Registered number: 00408340 Registered Charity: 214339 ## PORTLAND COLLEGE ## ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022 ## **PORTLAND COLLEGE** Nottingham Road, Mansfield, Nottinghamshire NG18 4TJ (Registered Office and Principal Address) Telephone : 01623 499111 A Company Limited by Guarantee No. 00408340 (England & Wales) Registered Charity Number 214339 ## **BANKERS** HSBC Bank plc 1 St. Peter's Street, Derby DE1 2AE ## **SOLICITORS:** Freeth's LLP Cardinal Square, 2nd Floor, West Point, 10 Nottingham Road, Derby DE1 3QT ## **AUDITORS:** Patron : Her Majesty The Queen (1974-2022) President : Mrs A Swan Parente MBE DL Vice-Presidents: Mr K McDonald Mrs D McDonald Mr H P Matheson DL Professor C O'Brien OBE ## **BOARD OF GOVERNORS & COMPANY DIRECTORS** Cooper Parry Group Limited Sky View, Argosy Road, East Midlands Airport, Castle Donington, Derby DE74 2SA ## **INSURANCE BROKERS:** Hettle Andrews & Associates Limited 9th Floor, Eleven Brindley Place, 2 Brunswick Square, Brindley Place, Birmingham B1 2LP Chairman : Mr T S Richmond OBE TD DL Vice Chairman : Dr D Green Mr N E Aspley (Resigned 26 April 2022) Mrs H K Atwal (Resigned 19 July 2022) Mr M Briggs Mrs J Butler Councillor S Deakin (co-opted member) Mrs S Egley Mr P Emerson DL Mrs A Farr DL Professor D Fathers DL Mr Stephen Jackson Mr David Sneath DL Mr T Vasishta (Resigned 26 April 2022) Mr S Walsh (Resigned 26 April 2022) Mrs M Murray (Appointed 2 November 2022) Mrs D Jackson (Appointed 25 January 2023) ## **KEY MANAGEMENT PERSONNEL: SENIOR MANAGEMENT TEAM** Principal & Chief Executive Officer: Dr M Dale Assistant Principal Development: Mr E Johnstone Assistant Principal Corporate Services: Mrs L Kenwright Assistant Principal Quality & Curriculum: Mrs A Newton-Soanes Head of Care: Mr I Onwukwe Page 2 PORTLAND COLLEGE REPORT OF THE DIRECTORS ON THE FINANCIAL STATEMENTS The Directors Imembers of the Board of Governors) present their annual report and financial stotements for the year ended 31 August 2022, which comply with Ihe provisions of Ihe statement of Recommended Practice ISORPI 'Accounting and Reporting by Charities" IFRS 1021 in preparing the annual report and financial statements of the charity. The strategic report required under cornpony law is included in the report ond covers the sections of achievement and performance, financial review and plan5 for future periods. Portlond College hos Iwo wholly owned sub5idiories, Portlond College Enterprises Limiled ond Polly Teach Limited, held in Portland College Enterprise Limited. All income, expenditure ond bolance sheets hove been consolidated irnlo the Portlond College accounts. with explanatory notes. Reference and admlnlstrative detail$ Portland College is a company limited by guarontee and o registered charity. The Registered Office is os shown on the front cover. The present Directors and any other Directors who served during the year are lisled on Ihe front cover, together with the Potron. President. Vice-Presidents, key management personnel and the College's external advisers. Stsucture. govemance and management Governlng Document Portland College was founded as a company limited by guarantee (Company number 4083401 on 12 April 1946 and is governed in accordance with its Articles of Associotion. As a registered chority Icharity number 2143391 the College is also subject to the rules of the Charity Commission. The group results incorporate Portland College Enlerprises Limited and Polly Teach Limited bolh companies regislered in England and Wales. The College is controlled by o Board of Governors (the Direclors under Company Lawl. who bring a broad ronge of expertise lo the College ond are appointed by the Members of Ihe College at a General Meeting. Under Arlicle 25, the Governing Body musl comprise not less than 10 Ordinary Governors ond lif and only if appointed as Governors) the President ond Vice- Presidents of Ihe College. An Ordinary Governor is appointed for a lerm of four years, and normally would selve no more than Iwo consecutive terms. The Ex-officio Members i.e. Pre5idenl and Vice-Presidents are appointed onnuolly. On appointment, new Directors are given o personal induction to the College. individual meeting5 with all senior managers and on information pack including the Governing Document and familiarising them with the work of the Board and their roles and responsibilities. Details of governor5, senior management personnel and professional advisors ore shown on the front cover of this report. In occordance with the Articles of A550Clation, the Directors retire by rotalion. The Board of Governors has an open recruitment policy. Orgonlsallon The college benefits from a governing body possessing o comprehensive range of skills and experience which allows delailed oversight of all facets of the business of the college. The Directors discharge their dulles via Governing Body meetings. held al least four times per year ond through o range of Comfniltees which include: Audit Committee. Remuneration Commillee, Oversight of Standords Group. Oversighl of Finance Group. Enterprises Board. Estates Planning Group and Development Working Group. These committees, together with ony other working parties thal may at tirnes be necessary. meet as and when required. The Principal and Chief Execulive Officer is responsible to the Directors for the day-to-day running of Ihe Page 3 College and the execulion of strategy and policies as decided by the Board of Governors. In 2021-22 the breadth of Board expertise available lo the College is described below: rimothy S Richmond OBE TD DL FCA CCMI (Honl DBA - Choir of Governots Tim joined the Board of Governors in 2013. He is a Chartered Accountant. He is a self-employed consultant in strategic business direction and manogemenl. He is the Non-Execulive Chairman of Futures Advice. Skills and Employment Limited. He has wide non-executive director experience in the private sector and extensive public and voluntory sector experience in non-execvtive roles including higher education, competition. defence, housing and care services, youth services and health. A post High Sheriff of Notlinghamshire120021, he was appointed Vice Lord Lieutenant in 2008. Dawn Green Bsc [HonsJ PhD CertEd PGDip FSET- Vice Chair, Chair of Ihe Oversight of Standards Group ond leod Governor for Safeguarding Dawn joined the Boord in 2015. She was previously Principal & CEO at Lcndmarks College and Vice Principal at Portland College. She is now the Korten Network Monager and clso provides consultancy services in whole College/School improvement and behaviour support. Dawn is also Chaii of the Oversight of Standards Group and Lead Governor for Sofeguording. Slephen Jockson - FCMA GCMA FinstD Chair of A udit Commilfee stephen joined the Board in 2019. He is a commercially focused Execulive with global experience and Chairs the Audit Committee. He hos 30 years board level experience in Finance, IT and Commercial Development ond more recently Nottingham Trent University. He is the Vice Chair of Noltinghamshire Healthcare Trust and a member of other educolion and sport charities. David Sneoth MA{CantabJ TD DL - Chair of Remuneration Commif*ee David joined the Board in 2018. He is a recently retired senior employment tribunal judge. He ha5 extensive Reseroe Army experience at the rank of Colonel. A past High Sheriff of Noltinghamshire 120171 and a current Deputy Lieutenant. Thalej Vasishta LLB[Hons) - Chair of Staff Council & Non-Executive Director of Steps fo Employment Limiled - retired by rolalion 261h Aprll 2022 Tholej joined the Board in 2013. As a solicitor and CEO of Parogon Law Thalej works primarily with UK companies wishing to employ skilled foreign nationals and overseas companies and individuals seeking fo invest in or trade with the UK. He has previously been a board member of The Racial Equality Council los it was known thenl, The Gallerie5 of Justice Museum. and Young Enterprise (Eost Midlands). He is currently a founding and board member of the British Indion Business Forum. Shaun Walsh BA(HonsJ FCA - Chair of Oveftsight of Finonce Group - reslgned 26th Apill 2022 Shaun joined the Board in 2015. He is o former PWC Chcsrtered Accountant. As Managing Partner of Business Growth Services, he helps business owners in a Consultanl CFO capacity with his team lo turnaround, raise finance and grow Iheir businesses. Shaun is also the co-owner and CFO of a private equity group. the IBG Group, doing M&A in the construction and building services sector. Peter Emerson DL- Chair of Estates Plonning Group Peterjoined the Board in 2017. Peter retired as Commerciol Director of Severfield PLC ond Chief Operating Officer of Walson Sleel in 2013. He now works as a consullont in the construction industry and for Loing O'Rourke Limited. Nick Aspley LLBIHons) - Leod Governor for the Prevenl Duty- resigned 261h April 2022 Page 4 Nickjoined the Board of Governors in January 2015. He is a solicitor and partner in a leading local mulli office low firm. He has worked in Ihe local oreo for nearly 30 years and specialises in Family Law. He is a past member of the Law Society's Family Law Commitlee. HaNinder Alwal- Chair of Portland College Enlerprises knmited - relired by rototlon. 79Jh July 2022 Harvinderjoined the Board in 2015. She was formerly Ihe Managing Director of bksb Limited, a West Nottinghamshire College owned business which ho5 become the most successful online skills assessment and development company for functional sk1llslGCS￿ in the UK. Professoi Dean Fathers DL- Lead governor for corporate gcvernance Dean joined the Board in 2017 when he was also Chair of ULHT. He was formerly Chair of Nottinghamshire Healthcare NHS Foundation Trust. on Ihe Boards of both NHS Provider5 and the Greater Lincolnshire Local Enterprise Partnership and a150 0 Non-Execulive Director with the Parliamentary and Health SeNices Ombudsmon. He has also recently been appointed as Chair of the National Centre for Orgonisotional Resilience at the Lincoln International Business School (having formedy been a Professor in the Praclice of Heallhcare Managemenl at Cass Business School) and is concurrenlly also a Visiting Professor in The Centre for Governance. Leodership and Global Responsibility ot Leeds Business School. Amanda Farr DL Msc foxonl Amondo joined the Board in 2018. She ha5 worked in NHS rehabililotion and mentol heolth service5 for mos* of her career, latterly leading county primary care mental health service5. She has been a visiting lecturer at Nottingham and Oxford Universities. She is co-owner of Sweeney and Farr A550ClOtes offering mental heallh treatments and organi5ational well-being. Amanda is the Chair of Nottingham Playhouse Board and has extensive experience in the voluntary sector in the city and county of Nottinghamshire and is a former High Sheriff and current Deputy Lieutenant of the county. Saroh Egley RGN BAIHonsJ MA Soroh joined the Board in 2018. She is Assistanl Director Quolily Improvement, Innovation and Assurance for Derbyshire Community Health Services NHS Trust. Mark Brlggs Mark joined the Board in 2019 and has extensive experience in the public and cultural sectors, has director level experience in business and transformation. Along with this, Mark is a former Paralympian with insight into sport, health and well-beir)g. Joanne 8uMer Joanne joined the Board in 2021. She is an oulism consultant working in education, workplaces, and other youth and adult organisations Ihrough her company SEND Support. Joe 15 the co- author of Is That Clear? Effective Communicotion in a neuro-diverse world. She was previously the Head teacher of an autism specialist school, and now offers speciolist leaching advice for Nottinghamshire County Council. Counclllor Sarnanlha Deakin - co-opted membe Samantha joined the Board in 2021 as Nottinghamshire County Council's representative. She is the County Councillor for the Word where Portland College is locoted and also a Cabinet Member for Ashfield District Council. Whilst the Charity benefits from a very strong and pro-active Board, the Govemors have been diligent in ouditing the skill sel of existing members, developing a formal succession plan based on anticipated relirement dotes and reviewing Ihe stralegic direction of the Charity to ensure that we retoin Ihat strength and can provide effeclive governance of the wide and increasing range of activities. Page 5 All new proposed Governor Appointments follow a full recruitment process. including cjpplicalion and inteTview with College Principal, Chair and Governor Panel ensuring commilment, skills and discovering any potential conflict of interesl. This is Ihen followed by o structured induction programme with the Senior Management team and ongoing troining including safeguarding. Llablllty Insurance During the year the College purchased Executive, Professional and Fidelity Liability Insurance. which covered the Directors and Officers of the College, at a cost of £9.20212021- £1.1501. In oll cases the insurance indemnifies Ihe College against losses incurred from wrongful acts that result in clgirns by third parties. In addition. the individual Directors or Officers are covered under the Executive Liobilily insurance policy against personol loss, os o resull of claims mode upon them for actions taken whilst acting in their capacity as Directors or Officer5 of the College. Employment Pollcles It is the College's policy to have effective communication and consultation wilh its staff. We hove a volunlory recognilion agreement with the Trade Union (Unison) for all stoff. Under the terms of this agreement, and our Staff Council Constitution. we consult on a variety of issues affecting terms and conditions of employment, which are regulady discussed. a* least three times per annum at staff Council. We also communicate via performance management tools such as individual performance review5 and supepdisions, Leadership forum, team briefings, staff training days, frequent news bullelins and the Senior Management l&am's core message to all stoff members. The College is fully commilted to Equolity, Diversity and Inclusion IEDII and publishes its gender pay gap onnvally. Portland College is on equal opportunities employer and is accredited as a Disability Confident and Mindful Employer, along with being a member of Ihe National Autistic Society. The College employed an average of 326 full-time equivoler)t people during the year. compared with 343 in 2020-21. Senlor team remvneratlon statement This statemer)t is published by the Board of Governors of Portland College for the financial year 2021-22, informed by the Association of Colleges, Senior P051holder Remuneration Code. Senlof Post holder$ wllhln the remlt of Remunerallon Commlttee Principal & Chief Executive Officer Mark Dole Depuly Principal Quality & Further Education Angela Newton-soanes Assistont Principal Corporate Services Lisa Kenwright Assistant Principal Core & Designated Safeguarding Lead Ike Onwukwe Assistant Principal Development Edward Johnslone Assistant Principal Schools Shaun Pollard Pollcy on the iemuneratlon of senlor post holders The Remunerotion Committee Seeks to recruit, retain and reward the best possible stoff to deliver the College's strategic objectives and effectively lead operations. The Committee uses external benchmark informotion, notably the Association of Colleges Senior Pay Survey Report, and local labour market information lo agree appropriate levels. All role5 in Ihe College are graded using on established market leoder system of job evaluation, Croner RewardTM The objective is to implement equal pay for work of equal value. The Board of Governors sets an Annual Cost of Living rise on I 51 April each year and Remuneralion Committee takes account of the annuol pay oward when determining whelher or not to apply a cost of living increase to senior post holders. Page 6 The College does not have a performance related pay scheme. The College does have an exceptional performance bonus procedure. which could be applied to a senior post holder oll the recommendation of her or his line manager. Any recommendotion would be Subject to approval by the Remuneration Committee. Exceptional performance bonuses are non- consolidated and non-pensionable. The College offers two pension schemes lo employees.- Teachers, Pension Scheme for eligible employees ond a defined contribution scheme availoble to any employee. Remuneration Committee approved a cost of living rise of 3% for senior posl- holders from i >1 April 2022. Cost of living rises for other slaff varied belween I l % and 3% depending on their poy grade. Pollcy on Income derlved from external actlvItles staff are supported to undertoke externol work in certain circumstances. e.g. 5etvice in the ReseNe Armed Forces. acting as an Ofsled or CQC Inspector or CQC Expert, consultancy projects thal would develop the skills of the slaff member or enhonce their knowledge and understanding in relolion to their substantive role. Normally external work should not exceed l O working days per annum. Special leave will be granted in approved circumstances. The slaff member may retain any earnings from up lo 10 days external work per annum. In 2021-22 the Deputy Principal retoined externol earnings from 10 days work os an Of51ed Inspector. Pay mulllple of the Prlnclpal & Chlef Executlve offlcer In relaHon lo the lowest paid Ivll-tlme equlvolent solary al Ihe College Dole Pay Multiple of the CEO/Princi 5.41 5.60 in 2021 Lowest full-time equivalent sala £18,525 31slAu ust 2022 Any other relevant matters None. Objectlves and ocllvllles Portland Charity operates a vibrant. notional college for people wilh a wide ronge of disobilities. 11 is one of the foremost Colleges of its type in Ihe United Kingdom. providing good learning opportunities forwell over 450 learners. resident5 and citizens aged from 16 upwords. The College's principal objectives. set out in Article 5 of ils Articles of Association, are For the public benefit to advance the education of and promote the relief of persons with disabilities by any and every means The vision statement of the Charity is thal all people with disabilities will have a lifetime of opportunity. Our mission is to deliver excellent progrommes lo inspire and empower people with disabilities to live more independent and fulfilling lives. The Chority will achieve this ambition by concentrating on ils three strategic goals.. An increased number of beneficiaries will be able to access a wider, more diversified service offer and will achieve improved health and/or fitness Ihrough participation. Page 7 An increased number of beneficiaries will be able to acces5 a more diversified service offer and will achieve their core goals to lead a more independent life. An increased number of people benefitting from employability programmes, achieving and sustaining work Iboth waged and voluntary) or being enobled to access other provision. The College focu5e5 on supporting student achievement and progression, collaborating and co~ operating with others. In particular the College has striven to produce clear evidence thal the quality of the provision mode for its students demonstrates the it's the irllpacf of these strategic themes. The Directors confirm that during Iheir consideration of the college-wide philosophy, due regard of Charity Commission guidance on public benefit has been token accounl of ond acted upon, where nece5SOry. The moin aclivilies undertaken by the College are student teaching. leoming and assessment corried oul by the Further Educalion team supported by theropy teams and Residential Learning. In adult social care we provide residential and doy service5 including short breaks/respite. The other activilies in line with our Articles of Association objectives include an employmenl support programme. Recovery College and the fully inclusive Woodland Adventure Zone. In 2021-22 there were a number of commercial activitie5 including Portland Print and hospitality functions. Polly Teach Ltd was eslablished in 2014 and joined the Portlond Group in September 2020, providing high-quality individuol and group tuition for young people who are disengaged from mainstream education. Combining sociol work. with teaching practice and youth work, Polly Teoch provides bespoke learning programmes to young people with a range of emotional. social. ond behavioural difficulties thal make it difficult for them to attend school. Polly Teach is an Ofsted registered school with full time on roll pupils as well as part lime pupils referred by local oulhorities or through subcontract from schools providing core educational progrommes (Maths. English and Science) and vocational programmes for pupils ot Key Slages 2, 3 ond 4. Volunteers Portlond values Ihe significant contributions from approximotely 45 volunteers who support in a variely of roles. including learning and care svpport. cotering, estates mointenonce, administration and minibus driving. The Volunteer and CSR Coordinotof a150 supports local businesses to meet their Corporate Social Responsibility objectives by promoting and facilitating charitable activilies. Page 8 strateglc Report Achlevements and performance Chorftoble Aclivilies The principal aclivity of Portland College is to provide the appropriate level of learning & teaching and care support for people with disabilities. Learners and citizens are funded principally by Local Authorities and the Educotion and Skills Funding Agency IESFAI who cover the direct and support costs of the placemenl. The college fundroises to cover the cost of new focilities and equipment to enhance the experience or)d learning of leorners and cilizen5. Need, rather than ability to poy. is the key delerminant of whelher prospective learners access our learning and teaching programmes. The Directors are therefore fully satisfied Ihot our octivities meet the legal public benefit requirement. Funding The primary sources of funding for Portlond College ore student fee5 and residential care fees. student education and residenlial fees are funded vio the ESFA and local authorities whilst residential and day service fees were received from adult social care and health aulhorities. Leorning and teaching During 2021-22 funded learner numbers 5tabilised as around 196 and success rates for these learners on accredited quolifications continued to show thal good progress is made in line with goals and ospiralions. The College was rated as 'good' by Ofsted in all aspect5 of regulated educational provision in November 2017. We are confidenl that the curriculum review and offer hos further developed. including the new conslruction trodes orea and the introduction of heallh and social care. Our Be Heallhy Active and Courageous project underpins all aspecls of the FE offer and we continue to see the positive impact of this on our learners, mental and physical heolth. Our FE intent and implementation align well with Ihe r)ew Educalion Inspection Fromework. Learner target achievemenl rale improved in RARPA 98%189% in 20211 and mcths & English 96% 184% in 20211. During 2021-22 there were significantly improved oulcomes and achievements in independent travel troining. The number of learners benefiting from a dedicated assislive technology assessment increased to 44118 in 20211 with new teaching facilities including a smart home teaching facility enabled thank5 to o significont charitable gift from Ihe lan Karten Trust. The quality and impact of internal work experience opportunities was also sub5tontially improved. We mode more progress towards our aspiration lo model a lotal communication environment. Our Information, Advice and Guidance Team retained the Matrix standord accreditalion for a furlher 3 year period. Safeguarding arrangements are a strenglh of the College and we have implemented the government 'prevent' agenda effectively. Leoiners feel safe ond staff are skilled in sUPPOrting learners who find transition into the college environmenl a challer)ge. In 2022 we strengthened the focus on developing learners, and staff knowledge of the signs of possible sexual expSoita*ion ond how to respond lo it. Care Citizen5 access our care provision in a range of woys through the Day Service, Residential Learning, Short Breaks or Independent Living programme. The Day Service provision is classed as non-regulated, whilst the others are as all reguloled by the Care Quality Commission. All care seNices ore widely considered to be caring and person-centred wilh demonstrable outcomes. We hove been able to build on the excellenl reputalion of the College, by improving and widening the impoct of our offer lo learners and citizens Ilhe preferred term, rather Ihan resident or service user). Regulated service5 ore inspected by the Care Quolily Commission and Portland Freedorn was rated Good at the most recent inspection Imay 20181. Page 9 In the Doy Service5 our morket position a5 a qualily provider hos conlinued to strengthen and demand for places continued to be exceptionally high. We could nol meet all demands for places in our cumpus-bosed provision so it was necessary lo develop the ser**£'000**
**£'000**
**£'000**
**1,697**
**1,588**
**Operating Surplus before Exceptional Items and Depreciation**
**2022**
**2021**|**£'000**
**£'000**
**£'000**
**£'000**
**1,697**
**1,588**
**Operating Surplus before Exceptional Items and Depreciation**
**2022**
**2021**|**£'000**
**£'000**
**£'000**
**£'000**
**1,697**
**1,588**
**Operating Surplus before Exceptional Items and Depreciation**
**2022**
**2021**| |---|---|---| |Less: Extraordinary Expenditure
Deficit Recoveryfor DefinedBenefit PensionScheme
(219)
**Surplus before Non-Cash Items**|Extraordinary Expenditure
Deficit Recoveryfor DefinedBenefit PensionScheme
(219)|(215)| |||(219)
(215)| |||**1,478**
**1,373**| |Depreciation
(951)
Amortisation
(61)
FRS102 - PensionChargeAgainstOperating Surplus
145
**Net (Expenditure) / Income**
**Before Other Recognised Gains and Losses**|Depreciation
(951)|(806)| ||Amortisation
(61)|(48)| ||FRS102 - PensionChargeAgainstOperating Surplus
145|134| |||(867)
(720)| |||**611**
**653**| Page 21 ## **PORTLAND COLLEGE** ## **CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2022** ## **Company Registration Number 00408340** |**ORTLAND COLLEGE**
**ONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2022**
**ompany Registration Number 00408340**|||| |---|---|---|---| |||**31 AUGUST 2022**|**31 AUGUST 2021**| ||Note|**£'000**|**£'000**| |**Fixed Assets**|||| |Intangible Assets|12(a)|438|434| |Tangible Assets|12(b)|9,543|9,929| |**Total Fixed Assets**||**9,981**|**10,363**| |**Current Assets**|||| |Stocks|14|25|18| |Debtors|15|2,795|549| |Investments|16|1,500|2,200| |Cash at Bank on Deposit||1,287|1,952| |Cash at Bank and in Hand||209|290| |||**5,816**|**5,009**| |Creditors:-Amounts Falling Due Within One Year|17|(2,365)|(2,406)| |**Net Current Assets**||**3,451**|**2,603**| |**Net Assets Excluding Pension Liability**||**13,432**|**12,966**| |Defined Benefit Pension Scheme Liability|30|-|(284)| |**Net Assets Including Pension Liability**|20|**13,432**|**12,682**| |**The Funds of the Group**|||| |Restricted Income Funds|22(b)|197|140| |Unrestricted Income Funds|||| |General Group Funds|22(a)|11,655|11,726| |Designated Funds|22(a)|1,580|1,100| |**Unrestricted Income Funds Excluding Pension Liability**||**13,235**|**12,826**| |Pension Reserve|30|-|(284)| |**Total Unrestricted Funds**||**13,235**|**12,542**| |**Total Group Funds**|20|**13,432**|**12,682**| The notes on pages 25 to 45 form part of these Financial Statements. These accounts were approved and authorised for issue by The Board of Directors and signed on its behalf by: T S Richmond Director Date: 16 May 2023 Page 22 ## **PORTLAND COLLEGE** ## **PARENT CHARITABLE COMPANY BALANCE SHEET AS AT 31 AUGUST 2022 Company Registration Number 00408340** |||**31 AUGUST 2022**|**31 AUGUST 2021**| |---|---|---|---| ||Note|**£'000**|**£'000**| |**Fixed Assets**|||| |Tangible Assets|12(c)|9,511|9,910| |Investments-Subsidiary and Associated Undertaking|12(d)|450|450| |**Total Fixed Assets**||**9,961**|**10,360**| |**Current Assets**|||| |Stocks|14|16|10| |Debtors|15|2,422|563| |Investments|16|1,500|2,200| |Cash at Bank on Deposit||1,288|1,952| |Cash at Bank and in Hand||18|4| |||**5,244**|**4,729**| |Creditors:-Amounts Falling Due Within One Year|17|(1,942)|(2,024)| |**Net Current Assets**||**3,302**|**2,705**| |**Net Assets Excluding Pension Liability**||**13,263**|**13,065**| |Defined Benefit Pension Scheme Liability|30|-|(284)| |**Net Assets Including Pension Liability**|21|**13,263**|**12,781**| |**The Funds of the Charity**|||| |**Restricted Income Funds**|23(b)|**197**|**140**| |General College Fund|23(a)|11,486|11,825| |Designated Funds|23(a)|1,580|1,100| |**Unrestricted Income Funds Excluding Pension Liability**||**13,066**|**12,925**| |Pension Reserve|30|-|(284)| |**Total Unrestricted Funds**||**13,066**|**12,641**| |**Total Charity Funds**|21|**13,263**|**12,781**| The notes on pages 25 to 45 form part of these Financial Statements. These accounts were approved and authorised for issue by The Board of Directors and signed on its behalf by: T S Richmond Director Date: 16 May 2023 Page 23 ## **PORTLAND COLLEGE CONSOLIDATED** ## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022** |||**2022**|**2021**| |---|---|---|---| ||Note|**£'000**|**£'000**| |**Net Cash Provided By Operating Activities**|28|**(839)**|**2,336**| |**Cash Flow From Investing Activities**|||| |Purchase of Property, Plant and Equipment|12(b)|(577)|(1,962)| |Purchase of Investments|12(d)|-|-| |Purchase of Subsidiary net of cash acquired|12(a)|(65)|(164)| |Proceeds From the Sale of Property, Plant and Equipment|12(b)|22|-| |Proceeds From the Sale of Investments|12(b)|-|274| |Investment and Other Income|5|13|36| |**Net Cash Used in Investing Activities**||**(607)**|**(1,816)**| |**Change in Cash and Cash Equivalents in the Reporting Period**||**(1,446)**|**520**| |**Cash and Cash Equivalents at 1 September 2021**||**4,442**|**3,922**| |**Cash and Cash Equivalents at 31 August 2022**||**2,996**|**4,442**| |**Cash and Cash Equivalents Consists of:**|||| |Cash in Hand, at Bank||1,496|2,242| |Current Asset Investments|16|1,500|2,200| |**Cash and Cash Equivalents at 31 August 2022**||**2,996**|**4,442**| The notes on pages 25 to 45 form part of these financial statements. Page 24 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. ACCOUNTING POLICIES** ## **(a) General information and basis of preparation** The group financial statements have been prepared on a going concern basis under the historical cost convention, modified to incorporate the inclusion of Fixed Asset Investments at fair value. They are prepared in Sterling which is the functional currency of the College and rounded to the nearest £000. They comply with the requirements of the Companies Act 2006 and the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in 2019. The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the College and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The results of the associated undertaking are excluded from the consolidation on the basis that it is immaterial. Advantage has been taken of exemptions given under section 408 of the Companies Act 2006 not to present a separate SOFA for Portland College. Portland College meets the definition of a public benefit entity under FRS 102; assets and liabilities are initially stated at historical cost or transition value unless otherwise stated in the relevant accounting policy note(s). The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Results of Portland College - Total incoming resources for the year ended 31 August 2022 for Portland College (the charity) amounted to £12,243k (2021 - £11,754k). Net incoming resources for the year produced a surplus of £751k (2021 - £1,176). ## **(b) Going concern** The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. ## **(c) Funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. ## **(d) Income recognition** All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. Page 25 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. ACCOUNTING POLICIES** ## **(d) Income recognition (Continued)** No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report. Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure. Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading activities’. Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. The charity receives government grants in respect of Education and Skills Funding Agency (ESFA). Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income is earned through holding assets for investment purposes such as shares. It includes dividends & interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established. ## **(e) Expenditure recognition** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: - Costs of raising funds includes the costs of commercial trading; - Expenditure on charitable activities includes the cost of educational activities undertaken to further the purposes of the charity and their associated support costs; and - Other expenditure represents those items not falling into the categories above. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. ## **(f) Support costs allocation** Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Page 26 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. ACCOUNTING POLICIES** ## **(f) Support costs allocation (continued)** Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. The analysis of these costs is included in note 6(b), along with the bases on which support costs have been allocated. ## **(g) Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. Donated stocks are fair valued as described in (d) above. ## **(h) Employee benefits** When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Defined Contribution Pension Scheme - The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable in accordance with the rules of the scheme. Defined Benefit Pension Scheme - The charity operates a defined benefit plan for the benefit of its employees. A liability for the charity’s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period as is charged to cost headings on a pro rata basis based on full time equivalent employees. The total cost is recognised in unrestricted funds. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. Details of the College's defined benefit scheme are shown in notes 26 and 28. ## **(i) Investments** Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. Investments in subsidiaries / joint ventures / associates are measured at cost less impairment. Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year. ## **(j) Intangible fixed assets** Goodwill represents the difference between the amounts paid on acquisition of a business combination and the acquirer's interest in the fair value of the share f its identifiable assets and liabilities of the acquire are the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life which is considered to be 10 years. ## **(k) Tangible fixed assets** Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Page 27 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. ACCOUNTING POLICIES** ## **(k) Tangible fixed assets (continued)** |Freehold Buildings||10 to 40 years (note (i))| |---|---|---| |Furniture and Equipment|-Computers|5 years| ||-IT Network|7 years| ||-Production/Technical Equipment|5 years| ||-Other|10 years| |Transport||5 years| Notes (i) Freehold Buildings - Note that freehold buildings also includes the cost of building improvements and refurbishment projects. The life expectancy of each building is assessed individually. (ii) Items costing less than £500 are written off as expenditure in the year of purchase unless part of a larger project spend. ## **(l) Operating Leases** Rentals payable under operating leases are charged to the SoFA on a straight line basis over the period of the lease. ## **(m) Tax** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Portland College Enterprises Limited is liable for Corporation Tax and the liability is based on the result for the year as adjusted for disallowable items. However an agreement is in place whereby all profits are donated to the College. Polly Teach Limited is liable for Corporation Tax and liability is based on the result for the year as adjusted for disallowable items. Page 28 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |||**2022**|**2021**| |---|---|---|---| |||**£'000**|**£'000**| |**2.**|**INCOME FROM CHARITABLE ACTIVITIES**||| ||Educational fees|6,803|6,265| ||Residential fees|4,106|3,967| ||Other fees|304|89| |||**11,213**|**10,321**| All of the above income was distributable to unrestricted funds in both years. ## **3. INCOME FROM OTHER TRADING ACTIVITIES** |**NCOME FROM OTHER TRADING ACTIVITIES**||| |---|---|---| |Portland Print|120|105| |Furlough|-|123| |Polly Teach Limited|1,407|758| |Other Trading Income|602|253| ||**2,129**|**1,239**| All of the above income was distributable to unrestricted funds in both years. ## **4. INCOME FROM DONATIONS, LEGACIES AND GRANTS** |Legacies|6|-| |---|---|---| |Grants|269|129| |Donations|232|685| ||**507**|**814**| Donations in excess of £2k were received from Active Partnership Trust, Ella Kirk Charitable Foundation, Mr Penny (Legacy), Sir John Eastwood Foundation, National Lottery Reaching Communities, The Thomas Farr Charity, The Lady Hind Trust and BBC Children in Need. Of the above income of £507k (2021: £814k), £64k (2021: £4k) was attributable to unrestricted funds and £443k (2021: £810k) was attributable to restricted funds. |||**2022**|**2021**| |---|---|---|---| |||**£'000**|**£'000**| |**5.**|**INVESTMENT INCOME**||| ||Bank Interest|7|12| ||UK Listed Investments|6|24| |||**13**|**36**| All of the above income was distributable to unrestricted funds in both years. Page 29 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES** ||**Activities**|**Support**||**2021**| |---|---|---|---|---| ||**undertaken directly**|**Costs**|**Total**|**Total**| ||**£'000**|**£'000**|**£'000**|**£'000**| |Education|3,646|2,134|5,780|5,792| |Care & Support|3,308|1,760|5,068|5,078| ||**6,953**|**3,894**|**10,847**|**10,870**| £251k (2021 - £942k) of the above costs were attributable to restricted funds. £10,611k (2021 - £8,655k) of the above costs were attributable to unrestricted funds. ## **7. ALLOCATION OF SUPPORT COSTS** |**8. **
**9. **
**10. **|**Care &**
**Activities &**
**2021**
**Basis of**
**Education**
**Support Raising funds**
**Total**
**Total**
**Support cost**
**allocation**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
Learner Support Costs
Area/ usage
981
741
35
1,757
1,646| |---|---| ||Corporate Services
FTEs
721
581
23
1,325
1,690| ||Depreciation
Asset location
432
438
81
951
854| ||**2,134**
**1,760**
**139**
**4,033**
**4,190**| ||**EXPENDITURE ON OTHER ACTIVITIES**
**2022**
**2021**
**£'000**
**£'000**
Other trading
2,170
530| ||Administrative Expenses
139
233| ||**2,309**
**763**| ||**GOVERNANCE COSTS-INCLUDED WITHIN SUPPORT COSTS**
**2022**
**2021**
**£'000**
**£'000**
Auditors remuneration-Current Year
40
32| ||Other Professional Costs
74
95| ||**114**
**127**| ||**NET INCOME / (EXPENDITURE) is stated after charging :-**
**2022**
**2021**
**Auditor's Remuneration**
**£'000**
**£'000**
Auditors Remuneration-Audit
26
32| ||Less: Allowance included within Donations & Gifts
-
(9)| ||**26**
**23**| ||**Auditor's Remuneration - Other Services**
Audit of the Charity's Subsidiary Pursuant to Legislation
10
7| ||Other Services Relating to Taxation
4
3| ||All Other Services
-
-| ||**40**
**33**| ||**Operating Leases**
Operating Leases-all with less than 1 Year remaining
22
6| ||Operating Leases-2-5 Years remaining
-
-| ||**22**
**6**| ||**Rental Agreements**
-
6| The above operating leases and rental agreements all relate to equipment. Page 30 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **11. EMPLOYEE INFORMATION** The average number of people employed and full time equivalents (FTE) during the year was as follows :- |s as follows :-||||| |---|---|---|---|---| ||**2022**|**2022**|**2021**|**2021**| ||**Number**|**FTE**|**Number**|**FTE**| |Education|170|128|189|153| |Care & Support|160|129|144|127| |General Learner Support|49|44|39|34| |Corporate Services|26|21|23|21| |Trading Activities|11|2|30|6| |Fundraising|2|2|2|2| ||**418**|**326**|**427**|**343**| In addition a total of 45 Volunteers (2021: 45) made a contribution to the College in a variety of ways. ## **Employment Costs for the year were:** ||**2022**|**2021**| |---|---|---| ||**£'000**|**£'000**| |Wages and Salaries|8,200|7,724| |Supply Costs|517|279| |Employer's National Insurance Contributions|585|543| |Employer's Pension Contributions|364|379| |Life Assurance Contributions|63|35| ||**9,729**|**8,960**| The College consider its key management personnel to comprise the Senior Management Team (as detailed on page 2). The total employment benefits including employer pension contributions and employer national insurance of the key management personnel were £440k (2021: £460k). For highest paid staff, one employee had employee benefits in the range of £60k to £70k, no employees had employee benefits in the range of £70k to £80k (2021: one) and one employee had benefits in the range of £100k-£110k (2021: one). Redundancy payments made during the year were £45k (2021: nil) due to departmental reorganisations. No Trustees received any remuneration in either 2022 or 2021. ## **The Board of Governors** The Governors and committee members are entitled to reclaim travel expenses incurred in the course of their duties. During the year no (2021 - nil) Governors received reimbursement of expenses totalling £Nil (2021 - £Nil), of which £nil (2021 - £nil) was Gift Aided back to the College. Page 31 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**12. **|**FIXED ASSETS**||||||| |---|---|---|---|---|---|---|---| ||**(a) Intangible Assets**||||||| ||**Group**||||**Goodwill**|**Total**|| ||**Cost or valuation**||||||| ||At 1 September 2021||||482|482|| ||Additions||||65|65|| ||Disposals||||-|-|| ||**At 31 August 2022**||||**547**|**547**|| ||**Amortisation**||||||| ||At 1 September 2021||||48|48|| ||Charge for the year on|owned|assets||61|61|| ||Disposals||||-|-|| ||**At 31 August 2022**||||**109**|**109**|| ||**Net Book Value**||||||| ||At 1 September 2021||||434|434|| ||**At 31 August 2022**||||**438**|**438**|| ||**(b) Tangible Assets**|**Freehold Land &**||**Furniture &**||**Assets Under**|| ||**Group**||**Buildings**|**Equipment**|**Transport**|**Construction**|**Total**| ||**Cost**||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**| ||At 1 September 2021||20,800|3,376|262|-|24,438| ||Additions||418|141|-|18|577| ||Disposals||-|(210)|-|-|(210)| ||Asset Category Adjustment||36|(4)|-|-|32| ||**At 31 August 2022**||**21,254**|**3,303**|**262**|**18**|**24,837**| ||**Depreciation**||||||| ||At 1 September 2021||11,775|2,534|200|-|14,509| ||Charge for Year||756|163|27|-|946| ||Eliminated on Disposal||-|(150)|-|-|(150)| ||Asset Category Adjustment||(1)|(10)|-|-|(11)| ||**At 31 August 2022**||**12,530**|**2,537**|**227**|**-**|**15,294**| ||**Net Book Value**||||||| ||At 1 September 2021||9,025|842|62|-|9,929| ||**At 31 August 2022**||**8,724**|**766**|**35**|**18**|**9,543**| ||**(c) Tangible Assets**|**Freehold Land &**||**Furniture &**||**Assets Under**|| ||**Charity**||**Buildings**|**Equipment**|**Transport**|**Construction**|**Total**| ||**Cost**||**£'000**|**£'000**|**£'000**|**£'000**|**£'000**| ||At 1 September 2021||20,800|3,350|262|-|24,412| ||Additions||394|141|-|18|554| ||Disposals||-|(182)|-|-|(182)| ||Asset Category Adjustment||36|(33)|-|-|3| ||**At 31 August 2022**||**21,230**|**3,276**|**262**|**18**|**24,787**| ||**Depreciation**||||||| ||At 1 September 2021||11,775|2,527|200|-|14,502| ||Charge for Year||756|164|26|-|946| ||Eliminated on Disposal||-|(182)|-|-|(182)| ||Asset Category Adjustment||(1)|11|-|-|10| ||**At 31 August 2022**||**12,530**|**2,520**|**226**|**-**|**15,276**| ||**Net Book Value**||||||| ||At 1 September 2021||9,025|823|62|-|9,910| ||**At 31 August 2022**||**8,700**|**756**|**36**|**18**|**9,511**| Page 32 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **12. FIXED ASSETS** ## **(c) Tangible Assets (Continued) Charity** The National Lottery Charities Board was granted a legal charge over the 'Birches' building (previously known as the Information and Communication Technology Learning Centre) in relation to the £500k grant that it provided to the College. The legal charge is granted for a period of 80 years from the receipt of payment on 26 May 2006. ## **(d) Investments** |**d) Investments**|| |---|---| |**Charity**|**Shares in Group Undertakings**| ||**£**| |Holding in subsidiary (Portland College Enterprises Limited):|| |1,000 Ordinary shares of £1 each [note 13]|1,000| |Share Premium-900 Ordinary shares at £499 each [note 13]|449,100| |**Cost or valuation at 1 September 2021 and 31 August 2022**|**450,100**| ||**Shares in Associated Undertakings**| ||**£**| |Holding in associated undertaking (Steps to Employment Limited):|| |100 Ordinary shares of £1 each [note 33]|2| |**Cost or valuation at 1 September 2021 and 31 August 2022**|**2**| Page 33 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **13. SUBSIDIARY UNDERTAKING** - **(a)** The charity owns the whole of the issued ordinary share capital of Portland College Enterprises Limited, a company registered in England and Wales. The subsidiary is used for non-primary purpose trading activities and commenced trading on 1st September 2009. All activities have been consolidated on a line by line basis in the SOFA. A summary of the results of the subsidiary is shown below: ||**2022**|**2021**| |---|---|---| ||**£'000**|**£'000**| |Turnover|227|29| |Cost of Sales|(182)|(56)| |**Gross Profit**|**45**|**(27)**| |Administrative Expenses|(12)|(15)| |**Operating Profit**|**33**|**(42)**| |**Income from Fixed Asset Investment**|**-**|**95**| |**Profit before and after Tax**|**33**|**53**| |The aggregate of the assets, liabilities and funds was:||| |Assets|950|881| |Liabilities|(414)|(379)| |**Total Capital and Reserves**|**536**|**502**| **(b)** From the 16th September 2020 the charity indirectly controls the whole of Polly Teach Limited, a company registered in England and Wales. As of the 1st July 2022, the charity purchased 100% of the issued share capital of Polly Teach Limited. The subsidiary is used for provision of non mainstream education for young people. All activities have been consolidated on a line by line basis in the SOFA. A summary of the results of the subsidiary is shown below: |**14.**
**15.**
**16.**|**2022**
**2021**
**£'000**
**£'000**
Turnover
1,406
758| |---|---| ||Cost of Sales
(1,062)
(537)| ||**Gross Profit**
**344**
**221**| ||Administrative Expenses
(46)
(229)| ||**Operating Profit**
**298**
**(8)**| ||Interest payable
(1)
**-**| ||**Profit before Tax**
**297**
**(8)**| ||Tax on (loss) / profit
(57)
**-**| ||**Profit after Tax**
**240**
**(8)**| ||The aggregate of the assets, liabilities and funds was:| ||Assets
871
211| ||Liabilities
(596)
(177)| ||**Total Capital and Reserves**
**275**
**34**| ||**STOCKS**
**2022**
**2021**
**2022**
**2021**
**£'000**
**£'000**
**£'000**
**£'000**
Raw Materials and Consumables
25
18
16
10
**Group**
**Charity**| ||Work-in-Progress
**-**
**-**
**-**
**-**| ||**25**
**18**
**16**
**10**| ||**DEBTORS**
Trade Debtors
2,664
486
1,861
448| ||Other Debtors
34
31
7
15| ||Prepayments and accrued income
97
32
89
29| ||Due from Group Companies
-
-
465
71| ||**2,795**
**549**
**2,422**
**563**| ||**INVESTMENTS - CURRENT ASSETS**
Unquoted-Fixed Term UK Bank Deposits
1,500
2,200
1,500
2,200| Of the above deposits, £1,500k (2021 - £2,200k) is due to mature within 6 months of the Balance Sheet date. Page 34 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**17.**
**18.**
**19.**
**20.**|**CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2022**
**2021**
**2022**
**2021**
**£'000**
**£'000**
**£'000**
**£'000**
Trade Creditors
390
244
281
235
**Charity**
**Group**| |---|---| ||Other Taxation and Social Security
361
141
177
115| ||Other Creditors
1,041
1,239
965
948| ||Due from Group Companies Creditors
-
-
32
-| ||Accruals and deferred income
573
782
487
726| ||**2,365**
**2,406**
**1,942**
**2,024**| ||**ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Group
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
Fund Balances at 31 August 2022 are represented by:
Intangible Fixed Assets
438
-
438
Other Creditors include £299k (2021 - £260k) for Student Fees paid in advance.| ||Tangible Fixed Assets
9,543
-
9,543| ||Current Assets
5,619
197
5,816| ||Creditors: Current Liabilities
(2,365)
-
(2,365)| ||Pension Reserve
-
-
-| ||**13,235**
**197**
**13,432**| ||**ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Charity
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
Fund Balances at 31 August 2022 are represented by:
Investments
450
-
450| ||Tangible Fixed Assets
9,511
-
9,511| ||Current Assets
5,047
197
5,244| ||Creditors: Current Liabilities
(1,942)
-
(1,942)| ||Pension Reserve
-
-
-| ||**13,066**
**197**
**13,263**| ||**COLLEGE FUND AND RESERVES**
Group
**2022**
**2021**
**£'000**
**£'000**
**Unrestricted Funds [note 22]**
11,655
11,726
General College Funds - excluding Designated Funds and Pension
Liability| ||Designated Funds [note 22]
1,580
1,100| ||**General College Funds- excluding Pension Liability**
**13,235**
**12,826**| ||Pension Reserve [note 28]
-
(284)| ||**General College Funds- including Pension Liability**
**13,235**
**12,542**| ||Restricted Funds [note 22]
197
140| ||**Total Funds and Reserves**
**13,432**
**12,682**| Page 35 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**21.**|**COLLEGE FUND AND RESERVES**
Charity
**2022**
**2021**
**£'000**
**£'000**
**Unrestricted Funds [note 22]**
11,486
11,825
General College Funds-excluding Designated Funds and Pension| |---|---| ||Designated Funds [note 22]
1,580
1,100| ||**General College Funds- excluding Pension Liability**
**13,066**
**12,925**| ||Pension Reserve [note 28]
-
(284)| ||**General College Funds- including Pension Liability**
**13,066**
**12,641**| ||Restricted Funds [note 22]
197
140| ||**Total Funds and Reserves**
**13,263**
**12,781**| Page 36 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**22.**
(a)
(b)|**FUND RECONCILIATION**
**Group**
**Balance**
**Balance**
**1st September**
**Incoming Resources**
**Gains / 31st August**
**2021**
**Resources Expended**
**Transfers**
**(Losses)**
**2022**
Note
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**Unrestricted Funds**
Unrestricted
11,726
13,419
(13,235)
(255)
-
11,655| |---|---| ||Designated:| ||Capital Commitments| ||(other than from restricted funds)| ||Defined Benefit Pension Scheme Liability
600
-
-
(20)
-
580| ||Campus Development Plan
500
-
-
500
-
1,000| ||**Total Unrestricted Funds**
**12,826**
**13,419**
**(13,235)**
**225**
**-**
**13,235**| ||**Restricted Funds**
**Specific Grants and Donations:**
ESFA School Condition Allocation
i.
-
152
-
(152)
-
-| ||Ian Karten Trust
ii.
14
-
-
-
-
14| ||Minibus
iii.
2
39
-
-
-
41| ||Newstart Hall Project
iv.
29
44
-
(73)
-
-| ||Recovery College
v.
-
135
(135)
-
-
-| ||Woodlands Project
vi.
-
17
-
-
-
17| ||Ian Karten Trust
vii.
-
19
(19)
-
-
-| ||Trade Centre
viii.
-
14
-
-
-
14| ||Farm
ix.
-
1
-
-
-
1| ||Sensory Gardens
x.
-
15
-
-
-
15| ||**Other Donations:**| ||Equipment-Various
xi.
-
7
(7)
-
-
-| ||Other Donations
-
-
-
-
-
-| ||**Scholarship Fund**
xii.
95
-
-
-
-
95| ||**Total Restricted Funds**
**140**
**443**
**(161)**
(225)
**-**
**197**| Designated funds have been held in relation to defined benefit pension liability of £580k recognising the liability of the scheme based on alternative valuation method and campus development plan of £1,000k based on significant programme of infrastructure modernisation. Restricted Fund balances are only shown where there are either a) specific clauses within the basis of agreement on which the donation or grant was received; or b) where a building project is under construction, in this case specific grants/donations will not be transferred to unrestricted funds until the building is completed. In all other cases it is taken that the purchase of the specified item meets any restriction placed on the funds by the donor. - i. ESFA School Condition Allocation - the grant was received to support upkeep of College buildings and equipment. - ii. Ian Karten Trust - the grant was provided to cover the implementation of mobile learning projects. There is a 5 year reducing balance restriction on this grant. - iii. Minibus - Purchase of new College minibus for use by citizens and learners. - iv. Newstart Hall Project - multi-purpose area for a café; sports activities; theatre and creative arts. - v. Recovery College - Ongoing resources to assist people getting back into employment. - vi. Woodlands Project - Fully accessible forest adventure zone for learners and the larger community. - vii. Ian Karten Trust - Smart home building for use by citizens and learners. - viii. Trade Centre - Educational area providing practical vocational skills. - ix. Farm - Redevelopment of Farm area accessible by staff, learners and citizens. - x. Sensory Gardens - External area in Education facility providing calm area and general horticulture skills. - xii. Scholarship Fund - cash funds are held for the specific purpose of supporting students. Page 37 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**23.**
(a)
(b)|**FUND RECONCILIATION**
**Charity**
**Balance**
**Balance**
**1st September**
**Incoming**
**Resources**
**Gains / 31st August**
**2021**
**Resources**
**Expended**
**Transfers**
**(Losses)**
**2022**
Note
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**Unrestricted Funds**
Unrestricted
11,825
11,784
(11,868)
(255)
-
11,486| |---|---| ||Designated:| ||Capital Commitments| ||(other than from restricted funds)| ||Defined Benefit Pension Scheme Liability
600
-
-
(20)
-
580| ||Campus Development Plan
500
-
-
500
-
1,000| ||**Total Unrestricted Funds**
**12,925**
**11,784**
**(11,868)**
**225**
**-**
**13,066**| ||**Restricted Funds**
**Specific Grants and Donations:**
ESFA School Condition Allocation
i.
-
152
-
(152)
-
-| ||Ian Karten Trust
ii.
14
-
-
-
-
14| ||Minibus
iii.
2
39
-
-
-
41| ||Newstart Hall Project
iv.
29
44
-
(73)
-
-| ||Recovery College
v.
-
135
(135)
-
-
-| ||Woodlands Project
vi.
-
17
-
-
-
17| ||Ian Karten Trust
vii.
-
19
(19)
-
-
-| ||Trade Centre
viii.
-
14
-
-
-
14| ||Farm
ix.
-
1
-
-
-
1| ||Sensory Gardens
x.
-
15
-
-
-
15| ||**Other Donations:**| ||Equipment-Various
xi.
-
7
(7)
-
-
-| ||Other Donations
-
-
-
-
-
-| ||**Scholarship Fund**
xii.
95
-
-
-
-
95| ||**Total Restricted Funds**
**140**
**443**
**(161)**
**(225)**
**-**
**197**| Designated funds have been held in relation to defined benefit pension liability of £580k recognising the liability of the scheme based on alternative valuation method and campus development plan of £1,000k based on significant programme of infrastructure modernisation. Restricted Fund balances are only shown where there are either a) specific clauses within the basis of agreement on which the donation or grant was received; or b) where a building project is under construction, in this case specific grants/donations will not be transferred to unrestricted funds until the building is completed. In all other cases it is taken that the purchase of the specified item meets any restriction placed on the funds by the donor. - i. ESFA School Condition Allocation - the grant was received to support upkeep of College buildings and equipment. - ii. Ian Karten Trust - the grant was provided to cover the implementation of mobile learning projects. There is a 5 year reducing balance restriction on this grant. - iii. Minibus - Purchase of new College minibus for use by citizens and learners. - iv. Newstart Hall Project - multi-purpose area for a café; sports activities; theatre and creative arts. - v. Recovery College - Ongoing resources to assist people getting back into employment. - vi. Woodlands Project - Fully accessible forest adventure zone for learners and the larger community. - vii. Ian Karten Trust - Smart home building for use by citizens and learners. - viii. Trade Centre - Educational area providing practical vocational skills. - ix. Farm - Redevelopment of Farm area accessible by staff, learners and citizens. - x. Sensory Gardens - External area in Education facility providing calm area and general horticulture skills. - xii. Scholarship Fund - cash funds are held for the specific purpose of supporting students. Page 38 **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**24.**
(a)
(b)|**FUND RECONCILIATION**
**Group (Prior Year)**
**Balance**
**Balance**
**1st September**
**Incoming Resources**
**Gains / 31st August**
**2020**
**Resources Expended**
**Transfers**
**(Losses)**
**2021**
Note
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**Unrestricted Funds**
Unrestricted
10,884
11,600
(10,815)
117
(60)
11,726| |---|---| ||Designated:| ||Capital commitments| ||(other than from restricted funds)| ||Future Projects:| ||600
-
-
-
-
600
Defined Benefit Pension Scheme
Liability| ||Campus Development Plan
500
-
-
-
-
500| ||**Total Unrestricted Funds**
**11,984**
**11,600**
**(10,815)**
**117**
**(60)**
**12,826**| ||**Restricted Funds**
Specific Grants and Donations:
ESFA School Condition Allocatio
i.
-
129
(129)
-
-
-
Ian Karten Trust
ii.
14
-
-
-
-
14
Minibus
iii.
-
2
-
-
-
2
Outram Street
iv.
77
-
(105)
28
-
-
Disability Employment
v.
-
-
(15)
15
-
-
Newstart Hall Project
vi.
126
638
(670)
(65)
-
29
Recovery College
vii.
51
-
(8)
(43)
-
-
Woodlands Project
viii.
-
18
-
(18)
-
-
**Other Donations:**
Legacy-Communications
15
23
(15)
(23)
-
-
Equipment-Various
11
-
-
(11)
-
-
**Scholarship Fund**
ix.
95
-
-
-
-
95
**Total Restricted Funds**
**389**
**810**
**(942)**
**(117)**
**-**
**140**| Restricted Fund balances are only shown where there are either a) specific clauses within the basis of agreement on which the donation or grant was received; or b) where a building project is under construction, in this case specific grants/donations will not be transferred to unrestricted funds until the building is completed. In all other cases it is taken that the purchase of the specified item meets any restriction placed on the funds by the donor. i. ESFA School Condition Allocation - the grant was received to support upkeep of College buildings and equipment ii. Ian Karten Trust - the grant was provided to cover the implementation of mobile learning projects. There is a 5 year reducing balance restriction on this grant. - iv. Outram Street project relates to a legacy of cash and a building to provide employment support and advice in Sutton in Ashfield, this opened October 2018. - v. Disability Employment - income for citizens and learners to asset in work and work placements. vi. Newstart Hall Project - has replaced the original Sports complex, who's aim is to convert our existing Newstart Hall in order to provide a multi-purpose area for a café, sports activities, theatre and creative arts. vii. Recovery College is part of the Outram Street project providing the resources and training to asset people getting back into employment. viii. Woodlands Project to build an activity centre on the land for use of citizens, learners, local schools and business. This will include a climbing wall, zip wire and outdoor activities. - ix. Scholarship Fund - cash funds are held for the specific purpose of supporting students. Page 39 **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** |**25.**
(a)
(b)|**FUND RECONCILIATION**
**Charity (Prior Year)**
**Balance**
**Balance**
**1st September**
**Incoming Resources**
**Gains / 31st August**
**2020**
**Resources Expended**
**Transfers**
**(Losses)**
**2021**
Note
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**Unrestricted Funds**
Unrestricted
10,884
10,944
(10,060)
117
(60)
11,825| |---|---| ||Designated:| ||Capital commitments| ||(other than from restricted funds)| ||Future Projects:| ||600
-
-
-
-
600
Defined Benefit Pension Scheme
Liability| ||Campus Development Plan
500
-
-
-
-
500| ||**Total Unrestricted Funds**
**11,984**
**10,944**
**(10,060)**
**117**
**(60)**
**12,925**| ||**Restricted Funds**
Specific Grants and Donations:
ESFA School Condition Allocatio
i.
-
129
(129)
-
-
-
Ian Karten Trust
ii.
14
-
-
-
-
14
Minibus
iii.
-
2
-
-
-
2
Outram Street
iv.
77
-
(105)
28
-
-
Disability Employment
v.
-
-
(15)
15
-
-
Newstart Hall Project
vi.
126
638
(670)
(65)
-
29
Recovery College
vii.
51
-
(8)
(43)
-
-
Woodlands Project
viii.
-
18
-
(18)
-
-
**Other Donations:**
Legacy-Communications
15
23
(15)
(23)
-
-
Equipment-Various
11
-
-
(11)
-
-
**Scholarship Fund**
ix.
95
-
-
-
-
95
**Total Restricted Funds**
**389**
**810**
**(942)**
**(117)**
**-**
**140**| Restricted Fund balances are only shown where there are either a) specific clauses within the basis of agreement on which the donation or grant was received; or b) where a building project is under construction, in this case specific grants/donations will not be transferred to unrestricted funds until the building is completed. In all other cases it is taken that the purchase of the specified item meets any restriction placed on the funds by the donor. i. ESFA School Condition Allocation - the grant was received to support upkeep of College buildings and equipment ii. Ian Karten Trust - the grant was provided to cover the implementation of mobile learning projects. There is a 5 year reducing balance restriction on this grant. - iv. Outram Street project relates to a legacy of cash and a building to provide employment support and advice in Sutton in Ashfield, this opened October 2018. - v. Disability Employment - income for citizens and learners to asset in work and work placements. - vi. Newstart Hall Project - has replaced the original Sports complex, who's aim is to convert our existing Newstart Hall in order to provide a multi-purpose area for a café, sports activities, theatre and creative arts. vii. Recovery College is part of the Outram Street project providing the resources and training to asset people getting back into employment. viii. Woodlands Project to build an activity centre on the land for use of citizens, learners, local schools and business. This will include a climbing wall, zip wire and outdoor activities. - ix. Scholarship Fund - cash funds are held for the specific purpose of supporting students. Page 40 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **26. CAPITAL COMMITMENTS** **Group & Charity** Capital Expenditure committed to but not provided for in these financial statements: ||**2022**|**2021**| |---|---|---| ||**£'000**|**£'000**| |Goodwin Building Works|37|-| |Network Switch Upgrade|10|-| |Fortimail Upgrade|20|-| |Minibus|78|-| ||**145**|**-**| ## **27. FINANCIAL COMMITMENTS Group & Charity** At 31 August 2022 the Group had total commitments under operating leases expiring as follows: |**28.**|**2022**
**2021**
**Copier Leases**
**£'000**
**£'000**
Expiring : Within One Year
22
6
Equipment| |---|---| ||Within Two to Five Years
-
6| ||Over Five Years
-
-| ||**22**
**12**| ||**GROUP**
**2022**
**2021**
**£'000**
**£'000**
Net Income/(Expenditure)before Actuarial Gains
611
653
**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**| ||Amortisation
61
48| ||Depreciation
951
806| ||Interest Received
(13)
(36)| ||Loss/ (Gains)on Disposal of Fixed Assets
(10)
12| ||Post Employment Benefits Less Payments
(145)
(134)| ||(Increase) / Decrease in Stock
(7)
11| ||(Increase) / Decrease in Debtors
(2,246)
721| ||(Decrease)/ Increase in Creditors
(41)
255| ||**Net Cashprovided by Operating Activities**
**(839)**
**2,336**| Page 41 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **29. PENSION & OTHER POST-RETIREMENT BENEFITS Group & Charity** All pension commitments for the Group are held within the charity. - **(a)** The College closed its Defined Benefit Scheme to new Members with effect from 1st January 1997 and so the use of the projected unit valuation method required by FRS102 means that the current service cost (as a proportion of Defined Benefit Member's earnings) is likely to increase as Members approach retirement. The assets of the Scheme are held separately from those of the College, being invested with Prudential Assurance. In accordance with FRS102, the regular service cost of providing retirement benefits to employees during the period is charged to the statement of financial activities, along with a credit representing the expected return on the assets of the scheme during the period, and a charge representing the expected increase in the liabilities of the scheme during the period. The difference between the market value of assets and the present value of accrued pension liabilities is shown as an asset or liability in the balance sheet. Differences between actual and expected returns on assets during the period are recognised in the Statement of Financial Activities, together with the differences arising from changes in assumptions. The most recent actuarial report which was produced with the effective date of 31 December 2021, showed a deficit valuation of £245k and funding level of 97%. It was agreed between the College and the Trustees of the Scheme to aim to remove the funding shortfall, as it existed at 31 December 2015. Consequently the College is contributing £218k per annum. - **(b)** The College provides auto-enrolment membership of its defined contribution pension scheme to all new and existing employees. This Scheme is currently operated by Aviva (formerly Friends Life). The College will contribute an equal percentage of salary, in accordance with the employee’s chosen option, up to a maximum of 6%. Contributions of £245k were made to this Scheme during the year ended 31 August 2022 (2021 - £290k). As an alternative to its own pension schemes the College contributes to other specific defined benefit schemes for certain tutors and those employed by outside agencies. The cost of those contributions during the year was £81k (2021 - £89k). Liabilities owed to these schemes at year end were £90k. Death-in-Service Benefits are provided for all staff. The cost of the Life Assurance contributions to the College for the year was £63k (2021 - £35k). ## **30. FRS102 VALUATION OF DEFINED BENEFIT PENSION SCHEME Group & Charity** An Actuarial report has been produced as at 31 August 2022 in accordance with FRS102, the details of which are set out below. The Company sponsors the Portland College Pension Scheme, a funded defined benefit pension scheme in the UK. The scheme is set up on a tax relieved basis as a separate trust independent of the Company and is supervised by independent trustees. The trustees are responsible for ensuring that the correct benefits are paid, that the scheme is appropriately funded and that scheme assets are appropriately invested. Active members of the scheme pay contributions at the rate of 8% of salary and the Company pays the balance of the cost as determined by regular actuarial valuations. The Trustees are required to use prudent assumptions to value the liabilities and costs of the scheme whereas the accounting assumptions must be best estimates. The results of the actuarial valuation as at 31 December 2021 have been projected to 31 August 2022 using the assumptions set out below. The figures in the following disclosures were measured using the Projected Unit Method. |Method.||| |---|---|---| ||**2022**|**2021**| ||%|%| |Liability Discount Rate|4.3|1.7| |Inflation|3.5|3.1| |Salary Increases|N/A|N/A| |Increases to Deferred Pensions before Retirement|3.0|2.6| |Increases to Pensions in Payment (5% or RPI if less)|3.4|3.1| |Increases to Pensions in Payment (3.5% or RPI if less)|3.0|2.7| Page 42 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **30. FRS102 VALUATION OF DEFINED BENEFIT PENSION SCHEME (Continued)** The mortality assumptions for the scheme liabilities at 31 August 2021 were based on the S3PMA / S3PFA CMI 2020 projections with long term improvements of 1.25% pre retirement and 1% post retirement, and have continued to be used as at 31 August 2022. ## **Life Expectancies (in years)** ||**31**|**August 2022**|**31 August 2021**|**31 August 2021**| |---|---|---|---|---| ||**Males**|**Females**|**Males**|**Females**| |For an individual aged 65 in 2021|21.9|24.3|21.9|24.3| |At age 65 for an individual aged 5 in 2021|23.2|25.7|23.2|25.7| |The assets in the scheme and the expected return were:||||| ||**Assets and**|**Liabilities at**|**Assets and**|**Liabilities at**| ||**31**|**August 2022**|**31 August 2021**|| |||**£'000**||**£'000**| |Cash Accumulation Policy||6,195||7,444| |Secured Pensions in Payment||1,051||1,271| |**Total Market Value of Assets**||**7,246**||**8,715**| |Present Value of Scheme Liabilities||(6,436)||(8,999)| |Scheme surplus not recognised (note a)||(810)||-| |**Surplus/(deficit) in the Scheme**||**-**||**(284)**| |||**2022**||**2021**| |||**£'000**||**£'000**| |**Actual Return on Scheme Assets**||**(1,281)**||**516**| |**Analysis of the Amount Debited to operating Net Income/Expenditure**||**2022**||**2021**| |||**£'000**||**£'000**| |Administration Expenses||70||67| |Interest Cost||4||14| |Actuarial (Losses)/Gains Arising on the Scheme Liabilities||2,230||7| |Actual return on assets less interest||(1,281)||516| |Scheme surplus not recognised (note a)||(810)||-| |**Actuarial (Loss)/Gain Recognised in ORGL**||**139**||**523**| |**Cumulative Actuarial Loss Recognised in ORGL**||**(1,810)**||**(1,949)**| ## Note a In line with the specific criteria set out in FRS102 regarding the recognition of a surplus in the scheme, as there is no certainty that the College will be able to recover the surplus in the Scheme either through reduced contributions in the future or through refunds from the Scheme, the surplus in the Scheme at 31 August 2022 has been reduced to £Nil. ||**2022**|**2021**| |---|---|---| ||**£'000**|**£'000**| |**Movement in Liabilities During the Year**||| |Scheme liabilities at beginning of year|(8,999)|(9,542)| |Movement in Year:||| |Interest Cost|(150)|(145)| |Benefits Paid|483|681| |Actuarial (Loss)/Gain|2,230|7| |**Scheme Liabilities at End of Year**|**(6,436)**|**(8,999)**| Page 43 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **30. FRS102 VALUATION OF DEFINED BENEFIT PENSION SCHEME (Continued)** ||**2022**|**2021**| |---|---|---| ||**£'000**|**£'000**| |Movement in Assets During the Year:||| |Scheme Assets at Beginning of Year|8,715|8,601| |Movement in Year:||| |Actuarial (Loss)/Gain|(1,281)|516| |Employer Contributions|219|215| |Employee Contributions|-|-| |Benefits Paid|(483)|(681)| |Administration expenses|(70)|(67)| |Interest income|146|131| |**Scheme Assets at End of Year**|**7,246**|**8,715**| |History of Amounts for Current and Previous Accounting Period:|**2022**|**2021**| ||**£'000**|**£'000**| |Scheme Liabilities Amount|(6,436)|(8,999)| |Scheme Assets Amount|7,246|8,715| |Scheme surplus not recognised|(810)|-| |**Surplus / (Deficit) Amount**|**-**|**(284)**| ## **31. LEGAL STATUS OF THE CHARITY** The College is a Company Limited by Guarantee and without share capital incorporated in the United Kingdom. The liability of Members is limited to £10 each in the unlikely event of the Company being ‘wound-up’. ## **32. ULTIMATE CONTROLLING PARTY** The Directors consider that there is no ultimate controlling party. ## **33. RELATED PARTY TRANSACTIONS** The Charity has an 33.3% interest in an associated undertaking, Steps to Employment Limited, a company providing specialist training and rehabilitation for disabled people helping them return to sustainable employment. The company ceased trading during 2016/17 and was dissolved on the 25th October 2022. During the year recharges from Portland College to Portland College Enterprises Limited were £208k (2021: £59k), and sales from Portland College Enterprises Limited to Portland College were £28k (2021: £nil). During the year recharges from Portland College to Polly Teach Limited were £129k (2021 - £71k), and sales from Polly Teach Limited to Portland College were £nil (2021 - £1k). During the year recharges from Portland College Enterprise Limited to Polly Teach Limited were £Nil (2021 - £Nil), and sales from Polly Teach Limited to Portland College Enterprises Limited were £Nil (2021 - £Nil). As at 31 August 2022 Polly Teach Limited owed Portland College £227k and Portland College owed Polly Teach Limited £nil. Portland College Enterprises Limited owed Portland College £336k and Portland College owed Portland College Enterprises Limited £31k. Page 44 ## **PORTLAND COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **34. ACQUISITION OF POLLY TEACH LIMITED** On the 16 September 2020 Portland Enterprises acquired 75% of the share holding in Polly Teach Limited, a private Limited company based in Kirkby in Ashfield, Nottinghamshire providing alternative education to local authorities and schools across Nottinghamshire and Derbyshire. There was a put and call option in place to purchase the remaining 25% of shares in August 2022. The put and call option was exercised at 1st July 2022, and Portland now owns 100% of the shareholding. The initial purchase price was £450,000 of which £350,000 was payable on completion with two further instalments of £50,000 each in September 2021 and August 2022. The College agreed a further £240k in relation to the final 25% share. Page 45