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2022-07-31-accounts

33

REGISTERED COMPANY NUMBER: 08800142 (England and Wales) REGISTERED CHARITY NUMBER: 1176550

Report of the Trustees and

Financial Statements

for the Year Ended 31 July 2022

for

New Model Institute for Technology and Engineering

NMITE Blackfriars Street Hereford England HR4 9HS

New Model Institute for Technology and Engineering

Contents of the Financial Statements for the Year Ended 31 July 2022

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Statement of Corporate Governance and Internal Control 6 to 7
Statement of Responsibilities of the Trustees 8
Report of the Independent Auditors 9 to 12
Statement of Comprehensive Income 13
Statement of Financial Position 14
Statement of Changes in Reserves 15
Statement of Cash Flows 16
Statement of Principal Accounting Policies 17 to 22
Notes to the Financial Statements 23 to 32

New Model Institute for Technology and Engineering

Reference and Administrative Details

For the Year Ended 31 July 2022

(Continued)

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 08800142 (England and Wales)

Registered Charity number

1176550

Registered office

NMITE Blackfriars Street Hereford England HR4 9HS

Trustees

Mr I M Falconer (resigned 16 September 2021) Ms K S Usher (resigned 20 September 2021) Mr P Scott (resigned 20 September 2021) Mr J Gorringe Ms R D Innocent (resigned 30 June 2022) Mr R Lindsay-Davies (resigned 23 November 2021) Mr M J Hitchin (Vice Chair) Mr T Jagger (Chair) Miss A Clark (appointed 20 September 2021) Dr W Finlay (appointed 20 September 2021) Mr S Heidari-Robinson (appointed 20 September 2021, resigned 22 November 2021) Mr M Leppard (appointed 20 September 2021) Prof. E Rodriguez-Falcon (appointed 20 September 2021, resigned September 2022) Dr M Shah (appointed 20 September 2021, resigned 10 April 2022) Prof. N Lieven (appointed 23 November 2021) Mr S Whitby (appointed 15 March 2022)

Company Secretary

S Lewis

Auditors

Bishop Fleming LLP

Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN

Advisers Bankers

HSBC Bank plc 35 High St Hereford HR1 2AQ

Key Management personnel:

Chief Executive Officer Chief of External Engagement Chief Academic Officer Chief Operating Officer Finance Director

Prof Elena Rodriguez- Falcon Prof David Langley Prof Beverley Gibbs Mr James Newby Mrs Terri Stevenson

1

New Model Institute for Technology and Engineering

Report of the Trustees

For the Year Ended 31 July 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2022. The trustees have adopted the provisions of Accounting and Reporting by Higher Education: Statement of Recommended Practice applicable to institutions preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and activities

NMITE exists to address the UK's shortage of work-ready graduate engineers and focuses on an integrated approach to engineering that trains and nurtures learners with meaningful skills and capabilities as well as knowledge. NMITE graduates will be ready to add economic, environmental and social value to a range of community and global challenges. Through their studies they work with a variety of stakeholders including industrial engineers, community groups, business owners and people with specific healthcare requirements, and they learn to scope, create and validate solution designs to a range of real challenges. NMITE believes that engineering is an exciting and varied career path which should be freely open to young people from all parts of society. NMITE’s students will learn what engineers do, how they can have a positive impact on quality of life, the environment and industry.

To attract students from a variety of backgrounds, at differing stages of life, and different educational and experiential backgrounds, NMITE will consider every application individually and irrespective of the path prospective students have travelled to get where they are today. Engineers-in-training will experience NMITE's "learning by doing" with regular reallife projects and no lectures or traditional exams; unlike other engineering institutions they will not be required to have a Maths or Physics A-level as these subjects will be taught within the curriculum. NMITE is looking for entrepreneurial and socially-minded individuals who want to change the world for the better, and all experience is valuable. As part of the admissions process, NMITE evaluates a person's attitude, team-working skills, and mind-set and passion for designing engineering solutions to today’s problems as well as their qualifications.

Public benefit and charitable objects

All our charitable activities are undertaken to further our charitable purposes for the public benefit. These are:

ACHIEVEMENT AND PERFORMANCE

The previous year to July 2021 focused on recruiting the first cohorts following the disruption of the Covid pandemic. NMITE successfully completed all the necessary regulatory processes necessary to launch the institute and recruit students. The institute secured full registration with the primary HE regulator, the Office for Students, and is now included in its list of approved providers. Its flagship engineering programme continues to be validated by the Open University but the process of applying for New Degree Awarding Powers from the Office for Students was started in early 2022. The outcome of this process will be confirmed in early 2023.

NMITE welcomed two intakes of students during the 2021/22 year including its Pioneer Cohort in September 2021 and another smaller cohort in January 2022. The student population continues to build with another intake joining after the year under review in September 2022.

2

New Model Institute for Technology and Engineering

Report of the Trustees

For the Year Ended 31 July 2022

(Continued)

Estates and Infrastructure

NMITE continued to provide the facilities needed to ensure an excellent experience for its students. Including the technical infrastructure to support its learners and staff. New systems were installed, tested and brought into service to manage and secure student records, support student and staff working and to equip the learning studios with cutting-edge audiovisual support.

Its main city centre site, the Blackfriars campus, is in full operational use as a learning and administration hub. The learning and teaching building is equipped with a range of teaching and pilot scale equipment that underpins NMITE’s studio pedagogy and the ability to relate theoretical concepts, practical demonstration and applied challenge work in a dedicated studio space. A well-equipped factory space gives learners the opportunity to use a wide range of engineering operations with a range of materials.

The development of this site was financed by grants awarded by the Marches LEP who have continued to play an active role in supporting NMITE.

New advanced centres

Future facilities for learning and industry partnerships will be enabled by the development of NMITE’s new advanced centres, the Centre for Advanced Timber Technology (CATT), and the Centre for Automated Manufacturing. Both centres are housed in a new purpose-built facility on NMITE Skylon Campus which was completed in September 2022.

The building has achieved the highest level of attainment in the Enterprise Zone’s “three apples” sustainability scheme with an emphasis on a fabric first approach (low thermal conductivity, reduced cold bridging and airtightness) in a hybrid structure that utilises advanced low carbon timber technologies where possible, incorporating renewable options and energy saving measures to ensure a reduced carbon footprint. NMITE’s aim is that the building acts as an exemplar in the region by aspiring to net zero carbon targets aligned with UKRI’s Industrial Decarbonisation Strategy. CATT has an educational and knowledge transfer strategy with explicit industrial support, and is now fully operational.

This building is also home to the Centre for Automated Manufacturing, a project aimed at amplifying innovative automation technologies for enhanced productivity for regional manufacturers. An industrial steering group has been established to follow on from last year’s roundtable consultations, and work continues to nurture and co-ordinate a group of local employers who will collaborate on the development of the centre.

Fundraising

NMITE’s mission continues to inspire donors and partners to support us. Substantial grants were secured during the year which increases the impact the institution can deliver and strengthens its partnerships with local institutions, engineering employers, and a range of other institutions.

Notable grants received include the Stronger Towns award to the City of Hereford. The grant aims to advance the government’s “Levelling Up” agenda by investing in the development of towns to stimulate economic regeneration and enhance the lives of residents. NMITE played a leading role in the bid and was successful in securing grants for two projects which will advance its mission to enhance the skills of people of all ages and to remove the barriers that prevent local people from accessing further and higher education or from advancing their careers because of skills gaps.

3

New Model Institute for Technology and Engineering

Report of the Trustees

For the Year Ended 31 July 2022

(Continued)

Academic Development

NMITE welcomed student cohorts to the unique MEng Integrated Engineering (accelerated) in September 2021 and January 2022. Students have settled in well, are making a vibrant contribution to the institution, and the NMITE pedagogy is now tested in earnest after an extended period of planning and preparation. Whilst there was a COVID outbreak amongst students in September 2021, they were able to continue learning at home through remote synchronous/asynchronous means and equipment packs delivered to student accommodation, and assessments were not disrupted.

The academic and support teams have completed a considerable amount of work over the year to prepare for a transition from being a single programme to a portfolio institution. This work has been in four main strands:

Over the year, NMITE's impact was realised locally, nationally, and globally. Highlights include:

FINANCIAL REVIEW

Financial Position

NMITE shows an operating surplus for the year end 31 July 2022 of £1.03m (2021 deficit £1.42m). The funding provided by the Department of Education in the form of restricted capital and revenue grants have been fully utilised or committed. The financial support agreed with the DfE resulted in loan funding to provide working capital support with tranches received in February 2022 and a further tranche of £3m confirmed for receipt in the following financial year in January 2023. Further restricted donations and grants in year totalling £1.4m were received and in addition a capital grant of £5.15m from the Marches Local Enterprise Partnership for the construction of the Centre for Advanced Timber Technology (CATT) and Centre for Automated Manufacturing (CAM). The construction of the building is underway and is due for completion in September 2022. The new building and centres will provide education and training in specialist areas of engineering.

NMITE also secured income of £84k as part of the Governments ‘Kickstart’ initiative which focuses on employment and employability for 18–25year-olds. A new contract was awarded from the European Social Fund to support outreach which secured income of £260k and will continue until December 2023.

The balance carried forward at the year-end for all unrestricted funds was £6.56m (2021: £5.36m).

Under HE SORP it is not permissible to defer revenue grant income from government or other funders unless there is a specific performance requirement. Both the Department for Education and the Garfield Weston grants do not have this formal requirement but are deemed to cover future periods of expenditure beyond 31 July 2022.

4

New Model Institute for Technology and Engineering

Report of the Trustees For the Year Ended 31 July 2022 (Continued)

Investment policy and investments

NMITE currently does not have an investment policy, but this will be developed by the trustees to ensure the safe and effective use of funds in due course.

Reserves policy

NMITE has unrestricted reserves valued at £6.56m (2021: £5.36m), this includes cash reserves and funds spent on capital assets. Other reserves held are restricted and capital funds that are not available for general use. See notes to the financial statements 14 and 15 for further information.

Impact of Covid-19

Before NMITE was able to obtain its validation and registration, the UK entered its first national lockdown in March 2020. This delayed the processes with the Open University and Office for Students and consequently NMITE was not able to recruit its first cohort for September 2020 as planned.

Validation and registration were secured in Aug-20 and Nov-20 respectively. Allowing a Pioneer Cohort to start their programme in September 2021. This delay in launching adversely affected NMITE’s financial position significantly with the following key impacts arising:

Going Concern

The Institution continues to receive financial support from the Department for Education which ensures that sufficient working capital is available to continue operations until NMITE can generate surpluses from its own activities. Based on these factors, the trustees believe it is appropriate to prepare the financial statements on a going concern basis.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The New Model Institute for Technology and Engineering (NMITE) was incorporated as a private company limited by guarantee without share capital on 3 December 2013 and registered as a charity with the Charity Commission on 5 January 2018. NMITE is self-governing and legally independent but regulated as a public body.

NMITE is governed by its Articles of Association.

NMITE has adopted the Committee of University Chairs' Higher Education Code of Governance and is subject to the Office for Students' Regulatory Framework.

The Board of Trustees and its Committees

The Board of Trustees, which had 9 members at the end of 2021-22, administers the charity and meets bi-monthly. There are sub committees covering matters including Finance and Resources, Property and Infrastructure, Audit and Risk, Nominations and Remuneration. Sub committees normally meet bi-monthly and The Audit and Risk Committee normally meets quarterly.

The Board is NMITE's supreme governing body, responsible for setting its strategic direction and policies, and for NMITE's finances and assets. The Academic Council is the highest academic body, reporting to the Board of Trustees and responsible for NMITE's academic policies and for regulating academic work and standards.

5

New Model Institute for Technology and Engineering

Report of the Trustees For the Year Ended 31 July 2022 (Continued)

Recruitment and appointment of new trustees

During the year under review, the following changes to the Board of Trustees took place:

The Nominations Committee defines the make-up of the Board and its committees, balancing age, availability, gender, professional expertise, and public and private sector industry experience to deliver a rounded leadership to NMITE.

The committee, in seeking to fill places on the Board and any committee, publishes a job and person specification and invites applicants to complete an application form for appointment and the Company Secretary is responsible for managing declarations of interests and fit and proper declarations.

The following changes to the Board took place after the period covered by this review:

Induction and training of new trustees

Trustees are provided with structured induction training to familiarise them with NMITE’s mission and the various operational workstreams which advance it. They are also provided with the Charities Commission Guide 'The Essential Trustee" and are recipients of governance sector bulletins through NMITE's associate membership of Advance HE and professional advice through NMITE's auditors and legal counsel.

Trustees have undertaken training in PREVENT/ Safeguarding and GDPR; and on the Board responsibilities as a Regulated Body under the OfS.

The Executive

A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations the Chief Executive Officer has delegated authority for operational matters such as finance, employment, and academic programme activities.

The Chief Executive Officer is the Accountable Officer for OfS purposes.

Key management remuneration

The Trustees review the pay and remuneration of key management staff annually and normally increase pay levels in accordance with average earnings which have been benchmarked in the sector. Senior staff, including the CEO, play no part in these decisions.

Related parties

NMITE is validated by the Open University who therefore exert considerable influence over NMITE’s academic quality and assurance matters.

6

New Model Institute for Technology and Engineering

Report of the Trustees For the Year Ended 31 July 2022 (Continued)

Risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Audit and Risk Committee oversees the Corporate Risk Register, which is updated on a bi-monthly basis. Where appropriate, systems or procedures have been established to mitigate the risks that NMITE faces, including external risks to funding. Internal control disks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, and visitors to NMITE locations.

Statement of Internal Control

The Board has responsibility for maintaining a sound system of internal control that supports the achievement of the Institution’s objectives whilst maintaining adherence to its policies and operating procedures. The controls also ensure compliance with the Office for Students conditions of registration and all charity regulation requirements.

The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively, and economically. It is designed to manage rather than eliminate risks can therefore only provide reasonable and not absolute assurance of effectiveness against material losses.

An institutional Risk Register is maintained, which is presented at every meeting of the Audit and Risk Committee and to the Board of Trustees. Individual risk registers are maintained for all major organisational projects and all significant building projects

The Board’s oversight of the effectiveness of the system of internal controls is informed directly by the work of the Internal Auditors and the Institution’s senior management team. The SLT maintains a system of internal committees to ensure that policy creation and approval is consistent and transparent and to ensure that all activities are aligned to organisational strategy. Feedback is also provided by the External Auditors in their management letter and in other reports to the Audit Committee. The Internal Audit Strategy, approved by the Audit Committee, sets out priorities for the coming year based on institutional developments and risks and a wider view of the HE sector.

The Board of Trustees has approved a “governance handbook” which includes schedules of delegation which are reviewed from time to time. The Schedule includes the key responsibilities of the Executive relating to the operation of the internal control environment. The Board of Trustees receives a report from the President and Chief Executive at each meeting concerning the operation of the Institution and emerging risks and opportunities affecting it.

Volunteers and Donors

The Board of Trustees would like to pay tribute to volunteers and donors who give generously of their time and support in support of the work of NMITE.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of New Model Institute for Technology and Engineering for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

7

New Model Institute for Technology and Engineering

Report of the Trustees

For the Year Ended 31 July 2022 (Continued)

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website.

AUDITORS

NMITE shall tender for the external audit service in line with its policy.

Approved by order of the board of trustees on 13[th] February 2023 and signed on its behalf by:

..................................................... Mr T Jagger – Chair of Trustees

8

New Model Institute for Technology and Engineering

Independent auditors’ report to the Board of Trustees of New Model Institute for Technology and Engineering Year Ended 31 July 2022

Opinion

We have audited the financial statements of New Model Institute for Technology and Engineering (the ‘Institute’) for the year ended 31 July 2022 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. 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), the Statement of Recommended Practice: Accounting for Further and Higher Education (the ‘FE HE SORP’) and the Office for Students Accounts Direction (OfS 2019.41).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Institute 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.

Conclusion relating to going concern

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

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

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

Other information

The other information comprises the information included in the Report of Trustees, Statement of Governance and Internal Control and Statement on Responsibilities of Trustee for the Year Ended 31 July 2022, other than the financial statements and our auditor’s report thereon. The Board of Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

9

New Model Institute for Technology and Engineering

Independent auditors’ report to the Board of Trustees of New Model Institure for Technology and Engineering Year Ended 31 July 2022

(Continued)

Opinions on matters prescribed by the Companies Act 2006

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

Opinion on other matters prescribed by the Office for Students’ Accounts Direction (OfS 2019.41)

In our opinion:

We have nothing to report in respect of the following matters in relation to which the Office for Students’ Accounts Direction requires us to report to you if, in our opinion:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the University and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of Trustees, Statement of Governance and Internal Control and Statement on Responsibilities of Trustees.

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

Responsibilities of the Board of Trustees

As explained more fully in the Statement of Responsibilities of the Board of Trustees set out on page X, 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 determines 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 Board of Trustees is responsible for assessing the Institute’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 Board of Trustees either intend to liquidate the Institute or to cease operations, or have no realistic alternative but to do so.

10

New Model Institute for Technology and Engineering

Independent auditors’ report to the Board of Trustees of New Model Institute for Technology and Engineering Year Ended 31 July 2022

(Continued)

Auditor’s responsibilities for the audit of the financial statements

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

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the Institute for fraud, which included incorrect recognition of revenue and management override of controls using manual journal entries and these were identified as having the greatest potential for fraud.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Institute operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Office for Students’ Accounts Direction (OfS 2019.41) and the FE HE SORP.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Institute’s ability to operate or to avoid a material penalty. These included safeguarding regulations, data protection regulations, occupational health and safety regulations, education and inspections legislation, and employment legislation.

Our procedures to respond to risks identified included the following:

11

New Model Institute for Technology and Engineering

Independent auditors’ report to the Board of Trustees of New Model Institute for Technology and Engineering Year Ended 31 July 2022

(Continued)

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 non-compliance 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 website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Institute’s Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Institute’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 Institute’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nathan Coughlin FCA (Senior Statutory Auditor) For and on behalf of Bishop Fleming LLP Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN

Date: 21 February 2023

12

New Model Institute for Technology and Engineering

Statement of Comprehensive Income Year Ended 31 July 2022

Notes
Income
Tuition fees and education contracts
1
Funding body grants
2
Other income
3
Donations and endowments
4
Total income
Expenditure
Staff costs
5
Restructuring costs
5
Other operating expenses
Depreciation and amortisation
9
Interest and other finance costs
6
Total expenditure
Surplus/(deficit) before other gains/(losses)
Gain/(loss) on disposal of tangible assets
Surplus / (Deficit) before tax
Taxation
8
Surplus / (Deficit) for the year
Total comprehensive income for the year
Represented by:
Restricted comprehensive income for the year
Unrestricted comprehensive income for the year		 Year ended
31 July 2022
£'000
120
892
5,279
2,844
9,135
2,878
171
4,495
499
65
8,108
1,027
-
1,027
-
1,027
1,027
(175)
1,202
1,027		 Year ended 31
July 2021
£'000
-
89
2,407
3,067
5,563
2,968
39
3,809
110
32
6,958
(1,395)
(26)
(1,421)
-
(1,421)
(1,421)
(2,219)
798
(1,421)

All items of income and expenditure relate to continuing activities.

The accompanying notes and policies on pages 17 to 32 form part of these financial statements.

13

New Model Institute for Technology and Engineering

Statement of Financial Position

Year Ended 31 July 2022

Notes
Non-current assets
Tangible assets
9
Current assets
Trade and other receivables
10
Cash and cash equivalents
16
Less: Creditors;
amounts falling due within one year
11
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
12
Total net assets
Restricted Reserves
Capital reserve
14
Income and expenditure reserve
14
Unrestricted Reserves
Income and expenditure reserve
15
Non-controlling interest
Total Reserves		 As at 31 July
2022
£'000
11,765
751
2,716
3,467
(1,742)
1,725
13,490
(4,344)
9,146
506
2,079
6,561
9,146
9,146		 As at 31 July
2021
£'000
6,787
243
1,449
1,692
(360)
1,332
8,119
-
8,119
506
2,254
5,359
8,119
-
8,119

The financial statements were approved by the Governing Body on 13[th] February 2023 and were signed on its behalf on that date by:

The accompanying notes and policies on pages 17 to 32 form part of these financial statements.

14

New Model Institute for Technology and Engineering

Statement of Changes in Reserves Year Ended 31 July 2022

Balance at 1 August 2020
Surplus/(deficit) for the year
Transfer between funds
Total comprehensive income for the year
Balance at 1 August 2021
Surplus/(deficit) for the year
Transfer between funds
Total comprehensive income for the year
Balance at 31 July 2022		 Income and expenditure reserve
Restricted
Unrestricted
£'000
£'000
4,979
4,561
(226)
(1,195)
(1,993)
1,993
(2,219)
798
2,760
5,359
5,061
(4,034)
(5,236)
5,236
(175)
1,202
2,585
6,561		 Total
£'000
9,540
(1,421)
-
(1,421)
8,119
1,027
-
1,027
9,146

15

New Model Institute for Technology and Engineering

Statement of Cash Flows

Year Ended 31 July 2022

Notes
Cash flow from operating activities
Surplus for the year before tax
Adjustment for non-cash items
Depreciation
9
Decrease/(increase) in debtors
10
Increase/(decrease) in creditors
11
Adjustment for investing or financing activities
Interest payable
6
(Gain)/loss on the sale of tangible assets
9
Capital grant income
3
Cash flows from operating activities
Taxation
Net cash inflow from operating activities
Cash flows from investing activities
Proceeds from sales of tangible assets
Capital grants receipts
3
Payments made to acquire tangible assets
9
Cash flows from financing activities
Interest paid
6
New secured loans
Repayments of amounts borrowed
12
(Decrease)/increase in cash and cash equivalents in the
year
Cash and cash equivalents at beginning of the year
16
Cash and cash equivalents at end of the year
16		 Year
ended 31
July 2022
£'000
1,027
499
(508)
1,382
65
-
(5,150)
(2,685)
-
(2,685)
5,150
(5,477)
(327)
(65)
4,344
-
4,279
1,267
1,449		 Year
ended 31
July 2021
£'000
(1,421)
110
211
29
32
26
(2,279)
(3,292)
-
(3,292)
-
2,279
(2,319)
(40)
(32)
-
(200)
(232)
(3,564)
5,013
2,716 1,449

16

New Model Institute for Technology and Engineering

Statement of Principal Accounting Policies Year Ended 31 July 2022

1 General information

The Institution of New Model Institute for Technology and Engineering is registered with the Office for Students in England and is a registered Company and Charity. The address of the registered office is NMITE, Blackfriars Street, Hereford, England, HR4 9HS.

2 Statement of compliance

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education (2019 edition). They have also been prepared in accordance with the ‘carried forward’ powers and duties of previous legislation (Further and Higher Education Act 1992 and the Higher Education Act 2004), the Royal Charter, the Accounts Direction issued by the Office for Students (OfS), the terms and conditions of funding for higher education students (OfS), the terms and conditions of funding for higher education institutions issued by the Office for Students and the terms and conditions of Research England Grant. The entity previously followed a charity SORP up until the registration with OfS, there has been no change on income and surpluses previously reported.

The Institution is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards.

3 Basis of preparation

The Institution's activities, together with the factors likely to affect its future development, performance and position, are set out in the operational and financial review which forms part of the Board of Governors’ Report. The Board of Governors’ Report also describes the financial position of the Institution, its cash flows, liquidity position and borrowing facilities.

The financial statements are prepared in sterling which is the functional currency and rounded to the nearest £’000.

4 Going Concern

The activities of the institute, together with the factors likely to affect its future development and performance are set out in the Members Report. The financial position of the institute, its cash flow, liquidity, and borrowings are presented in the Financial Statements and accompanying notes.

The financial statements have been prepared on a going concern basis. The Trustees have considered the level of reserves held and the expected level of income and expenditure for 12 months from authorising these financial statements.

Detailed reviews of the insitution’s financial position have been undertaken and remain ongoing and these have led to a number of post-year interventions.

The Institution continues to receive financial support from the Department for Education which ensures that sufficient working capital is available to continue operations until NMITE can generate surpluses from its own activities. Based on these factors, the trustees believe it is appropriate to prepare the financial statements on a going concern basis.

17

New Model Institute for Technology and Engineering

Statement of Principal Accounting Policies Year Ended 31 July 2022 (Continued)

5 Income recognition

Income from the sale of goods or services is credited to the Statement of Comprehensive Income when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.

Tuition fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income over the period in which students are studying. Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income. Education contracts are recognised when the Institution is entitled to the income, which is period in which students are studying, or where relevant, when performance conditions have been met.

Grant funding

NMITE has adopted the performance model for government revenue grants.

Grant funding including research grants from government sources, grants (including research grants) from nongovernment sources are recognised as income when the Institution is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors in the Statement of Financial Position and released to income as the conditions are met.

Donations

Non-exchange transactions without performance related conditions are donations. Donations with donor imposed restrictions are recognised in income when the Institution is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released.

Donations with no restrictions are recognised in income when the Institution is entitled to the funds.

Donations of tangible assets are included within income. The income recognised is valued using a reasonable estimate of their gross value or the amount actually realised. Donated tangible assets are valued and accounted for as tangible assets under the appropriate asset category.

Donated goods and professional services are recognised as income when the institution has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit for use by the institution of the item is probable and that economic benefit can be measured reliably.

Capital grants

The Institution has adopted the performance model for government capital grants.

Capital grants are recognised in income when the Institution is entitled to the funds subject to any performance related conditions being met.

Investment Income

Investment income is credited to the statement of income and expenditure on a receivable basis and as either restricted or unrestricted income according to the terms or other restriction applied to the individual fund.

18

New Model Institute for Technology and Engineering

Statement of Principal Accounting Policies Year Ended 31 July 2022 (Continued)

6 Accounting for retirement benefits

Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement in the periods during which services are rendered by employees.

7 Employment benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the Institution. Any unused benefits are accrued and measured as the additional amount the Institution expects to pay as a result of the unused entitlement.

8 Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the lease term.

9 Property, plant and equipment

Land and buildings

Land and buildings are capitalised at cost on initial recognition.

After initial recognition land and buildings are subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Costs incurred in relation to land and buildings after initial purchase or construction, are capitalised to the extent that they increase the expected future benefits to the Institution.

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight line basis over their expected useful lives as follows:

Leasehold Land and Buildings 50 - 99 years

Where lease is less than 50 years, the asset should be depreciated over the length of the lease.

Where an item of land and buildings comprise two or more major components with substantially different useful economic lives (UELs), each component is accounted for separately and depreciated over its individual UEL. Expenditure relating to subsequent replacement of components is capitalised as incurred.

No depreciation is charged on assets in the course of construction. On completion the assets are assessed and any projects not going ahead are released to the Statement of Other Comprehensive Income.

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Statement of Financial Position.

19

New Model Institute for Technology and Engineering

Statement of Principal Accounting Policies Year Ended 31 July 2022 (Continued)

9 Property, plant and equipment (continued)

Equipment

Equipment is capitalised at cost on initial recognition and then subsequently at cost less accumulated depreciation and accumulated impairment losses.

Equipment, including computers and software, costing less than £1,000 per individual item is recognised as expenditure. All other equipment is capitalised.

Capitalised equipment is stated at cost and depreciated over its expected useful life as follows:

Computer Equipment 25% reducing balance Fixtures and fittings Straight line over 5 years

Where an item of equipment comprises two or more major components with substantially different UELs, each component is accounted for separately and depreciated over its individual UEL. Expenditure relating to subsequent replacement of components is capitalised as incurred.

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Statement of Financial Position.

Impairment

A review for impairment of property, plant and equipment is carried out if events or changes in circumstances indicate that the carrying amount of the property, plant and equipment may not be recoverable.

10 Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Cash equivalents are short term (maturity being less than three months from the placement date), highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

11 Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

(a) the Institution has a present obligation (legal or constructive) as a result of a past event;

(b) it is probable that an outflow of economic benefits will be required to settle the obligation; and

(c) a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

A contingent liability arises from a past event that gives the Institution a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Institution. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the Institution a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Institution. Contingent assets and liabilities are not recognised in the Statement of Financial Position but are disclosed in the notes.

20

New Model Institute for Technology and Engineering

Statement of Principal Accounting Policies Year Ended 31 July 2022 (Continued)

12 Taxation

The Institution is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity within the meaning of Para 1 of schedule 6 to the Finance Act 2010 and accordingly, the Institution is potentially exempt from UK Corporation Tax in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

The Institution receives no similar exemption in respect of Value Added Tax (VAT). Irrecoverable VAT on expenditure (revenue and capital) is included in the costs of such expenditure. Any irrecoverable VAT allocated to fixed assets is included in their cost.

13 Financial instruments

The Institution has elected to adopt Sections 11 and 12 of FRS 102 in respect of the recognition, measurement, and disclosure of financial instruments. Financial assets and liabilities are recognised when the Institution becomes party to the contractual provision of the instrument and they are classified according to the substance of the contractual arrangements entered into.

A financial asset and a financial liability are offset only when there is a legally enforceable right to set off the recognised amounts and an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Basic financial assets include trade and other receivables, cash and cash equivalent. These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rate method. Financial assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the statement of comprehensive income.

Financial assets are de ‑ recognised when the contractual rights to the cash flows from the asset expire or are settled or substantially all of the risks and rewards of the ownership of the asset are transferred to another party.

Financial liabilities

Basic financial liabilities include trade and other payables and bank loans. These liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or ‑ less. If not, they are presented as non current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

Financial liabilities are de ‑ recognised when the liability is discharged, cancelled, or expires.

21

New Model Institute for Technology and Engineering

Statement of Principal Accounting Policies Year Ended 31 July 2022 (Continued)

14 Reserves

Reserves are classified as restricted or unrestricted. Restricted funds included in the financial statements are:

15 Critical Accounting estimates and judgements

The preparation of the Institution's financial statements requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income, and expenses. These judgements, estimates, and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Critical judgements and assumptions

Income recognition - Judgement is applied in determining the value and timing of certain income items to be recognised in the financial statements. This includes determining when performance related conditions have been met.

Impairment of assets - At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss as a result of any indications. If there is an indication of impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in surplus or deficit in the period it arises.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit in the period it arises.

Useful lives of property, plant and equipment - Property, plant and equipment represent a significant proportion of the Institution's total assets. Therefore, the estimated useful lives can have a significant impact on the depreciation charged and the Institution's reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events. Details of the carrying values of property, plant and equipment are shown in note 8.

22

New Model Institute for Technology and Engineering

Notes to the financial statements

Year Ended 31 July 2022

Year Ended 31 Year Ended 31
July 2022 July 2021
1 Tuition fees and education contracts £'000 £'000
Full-time home and EU students 120 -
120 -
Year Ended 31 Year Ended 31
July 2022 July 2021
2 Funding body grants £'000 £'000
Other Bodies
Office for Students 103 -
Specific grants
European Social Fund 260 -
Department for Work - Kickstart scheme 529 89
892 89
Note:The source of grant and fee income, included in note 2 is as follows:
Year Ended 31 Year Ended 31
July 2022 July 2021
2a Grant and Fee income £'000 £'000
Grant income from the OfS 103 -
Grant income from other bodies 789 89
Year Ended 31 Year Ended 31
July 2022 July 2021
3 Other income £'000 £'000
Other revenue grants 108 -
Other capital grants 5,150 2,279
Other income 21 128
5,279 2,407
Capital grants have been provided in the year by The Marches Local Enterprise Partnership to fund the
construction of Skylon Park campus (2021: capital improvements to Blackfriars Education and Conference Centre
which the entity is committed to a long-term lease). The grants have been fully recognised in the year, as their
conditions have been met.
Year Ended 31 Year Ended 31
July 2022 July 2021
4 Donations and endowments £'000 £'000
Donations with restrictions 1,736 3,027
Unrestricted donations 1,108 40
2,844 3,067

23

New Model Institute for Technology and Engineering

Notes to the financial statements

Year Ended 31 July 2022 (Continued)

5
Staff costs
Staff Costs:
Salaries
Social security costs
Other pension costs
Sub-total
Restructuring costs
Total
Total remuneration of the head of the institution
Basic salary
Performance-related pay and other bonuses
Sums paid under any pension scheme in relation to employment
with the Institution		 Year Ended 31
July 2022
£'000
2,371
271
236
2,878
171
3,049
Year Ended 31
July 2022
£'000
166
-
20
186		 Year Ended 31
July 2021
£'000
2,467
265
236
2,968
39
3,007
Year Ended 31
July 2021
£'000
180
-
22
202

Justification for the President/Chief Executive Officer

The Remuneration Committee has direct responsibility for determining reward and remuneration related matters for both the President/Chief Executive Officer and other members of NMITE’s Senior Leadership Team. The Remuneration Committee has confirmed continued compliance with the CUC’s Higher Education Senior Staff Remuneration Code and, accordingly, the 2020/21 Annual Reward and Remuneration Report to the Board of Governors will be published by Spring 2022.

The Remuneration Committee considers a variety of factors when deciding remuneration for NMITE’s President/CEO and Senior Leadership Team which includes comparative benchmarking data for similar sized institutions (primarily HESA, CUC and other relevant data); the national pay award for other University staff; financial sustainability; individual performance; organisational performance; internal equity and external market factors. Further details relating to the Remuneration Committee’s decisions on senior pay will be contained in their Annual Report to the Board of Governors.

In considering pay for the President/CEO and the Senior Leadership Team in October of the previous year, the Remuneration Committee considered both the individual and organisational performance against predetermined performance measures, including but not limited to:

b) the size, growth and complexity of the institution;

c) the nature of the HE markets and issues of recruitment and retention;

24

New Model Institute for Technology and Engineering

Notes to the financial statements

Year Ended 31 July 2022 (Continued)

5 Staff Costs (Continued)

The Remuneration Committee concluded that the President/CEO was performing at a high level, providing clear leadership to the University in a challenging context resulting from the wide range of external factors impacting on the HE sector. However, given the financial context within which NMITE was operating it was agreed that the President/CEO’s and the Senior Leadership Team would not receive an increase in pay for the year ending 31st July 2022, and no incremental pay rises were received other staff members.

Pay ratios

Total remuneration includes employer pension contributions/allowance in lieu of employer pension contributions and taxable benefits. Pay for part-time and hourly paid workers have been pro-rated up to the full-time equivalent.

The number of staff with a basic salary of over £100,000 per annum has been included below:

Basic salary per annum
£110,000 - £114,999
£120,000 - £124,999
£135,000 - £139,999
£165,000 - £169,999
£175,000 - £179,999
Average staff full time equivalents by major category:
Academic
Administration and central services
Premises
Other
Total number of staff
Average staff headcount by major category:
Academic
Administration and central services
Premises
Other
Total number of staff		 Year Ended
31 July 2022
No.
2
-
-
1
-
3
Year Ended
31 July 2022
No.
24
16
3
6
49
Year Ended
31 July 2022
No.
26
16
3
7
52		 Year Ended
31 July 2021
No.
-
2
1
-
1
4
Year Ended
31 July 2021
No.
16
21
3
6
46
Year Ended
31 July 2021
No.
17
21
3
6
47

25

New Model Institute for Technology and Engineering

Notes to the financial statements Year Ended 31 July 2022 (Continued)

Compensation for loss of office

NMITE paid £171,318 in compensation for loss of office for six staff members during the year. (2020: £38,750 for two staff members).

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University. Staff costs includes compensation paid to key management personnel. In the year, the key management consisted of Chief Executive Officer, Chief of External Engagement (until November 2021), Chief Academic Officer, Chief Operating Officer & Finance Director (from January 2022).

Key management personnel compensation

6
Interest and other finance costs
Loan interest
Bank charges
7
Analysis of total expenditure by activity
Academic and related expenditure
Administration and central services
Premises (including service concession cost)
Other expenses
Other operating expenses include:
Operating lease rentals
Land and buildings
Equipment and service provided (donated)
Software/licenses (donated)
Depreciation
External auditors remuneration in respect of audit services
Audit related assurance services
Other non-audit services
Total non-audit services		 £'000

656

Year Ended 31
July 2022
£'000
56
9
65
Year Ended 31
July 2022
£'000
1,597
2,242
927
3,277
8,043
16
300
3,505
499
26
-
26		 £'000
684
Year Ended 31
July 2021
£'000
29
3
32
Year Ended 31
July 2021
£'000
1,017
2,417
421
3,071
6,926
21
300
1,732
110
20
-
20

26

New Model Institute for Technology and Engineering

Notes to the financial statements Year Ended 31 July 2022 (Continued)

8 Taxation

There are no tax charges for the New Model Institute for Technology & Engineering in 2021/22 (2020/21: £Nil)

9 Tangible Assets

Property, plant and equipment

Leasehold
Buildings
£'000
Cost and valuation
At 1 August 2021
1,181
Additions
-
Reclassification
At 31 July 2022
1,181
Depreciation
At 1 August 2021
45
Charge for the year
21
At 31 July 2022
66
Carrying amount
At 31 July 2022
1,115
At 31 July 2021
1,136
10
Trade and other receivables
Amounts falling due within one year:
Other trade receivables
Accrued income
Prepayments		 Fixtures,
Fittings and
Equipment
£'000
398
8
1,833
2,239
223
447
670
1,569
175		 Improvements
to property
£'000
-
-
1,506
1,506
31
31
1,475
-
Year Ended
31 July 2022
£'000
85
549
117
751		 Assets in the
Course of
Construction
Total
£'000
£'000
5,476
7,055
5,469
5,477
(3,339)
-
7,606
12,532
-
268
-
499
-
767
7,606
11,765
5,476
6,787
Year Ended
31 July 2021
£'000
25
13
205
243		 Assets in the
Course of
Construction
Total
£'000
£'000
5,476
7,055
5,469
5,477
(3,339)
-
7,606
12,532
-
268
-
499
-
767
7,606
11,765
5,476
6,787
Year Ended
31 July 2021
£'000
25
13
205
243		 Total
£'000
7,055
5,477
-
12,532
268
499
767
11,765
6,787
243

27

New Model Institute for Technology and Engineering

Notes to the financial statements

Year Ended 31 July 2022 (Continued)

11
Creditors: amounts falling due within one
year
Trade payables
Social security and other taxation payable
Other creditors
Accruals and deferred income
Unsecured loans
12
Creditors: amounts falling due after more than one year
Secured loans
13
Loans
Analysis of secured and unsecured loans:
Due within one year or on demand
Due between two and five years
Due in five years
Due after more than one year
Total secured and unsecured loans
Unsecured loans repayable by 2023 or earlier		 Year Ended
31 July 2022
£'000
256
94
3
1,289
100
1,742
Year Ended
31 July 2022
£'000
4,344
Year Ended
31 July 2022
£'000
100
161
4,183
4,344
4,444
100		 Year Ended
31 July 2021
£’000
34
86
-
140
100
360
Year Ended
31 July 2021
£'000
-
Year Ended
31 July 2021
£'000
100
-
-
-
100
100

Council Loan:- Interest accrues at the council's weighted average interest rate at the time the amount is drawn down (3.42% per year for FY16/17) and from the date that the amount is drawn down. Interest compounds monthly until repayment. The loan is repayable in financial year 2022/23.

A charge has been registered with Companies House regarding the fixed and floating charges which secure the DFE loan issued during the year. Interest is payable at a rate of 1.98% per annum.

28

New Model Institute for Technology and

Engineering

Notes to the financial statements

Year Ended 31 July 2022 (Continued)

14 Restricted Reserves

Reserves with restrictions are as follows:

Unspent
capital
grants
Unspent
other
grants
£'000
£'000
Balances at 1 August 2020
-
3,575
New grants
2,279
89
New donations
-
-
Capital grants utilised in the year
(1,993)
-
Expenditure
-
(3,413)
Transfers between funds
220
(220)
Total restricted comprehensive income for the year
506
(3,544)
Balances at 1 August 2021
506
31
New grants
5,143
529
New donations
-
-
Capital grants utilised in the year
(5,143)
-
Expenditure
-
(560)
Transfers between funds
-
-
Total restricted comprehensive income for the year
-
(31)
At 31 July 2022
506
-
Analysis of other restricted funds /donations by type of purpose:
Scholarships and bursaries
General		 Unspent
capital
grants
Unspent
other
grants
£'000
£'000		 Donations
Total
£'000
£'000
-
3,575
2,279
89
-
-
(1,993)
-
-
(3,413)
220
(220)
1,404
4,979
-
2,368

3,027
3,027

-
(1,993)
(2,208)
(5,621)
-
-
506
(3,544)
819
(2,219)
506
31
5,143
529
-
-
(5,143)
-
-
(560)
-
-		 2,223
2,760
-
5,672
882
882
-
(5,143)
(933)
(1,493)
(93)
(93)
-
(31)		 (144)
(175)
506
-		 2,079
2,585
2022
2021
Total
Total
£'000
£'000
485
543
2,100
2,217
2,585
2,760

15 Unrestricted Reserves

Balances at 1 August 2020
Surplus/(deficit) for the year
Transfer to/from restricted funds
Total unrestricted comprehensive income for the year
Balances at 1 August 2021
Surplus/(deficit) for the year
Transfer to/from restricted funds
Total unrestricted comprehensive income for the year
At 31 July 2022		 Total
£'000
4,561
(1,195)
1,993
798
5,359
(4,034)
5,236
1,202
6,561

29

New Model Institute for Technology and Engineering

Notes to the financial statements

Year Ended 31 July 2022 (Continued)

16 Cash and cash equivalents

sh and cash equivalents
Cash and cash equivalents At 1st August
Cash
At 31st July
2021
Flows
2022
£'000
£'000
£'000
1,449
1,267
2,716
1,449
1,267
2,716

17 Financial instruments

Financial assets
Financial assets that are debt instruments
measured at amortised cost
Cash and cash equivalents
Other trade receivables
Accrued income
Financial liabilities
Financial liabilities at fair value through
Statement of Comprehensive Income
Financial liabilities measured at amortised cost
Loans
Trade creditors
Accruals		 Year Ended
31 July 2022
£'000
2,716
85
549
3,350
4,444
256
1,289
5,989		 Year Ended
31 July 2021
£'000
1,449
49
102
1,600
100
34
140
274

30

New Model Institute for Technology and Engineering

Notes to the financial statements

Year Ended 31 July 2022 (Continued)

18 Capital and other commitments

Provision has not been made for the following capital commitments at 31 July:

Capital commitments 31 July
2022
£'000
971
971		 31 July
2021
£'000
7,260
7,260

NMITE entered into a contract with The Marches Local Enterprise Partnership before the end of the 2021 financial year end regarding the construction of the Skylon Campus, the contract has a total value of £7.26 million. At 31 July 2022 there are capital commitments outstanding of a value of £971k. NMITE is due to receive £361k from The Marches Local Enterprise Partnership in respect of this contract. See below for information regarding the future of NMITE’s Skylon Park.

Future facilities for learning and industry partnerships will be enabled by the development of NMITE’s new advanced centres, the Centre for Advanced Timber Technology, and the Centre for Automated Manufacturing. Both centres will be housed in a new purpose-built facility on NMITE Skylon Campus. Construction started during the year ending 31 July 2021 with delivery to NMITE planned for mid-2022.

19 Lease obligations

Total rentals payable under operating leases:

Payable during the year
Future minimum lease payments due:
Not later than 1 year
Later than 1 year and not later than 5 years
Total lease payments due		 Land and
Buildings
£'000
16
7
-
7		 31 July 2022
IT
Equipment
£'000
49
46
30
76		 Total
£'000
65
53
30
83		 Restated
31 July
2021
£'000
34
63
83
146

NIMTE has a sub-nominations agreement in regard to Station Approach site which is based on the ability to nominate students to utilise the accommodation. NMITE is liable to pay for any unoccupied rooms during a given period, this is based on the price of £143 per room for 46 weeks of the year applicable to 89 rooms. Due to the occupancy levels being unknown, the lease commitment is unable to be reliably calculated.

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New Model Institute for Technology and Engineering

Notes to the financial statements Year Ended 31 July 2022 (Continued)

20 Related party transactions

During the year the institute entered into transactions, in the ordinary course of business, with other related parties. Transactions entered into, and balances outstanding at 31 July 2022, are as follows:

Due to the nature of the Institution's operations and the compositions of the Council, being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of Governors may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the Institution's Financial Regulations and usual procurement procedures.

No Governor has received any remuneration/waived payments from the institution during the year (2021 - none)

The total expenses paid to or on behalf of the Governors was £3,359 to 6 governors (2021 - £515 to 2 governors). This represents travel and subsistence expenses incurred in attending meetings and costs incurred on behalf of the institution.

During the year NMITE received cash donations from trustees totalling £3,764 (2021: £5,384 however £3,200 of this related to future periods therefore was included as a creditor (deferred income) at the year end).

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