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2021-06-30-accounts

Registered number: 07317195 Charity Number: 1189858

NCH AT NORTHEASTERN LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

NCH AT NORTHEASTERN LIMITED

Board of Trustees at report date

Dr Deanna Ranieri Dr Kenneth Henderson – resigned 25[th] January 2022 Ralph Martin II (former Chairman) – resigned 25[th] January 2022 Patricia Wood Thomas Nedell (Chairman from 25[th] January 2022) Darren Campili Robert Farquharson (appointed 9 April 2021) Trustee & CEO Julietta Tenant-Dexter (appointed 29 October 2021) – non exec Jonathan Goodwin (appointed 29 October 2021) – non exec Anthony Grayling (resigned 9 April 2021) Dr Gregory Abowd (appointed 25[th] January 2022) Diane MacGillivray (appointed 25[th] January 2022)

Key Management Personnel Robert Farquharson (Chief Executive Officer) Martin Smith (Assistant Vice President for Recruitment and Marketing for Global Campuses)

Rosalind Barrs (Registrar) Vanessa Carreras (Director of Finance, promoted Feb 2021) Naomi Goulder (Dean for Academic Development and Innovation and interim Dean of Faculties) Rebecca Morrison (Director of Student Services) Elizabeth O’Connell (Director of Admissions, Recruitment & Marketing) Sheena Van Der Merwe (Director of Resources & Operations) Scott Wildman (Assistant Vice President for Digital Innovation & Enterprise Learning) Andrew Ginger (Dean of Faculties) – resigned 24[th] September 2021 Registered Company number 07317195 Registered Charity Number 1189858 Registered Office Address Devon House, 58 St Katharine's Way, London E1W 1LP Independent Auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bankers Barclays Bank plc 1 Churchill Place London, E14 5RB Solicitors Eversheds Sutherland (International) LLP 5[th] Floor, 50/60 Station Road Cambridge, CB1 2JH

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NCH AT NORTHEASTERN LIMITED

CONTENTS

PAGE
Annual Report of the Trustees including Strategic Report 4
Independent Auditor’s report 16
Statement of Financial Activities (incorporating Income and Expenditure) 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Financial Statements 22

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NCH AT NORTHEASTERN LIMITED

ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2021

The Trustees (who are Trustees of the charitable company) present their Annual Report for the year ended 30 June 2021 under the Charities Act 2011, including the Trustee’s and Strategic Reports under the Companies Act 2006, together with the audited financial statements for the year and confirm that the latter comply with the requirements of the Charities Act 2011 and the Charities SORP 2015.

On 9th June 2020 NCH at Northeastern Limited (NCHNL) became a Registered Charity (registered charity number 1189858).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The College is governed by its Memorandum and Articles of Association, last amended on 6 April 2021.

Governing Body

The NCHNL Board of Trustees (‘The Board’) is the statutory board of the legal entity, NCH at Northeastern Limited (‘NCHNL’) owns the brand ‘New College of the Humanities’ as well as its subsidiary New College of the Humanities Limited (‘NCHL’) and through which the College operates, including its relationship with regulatory bodies and partner organisations. NCHNL Board is a limited liability company established under English and Welsh law. For the purposes of these financial statements the Trustees are referred to as Trustees.

Recruitment and Training of Trustees

The Trustees roles are filled differently. There are five Trustees appointed by Northeastern University. The Master was an appointed ex officio Trustee, and resigned from the role in April 2021. The non-executive Trustees are recruited and appointed by the nominations committee of the NCHNL Board. The College uses a Skills Matrix to identify potential gaps prior to recruiting new Trustees.

The training of the Trustees depends on each individual’s area of expertise but common areas of training would include English Higher Education Regulation and English law. This training is done either as part of the Board meetings or as required.

Organisational Management

The Board is legally responsible for the overall management and control of the College and, as such, has oversight and management of the strategic, financial and operational areas of the College’s activities and all other aspects of the College’s existence save for responsibilities delegated to the Academic Board in respect of the regulating and directing of the academic work of the College, including teaching (undergraduate and postgraduate degrees as well as degree apprenticeship programmes) and research.

The Board has ownership, oversight and management of the regulatory responsibilities and relationships of the College. In areas of academic procedures and policies it acts, as necessary, as the conduit for Academic Board (which has no separate legal standing) with the relevant regulatory body.

NCHNL Board may establish such committees as it considers necessary to carry out its responsibilities. The number of members of any such committee and the terms on which they hold and vacate office shall be determined by the Board. Reports (at least annually) from these committees shall be received and considered by the Board where appropriate.

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NCH AT NORTHEASTERN LIMITED

ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2021

The Board meets four times a year, and is supported by the following committees:

In accordance with the Articles of Association, the Board has the power to delegate responsibility (but not accountability) to committees, directors, and the management of the College.

ExCo is responsible for proposing and delivering the College’s strategy, and for managing the day-to-day activities, operations and resources of the College. The CEO chairs the meetings of the Senior Management Team (SMT), which reports to ExCo.

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ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2021

The College’s ability to deliver its charitable purpose and objectives is primarily dependent on its key management personnel (KMP)and staff. Below is a table listing all Trustees and key management personnel and their committee membership.


and their committee membership.
Name Role* The Board ExCo AC RemCo NC AB SMT
Dr Gregor Abowd Trustee X X X X
Rosalind Barrs KMP X X
Darren Campili Trustee X X X X
Vanessa Carreras KMP X
Robert Farquharson Trustee X X X X X X
Andrew Ginger (resigned) KMP X X X
Jonathan Goodwin Trustee X X X X
Naomi Goulder KMP X X
Dr Kenneth Henderson (resigned) Trustee X X X X
Ralph Martin II (resigned) Trustee X X X X
Diane MacGillivray Trustee X X X X
Rebecca Morrison KMP X X
Thomas Nedell Trustee X X X X
Elizabeth O’Connell KMP X
Dr Deanna Ranieri Trustee X X X X X
Martin Smith KMP X X
Julietta Tenant-Dexter Trustee X X X X
Sheena Van Der Merwe KMP X X
Scott Wildman KMP X X X
Patricia Wood Trustee X X X X

Structure and relationships

The company was incorporated on 16 July 2010 as Grayling Hall Limited. Since incorporation the company has had three name changes;

On 19[th] February 2019 the issued share capital in the College was purchased by Northeastern University, (an educational institution incorporated under the laws of the Commonwealth of Massachusetts, United States, being a non-stock, non-profit educational charity with tax exempt status under section 501(c)(3) of the United States Internal Revenue Code, of 360 Huntington Avenue, Boston, MA 02115, United States). As a result of this transaction the company is now a wholly owned subsidiary of Northeastern University. Following the change in ownership the company was renamed ‘NCH at Northeastern Limited’.

An application for Charity Status was submitted in March 2019 to the Charity Commission. This was granted on 9[th] June 2020, charity number 1189858. Following the award of charitable status the College is now controlled by the Board.

Subsidiaries & Linked Charities

The College has a wholly owned non-charitable subsidiary, New College of the Humanities Limited (NCHL) (company number 07917776) registered in England and Wales and limited by shares. This company was responsible for the provision of the Masters degree awarded by Swansea University, under a validation agreement, which came to an end last year when the College obtained its own Taught Degree Awarding Powers. There were minor accounting transactions in the year but for all intents and purposes this entity was dormant and it is expected that it will continue in a dormant state for the foreseeable future. This company is not consolidated on the grounds of immateriality.

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ANNUAL REPORT OF THE TRUSTEES

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The College also has an associated charity, New College of Humanities Trust (Trust)(charity number 1141608), which was a separate educational charity whose objectives are to award financial support or rewards to students at the College. It had three Trustees two of which are Trustees of the College and one who is an employee of Northeastern University. During the year the Trustees decided that the activities of the Trust could be continued within the College and the Trust can be closed. Accordingly, the remaining assets of the Trust were transferred to the College where they have been recognised as a separate restricted fund which will be disbursed in line with Trust objectives.

Risk Management

The Risk Management Strategy is designed to support this mission by assessing and managing the risks to the College achieving its stated mission and to ensure that the College is also protecting its stakeholders to which it has responsibilities, such as students, staff, funding bodies, partners, suppliers and the general public. This strategy forms part of the College’s control and governance structure and it is designed to give summary guidance for those different parts of the College who are responsible for managing risk and for ensuring that their decisions are implemented.

The risk management objectives of the College are to:

These objectives will be achieved by:

The Board has ultimate responsibility for the total risk exposure of the College by:

To support it in exercising these responsibilities, the Board will receive an annual report from ExCo, on the effectiveness of the risk management process in the College, making recommendations where appropriate.

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ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2021

ExCo exercise their responsibility for risks by:

The CEO will report, on ExCo’s behalf, to the Board on an annual basis as to the approach to risk faced by the College, and the management of it, and in each the Board meeting will report on any incidents and/or changes to the level of risk faced by the College and the approach to managing those changed circumstances. The framework for these discussions at the Board will be the Risk Register. The Trustees are cognisant of the Charity Commission's Governance Code and intend to carry out an assessment of compliance against the Code’s seven principles in the coming year.

Principal Risks and Uncertainties Facing the Business

The principal risks that have been identified include:

Employment policy

The College aims to be an equal opportunity employer and to apply objective criteria to assess merit and make decisions on selection, promotion and other employment-related issues. It aims to ensure that no job applicant, employee or worker receives less favourable treatment on the grounds of race, colour, national or ethnic origins, sex, sexual orientation, marital status, perceived sexuality, disability, membership or nonmembership of trade unions, ‘spent’ convictions of ex-offenders, class, age, political views or activity, religion or belief.

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STRATEGIC REPORT

OBJECTIVES, AIMS AND ACTIVITIES

Charitable objects

NCHNL’s charitable objects, as set out in the Articles of Association, are the advancement of education for the public benefit. The Board is mindful of the longstanding need to provide public benefit and the requirements of the Charities Act 2011.

Aims

The College’s aim is to provide an outstanding university-level education. The desired outcomes are a deep and insightful engagement with the subjects of study, and in the process acquisition of acuity of thought, reasoning power, knowledge of methods and sources, and learning, writing and discursive skills, all exportable into lifelong learning and applicable to the demands of work and life after graduation.

The College’s mission is to be ‘where the power of learning and discovery through limitless global connections are unleashed. This will be manifested by building on the institution’s current foundations to build differentiation in the UK market, to be a laboratory for global innovation and to become the European hub for the Northeastern network.’

Northeastern University

The College became part of Northeastern University’s (NU) global network in February 2019. NU is a large not for profit university based in Boston, USA. NU has approximately 39,000 students on its campus in Boston and significant numbers throughout its network across the globe.

Being part of the NU global network provides significant opportunities, expertise and resources to further the College’s ambitions.

Objectives for the year

The main objective of the College is to continue to provide education of the highest quality that meets the needs of an ever-changing future and acknowledges changes to the delivery environment and student expectations.

The primary objectives of the College and progress against them during the year were:

Fulfil the educational mission As evidenced by the degree results and the NSS results the College
certainly fulfilled its educational mission.
The College was able to ensure the continuity of education and
ability for progression and completion of studies by students during
the COVID- 19 pandemic.
Protect the wellbeing of students
and staff during the COVID- 19
pandemic		 This remained a top priority for the whole year. The College was in
regular contact with both staff and students to offer support on an
ongoing basis, disbursed OfS Hardship funds and topped up the
grant .
Run Northeastern programmes in
London		 In April 2020 the Northeastern students were repatriated as the
COVID-19 related restrictions were introduced, with the result that
no such programmes ran for 20-21. The programme was re-
initiated in August 2021 for the 21-22 Academic year with over 400
students based in London.

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ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2021

Public benefit statement

Founded in 2012, with the aim of providing the highest quality of education in the humanities and social sciences, the College has established itself as a prestigious, university-level college based in the heart of London. Whilst students pay fees, the College is focused on delivering public benefit and offers a number of scholarships for academic excellence and bursaries for those students requiring financial support. The amounts were £118k and £110k. Further information regarding Public Benefit can be found in the Access and Participation plan below.

The Trustees have considered the requirements of the Charities Act 2011 and the Charity Commission’s guidance on public benefit in setting the objectives and activities of the charity. As part of its commitment to public benefit and in line with requirements set out by the Office for Students (OfS), the college has published its Access and Participation Plans as set out below.

ACCESS AND PARTICIPATION PLANS

The College is an approved (fee cap) provider for the purpose of registration with the Office for Students (OfS) (the regulator for higher education in England). As part of its obligations under its registration, the College is required to produce an Access and Participation Plan (APP) and this forms the central element of the College’s widening participation agenda. The APP outlines in detail how the College will assist students from groups that have historically been underrepresented within higher education: students from lower social economic backgrounds, BAME students, disabled students, mature students, and care leavers.

The APP benchmarks the College’s performance against the national and regional average in regards to these underrepresented groups, and specifically, what steps the College is taking to assist these groups in gaining access to education, success whilst at the College and progression on to graduate employment. The APP contains information about the College’s historical performance against these metrics and also the targets agreed by the Director of Fair Access and Participation at the OfS. The APP is a public document and provides detailed analysis of the College’s approach, information about specific widening participation activity, its targets and how they will be achieved. The current APP has been approved for a period of 5 years running from academic year 2019-2020.

The Access and Participation plans for NCH set out how the College maintains fair access to its programmes and how it will sustain and improve access, student success, and progression among people from underrepresented student groups. The Plan has been prepared in accordance with guidance produced by the Office for Students (OfS) and has been approved by the Board. The Plan applies to UK and European students entering the college in the 2019-20 academic year and its terms apply to those students for the duration of their studies at the College.

A significant number of outreach events have been undertaken by the College aimed at increasing awareness of the institution and to attract applicants. These activities have encompassed a wide variety of schools talks, attendance at fairs, and events held at the College. In order to comply with the College's commitments, and as required by the College's regulator (the Office of Students), widening participation activity continued throughout the pandemic, albeit via online channels. This activity - all aimed at increasing awareness of the institution and attracting widening participation applicants - encompassed various online events, including school talks, extended mentorship programmes, collaborative third-party events and events hosted by the College. Due to the success and high levels of engagement with online activities, the College has and will continue to offer online activities in combination with in-person interventions.

Of particular relevance to widening access, below are some brief representative examples of the works the College has engaged in:

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ANNUAL REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 30 JUNE 2021

than average cohort of minority ethnic backgrounds and POLAR 3 quintile 1-2 students, and located in quintile 2 area for adult HE qualifications and a quintile 1 area for participation), where members of the recruitment team, accompanied by student representatives, gave a talk to years 9, 10 and 11 on studying at university and how to make applications.

The initiatives outlined above are indicative of the work the College has always undertaken to promote access to higher education and raise awareness within underrepresented groups of the advantages of studying at university. Such programmes will continue and expand as school partnerships develop further. In terms of impacting attainment, the College will seek opportunities to work with key secondary schools to develop strategies to support students.

Financial Support

Financial support to students has been central to the College’s offer process over each year of its operation. The elements of financial support have adapted over time as the College fees have been revised and as students have been able to access loans from the Student Loans Company.

Since its inception the College has provided generous financial support in order to assist students to attend.

Means-tested bursaries are made available to students in order to alleviate financial hardship. In regard to the award of any bursary, the College considers the household income of the applicant/applicant’s family, and the size of the award is linked to that income. During 20-21 49 students were in receipt of a bursary, total amount of bursaries paid amounted to £110k, 19 of these students we classified as Widening participation students with £52k of the allocated bursaries.

The College also operates an in-year Hardship Fund. Students finding themselves in particular financial hardship, regardless of prior bursary allocations, can apply for a one-off £500 Hardship bursary to alleviate their situation. There are clear eligibility criteria. The process is managed by the Student Academic Services team and outcomes are ratified by the Director of Finance.

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In addition to means tested support, the College automatically considers every applicant for an academic scholarship of up to £2,000 based on predicted grades and performance at interview.

Alumni relations

The College is a reasonably young institution and does not yet boast large numbers of Alumni but has good ties with a number of graduates, organising bi-annual Alumni events and inviting Alumni to College wide events.

Review of achievements and performance for the year

During the year, the College continued to provide a first-class educational experience for students taking UK validated degrees and those on study abroad programmes from our parent institution, Northeastern University.

The College hosted 287 students on London Validated courses (2020: 212) and no students visiting from Northeastern University for one of their Study Abroad programmes (2020: 283). This reduction in the latter cohort was due to travel restrictions in the summer of 2020.

In 2021 48% of graduating students obtained a first class degree, and 44% a 2:i (2020: 50% and 40% respectively).

The National Student Survey (NSS) is a high-profile annual survey of nearly half a million students across the UK. The survey gathers opinions from students about their time in higher education, asking them to provide honest feedback on what it has been like to study on their course at their university/college. In 2021, 81% of eligible NCH students completed the NSS survey (2020: 85%). Overall satisfaction at NCH was 84% (2020: 96%), which was better than the national average of 76% (2020: 83%).

FINANCIAL REVIEW

NCH results for the year

The College’s financial statements reflect its relatively short history and need to make upfront investment in such an institution to ensure longevity and growth. As such, the institution had declared losses since its inception with 2019-20 as the first year to see a surplus.

Total income was £19.2m representing an 88% improvement from prior year (£10.2m, 2020). But it must be noted that this is largely due to the new relationship with Northeastern University who have provided grants of £16.4m in the year, £6.6m of which were capital grants restricted to be deployed in the development of the college’s new campus. If grants are removed from the income this reduced from £6m in 2020 to £2.7m mainly due to the cancellation of the Study Abroad programme for the year due to Covid-19 related travel restrictions. The reduction was offset with additional non capital grants from Northeastern University, from £4.3m in 2020 to £9.8m in 2021.

Total expenditure increased by 46% from £9.5m to £13.9m, though the Study Abroad programme was cancelled many of the staffing costs and the student accommodation cost had already been committed to legally, these costs amounted to £3.1m. The College was able to agree a significantly reduced accommodation cost for rooms not being used and many of the staff employed for the programme were subsequently seconded to Northeastern University to deliver programmes remotely which offset their costs. The lease for the new site in Devon House commenced in October 2020, this brought associated lease costs of ca. £800k and a nominal rent for the year of ca. £2.2m as new costs to the Charity. Staff costs now represent 40% of total charitable expenditure (2020: 44%).

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FOR THE YEAR ENDED 30 JUNE 2021

Reserves Policy

The College’s reserves policy is that it should have access to sufficient financial resources to be able to ensure the sustainability of the College. In determining what level of financial resources are required, the College has considered the following:

With this in mind the College is working towards a general reserves position which would fund operations for one term (excluding the costs associated with NU Programme), this is currently around £3.9m. The total reserves for the College at the year end were £5.7m (2020: £0.4m), including £709k of restricted funds. It should also be noted that this includes a designated fund of £6m represented by Fixed Assets which are not available for general use so the general reserve position after these adjustments is £(1.1)m, £5m short of our target. Until the College reaches its target it is reliant on the continued support of Northeastern University as offered via the Deed of Grant signed on 5[th] September 2019.

Going Concern

In preparing these financial statements the Trustees have considered the current financial position of the College together with cashflow forecast for the foreseeable future in order to determine whether the financial statements can be prepared on a going concern basis.

During the previous year the College reacted swiftly to the worldwide pandemic and was able to shift to online delivery of its teaching provision the week before Lockdown was imposed for the UK, with a view to protect the H&S of our community. As we continued into 20-21, the Board and key management personnel acknowledged that they would need to continue to closely monitor the situation as it pertained to the Higher Education sector in particular. Strategies were and continue to be reformulated and adapted in line with emerging trends, legislation and information, requiring continuous review of the College’s risk tolerance.

The initiatives mentioned in the ‘future plans’ section, including the resumption of NU programme and development of apprenticeships will result in steady growth in student numbers over the next few years. Management have carefully considered the resources required to meet this growth when budgeting. Forecasts for the coming 5 years show sustainable growth resulting in financial surpluses and self-sufficiency in 2023.

The negative unrestricted reserves position reflects the College’s ongoing investment in the new premises, Devon House which significantly expands the resources and facilities available to meet the expected growth in student numbers. The College will continue to meet its investment and working capital requirements through the grant contributions from Northeastern University, which are provided under the Deed of Grant dated 5[th] September 2019, as reflected above, this support will eventually taper off once the College has reached a point of self-sufficiency.

The Trustees have a reasonable expectation that the College has sufficient resources and support from Northeastern University to continue in operational existence for the foreseeable future and it remains appropriate to prepare their financial statements on a going concern basis.

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Fundraising

The College does not carry out any fundraising activities with the general public and no donations are sought from the public. The College has no fundraising activities requiring disclosure under section 13 of the Charities (Protection and Social Investment) Act 2011.

FUTURE PLANS

The future plans include:

These initiatives are ensuring the College’s budgets for the coming 5 years show a considerable growth and increasing surpluses allowing the recovery of past losses incurred during the initial stages of the institution’s existence.

Northeastern University, as sole shareholder, is committed to supporting NCHNL’s working cash flow requirements through the effects of the worldwide pandemic.

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STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year or period. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practices (FRS102, The Financial Reporting Standard applicable in the UK and Republic of Ireland) and applicable law. Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the College including income and expenditure for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the College’s transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PROVISION OF INFORMATION TO AUDITORS

Each of the persons who are Trustees at the time when this Annual Report is approved has confirmed that:

AUDITORS

The auditors, Crowe U.K. LLP, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006

This annual report was approved by the board on 25th January 2022 and signed on its behalf

R Farquharson Trustee

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NCH AT NORTHEASTERN LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF NCH AT NORTHEASTERN LTD

FOR THE YEAR ENDED 30 JUNE 2021

Opinion

We have audited the financial statements of NCH at Northeastern Limited (‘the charitable company’) for the year ended 30 June 2021 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cashflows 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 Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Trustee's 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 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 Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF NCH AT NORTHEASTERN LTD

FOR THE YEAR ENDED 30 JUNE 2021

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees’ report.

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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, 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 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 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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FOR THE YEAR ENDED 30 JUNE 2021

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the parent charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the parent charity and the group for fraud. The other laws and regulations we considered in this context for the group were Higher education and Research Act 2017, Teaching Excellence and Student Outcomes Framework, General Data Protection Regulations and Health and Safety.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income, and the override of controls by management. Our audit procedures to respond to risk of income recognition included selecting a sample of income during the year, agreeing back to the relevant documentation and ensuring it has been recognised correctly. Our audit procedures to respond to the risk of management override included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Office of Students (OfS), Quality Assurance Agency for Higher Education (QAA) and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Pesh Framjee Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date 17 February 2022

18

NCH AT NORTHEASTERN LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an income and expenditure account) FOR THE YEAR ENDED 30 JUNE 2021

Notes
INCOME FROM:
Charitable activities
Teaching & Learning
2
Grants from parent entity
Teaching & Learning
3
Capital Grants
3
Other Income
4
Grants from NCHT
3
EXPENDITURE ON:
Charitable activities
5
NET INCOME / (EXPENDITURE)
Transfers between funds
13
Other recognised gains /(losses)
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£’000
2,661
9,800
-
2
-
12,463
13,885
(1,422)
5,148
-
3,727
421
4,148		 Restricted
Funds
£’000
-
-
6,615
-
78
6,693
15
6,678
(5,148)
-
1,529
-
1,529		 2021
£’000
2,661
9,800
6,615
2
78
19,156
13,900
5,256
-
-
5,256
421
5,677		 2020
£’000
5,870
4,250
-
78
-
10,198
9,533
665
-
-
665
(244)
421

The accompanying notes 1 to 19 form an integral part of these financial statements.

19

NCH AT NORTHEASTERN LIMITED

BALANCE SHEET

AS AT 30 JUNE 2021

Note
FIXED ASSETS
Tangible Assets
7
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
Total current assets
CREDITORS:amounts falling due within one year
10
Net current assets / (liabilities)
TOTAL ASSETS LESS CURRENT LIABILITIES
Provisions for liabilities
11
TOTAL NET ASSETS / (LIABILITIES)
FUNDS
Restricted funds
13
Unrestricted funds
13
Designated funds
13
TOTAL FUNDS		 2021
£’000
6,041
1
6,042
1,801
4,599
6,400
(5,669)
731
6,773
(1,096)
5,677
1,530
(1,058)
5,205
5,677
2020
£’000
57
1
58
543
1,008
1,551
(927)
624
682
(261)
421
-
421
-
421

The accompanying notes 1 to 19 form part of these financial statements.

The financial statements were approved and authorised for issue by the board on 25th January 2022 and were signed on its behalf by:

R Farquharson, Trustee

Registered number: 07317195

20

NCH AT NORTHEASTERN LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

2021 2020
£’000 £’000
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations (see below) 8,763 762
Net cash from operating activities 8,763 762
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (5,172) (25)
Investment income - -
Net cash used in investing activities (5,172) (25)
Net increase / (decrease) in cash and cash equivalents 3,591 737
Cash and cash equivalents at beginning of period 1,008 271
Cash and cash equivalents at end of period(see below) 4,599 1,008
**RECONCILIATION OF CASH FLOWS FROM OPERATING ** ACTIVITIES
Cash flows from operating activities
Net income / (expenditure) 5,256 665
Adjustments for:
Depreciation 7 23 17
Investment income 4 - -
(Increase) / Decrease in trade and other receivables 9 (1,258) 310
Increase / (Decrease) in trade payables 10 4,742 (263)
Increase / (Decrease) in provisions (exc restitution) 11 0 33
Cash generated from operations 8,763 762
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank 4,599 1,008

21

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

1.1 Company Information

NCH at Northeastern Limited is a registered charity (no. 1189858) and public benefit entity in England and Wales (registration approved 9 June 2020) and a company limited by shares incorporated and registered in England (no.07317195) on 16[th] July 2010. The address of the registered office is Devon House, 58 St Katherine’s Dock, London, E1W 1JP. The College changed its name to ‘NCH at Northeastern Limited’ in February 2019.

1.2 Basis of preparation of financial statements

These financial statements have been prepared under the historical cost convention in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 ('FRS 102'), and with the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

1.3 Going Concern

In preparing these financial statements the Trustees have considered the current financial position of the College together with cashflow forecast for the foreseeable future in order to determine whether the financial statements can be prepared on a going concern basis.

During the previous year the College reacted swiftly to the worldwide pandemic and was able to shift to online delivery of its teaching provision the week before Lockdown was imposed for the UK, with a view to protect the H&S of our community. As we continued into 20-21, the Board and key management personnel acknowledged that they would need to continue to closely monitor the situation as it pertained to the Higher Education sector in particular. Strategies were and continue to be reformulated and adapted in line with emerging trends, legislation and information, requiring continuous review of the College’s risk tolerance.

The initiatives mentioned in the ‘future plans’ section, including the resumption of NU programme and development of apprenticeships will result in steady growth in student numbers over the next few years. Management have carefully considered the resources required to meet this growth when budgeting. Forecasts for the coming 5 years show sustainable growth resulting in financial surpluses and self-sufficiency in 2023.

The negative unrestricted reserves position reflects the College’s ongoing investment in the new premises, Devon House which significantly expands the resources and facilities available to meet the expected growth in student numbers. The College will continue to meet its investment and working capital requirements through the grant contributions from Northeastern University, which are provided under the Deed of Grant dated 5[th] September 2019, as reflected above, this support will eventually taper off once the College has reached a point of self-sufficiency.

The Trustees have a reasonable expectation that the College has sufficient resources and support from Northeastern University to continue in operational existence for the foreseeable future and it remains appropriate to prepare their financial statements on a going concern basis.

1.4 Preparation of consolidated financial statements

The financial statements contain information about NCH at Northeastern Limited as an individual charitable company and do not contain consolidated financial information on the grounds that the subsidiary is immaterial.

1.5 Fees and grant income

Tuition fees - received for students studying accredited degrees and accounted in the year of study with bursaries and scholarships awarded in the year credited against these fees in the accounts. Teaching Grants received from OfS, accounted for as unrestricted income in the year they are received. Grants received from parent company are accounted for in the period they are received and split between Teaching & Learning unrestricted grants and Capital restricted grants.

22

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. The College holds no property or freehold land assets. Depreciation is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases and recognised within the statement of financial activities:

Office equipment 25% straight line Fixtures & fittings 25% straight line Leasehold improvements over the least term

Assets in the course of construction are capitalised at cost but are not depreciated until they become available for use, they are then depreciated over the lease term.

1.7 Intangible fixed assets and amortisation

The College has no intangible fixed assets as at the date of signing these accounts.

1.8 Pension

The College operates a defined contribution pension scheme. Contributions payable to the company’s pension scheme are charged to the profit and loss account in the period to which they relate.

1.9 Operating Leases

Rentals on operating leases are charged to the profit and loss account in the period in which they fall due.

1.10 Funds

The total funds of the College are allocated to unrestricted and restricted based on the terms set by the donors.

Unrestricted funds are funds that are available for use at the discretion of the College in furtherance of its objectives and are divided between Designated and General Funds. Designated Funds are unrestricted funds which have been set aside by the College for specific purposes, which include those funds represented by fixed assets. General Funds are funds available for the provision of working capital and reserves for the general administration of the College.

Restricted funds comprise grants where donors have earmarked funds for specific purposes. The majority of this is related to grants provided by Northeastern University for the sole purpose of supporting the development of the College’s new campus. At the year £1.5m remained unspent but designated for the purpose of fixed asset development.

Following the decision to close the related trust, New College of the Humanities Trust (Trust), charity ref number 1141608). The Trust transferred the remaining assets (£78k) to the College, where these assets are held in a separate restricted fund. This fund will be utilised in line with the articles and objectives of Trust and reserved for the financing of bursaries and hardship grants for students who meet means tested eligibility criteria.

1.11 Provisions

Provisions are recognised when the College has a present legal or constructive obligation because of past events, it is probably that a transfer of economic benefits will be required to settle the obligation and the amount has been reliably estimated.

Where there are a number of similar obligations, the likelihood that and outflow will be required in settlement is determined by considering the class of obligations as a whole a provision is recognised even if the likelihood of an outflows with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the amount expected to be required to settle the obligations using the pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

23

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

1.12 Financial Instruments

The College has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash in hand and at bank, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, accruals, trade and other creditors.

Trade creditors

Trade creditors are not interest bearing and are stated at their nominal value.

Loans

Loans, are measured at fair value, net of transaction costs.

Investment in subsidiary

The investment in subsidiary is measured at cost less impairment.

1.13 Redundancy payments

Termination benefits are payable when employment is terminated by the College or whenever an employee accepts voluntary redundancy in exchange for these benefits. The College recognises termination benefits when a fully signed settlement agreement is in place, or when the cost has otherwise been confirmed and committed to.

1.14 Critical Accounting Judgements and Key Sources of Estimation Uncertainty

In the application of the College’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, whether the revision affects only that period, or whether they also affect future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

24

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

2021 2020
2 INCOME FROM CHARITABLE ACTIVITES £’000 £’000
Unrestricted funds
Tuition Fees – UK Undergraduates 2,293 1,646
Tuition Fees – UK Postgraduates 205 -
Programme Fees from Northeastern University - 4,155
Tuition – EDGE division 114 -
Other – Office for Students teaching grant 39 51
Other academic income 10 18
2,661 5,870
The fee income above is net of all student support as follows:
Bursaries for Non-WP students * 49 52
Scholarships – Undergraduate students 110 89
Scholarships – Postgraduate students 8 -
167 141
* Bursaries for Widening Participation Students area accounted for as a cost in the relevant department.
2021 2020
3 GRANTS £’000 £’000
Unrestricted
Teaching & Learning 9,800 4,250

Restricted
Capital Development (Devon House) 6,600 -
OfS Hardship Grant – student support disbursed in the year 15 -
Grant from NCH Trust – for student support 78 -
Total Restricted Grants 6,693 4,250
2021 2020
4 OTHER INCOME £’000 £’000
Management fee from NCHL - 69
Miscellaneous income 2 9
Interest (investment) income - -
Total Other Income 2 78

25

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

2021
£’000		 2020
£’000
5 ANALYSIS OF EXPENDITURE
Charitable Expenditure
Direct staff costs allocated to:
Teaching & Research 4,357 3,226
Other direct costs allocated to:
Teaching & Research 3,446 2,873
Support and Governance costs allocated to: (see below)
Teaching & learning 6,097 3,434
Total Expenditure 13,900 9,533
Analysis of Support and Governance Costs £’000 £’000
Student Recruitment activities 635 692
Admissions & Widening Participation 102 80
Marketing Activities 909 626
Other Support (inc HR, Finance & IT) 897 1,319
Premises Costs 3,527 698
Governance costs (see below) 27 19
Total Support & Governance Costs 6,097 3,434
Governance Costs comprise £ £
Auditors remuneration–audit services 23 15
Auditors remuneration–other services 4 4
Total Governance Costs 27 19
6 STAFF COSTS 2021 2020
£’000 £’000
The aggregate staff costs for the year were as follows
Salaries and wages
Social Security costs
Pension costs (Stakeholder and Occupational schemes)
Other benefits
Total Other Income
Aggregate employee benefits of key management personnel (KMP)		 4,491
523
534
35		 3,381
367
412
34
5,583 4,194
1,202

26

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

6 STAFF COSTS (Continued)
2021		 STAFF COSTS (Continued)
2021		 STAFF COSTS (Continued)
2021		 2020
Average number of employees on a full time equivalent basis was as follows
Trustees 1 1
Tuition and research 51 39
Support 49 38
Total 101 78
Average number of employees on an actual basis was as follows
Trustees 1 1
Tuition and research 69 65
Support 59 30
Total 129 96
Number of higher paid employees with aggregate employee
benefits in bands of:		 2021 2020
£60,001-£70,000 10 5
£70,001-£80,000 1 -
£80,001-£90,000 1 2
£140,001-£150,000 1 -
£160,001-£170,000 - 1
£180,001-£190,000 2 1
Total 15 9

TRUSTEE REMUNERATION & EXPENSES

In accordance with the Articles of Association, the Former Master (Anthony C Grayling) received remuneration of £135,188 with additional College pension and healthcare payments of £22,923 and £4,252 respectively up to his resignation as a Trustee in April 2021. Since becoming a Trustee of the College on 6[th] April 2021, R Farquharson received remuneration of £82,903, the College also paid £6,443 in pension contributions. This is included in the above note. In 2020 the College paid £176,518 in remuneration, £33,587 in pension payments and £4,915 in healthcare.

There were no expenses relating to travel and accommodation, amounting paid to any Trustee (2020: £nil).

27

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

7 TANGIBLE FIXED ASSETS

Cost
At 1 July 2020
Additions
At 30 June 2021
Depreciation
At 1 July 2020
Additions
At 30 June 2021
Net book value
As at 30 June 2021
At 30 June 2020		 Office
Equipment
£’000
76
383
459
23
21
44
415
53		 Fixtures &
Fittings
£’000
5
-
5
1
2
3
2
4		 Assets Under
Construction
£’000
-
5,623

5,623
-
-

-
5,623
-		 Total
£’000
81
6,006
6,087
24
23
47
6,040
57*

* For the purposes of the Cash Flow statement we will remove the element here that relates to a restitution provision where no expenditure has taken place yet, £5.172m


Investment in Subsidiaries
Cost
At 1 July 2020
Additions

At 30 June 2021
Net book value
As at 30 June 2021
At 30 June 2020		 £’000
1
-
1
1
1

The College’s investment at the balance sheet date is one ordinary share in a 100% owned Subsidiary, New College of the Humanities Ltd, (NCHL) Devon House, 58 St Katherine’s Dock, London, E1W 1JP a company incorporated in the United Kingdom with company number 07917776, whose principal activity is the provision of higher education in the humanities. NCHL had a profit of £4,670 due to receipt of written off debtor balances (2020: loss £27,801) and net reserves of (£75,598) (2020: (£80,358)).

This entity has not been included within the consolidation on the grounds that the entity is immaterial to the group. Furthermore, the only transactions were due to accounting requirements as there was no trading activity. The entity will now be declared dormant for regulatory and financial purposes.

28

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

9 DEBTORS

9
DEBTORS
Trade debtors
Prepayments and accrued income
Other debtors
Total		 2021
£’000
6
1,554
241
1,801		 2020
£’000
23
334
186
543

Other debtors includes an intercompany balance owed by NCHL to NCH at Northeastern of £76,974 (2020 £28,842).

10 CREDITORS

Amounts falling due within one year
Trade creditors
Accruals and deferred income
Tax and social security
Other creditors
Total		 2021
£’000
2,308
2,887
208
266
5,669		 2020
£’000
240
306
109
272
927

11 PROVISIONS

Balance brought forward
Released in the period
Provided for in the period		 2021
Dilapidation
£’000
261
-
-
261		 2021
Restitution
£’000
-
-
836
836		 2021
Total
£’000
261
-
836
1,097		 2020
Total
£’000
227
-
34
261

Dilapidation provision relates to leasehold properties where NCH at Northeastern Ltd has a contractual obligation to bear such costs. The provision for these costs is based on management’s best estimates. The dilapidations will become payable on lease termination in early 2022.

During the year a provision was created against the costs of restitution for the leasehold in Devon House, which spans 15 years. This cost was estimated by our surveyors Hennessy Godden in November 2021 and will be reviewed in an annual basis.

.

29

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

12 OPERATING LEASE COMMITMENTS

During the year £2,196k was recognised as an expense in the Statement of Financial Activities in respect of operating leases (2020: £327k). At 30 June 2021 the College had total commitments under non-cancellable operating leases over the remaining life of these leases

Land and Buildings
Within one year
Between two and five years
After more than five years		 2021
£’000
217
9,720
25,211
35,148		 2020
£’000
2,625
217
-
2,842

The college signed a 15 year lease for 3 spaces within Devon House, St Katherine’s Dock, in October 2020. The leases offered a rent free period of 23 months at the beginning of the contract and a further 6 months on the 10[th] anniversary. The schedule above reflects the timing of said rental payments.

13 FUNDS NOTE FOR CURRENT YEAR AND PRIOR YEAR

2021
Unrestricted funds
General Reserves
– P&L
– Capital
Designated funds - FA
Restricted funds
NCH Trust
Capital Funding
Total funds 2021
2020
Unrestricted funds
General Reserves
– P&L
– Capital
Designated funds - FA
Restricted funds
Total funds 2021		 Balance at 1
July 2020
£’000
(32,240)
32,604
57
421
-
-
-
421
Balance at 1
July 2019
£’000
(32,896)
32,604
49
(243)
-
(243)		 Income
£’000
12,463
-
12,463

78
6,615
6,693
19,156
Income
£’000
10,198
-
-
10,198

-
10,198		 Expenditure
£’000
(13,885)
-
-
(13,885)
-
(15)
(15)
(13,900)
Expenditure
£’000
(9,542)
-
(9,542)
-
(9,542)		 Transfers,
gains and
losses
£’000
-
-
5,148
5,148
-
(5,148)
(5,148)
-
Transfers,
gains and
losses
£’000
-
-
8
8
-
8		 Balance at
30 June
2021
£’000
(33,662)
32,604
5,205
4,147
78
1,452
1,530
5,677
Balance at
30 June
2020
£’000
(32,240)
32,604
57
421
-
421

30

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

13 FUNDS NOTE FOR CURRENT YEAR AND PRIOR YEAR (CONTINUED)

Analysis of net assets between funds:

14

15
 14

15
 2021
Fixed Assets
Net Current Assets
Provisions
2020
Fixed Assets
Net Current Assets
Provisions
SHARE CAPITAL
Allotted, called up and fully
Ordinary shares of £1 each
Capital Contribution		 Restricted
£’000
-
1,530
-
1,530
Restricted
£’000
-
-
-
-
paid		 Unrestricted
£’000
-
(797)
(261)
(1,058)
Unrestricted
£’000
-
625
(261)
364		 Designated
£’000
6,041
-
(836)
5,205
Designated
£’000
57
-
-
57
2021
£’000

13,850
-
13,850		 Designated
£’000
6,041
-
(836)
5,205
Designated
£’000
57
-
-
57
2021
£’000

13,850
-
13,850		 Total Funds
£’000
6,041
733
(1,097)
5,677
Total Funds
£’000
57
625
(261)
421
2020
£’000

13,850
-
13,850		 Total Funds
£’000
6,041
733
(1,097)
5,677
Total Funds
£’000
57
625
(261)
421
2020
£’000

13,850
-
13,850
13,850
-
13,850
FINANCIAL INSTRUMENTS 2020
£’000
1,217
-
(780)
2021
£’000		 2020
£’000
Financial assets measured at amortised cost 4,854 1,217
Financial assets measured at fair value - -
Financial liabilities measured at amortised cost (5,370) (780)

16 CAPITAL COMMITMENTS

As at 30[th] June 2021 the college had received £6.6m in grants from Northeastern University to support the development of our new campus in St Katherine’s Dock of which £5.1m had been spent by year end. Further commitments at this date amounted to £3.8m, for which further grants were received beyond the year end.

31

NCH AT NORTHEASTERN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

17 RELATED PARTY TRANSACTIONS

The College’s parent is Northeastern University, an educational institution incorporated under the laws of the Commonwealth of Massachusetts, United States, being a non-stock, non-profit educational charity with tax exempt status (EIN: 04-1679980) under section 501(c)(3) of the United States Internal Revenue Code. Main address is 360 Huntington Avenue, Boston, MA 02115, United States. Consolidated accounts are available on Northeastern University’s website; https://finance.northeastern.edu/financial-statements.

The college no longer receives management fees from New College of Humanities Limited, a wholly owned subsidiary company, it received £69,000 in 2020.

18 CONTINGENT LIABILITIES

The College had no contingent liabilities as at 30 June 2021 (2020: none)

19 POST BALANCE SHEET EVENTS

On 8[th] December 2021 the college signed a further lease for half of the second floor in Devon House to be dedicated to teaching space. The lease is to run concurrently with the pre-existing lease and benefits from the same rent free period arrangement. It is contingent on the college obtaining permission to change the use of the premises to educational.

32