Registered number: 07317195 Charity Number: 1189858 NORTHEASTERN UNIVERSITY- LONDON ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 ADIKklMA* 2311212024 COMPANIES HOUSE #16B NORTHEASTERN UNIVERSITY- LONDON Board of Trustees al report date Dr Gregory Ajicè Chinebuah- non exec tioined 27.5.24} Robert Farquharson Diane MacGillivray T￿)rna5 Nedell (Chair) JulEtta Tenant-Dexter- non ex Da￿en Campili - non ex￿ (resigned 18.4.24) Jonathan G￿lfy- non exec I￿S￿ned 17.01.241 Patrria wo￿1 {res￿r￿d 18.04.241 Senior manageme￿ Group (also considered Key Management Personnel) Clara Ajfano {A%sooats Dean of Te￿hing and Leamin9. joinedin June 24) Diana Bozhilova (Assoaate Dean ol Global Impact and Suslainability,iiwned June 24) Vanessa Carrern5 (Director ol Financg) Dr Naomi Gwlder (Oean for Academic Develwent and InnOVat￿an and interim Dean ol FarAJltiesl Robert FaTquhars￿ ICh*l Executive orricerl AJ)thony GrayliThJ (Founder Principall Emma Kelly (Head ol EOGE Division London) Ken hhyrison (Assooale General thnsd. UKpn8d Apnl 2024) Rebec￿ Morrison (Director ol Academic Services and Registrar) Elizabelh O'connell (Director of Admiss￿ns, RecruitTnent & Marketsn91 Dr Kasim Randeree (Associale Dean of Faculty Affairs) Martin Smith IAs5istant ViGe Pre&NJent for Recruitment and Marketing for Global Campuses) Dr Alison Slatham IAssoaate Dean of Teaching and Leamingl Sheena Van Der Merwe (Director of Resources & Opera¢ionsl Caroline Ward lo1￿clor of HR) Dr Scott Wildrnan {Interim AcaderniG Dean) Syed ZaKli (Director ol Visa & lfflmigration COM￿13MCe} Registered Company number . 07317195 Registered Chanty Number 1189858 Registered Office Address Devon House. 58 Sl Kalharine's Way London E1W 1LP Indgpendent Auditor Crowe U.K. LLP 55 Ludgale Hill London EC4M 7JW Bankers Barclays 8ank plc 1 Churchill Place London. E14 5RB Solicitofs Eversheds Sutherland {International) LLP 5th Floor. 50160 Station Road Cambridge. CB1 2JH NORTHEASTERN UNIVERSITY- LONDON CONTENTS PAGE Annual Report of the Trustees including Strategic Report and Statement of Principal Accounting Policies and Estimalton TechniqLVS Independent Auditorfs report 20 Statement of Comprehensive in¢ome 24 Stslement of Financial Position 25 Statement of Cash Flows 26 Notes to the Financial Staternents 27 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 The Trustees (who are Trustees of the charitable ￿￿pany) presenl their Annual Report for the year ended 30 June 2024 in accordance with Ihe HEIFE SORP requirements as wel as requirements under the Charities Act 2011.and the Companies Act 2006. On 9th June 2020 NCH al Northeaslem Limited {NCHNLI became a Registered Charity {registered charity number 11898581 and on 13th July 2022 r( changed its name lo Northeastern University- London INU London) following approval for the use of unNersty title granted by the Department for Educalion and the Office for Students. STATEMENT OF CORPORATE GOVERNANCE Gov•ming Documents The University is go¥emed by its Articles of Association. last amended on 21 June 2022. Goveming Body The NU London Board of Trustees ('The Board,) is the stsbJlory goveming board of the legal entity.. NU London owns the brand'New College ofthe Humanities, as well 8s its domanl subsidiary New College of the Humanities Limited I'NCHL'I. including its relat￿nship with reguktory bcMJies and partr￿( organisalions. NU London Board is a limited liability company established under English and Welsh law. For the purposes of these financial s￿￿ements the Trustees are referred lo as Trustees. The Board is legally responsible for the overall management and control of the University and, as such. has oversight and management of the strategic, financial and operational areas of the University's activities and all other aspects of the University's exislenee save for responsibilit￿$ delegated to the Academic Board in respect of the regulating and directing of the academic work of the University, induding teaching (undergraduate and postgraduate degrees as wdl as degree apprenticeship prograrnmes) and research. The Board has ownership, oversight and management of ihe regulatory responsibilitses and ￿lationShIpS of the University. 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 bC￿y_ The Board meets four times a year. In accordance wtth the Articles ol Association, the Board has the Fthver. to delegate responsibility (but not accounlabilityl lo ccmnmittees, direclors. and Ihe management of the Untversity. NU London Board has eslablished the follwng cornmittees to carry out its responsibilities. The number of membeis of any such committee and the terms on which they hold and vacate office shall be determined by.the Board. Reports lat least annualtyl from these committees shall be received and considered by Board where appropriate. See Organisalional Management section below. R￿TY1tfflÈnt and Training of Trustees The Trustees roles are filled drflerenty. The￿ are five Trustees appointed by Northeastem University. The non- executive Trustees are recruited and appointed by Ihe nominations committee of the NU London Board. The University uses a Skills Matrix lo identrfy potenh'al gaps pnor to recruiting new Trustees. The training of the Trustees depends on each indiv￿￿al,S area of expertise but common areas of training would include English Higher Education Re9ulatson and English law. This training is done either as part of the Board meetings or as required. Oryani$ational Management The Boar(I delegates re$FOn￿bility for University Management onto the following Committees. The ExecutNe Committee (Excol is Chaired by the CEO and ensures there is effects've leadership and INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 management of all the activities undertaken by the University and provides a link behveen the Board and the senior managemenl. It ensures Ihal the slrategic priorities as outlined in the NU London Strategic Plan are being met through the operational execution of Academic Board and the Senior Management Team. Exco supplies the Board with reports. draft budgets and accounts. and reports on risk management. Exco ffleets on a forlnightly basis. The Audit Comrrwttee IACI was estsblished to review audit FKAicy. intemal procedures and assurance on the use of public funds onthehaw of the Board including the recommendation C￿ audf(ors presented to the Board. Audit Committee meets al least once a year. The Remuneralton Committee (Remcol was estsblished lo determine and apply policy on"behalf of the Board lo rernuneralion and benefits. lo ensure compliance wtth best practice in the UK and to set the remuneration of the executive members of Un6versty as sel out in the Articles. In determining senior managernenl remuneration, Remco consider several factors, including performance and sector averages. In the year a benchmarking exercise was cornpleled by a third party using data from the Universities and Colleges Ernployers Association IUCEA}- This committee meets as needed during the Vice a year. The appropriateness and relevance of the remunerab'on policy is reviewed annually including referenee lo comparisons with similar irislilulions lo ensure that the Universty remains informed to broader issues of pay and employment terms and cOnd￿.0ns. The Nominations Comfnittee INC) was establtshed to review and approve appointment of members to the 8oard as well as the removallapwntment of the Master and CEO. The Academic Board (ABI is the academic authority of the University and takes sueh measures as shall best promote the academic and professional work of the University. safeguard standards. academic freedom. and ensure that $lL￿entS receive a highquality academic experience while studying at the University. This academic authority is exercised within a budgetary and strategic framework sel by NU London Board. i Exco is responsible for proposing and delivering the Universty's strategy. and fcK managing the day-to-day 8clivilies, operations and resources of the Unwersity. The CEO chairs the meetings of the Senior Management Team ISMTI. which reports lo Exco. Ensuring regularity and propriety in the use of public fvnding Consideration of the financial wsilion of the UnNersity is a slanding item for t()th the Board of Governors and the Executive Committee. Both also have oversight of the use ol public funding wilhin their responsibilities for the academic activities of the University- The Intemal Audilor fvnctson ￿￿11 also look to ￿rry out audits of the University's processes for handling such monies wth these reports being consKlered by the Audit Committee. INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 STATEMENT OF INTERNAL CONTROL & RISK AIANAGEMENT The Trustees are responsible for the system of intemal Contr￿ operatiry within NU London and for reviewing ils effectiveness as well as enSUrir￿ they are linked to achieving the UnNersity's objectives. Such a system can only provide reasonable. and not absolute. assurance against material misslalemenls or losses, and eannol eliminate bu5ines5 risk. As a reflection of the University's recent g[￿rth. this system has b8en- and will continue to be- under constant review and developmenl. The Trustees identify a￿a5 of improvement in the system of intemal control based on reports and reviews from University management, Audit Committee, Academic Board and other ￿mMrttees. TnJslees are of a view that there is an ongoing process for idenlity"ng. evaluating and managing Ihe University's risks and inlemal controls and that al the dale of approval of the annual report and financial stalemenls, the process has been subjgct to regular review. The Tnjslees approach this reswnsibility from the perspective of discharging their duties. as"" specified in Ihe"Regulalory framework for higher education in England. published by the Ofs in February 2018. The universty falls under the purview of Northeastern Universi￿$ Audrt & Advisory Serwices. Audit & Advisory Services is an independent and objective assurance function that assesses and evaluates the University's internal Control environment. As part of the prLxess of constsnt inlemal review, University managemenl arKI Trustees have identrfied the requirement for a nufflber of policies as follows.. AntpBribery and Corrupl#)n Policy & rewrting form Anli.Money Laundering Policy, Guidelines & reporting fomi Data PTQteclion Policy, Privacy notices. Data Breach investigation p￿￿edureS Fraud Prevention and Response Policy & rewrting fomi Public Interest Disclosure Pdicy Risk Management Strategy The Trustees are also responsible for meeting with the External Auditor lo consider the nature and scope of the annual audit, and thereafter discuss audit findings 8nd the inlemal control report arising out of the audit of the annual financial slatemenls. The Audit Committee reviews the annual financial statements. paying particular attention to financial disclosures, accounting adjuslmenls and control issues. Whilst NU London officers attend the meetings of the Audit Committee as necessary. they are not members of the Committee, and the Committee meets from time to time with the Inlemal and Exlemal Auditors on ther own for independent discussions. The Risk Management Strategy is designed lo support this misshjn by assessing and managing the risks lo the University achieving ils ststed mission and lo ensure that the University is also protecting ils stakeholders lo which it has responsibilities, such as students. staff. funding bodies, partners. suppliers and the general public. This strategy forms part of the University's control and govemance structure and it is designe(I to give summary guidance for those drfferenl parts of the Universty are responsible for managing risk and for ensuring that their decisions are Implemented. The approach to inlemal control is risk-based, including evaluation of the likelihood and impad ol risks bocoming a ￿ality. Review procedures indude business. operational, compliance. reputational and finance risk. S(Jentification and management of risk is firmty embedded in all the University's systems and procedures. Central to this approaeh is the m8intenanee of a Risk Register which Exco review_ Up until recenuy the University has not had an internal audit function and has rel￿d on Exlemal audits I reviews to reV￿W the controls in operations. Following a penc*J of growth and development. the Univetsity is now working with the Intemal Audit department al Northeastern University (parent entity) to develop their own inlernal"controls funclron. Regular reviews of a wide range of activity throughout the organisat￿n will be conducted and a plan for each department of the University will be developed using a risk-based approach, tsking account of the key areas of risk identified for the University as a whole and of specific areas of risk highlwjhled by the department heads. The plan will aim to cover all smjnificant areas of risk at least once during each 3 year cyde. Any major risks are reviewed more frequentty. The risk rnanagemenl objeGtive5 of the Unrversty are to". INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 Integrate an awareness of managed risk taking and effective risk management into the cullufe of the University- Manage risk in aeeordance with good practsce. Embed risk management within strategtc and operational management proeesse5. Consider legal compliance as a minimurn standard. Anlicipale and respond to changing economic. social. envift)nmentsl and legislative requirements. Prevent injury and damage and reduce the ￿st of risk. These objectives wrll be achieved by.. Updating and maintaining a Risk Register whth delails those risks ￿lCh. in the view of senior management and the Board. pose the g￿atest challenge to achievement of Ihe University's mission and of its contsnuing function. Assessing Ihe likelihood of Ihese risks occurring and the likely impact of an (Kcurrence. Putting in place arrangements to manage and monitor risk. Maintaining effective communication and the aclNe involvement of Staff. Preparing conb"ngency plans in areas where there is a poleftb.al for an oeeurrence hav￿9 a wholly negative effect. Monitoring and reviewing arrangements on an On9￿ng basis. Insuring against risk where this is deemed lo be cost effecb"ve. The system of intemal financial control is based on a framework of regular management infomiation, financial regulations, administrative procedures (including segregation ol duliesl, management supervision, a system of delegation and accountability, and independent scruliny. In particular the system includes.. comprehensive budget setting and monitoring systeffls.. regular reviews of perKKlic financial reports which indThte financial performance against budgets and forecasts access by all finance staff and approprkqle departmental slaff to systems providin9 8 suile of enquires and rep)rts lo facilitate effective financial management on an ongoing basis dearly defined capital expenditure guidelines fomal proiecl management disciplines an in-house inlernal audit service., and scruliny by Governors, Ofs, other inspeciorates, external audit and other stakeholders. The Board has ultimate responsibility for the total risk exposure of Ihe University by.. Setting the tone and influence of the culture of risk management across the University- Delermining.the extent lo wh￿h the University is 'risk taking. or 'risk averse, as a whole and sets the University's 'risk 8ppelile'. Approving rnajor decisions affecling the University's risk profile or eXp￿)sure. Determining vthal types of risk are acceplablelnot acceptable and monttoring significant risks and control improvements to mitigate risks. Annually reviewing the Unwersty's approach to risk management and approviThJ changes or improvements lo key elements of the process and proCedU￿s. Establishing, maintaining. and reviewing controls for monitomg risks. Having particular focus on the financial risks that could impact the University and ils provision of world class hb3her education. To support it in exercising these responsibilits"es. the Board will reeeive an annual report from Exco, on the effectsveness of the risk management process in the Universty. making reeomrnendations where appropriate. Exco exercise their resK)onsibility for risks by= Identifying and evaluating the significant risks faced by the University. Providing adequate infomialion in a limety manner lo the Board on the status of risks and controls. Annually having a risk review and rewrting the outcomes to the Board. Implementing poliues on risk management and inlemal control. Annually reviwng the effectiveness of the system of intemal contrd and risk management. The CEO will rewi. on Exco's behalf. to the Board on an annual bags as to the approach to risk faced by the University. and the management of il. and in each Ihe Board meeting will report on any incidents andlor changes to Ihe level of risk faced by the Universily and the approach lo managing those changed circumstances. The framework for these discussions al the Board wll be the Risk Register. INDEPENDENT AUDtroR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 Principal Risks and Un¢ertainti•s Facing the Business The principal risks that have been idenb'fied in¢lude.' Student recruitment- strategy of the UnNersity is to grow studenl numbers. The University supports this through a strong recruitment tearn and with collaboration with our parent institution. However this growth will include a18rge number of international students so any changes to UK visa rules and or the country of origin rules of our students could advetsely affect this growlh. Regulatory- loss of any regulatory assets such as UKVI immigration licences and also including adverse decisions by Ofs. Ofstred and ESFA amongsl olhers. The University retsins highly trained staff in key areas and continues to receive positNe outcomes when audrted by. or interacting with. our regulabng bodies. Business disruption - inabilty to use existing premises. loss of key members of stsff, technolcgy failure or sludenl incident. Management of this rbsk falls to SMG. who meet regU￿rty. in line with the University's Disaster Recovery Plan. Resources risk- inabilty to recruit suitably qualified slaff. suslain growth in physical footprint and ability lo sign contract for student res￿entIal acccffim0dati(￿. This is actively fflanaged by SMG. The approach lo Internal Control, will continue lo be developed through 2024-25 to ensure il is fil for purpose as the University continues to expand. During 2023-24 no signif￿an1 weaknesses or failings were found lo report. The University's ability to deliver its charitable purpose and objecttves is primarily dependent on its key management personnel {KMPI and staff.. INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 Below is a ta￿e listing all Trustees and key management personnel and their committee membership. Name Role" Exco AC Remco NC AB SMG Board Chiara Alfano Diana Bozhilova Vanessa Carreras Alice Chinbu8h Robert Far uharson Anthon CGra N8omi Goulder Ken Morrison Rebecca Morrison Thomas Nedell Elizabeth O'connell Kasim Randeree Martin Smith Alison Stalham Julietta Tenanl-Dexter Sheena Van Der Merwe Caroline Ward Scott Wildman S ed Zaidi KMP KMP KMP Trustee Trustee KMP KMP KMP KMP Tnjslee KMP KMP KMP KMP TnJslee KMP KMP KMP KMP Strurtur• and relationships The company was incorKK)rated on 16 July 2010 as Grayling Hall Limited. Since incnrporation the company has had four name changes." • 23 February 2011- New College of the Humanits"es Lirntted 6 March 2012 - Tertiary Education Services Limited • 21 February 2019 - NCH al Northeastem Limited 13 July 2022- Northeastem University- London On 19th February 2019 the issued share capital in the University was purchased by Northeastem University, {an .. educational institution incorporated under the laws of the Commonwealth of Massachusetts. United Slates, being a non-slock. non-profit educational charity with tax exernpt status under section 501{cl(3) of the United Stales Inlemal Revenue Code. of 360 Hunlinglon Avenue. Boston. MA 02115. United States). As a result of this. transaction the company now a wholly owned subsidiary of Northeastem University. Following the change in ownership the company was renamed 'NCH al Northeastem Limited.. Following approval for use of university lille from DIE and Ofs. rt changed ts name lo Northeastem University- London on 13M July 2022 . An application for Charity Status was submffted in March 2019 to the Charity Comfflission. This was granted on 9th June 2020, charity number 1189858. Following the award of charitable slalus the University is now conlrolled by the Board. INDEPENDENT AUDrroR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 Subsidiaries & Li￿ked Charilies The Universty has a wholly owned n(￿-Char1tab1e subsidiary, New College of the Humanities Limited (NCHLI (company number 07917776} registe￿ in England and Wales and limited by shares. This company is now domanl. During 2021-22 the University's subsidiary, New College of the Humanities Trust (charity number 11416081 transferred ils assets to Northeastern University - London as a ￿$tricted grant for the purposes of providing Hardship grants to student5, in line ￿th the original intentions of these funds within the Trust. As at 30th June 2024, £38k of these funds remained wilhin the Restricted reserves for future disbursement12023.. £66kl. Employment policy The Universty airns to be an equal opportunty employer and to appty objective criteria to assess ff*rit and make decisions on selection, promotion and other employmenl-related issue5. 11 aims lo ensure that no job applicant. employee or worker receNes less favourab5e treatment on the grounds of race. colour, national or ethnic origins, sex. sexual orientstson. marilal status, perceived sexualty. disability. membership or non- membership of trade unions, 'spenl' convicth.ons of ex•offenders. class. age. political vws or acts"vity. religion or belief. STRATEGIC REPORT OBJECTIVES. AIMS AND ACTMTIES Charitsble obj NU London's charitable objects. as set CNJI in the Arts"cles of Association. are the advancement of education for the public benefit. The Board is mindful of th.e h￿￿$tandIng need lo provide public benefil and the requirement5 of the Charities Act 2011. Aims The University's aim is to provide an oulslanding educab"on. The desired outcomes are a deep and insighrful engagement with the subjects of study. and in the process acquisition of acuity of thoLJght. rea50ning power. knovledge of methods and sources. and learning. V￿￿tIng and discursive skills, all exportable into lifelong leaming and applicable to the demands of work and lrfe after graduation. The University's mission is lo be'where the power of leaming and discovery Ihrough IimiU8ss global connections are unleashed. This w￿1 be manrfested by building on the institutyon's current foundations to build differentiation in the UK market, to be a laboratory for gbbal innovation and lo become Ihe European hub for the Northeastern nefv4ork.' Northeastern University The Universily became part of North"eastem University's (NUI global network in Febnjary 2019. NU is a large not for profil unNersrty based in Boston. USA_ NU has approximately 39.000 students on its campus in Boslon . and significant numbers,through(wl its netrwork across the gh)be. 8eing part of the NU global nehvork provides signifThnl opportunities. expertise and restyjrces lo further the Universty's ambitions. ObjeGtives for the year The main objective of the University is to continue to provide education of.the highest quality that meets the needs of an ever-changing futu￿ and acknowledges changes lo the deltvery environment and student expectations. 10 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 The primary objectives of the Univer5ty and progress against them during the year were" Fulfil the education81 mission As e¥￿enCed by the deg￿e ￿sUltS and the NSS results the Universty fijlfilled its educational mission. The increasing level of grant funding obtsined by the University demonstrates its research capabilty Through the delivery of Northeastern prograrnmes and the increasing number of research collaborations across the network during the academic year 2023124 the Universty is delivering on that ob"ective. Ensuring the University has the physical and human capital to support the objectives listed above is key. The high quality leaching expansion, the ￿ng term agreement with private sludenl housing providers and Ihe growth in employee numbers support the delive leachin and research. Deliver Northeastem Pfogrammes in London Property Strategy Public benefit statement Founded in 2012, with the aim of providing the highest quality ofeducation in the humanities and social sciences, the University has established itself as a prestigious insbtut￿ln based in the heart of London. Whilst students pay fees. the University is f￿USed on delivering public benefit and offers a number of scholarships for academi excellence and bursaries for Ihose students requiring financial support. The amounts were £131k and £138k. Further information ￿ardIng Public Benefil in Ihe wider cornmunity can be found in the Access and Participation plan below. The Trustees have considered the ftquiremenls of the Chartt*s Act 2011 and the Charity Commission's guidance on public benefit in setting the objectives and activrt*s of the charlty. As part of its commitment to public benefit and in line with requirements set out by the Office for Students {OfSI. the University has published it5 Access and ParticApatitin Plans as set out betow. The Trustees are also reskNMsible for the interacbons be￿￿n the UnNersity and the Ofs and ils designated tK)dies and lo ensure compliance with all of ils condibons of registration wlh the Ofs's accounts direction. R Farquharson in his capacity as CEO. is the nominated accounting oificer with the responsibilities set out by the Ofs. ACCESS AND PARTICIPATION PLANS The University is an approved (fee eapl provider for the pU￿oSe of regislralion with the Office for Students {OfS) {Ihe regulator for higher educatK)n in England). part of ils obligaltons under its re9islralion, the University is required lo produce an Acces5 and Participati)n Plan (APP). This forms the central element of the University's widening participation IWPI agenda. The APP outlines in detail how the University will assist students from groups that have historically been underrepresented within higher education with a particular focus on increasing the proportion of studen15 from POLAR4 Quintiles 1 & 2. and IMD Quintsle 1 backgrounds. The APP benchfflart(s the Universivs perforrnance against the national and regional average regarding these underrepresented groups, and specifically, what steps the University is taking to assist these groups in gaining access to education. success whilst at the University and progressH)n on lo graduate employment. The APP contains information about the Universitys historical performance against these metrics and the targets agreed upon by the Director of Fair Access and Participation at the Ofs. The APP is a public document that provides a detailed analysis of the UnNers1￿S approach, information about specif1c WP aclivilies, targets, and how the University will achieve them. The Plan has been prepared in accordance ￿th guNlance produced by the Ofs aThJ has ￿en approved by the Board. The Plan applies to UK (home domieiledl students who enter the University between Ihe academic years 2019120 to 2024125 and ils terms apply lo those students for the durab.on of their studies al the University. The University has also submilled variation requests lo the Plan in response to the updated priorities sel out in INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 February 2022. In Ihe 2023124 academic year. the University has developed the APP which will apply lo students from 2025126 to 2028129 which will be Subrn￿ed to the Ofs for review and approval in Octobef 2024. The University has undertaken a S￿nIfiCant number of outreach events to increase student allainmenl, self- C￿rIdence and attract applicants. Of relevance to widenin9 access, below are some examples of the works the University ha5 engaged in" Innerscope KSM4 aspire programme-. The UnNersity partnered with the coaching organisalion Innerscope to offer 2-10-1 coaching sessions over five weeks to students in KS3&4 (aged 12-151- Students are introduced to several personal development topics to help reframe their mindset through goal setting, building resilience and raising self-belief. Each programme ended.with a visit to the Universty campus. where students look part in academic taster lectures, received a campus lour and worked with student ambassadors and their peers whilst learning about lrfe at universrty- The Innerscope programffle was delivered in 4 schools with up to 16 students taking part in each school.. Arts and Media School I￿ingtOn Langdon Academy Bow School Stoke Newinglon School. When asked what they found most useful about the prtsjramme. one Year 9 student commenled.. "Il made me dnt to lry harder in Sc1K￿ and if made rne start real￿ing that the small things matte Campus and school visits: Another aspect of the Universit￿5 outreach strategy includes welcoming schools and Iheir students into the University lo hear talks or partKipale in subject workshops. Across the 2023124 academic year a total of 13 schools visited our campus. bringing almosl 350 pupils from Year 8-12. In addition. the WP team and student ambassadors completed 26 schwl visits across Greater London lo attend HE and areers fairs and lo deliver talks and workshops. A teacher Irom one of the school visits saKI. Yoday'5 Vlslt gave a refreshing insighf into univ&rsty life for both students and staff. The studenls are now aware of smaller unwe1sit￿S being available for those that may be overwhelmed with large institut￿n$. and they a￿ more awa￿ of the diversity of university life" In November 2023, we hosted our first school for the brand new"Mapping Multiracial London. workshop. This is based on the excits.ng research of the Mapping Black London team and is delivered by their research assislants Stoke Newinglon School brought 27 of their Year 12 A Level History and Geography students lo campus to take part in a campus lour. personal statement workshop and the mappin9 workshop. Intouniversity". The University works wth this charity lo reach students from underrepresenled groups. Across the year." around 225 learners from across London visited the University, wilh 5 Year 6 (aged 10-11) and S Year 8 {aged 11-12) visits. These We￿ rom schools and Inlouniversity centres including East Hain, Haringey. Hackney and Islinglon. The slutlenls receive an inlr(Kluction lo university life, a student ambassador-led campvs lour ané workshops delivered by Intouniversty. The Prince's Trust campus visits: In February 2024 we launched a new partnership wilh The Prince's Trust, a charity that supports young people who are struggling at school andlor are al risk of exclusion_ The charity brought a group of Year 9-11s from tsvo schools lo campus for a Discover Day. The students heard an introduction lo university, had a campus lour by student ambassadors and participated in an activity where they developed their own society and pitched this lo their fellow classmates. One teacher said ?he students sfood up in ftDnt of people fhey didny know to give their society presentations - this is something they wouldny have said Ihey could do befo￿". Many of the students ha¢Y social anxiety and the experience -helped some of the students with Iheir confidence." The Brilliant Club Parent PoTwor- The University launched a brand new partne￿h￿ with The Brilliant Club and their Tower Hamlets Parent Power group. The Pa￿nt Power model builds parenvcarer communities across the UK, each one supported by a local partnership. Through supwrt to develop community organising skills, as well as advice and guidance on accessing higher education. parents are ernpowered to ensure their child￿n have a fair chance in education and their ftrture careers. The group works with parentslcarers of Year 7-12 stLFdents Irom'sclM)ols across Tower Hamlets. Between April 12 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 and July we hosted 4 group meetings on campus. welcoming parentslcarers from across East London. The WP team delivered a range of IAG sessions to upskill the parents including, sludenl finance, posl 16 education options, careers after unwersity and an inlroduclion to degree apprenticeships. The group is campaigning for more a¢¢e5S to work experience for their young people and will be exploring this further in the 2024125 aeademic year. Year 11 Summer School.. In Juty 2024 the WP learn hosted our largest ever on campus summer school. A total oy 61 students from across London and the South East attended campus for 4 days. They took part in a range ' of academic taster sessions (Law. Psychology, Computer Seienee and an InlerdisciplÈnary session covering History, English and Philosophy) to give them 8 taste of studying these subjects at university. They also took part in sessions such as study ski115. Student finance and student lrfe to p￿pare them for their Iransililn lo sixth formlcollege and later. university. When asked what drfference the summer schod made, one student said" "It helped npe clearthe rnisconceptions I had about university and allowed me to leam whèt I should be doing as next steps to universty like doing reSea￿h on the subjecl I want to do." The University works collaboratively to create and infomi the outreach activities and effective evaluation methods of inili8tives with relevant inslitulions. For example, since 2020. the University has been a member of SEER. which supports the outreach initiatrves through an independent evaluation of the impael of interventions. The initiatives outlined above are indicaltve of the work the Universtty has always undertaken lo promole access lo higher education and raise awareness among underrepresented groups of the advanlages ol studying al university. Such programrnès will c4)ntinue and expand as school partnerships develop turther. Financial Support Financial support lo students has been central lo the University's offer process over each year of its operation. The elements of financial support have adapted over time as the Unr¥ersity fees have been revised and as students have been able lo access loans from the Student Loans Company. Since its inception the University has provided generous finanual support in order lo assist sluderils lo attend. Means-tesled bursaries are made avali able to students in order lo alleviate financial hardship. In regard to the award of any bursary, the University considers the h￿sehold income of the applicanvapplicanl's family. and the size of the award is linked lo that income. During 22-23, 45 students were in receipt of a bursary, lolal amounl of bursaries paid amounted lo £144k. 26 of these students we dassified as 'Widening participation. students with 718k of the allocated bursaries. The University also operates an in-year Hardship Fund. Students finding themselves in partKular financial hardship. regardless of prior bursary allocations. can ap￿Y for a one￿ff £500 Hardship bursary lo alleviale their situation. There are clear eligibility erileria. The process is managed by the Sludenl Academic Services team and outcomes are ratified by the Director of Finance. During 2023-24. 27 students received a total of £27,680 in Hardship Fund payments (22-23. 10 students. £6.000). In addition lo means tested 5UPPOrt. the UniveNty automatically considers every applicant for an academi scholarship of up to £3.IXIO based on predicted grades . Alumni relations The University is a reasonably young institution and does not yel t4)asl large numbers of Alumni but has g()od ties with a nurriber of graduates. organi5ing bi-annual Aumni events and inviting Alumni lo University wide events. Sustainability and CartK+n Reporting The University is committed to promoting and contributing to the Sustsinable Devetopmenl Goals ISDGI. In response to climate change emergency. the inslrtution is fulty commffted to monitoring and reducing cart)on 13 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 emissions from its operations and activilies, through suppjrting and encouraging collaboration. innovation and engagement across The University community. and delivering Net Zero by 2050 During financial year to June 2024, The Universty has continued work on its sustainability strategy thi5 induded improving the accuracy of its inforrnalion I data ￿leCted which was done by the University engaging a firm of experts lo review and quantify the progress against this strategy. Max Fordham, in conjunction with key stakeholders at the insts"lution. provided a reFN)rt on the Universi￿$ Scope 1 and 2 emissions as well as progress from two prior years. The reF)Ortwas produced in accordance 7Mth GHG Reporting Proto￿l- Corporate Standard and used the UK Govemment's conversion factors for Ciynpany reporb"ng. Total Universty Scope 1 & 2 Emiswons for year5 ending June 2023 and June 2024 I.2￿ 141 71503￿01￿ 1.278.214kWh- 230.08 1.325 W kw 239.$6I¢OI 53.63 >J723D kll 6Y.WCthE 6241 k% IC6.75ICth Zo966￿0 1 5aS.4*k 296A8 343.4Sthp ad JoDr¥Tea InlEnww fr￿91 ic(t¢ Dn191CO As the table above shows the University has made stn.des to actively manage ts carbon emissions over the last years. Overall increases a￿ rnainty due to the 5ignTficanl inC￿aSe in our campus syze. which will ￿ntinUe to grow in the coming year5. The overall property strategy includes a commitment to sustainability built into our refvriM"shment strategy where we use BREEM methodolc•Jy and worthg closety vthh our landlords once we are in occupation. 14 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN . UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 Review of achievements and perforniance for the year During the year. the Universty conb'nued lo provide a fiTSt-class educational experience for students taking UK validated degrees and those on study aiwoad programmes from our parent institulion, Northeastern Universty. The University hosted 434 students on London Vah"daled courses {2023.. 3811 and 1361 students vistting from Northeastern University for one of their Study Abroad prL¥Jrammes (2023= 7701. The University continues to have a strong growth strategy in the short and medium term supported by the enrolment of students from our parent institution. This growth has infomied our propety strategy and capitsl investment plans.. In 2024 30% of graduating students ￿tatrned a first dass degree, and 55% a 2.'i (2023= 38.5Yp and 51Yo respectively). The National Sludenl Survey INSS} is a high-profile annual survey of neady half 8 mill¢on students across the UK. The survey gathers opinions from students about their lime in higher education. askin9 them lo provide honest feedback on what it has been like lo study on their course al their untversitylcollege. In 2024, 75.￿ of eligible NU - London students completed the NSS survey12023'. 80%). The response rate was 3% higher than the national response rate. The University scored above the nab.onal average in three themes (sets of themed queslionsl, and below average in seven thernes. The strongest themes were 'The Teaching on my Pr￿raMme,, 'Assessment and Feedback, and 'Academic Support., scoring 2% above the seclof average. The k)west themes v•ere 'Student Union. and 'Leaming Resources.. which score¢J -20% and -17% beh)w Ihe average. Based on NSS quanlilalive dala, there appear lo be two differing student experiences be￿een apprenticeship students and non-apprenliceship students. Qualitative data shows that themes around leaching and learning remain a slrength al the University for non-apprenticeship students, whi5e the Academic Support theme for apprenticeship also performed strongly. NSS qualitative da.ta supports the strength of leaching and leaming al the University, however. it show5 that there is a feeling from students Ihal they feel the UnNersity's identity and sense of community is changing due lo the acquisition by Northeaslem Universty. FINANCIAL REVIEW Results for Ihe year Total income was £62.6m representing an 42% improvement from pr¥)r year {£44.2m, 20231. Turnover changed in income streams as follows". London Validated UG and PG provssion income increased by £1.6m Northeastern University Mobilrty in London provision increased by £17m Business Development linc. apprenticeships) provision increased by £0.9m Reslricled capitsl grants from Northeaslem University decreased by £6.4m Remaining income linduding Olher income. Un￿StriCted grants and interest} increased by £5.3m Total expendilure increased by 62% 10 £57.7m {2023.- £35.5m}. which reflects both the increase in activity, primarily the mobility programme mentioned atM)ve and the increase in property related costs. University staff costs now represent 32QA of lotsl expenditure (2023". 34%) and increased by £6.3m since 2023. Property costs increased by £7.3m and Oeprecialion by £1.1m. due to the continued expansion of our campus lo accommodate increase in student numbers. The current strategy is to continue this expansion leading lo financial growth and robustness. Reserves Policy 15 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 The University's reseThes policy is that it shoukl have access to sufficienl financial resources to be able lo ensure the sustainability of the University. In determining what level of fina￿la1 re50urce5 are required. the University. has considered the following.. Current and projected levels of general reserves- Level of Working Capital required to operate effectively- The impact of seasonality., The University's risk appetite- The University's appetite to borrow funds and Northeastem's wishes in terms of providing grants.. The likely financial impact of a number of unlikely bul plausible scenarios linked to the most significant risks that the Univer5ty faces. wrth particular attenlK>n lo the liming of the risk and its severity. With this in mind the University is working towards a general reserve ranging between £15m and £25m in order to fund its operations {2023: £6.3ml. The total reserves for the Universty al the year end were £21.3m (2023". £16.4m}. including £4.6m of restricted funds, which mostly relate lo unspent capitsl grants. It should also be noted that this includes a designated fund of £25.5rn represented by Fixed Assels which are not available for general use so the general reserwe position after these adjuslmenls is £18.8lm (2023 1£7.gml). £23.8m short of the lower range in our largel. Until the University reaches its tsrget il is reliant on the continued support of Northeastem Universrty as offered via Ihe Deed of Grant signed on 5th September 2019. 16 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 Going Concem In preparing these financial slalements the Trustees have considered the current financial position of the University together with cashflow forecast for Ihe foreseeab￿ hjture in order to delermine whether the financial. statements can be prepared on a going concern basis. The Init￿t￿eS mentioned in the Yuture ￿an$. sectth bel¢JW. including the growth in student numbers, the launching of double validated degrees and the development of research capabilities will result in steady growth of revenues over the next few years and management have carefulty considered the resources requ￿ed to meet this growth when budgeting to ensure Et IS Sustaina￿e and viable. The negative gener81 reserves position is a result of historical losses incurred in the infancy and growth phases of the Universty. The Universty has only recently started lo move from an operational deficit lo operat￿nal breakeven position, with a view lo producing surpluses wtlhin the next 4 years and will continue to meet its investment and working capital requirements through the grant contributions from Northeastern Universty. which are provided under the Deed of Grant dated 5th September 2019. as reflected above, this support will eventually taper off once the University has reached a p(Mnt of overall financial self-suffKiency. The Trustees have a reasonable expectation that the UnNersity has sufficient resources and support from its parent. Northeastern University in Boston to continue in operational existence for the foreseeable future and il remains appropriate to prepare their financial slatemenls on a going concem basis. Fundraising The University does not carry 04Jt any fundraising activities wilh the general public and no donations are sought from the public. The Universty has no fundraising activities requiring disclosure under seelion 13 of the Charities (Protection and Soual Investment) Act 2011. FUTURE PLANS The future plans include- Teaching and Leaming Continue growing the numbers of students in the University and expand the offering of course5 to both undergraduate and graduate students as well as study abroad {mobilityl students. Student numbers have gone from 3CQ in 2020 to over 1,700 in 2022-23 and the University hopes lo grow student numbers steadily year on year both in its face lo face and online provision. Increasing the offering of workplace leaming OP[￿unitieS buildirKJ on the Apprenticeships launched in Oclober 2020. Research Develop the research capabilities in Lond￿ both in terms of people and infrastructure, therefore increasing the revenue derived from research funding and prepare for a Research Degree Awarding Power5 application. Infraslnjclure lo support Teaching and LeamirvJ and Research Following the move lo Devon House in St Kalherine's Dock. which already offered considerably increased space expansion. the University has opened part of ils Portsoken leased space. and wll continue lo develop that space through FY25 and FY26. Relationship with Its Parent Establish London a5 a genuine hub in the Northeaslem University's global ￿e￿Ork whilst ntinuing lo be a seff-regulating English HE. These initiative5 are ensuring the University's budgets f(K 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 NU London's working cash flow requirements. 17 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 . STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES The Trustees are responsible for preparing the Annual Report and the financial statemenls Trn accordance with applicable law and regulab"ons. Charity law requires the Trustees to prepare.financial stslements for each financial year or period. Under that law the Trustees have elected lo prepare the financial ststemenls in accordan￿ with United Kingdorn Generally Aecepled Accounting Practices {FRS102, The Financial Reporbng Slandard applicable in the UK and Republic of Ireland) and applicable law. Under charity law the Trustees musl not approve the financial statements unless they are satisfied Ihat they gNe a true and fair view of the stale of affairs of the University including income and exp8ndilure for that perKrfJ. In preparing Ihese financial sLitements. thè Tntstees are required to: Select SUrtab￿ accounting poli￿e$ and then aP￿Y them consistently., Make judgement and accounb.ng estimates that a￿ reasonable and prud8nl- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial sta18ments' Prepare the financial stalernents on the going ￿ncern baw"s unle55 it is inappropriate lo presume that the organisation will conb.nue in business. Additionally. since the change in stslus to Unbversity approved by the Privy Counol in 2022, Northeaslem University - London is now also ￿quired lo comply with all requirements in the Statement of recommended practice.. accounting for further and h￿her educaD"on (FEIHE SORP) over and above those requirements as refined in the Charity SORP_ The following summarises how the University's Board fulfils its duties under Section 172 Companies Act 2006.. In the performance of its duty lo promote the success of the University. the 8oard considers the various stakeholders when arriving at business decisions. The Board oversees the responsible management of the University's leaching and learning and research activities to ensure it operates lo the high standards of business conduct and good governance expected from the University- The Board fully understands the potential impacts of the decIs￿nS it makes for our stakeholders. the environment and the communities in which il operates. Engagefflenl with the University's main slakeholder groups. including our students. employee5 and local community is sel out below- Employee Engagemenl Our employees both Faculty and Professional Stsff are fvndamental to the success of our business. Therefore. our success depends on our ability lo engage and work togelher effectivety and construetively. The Board aims for the University lo be a reswnsible employer in its approach lo the pay and benefts of employees. The health. safety and wellbeing of employees 15 one of the primary considerations in the way the Board conducts ils business. In 202314, the follovjing activities have been performed: Regular Faculty meetings with the Executive Principal & Dean induding ff*ekn"ngs wrth representatives of the University and Colleges Union IUCUI. Monthly Professional staff meetsngs run by the CEO lo update stsff on key developments. Disseminalion Ihrough the Senior Management Team to their respective tearns and these key employers acting as a conduil of informab.on back through the ExecLrtive Committee and Academic Board to the Board o Regular newsletters and communications to al staff as well as various staff events sttsdenl Engagement.. Our students are central lo the University fulfillirvJ its Charitable objectives and a5 Such there are many ways that the Board understsnds Ihe key concems of the sludenl body. In 202314. the following activities have been performed". As an English HEI, the University is part of the Nalsonal Sludenl Survey that all third year undergraduate students are able to complete. This evaluates the perfonnance of the Institution across a number of 18 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY-'LONDON FOR THE YEAR ENDED 30 JUNE 2024 metrics whth inform how the UnNersty improves its'teaehing and leaming There are also opportunities for regular.feedbaek as part of the overall 'Student Voice. strategy in temis of our govemance structures and feedback exerctses o Finally there is engagement with the Student's Union on a regular basis lo understand their con¢ems and priorities Other key stakeholders indude our reg￿atots and the community in which we are located. Regulators are a key stakeholder in temis of our licence lo operate and we engag8 with them direclly and as part of Irade bodies such as Guild HE. Engaging with the I￿al community in which we operate is important and we have held sessions with local tenant associations, offered free events to the local community and have also endeavoured to source locally, where possible. Suppliers- we have payrnent runs twice monthly and ensu￿ that all suppliers are paid in a ti￿￿lY manner The Truste8s are responsible for kee￿ng adequate accounting records Ihat are suffiryent to stThv aThJ explain the University's transactions and disclose wilh r9asonable 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, the Accounts Direction as issued by the Office for Stu¢Jents {OfS) and the Charities and FE IHE SORPS. They are 81s0 responsible for safeguarding the assets of the University and hence for taking reasonable Steps for the prevention and detection of fraud and olher irreguU4ribes. PROVISION OF INFORMATION TO AUDITORS Each of the persons who are Tru5lees at the time when this Annual Rekx)rt is approved has confirmed that.. so far as that Trustee is aware. there is no relevant audit information (as defined by Seelion 418 of the Companies Act 2006) of which Ihe UnNersity's auditors are unaware. and each Trustee has taken all Ihe steps.that ought to have been taken as a Trustee in order to be aware of any infomiab.on needed by the UnNersiWs aUdrt0￿ in connection with preparing their report and to establish that the University's aUdrt￿$ are aware of that infomiation AUDITORS The auditors, Crowe U.K. LLP. will be proposed for reappointment in acwrdance with Section 485 of the Companies Act 2006 This annual report was approved by the board on 20th November 2024 and signed on ils behalf R Farquharson TrLiStee T NedeLI Trustee & Chair of Audit Committee 19 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 Opinlon We have audited the financial ststements of Northeastem Universty- London {Ihe charitable company'l for the year ended 30 June 2024 which comprise the Slatemenl of ComprehensNe Income and Changes in ReseNes, Slalement of Financial Position, Statement of Cashflows and r￿leS to Ihe financial statements, including signrficanl accounting Folicies. The financial reporting framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounling Stsndards. including Financial Reporting Standard 102 Ihe Financial Reporting Standard apFAicable in the UK and Republic of Ireland {Uniled Kingdom Generally Accepted Actountsng Prath"cel. In our opinion the financial ststeffonts-. give a true and fair view of the slate of the charitable company's affairs as al 30 June 2024 and of ils inccrfne and expenditure, gain and losses, changes in reserves and of the cash flows for the year then ended., have been propedy prepared in accordance with Uniled Kingdom Generally Accepted Accounting Practice,. have.been prepared in accordance with the requirements of the Companies Act 2006.. and has been prepared in aeeordance wlh the requirements of the Staternenl of Recommended Pr8Ctice- Accounting for Further and Higher.EduCat￿¥ and the Ofs Aceounts Direction (issued October 2019) 1.the Ofs Accounts Direction-). Basls for oplnlon We conducted our audil in accordance with Inlemalional Stsndards on Auditing IUKI IISAS {UK)} and applicable law. Ovr responsibilities under those slandards are further described in the Auditor's responsibilities for the audit of the financial statements section of our repo.rt. We are independent of Ihe charitable company in accordance with the ethical requirements that are relevant to our audit of the financ￿1 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 oblained is suffKient and appropriate to provi(Je a basis for our opinion. Conclusion5 relating to going concern In auditing the financial statements. we have concluded that the Trustee'5 use of the going concern basi5 Qf accounting in the preparation of the financial statements is appropr￿le. Based on the work we have perfomed. we have not identified any material uncertainties relating lo events or conditions that, Individual￿ or co1￿ctive1y, may cast significant doubt on the charitsble company's ability lo continue as a going concem for a period of at least twelve months from when the finanoal slatemenls are aulhorised for issue. (￿r responsibilities and the respcKtsibilities of the Trustees wilh respect to going concem are described in the relevant sections of this rewrt. Other inlomiatlon The Trustee5 are responsible for the other information contained within the annual report. The other infomialion compfises the information included in the annual ￿pOrt. other than the financ￿1 statements and our audttor's report Ihereon. Our opinion on the financial stalemenis does not cover the other information and. except lo the exlenl olherwbse expliciuy slated in our report, we do not expres5 any form of assurance conclusion thereon. Our responsibilty is to read the other informalion and. in doing so. consider whether the other information is malerialty inconsistent with the finanoal stalements or our knowledge obtained in the audit or otherwise appears . lo be materially misstated. 11 we Klenlify such material inconsistencies or apparent material misstalemenls, we are required to delermine whether this gives rise to a material misstalemenl in the financial stslemenls themselves. If, based on the work we have perfomied. we conclude Ihal there is a material misslatemenl of Ihis other information. we a￿ required to report that fact. We have nothing to report in this regard. Opinions en other matters preKrib•d by thè Companies Ad 2006 In our opinion based on the work undertaken in the course of our audrt 20 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 • the information given in Ihe Trustees. ￿pOrt. which indudes the Truslees. Report and Stralegic report prepared for the purposes of company law, for the financial year for %thich the financial staternents are prepared is on515tenl with the financial statements- a￿1 • the Trustees. report and strategic re[￿ induded within the Trustees. report have been prepared in accordance yilh applicable legal requirements. Opinion on other matters rèquired by the Office for Students I"OfS") In our opinion. in all material respects= funds from whatever source administered ty the charitable company for specrfic purposes have been properly applied to those wrposes and managed in accordance wrth the relevant legislation,. funds provided by the Ofs. the Education & Skills Funding Agency and the Departrneni for Edu&ition have tjeen applied in 8ceordance wrth the ￿levant lemis and ￿nditiOns. and the requirerngnts of the OfS'5 accounts direckn'on (issued October 2019) have been mel. We have nothing to report on the followirg mallers wtrwe the Ofs Acc(xJnts Direct￿￿ requires us to report lo you where". the charitable company's granl and fee income. as disclosed in noles 2 and 3 to Ihe accounts. has been materially misstated. • The charitsble company's exF*nditure on access and partiCipa￿n activities for the financial year has been malerialty misslated. Matters on which we are required to report by exception In light of the knowled9e aThJ understsnding lif the charitable company and their environment obtained in the course of the audit. we have identif￿d material rnisstalements in the directors. report included within the Trustees. report. We have nothing lo report in resped of the following matter5 in relation to which the Companies Act 2006 requires us lo report lo you if, in our opinion.. adequate and proper accounlirvJ records have not been kept.. or • the financial statements are not in agreement with the aeeounting records and retums: or certain disclosures of Trustees. rernunerat￿ SP8cthed by law are not made.. or • we have not received all the information and explanation5 we require for our audit. Responsibllities of Truslees As explained more fulty in the Truslees. responsibilities slalement, the Trustees (who are also the directors of the charitable company for the purposes ol company law} are reswnsible for the preparation of the financial statemen15 and for being satssfied that they give a true and fair view. an¢Y for such internal control 85 the Trustees determine is necessary to enable the preparation of financial slatements that are free from. material misstatement. whether due to fraud or error. In preparing Ihe financial stalemenls. the Trustees are responsible for assessing the charitsble company's ability to continue as a going concern, disclosing. as applicable. matters related lo going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operaltons, or have no realistic alternats.ve but to do so. Auditor's responsibilities for the audit of "the financial statements i)Jr objectives are lo oblain reasonable assurance about whether the financial statements as a whole are fre¢ from material misstalemenl, whether due lo fraud or error. and to i55ue an auditor's report that includes our opinion. Reasonable assuran￿ is a high level of assurance. but is not a guarantee that an audit. conducted in accordance with ISAS {UKI will always detect a material misstalemenl when il exists. Misslaletnenls can aiise from fraud or error and are COns￿ered material rf. individuamy or in the aggregate. Ihey could reasonably be 21 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY- LONDON FOR THE YEAR ENDED 30 JUNE 2024 expected to influence Ihe economic dea"sions of users taken on the basss of these finantial statéments. Oetails of the extent to which the audit was considered capable of detecting irregularilEs, including fraud and non-compliance with laws and regulabons are sel out below. A further description of our responsibilities for Ihe audit of the financial ststemenls is bxated on the Financial Reporting Council's website al.. https.'IAwhv.frc.org.uklauditoresponsibililies_ This description foims part of our auditorfs report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularrties. induding fraud. are instances of nonqcompliance with laws and regulatIc￿$. We identrfied and assessed the risks of material Inisslatement of Ihe financial stslements from irregularities. whether due lo fraud or e￿or. and discussed these between our a￿rt team. We then designed and performed audit procedures responsive to those risks. including obtsiniry audr( 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 direcl effect on the ijetermination of material amounts and disclosures in the fin8nual statements. The laws and regulations we considered in this context were Companies Act 2006. Charities Acl. tsxalion legislation. together with the Ststement of Recommended Practice - Accounting for Further and Higher Edu￿t￿)n and the Ofs Accounts Direction. We assessed the required compliance ¥Mth these laws and regulations as part of our audit procedures on the related financial slalement items. In addition. we conS￿ered provisions of other laws and regulations that do not have a directeffecl on the financial statements but compliance wth which might be fundamental to the charitable ￿MpanY'S lo oper8le or lo avoid a material penalty. We also considered the op￿rtunI￿eS and incentives that rnay exist within the charitable Company for fraud. The other laws and regulations we conS￿ered in this context for the charitable company were Higher Education and Research Act 2017. Teaching EX￿llenCe and Student Outcomes Framework, General Oala Proleclion RegulatDns and Health and Safety." Auditing standards limit the required audit pr(Kedures to identsfy non￿ompliance with these laws and regulalions lo enquiry of the Tnjstees and olher rnanagement and inspection of regulatory and legal correspondence, rf any. We identified the grealest risk of rnalerial impad on the financial statements frcwn irregularities. including fraud. to be within the override of controls by management. Our audit procedures lo respond to the risk these risks included enquiries of management about their own Idents'ficat￿ and assessment of the risks of irregularities, sample testing on the posting of journals. revwing accounling estimates for biases. reviewing regulalory eorrespondents with the Charity Commission. Office of Students {OfS}. Quality Assurance Agency for Higher Education IQMI and reading minutes of meetings of those charged with governanee. Owing to Ihe inherent limitations of an audit. there is an unavoidable risk that we may not have detected some material misstalernents in the financial slalemenls. even though we have properly planned and performed our audit in accordance b*ilh auditing standards. For example. the further removed non-compliance wrth laws and regulation5 lirregulariliesl is from the events and Iransacbons reflected in the financial statements. the less likely the illherently limited procedures required by auditing stsndards would identify it. In addition, as with any audit, there remained a higher risk of non-delection of irregularities. as these may involve collusion. forgery. intentional ornissions. misrepresentations. or the override of intemal controls. We are not responsible for p￿ventIng non- compliance and cannot be expected to delect rKJn-compliance with all Jaws and regulations. Use of our report This report is made solely lo the charitable company's membets. as a bc*Jy. in accordance wtiti Chapler 3 of Part 16 of the Companies Act 2006. Our audit.work has been undertaken SQ that we might state.lo the charitable company's members those matters we are required lo stale to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accepl or assume responsibility to anyone other than the charitable company and the chanlable company's members as a body. for our audit wor1(. for this report, or for Ihe Op￿10n$ we have formed. INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTHEASTERN UNIVERSITY - LONDON FOR THE YEAR ENDED 30 JUNE 2024 Guy Biggin Senior Statutory Auditor For and on behalf of Crowe U.K. LLP, Ststutory.Audrtor Cheltenham Dale= 27 November 2024 23 NORTHEASTERN UNIVERSITY- LONDON STATEMENTS OF COMPREHENSIVE INCOME AND CHANGES IN RESERVES FOR THE YEAR ENDED 30 JUNE 2024 UrwestritJed FuThts . RestrKted Fwd5 2024 £'ooo 2023 £'orx) INCOME FROM- TuilNM Fees and Educathjn c￿tr￿ts (knmmertsl gran Granls Irom parent wlity Teaching & Research Capital Grants . Re5e3rth Gvants Contr¥ts Inveslmenl Ir￿0￿ 49.4Y) 49.490 214 30,427 134 214 4,393 5.793 34 12,186 82 35 87 2.612 Other 1ft￿me 2.612 62.623 6.041 44,199 EXPENOITURE ON: Staff Costs (Ther operzbng expEr6e5 Building Costs DepreGial Interest and dher fmaru c0518 18.532 23.911 12,278 2.738 18.532 24.179 12278 2.n8 12,244 16,865 4,979 1,647 10 35.545 57.470 57,738 IDEFICID I SURPLUS 8EFORE TAXI 4MS 8,654 Taxation IDEFICITII SURPLUS FOR ThE YEAR 5.773 8.654 Translar be￿￿en lunds 16 9.585 19.5851 TOTAL COhTrREHEN&VE INCOME 8.697 4.885 8,654 STATEMENT OF CHANGES IN RESERVES Inr(wn* & EAp*ndiluYe ReseThe Unrestnoed Funds Re51rKted Fund5 Total £'ooo £'ooo BALANGE AT 1- JIILY X122 1,697 7.n7 SuWus Irom the I&E siat*nent Tr￿sfer b8hv8en funds 13,4871 5.398 1.9t1 12.141 15.3981 6.743 8.654 8ALANCE AT 1W JULY 2023 8.(Ql 8,440 16,441 SUr￿￿s Irom the h%E siatemenl Transfer b8h¥eenlun¢Js 18871 5.772 19.5841 13.8121 4,885 8.697 4.B85 BALANCE AT tr JIM 2024 16. 4.628 21,326 All items of income and expenditure are related to continuing activities. The accompanying notes 1 10 22 form an integral part of these financial statements. 24 NORTHEASTERN UNIVERSITY- LONDON STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2024 2024 £'ooo 2023 £'ooo Nole FIXED ASSETS Tangible Asset5 Investments 10 29.628 18,320 29.629 18,321 CURRENT ASSETS Debtors 12 6.784 3,870 Cash at bank and in har 4.249 10,557 Total ¢urr•nt ass•ts 11.033 14.426 LESS CREDITORS: falling due with#i one year 13 .110.SS4) (13.922) NET CURRENT ASSETS I {LIABILmES) 479 504 TOTAL ASSETS LESS CURRENT LIABILITIES 30.108 18.825 Provisions for liabilities & creditors due after one year 14 (8,782} 12.3841. 21,326 16.441 FUNDS Restricted funds Unrestricted funds Unrestricted funds 16 16 16 4.628 (8.8221 25,520 8.440 17.9351 15,936 TOTAL FUNDS 21.326 16.441 The accornpanwng notes 1 10 22 fomi part of these financial slalements. The financial slaternents were approved and authorised for issue by the board on 20th November 2024 and were signed on its behalf by.. R Farquharson. Trustee T Nedell, Trustee & Chair of Audrt Committee Registored number: 07317195 25 NORTHEASTERN UNIVERSITY- LONDON STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2024 2024 £'ooo 2023 £'ooo "Note CASH FLOWS FROM OPERATING ACTNITIES Cash generaled from operations (see below) Net cash from operating activitses 5.933 5.933 14,993 14,993 CASH FLOWS FROM INVESTING ACTniiTIES Purchase of propety. plant arKI equiKxnent Investment income 112.3281 87 12.241 17.0441 35 Net cash used in investing activiti•s 7.009 Net increase l (d•¢roas•} in cash and cash equivalents 16.308) 7.984 Cash and tash equivalents al beginning of pen(¥d 10.557 2,573 Cash and cash equivalents al end of period (see beh)w) 4,249 10,557 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities .Nel income I (expenditu￿) Adjustments for 4.885 8.654 Depreciaknon Loss ￿ DIS￿SaI of Fixed Assels Investment income. 2.738 1,647 {87} 129141 135) 1640) Ilncreasel l Dec¥ease in trade and other receivables Increase I Ioecreasel in trade payables (inc. short lerm provisi￿) Increase I IDecreasel in provisi￿S Cash generated from operations 12 13 14 1.661 356 5,367 5.933 14.993 ANALYSIS OF CASH ANO CASH EQUIVALENTS Cash at bank 4249 10,557 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 1.1 Company Information Northeastern UnNersty- London ts a registered charily (no. 1189858) and public benefit entity in England and Wales Iregistralion approved 9 June 20201 and a company limited by str￿res incorporated and registered in Englan(J {no.073171951 on 16th July 2010. The address of the registered office Devon House, 58 St Katherine's DC￿k. London. E1W 1JP. The University thanged its name Northeastem University - London on 13¢h July 2022. 12 Basis of preparalion of financial $ta¢ernents These financial ststements have been prepared under the historical cost convention in accordance wrth applicable United Kingdom accounting standards, induding Financial Reporting Standard 1021'FRS 102,). and with the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance wrth the Financial ReporDng sta￿lard applicable in the UK aThJ Republic of Ireland IFRS 102) and the Ofs Accounls Direction120191. 1.3 Going Concem In preparing these financial $tslernen15 the TnJstees have ConS￿ere￿ Ihe current financial position of the University together with cashflow forecast for the foreseeable future in order to determine whether the financial sLgtemenls can be prepared on a going concem basis. The inilialives mentioned in the 'fvture plans, section below. including the growth in sludenl numbers, the launching of double validat9d degrees and the devebpment of research capabilities will result in steady growth of revenues over the next few ygars and managemenl have carefully considered the resources required lo meet this growth when budgeting 10 ensure it is sustainable and viable. The negative gener81 reserves position is a resum of historical bsses incurred in the infancy and growih phases of the University. The Universty has only recently started lo move from an operab.onal deficit to operational breakeven position. with a view to prcylucing surpluses within the next 4 years and will continue lo meet ils investment and working caprtal requirements through the grant contributKtrns from Northeastern UniveTSIty. which are provided under the Deed of Grant dated sm September 2019., as reflecled above, this support will eventually taper off once the UnNersrty has reached a point of overall financial self-suffiaency. The Trustees have a reasonable expectation that the Universty has suffKient resources and support from ils. parent, Northeastem University in Boston to continue in operational existence for the foreseeable future and il remains appropriate lo prepare their financial statefflents on a going concem basis. 1.4 Preparation of consolidated financial statèments The financial statements contain informathJn about Northeaslem University- London as an individual charitable company and do not contain consolidated finanoal informalion on the grounds thal the subsKliary 15 immaterial. 1.5 Fees and grant income Tvition fees received for students studying accredited degrees and accounted in the year of study with bursaries and stholarships awarded in the year credited against these fees in the accounts. Teaching Grants received from Ofs. accounteil 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 belween Teaching & Le8rning unrestricted grants and Capital ￿stric18d granls. External research grant5 are accounted for in reslricted income and moslly disbursed in the year received. Additionally, the Universrty is in receipt of ESFA income for the provision of apprenticeship training. this is treated as restricted and recogni5ed based on entitlement. 27 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 1.6 Tangible fixed assets and depreciation Tangible fixed assets are ststed at cost less depreciation. The University holds no property or freehold land assets. Depreciation is provided at rates calculated lo write off the cost of those assets, less their estimaled residtsal value. over their expected usefu" I lives on the followng bases and recognised within the stslement of . financial a¢livitses= Office equipment 25°h straight line Fixtures & fittings 10% straight line Leasehold improvements over the lease term Assets in the course of constnjction are capit81ised at cost but are not depreciated until they become available for use. they afe then depreciated over the lease lemi. 1.7 Intangiblg fix￿ assets and amortlsation The University has no intangibk fjxed assets as at the date of signing these a￿OuntS. 1.8 Penslon The University operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the perit>J to which they relate. 1.9 Operating Leases Rentals on operabng leases are Charged to the and loss account in the period in which they fall due. 1.10 Funds The total funds of the Univergty are allocated to unrestricted and restricted based on the lemis set by the donors. . Unrestricted funds are funds that are available for use at the discretion of the University in furtherance of its objectives and are divided between Designated and General Funds. Designated Funds are unreslricled funds which have been set aside by the University for specific purposes. which include those funds represented by fixed assets. General Funds are funds available for the provision ofworking capital and reseNes for the general administration of the Univefsty. Restricted funds comprise grants where donors have earmarked fvnds for specific purposes. The majority of this is related lo grants provided by NMheastem University for the sok purpose of supporting the development of the University's new campus. At the year £1.6rn rernained unspent troJl desigrialed for the purpose of fixed asset (Jevelopment." Following the decision to elose the related trust. New University of the Humanities Trust ITrusl), charity ref number 11416081. the Trust Ifansferyed the remaining assets1£78kl to the Universty, Whe￿ these assets are held in a separate restn'cled fund. This fund will be ulrlised in line ￿th the articles and objectives of Trust and reserved for the financing of bursaries and hardship grants for students who meet means lesled eligibility criteria. During 23-24 £28,00012023.. £6.0001 of this fund were released to support students wf(h financial needs leaving a fund of £38k to disburse in future years. 1.11 Financial Instwments The University has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic financial instruments are initially reccAJnised al transaction value and subsequently measured at amortised cost using the effective interest method. Finanoal assets held at amortised cost comprise cash in hand and al bank, logelher with Irade and other debtors. Financial liabiif(ies held at amortised cost comprise bank loans and overdrafts, accruals. trade arml other creditors. Trade creditors Trade creditors are.Th)t interest bearing and are staled at their nominal value. Loans 28 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Loans. are measured at fair value. net of transaction costs. Inveslment In subsldiary The investment in subsidiary is measured al cost le55 impairmenL 1.12 Rgdundancy payments Teminalion benef￿ are payable when employment is terminated by the Unhversity or whenever an employee accepts voluntary redundancy in exchange for these benefits. The University recognises lerminalion benefits when a fully signed settlement agreement is in place, or when the cost has otheTh¥ise been confirmed and committed to. 1.13 Critical Accounting Judgements and Key Sources of Estimation Uncertainty In the application of the University's accounling pdioes. Ihe Trustees are required lo make judgement5. estimates and assumptions about the carying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptsons are based on historical experience and other factors that are considered to be relevant. Actual results fflay dtlfer from these estimates. The estimates and underlying assumptions a￿ reviewed on an (￿-gOIng basis. Revisions lo accounting estimates are recognised in the period in which the ests.mate is revised. whether the revision affects only that period, or whether they also affect future perw)ds. 1.13.1 Provisions Provisions are ￿CogniSed when the University has a present legal or conslruclive obligab'on because of past events. il is probably that a transfer of economic benefits will be required to Sett￿ the obligation and the amount has been reliably estimated. Where there are a number of ￿milar obligations, the likelihood that and outfiow will be required in settlement 15 detemined by considering the class of obligab'ons as a whole a proVis￿n is recognise(J even rf the likelihood of an ouffiows respect to any ￿e rtem InclLKled in the same elass of obligatitins may be sm811. Provisions are measure(1 al the present value of the amount expected to be required to sellle the obligations using the pre-tax rate that reflects current market assessments of the lime value of money and the risks specific lo the obligation. The increase in the provisron due to passage of time is recognised as interest expense. A key wovision 1$ the Restitution esb.mate for lease srtes in line wlh contract agreements. The University capilalises the restilukn.on value over.the term of the lease. The calculation is initially based on eslimales al the point of completing the works for any given sile. Thereafter Ihe University review the reslitulion eslimales if the use or fabric of the propety fundamenlalty changes or every five years if il does not to ensure the eslimates are still appropriate and current market values are applied. In the view of the Trustees, no as5umplions concerning the future or estimation uncertainty'affecting assets and liabilities al the balar￿e sheet dale are likety to result in a material adjustment to their carying amounts in the next financial year. NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 2024 £'ooo 2023 £'ooo TUITION F.EES AND EDUCATION CONTRACTS Unrestrid•d f•e Income Fee In￿rne- Taught Awards Tuition Fees - UK Undergraduates Tuition Fees - UK Postgraduates Tuition for Part lime Undergraduale Apprentices Tuition Fees - Part lime Postgraduate Apprentices BD" Cre(lit bearing short courses 4,424 549 2.963 404 1.302 533 295 5.947 997 52 7,976 Total Taught awards Fee income- n¢Jn Qualifying courses Tuition Fees - Northeaslem University Programmes . BD" Non-credit bearing short courses Total non-Qualfying C(￿rse5 41.276 238 41.514 24.231 699 24,930 Total Fees 49.490 30,427 The fee income above is net of all student support as fdfows: Bursaries for Non-WP students "" Scholarships- Undergraduate students Scholarships- Postgraduate students 75 86 14 175 49 82 211 Business Development divisi￿ prirnarily dealing wrth Apprenticeship programmes Bursaries for Widening Participab'on Students area accounted for as a cost in the'relevanl department. 2024 £'ooo 2023 £'ooo FUNDING BODY GRANTS Rostricted Ofs Teaching Grant OIS Capital Grant 169 45 109 25 Total Restricted Funding Body Grants 214 134 2024 £'ooo 2023 £'ooo GRANTS FROIA NORTHEASTERN UNIVERSITY Unrestricted Teaching and Leaming grant Restricted Capital Development (Devon House) 4.393 5,793 12,186 Total Restricted Capital Grants from NU 10.186 12.186 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 2024 £'ooo 2023 £'ooo. RESEARCH GRANTS AND CONTRACTS Restrictgd Exlemal research grants 82 Total Resttarch Grants and Contracts 82 TOTAL INCOIAE FROM FEES AND GRANTS INOTES 2-5) 59.924 42.829 2024 £'ooo 2023 £'ooo OTHER INCOME BD DNiSM)n other income Other acadernic income Student Accommodation Inc(wme Miscellaneous income 270 295 946. 1.412 522 93 Totsl Other InGoffle 2.612 1.334 2024 £'ooo 202J £'ooo INTEREST INCOME Interest linvestmenll income Total Other Income 87 35 35 44,198 Total income 62.623 2024 £'ooo 2023 £'ooo ANALYSIS OF EXPENDITURE Staff costs Oiher operating expenses Building costs Depreciation costs Interest and other. finance costs 18,533 24,179 12,276 2.738 12,244 16,665 4.979 1,646 10 35,544 Total Expendilure 57.737 Analysis of Other operating expenses Teaching and Research non pay expenses Student Recnjilmenl activities Admissions & Access and Pa￿"¢1patIon Marketing Activities Other Support linc HR. Finanee & IT) Governance costslsee below) £'ooo 20,207 299 194 938 2.473 68 24.179 £'ooo 13,807 283 209 761 1.542 64 16,665 Tolal Operating Expenses 31 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 ANALYSIS OF EXPEMOITURE (Continu￿) Governance Cosls comprise £'ooo £'ooo Auditors remuneration- audit services Auditors remuneration- lax and other services Total Govemance Costs 63 39 25 68 Access and Participation Cost$ comprise £'ooo £'ooo Aceess investment Financial support provided lo students in the financial yea Research and evaluation Support for disabled students in the finanoal year T¢Jtal APP Costs 142 58 23 147 71 18 223 236 Financial sUPPOrt costs in the table above indude £62k.for wage5 not included in the Admissions & Widening Participation fKJure al)ove as they are reported within Direct Staff Costs allocale¢J lo T&R {2022.' £42k). STAFF COSTS The aggregate staff costs for the year were as follows Salaries and wages Social Security costs Pension costs {Slakeholder and Oeeupatitinal schemes)" Other benefits 2024 £'ooo 15,526 1.691 1,205 110 2023 £'ooo 10,246 1,135 790 66 Total Staff Costs 18.532 12.237 Aggregale employee benefits of key.managernenl personnel (KMP) 2,127 1,616 Key rnanagement personnel are listed on page 2. Average number of employees on a lull lime equivalent basis was as follows= Trustees Tuition and researth Support 137, 128 T¢)tsl 326 238 Average number of employees on an aclual bags was as follow5 Trustees Tuition and research Support 199 264 154 Total 265 32 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 STAFF COSTS (Continued) Number of htqher paid employees with aggregate empknyee benefits in excess of £60k: 2024 2023 £60.001-£65.000 £65.001-£70.000 £70,001-£75.000 £75.001-£80.000 £80.001-£85.000 £85.001-£90,000 £90,001-£95.000 £95.001-£1¢)0,000 £100.001-£105.000 £105,0014110.000 £110.001-£115.000 £120.001-£125.000 £150,0014155.000 £165.001-£170.000 £170,001-£175.000 £195,001-£200.000 £210.001-£215.000 £220,001-£225,000 £225.001-£230.000 10 Total 46 30 There were three ex4Jratia pa￿ents in the year amounling lo £60.967.4912023 - £nil). Numb•r of employees with a basic salary [￿E) in exuss of £100.000 The number of staff including the CEO whose FTE basic sa￿ry (before salary sacrifice and excluding bonuses. employer's pension contribution) in excess of £100.000 in the following ranges was.. 2024 2023 £100,001-£105,000 £105,001-£110.000 £110.001-£115.000 £115.001-£120.000 £150.001-£155.000 £160.001-£165.000 £165.001-£170.000 £170.001-£175.000 £185.001-£190.000 .£20S.￿l-£210.0 £220.001-£225.000 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 STAFF COSTS {Continued) HEAD PROVIDER (TRUSTEE REMUNERATION) DISCLOSURES In accordance wth the Articles of Assctialicffi. the CEO (Head of the Provider for the whole year) R Farquharson, received a basic salary of £224.751 during the year (including a bonus of£38,1001. of which £15,496 was paid into a pension scheme by way of salary sacrifice. In addition lo this the University also paid £17,070 in employer pension contributions. This is induded in the above note as R Farquharson is dassed as KMP as well as a Twstee, due to his role as CEO. He is a member of the University Salary Sacrifice pension scheme and is not in receipt of any other benefits. The Head of Provider basic salary ratK) is 4.2.. 1 to the median salary in the University. The ratio of his total remuneration including other benefits is also 4.2=1 compared to the median. In the prior year. R Farquharson's remuneration was of £198.812 (inclusive of £33.480 bonus payrnents) and salary sacrifice amounting to £6,770 for pension payments. The Untversity made further pension conlributions of £7.465. The process for reviewing the salary for the Head of Provider is as follows.. UCEA salary benchmark data is purchased and then used lo review the ￿e1 of remuneration of the relevant members of stsff compared to equivalent UK HE providers in terms of the University's size, development and k)cation. This external benchmarking dala is then analysed by the Board of Govemors 'remuneralion committee in light of the overall perfomiance of the University, which it monitors via Board meetings. and performance of Head of Provider. This performance reV￿wS educational. financfjal. regulatory and operational performance of the Universty- The Remuneration eommtttee in assessing the performance of Ihe University and the contribution provided by the Head of Provider to this perfomance fell that this merited the level of remuneration of the Head of provider on a stsndabne basis and in compartson lo other institulKJns. The Remuneration committee of the Board is fomed of all govemors. excluding the Hgad of Provider. There were no expenses relating to travel and accommodation incurred in his capacity as Tnjstee in the current and prior year. NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 10 TANGIBLE FIXED ASSETS OT £'ooo FF AUC £'ooo Ll £'ooo Total £'ooo £'ooo Cost At 1 July 2023 Additions Oisposals Transfers from AUC lo Ll 3.182 1,876 (12) 2.217 55 29 1.806 10.764 13.691 20,951 14.053 14.714) 4,714 At 30 June 2024 5.046 3.601 7.856 18.405 34.992 Depreciation At 1 July 2023 Charge in the year Disposals 1.273 1.102 161 269 303 1.079 1.318 2.632 2,738 16 A130 June 2024 2.369 572 25 2,397 Net book valu¢ As at 30 June 2024 2,677 3,029 59 7.856 16.008 29.628 AI 30 June 2023 1.909 1.806 12.612 18.320 ' OE- Office E￿I￿nI -AUC.A55ets Under C0nSlM FF- Flxtur•s and Fittirw5 U- Leasehold ImprO￿ents '. TE-T•a¢hing E4uipment FIXED ASSET INVESTMENTS Investmont in Subsidiaries Cost Al 1 July 2023 Additions £'ooo At 30 June 2024 Net book value As al 30 June 2024 At 30 June 2023 The Universty's inveslment at the balance sheet dale is one ordinary share in a 1 OOYO owned Subsidiary. New College of the Humanities Lld, INCHL} Devon House. 58 St Kalherine's Dock, London, E1W 1JP a company incorporated in Ihe Uniled Kingdom with cofflpany number 07917776. whose principal activity was the provision of higher educalion in the humanities. NCHL is now dormant so il had no trading aclivily, its nel reserves remain £75.598. as per June 2020. Reserves indude a balance owed to NU London which is now impaired in these accounls as il is deemed unlikely it will be repaid in the medium term. This entity has not been included within the consolidation on the grounds that the entity is.immaterial lo th8 group. 35 NORTHEASTERN UNIVERSITY- LONDON NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 12 DEBTORS 2024 £'ooo 20 2023 £'ooo 110 336 2.530 893 Trade debtcffs Amounts due from Parent Company Prepayments and accrt￿d income Other debtors 128 Total 6.784 3.870 13 CREDITORS Amounts falling due within one year 2024 £'ooo 4.058 5,241 488 2023 ' £'ooo 2,257 10.356 334 356 96 523 13.922 Trade creditors Accruals and deferred income Tax and social 5ecufity Dilapidation provision for prevkjus leasehokl- Short term provi5i0n Other creditor5 Total 67 700 10,554 The movement in credilors frcm 2023 included in the Statement of Cashflows removes the releasè of the Dilapidats'on prowsion included above as it had already been accounted for as part of provisions." Amounts falling due after one year 2024 £'ooo 4,674 4.108 8,782 023 £'ooo Nominal rent accrual falliThJ beYc￿d one year Restitution provision (see note 14) Total 2.384 2,384 xnounts falling due after one year in 2023 for r#)minal rent was included within accruals in amounts due within one year. Had this been reported as a long. term creditor. loThJ term creditors would have been increased by £2,788k to £5.172k. AGCn￿lS would have been reduced to £7.568k with current creditors reduced overall to £11.134k. 14 PROVISIONS Other provisions 2024 Total £'ooo 2,836 (385) 1.724 4.175 2023 Tolal £'ooo 1.635 Dllapidati¢)n £'ooo 356 1356} Rest1t￿lOn £'ooo £'ooo Balance brought forward Released in the period Provided for in the periLMJ 1291 1,724 4,108 1.201 2.836 67 The dilaphlation provk8￿n reLaled to the.Univer5ity's lormer wemYs?5. was oNJoing since 2022 but in 2023124 the univeNty recgived the landlorf's cOnfiMat￿ ofcc*nplet•)n and were aue to rèlèasa thè funds. NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 In 2021 a prowsK￿ was created againsl the costs of restitution for the lea5thdd in Devon House. whith span5 15 years. In addilion in 2024 a provision was C￿ated against other buikjings leased by the university,. Portsoken and Vine S￿et. These costs were estimated by our sur¥eyors Hennessy GLxldeA and are re¥1￿9d on an annual basB to include any charoes of estimates as well a5 any addrt*Jnal leasehold properfiès that requi￿ a ￿StrIUt1O￿. Thts provision is I￿l￿ded in L*editots due aftw year. The Other t￿O¥1s1On relates lo potenlial repaynwts concemry rKJn qualtyng fee income. 15 OPERATING LEASE COMMITMENTS During the year £22,583 was recogni5ed as an expense in the Statement of Financial Aclwities in respect of operating leases12023. £3.423kl. At 30 June 2024 the University had the following lolal commitments under non-cancellable operating leases over the remaining life of these leases. 2024 £'ooo 2023 £'ooo Land and Buildings Within one year Between hvo and five yèars After more than five years 3.979 38.115 62,221 3.381 17,160 31,035 104.315 51.576 In October 2020 the University s*gned a 15 year lea% fcrf 3 spaces within Devon House, Sl Katherine's Dod¢. The leases offered a ￿nI fvee period of 23 months al Ihe beg'nniThJ ol the c4)nlract and a further 6 monlhs on the 10° anniversary. In Décèmbei 2021 the UnNèrsity swed a further leas• for Second Flcor East of D￿n House to run concurrenuy vnlh existing lease, which aso indudes sirrMlaT rent free per￿￿s. In December 2022 ihe Unl￿rS1ty signed a 13 year lease for the firsL s￿)nd and third floor ol ma￿1¢ Quay, Sl Katherine's DoGk. The lease offered a rent free pprir#J gf 20.rnwths at the bèginning ol the wntract. 'At Ihe same Iwne Ihe UnNeNty also ggne(l a 13 yeai lease for Ihe ground floor and basement of Marble ￿ay. St Katherine's D¢xk. The lease Offe￿ a rent free peiK*J of 23 rTh)nths at the beginning ol the contract. In May 2023 th¢ Univwwty $igned a four year loase fty fvtr)retown and in Febwary 2024 an 11 year lease for Portsoken. The schedvte at#)ve refkcts the bming of actual payments to the landhyd and reflects the renl free ￿tsd$. In additK)n lo thè above, the University enters into r￿trac￿al agreements ￿1h various student accommodation providers in adVar￿ of the acailemic year to ensure prOvi￿On of accommodation to students both in our mobility programmes and UK underyraduate programmes. Below rep￿sents contractual commitmenls not yet paid for at year end. 2024 £'ooo 2023 £'ooo Student Accommodation cornmitments Within one year Between and ffive years After more than five years 25.293 43,190 1,117 17.748 69,600 17,748 37 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 16 FUNDS NOTE FOR CURRENT YEAR AND PRIOR YEAR 2024 ' Transfers.. gain$ and los505 £'ooo Balaftce at 30 June 2024 £'ooo Balance at 1 July 2023 £'ooo Income Expenditure £'ooo £'ooo Unrestricted funds General ReseNes P&L Capital Designated fiJnds- FA (40,539) 32.604 15.936 8.001 56,582 (57.470) 141,4271 32.604 25,520 16.698 9.585 9.585 56.582 (57.470) Restrlctsd funds NCH Trust 1281 38 Exlemal Grants 25 202 {195) 32 Capital Funding 8,349 5.838 6.041 1451 (268> 19,5851 {9,5851 4,558 4.628 Totsl funds 2024 16,441 62,623 {57,738) 21.326 2023 Transfers gains and losses £'ooo Balance at 30 June 2023 £'ooo Balance at 1 July 2022 £'ooo Income Expendlture £'ooo Unrestrtcted funds General Reserves -P&L Capital Designated funds - FA 137.052) 32.604 31.797 {35.2841 140.5391 32.604 10,538 6.090 5.398 5,398 15,936 8,001 31.797 (35.284 Restricted funds NCH Trust Extemal Grants Capital Funding 72 {6) {2301 1251 (261) 66 -25 8,349 8,440 191 12.211 12,402 1,561 1.697 {5,3981. (5.3981 Total funds 2023 "7.787 44.199 (35,5451 16,441 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Analysis of net assets be￿een funds: 2024 Restricted £'ooo Unr•slrict•d £'ooo Designated £'ooo 29.628 Total Funds £'ooo 29,628 14,1941 14,1081 21,326 Fixed Assets" Nel Current Assets Provisions 4.628 {8.822} 14.1081 25.520 4.628 18.8221 2023 Reslricted £'ooo Unrestricted £'ooo Designated Tolal Funds £'ooo' 18,320 505 12.3841 16.441 Fixed Assets Net Current Assdts Provisions 18,320 8,440 17,935) 12.384} 15,936 17,9351 17 SHARE CAPITAL 2024 £'ooo 2023 £'ooo Allottgd, Call￿ up and fully paid Ordinary sha￿5 of£1 each Capital Contribution 13,850 13,850 13,850 13,850 18 FINANCIAL INSTRUMENTS 2024 £'ooo 2023 £'ooo Financial as5e15 measured at amorbsed cost Financial assets measured at fair value Financial 11a￿"1111eS measured at amortised cost 5,252 13.020 (16,645) (11,3931 {9,833) 3.186 a) Financial assets measured at amortised c05t indudes include cash. trade and fee'debtors. staff loans. other debtors & accrued incoffle. bul exclude amounts due from HMRC. bl Financial assets measured at fair value consists of investments. cl Financial liabilities include trade creditors. other creditors. accruals. bank loans & pension liats"lities bul excluding anh)unts owed to HMRC and deferred income. 39 NORTHEASTERN UNIVERSITY- LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 19 CAPITAL COMMITMENTS As al 30th June 2024 the University was undergoing a eapilal project lo refurbish the Portsoken Project from office lo leaching space. The committed costs of the project at that date were £8,381,183 of which £4.429,020 had been spent already. leaving a furthercapital commttment beyond year end of £3.952.163. 20 RELATED PARTY TRANSACTIONS The Universty's parent is Northeaslem University. an educational in5titutK)n irwrporated under the laws of the Commonwealth of Massa¢husetts. United States, being a non-slock. non-profit educational charity "with tax exempt slalus IEIN.. 04-16799801 under seckn.on 501{cl(31 of the United Stales Internal Revenue Code. Main address 15 360 Huntington Avenue. 8oston. MA 02115. United Slates. Consolidated accounts are available on Northeaslem Universty's websrte.. https'.Ilfinance.northeaslern.edulfinancial-statements. There were no related transactions tn the year with the subsidiary. NCHL, due to the latter being domiant. See rK*le 8 for refefence lo impaimienl of debil owed from NCHL to NU London. 20.1 INTERCOMPANY TRANSACTIONS The Universty recerved £52.3m from its Pa￿nI company during 2023-24. £41.3m for UG mobility provision, £5.8m for Capital Grants, arKI £0.8m for other services. As at 30th June 2024 £36k of this remained due to the University (see note 12). 21 CONTINGENT LIABIUTIES The University had no contingent Itabililies as at 30 June 2024. POST 8ALANCE SHE￿ EVENTS The Universily had no post balance sheet events.