2025-07-31-accounts - The Norland Foundation

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111111111111111116#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 2025

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) Dr R Digby MA PhD PGCE FHEA (Vice Principal) Mrs E Burns MPhil FCCA (Executive – Chief Financial Officer) – resigned 30th May 2025 Mr R Cole FCCA MBA (Chief Financial Officer) – appointed 19th May 2025

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

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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 2025. 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:

the advancement of education for the public benefit, in particular (but not limited to) early years education, by (but not limited to):
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;
b. the promotion of best practice in early years care and the education of young children generally;
c. the provision of funding for specific projects and/or research relating to the promotion of best practice in early years care and education;
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:
a. the education of children of early years age and student or qualified childcare and education practitioners of early years education;
b. the provision of funding for specific projects and/or research to promote social inclusion; and
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 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”.

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.

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

This incorporates supporting the College’s agreed OfS Student Protection Plan, a plan agreed by the OfS that confirms adequate provision (£1.78m) 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:

support the College’s Student Protection Plan;
make provision for additional properties for educational purposes;
cover six to nine months of the Charity’s core operating costs;
provide a Benevolent Fund to financially assist persons connected with Norland College; and
• meet its other charitable objects.

In the year ended 31 July 2025 the Norland Foundation has continued to fund a number of research projects. It funded a Fellowship in Early Relational Health at the University of Massachusetts for two members of staff and Literature Review on the topic of Emotion Coaching. It also funded a Research Assistant who carried out a qualitative analysis of 43 case studies that had been collected for a national Attachment Aware Schools project for Bath and North East Somerset, Stoke and Leicestershire Virtual Schools. A long report that was already in progress by other authors was completed and a short paper written.

The Foundation have continued to fund the Norland Educare Research Journal, now in its third issue. It has also made a further grant to a local charity, First Steps (Bath) that works with young children with Special Educational Needs. The funding to First Steps enables the charity to facilitate ‘Stay and Play’ sessions for Children with Special Educational Needs and their parent/carers. Parent/carers receive support from experienced Early Years Practitioners and Special Educational Need Family Support Practitioners whilst the children enjoy a well-planned, engaging environment that appeals to their interests.

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 delivers 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.

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 NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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 Indefinite Degree Awarding Powers during the year ended 31 July 2025, with full University title expected to follow in a further 1-2 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 (2025/26) met its target with 107 first years enrolling in September 2025.

In 2024/25 59% of third year students who completed their degrees achieved a first class or 2:1 classification. Retention on the BA programme remains strong, with 96% of first, 99% of second and 100% of third years continuing their studies throughout 2024/25. This compares very favourably with similar courses at other institutions.

Norland was awarded top small or specialist provider in the 2025 Whatuni Student Choice awards, making the College a top two Whatuni winner for seven consecutive years.

The Norland Agency has experienced an increase in income in line with the recruitment industry. This trend is set to continue with further budgeted increases in Agency income for 2025/26, in line with continued positive media interest and Norland’s launch of the new online Nanny App (completed March 2025). Placements for the new financial year are predicted to increase once again.

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. This project continued in the year ending 31 July 2024 with income of £227,800 and related costs of £43,000.

Norland continued to engage with oversees consultancy and training in Abu Dhabi during the year ending 31 July 2025, with contract income of £195,789 and related costs of £125,350. There are a number of new overseas consultancy opportunities in the pipeline.

During the year ended 31 July 2024, Norland entered into a partnership with Emotion Coaching UK, in order to deliver Emotion Coaching training (evidence-based co-regulation strategy for children) to numerous early years settings across the UK. The project is funded by the Education Endowment Foundation and Early Years Stronger Practice Hubs, with total funding over the three year project of £195,065 from the Education Endowment Foundation and £204,830 from the Stronger Practice Hubs.

During the year ended 31 July 2025, grant funding totaling £276,852 was received from the Stronger Practice Hubs and Education Endowment Foundation in relation to the project. Norland also held funds of £126,937, carried forward from the year-ended 31 July 2024. Of this, £287,562 was recognized during the period in line with project delivery, with £15,277 carried forward as deferred income to match delivery at a future date. £106,920 was paid to Emotion Coaching UK for services as delivery partner.

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 NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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:

Fall in Investment Performance

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. 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.

RESERVES POLICY

The reserves policy ensures the Charity:

Builds sufficient unrestricted reserves to safeguard its operational needs.
Holds sufficient unrestricted reserves to meet its charitable objectives.
Holds unrestricted designated reserves to support the College to meet its Student Protection Plan.
Builds sufficient unrestricted designated reserves to ensure that, in the long-term, the College has suitable property from which to operate.

At the year end, the Charity had total surplus unrestricted reserves of £320,800 (2024: £667,877) and total surplus unrestricted designated reserves of £2,670,000 (2024: £2,090,000).

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

At the balance sheet date, the Group held total general unrestricted reserves of £5,254,492 (2024: £5,499,724) with £3,542,779 (2024: £3,737,074) held in freehold property and leasehold improvements, leaving £1,711,713 (2024: £1,762,650) in other net assets. The Group held total designated unrestricted reserves of £2,670,000 (2024: £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 £6,715,709 (2024: £5,659,634), reflecting mainly the activity of the College. The Group showed a net increase in funds of £338,950 (2024: £175,286). At the balance sheet date, the Group held total net assets of £8,283,733 (2024: £7,944,783).

During the year the Charity made further investments in its portfolio. At the balance sheet date the Charity held £3,092,846 (2024: £2,963,606) 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 2025, the assets in the main and legacy benevolent fund portfolios were valued at £2,963,555 and £322,800 respectively. This represents total returns for the last 12 months of +4.56% and +0.93% respectively. This is below inflation and represents a relatively flat level of performance for 2024/25.

Trustees have reviewed investment portfolio performance, following a degree of uncertainty with geopolitics and tariffs. Proposals to increase investment in direct equities and direct bonds as well as funds has been approved by Trustees with a follow up review in 12 months. This new strategy will deliver slightly lower risk and aim to achieve CPI + 2% over the long term. The portfolio reflects a global position, rather than based purely in the UK/USA.

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.

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 approved the budget for 2025/26 with a further reforecast budget, in the Autumn, confirming an improved financial position with a sensitivity analysis to enable the College’s finances to remain agile throughout the year. Trustees have also received a 5 year financial forecasts and although such predictive work can never be relied on with complete certainty, the resultant forecasts and cash flows indicate that the College has adequate cash and other reserves to withstand, as well as the ability to adapt to, changes in financial performance 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 NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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 24 March 2021. 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.

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 College’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 NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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 £1.78m 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 2025 (2024: 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.

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

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025 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 8[th] December 2025 and signed on their behalf.

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

THE NORLAND FOUNDATION

TRUSTEES’ RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 JULY 2025

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of The Norland Foundation for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 the group and of the income and expenditure, of the charitable group for that period.

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

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

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

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 2025 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:

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 July 2025 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

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 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 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.

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Trustees, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors’ Report and the Strategic Report included within the Report of the Trustees have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 included 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:

adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities 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.

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

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:

obtained an understanding of the nature of the sector, including the legal and regulatory framework that the group and parent charitable company operate in and how the group and parent charitable company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud

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 governing 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 statements 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.

THE NORLAND FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

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

15 December 2025

Date: ……………………….

THE NORLAND FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2025

Restricted funds £ - 11,482 - 11,482	Total 2025 £	Total 2024 £
	1,200 105,246 6,609,263 6,715,709 31,397 35,227 6,442,166 6,508,790 206,919 132,031 338,950 7,944,783 8,283,733	11,362 95,240 5,553,032
		5,659,634
		31,864 10,750 5,577,336
1,118 9,148 - 10,266 1,216 2,966 4,182 355,059 359,241
		5,619,950
		39,684 135,602
		175,286
		7,769,497
		7,944,783

All amounts derive from continuing activities.

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

Company Registration No. 11077904

THE NORLAND FOUNDATION CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2025

Notes 2025 £ FIXED ASSETS Intangible assets 11 Tangible assets 12 Investments 13 CURRENT ASSETS Stock 14 8,705 Debtors 15 501,881 Cash at bank and in hand 1,254,923 1,765,509 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 16 (510,829) NET CURRENT ASSETS 1,254,680 TOTAL NET ASSETS THE FUNDS OF THE CHARITY: RESTRICTED FUNDS 19 UNRESTRICTED FUNDS General funds 19 Designated funds 19 TOTAL FUNDS	2025 £ 296,261 3,639,997 3,092,795	2024 £ 8,237 369,584 1,324,364	2024 £ 80,532 3,831,950 2,963,555
	7,029,053		6,876,037 1,068,746
1,765,509 (510,829)		1,702,185 (633,439)
1,254,680
	8,283,733		7,944,783
	359,241 5,254,492 2,670,000		355,059 5,499,724 2,090,000
	8,283,733		7,944,783

The financial statements on pages 15 to 38 were approved by the Board of Trustees and authorised for issue on 8[th] December 2025 and are signed on their behalf by:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

Company Registration No. 11077904

THE NORLAND FOUNDATION COMPANY BALANCE SHEET AS AT 31 JULY 2025

Notes 2025 £ FIXED ASSETS Investments 13 CURRENT ASSETS Debtors 15 2,433 Cash at bank and in hand 304,552 306,985 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 16 (49,791) NET CURRENT ASSETS TOTAL NET ASSETS THE FUNDS OF THE CHARITY: RESTRICTED FUNDS Benevolent Fund 19 UNRESTRICTED FUNDS General funds 19 Designated funds 19 TOTAL FUNDS	2025 £ 3,092,846 257,195	2024 £ 1,000 253,072	2024 £ 2,963,606 149,330
306,985 (49,791)		254,072 (104,742)

	3,350,041		3,112,936
	359,241 320,800 2,670,000		355,059 667,877 2,090,000
	3,350,041		3,112,936

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 Norland Foundation’s total net income for the year was £105,072 (2024: £206,873) and the net movement in funds was £237,102 (2024: £342,475).

The financial statements on pages 15 to 38 were approved by the Board of Trustees and authorised for issue on 8[th] December 2025 and are signed on their behalf by:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

THE NORLAND FOUNDATION CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025

HE NORLAND FOUNDATION ONSOLIDATED STATEMENT OF CASH FLOWS OR THE YEAR ENDED 31 JULY 2025
Notes 2025 £ CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities 25 126,714 NET CASH GENERATED BY OPERATING ACTIVITIES 126,714 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of intangible assets (242,508) Purchase of tangible fixed assets (61,684) Purchase of investments (421,959) Proceeds from sale of investments 424,750 Investment income 105,246 NET CASH USED IN INVESTING ACTIVITIES (196,155) (DECREASE)/INCREASEIN CASH IN THE YEAR (69,441) CASH AND CASH EQUIVALENTS AT 1 AUGUST 1,324,364 CASH AND CASH EQUIVALENTS AT 31 JULY 1,254,923	2024 £ 330,703
	330,703
	(10,031) (54,595) (159,121) - 95,240
	(128,507)
	202,196
	1,122,168
	1,324,364

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

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

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

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:

Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flow and related notes and disclosures; and
Section 11 ‘Basic Financial Instruments’ & Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values.

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 2025. 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 Group 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.

Revenue from the contract with the Education Endowment Fund and Stronger Practice Hubs in Partnership with Emotion Coaching UK is recognised in line with delivery against specific contract milestones. Where milestone delivery is uncertain, revenue is recognised in line with costs incurred.

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. Support 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.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

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 note 19 of 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 note 19 of 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 Charitable Company’s financial statements, 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

THE NORLAND FOUNDATION

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’ Pension Scheme (TPS), 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 TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Academy Trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently there is insufficient information to use defined benefit accounting, it is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

The Group operates a defined contribution 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.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

1 ACCOUNTING POLICIES (continued)

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.

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 of revision and, if relevant, future periods.

The Trustees have considered all areas where judgement or estimation is required in applying the accounting policies of the Group. The valuation of listed investments is based on quoted market prices at the balance sheet date and therefore does not involve any significant estimation uncertainty.

The Trustees do not consider there to be any other critical accounting estimates or judgements that have a material effect on the financial statements.

3 DONATIONS

	2025	2024
	£	£
Donations received	1,200	11,362

In the current year, donations received of £1,200 (2024: £1,362) is unrestricted and £Nil (2024: £10,000) is restricted.

4 INVESTMENT INCOME

Investment income Bank interest received	2025 £ 81,480 23,766 105,246	2024 £ 70,152 25,088
		95,240

In the current year, investment income of £11,482 (2024: £10,746) is restricted.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

5 CHARITABLE ACTIVITIES EXPENDITURE

		Support
	Direct	Costs (see	2025	2024
	Costs	note 6)	Total	Total
	£	£	£	£
Charitable activities	-	31,397	31,397	31,864

In the current year, £1,118 (2024: £1,563) of expenditure from charitable activities relating to investment management charges was restricted.

6 SUPPORT COSTS

SUPPORT COSTS
Support Insurance Investment management fees Governance Bank charges Audit fees Accountancy fees Tax compliance fees Statutory compliance fees Trustees’ expenses	2025 £ 2,033 15,007 8 8,760 2,850 2,705 34 - 31,397	2024 £ 2,033 14,575 11 7,560 5,280 2,100 13 292
		31,864

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.

7 STAFF COSTS

Wages and salaries Social security costs Pension costs	2025 £ 2,993,770 347,010 365,986 3,706,766	2024 £ 2,887,449 302,126 333,332
		3,522,907

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

7 STAFF COSTS (continued)

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	2025 No 7 46 26 9 1 89	2024 No 7 46 22 9 1
		85

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:
	2025	2024
	No	No
£60,001 - £70,000	2	3
£70,001 - £80,000	1	-
£80,001 - £90,000	2	1
£90,001 - £100,000	-	1
£110,001 - £120,000	1	-
£120,001 - £130,000	-	1
£130,001 - £140,000	1	-

Retirement benefits of £110,258 (2024: £96,446) are accruing to seven (2024: six) of these members of staff.

Key management personnel received aggregate remuneration including employer pension contributions of £760,278 (2024: £726,531).

8 TRUSTEES REMUNERATION

During the current and prior periods, no Trustees received any remuneration or other benefits from the Charitable Company for their services as Trustees. Accordingly, no Trustee received remuneration exceeding £60,000 in either period.

During the current period, no Trustees (2024: three) were reimbursed expenses (2025: £nil; 2024: £292) relating to travel costs.

THE NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

9 NET MOVEMENT IN FUNDS

NET MOVEMENT IN FUNDS
Net movement in funds are stated after charging:
	2025	2024
	£	£
Auditor’s remuneration:
- Statutory audit of the parent and group	8,100	7,800
- Statutory audit of the subsidiary	22,750	21,885
- Other non-audit services	4,620	9,995
- Taxation compliance services	7,315	5,260
Amortisation	26,779	12,110
Depreciation	253,637	250,813
Operating lease rentals	107,042	102,558

10 TAXATION

No Liability to UK corporation tax arose on ordinary activities for the year ended 31 July 2025 or the year ended 31 July 2024.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

11 INTANGIBLE FIXED ASSETS

Group

Cost At 1 August 2024 Additions – separately acquired At 31 July 2025 Amortisation At 1 August 2024 Amortisation charged in the year At 31 July 2025 Net book value 31 July 2025 Net book value 31 July 2024	Software and licences £ 124,401 242,508
	366,909
	43,869 26,779
	70,648
	296,261
	80,532

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.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

12 TANGIBLE FIXED ASSETS

Group

Cost At 1 August 2024 Additions At 31 July 2025 Depreciation At 1 August 2024 Depreciation charged in the year At 31 July 2025 Net book value 31 July 2025 Net book value 31 July 2024	Freehold property £ 1,043,582 - 1,043,582 167,086 33,260 200,346 843,236 876,496	Leasehold improvements £ 3,665,768 - 3,665,768 805,190 161,035 966,225 2,699,543 2,860,578	Fixtures and fittings £ 164,573 23,421 187,994 163,961 289 164,250 23,744 612	Office equipment £ 314,997 38,263 353,260 220,733 59,053 279,786 73,474 94,264	Total £ 5,188,920 61,684
					5,250,604
					1,356,970 253,637
					1,610,607
					3,639,997
					3,831,950

Company

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

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

FOR THE YEAR ENDED 31 JULY 2025
13 FIXED ASSET INVESTMENTS Group Listed investments Movements in fixed asset investments Valuation At 1 August 2024 Additions Disposals Valuation changes At 31 July 2025 Carrying amount At 31 July 2025 At 31 July 2024 Charitable Company Listed investments Investments in group undertakings Movements in fixed asset investments Cost or valuation At 1 August 2024 Additions Disposals Valuation changes At 31 July 2025 Carrying amount At 31 July 2025 At 31 July 2024	2025 £ 3,092,795 2025 £ 3,092,795 51 3,092,846 Listed investments £ 2,963,555 421,959 (424,750) 132,031 3,092,795 3,092,795 2,963,555	2024 £ 2,963,555
		Listed investments £ 2,963,555 421,959 (424,750) 132,031
		3,092,795
		3,092,795
		2,963,555
		2024 £ 2,963,555 51
		2,963,606
		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.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

13 FIXED ASSET INVESTMENTS (continued)

SUBSIDIARY UNDERTAKINGS

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 as follows:

Norland College Limited Norland College Limited STOCKS Stock of supplies and finished goods	Income for the year £ 6,686,052 Income for the year £ 5,658,543 Group 2025 £ 8,705	2025 Expenditure for the year £ Profit for the year £ Capital and reserves £ (6,442,163) 243,889 4,933,745 2024 Expenditure for the year £ Profit for the year £ Capital and reserves £ (5,577,323) 81,220 4,831,896 Charitable Company 2024 £ 2025 £ 2024 £ 8,237 - -

14 STOCKS

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

15 DEBTORS

Group 2025 £ 2024 £ Trade debtors 162,565 63,486 Other debtors 13,808 11,943 Prepayments and accrued income 325,508 294,155 501,881 369,584 16 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2025 £ 2024 £ Trade creditors 152,831 169,390 Taxation and social security costs 143,882 122,963 Amounts owed to group undertakings - - Other creditors 32,614 11,291 Accruals and deferred income 181,502 329,795 510,829 633,439 17 DEFERRED INCOME Group 2025 £ 2024 £ Deferred income is included within: Creditors due within one year 15,277 126,937 Deferred income at 1 August 126,937 43,000 Released from previous years (126,937) (43,000) Resources deferred in the year 15,277 126,937 Deferred income at 31 July 15,277 126,937		Charitable Company 2025 £ 2024 £ - - 400 1,000 2,033 - 2,433 1,000 Charitable Company 2025 £ 2024 £ - - - - 32,439 86,025 - - 17,352 18,717 49,791 104,742 Charitable Company 2025 £ 2024 £ - - - - - - - - - -	Charitable Company 2025 £ 2024 £ - - 400 1,000 2,033 - 2,433 1,000 Charitable Company 2025 £ 2024 £ - - - - 32,439 86,025 - - 17,352 18,717 49,791 104,742 Charitable Company 2025 £ 2024 £ - - - - - - - - - -


			- - -
			-

Deferred income of £15,277 (2024: £126,937) relates to a commercial contract with Emotion Coaching UK.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

18 FINANCIAL INSTRUMENTS Carrying amount of financial assets Equity instruments measured at fair value 19 FUNDS Group At 1 August 2024 £ Income £ RESTRICTED FUNDS Benevolent fund 355,059 11,482 UNRESTRICTED FUNDS General fund 5,499,724 6,704,227 Designated funds 2,090,000 - TOTAL FUNDS 7,944,783 6,715,709 Charitable Company At 1 August 2024 £ Income £ RESTRICTED FUNDS Benevolent fund 355,059 11,482 UNRESTRICTED FUNDS General fund 667,877 213,239 Designated funds 2,090,000 - TOTAL FUNDS 3,112,936 224,721	2025 £ 3,092,795 Expenditure £ Transfers and other gains/(losses) £ (10,266) 2,966 (6,498,524) (450,935) - 580,000 (6,508,790) 132,031 Expenditure £ Transfers and other gains/(losses) £ (10,266) 2,966 (109,381) (450,935) - 580,000 (119,647) 132,031	2024 £ 2,963,555
		At 31 July 2025 £ 359,241 5,254,492 2,670,000
		8,283,733
		At 31 July 2025 £ 359,241 320,800 2,670,000
		3,350,041

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

19 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 2023 £ 329,366 5,350,131 2,090,000 7,769,497 At 1 August 2023 £ 329,366 351,095 2,090,000 2,770,461	Income £ 20,746 5,638,888 - 5,659,634 Income £ 20,746 309,179 - 329,925	Expenditure £ (12,313) (5,607,637) - (5,619,950) Expenditure £ (12,313) (110,739) - (123,052)	Transfers and other gains/(losses) £ 17,260 118,342 - 135,602 Transfers and other gains/(losses) £ 17,260 118,342 - 135,602	At 31 July 2024 £ 355,059 5,499,724 2,090,000
					7,944,783
					At 31 July 2024 £ 355,059 667,877 2,090,000
					3,112,936

Designated funds

Funds of £1,780,000 (2024: £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 £890,000 (2024: £590,000) is designated in respect of the anticipated cost of replacing buildings.

Benevolent fund

In 2022, 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

THE NORLAND FOUNDATION

20 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Restricted funds £ - - 322,801 36,440	General fund £ 296,261 3,639,997 99,994 1,218,240	Total funds £ 296,261 3,639,997 3,092,795 1,254,680
359,241	5,254,492	8,283,733
Restricted funds £ 322,801 36,440	General fund £ 100,045 220,755	Total funds £ 3,092,846 257,195
359,241	320,800	3,350,041
	General fund £ 80,532 3,831,950 553,721 1,033,521 5,499,724 General fund £ 553,772 114,105 667,877	Total funds £ 80,532 3,831,950 2,963,555 1,068,746
		7,944,783
		Total funds £ 2,963,606 149,330
		3,112,936

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

21 CONTROL

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

22 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.

23 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 Charitable Company	2025 £ 107,042 384,365 2,255,846 2,747,253	2024 £ 101,435 354,639 1,912,098
		2,368,172

The Charitable Company has no financial commitments.

24 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	2025 £ 250,043 115,943 365,986	2024 £ 222,877 110,455
		333,332

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 £46,209 (2024: £42,795) were outstanding and included in creditors.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

24 RETIREMENT BENEFITS (CONTINUED)

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.

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 2023 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 in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2023 and the Employer Contribution Rate was assessed using agreed assumptions in line with the Directions and was accepted at the original assessed rate as there was no cost control mechanism breach.

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

Total scheme liabilities for service (pensions currently payable and the estimated cost of future benefits) of £262 billion
Value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) of £222 billion
Notional past service deficit of £39.8 billion (2016 £22 billion)
Discount rate is 1.7% in excess of CPI (2016 2.4% in excess of CPI) (this change has had the greatest financial significance)

As a result of the valuation, new employer contribution rates were set at 28.68% (including a 0.08% administration levy) of pensionable pay from April 2024 to 1 April 2027 (compared to 23.68% under the previous valuation including a 0.08% administration levy).

The employer’s pension costs paid to TPS in the period amounted to £250,043 (2024: £222,877).

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

25 NOTES TO THE STATEMENT OF CASH FLOWS

Cash generated from operations Net surplus Adjustments for: Investment income Amortisation of intangible assets Depreciation of tangible fixed assets Net gains on investments Movements in working capital: (Increase)/decrease in stock (Increase)/decrease in debtors Decrease in creditors Net cash inflow/(outflow) from operating activities 26 ANALYSIS OF CHANGES IN NET FUNDS 1 August 2024 £ Cash at bank and in hand 1,324,364	2025 £ 338,950 (105,246) 26,779 253,637 (132,031) (468) (132,297) (122,610) 126,714 Cash flows £ (69,441)	2024 £ 175,286 (95,240) 12,110 250,813 (135,602) 406 254,498 (131,568)
		330,703
		31 July 2025 £ 1,254,923

27 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS

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

Prof. D Timms (a director of the company) engaged in consultancy work (£4,000) for the College in support of an OfS application for University title status. This work was invoiced and approved in line with the College’s Financial Regulations.

Dr Janet Rose (Principal) is a director of Emotion Coaching UK (a Not for Profit organisation). During the year ended 31 July 2025, Norland entered into a partnership with Emotion Coaching UK, in order to deliver Emotion Coaching training (evidence-based co-regulation strategy for children) to numerous early years settings across the UK. The project is funded by the Education Endowment Foundation and Early Years Stronger Practice Hubs, with total funding over the three year project of £195,073 from the Education Endowment Foundation and £204,830 from the Stronger Practice Hubs. This work and related party transaction was invoiced and approved in line with the College’s Financial Regulations.

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.

During the year ended 31 July 2025, grant funding totaling £178,252 was received from the Education Endowment Foundation in relation to the project. Of this, £287,562 was recognised during the period in line with project delivery, with £15,277 carried forward as deferred income to match delivery at a future date. £106,920 was paid to Emotion Coaching UK as delivery partner

THE NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

and Norland received £19,371 for administrative and financial services. The Board of Directors are satisfied as to the probity of the relationship.

27 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)

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

2025
2024
£
£
142,040
248,411
31,599
60,317
21,424
20,121
51
51
32,379
86,025

111111111111111116#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 2025

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

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

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

OBJECTIVES AND AIMS

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

the advancement of education for the public benefit, in particular (but not limited to) early years education, by (but not limited to):
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;
b. the promotion of best practice in early years care and the education of young children generally;
c. the provision of funding for specific projects and/or research relating to the promotion of best practice in early years care and education;
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:
a. the education of children of early years age and student or qualified childcare and education practitioners of early years education;
b. the provision of funding for specific projects and/or research to promote social inclusion; and
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.

ACTIVITIES

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

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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

support the College’s Student Protection Plan;
make provision for additional properties for educational purposes;
cover six to nine months of the Charity’s core operating costs;
provide a Benevolent Fund to financially assist persons connected with Norland College; and
• meet its other charitable objects.

PUBLIC BENEFIT

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.

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 NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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 (2025/26) met its target with 107 first years enrolling in September 2025.

Norland was awarded top small or specialist provider in the 2025 Whatuni Student Choice awards, making the College a top two Whatuni winner for seven consecutive years.

RISK MANAGEMENT

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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

Fall in Investment Performance

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

1. Affordability

2. 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.

RESERVES POLICY

The reserves policy ensures the Charity:

Builds sufficient unrestricted reserves to safeguard its operational needs.
Holds sufficient unrestricted reserves to meet its charitable objectives.
Holds unrestricted designated reserves to support the College to meet its Student Protection Plan.
Builds sufficient unrestricted designated reserves to ensure that, in the long-term, the College has suitable property from which to operate.

At the year end, the Charity had total surplus unrestricted reserves of £320,800 (2024: £667,877) and total surplus unrestricted designated reserves of £2,670,000 (2024: £2,090,000).

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

FINANCIAL REVIEW

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

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

INVESTMENT PORTFOLIO PERFORMANCE

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.

GOING CONCERN

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

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Investment in Subsidiary Company

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

Appointment of Trustees

Induction and training of Trustees

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 NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025

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

Related Parties

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

Remuneration

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.

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

THE NORLAND FOUNDATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2025 STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

The Report of the Trustees, was approved by the Trustees on the 8[th] December 2025 and signed on their behalf.

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

THE NORLAND FOUNDATION

TRUSTEES’ RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 JULY 2025

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

Opinion

In our opinion the financial statements:

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 July 2025 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Basis for 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.

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

Other information

We have nothing to report in this regard.

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Trustees, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors’ Report and the Strategic Report included within the Report of the Trustees have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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:

adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

The extent to which the audit was considered capable of detecting irregularities, including fraud

THE NORLAND FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

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

obtained an understanding of the nature of the sector, including the legal and regulatory framework that the group and parent charitable company operate in and how the group and parent charitable company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud

Use of our report

THE NORLAND FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE NORLAND FOUNDATION FOR THE YEAR ENDED 31 JULY 2025

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

15 December 2025

Date: ……………………….

THE NORLAND FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2025

Restricted funds £ - 11,482 - 11,482	Total 2025 £	Total 2024 £
	1,200 105,246 6,609,263 6,715,709 31,397 35,227 6,442,166 6,508,790 206,919 132,031 338,950 7,944,783 8,283,733	11,362 95,240 5,553,032
		5,659,634
		31,864 10,750 5,577,336
1,118 9,148 - 10,266 1,216 2,966 4,182 355,059 359,241
		5,619,950
		39,684 135,602
		175,286
		7,769,497
		7,944,783

All amounts derive from continuing activities.

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

Company Registration No. 11077904

THE NORLAND FOUNDATION CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2025

Notes 2025 £ FIXED ASSETS Intangible assets 11 Tangible assets 12 Investments 13 CURRENT ASSETS Stock 14 8,705 Debtors 15 501,881 Cash at bank and in hand 1,254,923 1,765,509 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 16 (510,829) NET CURRENT ASSETS 1,254,680 TOTAL NET ASSETS THE FUNDS OF THE CHARITY: RESTRICTED FUNDS 19 UNRESTRICTED FUNDS General funds 19 Designated funds 19 TOTAL FUNDS	2025 £ 296,261 3,639,997 3,092,795	2024 £ 8,237 369,584 1,324,364	2024 £ 80,532 3,831,950 2,963,555
	7,029,053		6,876,037 1,068,746
1,765,509 (510,829)		1,702,185 (633,439)
1,254,680
	8,283,733		7,944,783
	359,241 5,254,492 2,670,000		355,059 5,499,724 2,090,000
	8,283,733		7,944,783

The financial statements on pages 15 to 38 were approved by the Board of Trustees and authorised for issue on 8[th] December 2025 and are signed on their behalf by:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

Company Registration No. 11077904

THE NORLAND FOUNDATION COMPANY BALANCE SHEET AS AT 31 JULY 2025

Notes 2025 £ FIXED ASSETS Investments 13 CURRENT ASSETS Debtors 15 2,433 Cash at bank and in hand 304,552 306,985 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 16 (49,791) NET CURRENT ASSETS TOTAL NET ASSETS THE FUNDS OF THE CHARITY: RESTRICTED FUNDS Benevolent Fund 19 UNRESTRICTED FUNDS General funds 19 Designated funds 19 TOTAL FUNDS	2025 £ 3,092,846 257,195	2024 £ 1,000 253,072	2024 £ 2,963,606 149,330
306,985 (49,791)		254,072 (104,742)

	3,350,041		3,112,936
	359,241 320,800 2,670,000		355,059 667,877 2,090,000
	3,350,041		3,112,936

The financial statements on pages 15 to 38 were approved by the Board of Trustees and authorised for issue on 8[th] December 2025 and are signed on their behalf by:

Trustee:

M C Clarke MA FCA D.Univ FRSA

P H Watkins FCA

THE NORLAND FOUNDATION CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025

HE NORLAND FOUNDATION ONSOLIDATED STATEMENT OF CASH FLOWS OR THE YEAR ENDED 31 JULY 2025
Notes 2025 £ CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities 25 126,714 NET CASH GENERATED BY OPERATING ACTIVITIES 126,714 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of intangible assets (242,508) Purchase of tangible fixed assets (61,684) Purchase of investments (421,959) Proceeds from sale of investments 424,750 Investment income 105,246 NET CASH USED IN INVESTING ACTIVITIES (196,155) (DECREASE)/INCREASEIN CASH IN THE YEAR (69,441) CASH AND CASH EQUIVALENTS AT 1 AUGUST 1,324,364 CASH AND CASH EQUIVALENTS AT 31 JULY 1,254,923	2024 £ 330,703
	330,703
	(10,031) (54,595) (159,121) - 95,240
	(128,507)
	202,196
	1,122,168
	1,324,364

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

1 ACCOUNTING POLICIES

GENERAL INFORMATION

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

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

GOING CONCERN

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

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

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

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:

Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flow and related notes and disclosures; and
Section 11 ‘Basic Financial Instruments’ & Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values.

GROUP FINANCIAL STATEMENTS

INCOME

All income included in the statement of financial activities is recognised when the Group 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.

EXPENDITURE

ALLOCATION AND APPORTIONMENT OF COSTS

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

1 ACCOUNTING POLICIES (continued)

FUND ACCOUNTING

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 Charitable Company’s financial statements, interests in subsidiaries are measured at cost less any accumulated impairment losses.

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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

THE NORLAND FOUNDATION

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

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

FINANCIAL INSTRUMENTS

FINANCIAL ASSETS

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

1 ACCOUNTING POLICIES (continued)

OTHER FINANCIAL ASSETS

FINANCIAL LIABILITIES

2 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period of revision and, if relevant, future periods.

The Trustees do not consider there to be any other critical accounting estimates or judgements that have a material effect on the financial statements.

3 DONATIONS

	2025	2024
	£	£
Donations received	1,200	11,362

In the current year, donations received of £1,200 (2024: £1,362) is unrestricted and £Nil (2024: £10,000) is restricted.

4 INVESTMENT INCOME

Investment income Bank interest received	2025 £ 81,480 23,766 105,246	2024 £ 70,152 25,088
		95,240

In the current year, investment income of £11,482 (2024: £10,746) is restricted.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

5 CHARITABLE ACTIVITIES EXPENDITURE

		Support
	Direct	Costs (see	2025	2024
	Costs	note 6)	Total	Total
	£	£	£	£
Charitable activities	-	31,397	31,397	31,864

In the current year, £1,118 (2024: £1,563) of expenditure from charitable activities relating to investment management charges was restricted.

6 SUPPORT COSTS

SUPPORT COSTS
Support Insurance Investment management fees Governance Bank charges Audit fees Accountancy fees Tax compliance fees Statutory compliance fees Trustees’ expenses	2025 £ 2,033 15,007 8 8,760 2,850 2,705 34 - 31,397	2024 £ 2,033 14,575 11 7,560 5,280 2,100 13 292
		31,864

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.

7 STAFF COSTS

Wages and salaries Social security costs Pension costs	2025 £ 2,993,770 347,010 365,986 3,706,766	2024 £ 2,887,449 302,126 333,332
		3,522,907

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

7 STAFF COSTS (continued)

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	2025 No 7 46 26 9 1 89	2024 No 7 46 22 9 1
		85

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:
	2025	2024
	No	No
£60,001 - £70,000	2	3
£70,001 - £80,000	1	-
£80,001 - £90,000	2	1
£90,001 - £100,000	-	1
£110,001 - £120,000	1	-
£120,001 - £130,000	-	1
£130,001 - £140,000	1	-

Retirement benefits of £110,258 (2024: £96,446) are accruing to seven (2024: six) of these members of staff.

Key management personnel received aggregate remuneration including employer pension contributions of £760,278 (2024: £726,531).

8 TRUSTEES REMUNERATION

During the current period, no Trustees (2024: three) were reimbursed expenses (2025: £nil; 2024: £292) relating to travel costs.

THE NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

9 NET MOVEMENT IN FUNDS

NET MOVEMENT IN FUNDS
Net movement in funds are stated after charging:
	2025	2024
	£	£
Auditor’s remuneration:
- Statutory audit of the parent and group	8,100	7,800
- Statutory audit of the subsidiary	22,750	21,885
- Other non-audit services	4,620	9,995
- Taxation compliance services	7,315	5,260
Amortisation	26,779	12,110
Depreciation	253,637	250,813
Operating lease rentals	107,042	102,558

10 TAXATION

No Liability to UK corporation tax arose on ordinary activities for the year ended 31 July 2025 or the year ended 31 July 2024.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

11 INTANGIBLE FIXED ASSETS

Group

Cost At 1 August 2024 Additions – separately acquired At 31 July 2025 Amortisation At 1 August 2024 Amortisation charged in the year At 31 July 2025 Net book value 31 July 2025 Net book value 31 July 2024	Software and licences £ 124,401 242,508
	366,909
	43,869 26,779
	70,648
	296,261
	80,532

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.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

12 TANGIBLE FIXED ASSETS

Group

Cost At 1 August 2024 Additions At 31 July 2025 Depreciation At 1 August 2024 Depreciation charged in the year At 31 July 2025 Net book value 31 July 2025 Net book value 31 July 2024	Freehold property £ 1,043,582 - 1,043,582 167,086 33,260 200,346 843,236 876,496	Leasehold improvements £ 3,665,768 - 3,665,768 805,190 161,035 966,225 2,699,543 2,860,578	Fixtures and fittings £ 164,573 23,421 187,994 163,961 289 164,250 23,744 612	Office equipment £ 314,997 38,263 353,260 220,733 59,053 279,786 73,474 94,264	Total £ 5,188,920 61,684
					5,250,604
					1,356,970 253,637
					1,610,607
					3,639,997
					3,831,950

Company

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

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

FOR THE YEAR ENDED 31 JULY 2025
13 FIXED ASSET INVESTMENTS Group Listed investments Movements in fixed asset investments Valuation At 1 August 2024 Additions Disposals Valuation changes At 31 July 2025 Carrying amount At 31 July 2025 At 31 July 2024 Charitable Company Listed investments Investments in group undertakings Movements in fixed asset investments Cost or valuation At 1 August 2024 Additions Disposals Valuation changes At 31 July 2025 Carrying amount At 31 July 2025 At 31 July 2024	2025 £ 3,092,795 2025 £ 3,092,795 51 3,092,846 Listed investments £ 2,963,555 421,959 (424,750) 132,031 3,092,795 3,092,795 2,963,555	2024 £ 2,963,555
		Listed investments £ 2,963,555 421,959 (424,750) 132,031
		3,092,795
		3,092,795
		2,963,555
		2024 £ 2,963,555 51
		2,963,606
		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.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

13 FIXED ASSET INVESTMENTS (continued)

SUBSIDIARY UNDERTAKINGS

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 as follows:

Norland College Limited Norland College Limited STOCKS Stock of supplies and finished goods	Income for the year £ 6,686,052 Income for the year £ 5,658,543 Group 2025 £ 8,705	2025 Expenditure for the year £ Profit for the year £ Capital and reserves £ (6,442,163) 243,889 4,933,745 2024 Expenditure for the year £ Profit for the year £ Capital and reserves £ (5,577,323) 81,220 4,831,896 Charitable Company 2024 £ 2025 £ 2024 £ 8,237 - -

14 STOCKS

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

15 DEBTORS

Group 2025 £ 2024 £ Trade debtors 162,565 63,486 Other debtors 13,808 11,943 Prepayments and accrued income 325,508 294,155 501,881 369,584 16 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2025 £ 2024 £ Trade creditors 152,831 169,390 Taxation and social security costs 143,882 122,963 Amounts owed to group undertakings - - Other creditors 32,614 11,291 Accruals and deferred income 181,502 329,795 510,829 633,439 17 DEFERRED INCOME Group 2025 £ 2024 £ Deferred income is included within: Creditors due within one year 15,277 126,937 Deferred income at 1 August 126,937 43,000 Released from previous years (126,937) (43,000) Resources deferred in the year 15,277 126,937 Deferred income at 31 July 15,277 126,937		Charitable Company 2025 £ 2024 £ - - 400 1,000 2,033 - 2,433 1,000 Charitable Company 2025 £ 2024 £ - - - - 32,439 86,025 - - 17,352 18,717 49,791 104,742 Charitable Company 2025 £ 2024 £ - - - - - - - - - -	Charitable Company 2025 £ 2024 £ - - 400 1,000 2,033 - 2,433 1,000 Charitable Company 2025 £ 2024 £ - - - - 32,439 86,025 - - 17,352 18,717 49,791 104,742 Charitable Company 2025 £ 2024 £ - - - - - - - - - -


			- - -
			-

Deferred income of £15,277 (2024: £126,937) relates to a commercial contract with Emotion Coaching UK.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

18 FINANCIAL INSTRUMENTS Carrying amount of financial assets Equity instruments measured at fair value 19 FUNDS Group At 1 August 2024 £ Income £ RESTRICTED FUNDS Benevolent fund 355,059 11,482 UNRESTRICTED FUNDS General fund 5,499,724 6,704,227 Designated funds 2,090,000 - TOTAL FUNDS 7,944,783 6,715,709 Charitable Company At 1 August 2024 £ Income £ RESTRICTED FUNDS Benevolent fund 355,059 11,482 UNRESTRICTED FUNDS General fund 667,877 213,239 Designated funds 2,090,000 - TOTAL FUNDS 3,112,936 224,721	2025 £ 3,092,795 Expenditure £ Transfers and other gains/(losses) £ (10,266) 2,966 (6,498,524) (450,935) - 580,000 (6,508,790) 132,031 Expenditure £ Transfers and other gains/(losses) £ (10,266) 2,966 (109,381) (450,935) - 580,000 (119,647) 132,031	2024 £ 2,963,555
		At 31 July 2025 £ 359,241 5,254,492 2,670,000
		8,283,733
		At 31 July 2025 £ 359,241 320,800 2,670,000
		3,350,041

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

19 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 2023 £ 329,366 5,350,131 2,090,000 7,769,497 At 1 August 2023 £ 329,366 351,095 2,090,000 2,770,461	Income £ 20,746 5,638,888 - 5,659,634 Income £ 20,746 309,179 - 329,925	Expenditure £ (12,313) (5,607,637) - (5,619,950) Expenditure £ (12,313) (110,739) - (123,052)	Transfers and other gains/(losses) £ 17,260 118,342 - 135,602 Transfers and other gains/(losses) £ 17,260 118,342 - 135,602	At 31 July 2024 £ 355,059 5,499,724 2,090,000
					7,944,783
					At 31 July 2024 £ 355,059 667,877 2,090,000
					3,112,936

Designated funds

Benevolent fund

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

THE NORLAND FOUNDATION

20 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Restricted funds £ - - 322,801 36,440	General fund £ 296,261 3,639,997 99,994 1,218,240	Total funds £ 296,261 3,639,997 3,092,795 1,254,680
359,241	5,254,492	8,283,733
Restricted funds £ 322,801 36,440	General fund £ 100,045 220,755	Total funds £ 3,092,846 257,195
359,241	320,800	3,350,041
	General fund £ 80,532 3,831,950 553,721 1,033,521 5,499,724 General fund £ 553,772 114,105 667,877	Total funds £ 80,532 3,831,950 2,963,555 1,068,746
		7,944,783
		Total funds £ 2,963,606 149,330
		3,112,936

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

21 CONTROL

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

22 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.

23 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 Charitable Company	2025 £ 107,042 384,365 2,255,846 2,747,253	2024 £ 101,435 354,639 1,912,098
		2,368,172

The Charitable Company has no financial commitments.

24 RETIREMENT BENEFITS

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	2025 £ 250,043 115,943 365,986	2024 £ 222,877 110,455
		333,332

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 £46,209 (2024: £42,795) were outstanding and included in creditors.

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

24 RETIREMENT BENEFITS (CONTINUED)

Teachers’ Pension Scheme

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

Valuation of the Teachers’ Pension Scheme

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

Total scheme liabilities for service (pensions currently payable and the estimated cost of future benefits) of £262 billion
Value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) of £222 billion
Notional past service deficit of £39.8 billion (2016 £22 billion)
Discount rate is 1.7% in excess of CPI (2016 2.4% in excess of CPI) (this change has had the greatest financial significance)

The employer’s pension costs paid to TPS in the period amounted to £250,043 (2024: £222,877).

THE NORLAND FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

25 NOTES TO THE STATEMENT OF CASH FLOWS

Cash generated from operations Net surplus Adjustments for: Investment income Amortisation of intangible assets Depreciation of tangible fixed assets Net gains on investments Movements in working capital: (Increase)/decrease in stock (Increase)/decrease in debtors Decrease in creditors Net cash inflow/(outflow) from operating activities 26 ANALYSIS OF CHANGES IN NET FUNDS 1 August 2024 £ Cash at bank and in hand 1,324,364	2025 £ 338,950 (105,246) 26,779 253,637 (132,031) (468) (132,297) (122,610) 126,714 Cash flows £ (69,441)	2024 £ 175,286 (95,240) 12,110 250,813 (135,602) 406 254,498 (131,568)
		330,703
		31 July 2025 £ 1,254,923

27 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS

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

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 NORLAND FOUNDATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2025

and Norland received £19,371 for administrative and financial services. The Board of Directors are satisfied as to the probity of the relationship.

27 RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)

The intergroup transactions and year end balances were:

2025
2024
£
£
142,040
248,411
31,599
60,317
21,424
20,121
51
51
32,379
86,025

STRICTLY PRIVATE & CONFIDENTIAL

Audit findings report

Issued to:

Norland College Year ended 31 July 2025

2 January 2026

3 4 7 9

Executive summary Key audit risk findings Qualitative aspects of accounting Recommendations on controls Appendix

Executive summary

Unadjusted audit misstatements as proportion of materiality

Status and overview of the audit

Our audit progressed as planned and the work is now complete.

Unadjusted audit misstatements £Nil

Final materiality

----- Start of picture text -----
MATERIALITY
----- End of picture text -----

Materiality has not changed since we presented our audit plan.

----- Start of picture text -----
£175k
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Unadjusted misstatements

A list of the unadjusted misstatements is included in the Appendix. No unadjusted misstatements have been noted above the clearly trivial threshold.

Audit findings report | 3

Key audit risk findings

(See Appendix for risk description and planned work)

We have set out below details of those areas that we considered to be the key audit risks arising when we presented our audit plan. There have been no changes to the risks identified during the course of the audit:

----- Start of picture text -----
Significant risks
1
3
Higher risks
7 5
2
6
4
Other risks
Likelihood of misstatement
Magnitude of misstatement
----- End of picture text -----*

= ISA 240 'The auditor’s responsibilities relating to Fraud in an audit of financial statements' identifies that there is a presumed fraud risk in relation to revenue recognition and management override of controls. As a result, these have been classified as significant risks.

Audit risks summary Risk item Risk identified Change in risk Management override of 1  controls 2 Abu Dhabi ECA contract  3 Revenue recognition  4 Related party transactions  5 EEF Grant  New Abu Dhabi (Nannies in the 6  Park) contract 7 Going concern 

Audit findings report | 4

Audit risks

Findings
Management override of	We have reviewed all general ledger entries using our data analytics software. We have found no evidence of unusual or inappropriate entries. The ledger
controls	entries reviewed appeared to represent bona-fide business transactions.
	As was also noted last year, in the course of our testing, we noted two journal transactions which did not balance. The reason for this was investigated with the
	help of our data analytics experts and confirmed the difference was trivial at only £2. We understand from discussions with management that inquiries they have
	made with Sage, who are unsure as to how this could occur, which gives comfort there are no significant errors in the system itself. We recommend
	management maintain awareness of the issue when reviewing financial statements as part of normal month end processing.
	We performed specific testing over user IDs within the system to understand who is posting certain journals to the ledger and confirmed these to be in line with
	our expectations and understanding.
	We have reviewed key judgments and estimates. Further commentary can be found on these below. No significant transactions have been noted outside the
	ordinary course of business for the group.
Abu Dhabi ECA contract	We updated our review of the Abu Dhabi (ECA) contract and confirmed no specific changes to terms in the agreement. We noted that whilst the contract itself
	extends to August 2025, the second phase of the contract was effectively cut short due to cost saving measures by the ECA, and therefore no further income or
	expenditure has been recognised in the 2025 financial year. No concerns or issues were raised.
Revenue recognition	We performed substantive analytical review procedures by performing a proof in total over fee income taking the number of pupils and the termly fees and
	agreed a sample back to supporting documentation to confirm the accuracy and completeness of the reports used. No material differences were noted between
	the recalculation and the reported income.
	We have also reviewed and performed substantive testing over the Agency and NQN income, and other smaller income streams; including specific testing of
	transactions around the year end. No material issues were noted with the sample tested and all were recognised in the group in accordance with the SORP
	recognition criteria.
Related party transactions	We have confirmed that the financial statements include the expected disclosures needed as per Charities SORP. This year, transactions between the previous
	FD’s husband’s business and the College were identified at planning so these were specifically reviewed in our testing. We searched the whole ledger for FY25
	and FY24 and identified trivial balances only, so these have not been disclosed and no further investigation made.
	We have reviewed the disclosures made and not noted any material misstatements regarding the completeness or accuracy of these.

Audit findings report | 5

Audit risks (continued)

Findings

EEF Grant

Building on the understanding gained of this contract from our audit work last year, we updated our work to include a late amendment to the contract from September 2025.

The contract is on a milestone basis however the total value of the contract is not allocated exactly against milestone terms; and in practise only costs incurred will be repaid by the funders, EEF. As such, management have taken a cost recovery approach to the recognition of income which we consider to be appropriate and in line with FRS102 guidance. We noted a milestone step within the contract to be completed by 31 July 2025, which earnt Norland an additional £17k of income which has not yet been recognised in the accounts. We challenged management on this and understand that in line with the above, this income has not yet been recognised as the related costs have not been incurred. Therefore, to match the budgeted income against budgeted costs the income is expected to be recognised in FY26 in line with the cost recovery basis.

As the majority of income received by Norland is passed directly to ECUK, in their position as delivery partner, the net income for Norland is not material in value and recognised based on time spent to date. We confirmed that our exercise last year to ensure appropriate recognition of this income under the FRS102 principal vs. agent criteria was still applicable and no concerns were noted with the treatment applied by management. We concluded that in this scenario Norland College is the ‘principal’ and therefore confirmed the treatment applied by management to show the total gross balances is correct.

We corroborated balances to supporting documentation such as funder invoices in our work last year (as all income released this year is from the brought forward deferred income balance) and correspondence between the different parties. No issues or concerns were noted.

Audit findings report | 6

Audit risks (continued)

Findings

New Abu Dhabi (Nannies in the Park) contract

We obtained and reviewed a copy of the draft contract between Miral and Norland College for the agreement to supply Norland Nannies to ‘Nanny in the Park’ on Yas Island in Abu Dhabi. The current version of the contract is in draft form, with finalisation underway and a more significant impact on the accounts in the 2026 financial year expected.

Within FY25, preliminary work has been undertaken by the Norland team, as set out in the Pilot contract from December 2024 over two agreed phases. We confirmed through discussion with the head of Consultancy at Norland, and review of relevant documentation and correspondence, that these two phases have been completed and the related income recognised in the accounts. In respect of a further phase, work was completed in Spring 2025 which was agreed with Miral separately to the Pilot contract, and income for this work has also been recognised. We have confirmed that further income for services not yet complete has been deferred to FY26 where it is been invoiced pre year end, which we concur is the appropriate treatment.

Overall, we understand the final contract is still a work-in-progress to confirm terms, however it is expected to be on a milestone basis going forward. We recommend that management document the 5-step revenue recognition policy used in relation to this contract for our audit next year, especially given the changes in FRS102 revenue recognition due to be implemented (see page 15 of this report for further information).

Where invoices have been raised and costs incurred, we corroborated balances to supporting documentation and no issues or concerns were noted.

We recommended management update the turnover accounting policy disclosed in the financial statements to reflect this new contract.

Going concern

Management have made an assessment of the going concern basis for Norland College, through preparing profit & loss budgets and cashflow forecasts. Subject to final review by the audit principal, we have performed testing on the forecast period and underlying assumptions made, for the period to July 2027.

Management have conducted high level analysis on the budgets by looking at key assumptions and considering mitigating factors to outweigh any downside as a result of changes in these assumptions. We have considered these assumptions and challenged management on some of the key movements from audited results for the 2025 financial year. No significant doubt is raised over the going concern assumption, which is ultimately based on a sustainable model of consistent student numbers and a carefully controlled cost base with potential upside from additional consultancy projects.

We concluded that there is no material uncertainty over these matters and our audit opinion has not been modified in respect of this. We have reviewed the disclosures within the Trustees Report and Strategic Report and confirmed that adequate disclosures have been made.

Audit findings report | 7

Qualitative aspects of accounting

Management judgements and accounting estimates

The following areas are considered to be the principal management judgements and estimates. The graphic below visually represents the impact (lower or higher) on the financial statements of a change in management’s estimate. In overview, a reasonably possible change in estimate that has a low impact means that such a change will have limited impact on the financial statements.

Areas of judgement / estimate	Low impact	High impact
Provision for bad debts
Accruals
Useful economic lives of fixed assets
Recognition of income on grants and contracts

Audit findings report | 8

Recommendations on controls

We have set out below recommendations on internal controls which came to our attention during the course of our audit work. This does not constitute a comprehensive statement of all internal control matters or of all improvements which may be made and has addressed only those matters which have come to our attention as a result of the audit procedures performed. An audit is not designed to identify all matters that may be relevant to you and accordingly the audit does not ordinarily identify all such matters.

Control observation Recommendations and response

Journals imbalance

Recommendations

We noted in our testing of journals for Norland College that there are two transactions which don’t balance, leaving a net imbalance on the ledger of £2. This presents a risk over errors or fraud in the ledger.

We recommended management contact the Sage support team to understand how these journals are created and ensure there is no risk of unbalanced postings being made. Following further discussions with management we understand conversations with Sage have confirmed it is not possible to post unbalanced journals, however the risk should be considered by management in their normal financial review procedures.

Control recommendation

----- Start of picture text -----
Significant control
recommendation
Assessment
key Other control recommendation
Journals imbalance
PO approvals
Supplier set up
----- End of picture text -----*

* = these represent a risk of material misstatement to the financial results

Management response

The Trial balance at the end of year 2024-2025 showed a difference of £0.01 (not £2 as reported). The £0.01 imbalance was noted in the Trial Balance sent to RSM on the 25/09/2025. The imbalance relates to a legal fee accrual journal.

The Trial Balance has now been reviewed and the imbalance corrected with a Trial Balance submitted to RSM on the 20th November 2025.

Audit findings report | 9

Recommendations on controls (continued)

Control observation

Recommendations and response

PO approvals

Recommendations

We recommend use of the general user account is limited to very specific people and situations to ensure full visibility of the audit trail of who made certain approvals. We also recommend the open POs are reviewed perhaps three or four times a year to clear down any duplicated or erroneous items.

From our testing and the walkthrough above, we noted that in some cases there is a 'General User' account that can be used to raise POs. This user account can be used by any member of staff and therefore, POs could be approved by that same employee. We also noted that there are several open POs on the system which are not checked and cleared down regularly.

Management response

The Finance team has reviewed the PO process - staff with permission to create a PO can access the purchase order (PO) system (Planergy) via a generic team email address to create a PO, all PO approvals go to the budget holder / SLT. SLT (budget holders) colleagues can raise a PO via their own email log in credentials, with approval confirmed by the Principal or other SLT colleague.

Finance team schedule of business reviewed to ensure all open purchase orders in June and July are scrutinised to assist with potential year-end accruals and year-end cleardown.

Supplier set up

Recommendations

There is no formal process in regard to supplier set ups to ensure they are a) legitimate businesses and b) identify any related party relationships with budget holders.

We recommend a process is implemented to ensure all new suppliers are reviewed accordingly before purchase orders placed.

Management response

Supplier set up process circulated to SLT and Finance to note:

Budget holder set up role
Finance team role (and NatWest Bankline) for due diligence and verification
Approval / authorisation by the Budget holder.
Process to be added to Financial Regulations and Finance protocol.

Audit findings report | 10

Appendix

Summary of unadjusted misstatements

During the course of our audit no unadjusted misstatements were identified.

Financial statement disclosures

During the course of our audit, we reviewed the adequacy of the disclosures contained within the financial statements and their compliance with both relevant accounting standards and the requirements of the Companies Act 2006, Charities Act 2011, Statement of Recommended Practice 2015, Charities SORP etc. The following disclosure matters were brought to your attention and subsequently adjusted / not adjusted in the revised financial statements.

Unadjusted disclosures	Adjusted disclosures
Updates to the disclosure of directors in the company information page and Directors’ report in College. Update to the turnover accounting policy in College accounts to reflect the new consultancy income.
Correction to comparative fixed asset note total in College.

Audit findings report | 12

Other matters to be reported

Representations requested

In addition to those representation which we request on all audit assignments (http://www.rsmuk.com/standard-representations) we will be seeking specific representations from the Board on the following matters:

No specific representations expected

Independence

In accordance with the International Standard on Auditing (UK) 260 “communication with those charged with governance”, there are no changes to the details of relationships between RSM UK Audit LLP including its related entities and persons in a position to influence the conduct or outcome of the audit of Norland College and its connected parties that may reasonably be thought to bear on our independence, integrity and objectivity and the related safeguards from those disclosed in the audit plan.

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FRS 102 – upcoming changes

Effective Date: Accounting reporting periods commencing on or after 1 January 2026. Early adoption is permitted

Applicability: Entities applying FRS 102

Overview

The FRS 102 amendments fundamentally change the accounting for revenue and leases and include other amendments that could significantly affect some entities.

Other key changes affect specific elements of the accounting for share-based payments, fair value measurement, business combinations, uncertain tax positions and going concern and accounting policy disclosure.

Revenue accounting

Aligns the accounting for revenue more with IFRS 15, moving from a ‘risks and rewards’ model to an assessment of whether ‘control’ has passed to the customer.
The amendment incorporates the IFRS 15 fivestep revenue recognition model to determine how much - and when - revenue should be recognised.
Preparers will need to evaluate revenue contracts, paying particular attention to those contracts that include multiple goods and/or services, that feature potential variable consideration.

Simplifications compared with IFRS

Reduced disclosures, application of the five-step model to a portfolio of similar contracts and application for allocating discounts.

Transition

Preparers can either choose to restate comparatives in full, or to apply a modified retrospective approach and recognise any cumulative impact as an adjustment to opening retained earnings.

Lessee accounting for leases

Aligns the accounting for leases more with IFRS 16, bringing most lease arrangements for lessees on balance sheet as a right-of-use asset and associated lease liability.
Operating lease expense in the income statement is replaced by depreciation on the right-of-use asset and finance expense on the unwinding of the lease liability.
Exceptions are available for leases of low value assets and short-term leases.

Simplifications compared with IFRS

Ability for preparers to use an obtainable borrowing rate , rather than an incremental borrowing rate and simplified lease modification with fewer cases requiring reassessment of the discount rate.

Transition

No restatement of comparatives are required. Preparers generally are required to recognise right-of-use assets equal to lease liabilities on transition but are permitted to use the carrying amounts for group reporting under IFRS 16 if applicable. Similar to the transition guidance for revenue, any cumulative effect is recorded as an adjustment to opening retained earnings.

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Changes to company size limits and reduced disclosures in Directors’ Report

Overview

The UK government has published legislation The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 which has revised the monetary thresholds for company size classification and to remove certain reporting requirements in the Directors’ Report for periods commencing on or after 6 April 2025.

Transition

A ‘transition provision’ has been included. The effect is that, in relation to a financial year beginning on or after 6 April 2025, when considering qualification as a particular size by reference to a previous financial year, the amendments made by the regulations are treated as having applied in those years.

Changes to company size limits

A company or group must achieve at least two of these thresholds for two consecutive years to qualify for a category. The new thresholds are as follows (with the previous size limits included for reference).

Individual companies and groups calculated on a net basis:

Entity size	Turnover	Gross assets	Employees (no change)
Old New Old New
10 £316k £0.5m £632k £1m Micro
50 £5.1m £7.5m £10.2m £15m Small
250 £18m £27m £36m £54m Medium

Groups calculated on a gross basis:

Entity size	Turnover	Gross assets	Employees (no change)
Old New Old New
50 £6.1m £9m £12.2m £18m Small
250 £21.6m £32m £43.2m £64m Medium

Reduced disclosures in Directors’ Report

Removal of certain reporting requirements in the Directors’ report:

Information about financial instruments
Information about important events that have occurred since the end of the financial year
Information about likely future developments
Information about research and development
Information on branches
Information relating to the employment of disabled people
Information about engagement with employees
Information about engagement with customers and suppliers

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Illllil Audit risk summary taken from the audit plan

Audit risk summar y

Abu Dhabi ECA contract	Two years ago, this contract was a significant new revenue stream for the College. We understand from our planning discussions with management that the contract between the College and the Abu Dhabi Early Childhood Authority is still in place for the 2024- 2025 financial year. The revenue recognition on this contract was audited in previous years and no significant areas of concern were noted, however as the terms of the contract are split into different phases, there may be new recognition requirements which cause an increase in risk. Regardless of any changes in recognition method, the risk remains that balances may be recognised incorrectly, either due to fraud or error, and this risk is increased by the one-off nature of this contract and the inherent judgements within the recognition terms.	We will review the terms of the contract and understand any changes in terms or application from previous years. We will compare the recognition to FRS 102 and the Charities SORP criteria to ensure it is compliant. We will corroborate invoiced and receipted revenue to provide comfort over the recoverability of these amounts. We will review the disclosure required in the financial statements to ensure it gives a true and fair view subject to commercial limitations.
Revenue recognition	For Norland College Limited we need to confirm that fee income has been recognised correctly, along with ensuring that other sources of income have been recognised in the correct period. Income recognition policies for the group need to be implemented in accordance with the 3 recognition criteria of entitlement, probability and measurement included within the Charity SORP. The group could also be in receipt other sources of income including donations and legacies. This income also needs to be accounted for in accordance with the SORP criteria.	We will review the pupil fee reconciliation to ensure that income has been appropriately recognised. We shall perform detailed substantive testing over other sources of income in Norland College. Consideration shall be given to the accounting policies adopted, specifically the 3 recognition criteria of entitlement, probability and measurement in respect of other sources of income for the group.
Related party transactions	Under Charities SORP there are a number of disclosure requirements in respect of related party transactions. This includes disclosure of: • Remuneration received by Trustees; • Expenses reimbursed to Trustees; and • Transactions and year end balances with entities within the group	We will review the disclosures made in the financial statements ensuring that these are complete and accurate, including in respect of any new transaction types this year. We are aware that significant transactions with Emotion Coaching will need to be disclosed, as they were last year (see EEF grant below).

Audit risk summar continued y ( )

Risk	Description	Response
EEF Grant	Last year a new grant was provided by the Education Endowment Fund (EEF) to the College in partnership with Emotion Coaching UK. Whilst certain aspects of the accounting for the income and costs on this contract were tested last year, the continuing recognition remains a higher level risk given the judgements involved in recognition against the budget that was agreed between the different parties	We will update our documentation for any changes to the terms of the contract and ensure our understanding of the timing of income and associated costs is correct. We will compare the recognition to FRS 102 and the Charities SORP criteria to ensure revenue is recognised appropriately. We will corroborate invoiced and receipted revenue and expenditure to provide comfort over the recoverability and accuracy of these amounts. We will review the disclosure required in the financial statements to ensure it is appropriate.
New Abu Dhabi (Nannies in the Park) contract	This year we are aware of a new contract whereby Norland will provide consultancy guidance, advice, and administrative help in provision of Nannies to a holiday park in Abu Dhabi for a period of 6 months from Summer 2025. Although the majority of the income for this contract is expected to be recognised in FY26, there may be some which is recognised this year, and as the contract is brand new it is important the terms are fully understood and applied within the relevant accounting standards.	We will review and document the terms of the contract and ensure our understanding of the timing of income and associated costs is correct. We will compare the recognition to FRS 102 and the Charities SORP criteria to ensure revenue is recognised appropriately. We will corroborate any income recognised by management in FY25 to supporting documentation and applicable contract terms, and assess whether any income due to Norland has been omitted from the accounts. We will review the disclosure required in the financial statements to ensure it is appropriate.
Going concern	Major events, such as the current economic situation and geo-political issues in Ukraine and Israel represent sources of uncertainty which may expose entities to new opportunities and/or risks, or change the scale and likelihood of existing ones, that affect their business model and strategies. Particularly for Norland College and the group, such economic uncertainty stems from the ability to attract and retain sufficient student numbers. Although the risk remains in attracting enough students to support the ongoing running and maintenance of the College, as well as the management of one-off projects, we have down-graded this risk from ‘higher’ to ‘other’ – our default level of risk – this year. This reflects the ongoing trading success, reputation of the College, pipeline of future pupils, and reliable asset base, to support the going concern basis for another 12 months.	As part of our audit we will consider: • Management’s analysis of the potential impact of current geo-political and economic issues on the entity’s business model and strategies e.g. revenues, costs etc. • The forward-looking assumptions used by management in their assessments relating to asset impairment reviews, going concern, taxation liabilities, etc. • Management’s sensitivity analysis to reasonably possible changes in their assumptions, including downsides. • Supporting evidence provided by management for their assumptions, and related disclosures, and challenge where necessary. • Sufficiency of related disclosures in the financial statements, depending on the degree of sensitivity to changes in assumptions and whether there is a significant risk of causing a material adjustment to the carrying amount of assets and liabilities. • Implications, if any, for our audit report.

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RSM UK Audit LLP

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The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practises in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. The RSM network is administered by RSM International Limited, a company registered in England and Wales (company number 4040598) whose registered office is at 200 Aldersgate Street, Upper Ground Floor South, London EC1A 4HD. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug.

Our report is prepared solely for the confidential use of those charged with governance of Norland College and solely for the purpose of explaining the scope and timing of the audit, and to highlight the significant risks and other audit areas that we have focused our audit work upon. It should not be shared with any third party without our express consent. If it is shared with a third party, it should not be relied upon, and we assume no responsibility to them.

For the avoidance of doubt, the auditor is not required to design audit procedures for the specific purpose of identifying matters of governance interest, nor does the audit relieve management or those charged with governance of their responsibilities. Throughout this document the terms partner and principal are interchangeable.

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