foundation, the Big Lottery #iwill Fund, Potterspury Lodge Trust, Central Co-op and the

Trustees Report

Co-operative Group, enabling more than 150 young people to develop transferable skills, improve their life chances and engage in real, meaningful social action. College staff were also involved in the delivery of the Co-ops UK Youth summit in Manchester.

Our youth empowerment work, however, is not restricted to the UK. In the summer of 2022 the College began work leading a project funded by DGRV, the national apex organisation of the co-operative sector in Germany, to work with young co-operators on three continents. In collaboration with in-country partners, we are co-constructing a programme of learning resources to enable groups of young people, in Colombia, Eswatini and Laos, who already have some affiliation with co-operatives, to engage in learning that will deepen their understanding of the principles, values and history of the worldwide movement.

Future Plans

Achieving lasting financial sustainability continues to be the highest priority for the College. Work to improve quality and reputation will retain crucial importance, as we look to build on recent successes to increase income further while continuing to seek greater efficiencies across all aspects of our activity.

With a new strategy in place, the College ended the year well-placed to embark upon a number of major initiatives across the four key strategic areas. The most significant, in terms of the deployment of resources and the potential for increased activity and income, are:

Our proposed Higher Education partnership with the University of Dundee, providing a range of options for learners from micro-accreditation to degree awards, accessible via a range of online and hybrid routes.
The further development of a flexible study tours programme, suitable for visiting groups of varying sizes from both co-ops and learning institutions, and potentially connecting with our Higher Education partnerships.
An expansion in the variety of UK co-operative youth programmes that we can deliver, in order to appeal to a broader range of potential funders.
Greater engagement with the UK co-operative movement, to drive the coconstruction of learning programmes relevant to their staff and members.

Successful delivery of our 2022-25 strategy will also depend, however, on our ability to balance a key focus on these initiatives with a number of additional streams of work which may have more of an indirect impact on the success of the College but nevertheless remain just as important to our purpose, aims and values, including:

The development of a Co-op College network, to extend our thought leadership activity into a dedicated programme linking co-operative educations around the world.
Increased engagement with our Members, to ensure that the College continues to meet their needs and access the skills and expertise that they can bring.
A continuing commitment to staff development, to provide opportunities for all of our people and to ensure that we continue to be seen as an employer of choice.

Trustees Report

There remains a common sense of purpose and determination amongst the College’s staff and Trustees, at a time when there is such a need for the principles and values of co-operative education to be understood and applied in seeking to build a better world.

Jon Nott, On behalf of the Board of Trustees

Neil Calvert, Chief Executive & Principal

Finance Report

Overview of Financial Results

In previous years, we had seen the loss or significant reduction in many of the most important income streams to the College and as a result, the initial financial focus had to be on a significant reduction in costs. The restructure, switch to a 4 day week and the move to a smaller office base have generated extremely large savings during 2021-22. Expenditure has now fallen from £1.31million to £676k in the past two years.

The year to July 2022 does however reflect that the new College team were only bedding in at the start of the financial year and work to build back the income streams of the College was unable to show financial benefits within this year.

A new strategy launched in June 2022 clarified four areas of focus for the College going forward to 2025, three of which are immediately linked to income generation, with a fourth focusing on reputational enhancement designed to support financial growth over the longer term.

Importantly, the strategy’s three income-generating streams (co-operative learning, international co-operative development and youth empowerment) require us to seek diversified income sources including philanthropic, which will improve our resilience in the long term and reduce our reliance on core funding sourced solely from within the co-operative movement, which has not been as dependable over the past two years.

Despite the shortfalls in income during this year of transition, the reductions in costs enabled us to vastly reduce operational losses, which fell by approx. £300k from the level of two years ago, before the restructuring process began. The operational deficit recorded for the year was within £30k of the outturn projected in the budget agreed by Trustees in November 2021 (£373,163 vs £344,914).

Unfortunately, the war in Ukraine saw a significant impact on investments across the world and the value of our investments held in Royal London Sustainable Diversified Funds fell by £168k, which increased our overall deficit to the £541k reported.

Performance

Total income for the year to July 2022 was £302,989, made up of £204,807 income from Charitable Activities, £73,261 from Donations and legacies, and £24,921 from Investments.

Learning income fell by 15% to £98,697 in the year. However, income from course and programme fees was largely maintained with less than a 5% decrease compared to the previous year. This reflects a number of workshops and bespoke training programmes delivered to a wide range of clients and partner organisations across the UK and overseas. The market has proved particularly buoyant and receptive in regard to international study visits which the College is uniquely placed to deliver. These capitalise on our heritage and strong reputation, but offer something distinctive through our new, distinctive learning approach, which is gaining traction across the co-operative sector. Our partnership and international role at Co-operatives UK is particularly beneficial in strengthening this area. We are focused on refining these tours as a core offer for the year ahead.

Partnerships with Higher Education providers have been established over the last year and while these take a long time to establish and deliver an income, due to the regulatory environment, offering accredited courses in the next year promises to provide a sustainable and significant revenue stream from mid 2023-24 onwards.

Finance Report

Projects income continued to suffer with income falling by 27% to £88,087. A number of our International and UK Projects ended over the past 12 months, which has contributed to the reduction in income. During the year, our major piece of International Project work focused around the Central England Fairtrade and International Development Project in Malawi, in which the College has secured funding for 3 years from Central England Co-operative Society to manage the ‘On the Ground Development’ section of the project.

In terms of our UK Projects, during the year we secured funding from Co-operative Academies Trust to deliver a pilot of the Co-operative (ad)Venture project in Bradford. Further funding was also secured from the Co-op Foundation for the continuation of the Youth Co-operative Action project until July 2023, which funds the College to deliver cohorts in London, Greater Manchester and Lowestoft.

To respond to the fall in income for these projects we recognise an opportunity to capitalise on the favourable philanthropic environment for this type of work, and will look to recruit or contract support for this work in the next year. We are seeking opportunities to bid for larger scale pieces of work around youth empowerment, either individually or as part of a consortium.

Membership income has remained stable with only a 3% fall in income to £10,509 - we would like to take this opportunity to thank all of our individual and organisational members for continuing to support the work of the College.

Donations and legacies income fell by approx. £107k this year to £73,261. This is due to the 3-year Co-operative (ad)Venture project funded by the Potterspury Lodge Trust coming to an end during the year. In addition to this, income from donations in the previous year had also reflected the final tranche of core funding from the Co-op Group and financial support received from the HMRC Coronavirus Job Retention Scheme.

Overall expenditure in the year to July 2022 was £676,152, made up of £653,932 expenditure on Charitable Activities and £22,220 expenditure on Raising Funds. This reflects a reduction in costs of approx. £528k compared to the previous year.

Savings made on staffing costs, which began in 2021 following the restructure, have continued with a further saving of £217k during the year. In addition to this, our infrastructure costs have reduced by over £40k, of which approx. £28k relates to savings made in moving to a smaller office base.

Balance Sheet

The College balance sheet shows net assets of £1,889,944. Virtually all available funds are invested in Sustainable Diversified Funds with Royal London. These investments are liquid allowing us to withdraw funds, if necessary, within a few days, thereby enabling us to protect any funds held for specific purposes should there be a significant devaluation in investment value. To 31 July 2022, we have continued to add funds to specific project monies held through our investments.

Investments

Investment Policy

The Board of Trustees have agreed that funds be invested in order that the interest and dividends arising be used in the furtherance of the object of the charity and to achieve capital growth of funds in the medium to long term so that the income generating potential of the fund is not compromised.

Finance Report

It is recognised that the College does not have expertise in making longer–term investment decisions and as such have appointed investment advisers to manage the College’s portfolio.

Investment Performance

Investments have been held in Royal London Asset Management’s Sustainable Diversified Fund for a number of years. This is a mixed portfolio, which falls into the 20% to 60% level of shares category. Typically, the mix has been almost 60% equity with the remainder earning fixed rates of income.

Whilst the year to July 2022 has reflected investment losses, the general performance of the Royal London Sustainable Diversified Fund that we have invested in has been exceptional with gains achieved in every year prior to 2022. Therefore, we believe that long term this remains an appropriate investment.

Reserves

Reserves Policy

The Trustees have determined that the minimum level of unrestricted reserves to be held should be equal to four months operating expenditure and costs of delivery, allowing the College to cover such costs in the most extreme absence of income. The minimum level will be calculated each year after approval of the annual budget and review of expected year-end reserves.

On the basis outlined above, the minimum level of unrestricted reserves at 31 July 2022 and to be carried through the 2022-23 financial year is £235,000.

The level of unrestricted reserves held at the year-end is £235,000 in line with the College’s reserves policy. Of these unrestricted funds, £5,282 of funds held would only be realised by the sale of fixed assets, thereby leaving £229,718 as free reserves.

Total reserves were £1,889,944 with endowment funds making up £636,817 and restricted funds £1,018,127. Movements in funds and more detail on the purpose of specific funds can be found in note 22 to the accounts.

Annual Reserves Management

The methodology for managing reserves throughout the year seeks to recognise two factors. Firstly, the uneven pattern of income and expenditure throughout the year and secondly, the recognition of investment gains/losses only on an annual basis.

Considering these factors, a quarterly transfer will be made from the Co-operative College Fund to unrestricted reserves, when required, to maintain unrestricted reserves at the minimum level throughout the year. At year-end, upon recognition of investment gains/losses for the year, a final transfer to/from the Co-operative College Fund will be agreed by the board of Trustees.

The Audit and Risk Committee and Trustees shall monitor any such transfers through the quarterly presentation of management accounts.

Annual Review of Reserves Policy and Long-Term Plans

The Reserves Policy will be reviewed on an annual basis and an appropriate level set for the year ahead.

Finance Report

The restructuring process undertaken in 2020-21 was necessary to provide a cost base from which the College could achieve a break-even position. The Trustees intention is that the level of Unrestricted Reserves be maintained without continued drawing upon the capital of the Co-operative College Fund and that only the income and gains should be drawn upon for working capital purposes in future years.

Going Concern

The College has £235k of unrestricted reserves and approx. £636k of expendable endowment. The latter is invested for income and long-term gains but accessible within 3 days should it be required. The Trustees wish to preserve the expendable endowment for the long term but the fund will be used as necessary to continue supporting a period of building income back following the restructure. Taking these factors into account, the Trustees consider that there are no material uncertainties about the College's ability to continue as a going concern.

Structure, Governance and Management

Governance

Governance of the Co-operative College is the responsibility of the Trustees who act in an unpaid capacity.

Trustees meet at least four times a year as a collective with further ad hoc meetings and sub committees meeting when required. The Audit and Risk Committee (ARC) was reformed towards the end of the year following a handover from the Transition Working Group (formerly the Scenario Planning Working Group) which had continued in its role from 2020-21. The Audit and Risk Committee will meet on a quarterly basis going forward. All meetings are attended by the Chief Executive & Principal, relevant members of the Leadership Team and where appropriate other colleagues.

The Chief Executive & Principal provides first line leadership. This key role provides clear leadership in policy making, strategic planning and executive management to deliver the College’s objectives and ambitions. The Chief Executive & Principal is supported by a wider Leadership Team who are accountable for specific areas of the College’s work.

During the year to July 2022, the Executive Team comprised:

Name	Role	Length of Service
Neil Calvert	Chief Executive & Principal	1 year

Remuneration for the Executive staff team is determined via the College’s Reward & Recognition policy whereby all colleagues’ roles are evaluated against specific role and salary bands. The role of the Chief Executive & Principal is external to these salary bands and is determined via the College’s Remuneration and Employment Committee with reference to market conditions and specific skill sets.

Risk Management

The College’s Trustees and management have a clear responsibility for:

Identifying risks facing the business.
Putting in place actions and procedures to mitigate and control risks.
Monitoring risks

All risks are assessed against a framework of impact and likelihood. Each risk is attributed to a member of the College leadership team to monitor. The risk is detailed, controls identified, mitigating factors considered, any further actions to be taken identified together with a consideration of the level to which we are able to reduce the risk. Re-assessment against the framework is undertaken for each risk and the risk register updated accordingly.

The Audit and Committee meets every quarter and these meetings are a channel for risks to be reviewed, and for updates and recommendations to be made to the full Board of Trustees.

Internal Controls

The Trustees are ultimately responsible for the College’s system of internal control and reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve the Charity’s business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

Structure, Governance and Management

Key controls in place include:

Clearly defined lines of responsibility and delegation
Clear approval processes for transactions including two signatories for all outgoings
Budget setting and Trustee approval
Regular review of performance against budget by Trustees
Quarterly meetings of the Audit and Risk Committee to assist the Leadership Team in managing the operations and risks of the College.

Trustee Method of Appointment

The maximum number of Board members is 12, made up from the following categories:

Up to seven Board members can be elected by and from the membership.
Up to two Board members can be appointed by co-option by the Board of Governors
for their particular skills and/or experience.
One Board member who is a student/learner at the College can be nominated and elected by the students/learners.
One Board member who is a member of the College staff can be nominated and elected by staff of the College.
Up to one Board member can be appointed by Co-operatives UK

Five new Trustees were appointed during the year to 31 July 2022.

Board of Trustees

The Trustees for the year to 31 July 2022 and up to the point of signing the annual report and accounts were as follows:

Name	Category	Appointed	Further Details
Jon Nott (Chair)	Organisational Member	12 October 2017	Co-optee until 1 May 2018. Organisational member from that date. Reappointed 7 October 2021
Hazel Johnson	Individual Member	5 April 2017	Reappointed 21 June 2019 Retired 30 June 2022
John Boyle	Individual Member	21 April 2016	Reappointed 19 June 2020
Pamela Maxwell	Learner Member	5 April 2017	Reappointed 19 June 2020
Emma Robinson	Individual Member	1 May 2018	Resigned 7 October 2021
Daniel Cox	Staff Member	21 June 2019
Vivian Woodell	Co-operatives UK	21 June 2019	Retired 12 October 2022
Clive Booker	Organisational Member	19 June 2020	Resigned 8 November 2022
Ruth Hall	Individual Member	7 October 2021
Simon Thomson	Co-opted Member	13 January 2022	Reappointed 30 August 2022
			13

Structure, Governance and Management

Gregory Roberts	Individual Member	13 January 2022	Co-optee until 30 June 2022. Individual member from that date
Rose Harvey (Vice Chair)	Co-opted Member	13 January 2022	Reappointed 20 July 2022
Christopher Jardine	Individual Member	13 January 2022	Co-optee until 30 June 2022. Individual member from that date
Jenny deVilliers	Co-operatives UK	3November 2022

Audit and Risk Committee / Transition Working Group

The membership of the Audit and Risk Committee (ARC) is made up as follows:

Committee Chair appointed by the Trustees.
Two Trustee Board members
One member co-opted for their skills and experience.

For the year to 31 July 2022 and up to the point of signing the annual report and accounts the members of the Audit and Risk Committee were as follows:

Name	Appointed- Retired	Category
Vivian Woodell (Chair until 6 October 2022)	18 November 2021 – 6 October 2022	Board Member
Hazel Johnson	18 November 2021–30 June 2022	Board Member
Ruth Hall	01 April 2022-	Board Member
James Day	01 April 2022 -	Co-optee (non–Trustee member)
Christopher Jardine (Chair)	8 September 2022 -	Board Member

The Transition Working Group (formerly the Scenario Planning Working Group) continued in its role from 2020-21 to discharge the responsibilities of the Audit and Risk Committee. A handover from the Transition Working Group to the ARC was commenced towards the end of 2021-22, as it was reinstated to establish roles and aims, and the Committee returned to regular meetings in the autumn of 2022. The ARC will meet on a quarterly basis going forward.

Status and Charity Number

The Co-operative College was founded in 1919 and is registered with the Charity Commission England and Wales as a Charitable Incorporated Organisation (registration date 6 November 2014): Registered Charity number 1159105.

The Co-operative College is also registered with the Scottish Charity Regulator (OSCR); Registered Charity number: SCO48848.

Structure, Governance and Management

Governing Document

The Charity is administered in accordance with a constitution for a Charitable Incorporated Organisation, registered with the Charity Commission on 6 November 2014 and amended on 16 December 2015 and 28 June 2016.

The College is a designated further education institution under the Education Acts. The Education Act 2011 allowed greater flexibility for Colleges to put into place their own legal constitution (amending or replacing the former Instrument and Articles of Government previously approved by the Secretary of State for Business Innovation and Skills) provided it meets the minimum requirements of Schedule 4 of the relevant part of The Education Act 2011 applicable to ‘designated’ Colleges.

Public Benefit

In planning and delivering our services and activities the Trustees and management of the College confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to public benefit guidance by the Charity Commission in delivering the activities undertaken by the Charity.

The College’s charitable objective is to promote the education of the public, in particular, but not exclusively, by the provision and conduct of a College for the education of people in a manner consistent with the values and principles of the co-operative movement.

The College’s activities as described in this report are considered to meet the public benefit requirement as specified in the Charities Act 2011.

Legal and Administrative Information

Registered Office

Co-operative College CIO Holyoake House, Hanover Street, Manchester, M60 OAS Website: www.co-op.ac.uk Email: hello@co-op.ac.uk

Registered Charity number England and Wales: 1159105

Registered Charity number Scotland: SCO48848

Principal Advisors

Bankers

Co-operative Bank Balloon Street Manchester M60 4EP

Statutory Auditor Beever and Struthers One Express 1 George Leigh Street Manchester M4 5DL

Investment Managers

Royal London Asset Management 55 Gracechurch Street London EC3V 0RL

Statement of Trustees Responsibilities

Statement of Trustees’ Responsibilities in Respect of the Trustees’ Annual Report and the Financial Statements

Under charity law, the Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period. The Trustees have elected to prepare the financial statements in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

In preparing these financial statements, generally accepted accounting practice entails that the Trustees:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether the recommendations of the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

Approved by the Trustees on 23 March 2023 and signed on their behalf by:

Jon Nott

On behalf of the Board of Trustees

Auditor’s Report

Independent Auditor’s Report to the Trustees of the Co-operative College

Opinion

We have audited the financial statements of the Co-operative College “the charity” for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charity’s affairs as at 31 July 2022 and of its incoming resources and application of resources, including 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 Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005.

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 charity 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

We have nothing to report to you in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Auditor’s Report

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the Trustees’ report is inconsistent in any material respect with the financial statements; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 17, the Trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s Report

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and Section 44(1)(c) Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Obtained an understanding of the nature and sector of the Company along with reviewing the financial performance and reviewing the policies in place such as the revenue recognition for project income
We communicated the laws and regulations with the audit team to ensure that they were alert of any indications which would highlight any non-compliance during the audit
Reviewed copies of the board minutes from throughout the year and any that have taken place after the year end
Matters were also discussed with Finance during the planning process and throughout the audit fieldwork in relation to any cases of fraud or non compliance of laws and regulations which may have taken place during the year
Discussed and obtained an understanding in relation to the process for journals being posted into the finance system
Reviewed a sample of journals posted throughout the year to ensure that management override hadn’t taken place
Discussed the accounting estimates and the calculations behind these such as the depreciation calculation, bad debt provision and project income

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

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

Auditor’s Report

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees 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 charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Beever and Struthers, Statutory Auditor

Beever and Struthers is eligible to act as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

One Express 1 George Leigh Street Manchester M4 5DL

Date: 24/03/2023

Co-operative College Statement of Financial Activities for the Year Ended 31 July 2022

			Year Ended	31 July 2022			Year Ended	31 July 2021
		Unrestricted	Restricted	Endowment	Total Funds	Unrestricted	Restricted	Endowment	Total Funds
		Funds	Funds	Funds	2022	Funds	Funds	Funds	2021
		£	£	£	£	£	£	£	£
Income
Donations and Legacies	2	49,806	23,455	-	73,261	118,688	61,591	-	180,279
Charitable Activities	4	116,145	88,662	-	204,807	144,523	105,513	-	250,036
Investments	5	13,146	11,775	-	24,921	21,265	11,243	-	32,508
Total Income		179,097	123,892	0	302,989	284,476	178,347	0	462,823
Expenditure
Raising Funds	9	10,457	7,148	4,615	22,220	26,096	7,245	7,177	40,518
Charitable Activities	8	551,951	101,981	-	653,932	666,458	268,695	-	935,153
Restructuring Costs	13	-	-	-	-	228,604	-	-	228,604
Total Expenditure		562,408	109,129	4,615	676,152	921,158	275,940	7,177	1,204,275
Gains/(Losses) on Investments	16	(19,077)	(90,583)	(58,488)	(168,148)	34,118	139,606	138,287	312,011
Net Income/(Expenditure)		(402,388)	(75,820)	(63,103)	(541,311)	(602,564)	42,013	131,110	(429,441)
TransfersBetween Funds	22	402,388	-	(402,388)	-	555,564	-	(555,564)	-
Net Movement in Funds	22	-	(75,820)	(465,491)	(541,311)	(47,000)	42,013	(424,454)	(429,441)
Reconciliation in Funds
Funds Brought Forward		235,000	1,093,947	1,102,308	2,431,255	282,000	1,051,934	1,526,762	2,860,696
Total Funds Carried Forward		235,000	1,018,127	636,817	1,889,944	235,000	1,093,947	1,102,308	2,431,255

Co-operative College Balance Sheet as at 31 July 2022

	Notes	Total Funds	Total Funds
		31 July 2022	31 July 2021
		£	£
Fixed Assets
Tangible Assets	15	5,282	10,658
Investments	16	1,683,045	2,071,963
Total Fixed Assets		1,688,327	2,082,621
Current Assets
Stock	18	1,941	2,468
Debtors and Prepayments	17	46,546	74,408
Investments	16	215,000	397,500
CashatBankandin Hand	24	36,665	48,723
Total Current Assets		300,152	523,099
Liabilities
Creditors: amounts falling due within one year	19	98,535	174,465
Net Current Assets		201,617	348,634

Net Assets		1,889,944	2,431,255
The Funds of the Charity
Endowment Funds	22	636,817	1,102,308
Restricted Funds	22	1,018,127	1,093,947
Unrestricted Funds	22	235,000	235,000
Total Charitable Funds		1,889,944	2,431,255

The financial statements on pages 22 to 42 were approved and authorised for issue by the Board of Trustees on 23 March 2023 and approved on its behalf by

Jon Nott Chair of the Board of Trustees

Co-operative College Cash Flow Statement for the Year Ended 31 July 2022

	Notes	Year Ended 31	Year Ended 31
		July 2022	July 2021
		£	£
Cash Flows from Operating Activities:
Net Cash Used inOperating Activities	23	(426,979)	(677,397)
Cash Flows from Investing Activities:
Dividends and Interest from Investing		24,921	32,508
Purchasing of Plant and Equipment		-	(4,803)
Proceeds from Sale of Plant and Equipment		-	350
Proceeds from Sale of Investment		390,000	550,000
Net Cash Provided by Investing Activities		414,921	578,055
Change in Cash and Cash Equivalents in the		(12,058)	(99,342)
Reporting Period
Cash and Cash Equivalents at the Beginning		48,723	148,065
of the Reporting Period
Cash and Cash Equivalents at the End of the		36,665	48,723
Reporting Period

Notes to the Financial Statements for the Year Ended 31 July 2022

1 Accounting Policies

a

Basis of preparation and assessment of going concern

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention, modified for the revaluation of the investment portfolio which is held at market rate, in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Charities SORP FRS 102 and the Charities Act 2011.

All values within the annual report and accounts are reported in £ sterling.

b Funds structure

The College has three types of fund. Unrestricted funds which can be spent in any manner appropriate to the furtherance of the general objectives of the charity. Restricted funds are those where the funder has provided for the funds to be spent in furtherance of a specified charitable purpose and often relate to funding for a particular project. The College also has an expendable endowment fund the Co-operative College Fund, resulting from the sale of property originally purchased with funds gifted by the co-operative movement. The funds are invested in order that the interest and gains arising can be used to support the College in the furtherance of co-operative education. The Trustees reserve the right to release funds from the endowment for strategic purposes. Details of each fund and the transactions taking place in the year can be found in note 22 to the accounts.

c Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

i) Income recognition

All income is recognised when there is an entitlement to the funds, the receipt is probable and the amount can be measured reliably. Grants are recognised when received or in accordance with the conditions set by the funding provider. Project income is recognised on actual work completed to the end of the period. Donations are recognised when the College receives the funds.

The measurement of actual work completed on a project takes into account a number of factors. Where outputs directly related to income can be identified as complete the income is recognised in full. Otherwise, timesheets of staff and invoices of associates are used to determine the progress of each identifiable strand of work. Where a particular strand of work within the project is deemed to progress evenly between two points of time, income is allocated evenly over that period of time. All allocations of income to the accounting period are confirmed to available project reporting and agreed with project management.

Where entitlement to funds is not yet due or due in full because conditions for its entitlement are not met then such income is deferred to the extent that entitlement has not yet been earned. Measurement of that extent is in accordance with the most appropriate basis as detailed above.

Notes to the Financial Statements for the Year Ended 31 July 2022

ii) Expenditure

Expenditure is recognised on an accruals basis and is spent in line with the appropriate income, or in the case of core costs (staffing, rent etc.) in line with invoices and contracts of employment. Charitable expenditure enables the Co-operative College to meet its charitable objective.

Project expenditure is similarly recognised on an accruals basis. Where invoices are not available to directly attribute expenditure to the accounting period, expenditure is accrued upon the same basis as income recognition, as follows: Where outputs directly related to specific expenditure can be identified as complete the expenditure is recognised in full. Otherwise timesheets of staff and associate invoices determine the progress of work and recognition of expense. Finally, where a particular strand of work is deemed to progress evenly between two points in time, expenditure is allocated evenly over that period of time.

Governance and support costs are allocated to each charitable activity stream in proportion to its level of direct expenditure.

iii) Tangible fixed assets

Tangible fixed assets are stated at cost less the accumulated depreciation. Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed and reviewed for each asset and depreciated accordingly, on a straight line basis, taking into account the following minimum rates:

Plant, fixtures and fittings 10% - 33% per annum Information technology equipment 20% - 50% per annum

iv) Intangible fixed assets

Intangible fixed assets are stated at cost less the accumulated amortisation. Amortisation is calculated in equal monthly amounts based on cost. Amortisation takes place over the estimated useful life of the asset, taking into account the following minimum rates:

d

Technology investment

Stock

25% per annum

Stocks are stated at the lower of cost and net realisable value being the estimated selling price less costs to sell. Cost is based on cost of purchase on a first in, first out basis. Review at the end of each reporting period determines the likely resale value of each stock item and any write down needed should this be lower than the cost of the item.

e

Debtors

Trade debtors are recorded at transaction price. Review of trade debtors takes place throughout the year and at the reporting date to determine any provision required for doubtful debts. Project debtors reflect the value of work performed less the funds received at year end. Value of work performed is based on actual expenditure incurred in performing the work except where the funding budget states alternative measurement. These alternatives may include fee rates for staff time, or round figure rates for travel and subsistence.

f

Creditors

Trade creditors are recorded at transaction price. Project creditors reflect the funds received by year end less the value of work performed by that date. Value of work performed is based on actual expenditure incurred in performing the work except where the funding budget states alternative measurement. These alternatives may include fee rates for staff time, or round figure rates for travel and subsistence.

Notes to the Financial Statements for the Year Ended 31 July 2022

g Restructuring costs

Restructuring costs contain two elements:

i) Redundancy pay

With the proviso that no redundant employee is to receive less than 2 weeks' pay, and no less than 4 weeks pay for 2 years services, the amount of entitlement will be the number of weeks' pay determined by the prescribed scale, as detailed in the Employment Rights Act 1996, increased by 75% and rounded up to the nearest halfweek.

The prescribed scale is calculated in the following manner:

For each year of employment from age 15 and over but under 22 – half a week's pay.
For each year of employment from age 22 and over but under 41 – one week's pay.
For each year of employment from age 41 and over – one and a half weeks' pay.

ii) Payment in lieu of notice

Should the redundant employee not be required to work their notice period, they shall be entitled to payment in lieu of notice based on the following notice periods: 1. Less than 4 years' service, notice period of 4 weeks

More than 4 years' service, notice period of 13 weeks

Restructuring costs are recognised on an accruals basis, attributing the expense to the period in which the restructuring took place

h Financial instruments

Trade debtors and accrued income

Trade debtors and accrued income are recognised at original value. Provision is made for impairment where there is objective evidence that the College will not be able to collect all amounts.

Cash at bank and in hand

Cash at bank and in hand represents those balances held for working capital purposes and available upon demand. These are recognised at carrying value.

Trade creditors and accruals

Trade creditors and accruals are recognised at original value and subsequently measured at amortised cost unless the maturity date is less than twelve months.

Investments

Investments are recognised at fair value at each reporting date. This is taken to be the publically listed market value of the fund.

i

Investments

Investment income is recognised on an accruals basis. Investments are managed by Royal London Asset Management and are invested in a Sustainable Diversified Fund. Investments are held for income and capital growth in the long term, but in accessible funds, which are liquid enough to meet the needs of any programme, project or fund. Valuation is taken as the publically listed market value at each reporting date. To the extent that investments are expected to be utilised in the next 12 months for operational purposes they are reflected as current assets. To the extent that the funds are expected to be held for a period of over 12 months from balance sheet date they are reflected as fixed assets.

Notes to the Financial Statements for the Year Ended 31 July 2022

Allocation of support and governance costs

Support costs are those functions that assist the work of the College but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the College's programmes and activities. These costs have been allocated to expenditure on charitable activities apportioned as set out in note 7.

k

Pension scheme

The Co-operative College offers an auto enrolment compliant group personal pension scheme which is administered and managed by The Royal London Mutual Insurance Society Limited. Up to 30 April 2021, new employees were enrolled at an employee contribution rate of 4% with The Co-operative College paying 8%. After two years' employment employees could opt to increase their contribution to 6%, with the employer contribution increasing to 12%. From 1 May 2021 all employees are able to enrol at one of two levels of contribution either 4% (both employee and employer) or 6% (employee and employer). Contributions to the scheme are recognised in the period to which they relate.

l Tax and VAT

The Co-operative College is a registered charity and as such is potentially exempt from taxation of its income to the extent that it falls within the charity exemptions as detailed in the Corporation Taxes Act 2010. The Co-operative College is VAT registered and charges VAT at the applicable rates according to its outputs. Where expenses can be directly attributed to a specific income stream, the VAT treatment mirrors that of the income. Where expenses cannot be directly attributed, the irrecoverable amount of VAT is calculated on the basis of staff allocation between different income streams.

2 Income from Donations and Legacies

Donations Core Funding	2022 2021 £ £ 27,470 118,112 45,791 62,167
	73,261 180,279

Income from donations and legacies above includes £23,455 relating to restricted purposes (2021: £61,591)

Notes to the Financial Statements for the Year Ended 31 July 2022

3 Grants

In 2021/22 the College received the following grants and funding:

						2022	2021
						£	£
	Co-op Foundation/Big Lottery Fund #iWill Fund:
	Youth Co-operative Action Phase Two					-	23,063
	Youth Co-operative Action Continuation Project					14,316
	HMRC:
	Coronavirus Job Retention Scheme					-	44,520
	CAST - Catalyst and the National Lottery Community Fund COVID-19 Response:
	Discovery Programme					-	5,000
	Development Programme					-	6,711
	Momentum Programme					-	16,625
	Central England Co-operative Society:
	International Co-operative Development Project Malawi - Development Phase					19,800
	International Co-operative Development Project Malawi - ‘On the Ground Development’					31,200
	Youth Co-operative Action Project Lowestoft					18,200
	Co-operative Academies Trust:
	Co-operative Adventure Project - Bradford pilot					17,900
						101,416	95,919
	Income from grants above reflects £101,416 for restricted purposes (2021: £51,399)
4	Charitable Income
	2022	Learning &	Schools	Membership	Projects	Central	Total
		Development	Programmes
		£	£	£	£	£	£
	Course and programme fees	97,647	-	-	-	-	97,647
	Projects	1,050	-	-	88,087	-	89,137
	Miscellaneous	-	-	-	-	127	127
	Other (note 6)	-	-	10,509	-	7,387	17,896
		98,697	-	10,509	88,087	7,514	204,807
	Charitable income above includes £88,662 relating to restricted purposes
	2021	Learning &	Schools	Membership	Projects	Central	Total
		Development	Programmes
		£	£	£	£	£	£
	Course and programme fees	102,638	6,250	-	-	-	108,888
	Projects	10,780	-	-	111,205	-	121,985
	Miscellaneous	-	-	-	239	35	274
	Other (note 6)	-	-	10,867	-	8,022	18,889
		113,418	6,250	10,867	111,444	8,057	250,036

Charitable income above includes £105,513 relating to restricted purposes

Notes to the Financial Statements for the Year Ended 31 July 2022

5 Investment income

Investment income
Dividends and interest on investments	2022 2021 £ £
	24,921 32,508

Investment income above includes £11,775 relating to restricted funds (2021: £11,243)

6 Other Charitable Income

Membership Event facilitation	2022 2021 £ £ 10,509 10,867 7,387 8,022
	17,896 18,889

None of the above income related to restricted purposes

7 Allocation of governance and support costs

Cost of Goods Sold
Administration
Central Staffing
Infrastructure
Professional fees
Travel
Governance costs (Below)
Total

2022
2021
Basis of apportionment
Total Allocated
Governance
Other Support
Costs
TotalAllocated
Governance
OtherSupport
Costs
£
£
£
£
£
£
1,290
-
1,290
13,841
-
13,841 Expenditure
17,506
320
17,186
17,331
32
17,299 Expenditure
175,643
-
175,643
285,658
50
285,608 Expenditure
36,491
418
36,073
63,006
395
62,611 Expenditure
25,594
-
25,594
11,646
-
11,646 Expenditure
5,812
-
5,812
779
-
779 Expenditure
14,748
14,748
-
12,236
12,236
- Expenditure
277,084
15,486
261,598
404,497
12,713
391,784*

*Governance and support costs are allocated to each charitable activity stream in proportion to its level of direct expenditure

Governance Costs

overnance Costs
Trustee expenses External auditor Legal fees	2022 2021 £ £ 281 - 12,067 12,236 2,400 -
	14,748 12,236

The auditor's remuneration constituted an audit fee of £12,151 (2021: £12,236). No other services were provided by the auditor.

Notes to the Financial Statements for the Year Ended 31 July 2022

8 Charitable Expenditure

2022 Direct staffing costs Direct costs of delivery Administration Infrastructure and premises Professional fees Travel Miscellaneous Other support costs (see note 7) Governance costs (see note 7)	Learning & Development Schools Programmes Events Projects Total 2022 £ £ £ £ £ 161,925 - - 112,659 274,584 24,295 - - 37,469 61,764 2,313 - - 1,254 3,567 20,549 - - 14,453 35,002 - - - - - 1,343 - - 588 1,931 - - - - - 146,071 - - 115,527 261,598 8,647 - - 6,839 15,486
	365,143 0 0 288,789 653,932

Expenditure on charitable activities was £653,932 (2021: £935,153) of which £551,951 (2021: £666,458) was unrestricted and £101,981 (2021: £268,695) was

restricted. 2021 Direct staffing costs Direct costs of delivery Administration Infrastructure and premises Professional fees Travel Miscellaneous Other support costs (see note 7) Governance costs (see note 7)	Learning & Development Schools Programmes Events Projects Total 2021 £ £ £ £ £ 149,477 - 28,339 156,483 334,299 40,504 2,324 - 88,224 131,052 3,154 - 1,824 5,058 10,036 20,492 - 3,420 21,223 45,135 4,647 - 681 4,490 9,818 - - - 316 316 - - - - - 161,151 1,717 25,297 203,619 391,784 5,229 56 821 6,607 12,713
	384,654 4,097 60,382 486,020 935,153

Notes to the Financial Statements for the Year Ended 31 July 2022

9 Raising Funds

Membership staff costs Administration Infrastructure Miscellaneous Investment management	2022 2021 £ £ 8,458 19,541 692 1,254 - 3,570 (200) (40) 13,270 16,193
	22,220 40,518

10 Employee Costs The College seeks to ensure that all colleagues are fairly rewarded for the work that they undertake. All colleagues are appointed to a role cluster and level that is appropriate to the content of their role. Each role cluster and level has specific salary bands.

The average number of colleagues employed by the College was:

Full time Part time Full time equivalents	2022 2021 - 8.9 13.1 7.2
	13.1 16.1
	10.1 13.9

The costs incurred in respect of these employees were:

Salaries & wages Social security Pension Other	2022 2021 £ £ 393,069 530,274 35,365 51,168 16,669 50,923 13,903 43,618
	459,006 675,983

The following one off payments relating to termination of employment have been made:

Redundancy payments	2022 2021 £ £ - 134,946

On 16 April 2021, six members of staff were made redundant following a re-structure. On 31 July 2021 one further member of staff was made redundant as part of the same re-structure. The redundancy payments for these seven members of staff totalled £134,946.

Notes to the Financial Statements for the Year Ended 31 July 2022

11 Key Management Personnel

The College considers its key personnel to comprise the Trustees and Chief Executive & Principal. From December 2020 through to May 2021, the key personnel also comprised the role of Interim Chief Executive to assist with the restructure.

During the year, no employees were paid more than £60,000 (2021: One employee).

The total remuneration for the key management personnel was as follows:

Salaries National Insurance Contributions Pension contribution	2022 2021 £ £ 52,607 103,312 6,214 10,236 2,104 8,661
	60,925 122,209

The remuneration of the Chief Executive & Principal, who is the highest paid employee and included in the above figures is as follows:

Neil Calvert (from 1 July 2021) Salary National Insurance Contributions Pension contributions Priscilla Ross (from 6 December 2019 until 31 July 2021) Salary National Insurance Contributions Pension contributions	2022 2021 £ £ 52,607 4,333 6,214 496 2,104 174
	60,925 5,003
	2022 2021 £ £ - 79,378 - 9,739 - 8,488
	0 97,606

The number of members of the key management personnel (including the Chief Executive & Principal) whose remuneration, excluding pension contributions, falls into the following bandings:

he following bandings:
£70,001 - £80,000	2022 - 2021 1
	0 1

On 1 July 2021, Neil Calvert began his employment as new Chief Executive & Principal with Dr Priscilla Ross leaving the College after a handover period on 31 July 2021.

Notes to the Financial Statements for the Year Ended 31 July 2022

12 Trustee Remuneration

The Trustees received no remuneration in the performance of their duties.

One trustee (2021: 0) was reimbursed expenses during the year totalling £281 (2021: nil). These represented essential travel and subsistence costs in performance of their duties.

The Co-operative College had the following staff Trustee during the year. They received no remuneration as a Trustee. Their remuneration as an employee was as follows:

Salary Pension Contributions	Daniel Cox £ 28,327 1,133
	29,460

13 Restructuring Costs

A working group of Trustees and management team was convened from July 2020 to review the operations of the College. A reduction in cost base was recommended.

The following costs were incurred in implementing the recommendations of the group:

Redundancy Costs Outplacement support Interim CEO Professional Fees Recruitment Other Costs	2022 2021 £ £ - 134,946 - 4,100 - 19,600 - 25,094 - 31,070 - 13,794
	0 228,604

14 Intangible Fixed Assets

Cost 1 August 2021 31 July 2022 Amortisation 1 August 2021 Charge for year 31 July 2022 Net book value at 1 August 2021 Net book value at 31 July 2022	Website £ 18,000
	18,000
	18,000 -
	18,000
	0 0

Amortisation has been charged against charitable activities in the Statement of Financial Activities.

Notes to the Financial Statements for the Year Ended 31 July 2022

15 Tangible Fixed Assets

Cost 1 August 2021 Additions Disposals 31 July 2022 Depreciation 1 August 2021 Charge for year Disposals 31 July 2022 Net book value 1 August 2021 Net book value 31 July 2022 nvestments 1 August 2021 Divestments Valuation Gain/(Loss) Charges against valuation 31 July 2022		IT Equipment Plant, fixtures and fittings Total £ £ £ 26,856 35,430 62,286 - - - - - - 26,856 35,430 62,286 17,749 33,879 51,628 4,971 405 5,376 - - - 22,720 34,284 57,004 9,107 1,551 10,658 4,136 1,146 5,282 Total Royal London Sustainable Diversified Fund Co-operative Group Shares Chelmsford Star Share Account £ £ £ £ 2,469,463 2,467,963 500 1,000 (390,000) (390,000) (168,148) (168,148) (13,270) (13,270)
		1,898,045 1,896,545 500 1,000

16 Investments

Investments held at 31 July 2022 comprise the following:

Investments held at 31 July 2022 comprise the following:
Current Asset Investments - to be utilised within 12 months Fixed Asset Investments - to be held for at least 12 months	2022 2021 £ £ 215,000 397,500 1,683,045 2,071,963
	1,898,045 2,469,463

Investments are split between current and fixed asset investments to accurately reflect the periods for which the investment is made. Current investments reflects that element that are expected to be drawn for use within 12 months.

Investments held with Royal London in a sustainable diversified fund are reflected at fair value (their market value) at the reporting date. This treatment is in accordance paragraph 11.14(d) of FRS 102.

Notes to the Financial Statements for the Year Ended 31 July 2022

17 Debtors

Trade debtors Project debtors Accrued income Prepayments	2022 2021 £ £ 13,063 29,679 - 14,129 19,887 13,914 13,596 16,686
	46,546 74,408

18 Stock

Stock
Opening stock Stock write down Total Stock Creditors Trade creditors Project creditors Accruals Taxation and social security Other deferred income (note 20) Other creditors VAT		£ 2,468 527 1,941 2022 2021 £ £ 16,414 36,408 36,336 20,848 26,715 49,241 9,223 13,094 6,536 16,266 2,816 36,453 495 2,155
		98,535 174,465

19 Creditors

In the 2021 figures, there is £32,000 included within 'Other creditors' held on behalf of the Lok Swasthya SEWA Trust in relation to the COVID relief fund.

20 Deferred Income

Project Creditors Core Funding Workshops Membership subscriptions	2022 2021 £ £ 36,336 20,848 1,875 - 1,031 12,141 3,630 4,125
	42,872 37,114

Notes to the Financial Statements for the Year Ended 31 July 2022

Reconciliation of Deferred Income

econciliation of Deferred Income
Balance at 1 Aug 2021 Amount released from previous years Amount deferred in current year Balance at 31 July 2022	£ 37,114 25,045 30,803
	42,872

21 Operating Lease Commitments

Operating Lease Commitments
Land & Buildings Not later than one year Later than one year and not later than fve years	2022 £ 9,157	2021 £ 10,528
	801
	9,958	10,528

Payment under operating leases within the year amounted to:

	2022	2021
	£	£
Land and Buildings	15,362	26,882
Plant and Machinery	-	5,876

Notes to the Financial Statements for the Year Ended 31 July 2022

22 Charitable Funds

2022 Expendable Endowment Funds: Co-operative College Fund Restricted Funds: Les Stannard Co-operative Citizenship Fund Co-operative Pioneers Memorial Fund Joyce & Vic Butler Rwanda S.E.A.D. Project Co-op (Ad)venture YOUCOOPE Co-op Foundation/Big Lottery Fund #iWIll Fund: - Youth Co-operative Action Phase Two - Youth Co-operative Action Continuation Project NSCCT Barefoot Co-operative Project CAST - Catalyst and the National Lottery Community Fund COVID-19 Response: - Momentum Programme CAT - Co-operative Adventure Project (Bradford pilot) Malawi Project - DGRV Malawi Project - Central England Co-operative Society Unrestricted Funds: Revenue Reserves Total Charitable Funds	Balance at 1 August 2021 Income Expenditure Investment Losses Transfers Between Funds Balance at 31 July 2022 £ £ £ £ £ £ 1,102,308 - (4,615) (58,488) (402,388) 636,817
	1,102,308 0 (4,615) (58,488) (402,388) 636,817
	46,951 372 (14,241) (2,703) - 30,379 1,014,147 11,401 (10,405) (82,938) - 932,205 204 2 (1) (17) - 188 - 600 (600) - - - - 23,455 (23,455) - - - - 6,802 (6,802) - - - 32,645 - (15,204) (1,425) - 16,016 - 14,316 (92) (1,162) - 13,062 - 1,050 (1,050) - - - - 1,020 (1,020) - - - - 11,442 (11,442) - - - - 340 (340) - - - - 53,092 (24,477) (2,338) - 26,277
	1,093,947 123,892 (109,129) (90,583) 0 1,018,127
	235,000 179,097 (562,408) (19,077) 402,388 235,000
	2,431,255 302,989 (676,152) (168,148) 0 1,889,944

Transfers between funds of £403,823 took place to maintain unrestricted reserves at agreed minimum levels.

Notes to the Financial Statements for the Year Ended 31 July 2022

2021 Expendable Endowment Funds: Co-operative College Fund Restricted Funds: Les Stannard Co-operative Citizenship Fund Co-operative Pioneers Memorial Fund Joyce & Vic Butler Zambia – DGRV Together Enterprise Scotland Rwanda S.E.A.D. Project Co-op (Ad)venture Co-op Starter 2 Coop4Edu YOUCOOPE ESF/WEA – Co-operative (Ad)venture Co-op Foundation/Big Lottery Fund #iWIll Fund: Youth Co-operative Action Phase Two NSCCT Barefoot Co-operative Project CAST - Catalyst and the National Lottery Community Fund COVID-19 Response: Discovery Programme Development Programme Momentum Programme Unrestricted Funds: Revenue Reserves Total Charitable Funds	Balance at 1 August 2020 Income Expenditure Investment Gains Transfers Between Funds Balance at 31 July 2021 £ £ £ £ £ £ 1,526,762 - (7,177) 138,287 (555,564) 1,102,308
	1,526,762 0 (7,177) 138,287 (555,564) 1,102,308
	48,883 497 (8,421) 5,992 - 46,951 904,419 10,744 (30,438) 129,422 - 1,014,147 177 2 (1) 26 - 204 - 239 (239) - - - - 9,249 (9,249) - - - - 9,900 (9,900) - - - - 61,591 (61,591) - - - - 794 (794) - - - - 5,303 (5,303) - - - - 5,136 (5,136) - - - - 13,734 (13,734) - - - 98,455 23,062 (93,038) 4,166 - 32,645 - 10,780 (10,780) - - - - 5,000 (5,000) - - - - 6,711 (6,711) - - - - 15,605 (15,605) - - -
	1,051,934 178,347 (275,940) 139,606 0 1,093,947
	282,000 284,476 (921,158) 34,118 555,564 235,000
	2,860,696 462,823 (1,204,275) 312,011 0 2,431,255

Transfers between funds of £555,564 took place to maintain unrestricted reserves at agreed minimum levels.

Notes to the Financial Statements for the Year Ended 31 July 2022

Endowment and Restricted Funds are held for the following purposes:

Co-operative College Fund

Resulting from the sale of property originally purchased with funds gifted by the co-operative movement. The funds are invested in order that the interest and gains arising can be used to support the College in the furtherance of co-operative education. The Trustees reserve the right to release funds from the endowment for strategic purposes. During the financial year funds were released to support College operations in line with the agreed strategic plan.

Les Stannard Co-operative Citizenship Fund

Given by the South East Region of The Co-operative Group the purpose of the fund is to support young people (aged 25 and under) who wish to participate in educational opportunities provided by the College. Such educational opportunities should be within a wider citizenship theme.

Co-operative Pioneers Memorial Fund

Established in early 2010 when a number of small funds were brought together, the fund aims to enable learners facing financial difficulties to participate in programmes arranged by the Co-operative College. This includes funding for bursaries and match funding for projects through which participants benefit from College services and programmes which they could not afford to do so otherwise.

Co-op Foundation/Big Lottery Fund #iWill Fund

Three grants have been awarded from this fund. The first grant, awarded in 2017 funded the project 'Youth Co-operative Action: Tackling Youth Loneliness in Rochdale and Manchester's Care Leaver Community', which completed in November 2018. The second grant for phase two of the Youth Co-operative Action project is funding the College to work in Greater Manchester, Plymouth and Hartlepool. This project began in Spring 2019 and completed in January 2022. The third grant for the continuation of the Youth Co-operative Action project is funding the College to work in London, Greater Manchester and Plymouth. Delivery of this project began in Autumn 2022 and is expected to be completed by July 2023.

Central England Fairtrade and International Development Project - Malawi

Two grants have been awarded by Central England Co-operative Society in regards to this project. The first grant, awarded in October 2021 funded the College to work on the Development Phase of the 'On the Ground Development’ section of the Central England Fairtrade and International Development Project. This work completed in June 2022. The second grant commenced in July 2022 and funds the College to manage the ‘On the Ground Development’ section of the project as part of Central England's 'Our Malawi Partnership' 5 year programme, which launched in July 2022. The project uses ‘principle 6’ to improve the livelihoods of smallholder farmers across Malawi, by strengthening key co-operative unions producing coffee, rice, nuts and tea through training support given my MAFECO (the national co-op apex body in Malawi) and linking them to UK Co-operative buyers. The current grant is expected to end in June 2025 with the potential for a further 2 year extension.

Sufficient resources are held in an appropriate form to enable the funds to be applied in accordance with any restrictions imposed.

Notes to the Financial Statements for the Year Ended 31 July 2022

Analysis of net assets between funds

2022 Tangible assets Fixed asset investments Current assets Current liabilities 2021 Tangible assets Fixed asset investments Current assets Current liabilities	Unrestricted Funds Restricted Funds Endowment Funds Total £ £ £ £ 5,282 - - 5,282 28,101 1,018,127 636,817 1,683,045 275,494 24,658 - 300,152 (73,877) (24,658) - (98,535)
	235,000 1,018,127 636,817 1,889,944
	Unrestricted Funds Restricted Funds Endowment Funds Total £ £ £ £ 10,658 - - 10,658 - 969,655 1,102,308 2,071,963 397,269 125,830 - 523,099 (172,927) (1,538) - (174,465)
	235,000 1,093,947 1,102,308 2,431,255

23 Reconciliation of Net Incoming Resources to Net Cash Outflow from Operating Activities

Net expenditure for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges Amortisation charges Disposal of assets Losses/(Gains) on investments Management charges against valuation of investment Dividends and interest from investments Decrease in stock Decrease in debtors (Decrease)/Increase in creditors Net cash used in operating activities	2022 2021 £ £ (541,311) (429,441) 5,376 8,009 - 4,500 - 2,960 168,148 (312,011) 13,270 16,193 (24,921) (32,508) 527 - 27,862 41,589 (75,930) 23,312
	(426,979) (677,397)

Net expenditure for the reporting period (as per the statement of financial
activities)
Adjustments for:
Depreciation charges
Amortisation charges
Disposal of assets
Losses/(Gains) on investments
Management charges against valuation of investment
Dividends and interest from investments
Decrease in stock
Decrease in debtors
(Decrease)/Increase in creditors
Net cash used in operating activities

2022
2021
£
£
(541,311)
(429,441)
5,376
8,009
-
4,500
-
2,960
168,148
(312,011)
13,270
16,193
(24,921)
(32,508)
527
-
27,862
41,589
(75,930)
23,312

(426,979)
(677,397)

Notes to the Financial Statements for the Year Ended 31 July 2022

24 Analysis of Changes in Net Debt

Cash at bank and in hand Total cash and cash equivalents	Balance at 1 August 2021 Cash flows Balance at 31 July 2022 £ £ £ 48,723 (12,058) 36,665
	48,723 (12,058) 36,665

25 Contingent Liabilities and Capital Commitments

The College has no contingent liabilities or capital commitments as at the balance sheet date.

26 Related Party Transactions

The following are related party transactions, as defined by Financial Reporting Standard 102, section 33, together with details of notable transactions.

The Co-operative Heritage Trust

The Co-operative College is one of the founding members of the Co-operative Heritage Trust. As a founding member, the College has the right to nominate up to two Trustees onto the Board of the Co-operative Heritage Trust.

Amounts of £4,791 (2020/21 - £4,725) and £195 (2020/21 - £790) were receivable from and payable to the Co-operative Heritage Trust for the 12 month period. At 31 July 2022 the balance owed to the College was £nil (2021: £4,725) and the balance payable to the Co-operative Heritage Trust was £nil (2021: £nil).

Transactions with Trustees are detailed in note 12.