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2023-07-31-accounts

RG Company Registration No. 11077904 (England and Wales)

Registered Charity No. 1180292

THE NORLAND FOUNDATION (A company limited by guarantee)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

THE NORLAND FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 11077904 (England and Wales)

Registered Charity number 1180292 (England and Wales)

Registered office

York Villa York Place London Road Bath Somerset BA1 6AE

Trustees

Mr M C Clarke (Chairman) MA FCA D.Univ FRSA Mr C P Hare Mr P H Watkins FCA Mr D A Peck MA Mr M A Bray FCMA

Senior Management of Norland College Limited

Dr J Rose MA PhD PGCE FHEA (Principal of Norland College) Mrs A Edmond MA (Vice Principal of Norland College) – Mrs E Burns MPhil FCCA (Executive Chief Financial Officer)

Auditors

RSM UK Audit LLP Chartered Accountants 2[nd] Floor 1 The Square Temple Quay Bristol BS1 6DG

Solicitors

Veale Wasbrough Vizards LLP Narrow Quay House Narrow Quay Bristol BS1 4QA

Bankers

NatWest Bank Plc Western Avenue Waterside Court Chatham Kent ME4 4RT

Investment advisers

Charles Stanley & Co. Limited 18 Queen Square Bath BA1 2HN

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

The Trustees, who are also directors of the Charitable Company (the Charity) present their annual report and audited consolidated financial statements for the year ended 31 July 2023. The Charity has one subsidiary being Norland College Limited (the College).

The financial statements comply with the requirements of the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The Trustees’ Report includes a Directors’ Report as required by company law. This report also includes the information required to be disclosed in a Strategic Report under the Companies Act 2006 and the Charities SORP.

OBJECTIVES AND AIMS

The objects of the Group and Charity, as set out in its governing documents are:

  1. the advancement of education for the public benefit, in particular (but not limited to) early years education, by (but not limited to):

  2. a. the promotion of effective education and training of student or qualified childcare and education practitioners in all aspects of early years care and the education of young children;

  3. b. the promotion of best practice in early years care and the education of young children generally;

  4. c. the provision of funding for specific projects and/or research relating to the promotion of best practice in early years care and education;

  5. the promotion of social inclusion for the public benefit in particular (but without limitation) among children of early years age and their families/carers who are socially excluded from society, or part of society, as a result of their social and economic position, in particular (but without limitation) through:

  6. a. the education of children of early years age and student or qualified childcare and education practitioners of early years education;

  7. b. the provision of funding for specific projects and/or research to promote social inclusion; and

  8. the advancement of such objects or purposes which are exclusively charitable according to the law of England and Wales for the public benefit in any part of the world and in such manner as the Trustees in their absolute discretion think fit.

The Charity also incorporates a Benevolent Fund, accounted for as a restricted reserve. This was formerly the Norland Institute Benevolent Fund (registered charity number 208818), founded in 1915 with the following stated purpose: “For the relief of povert y, sickness or distress of any persons connected with Norland College whether as a member of staff or as persons undergoing training as nannies, or those who have trained”. The ‘Norland Institute’ was the forerunner of what is now Norland College. The Charity was dissolved and its assets transferred to the Norland Foundation during the year ended 31 July 2022. Its original purpose continues.

ACTIVITIES

The Charity has continued to work closely with the College, collectively referred to as the Group.

A Deed of Undertaking between the Charity and the College remains in place to give legal reassurance that the Charity will support the College in the implementation of its Strategic Plan and to ensure the College’s compliance with the Office for Students (OfS) Framework. This includes a provision of sufficient financial support to allow the College to comply with the financial obligations imposed on it by the Framework or by the Charity directly meeting such financial obligations.

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

This incorporates supporting the College’s agreed OfS Student Protection Plan, a plan agreed by the OfS that confirms adequate provision (£1.5m) is made for students to allow them to continue and to complete their studies (or receive compensation if this is not possible) in the event that the College is unable to provide its course or has to close.

During the year it has retained and further developed its reserves to:

The Norland Foundation has funded multiple research projects in the year ended 31 July 2023 including Attachment Aware Schools in the UK and South Africa and the Norland Educare Research Journal - the world’s first research journal dedicated to advancing and enhancing the knowledge base for professional practices and policies for home-based early childhood education and care.

The Foundation has also committed to further funding for the Postgraduate Certificate in Infant-Parent Mental Health for two members of staff.

Through internships at Norland, researchers conducted a series of research projects as follows:

The charity has also continued to look outwards for opportunities to fund projects that meet its mission and values. This includes a further grant to a local First Steps charity that works with young children with special needs. The Norland Foundation has also made small grants to other charities meeting Norland’s mission including Strongbones and RSBC.

Hardship Fund

During the year ended 31 July 2023 the Norland Foundation created a Hardship Fund within the Benevolent Fund restricted reserve for students of Norland College, as a gesture of support at a time of economic challenge. Students were able to apply for a £1,000 grant each, and a total of £200,000 was disbursed. The Hardship Fund was specific to the year ended 31 July 2023 and is not expected to be repeated in future years.

PUBLIC BENEFIT

The Trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The Group was established as part of a wider restructuring of the governance arrangements in relation to the College, which has a very long and successful track record as an independent provider of specialist early years education and training. The College is registered with the OfS as an independent provider of Higher Education and has, until 2023, delivered a Bachelor of Arts (BA) Honours degree in Early Years Development and Learning (EYDL), to be replaced in the academic year commencing in 2023 by a BA Honours degree in Early Childhood Education and Care. The degree course is combined with a specialist, prestigious qualification known as the "Norland Diploma" which focuses on the practical skills associated with early years care and education. Students educated at the College go on to have successful careers all over the world, increasing the impact of the education and training they have received.

During the year, two part-time Charities and Communities Coordinators continued to oversee the wealth of charitable and community-based activities undertaken by staff and students at the College.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

THE NORLAND FOUNDATION

APPROACH TO FUNDRAISING

Over the year the charity did not undertake any formal fundraising activities. A fund-raising programme is being developed to enable the delivery of the Charity’s wider aims and objectives.

STRATEGIES & FUTURE PLANS

The Group intends to advance education by promoting best practice, effective education and training in all aspects of the care and the education of young children.

The core activity of the College remains the education and training of students wishing to become Norlanders (a fully qualified Norland Nanny). The College successfully gained Taught Degree Awarding Powers in March 2019, and remains actively working towards its application for indefinite Degree Awarding Power and then University title in 2 - 3 years’ time. The College continues to review and consider its future teaching and student accommodation needs, to ensure best provision for its students and staff, as well as developing plans to expand its consultancy and commercial income streams.

The Charity continues to carefully manage and build investment funds to acquire assets for future educational and training purposes.

ACHIEVEMENTS AND PERFORMANCE

Student intake for the current academic year (2023/24) remains healthy, with 94 first years enrolling in September 2023.

In 2022/23 62.5% of third year students who completed their degrees achieved a first class or 2:1 classification. Retention on the BA EYDL programme remains strong, with 90% of first, 99% of second and 97% of third years continuing their studies throughout 2022/23. This compares very favourably with similar courses at other institutions.

Norland was awarded top small or specialist provider in the 2023 Whatuni Student Choice awards, making the College a top two Whatuni winner for six consecutive years.

The Norland Agency enjoyed another fruitful year capitalising on the increased student numbers completing the full course and the continued positive media interest surrounding Norland.

Other important activities relate to our corporate training courses for established UK and overseas companies, Continuing Professional Development (CPD) courses for qualified Norlanders and consultancy work. During the year ended 31 July 2023, Norland entered into a significant contract with the Abu Dhabi Early Childhood Authority, to provide expert consultancy advice and support on the development of its flagship Academy for Childhood Development. The Academy will offer accredited early childhood care and education training to equip learners with the theoretical knowledge and practical skills required to provide high quality professional care for babies and young children. Drawing on Norland’s 131 years of experience at the forefront of early years educatio n and training, the Academy for Childhood Development will make the UAE a pioneer in developing the education and skills of its childcare workforce across all settings including home-based childcare.

In the year ended 31 July 2023, the contract resulted in income of £834,800 for Norland, and related costs of £504,363, representing the majority of income and costs for Phase 1 (set up) of the Academy. Phase 1 was completed in August 2023. Further support will be given to the Academy as part of Phase 2 during the year ended 31 July 2024, but this is not expected to be material to the financial statements.

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

RISK MANAGEMENT

The Group has continued to develop and embed an overarching system of internal control, including financial, operational and risk management, which is designed to protect the Group's assets and reputation.

The Charity holds a comprehensive Risk Register which also considers the risks associated with the College. The register identifies the key risks, the likelihood of those risks occurring, their potential impact on the Charity and the actions being taken to reduce and mitigate the risks. Risks are rated and prioritised using a consistent scoring system.

The Charity’s principal risks reflect mainly those of the College (as below), but in addition include:

Investments are required to build up reserves for the Student Protection Plan and to fund replacement educational buildings. To manage and protect its investments, the Trustees have appointed an experienced Investment Manager, to safeguard and enhance the value of its investment assets, via a set of benchmarks contained within an agreed Investment Policy Statement. Quarterly investment information is released to Trustees and the Investment Manager attends Trustees meetings as required to present a review and explanation of investment performance.

The College Board of Directors undertakes a comprehensive review of the risks to which the College is exposed. It identifies systems and procedures, including specific preventable actions which should mitigate the potential impact on the College. In addition to the review, the directors will also consider any risks which may arise as a result of a new area of work being undertaken by the College.

Outlined below is a description of the principal risk factors that may affect the College:

1. Affordability

The College’s fees are higher than those charged by a mainstream university, due to the fact that tuition is intensive and resource-heavy, and also because students study for both a degree and the Norland Diploma. Added to this, the government loan set for Independent Higher Education providers is lower than that set for mainstream institutions. As a result, affordability is a challenge for many potential and current students.

This risk is mitigated by continued investment in student recruitment, regular review of the bursary provision and sources of available funding for students, and support for students with managing budgets and personal finances.

2. Staff Retention

Shifts in employment patterns following the pandemic, plus pressure on household finances during a period of high inflation result in the risk that staff will leave the College for lucrative employment elsewhere.

This risk is mitigated by regular review of staff incentives such as bonus provision, benefits and flexible working.

  1. Inflation and Economic Pressures Cost increases due to inflation result in the risk of Norland being unable to deliver its services within the budget available.

This risk is mitigated by regular forecasting and review of expenditure. Additionally, commercial activity has been revived following the pandemic, with a significant contract already fulfilled and more in the pipeline, and the Norland Agency continues to exceed its revenue targets.

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

RESERVES POLICY

The reserves policy ensures the Charity:

At the year end, the Charity had total surplus unrestricted reserves of £351,095 (2022: £380,320) and total surplus unrestricted designated reserves of £2,090,000 (2022: £2,090,000).

At the balance sheet date, the Group held total general unrestricted reserves of £5,350,131 (2022: £5,450,310) with £3,931,369 (2022: £4,125,681) held in freehold property and leasehold improvements, leaving £1,418,762 (2022: £1,324,629) in other net assets. The Group held total designated unrestricted reserves of £2,090,000 (2022: £2,090,000).

FINANCIAL REVIEW

The results for the year are set out in the annexed financial statements.

During the year the Group recorded total income of £5,869,835 (2022: £5,158,399), reflecting mainly the activity of the College. The Group showed a net decrease in funds of £106,227 (2022: net increase of £245,721). At the balance sheet date, the Group held total net assets of £7,769,497 (2022: £7,875,724).

During the year the Charity made further investments in its portfolio. At the balance sheet date the Charity held over £2.6m (2022: £2.5m) in investments and cash, providing reserves to enable the College to meet its Student Protection Plan.

A copy of the College’s financial statements is available from Companies House.

INVESTMENT PORTFOLIO PERFORMANCE

As at 31 July 2023, the assets in the main and legacy benevolent fund portfolios were valued at £2,366,258 and £302,574 respectively. This represents total returns for the last 12 months of -0.89% and +0.23% respectively. This is broadly in line with the PIMFA Private Investor Income benchmark, which achieved 0.03% over the same period. The income yield is higher than the benchmark, with the main account yielding 2.32% and the NIBF producing 3.29%.

Investments continue to be managed on a discretionary mandate in order to achieve a balance between income and growth with a medium/low level of risk.

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

GOING CONCERN

The Trustees have carefully considered the going concern of the Charity and the Group.

The majority of the Group’s activities sits within the College. The Trustees have reviewed three trading scenarios for the College covering an expected case, a worsening case and a worst case, through to 31 July 2025. Although such predictive work can never be relied on with complete certainty, the resultant forecasts and cash flows for each of the scenarios indicate that the College has adequate cash and other reserves to withstand, as well as the ability to adapt to, the worst-case scenario, should it occur, without the requirement for external funding.

The Trustees have considered the Charity’s formal obligation to the College to support the College in the implementation of its Strategic Plan and to ensure the College’s compliance with the OfS Framework, including its provision of sufficient financial support to meet the Student Protection Plan if required. In arriving at their overall position on going concern, the Trustees are satisfied that the Charity (and group) holds adequate free assets to meet its financial obligations in these respects.

The review demonstrates the ongoing consideration by the Trustees of its ability to cope under worsening scenario conditions, should they arise.

The Trustees are confident that the Charity and the Group remain a going concern and that the use of the going concern basis of accounting in the preparation of these financial statements remains appropriate.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Charity constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. It was incorporated on 22 November 2017 and is governed by its Memorandum and Articles of Association dated 9 July 2019. It was registered as a charity with the Charity Commission (number 1180292) on 12 October 2018.

Its Trustees are also its Members. The liability of its Members is limited to £1, being the amount each Member undertakes to contribute to the Charity's assets if the Charity is wound up while he or she is a Member, or within one year after he or she ceases to be a Member.

Investment in Subsidiary Company

At the balance sheet date, the College remains the only subsidiary of the Charity.

Appointment of Trustees

Trustees are appointed to the Charity Board (the Board) by resolution of the Trustees. The Board is composed of no fewer than three Trustees and such maximum number as the Board determines from time to time. There are currently five Trustees. By agreement, the College nominate from their Board two Trustees comprising the Chairman ex officio and one other. The other three are independent (i.e. Trustees who are not directors, officers or employees of the College). A majority of Trustees at any time shall be Independent Trustees. The normal term of office is three years, with Trustees eligible for reelection (by the Trustees) for one further term of three years.

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

Induction and training of Trustees

When appointed, new trustees are fully briefed on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and informed of the content of the Memorandum and Articles of Association (the Charity’s governing document). Trustees are encouraged to attend appropriate external training events where these will help the undertaking of their role.

Trustees may receive training from the Charity’s legal, accountancy and investment advisers, either on a dedicated training day or by joining sessions offered generally by those advisers.

Trustees have access to the governing documents; previous minutes, plans, and other documentation; and to Charity Commission guidance.

Organisational Structure & Decision Making

The Board conducts the business of the Charity through formal meetings, with assistance from the College as required. The Trustees hold at least two meetings of the Board each year and each meeting is minuted.

The Charity is the sole shareholder of the College and as authorised member appoints and removes all directors of the College. The Board has delegated powers to the Board of the College to do all such things as are conducive to the achievement of the Colle ge’s purposes subject to the Articles of Association and a Governance Agreement. The College Board has established a committee of the Board, known as the Academic Board, to which all matters relating to quality of teaching and courses provided by the College are referred. The College also has a Finance Committee, Enterprise Committee, Audit Committee, Nominations & Governance Committee and a Remuneration Committee.

The Trustees maintain an oversight of the College through College budgets, College management accounts, minutes of the College Board meetings and an annual presentation from the Principal.

Investments Policy & Objectives

The Trustees have a duty to preserve the purchasing power of the capital of its invested funds, in particular in support of the College’s Student Protection Plan. The investment objective of the portfolio is to have an emphasis on growth of the value of capital (subject to the preservation of the Student Protection Plan of £1.5m or as directed by the Trustees) in real terms.

The Trustees have delegated the investment management of the portfolio to an Investment Manager and to ensure performance targets are measured and defined. The performance of the Investment Manager will be monitored over a shorter timeframe than the investment horizon, in particular over a rolling 3-year horizon using the Wealth Management Association (WMA) Private Investor Total Return index applicable to the agreed risk mandate of the portfolio.

Related Parties

The trustees Mr M C Clarke and Mr M A Bray are also directors of the College.

Remuneration

The Charity’s governing document prevents its Members, Directors and Trustees from receiving payment for their duties. They may receive reimbursement for reasonable out-of-pocket expenses. The Charity did not employ any staff during the year ended 31 July 2023 (2022: Nil).

Remuneration of all staff employed by the College is approved by its Board of Directors. A Remuneration Committee advises the Board on matters relating to the remuneration of the Principal and the Executive.

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THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

Financial Management

Financial services for the Charity are provided by the College via a Shared Resources & Governance Agreement, with management accounts and forecasts scrutinised at Trustees’ meetings.

The College prepares termly management accounts three times a year, and each pack is presented to its Finance Committee and made available to the Board. A detailed yearly budget as well as longer term forecasts are presented annually.

Qualifying Third Party Indemnity Provisions

The Charity has made qualifying third-party indemnity provisions for the benefit of its Trustees during the year. These provisions remain in force at the reporting date.

AUDITORS

RSM UK Audit are deemed to be reappointed under section 487(2) of the Companies Act 2006.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the Trustees are aware, there is no relevant information of which the Charitable Company ’ s auditors are unaware. Additionally, the Trustees have taken all the steps that they ought to have taken as trustees in order to make them aware of any audit information and to establish that the Charitable Company ’ s auditors are aware of that information.

The Report of the Trustees, was approved by the Trustees on the 11 December 2023 and signed on their behalf.

Trustee:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

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THE NORLAND FOUNDATION

TRUSTEES’ RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 JULY 2023

TRUSTEES ’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees (who are also the directors of Norland Foundation 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 Group and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Group for that period.

In preparing these financial statements, the Trustees are required to

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

10

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2023

Opinion

We have audited the financial statements of The Norland Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 July 202 3 which comprise the Consolidated Statement of Financial Activities (including the income and expenditure account), the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group’s or parent charitable company’s ability to continue as a go ing 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 the Trustees other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2023

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report include d within the Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

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THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2023

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s gove rning document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect noncompliances which may have a material impact on the financial statements which included reviewing the financial statement s including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are the Children Act 1989 and 2004, the Office for Students Conditions of Registration and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these law and regulations and inspected correspondence with licensing or regulatory authorities.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Basis for opini Kerry Gallagher

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THE NORLAND FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2023

Kerry Gallagher (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 2[nd] Floor 1 The Square Temple Quay Bristol BS1 6DG

19/12/23 Date: ……………………….

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THE NORLAND FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023

Notes
INCOME FROM:
Donations
4
Investment income
5
Commercial trading operations
Total income
EXPENDITURE ON:
Charitable activities
6
Grants
Commercial trading operations
Total expenditure
NET (EXPENDITURE)/INCOME
BEFORE NET LOSSES ON
INVESTMENTS
Net losses on investments
TRANSFER BETWEEN FUNDS
NET MOVEMENT IN FUNDS
10
RECONCILIATION OF FUNDS
FUNDS BROUGHT FORWARD AT 1
AUGUST
20
FUNDS CARRIED FORWARD AT 31
JULY
20		 Restricted
funds
£
-
9,680
-
9,680		 Unrestricted
funds
£
1,200
62,303
5,796,652
5,860,155
30,380
-
5,667,764
5,698,144
162,011
(62,190)
(200,000)
(100,179)
7,540,310
7,440,131		 Total
2023
£		 Total
2022
£
1,200
71,983
5,796,652
5,869,835
30,905
206,659
5,667,764
5,905,328
(35,493)
(70,734)
-
(106,227)
7,875,724
7,769,497		 335,603
37,472
4,785,324
5,158,399
27,823
3,643
4,600,839
525
206,659
-
207,184
(197,504)
(8,544)
200,000
(6,048)
335,414
329,366
4,632,305
526,094
(280,373)
-
245,721
7,630,003
7,875,724

All amounts derive from continuing activities.

All gains and losses for the year are included in the consolidated statement of financial activities.

15

Company Registration No. 11077904

THE NORLAND FOUNDATION CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2023

Notes
2023
£
FIXED ASSETS
Intangible assets
12
Tangible assets
13
Investments
14
CURRENT ASSETS
Stock
15
8,643
Debtors
16
624,084
Cash at bank and in hand
1,122,168
1,754,895
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
17
(765,009)
NET CURRENT ASSETS
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY:
RESTRICTED FUNDS
20
UNRESTRICTED FUNDS
General funds
20
Designated funds
20
TOTAL FUNDS		 Notes
2023
£
FIXED ASSETS
Intangible assets
12
Tangible assets
13
Investments
14
CURRENT ASSETS
Stock
15
8,643
Debtors
16
624,084
Cash at bank and in hand
1,122,168
1,754,895
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
17
(765,009)
NET CURRENT ASSETS
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY:
RESTRICTED FUNDS
20
UNRESTRICTED FUNDS
General funds
20
Designated funds
20
TOTAL FUNDS		 2023
£
82,611
4,028,168
2,668,832		 2022
£
7,338
186,537
1,351,818		 2022
£
80,625
4,214,122
2,586,687
6,779,611
989,886		 6,881,434
994,290
1,754,895
(765,009)		 1,545,693
(551,403)
7,769,497 7,875,724
329,366
5,350,131
2,090,000		 335,414
5,450,310
2,090,000
7,769,497 7,875,724

The financial statements on pages 15 to 38 were approved by the Board of Trustees and authorised for issue on 11 December 2023 and are signed on their behalf by:

Trustee:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

16

Company Registration No. 11077904

THE NORLAND FOUNDATION COMPANY BALANCE SHEET AS AT 31 JULY 2023

Notes
2023
£
FIXED ASSETS
Investments
14
CURRENT ASSETS
Debtors
16
1,600
Cash at bank and in hand
118,682
120,282
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
17
(18,704)
NET CURRENT ASSETS
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY:
RESTRICTED FUNDS
Benevolent Fund
20
UNRESTRICTED FUNDS
General funds
20
Designated funds
20
TOTAL FUNDS		 Notes
2023
£
FIXED ASSETS
Investments
14
CURRENT ASSETS
Debtors
16
1,600
Cash at bank and in hand
118,682
120,282
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
17
(18,704)
NET CURRENT ASSETS
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY:
RESTRICTED FUNDS
Benevolent Fund
20
UNRESTRICTED FUNDS
General funds
20
Designated funds
20
TOTAL FUNDS		 2023
£
2,668,883
101,578		 2022
£
20,472
292,538		 2022
£
2,586,738
218,996
120,282
(18,704)		 313,010
(94,014)
2,770,461 2,805,734
329,366
351,095
2,090,000		 335,414
380,320
2,090,000
2,770,461 2,805,734

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes as it prepares Group financial statements. The Charitable Company's deficit for the year was £35,273 (2022: surplus of £383,778).

The financial statements on pages 15 to 38 were approved by the Board of Trustees and authorised for issue on ………………. and are signed on their behalf by:

Trustee:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

17

THE NORLAND FOUNDATION CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Notes
2023
£
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in)/provided by operating activities
26
(77,339)
NET CASH (USED IN)/GENERATED BY
OPERATING ACTIVITIES
(77,339)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of intangible assets
(10,548)
Purchase of tangible fixed assets
(60,867)
Purchase of investments
(472,752)
Proceeds on disposal of investments
319,873
Investment income
71,983
NET CASH USED IN INVESTING ACTIVITIES
(152,311)
(DECREASE)/INCREASE IN CASH IN THE YEAR
(229,650)
CASH AND CASH EQUIVALENTS AT 1 AUGUST
1,351,818
CASH AND CASH EQUIVALENTS AT 31 JULY
1,122,168		 2022
£
673,983
673,983
(85,620)
(66,878)
(424,426)
1,208
37,472
(538,244)
135,739
1,216,079
1,351,818

18

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1 ACCOUNTING POLICIES

GENERAL INFORMATION

The Norland Foundation is a private company limited by guarantee and incorporated in England and Wales. The address of the Charitable Company’s registered office and principal place of business is York Villa, York Place, London Road, Bath, Somerset, BA1 6AE.

The Group consists of The Norland Foundation and Norland College Limited.

The Charitable Company’s and the Group’s principal activities and the nature of the Charitable Company’s operations and the Group’s operations are disclosed in the Trustees’ Report.

BASIS OF PREPARATION

These financial statements have been prepared in accordance with the Charities: Statement of Recommended Practice (applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019 - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Norland Foundation meets the definition of a public benefit entity under FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Group and Charitable Company. Monetary amounts in these financial statements are rounded to the nearest whole £1, except where otherwise indicated.

GOING CONCERN

The Trustees have carefully considered the going concern of the Charity and the Group.

The majority of the Group’s activities sits within the College. The directors have reviewed three trading scenarios covering an expected case, a worsening case and a worst case. Forecasts and cash flows for each scenario up to 31 July 2025 indicate the College has adequate cash and other reserves to withstand, as well as the ability to adapt to, the worst-case scenario, should it occur, without the requirement for external funding. At present, there is no expectation that the College will suffer a significant reduction in student numbers or income for the current financial year ended 31 July 2024, and the forecasted budget for the financial year ended 31 July 2025 anticipates an operating profit and that the College will continue to meet its liabilities as they fall due.

The Trustees have considered the Charity’s formal obligation to the College to support the College in the implementation of its Strategic Plan and to ensure the College’s compliance with the OfS Framework, including its provision of sufficient financial support to meet the Student Protection Plan if required. In arriving at their overall position on going concern, the Trustees are satisfied that the Charity (and group) holds adequate free assets to meet its financial obligations in these respects.

The review demonstrates the ongoing consideration by the Trustees of its ability to cope under worsening scenario conditions, should they arise.

The Trustees are confident that the Charity and the Group remain a going concern and that the use of the going concern basis of accounting in the preparation of these financial statements remains appropriate.

19

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

1 ACCOUNTING POLICIES (continued)

REDUCED DISCLOSURES

In accordance with FRS 102, the Charitable Company has taken advantage of the exemptions from the following disclosure requirements:

GROUP FINANCIAL STATEMENTS

The financial statements consolidate the results of the Charitable Company and its wholly owned subsidiary Norland College Limited on a line by line basis. All financial statements are made up to 31 July 2023. All intra Group transactions and balances between Group companies are eliminated on consolidation.

A separate statement of financial activities and income and expenditure account is not presented for the Charitable Company itself in accordance with the exemptions afforded by section 408 of the Companies Act 2006.

INCOME

All income included in the statement of financial activities is recognised when the Charitable Company is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Donations are recognised when the Charitable Company has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

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

Commercial trading operations income represents the value of services provided during the year, net of value added tax. Training fees are recognised when the service is provided. Employment agency fees are recognised when the contract commences. Consultancy income is recognised at the time the work is carried out.

EXPENDITURE

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category heading. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the expenditure.

ALLOCATION AND APPORTIONMENT OF COSTS

Charitable activities are those costs incurred directly in the carrying out of the Charitable Company’s operations. S upport costs are those costs incurred directly to support the principal objectives of the Group. Governance costs are those incurred for the undertaking of the Group ’s constitutional and statutory requirements.

20

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

1 ACCOUNTING POLICIES (continued)

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Board of Trustees. Designated funds are unrestricted funds of the Charitable Company which the Trustees have decided at their discretion to set aside to use for a specific purpose. The aim and purpose of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds subject to specific conditions imposed by donors. The purpose and use of the restricted funds are set out in the notes to the accounts. Amounts unspent at the year end are carried forward in the balance sheet.

INTANGIBLE FIXED ASSETS OTHER THAN GOODWILL

Intangible assets acquired are recognised at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised as to write off the cost of assets less their residual values over their useful lives on the following bases:

Software and licences 3 to 10 years straight line

Intangible assets in the course of construction are not amortised.

TANGIBLE FIXED ASSETS

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold property 2% - 10% per annum of cost Leasehold improvements 2.8% - 10% per annum of cost Fixtures and fittings 20% per annum of cost Office equipment 25% - 33% per annum of cost

Land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

FIXED ASSET INVESTMENTS

In the individual financial statements of the Charitable Company, interests in subsidiaries are measured at cost less any accumulated impairment losses.

Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in the statement of financial activities.

Other investments are stated at fair value and unrealised gains and losses on investments are recognised in the statement of financial activities.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand and deposits held at call with banks.

21

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

1. ACCOUNTING POLICIES (continued)

STOCK

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

LEASES

Rentals paid under operating leases are charged as an expense on a straight line basis over the period of the lease.

EMPLOYEE BENEFITS

The cost of short-term employee benefits is recognised as a liability and an expense.

Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

RETIREMENT BENEFITS

Certain employees are members of the Teachers ’ Superannuation Scheme, a defined benefit scheme. The Group makes contributions on behalf of the employees who are members in accordance with the requirements of the scheme. Other than these contributions there is no additional liability to the company in respect of the scheme which is controlled by the Department for Education and Employment.

The Group operates a money purchase pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund.

FINANCIAL INSTRUMENTS

The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument, and are offset only when the Group currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

FINANCIAL ASSETS

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, 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.

OTHER FINANCIAL ASSETS

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in other comprehensive income and where fair values cannot be measured reliably, are measured at cost less impairment.

FINANCIAL LIABILITIES

Basic financial liabilities, which include trade and other creditors, are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measured at fair value.

22

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

2 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

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

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

The Trustees have considered whether any critical estimates or judgements have been made in the preparation of these financial statements and they believe there are none to note.

3 SURPLUS OF PARENT ENTITY

The Norland Foundation has taken the exemption under section 408 of the Companies Act 2006 not to present its income and expenditure accounts as part of these financial statements. The Norland Foundation’s total income for the year was £340,329 (2022: £737,305) and the deficit for the financial year was £35,273 (2022: surplus of £383,778).

4 DONATIONS

DONATIONS
2023 2022
£ £
Donations received 1,200 335,603

In the current year, income from donations of £Nil (2022: £334,403) is restricted.

5 INVESTMENT INCOME

INVESTMENT INCOME
Investment income
Bank interest received		 2023
£
58,529
13,454
71,983		 2022
£
36,928
544
37,472

In the current year, investment income of £9,680 (2022: £952) is restricted.

23

THE NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

6 CHARITABLE ACTIVITIES EXPENDITURE

Support
Direct Costs (see 2023 2022
Costs note 7) Total Total
£ £ £ £
Charitable activities - 30,905 30,905 27,823

In the current year, £525 (2022: £1,674) of expenditure from charitable activities relating to investment management charges was restricted.

7 SUPPORT COSTS

Support
Insurance
Investment management fees
Governance
Bank charges
Audit fees
Accountancy fees
Tax compliance fees
Statutory compliance fees
Trustees’expenses		 2023
£
2,033
12,867
10
6,774
5,550
3,420
13
238
30,905		 2022
£
2,027
13,494
5
4,200
4,134
3,600
13
350
27,823

All support costs relate to the sole charitable activity of the Group, being the provision of early years education through effective training and advancement of students.

24

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023 8 STAFF COSTS

Wages and salaries
Social security costs
Pension costs		 2023
£
2,770,468
300,994
270,436
3,341,898		 2022
£
2,311,887
243,875
271,371
2,827,133

The average monthly number of persons employed by the Group during the year was:

Senior management
Academic staff
Support staff
Agency staff
Research, consultancy & training		 2023
No
7
49
22
6
1
85		 2022
No
8
48
17
6
1
80

The Charitable Company had no employees during the current or prior year.

The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year was as follows:

£60,000 in the year was as follows:
2023 2022
No No
£60,001 - £70,000 3 -
£70,001 - £80,000 1 1
£80,001 - £90,000 1 1
£90,001 - £100,000 1 -
£100,001 - £110,000 - 1
£110,001 - £120,000 1 -

Retirement benefits of £69,439 (2022: £49,505) are accruing to seven (2022: three) of these members of staff.

Key management personnel received aggregate remuneration including employer pension contributions of £719,509 (2022: £655,748).

9 TRUSTEES REMUNERATION

During the current or prior period no Trustees received remuneration in respect of services provided to the Charitable Company and therefore no Trustee received remuneration of more than £60,000. During the period Trustees’ expenses of £ 238 (2022: £350) were paid for travel expenses, to three Trustee (2022: one).

25

THE NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

10 NET MOVEMENT IN FUNDS

Net movement in funds are stated after charging:

Net movement in funds are stated after charging:
2023 2022
£ £
Research and development costs - 5,603
Auditor’sremuneration:
- Statutory audit of the parent and group 7,445 6,475
- Statutory audit of the subsidiary 18,830 16,375
- Other non-audit services 9,715 8,835
- Taxation compliance services 4,960 4,510
Amortisation 8,562 8,423
Depreciation 246,821 274,969
Operating lease rentals 90,039 75,720

11 TAXATION

No liability to UK corporation tax arose on ordinary activities for the year ended 31 July 2023 or the year ended 31 July 2022.

26

THE NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

12 INTANGIBLE FIXED ASSETS

Group

Cost
At 1 August 2022
Additions–separately acquired
At 31 July 2023
Amortisation
At 1 August 2022
Amortisation charged in the
year
At 31 July 2023
Net book value 31 July 2023
Net book value 31 July 2022		 Software and
licences
£
103,822
10,548
114,370
23,197
8,562
31,759
82,611
80,625

Amortisation charges are included within expenditure on commercial trading operations on the statement of financial activities.

Charitable Company

The Charitable Company had no intangible fixed assets in the current or prior year.

27

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

13 TANGIBLE FIXED ASSETS

Group

Cost
At 1 August 2022
Additions
At 31 July 2023
Depreciation
At 1 August 2022
Depreciation
charged in the year
At 31 July 2023
Net book value 31
July 2023
Net book value 31
July 2022		 Freehold
property
£
1,043,582
-
1,043,582
100,566
33,260
133,826
909,756
943,016		 Leasehold
improvements
£
3,665,768
-
3,665,768
483,103
161,052
644,155
3,021,613
3,182,665		 Fixtures
and fittings
£
164,573
-
164,573
162,012
1,443
163,455
1,118
2,561		 Office
equipment
£
199,535
60,867
260,402
113,655
51,066
164,721
95,681
85,880		 Total
£
5,073,458
60,867
5,134,325
859,336
246,821
1,106,157
4,028,168
4,214,122

Company

The Charitable Company had no tangible fixed assets in the current or prior year.

28

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

14 FIXED ASSET INVESTMENTS Group

Listed investments
Movements in fixed asset investments
Valuation
At 1 August 2022
Additions
Disposals
Valuation changes
At 31 July 2023
Carrying amount
At 31 July 2023
At 31 July 2022
Charitable Company
Listed investments
Investments in group undertakings		 2023
£
2,668,832
2023
£
2,668,832
51
2,668,883		 2022
£
2,586,687
Listed
investments
£
2,586,687
472,752
(319,873)
(70,734)
2,668,832
2,668,832
2,586,687
2022
£
2,586,687
51
2,586,738

29

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

14 FIXED ASSET INVESTMENTS (continued)

Movements in fixed asset investments
Cost or valuation
At 1 August 2022
Additions
Disposals
Valuation changes
At 31 July 2023
Carrying amount
At 31 July 2023
At 31 July 2022		 Listed
investments
£
2,586,687
472,752
(319,873)
(70,734)
2,668,832
2,668,832
2,586,687		 Shares in
group
undertaking
£
51
-
-
-
51
51
51

In the opinion of the Trustees, the aggregate value of the Charitable Company ’s investment in subsidiary undertakings is not less than the amount indicated in the Balance Sheet.

30

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

14 FIXED ASSET INVESTMENTS (continued)

Holdings of more than 20%

The Charitable Company holds more than 20% of the share capital in the following companies:

Company Registered Office Class Shares held Shares held
%
Subsidiary undertaking Direct Indirect
Norland College Limited York Villa, York Place, Ordinary 100 -
London Road, Bath,
Company No: 00193170 Somerset, BA1 6AE

The principal activity of these undertakings for the last relevant financial year was as follows:

Company Principal activity Norland College Limited Provision of Higher Education degree in Early Years Development and Learning and the practical skills gained through the Norland Diploma.

The aggregate amount of capital and reserves and the results of these undertakings were asmfollows:

Norland College Limited
Norland College Limited
STOCKS
Stock of supplies and finished
goods		 Income for
the year
£
5,863,958
Income for
the year
£
4,827,555
Group
2023
£
8,643		 2023
Expenditure
for the year
£
Profit for
the year
£
Capital
and
reserves
£
(5,642,747)
234,649
4,999,087
2022
Expenditure
for the year
£
Profit for
the year
£
Capital
and
reserves
£
(4,625,841)
201,714
5,045,038
Charitable Company
2022
£
2023
£
2022
£
7,338
-
-

15 STOCKS

31

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

16 DEBTORS

Group
2023
£
2022
£
Trade debtors
393,210
17,311
Other debtors
5,440
2,498
Prepayments and accrued
income
225,434
166,728
624,084
186,537
17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
2023
£
2022
£
Trade creditors
135,951
95,454
Taxation and social security
costs
137,465
69,595
Amounts owed to group
undertakings
-
-
Other creditors
14,958
47,218
Accruals and deferred income
476,635
339,136
765,009
551,403
18 DEFERRED INCOME
Group
2023
£
2022
£
Deferred income is included within:
Creditors due within one year
43,000
1,699
Deferred income at 1 August
600
3000
Released from previous years
(600)
(3,000)
Resources deferred in the year
43,000
600
Deferred income at 31 July
43,000
600		 Charitable Company
2023
£
2022
£
-
-
1,600
2,200
-
18,272
1,600
20,472
Charitable Company
2023
£
2022
£
-
-
-
-
1,013
79,382
-
-
17,691
14,632
18,704
94,014
Charitable Company
2023
£
2022
£
-
-
-
-
-
-
-
-
-
-		 Charitable Company
2023
£
2022
£
-
-
1,600
2,200
-
18,272
1,600
20,472
Charitable Company
2023
£
2022
£
-
-
-
-
1,013
79,382
-
-
17,691
14,632
18,704
94,014
Charitable Company
2023
£
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Deferred income in the current year relates to a commercial contract with the Early Childhood Authority in Abu Dhabi. The deferred income in the 2022 relates to fees received in advance for attending Norland College during the next academic year.

32

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

19
FINANCIAL INSTRUMENTS
Carrying amount of financial assets
Equity instruments measured at fair value
20
FUNDS
Group
At
1 August
2022
£
Income
£
RESTRICTED FUNDS
Benevolent fund
335,414
9,680
UNRESTRICTED FUNDS
General fund
5,450,310
5,860,155

Designated funds
2,090,000
-
TOTAL FUNDS
7,875,724
5,869,835
Charitable Company
At
1 August
2022
£
Income
£
RESTRICTED FUNDS
Benevolent fund
335,414
9,680
UNRESTRICTED FUNDS
General fund
380,320
330,651
Designated funds
2,090,000
-
TOTAL FUNDS
2,805,734
340,331		 2023
£
2,668,832
Expenditure
£
Transfers and
other
gains/(losses)
£
(207,184)
191,456
(5,698,144)
(262,190)
-
-
(5,905,328)
(70,734)
Expenditure
£
Transfers and
other
gains/(losses)
£
(207,184)
191,456
(159,876)
(200,000)
-
-
(367,060)
(8,544)		 2022
£
2,586,687
At
31 July
2023
£
329,366
5,350,131
2,090,000
7,769,497
At
31 July
2023
£
329,366
351,095
2,090,000
2,770,461

33

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

20 FUNDS (continued)
Group
RESTRICTED FUNDS
Benevolent fund
UNRESTRICTED FUNDS
General fund
Designated funds
TOTAL FUNDS
Charitable Company
RESTRICTED FUNDS
Benevolent fund
UNRESTRICTED FUNDS
General fund
Designated funds
TOTAL FUNDS		 At
1 August
2021
£
-

5,900,003
1,730,000
7,630,003
At
1 August
2021
£
-

691,956
1,730,000
2,421,956		 Income
£
335,355
4,823,044
-
5,158,399
Income
£
335,355
401,950
-
737,305		 Expenditure
£
(1,674)
(4,630,631)
-
(4,632,305)
Expenditure
£
(1,674)
(71,480)
-
(73,154)		 Transfers and
other
gains/(losses)
£
1,733
(642,106)
360,000
(280,373)
Transfers and
other
gains/(losses)
£
1,733
(642,106)
360,000
(280,373)		 At
31 July
2022
£
335,414
5,450,310
2,090,000
7,875,724
At
31 July
2022
£
335,414
380,320
2,090,000
2,805,734

Designated funds

Funds of £1,500,000 (2022: £1,500,000) have been designated to support the College’s Student Protection Plan. This plan, required by the OfS, ensures adequate provision is made for students to allow them to continue and complete their studies (or receive compensation if this is not possible) in the event that the College is unable to provide its course or has to close. A further £590,000 (2022: £590,000) is designated in respect of the anticipated cost of replacing buildings.

Benevolent fund

During the prior year, The Norland Institute Benevolent Fund (registered charity number 208818) was dissolved and its assets were transferred to the Norland Foundation. The Norland Institute Benevolent Fund was originally founded in 1915, with the following stated purpose: “For the relief of poverty, sickness or distress of any persons connected with Norland College whether as a member of staff or as persons undergoing training as nannies, or those who have trained”. The ‘Norland Institute’ was the forerunner of what is now Norland College.

A resolution was passed on 15 February 2022 to close the charity and transfer its assets to The Norland Foundation, where it would be accounted for as a restricted fund and continue operating with the same stated purpose.

34

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

THE NORLAND FOUNDATION

21 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

2023
Intangible assets
Tangible assets
Investments
Net current assets
TOTAL NET ASSETS
At 31 July 2023
2022
Intangible assets
Tangible assets
Investments
Net current assets
TOTAL NET ASSETS
At 31 July 2022		 Restricted
funds
£
-
-
302,575
26,791
329,366
Restricted
funds
£
-
-
311,649
23,765
335,414		 General
fund
£
82,611
4,028,168
276,257
963,095
5,350,131
General
fund
£
80,625
4,214,122
185,038
970,525
5,450,310		 Designated
funds
£
-
-
2,090,000
-
2,090,000
Designated
funds
£
-
-
2,090,000
-
2,090,000		 Total funds
£
82,611
4,028,168
2,668,832
989,886
7,769,497
Total funds
£
80,625
4,214,122
2,586,687
994,290
7,875,724

22 CONTROL

There is no ultimate controlling party. The Board of Trustees is responsible for the strategic and operational decisions of the Group.

23 LIMITED BY GUARANTEE

The Charitable Company is limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

24 OTHER FINANCIAL COMMITMENTS

At the reporting end date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:

Group
Operating leases which expire:
Within one year
Between two and five years
Over 5 years		 2023
£
88,897
333,168
1,830,380
2,252,445		 2022
£
84,010
310,390
1,694,905
2,089,305

Charitable Company

The Charitable Company has no financial commitments.

35

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

25 RETIREMENT BENEFITS

The Group ’ s employees belong to two principal pension schemes; The Teachers' Pension Scheme for England and Wales (TPS) for academic and related staff which is a defined benefit pension scheme and for non-teaching staff the Norland stakeholder pension scheme which is a defined contribution scheme which is administered by Scottish Widows.

Total pension costs in the year:

Group
Teachers’ pension scheme contributions paid
Norland stakeholder pension scheme contributions paid
Total pension contributions paid in the year		 2023
£
191,131
79,305
270,436		 2022
£
183,583
87,788
271,371

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2020.

At the year end contributions of £38,436 (2022: £34,793) were outstanding and included in creditors.

Teachers’ Pension Scheme

The Group participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff.

The TPS is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions 2014. Membership is automatic for teachers in academies. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. The Group has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Group has set out below the information available on the scheme.

Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The Group is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the Group has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The Group has set out above the information available on the plan and the implications for the Group in terms of the anticipated contribution rates.

36

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

25 RETIREMENT BENEFITS (continued)

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020.

The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation and subsequent consultation are:

As a result of the valuation, new employer contribution rates were set at 28.6% (including a 0.08% administration levy) of pensionable pay from April 2024 onwards (compared to 23.68% from September 2019 to 31 March 2024).

The next valuation will be based on data as at 31 March 2024 and will take effect from 1 April 2027.

The employer’s pension costs paid to TPS in the period amounted to £ 191,131 (2022: £183,583).

26 NOTES TO THE STATEMENT OF CASH FLOWS

Cash generated from operations
Net (deficit)/surplus
Adjustments for:
Investment income
Amortisation of intangible assets
Depreciation of tangible fixed assets
Net losses on investments
Movements in working capital:
(Increase)/decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (outflow)/inflow from operating activities		 2023
£
(106,227)
(71,983)
8,562
246,821
70,734
(1,305)
(437,547)
213,606
(77,339)		 2022
£
245,721
(37,472)
8,423
274,969
280,373
11,704
160,072
(269,807)
673,983

37

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

27 ANALYSIS OF CHANGES IN NET FUNDS

1 August 31 July
2022 Cash flows 2023
£ £ £
Cash at bank and in hand 1,351,818 (229,650) 1,122,168

28 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS

During the year the Group had the following transactions with related parties:

Prof D Timms Bed MA MSc PhD (a director of the College) provided consultancy services to the College totalling £800 (2022: £Nil). At the Balance Sheet date £Nil was outstanding (2022: £Nil).

Ms R Heald (a director of the College) is married to a parter of the College ’ s lead provider of legal services, Veale Wasbrough Vizards LLP. The College received legal services totalling £96,444 (2022: £10,425) during the year. At the Balance Sheet date, the amount due to the legal service provider was £4,894 (2022: £Nil).

During the year The Norland Foundation transacted with its fully owned subsidiary Norland College Limited. All intergroup transactions and year end balances were eliminated on consolidation.

The intergroup transactions and year end balances were:

Transactions in the year
Distribution under gift aid from Norland College Limited to
The Norland Foundation
Research Project funding awarded to Norland College
Limited from The Norland Foundation
Shared resource charge made by Norland College Limited to
The Norland Foundation
Balances outstanding at the year end
The Norland Foundation holds 100% of the share capital of
Norland College Limited
The Norland Foundation owes Norland College Limited		 2023
2022
£
£
280,600
364,774
48,746
23,245
18,560
18,429
51
51
1,013
94,522

38