**ANNUAL REPORT AND ACCOUNTS** Y E A R E N D E D 3 1 J U L Y 2 0 2 3
## TRUSTEES' REPORT
The Trustees present their annual report and financial statements of the Charity for the year ended 31 July 2023. 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 Co-operative College began the financial year in August 2022 with the launch of a new strategy, identifying its direction, purpose and key areas of focus for the three years to July 2025 following extensive internal and external consultation. The work of the College is varied and rarely static, and this has again been another year of change, as well as being one in which considerable progress has been made. 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.
The Chief Executive and 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 and Principal is supported by a wider Leadership Team who are accountable for specific areas of the College’s work.
1
## OBJECTS & 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 cooperative 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**
**Networks International of knowledge* 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 behaviour**
**Concern for community**
2
*The ‘Networks of knowledge’ strand was originally described as ‘Thought leadership’ when the strategy was first published in the summer of 2022. A change of name was subsequently agreed to more accurately reflect the broad aims of this aspect of our work, which has at its core the intention to operate as an enabler and facilitator, using our unique position at the hub of networks of co-operative educators to improve the collaborative exchange of knowledge.
The launch of the College’s strategy included a recognition of a much changed internal and external context, compared to that which was in place when its predecessor was published in 2019. The COVID-19 pandemic was seen to be having a lasting impact on the way in which individuals and organisations accessed learning, training and development, with blended programmes likely to become increasingly popular. As noted in last year’s report, but still very relevant, is the fact that an already challenging economic outlook had been made even tougher by the invasion of Ukraine in early 2022 and a global spike in inflation which even now has still not returned to pre-pandemic levels. Coupled with the loss, over the last three years, of almost all of the College’s unrestricted, core funding, the impact of these factors means that work to improve efficiency continues to be a high priority. The strategy also provides an indication of the importance to the smaller, leaner College of working in partnerships – with cooperatives, academic institutions and other value-based organisations.
The College’s greatest asset is its people, and the year has seen very high levels of engagement from the staff team together with a real sense of shared purpose. 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 other 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 developing the College’s membership offer.
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.
3
## ACHIEVEMENTS & PERFORMANCE
Following the 2021-22 year, in which a brand-new team was faced with the challenges of the still-new remote working pattern and four day week, the urgency of securing new business and the need to develop a new strategy, 2022-23 provided some welcome stability, particularly for those members of staff who had been with the College throughout such a sustained period of change. The performance of our highly focussed staff team was crucial to a year of considerable achievement, the highlights of which are presented here, organised by the four strands of the current College strategy.
## Co-operative learning
The year began with the College continuing to work towards establishing a precise definition of ‘co-operative learning’, in order to be able to articulate the facilitated, coconstructed and collaborative learning approach which applies to all of our work, regardless of who the learners are or whether delivery is remote, face-to-face or hybrid. Through a series of activities involving staff, delegates at study visits and an online event for members and wider stakeholders, the concept of ‘Eau de Co-operation’ was established as a metaphor for the College’s distinctive learning approach. As well as being a valuable resource for use internally, this piece of work has been written up as an academic paper which will be peer reviewed and published in 2024.
Learner feedback continues to be extremely positive across the full range of our activities, and while evaluations are used to inform future planning, they also provide ongoing validation of the College’s drive to improve both the quality and consistency of its provision. Access to our programme of online, self-paced learning courses was added as a complimentary benefit of individual membership of the College during the year, to enhance our membership offer and to widen access to these resources.
4
The provision of learning programmes for partners in the UK has continued to develop, ranging from online, self-paced materials to bespoke, face-to-face activities, and has included work with partners including a number of the major retail societies. The College continues to work closely with the Co-operative Group’s National Members’ Council, delivering training for members, and has also extended its work with the Group to include facilitated sessions for its Senate and secretariat. During the year, we also returned to the schools sector, leading a highly successful full day of INSET training on co-operative values for the Keys Co-operative Academy Trust, and worked for the first time with staff from the House of Commons Library, for whom we led a facilitated team-building event.
A significant amount of progress was made during the year on the College’s new higher education partnership with the University of Dundee. An academic framework has now been agreed with the University’s Business School for a programme of four postgraduate, masters-level, modules focused on the co-operative business model and the worldwide movement. Each can either be studied as a stand-alone, micro-credentialled module, or combined with others to gain a postgraduate certificate, with the delivery taking place online in live sessions led by the College staff. A pilot module is scheduled for first delivery in the spring of 2024, with formal teaching on the postgraduate certificate programme set to begin in early 2025.
Having resumed the provision of study visits for international clients in 2021-22, following the relaxation of the travel restrictions imposed during the COVID-19 pandemic the College saw significant growth in these activities in 2022-23, with delegates travelling from countries including Brazil, Nigeria, Italy and the Philippines to experience a mix of visits and learning activities in and around Manchester. We are extremely grateful to partner organisations, including Co-ops UK, the Co-operative Group, the Co-operative Heritage Trust and ICMIF, whose provision of specialist input helps to add relevance and currency to the bespoke programme constructed for each visit. With further refinement of our distinctive approach, to ensure that visits retain a genuine focus on learning, we have again been delighted to receive almost exclusively positive learner feedback from our international visitors.
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 self-paced, digital learning resources for the global ambassadors of the International Raffeisen Union.
5
## Networks of knowledge
Although small in size, the College recognises its unique position within the global cooperative movement and the opportunities that brings for providing spaces and networks for the dissemination, discussion and further development of current and relevant thinking. Webinars held for members and friends of the College during the year have included a focus on the UN Sustainable Development Goals, a workshop contributing to the ‘Eau de Co-operation’ research into co-operative learning approaches and a stakeholder consultation event as part of the ICA’s global consultation on the co-operative identity. This may have been the only such event focused specifically on Principle 5 – Education, training and information, and was attended by delegates from more than 30 countries around the world. In partnership with the Co-op News, we also continue to lead the regular ‘Co-op Women’s Voices’ online events.
College staff have also been active in reaching out more widely to engage co-operative learners, with three members of our leadership team, Neil Calvert, Jacqui Thomasen and Sarah Alldred, leading sessions for groups of learners in the Philippines, Malta and at a Caribbean World of Work online forum respectively. Amanda Benson and Stacey Salt, from the College’s Learning Team, were also invited to present the theme and initial findings from our ‘Eau de Co-operation’ research into our distinctive co-operative learning approach. The Global Co-operative College Network was launched in the autumn of 2023 as a forum to enable co-operative educators to share best practice and work collaboratively in mutual support.
## International co-operative development
The major focus of the College’s international project work during the year was again a co-operative development initiative in Malawi, funded by Central Co-op. ‘Our Malawi Project’ is a UK-led retail strategy with the aim of taking Malawian communities out of abject poverty by developing co-operatives and transforming their trading capacity, whilst also creating engagement opportunities with Central Co-op members and communities.
6
Building on our prior experience of working in co-operative development in the country, the College is providing project management in Malawi and using our distinctive learning approach to help create mutually beneficial co-operative networks. As the project entered its second year, our Learning Team began to establish communities of practice to support trainers based at MAFECO, the national apex body for cooperatives, through the use of online ‘teachmeets’.
## Youth empowerment
The 2022-23 year saw the College deliver its final round of Youth Co-operative Action (YCA) projects funded by the Co-operative Foundation and the Big Lottery #iwill Fund. Multiple cohorts of young people in London, Rochdale and Lowestoft were able to follow the YCA programme, which is either centred in a school or college or anchored by an existing community organisation, aims to inspire young people to use cooperative values and principles to make a change where they live and is typically targeted at disadvantaged groups and/or members of deprived communities. The themes of the social action activities chosen by the project participants included combatting racism in their communities and protecting their local environments.
Work also began during the year on developing a new, more flexible programme to become the successor of YCA. Following a co-construction session involving a range of partners and stakeholders, a pilot project was delivered very successfully to a group of students at Falinge Park High School in Rochdale. The learning from the pilot is now being used to create a values-based programme, which can be varied in length and can be tailored to meet the needs of young people of different ages and in a variety of settings.
While the YCA programme has been delivered exclusively in the UK, the intention for the new programme is that it will also be able to be used by our overseas partners. One international youth programme is already underway. Throughout the year, colleagues from our Learning Team led 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 have co-constructed 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.
7
## FUTURE PLANS
Achieving lasting financial sustainability continues to be the highest priority for the College, after a year of considerable progress. 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 successful first year of the strategy completed, the College ended the year wellplaced to make further inroads into 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:
- The higher education partnership with the University of Dundee, providing a range of options for learners from micro-accreditation a postgraduate certificate and potentially a masters degree, 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 connecting more with our higher education partnerships.
- Further development of the new pilot co-operative youth programme for a range of UK and international beneficiaries, 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:
- Active engagement with ongoing discussions within the UK co-operative movement about a shared fund for international co-operative development, to ensure that the College is able to continue to grow its ICD provision and make effective use of the experience and expertise of our staff.
- The development of the recently launched Global Co-operative College Network to maximise the shared potential of collaboration with co-operative educators around the world.
8
- A further increase in engagement with our members, to ensure that the College continues to meet their needs and is able to 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.
In February 2024, the Trustee Board announced that Jacqui Thomasen and Ali Longden would step up to share the leadership responsibilities of the College, as CEO and Principal respectively, upon the departure of Neil Calvert, who will step down from his post at the end of June 2024.
Jon Nott, On behalf of the Board of Trustees
Neil Calvert, Chief Executive & Principal
9
## OVERVIEW OF FINANCIAL RESULTS
## Background
The year to July 2023 was the first in which the College was operating under its new strategy, and also first in which the new College team had been in place to set budgets and operational plans. In several of the previous years we had seen the loss of, or significant reduction in, many of the most important income streams to the College. As a result, the financial focus in the preceding years had to be on a significant reduction in costs. The 2020-21 restructure, switch to a four-day week and the move to a smaller office base generated large savings during 2021-22, a year in which expenditure fell from £1.31million two years previously to £676k.
Following these major reductions to the cost base, in the year to July 2023 the College began to see resulting improvements in its financial position, with activity delivered under the new strategy resulting in an increase in income of over 35%, to £414k (from £302k in 2022.) The net movement in funds, whilst still in deficit, had reduced by over 50%, to -£260k (from -£541k in 2022)
The 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 funding. This will improve our resilience in the long term and reduce our reliance on core funding sourced solely from within the co-operative movement, most of which is now no longer available to the College as it had previously been throughout most of its history.
10
## Performance
Total income for the year to July 2023 was £414,423, made up of £335,022 income from charitable activities, £48,497 from donations and legacies, and £30,904 from investments.
Learning income increased by 38.7% to £136,873 in the 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, and in particular a sharp increase in the income generated by international study visits, the market for which has continued to be particularly buoyant and receptive. These capitalise on our heritage and strong reputation, but offer something distinctive through our distinctive learning approach, providing greater return on investment for client organisations than a more traditional ‘educational tourism’ offer and also increasing the likelihood of recurrent business.
The partnerships with higher education providers that have been established over the last two years are, as expected, taking a long time to establish and deliver significant income, due to the regulatory environment. The confirmation of delivery of a pilot programme in our collaboration with the University of Dundee is an important step towards the delivery of accredited courses in the next year which promise to provide a sustainable and significant revenue stream.
Projects income more than doubled from 2022 to £188,707. However, this reflected the final year of funding of YCA projects from the Co-op Foundation, and there is a need to secure funding elsewhere for the new UK youth project work currently under development. Our major piece of international project work focused around the Central Co-op funded international co-operative development project in Malawi, for which the College has secured funding for three years to manage the ‘on the ground development’ section of the project.
Membership income reduced slightly from £10,509 to £9,302. 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.
11
Overall expenditure in the year to July 2023 was £677,523, an increase of just £1,371 from 2022 despite inflationary pressures on all aspects of the College’s cost base and an increase in the overall headcount from 10.1 FTE to 10.3 FTE. This was made up of £653,214 expenditure on charitable activities and £24,309 expenditure on raising funds.
Following significant savings being made on staffing in recent years, staffing costs increased from £459k to £494k, reflecting an inflationary pay award and the small increase in headcount.
## Balance sheet
The College balance sheet shows net assets of £1,629,128. 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 2023, we have continued to add funds to specific project monies held through our investments.
**----- Start of picture text -----**
12
**----- End of picture text -----**
## 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.
It is recognised that the College does not have expertise in making longer–term investment decisions and as such has 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.
Following a significant fall of £168k in the value of our investments held in Royal London’s Sustainable Diversified Funds in 2022, there were no further losses in 2023, with a small increase in value reflected at the year-end of £2,284. Whilst the year to July 2022 did reflect investment losses, largely as a consequence of world events, 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. Postbalance sheet gains were reported in Q1 and Q2 of the new financial year (ending July 2024).
13
## 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 2023, and to be carried through the 2023-24 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, £1,828 of funds held would only be realised by the sale of fixed assets, thereby leaving £233,172 as free reserves.
Total reserves were £1,629,128 with endowment funds making up £314,541 and restricted funds £1,079,587. Movements in funds and more detail on the purpose of specific funds can be found in note 21 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 continue to monitor any such transfers through the quarterly presentation of management accounts.
14
## - 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.
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.
15
## GOING CONCERN
The College has £235k of unrestricted reserves and approximately £314k of expendable endowment. The latter is invested for income and long-term gains but accessible within three 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.
16
## STRUCTURE, GOVERNANCE AND MANAGMENT
## 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 2021-22 and meet on a quarterly basis. All meetings are attended by the Chief Executive and Principal, relevant members of the Leadership Team and where appropriate other colleagues.
The Chief Executive and 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 and Principal is supported by a wider Leadership Team who are accountable for specific areas of the College’s work.
During the year to July 2023, the Executive Team comprised:
**----- Start of picture text -----**
Name Role Length of Service
Neil Calvert Chief Executive & Principal 2 years
**----- End of picture text -----**
Remuneration for the executive staff team is determined via the College’s Reward and Recognition Policy whereby all colleagues’ roles are evaluated against specific role and salary bands. The role of the Chief Executive and 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.
17
## 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 Risk 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.
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.
18
## 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
Three new Trustees were appointed during the year to 31 July 2023.
## Board of Trustees
The Trustees for the year to 31 July 2023 and up to the point of signing the annual report and accounts were as follows:
**----- Start of picture text -----**
Name Category Appointed Further Details
Co-optee until 1 May 2018.
Jon Nott Organisational 12 October Organisational member from
(Chair) member 2017 that date. Reappointed
7 October 2021
Individual Reappointed 19 June 2020.
John Boyle 21 April 2016
member Retired 22 June 2023
Learner Reappointed 19 June 2020.
Pamela Maxwell 5 April 2017
member Retired 22 June 2023
Daniel Cox Staff member 21 June 2019 Retired 22 June 2023
Co-operatives
Vivian Woodell 21 June 2019 Retired 12 October 2022
UK
Organisational
Clive Booker 19 June 2020 Resigned 8 November 2022
member
**----- End of picture text -----**
19
**----- Start of picture text -----**
Name Category Appointed Further Details
Individual
Ruth Hall 7 October 2021 Resigned 30 June 2023
member
Reappointed 30 August
Simon Individual 2022. Co-optee until
13 January 2022
Thomson member 22 June 2023. Individual
member from that date
Co-optee until 30 June
Gregory Individual
13 January 2022 2022. Individual member
Roberts member
from that date
Rose Harvey Co-opted
13 January 2022 Reappointed 20 July 2022
(Vice Chair) member
Co-optee until 30 June
Christopher Individual
13 January 2022 2022. Individual member
Jardine member
from that date
Rose Harvey Co-opted
13 January 2022 Reappointed 20 July 2022
(Vice Chair) member
Co-optee until 30 June
Christopher Individual
13 January 2022 2022. Individual member
Jardine member
from that date
Jenny de Co-operatives
3 November 2022
Villiers UK
Grant Individual
22 June 2023 Resigned 3 April 2024
Wolstencroft member
Barbara Organisational
22 June 2023
Rainford member
Co-opted
member
Danny Douglas 3 August 2023
(Central
Co-op)
**----- End of picture text -----**
20
## Audit and Risk Committee
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 2023 and up to the point of signing the annual report and accounts the members of the Audit and Risk Committee were as follows:
**----- Start of picture text -----**
Name Appointed - Retired Category
Vivian Woodell (Chair 18 November 2021 -
Board member
until 6 October 2022) 6 October 2022
1 April 2022 -
Ruth Hall Board member
30 June 2023
Co-optee (non-Trustee
James Day 1 April 2022 -
member)
Christopher Jardine
8 September 2022 - Board member
(Chair)
Jenny de Villiers 8 March 2023 - Board member
**----- End of picture text -----**
## 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.
21
## 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 became a designated further education institution under The Education (Designated Institutions in Further Education) Order 1993. The Education Act 2011 subsequently 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.
The Skills and Post 16 Education Act 2022 introduced new statutory requirements for designated further education institutions. Having taken advice on the implications of these new requirements, Trustees took the decision on 6 April 2023 to request the College’s removal from the statutory further education sector. The Education (Designated Institutions in Further Education) Order 1993 was laid before Parliament on 20 July 2023, and the College’s designation as a further education institution was subsequently removed.
## 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 cooperative 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.
22
## 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 80 Fenchurch Street London EC3M 4BY
23
## 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.
24
Approved by the Trustees on 3 April 2024 and signed on their behalf by:
Jon Nott, On behalf of the Board of Trustees
**----- Start of picture text -----**
25
**----- End of picture text -----**
## Independent auditor’s report to the Trustees of the Co-operative College
I report to the Charity Trustees on my examination of the accounts of the Charity for the year ended 31 July 2023.
## Responsibilities and basis of report
As the Charity’s Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)b of the Act.
## Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Co-operative College as required by section 130 of the Act; or
2.
- the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## Helen Binns FCA
Chartered Accountant Beever and Struthers One Express, 1 George Leigh Street Manchester, M4 5DL Date: 15 April 2024
26
## **Co-operative College Statement of Financial Activities for the Year Ended 31 July 2023**
## **Year Ended 31 July 2023 Year Ended 31 July 2022**
|||**Unrestricted**|**Restricted**|**Endowment**|**Total Funds**|**Unrestricted**|**Restricted**|**Endowment**|**Total Funds**|
|---|---|---|---|---|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|**2023**|**Funds**|**Funds**|**Funds**|**2022**|
|||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Income**||||||||||
|Donations and Legacies|2|12,497|36,000|-|48,497|49,806|23,455|-|73,261|
|Charitable Activities|4|118,396|216,626|-|335,022|116,145|88,662|-|204,807|
|Investments|5|13,722|17,182|-|30,904|13,146|11,775|-|24,921|
|**Total Income**||**144,615**|**269,808**|**0**|**414,423**|**179,097 **|**123,892 **|**0**|**302,989**|
|**Expenditure**||||||||||
|Raising Funds|9|15,374|6,934|2,001|24,309|10,457|7,148|4,615|22,220|
|CharitableActivities|8|453,469|199,745|-|653,214|551,951|101,981|-|653,932|
|**Total Expenditure**||**468,843**|**206,679**|**2,001 **|**677,523**|**562,408**|**109,129**|**4,615**|**676,152 **|
|Gains/(Losses) on Investments|15|4,435|(1,669)|(482)|2,284|(19,077)|(90,583)|(58,488)|(168,148)|
|**Net Income/(Expenditure)**||**(319,793)**|**61,460**|**(2,483)**|**(260,816)**|**(402,388)**|**(75,820)**|**(63,103)**|**(541,311)**|
|Transfers Between Funds|21|319,793|-|(319,793)|-|402,388|-|(402,388)|-|
|**Net Movement in Funds**|21|**-**|**(61,460)**|**(322,276)**|**(260,816)**|**-**|**(75,820)**|**(465,491)**|**(541,311)**|
|**Reconciliation in Funds**||||||||||
|Funds Brought Forward||235,000|1,018,127|636,817|1,889,944|235,000|1,093,947|1,102,308|2,431,255|
|**Total Funds Carried Forward**||**235,000**|**1,079,587 **|**314,541**|**1,629,128**|**235,000**|**1,018,127**|**636,817**|**1,889,944**|
27
## **Co-operative College Balance Sheet as at 31 July 2023**
||**Notes**|**Total Funds**|**Total Funds**|
|---|---|---|---|
|||**31 July 2023**|**31 July 2022**|
|||**£**|**£**|
|**Fixed Assets**||||
|Tangible Assets|14|1,828|5,282|
|Investments|15|1,395,102|1,683,045|
|**Total Fixed Assets**||**1,396,930**|**1,688,327**|
|**Current Assets**||||
|Stock|17|1,669|1,941|
|Debtors and Prepayments|16|41,559|46,546|
|Investments|15|215,000|215,000|
|Cashat Bankandin Hand|23|88,745|36,665|
|**Total Current Assets**||**346,973**|**300,152 **|
|**Liabilities**||||
|Creditors: amounts falling due within one year|18|114,775|98,535|
|**Net Current Assets**||**232,198**|**201,617**|
|||||
|**Net Assets**||**1,629,128**|**1,889,944**|
|**The Funds of the Charity**||||
|Endowment Funds|21|314,541|636,817|
|Restricted Funds|21|1,079,587|1,018,127|
|Unrestricted Funds|21|235,000|235,000|
|**Total Charitable Funds**||**1,629,128**|**1,889,944**|
The financial statements on pages 27 to 45 were approved and authorised for issue by the Board of Trustees on 3 April 2024 and approved on its behalf by
## **Jon Nott Chair of the Board of Trustees**
28
## **Co-operative College Cash Flow Statement for the Year Ended 31 July 2023**
||**Notes**|**Year Ended 31**|**Year Ended 31**|
|---|---|---|---|
|||**July 2023**|**July 2022**|
|||**£**|**£**|
|**Cash Flows from Operating Activities:**||||
|**Net Cash Used inOperating Activities**|**22**|**(259,368)**|**(426,979)**|
|**Cash Flows from Investing Activities:**||||
|Dividends and Interest from Investing||30,904|24,921|
|Purchasing of Plant and Equipment||-|-|
|Proceeds from Sale of Plant and Equipment||750|-|
|Proceeds from Sale of Investment||279,794|390,000|
|**Net Cash Provided by Investing Activities**||**311,448**|**414,921**|
|**Change in Cash and Cash Equivalents in the**||**52,080**|**(12,058)**|
|**Reporting Period**||||
|**Cash and Cash Equivalents at the Beginning**||**36,665**|**48,723**|
|**of the Reporting Period**||||
|**Cash and Cash Equivalents at the End of the**||**88,745**|**36,665**|
|**Reporting Period**||||
29
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **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.
The College has £235k of unrestricted reserves and approx. £314.5k of expendable endowment. The latter is invested for income and long-term gains but accessible within three 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.
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 21 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.
30
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **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.
31
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **g Restructuring costs**
Restructuring costs contain two elements:
## **i) Redundancy pay**
With the proviso that no redundant employee is to receive less than two weeks' pay, and no less than four weeks’ pay for two 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 half-week.
The prescribed scale is calculated in the following manner:
1. For each year of employment from age 15 and over, but under 22 – half a week's pay.
2. For each year of employment from age 22 and over, but under 41 – one week's pay.
3. 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 four years' service, notice period of four weeks
2. More than four 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 12 months.
## **Investments**
Investments are recognised at fair value at each reporting date. This is taken to be the publicly 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 publicly 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.
32
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **j 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|**2023**
**2022**
**£**
**£**
4,997
27,470
43,500
45,791|
|---|---|
||**48,497**
**73,261**|
Income from donations and legacies above includes £36,000 relating to restricted purposes (2022: £23,455)
## **3 Grants**
In 2022/23 the College received the following grants and funding:
|**Co-op Foundation/Big Lottery Fund #iWill Fund:**
Youth Co-operative Action Continuation Project
**Central England Co-operative Society:**
International Co-operative Development Project Malawi - Development Phase
International Co-operative Development Project Malawi - ‘On the Ground Development’
Youth Co-operative Action Project Lowestoft
**Co-operative Academies Trust:**
Co-operative Adventure Project - Bradford Pilot|**2023**
**2022**
**£**
**£**
131,508
14,316
-
31,200
-
-
19,800
31,200
18,200
17,900|
|---|---|
||**162,708**
**101,416**|
Income from grants above reflects £162,708 for restricted purposes (2022: £101,416)
33
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **4 Charitable income**
|**2023**
**Course and Programme Fees**
**Projects**
**Miscellaneous**
**Other (note 6)**|**Learning &**
**Development**
**Membership**
**Projects**
**Central**
**Total**
**£**
**£**
**£**
**£**
**£**
131,518
-
-
-
131,518
-
-
188,707
-
188,707
5,355
-
-
140
5,495
-
9,302
-
-
9,302|
|---|---|
||**136,873**
**9,302 **
**188,707 **
**140**
**335,022**|
Charitable income above includes £216,626 relating to restricted purposes
|**2022**
**Course and Programme Fees**
**Projects**
**Miscellaneous**
**Other (note 6)**|**Learning &**
**Development**
**Membership**
**Projects**
**Central**
**Total**
**£**
**£**
**£**
**£**
**£**
97,647
-
-
-
97,647
1,050
-
88,087
-
89,137
-
-
-
127
127
-
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
## **5 Investment income**
|**Investment income**||
|---|---|
|Dividends and Interest on Investments|**2023**
**2022**
**£**
**£**|
||**30,904**
**24,921**|
Investment income above includes £17,182 relating to restricted funds (2022: £11,775)
## **6 Other charitable income**
|**ther charitable income**||
|---|---|
|Membership
Event Facilitation|**2023**
**2022**
**£**
**£**
9,302
10,509
-
7,387|
||**9,302 **
**17,896**|
None of the above income related to restricted purposes
34
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **7 Allocation of governance and support costs**
|Cost of Goods Sold
Administration
Central Staffing
Infrastructure
Professional Fees
Travel
Governance Costs (below)
**Total**|**2023**
**2022**
**Basis of apportionment**
**Total Allocated**
**Governance**
**Other Support**
**Costs**
**Total**
**Allocated**
**Governance**
**Other**
**Support**
**Costs**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
-
1,290
-
1,290
Expenditure*
16,649
287
16,362
17,506
320
17,186
Expenditure*
165,477
-
165,477
175,643
-
175,643
Expenditure*
20,965
439
20,526
36,491
418
36,073
Expenditure*
13,598
-
13,598
25,594
-
25,594
Expenditure*
11,928
-
11,928
5,812
-
5,812
Expenditure*
4,567
4,567
-
14,748
14,748
-
Expenditure*
**233,184 **
**5,293**
**227,891 **
**277,084 **
**15,486**
**261,598**|
|---|---|
*Governance and support costs are allocated to each charitable activity stream in proportion to its level of direct expenditure
## **Governance Costs**
|Trustee Expenses
Independent Examiner/External Auditor
Legal Fees|**2023**
**2022**
**£**
**£**
747
281
2,500
12,067
1,320
2,400|
|---|---|
||**4,567 **
**14,748**|
The Independent Examiner’s remuneration constituted an independent examination fee of £2,500 (2022 audit fee: £12,151). No other services were provided by the Independent Examiner.
35
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **8 Charitable expenditure**
|**2023**
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 and**
**Development**
**Projects**
**Total 2023**
**£**
**£**
**£**
197,949
117,479
315,428
16,786
50,601
67,387
1,403
406
1,809
15,120
15,427
30,547
-
-
-
3,001
1,858
4,859
-
-
-
127,099
100,792
227,891
2,952
2,341
5,293|
|---|---|
||**364,310**
**288,904 **
**653,214**|
Expenditure on charitable activities was £653,214 (2022: £653,932) of which £453,469 (2022: £551,951) was unrestricted and £199,745 (2022: £101,981) was restricted.
|**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 and**
**Development**
**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**
**288,789**
**653,932**|
36
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **9 Raising funds**
|Fundraising Staff Costs
Membership Staff costs
Administration
Miscellaneous
Investment Management|**2023**
**2022**
**£**
**£**
5,442
-
8,198
8,458
236
692
-
(200)
10,433
13,270|
|---|---|
||**24,309**
**22,220**|
**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**|**2023**
**2022**
-
-
13.1
13.1
**13.1**
**13.1**
**10.3**
**10.1**|
|---|---|
The costs incurred in respect of these employees were:
|Salaries and Wages
Social Security
Pension
Other|**2023**
**2022**
**£**
**£**
427,080
393,069
38,753
35,365
21,027
16,669
7,971
13,903|
|---|---|
||**494,831 **
**459,006**|
**11 Key management personnel** The College considers its key personnel to comprise the Trustees and Chief Executive and Principal. During the year, no employees were paid more than £60,000 (2022: 0).
The total remuneration for the key management personnel was as follows:
|Salaries
National Insurance Contribution
Pension Contribution|**2023**
**2022**
**£**
**£**
55,517
52,607
6,546
6,214
2,221
2,104|
|---|---|
||**64,284**
**60,925**|
37
**Notes to the Financial Statements for the Year Ended 31 July 2023**
The remuneration of the Chief Executive and Principal, who is the highest paid employee and included in the above figures is as follows:
|**Neil Calvert**
Salary
National Insurance Contribution
Pension Contribution|**2023**
**2022**
**£**
**£**
55,517
52,607
6,546
6,214
2,221
2,104|
|---|---|
||**64,284**
**60,925**|
## **12 Trustee remuneration**
The Trustees received no remuneration in the performance of their duties.
Six Trustees (2022: one) were reimbursed expenses during the year totalling £747 (2022: £281). 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 Contribution|**Daniel Cox**
**£**
30,263
1,211
**31,474**|
|---|---|
38
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **13 Intangible fixed assets**
|**Cost**
1 August 2022
**31 July 2023**
**Amortisation**
1 August 2022
Charge for Year
**31 July 2023**
Net Book Value at 1 August 2022
**Net Book Value at 31 July 2023**|**Website**
**£**
18,000|
|---|---|
||**18,000**|
||18,000
-|
||**18,000**|
||0
**0**|
Amortisation has been charged against charitable activities in the Statement of Financial Activities.
## **14 Tangible fixed assets**
|**Cost**
1 August 2022
Additions
Disposals
**31 July 2023**
**Depreciation**
1 August 2022
Charge for Year
Disposals
**31 July 2023**
Net Book Value 1 August 2022
**Net Book Value 31 July 2023**|**IT Equipment**
**Plant, Fixtures**
**and Fittings**
**Total**
**£**
**£**
**£**
26,856
35,430
62,286
-
-
-
-
(1,618)
(1,618)|
|---|---|
||**26,856**
**33,812**
**60,668**|
||22,720
34,284
57,004
2,308
304
2,612
-
(776)
(776)|
||**25,028**
**33,812**
**58,840**|
||4,136
1,146
5,282
**1,828**
**0**
**1,828**|
39
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **15 Investments**
|1 August 2022
Divestments
Valuation Gain/(Loss)
Charges Against Valuation
**31 July 2023**|**Total**
**Royal London**
**Sustainable Diversified**
**Fund**
**Co-operative Group**
**Shares**
**Chelmsford Star**
**Share Account**
**Co-operative**
**House Europe**
**£**
**£**
**£**
**£**
**£**
1,898,045
1,896,545
500
1,000
(279,794)
(275,000)
(4,794)
2,284
(2,510)
4,794
(10,433)
(10,433)|
|---|---|
||**1,610,102 **
**1,608,602 **
**500**
**1,000**
**0**|
## **Investments held at 31 July 2023 comprise the following:**
|**Investments held at 31 July 2023 comprise the following:**||
|---|---|
|Current Asset Investments - to be utilised within 12 months
Fixed Asset Investments - to be held for at least 12 months|**2023**
**2022**
**£**
**£**
215,000
215,000
1,395,102
1,683,045|
||**1,610,102 **
**1,898,045**|
Investments are split between current and fixed asset investments to accurately reflect the periods for which the investment is made. Current investments reflect 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.
## **16 Debtors**
|Trade Debtors
Project Debtors
Accrued Income
Prepayments|**2023**
**2022**
**£**
**£**
17,931
13,063
3,000
-
9,171
19,887
11,457
13,596|
|---|---|
||**41,559**
**46,546**|
## **17 Stock**
|Opening stock
Stock write down
**Total Stock**|**£**
1,941
(272)|
|---|---|
||**1,669**|
40
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **18 Creditors**
|Trade Creditors
Project Creditors
Accruals
Taxation and Social Security
Other Deferred Income (note 19)
Other Creditors
VAT|**2023**
**2022**
**£**
**£**
20,185
16,414
16,636
36,336
21,993
26,715
10,799
9,223
15,991
6,536
26,365
2,816
2,806
495|
|---|---|
||**114,775**
**98,535**|
## **19 Deferred income**
|**eferred income**||
|---|---|
|Project Creditors
Core Funding
Workshops
Study Visits
Membership Subscriptions|**2023**
**2022**
**£**
**£**
16,636
36,336
1,875
1,875
1,238
1,031
9,928
-
2,950
3,630|
||**32,627**
**42,872**|
## **Reconciliation of deferred income**
|**econciliation of deferred income**||
|---|---|
|Balance at 1 Aug 2022
Amount Released from Previous Years
Amount Deferred in Current Year
Balance at 31 July 2023|**£**
42,872
(26,236)
15,991|
||**32,627**|
## **20 Operating lease commitments**
|**Operating lease commitments**|||
|---|---|---|
|Land and Buildings
Not Later than One Year
Later than One Year and Not Later than Five Years|**2023**
**£**
6,405|**2022**
**£**
9,157|
||-|801|
||**6,405**|
**9,958**|
Payment under operating leases within the year amounted to:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Land and Buildings|9,157|15,362|
41
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **21 Charitable funds**
|**2023**
**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
Youth Co-operative Action Lowestoft - Central England
Co-operative Society
Co-operative and Youth People project - DGRV
IRU Ambassador Training
Rochdale Creative People and Places Programme
Co-operatives UK - International Funding
**Unrestricted Funds:**
Revenue Reserves
**Total Charitable Funds**|**Balance at 1**
**August 2022**
**Income**
**Expenditure**
**Investment**
**Gains/(Losses)**
**Transfers**
**Between**
**Funds**
**Balance at**
**31 July 2023**
**£**
**£**
**£**
**£**
**£**
**£**
636,817
-
(2,001)
(482)
(319,793)
314,541|
|---|---|
||**636,817**
**0**
**(2,001)**
**(482)**
**(319,793)**
**314,541**|
||30,379
549
(197)
(47)
-
30,684
932,205
16,630
(18,642)
(1,437)
-
928,756
188
3
(1)
-
-
190
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16,016
-
(16,016)
-
-
-
13,062
131,508
(52,845)
(142)
-
91,583
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500
(1,500)
-
-
-
-
-
-
-
-
-
26,277
34,160
(32,020)
(43)
-
28,374
-
18,200
(18,200)
-
-
-
-
13,198
(13,198)
-
-
-
-
14,500
(14,500)
-
-
-
-
3,560
(3,560)
-
-
-
-
36,000
(36,000)
-
-
-|
||**1,018,127**
**269,808**
**(206,679)**
**(1,669)**
**0**
**1,079,587**|
||**235,000**
**144,615**
**(468,843)**
**4,435**
**319,793**
**235,000**|
||**1,889,944**
**414,423**
**(677,523)**
**2,284 **
**0**
**1,629,128**|
Transfers between funds of £319,793 took place to maintain unrestricted reserves at agreed minimum levels.
42
## **Notes to the Financial Statements for the Year Ended 31 July 2023**
|**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 2022**
**Income**
**Expenditure**
**Investment**
**Losses**
**Transfers**
**Between**
**Funds**
**Balance at**
**31 July 2023**
**£**
**£**
**£**
**£**
**£**
**£**
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 £402,388 took place to maintain unrestricted reserves at agreed minimum levels.
## **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.
43
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **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 that 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 Lowestoft. Delivery of this project began in Autumn 2022 and is expected to be completed by Spring 2024.
## **Central England Fairtrade and International Development Project - Malawi**
Two grants have been awarded by Central England Co-operative Society in regard 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' five-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 two-year extension.
Sufficient resources are held in an appropriate form to enable the funds to be applied in accordance with any restrictions imposed.
## **Analysis of net assets between funds**
|**2023**
Tangible Assets
Fixed Asset Investments
Current Assets
Current Liabilities
**2022**
Tangible Assets
Fixed Asset Investments
Current Assets
Current Liabilities|**Unrestricted**
**Funds**
**Restricted Funds**
**Endowment**
**Funds**
**Total**
**£**
**£**
**£**
**£**
1,828
-
-
1,828
18,156
1,062,405
314,541
1,395,102
324,833
22,140
-
346,973
(109,817)
(4,958)
-
(114,775)|
|---|---|
||**235,000**
**1,079,587 **
**314,541**
**1,629,128**|
||**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**|
44
**Notes to the Financial Statements for the Year Ended 31 July 2023**
## **22 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**|**2023**
**2022**
**£**
**£**
**(260,816)**
**(541,311)**
2,612
5,376
-
-
92
-
(2,284)
168,148
10,433
13,270
(30,904)
(24,921)
272
527
4,987
27,862
16,240
(75,930)|
|---|---|
||**(259,368)**
**(426,979)**|
## **23 Analysis of changes in net debt**
|Cash at Bank and In Hand
**Total Cash and Cash Equivalents**|**Balance at 1**
**August 2022**
**Cash flows**
**Balance at 31**
**July 2023**
**£**
**£**
**£**
36,665
52,080
88,745|
|---|---|
||**36,665**
**52,080**
**88,745**|
## **24 Contingent liabilities and capital commitments**
The College has no contingent liabilities or capital commitments as at the balance sheet date.
## **25 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 £60 (2021/22 - £4,791) and £645 (2021/22 - £195) were receivable from and payable to the Co-operative Heritage Trust for the 12-month period. At 31 July 2023 the balance owed to the College was £nil (2022: £nil) and the balance payable to the Co-operative Heritage Trust was £nil (2022: £nil).
Transactions with Trustees are detailed in note 12.
45