2021-07-31-accounts

COLLEGE WORKING MEN'S COLLEGE CORPORATION A company limited by guarantee and not having a share capital Report and Financial Statements for the year ended 31 July 2021 Company registration number.. Charity registration number. 8894 312803

WORKING MEN'S COLLEGE CORPORATION Contsnts Key Management Personnel and Professional Advisors Members, Report including the Strategic Report Statement of Corporate Governan￿ and Intemal Control Statement of Regulanty, Propriety and Compliance 27 Statement of the Responsibilities of the Govemors of the Corwration 28 Independent Auditorfs Report to the Members of the CofjK>rakn"on of Working Men's College 29 Reporting A¢countanY5 Assuran￿ Report on Regulanty to the Govefflors of the Corporation of Working Men's College and the Secretary of State for Education acting through the Department for Education 33 Slalement of Comprehensive Income 35 Stslement of Changes in Reserves 36 Balance Sheet 37 Cashflows 38 Notes to the Accounts 39

WORKING MEN'S COLLEGE CORPORATION KEY MANAGEMENT PERSONNEL AND PROFESSIONAL ADVISORS for the year ended 31 July 2021 Professional Advisors Financial Statements & Regularfty Audllor: Buzzacott LLP 130 Wood Street London EC2V 6DL Internal Audito Scmtton Bland Fitzroy House Crown Street Ipswch, Suffolk IP13LG Banker5: Investment Managers: BNY Mellon Limited Mellon Financial Centre 160 Queen Victoria Street London EC4V 4L4 Lloyds Bank Education Mid Markets 4" Floor, 25 Gresham Street London EC2V 7HN Loan Finance: Loan Finance". Lloyds Bank Education Mid Markets 4 Floor, 25 Gresham Street London EC2V 7HN Barclays Bank Education Team Level 27, 1 Churchill P12¢e London E14 5HP Key Nlanagement Personnel Key management personnel are defined as members of the College's Execub"ve Management Group. For 2020121 the members were.. Helen Hammond - Principal and CEO, Accounb"ng Officer Maria Rosenthal- Deputy Principal Martin Jones- VI￿ Principal Diana Teesdale - Director of Leaming Lisa Marklew - Director of Leaming Caroline Poole - Director of Leamer Services Claudia Forbes - Head of MIS Julie Paterson - HR Manager Board of Governor5 A full list of Governors is given on page 20 of the finanaal statements. The position of Clerk to the Corporalion vrds held by Bill BaTker {0.5 f.t.e. appointmenll

WORKING MEN'S COLLEGE CORPORATION MEMBERS. REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 Juty 2021 The Board of Governors. who are directors for the PL5rposes of the Companies Act and trustees for the purposes of the Charities Act, hereinafter referred tri as the Corporation, present their annual report and the audited financial statements of the Working Men's College Corporation {"the College" or 'WM College") for the year ended 31 July 2021. NATURE, OBJECTIVES AND STRATEGIES Legal Status The Working Men's College Corporation is a'specialist Designated Institution, (SDI}, now known as an Institute of Adult Leaming IIALI, under the Further and Higher Education Act 1992. It is also a company limited by guarantee not having a share capital and it 15 a registered charity. The College is subject to the legal framewoTk governing the Further Education sector. including the rules set from lime to lime by the Government departments and agencies with responsibility for the sector. DL6ring 2020121 these were the Department for Education IDfEI and the Educats"on and Skills Funding Agency IESFAI together with the Greater London Authority {GLAI who provided funding to the College from 1 August 2019 under devolved funding arrangements. The College is a150 subiect to the requirements of the Companies Act and the Charities Act. The College's financial affairs are govemed by Funding Agreements with the EFSA and the GLA. In addition, the College, as a charitable company limited by guarantee. is governed by the charitable company's memorandum and articles of associats"on. The College also meets the definrtion of a charitable company for UK corporation tax Purposes as set out in Paragraph 1 Schedule 6 of the Finance Act 2010. Accordingly, the College is potentially exempt from taxation in ￿pect of income or capital gains Covered by the relevant legislation. provided that they are applied lo exclustvely chantable purposes. Mlsslon The Corporation keeps the mission statement and strategic objective5 under regular review. The mission statement was updated in 2015116 and reviewed in 2019r20 without further amendment. The current mission statement adopted is.. "To provide dNerse, enriching and enjoyable lifelong leaming including skills for work, in a supportive environment for adults in Camden and the local area.. Strategic Plan College Govemors and managers develot*d a new 3-year strategic plan during 2018119 which was approved by the Corporation in July 2019. The plan covers the period from 2019 to 2022 and the strategic objectives adopted are set out below. Excellence for a51. We will Provide an enriching leaming experience that raises aspirabons, celebrates success and promotes inclusion and diversity. Ensure all leamers are supported and inspired to meet and exceed their individLtal aims and objectives and progre55 towards bng temi goals. Enable learning that leads to improved physical and mental hearth and social and emots.onal well- being as well a5 improved employment prospeGts. Support leamers to become expert learners through teaching and learning that tskes place beyond the classroom and develop5 their digital skills.

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the yearendgd 31 July 2021 Effecb"ve and sustainable. We will Optimise leaming opportunities by deploying the College's physical, human and virtual resources to provide greater efficiency for the College. Provide IT infrastructure and leaming Materials to facilitate and eTrhan￿ both classroom and digital learning eXperien￿S. Develop systems, pmcesse5 and resources to eliminate unnecessary bureaucracy and provide online access to core infomiation on a timely basis. Idenlrfy relevant new funding and commercial income opportunitFes, pursuing those that will support sustainable new activities or expand existing provision. Workin T ether. We will Work in partnership with the GLA and London IALS for the benefft of all adult learners. Take Seaming into the local eommunity to ensure Ihat there are no barriers to access learning opportunities. Develop partnerships w¢th other providers to proV￿e opportunities for leaming that complement or extend WMC studies. Publlc Benefft The College is a registered charity and foltowing the machinery of Govemrnent changes in July 2016, Is regulated by the Secretary of State for Education as Principal Regulator for all Further Education Corporations in England. The Govemors of the Corpora*"on, who are tnjstees of the charity, are disclosed on page 20. In setting and reviewing the College's strategic objectives. the corporab.on has had due regard for the Charity Commission's guidan￿ on public benefit and particulady upon its supplementary guidance on the advan￿Ment of education. The guidanee sets out the requirement that all organisalions wishing to be recognised as charities must demonstrate, explicitly, that their aims are for the public benefit. In delivering its missron, the College provides the followng identifiable public benefits through the advancement of education". H￿h quality leaching and learning- Widening participab'on and tackling social exclusion.. Excellent employment record for students- Strong student support systems. Links with employers in industy and Commer￿.. and Links with Local Enterprise Partnerships. Further inft)rmalion and examples of the delNery of public benefft are covered throughout the remainder of the Members, Report including the Strategic ReporL General Financial Objectives The College's general financial objectives were revised in 2017 and reviewed regularly, bul not changed, since then. The existing objectives approved by Govemors in June 2017 are to maintain." Cash days of not less than 40 nor greater than 65 An adjusted Current rab'o in the range of 2.0'.1- 2_5'.1 Earnings Before Interest Taxation Depreciation and Amorbsation IEBITDA}, using ESFA education specific definition, of be￿een 4% and 6% of income Borrowing as a percentage of non-endowment reseNes of less than 15% Staff costs {excluding restructuring costs) belween 64% and 68.kn of income. Financial heatth of "Good. with a score of at teast 200 poinls

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the year endod 31 July 2021 In 2020121, largely as a consequence ol the impact of coV￿-19, only 3 of the 6 financial objectives were met.. Ob"ectTve Cash days of not less than 40 nor 9￿ater than 65 An adjusted current ratio in the range of 2.0-1 _ 2.5-1 EBITDA, using ESFA educats.on SFecffic definrtion. of between 4% and 6°k of income Borrowing as a '/oage of nonendowment ￿serveS of less than 15% Staff costs (excluding restructuring costs} betsveen 64.kn and 68¥0 of income Financial heatth of'Good' with a score ot at least 200 points 2020121 Met Mel Not Met 0.97 4.1% Met 6.3% Mel 70% Not Mel Requires Improvement Not Mel As explained in more detail in the financial review Section below. the College eXperien￿d a second ye2r of shortfalls in fee income and investment income. due to the national lockdown and economic impact on businesses resulting from the Covid-19 pandemic. Consequenuy, the EBITDA was lower and staff costs were a highef proportion of income than usual. The financial health is a function of achievement of the other objecb.ves so rernained at -requires improvemenf for a second year. Governors and managers have carefully interrogated the informab.on and remain confident that the underlying position and perfomance of the College remains robust and fully expect lo retum lo meeting the objectives once operations return to a more nomial ststus post-pandemic. If the budget for 2021122 is met, the College should retum lo"Good" financial health in summer 2022_ Investment Fund Objectives The College's investment ftjnd financial objecb.ves were revised in February 2014 and are as follows-. To review fvnd management objectives at regular intervals and in response to changing rna￿et conditions. To achieve a balance between income and capital growth. To achieve a totsl relum of°inflation plus 4%". To seek to invest the funds in the following proportions-. All in Newton's Global Growth and Income Fund ft)r Charrties IGGIFCI. At 31 July 2021, the proporbons of investrnents by type were as follows.. 1 OOOA in the Newton Global Growth and Income Fund for Charities. At 1 August 2020 the investment portfolio was valued at £4.862 million. The investment income received dLJring the year was £114,000 wh￿h eqLFates lo 2.30￿ ol the opening valuation. The portfolio value increased to £5.799 million by 31 July 2021 representing an annual growth of 19 3,/0 and recovering the significant decline of 2019120. These perfomiances exceed the total return objective sel and reflect the global market movements fo1lowng.8￿xrf and during the coronavirus pandemic. Aceommodatlon Strategy In November 2020 the College achieved practical completion on the major capital project lo replace the entire College heating system and to install a mixed mode ventilation system in the Victorian, grade 11 listed building in Crowndale Road. The heating system uses efficient modern boilers to reduce the College's use of fossil fuels. whilst the ventilabon scheme design uts'lises features of the existing structure of the Victorian building and is sympathetic to its grade 11 listed features and also adopts an environmentally sustainable approach. The system utilises reflective window blinds and secondary double glazing lo reduce initial solar gain, the thermal mass of the walls and night cooling to help keep the room air temperatures from rising and natural air circulats.on routes to avoid the need for any

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT forthe year ended 31 July 2021 mechanical cooling of air. This has been particularly beneficial in enabling good ventilation to be maintsined in line with guidance on mib"gating the spread of Covid-19_ The College carried out a major refurbishment of levels of the Crowndale Road sile resulting in a significant improvement to the teaching and learning environfflenL The works were funded in part by Govemment capitsl grant. PERFORMANCE INDICATORS Otsted Inspection Working Men's College's most recent inspection took place in November 2018 and the Corporation and staff were very pleased the report from Ofsted which graded the College as 'Good° in every assessed area. The College's grades awarded by Otsted were.. Overall Effectiveness Effectiveness of Leadership 2nd Management Adult Leaming Programmes Quality of Teaching, Leaming and Assessment Personal Developrnenl, Behaviour and We￿a Outcome for Learners Grant Funding The College's perfomiance against the Education and Skills Funding Agency's IESFAI revenue and learner number tsrgets in 2020121 is set out below". Funding for Adults Funding Category Target {allocation) A¢lual Outturn {GLAIESFA contracts) (Final Claim) Perfomance Adult {19+l Leamer- ResF)onsive Funding Adult EduCat￿n Budget IAEB) £4.333.000 £4,055,000 93.6 % Under ESFA funding rules, Ihe College can expect to receive the lower of the final actual outtum or the funding allocation, subject to a.reconciliation threshold.. For 2020121, the ESFA confirmed that due to the impact of the pandemic on College activities, the threshold would be sel al 90010, meaning the College is not subject to reconciliation and clawback of funding for 2020121 and the College accounts recognise the full funding allocation as income in the year. Funding for 16-19 Year Olds Funding Category Target lallocab.onl Actual OLTrtturn IESFA contract) (Final Claim} 40 30 Perfomiance 16-18 Leamer- Responsive Funding Leamer Numbers 750 Funding Value £187.083 £ 143,524 770 Under the ESFA lagged funding rules. the College will receive the target funding value for the year and any over or under performance will be taken into account in funding allocations for future years. The College considers the overall performan￿ against funding lo be satisfactory given the scale of disruption to delivery caused by Covid-19.

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT forthe year ended 31 July 2021 other Incomg The table below shows the proportion of the Col*e's income received in the form of direct fvnding body grants for the last five years: Year Direct Grants Total Income £'ooo £'ooo 2016117 4,585 5,767 79% 2017118 4,679 5.883 81% 2018119 4,678 5,789 800A 2019120 4,765 4,977 5,373 5,634 89% 2020121 The proportion of College income derived from direct grant funding has remained in a narrow range between 780/0 and 81Qk dunng the period from to 2018119. The proportion increased markedly in 2019120 and 2020121 as a consequence of the Covid-19 pandemic because funding income was largely preserved, but fees and other non-funding income fell signtficantly. Nevertheless. the College remains committed lo reducing its dependence on direct fvnding body grants where possible. Learner tuition fees decreased again year on year from £424,000 in 2019120 10 £348,000 in the current year reflecting the full year impact of the coronavirus pandemic including a "lockdown. from January lo March 2021 preventing the College from running COUTses that required studio resources in the College buildings. The amounts re￿IVed by the College through adult leaming loans, for learners aged 19 or over who are studying at level 3 or higher, are induded within fee income. These have generally not proved popular with leamers and contributed only £38,000 of fee income in 2020121 12019120 £62,000) The College keeps the level of fees under constant and careful review in order to optimi5e income while ensuring that adult education remains accessible to as many people as possible. Leamer Nurnbgrs In 2020121 there were 2,502 unique leamets of which 1.833 were female and 669 male and 6.443 enrolmenls in the College. mostly on part time courses ranging from one 2 hour session lo a full 3 days per week and including the leamers enrolled on courses in the community- Overall learner numbers decreased by 670 and enrolmenls by 10 in the awredited provision and by 772 on non-aecrediled courses. This was due to a combination of the impact of Covid-19 and changes to the ¢ourse structu￿. Leamer Perfonnance Compared to 2019-20, the College made a ￿markable recovery in bringing achievement rates back lo pre-covid levels despite a complete lockdown in term 2 of 2020121. On accredited courses retention was 4 % above the previous two years at 94QA {1 % above college target} and pass rates were 8Va above 2019120 and only 5Yo below 2018119, compared to 14% down in the previous year. Overall achievement was only 1 OA below 2018119 at 850k compared to 74Qk in 2019120. Non- accredited courses were strong with achievement slightly above 2018119 at 92%. Although overall achievement across the College did not hrt College targets, they were sel at the same level as 2018119 as the uncertainty of the pandemic made it impossible to predict with any certainty". therefore they were less meaningful.

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 Juty 2021 The table below shows student overall achievement ft)r all Col*e courses. as reported in the College self-assessment reporL Accredited Learners1746 leamers with 1.353 enrolmentsl Year Retention Pass rate Overall A¢hievement Attendance 2019120 Actual 91% 82% 74% 880 2020121 Target 2020121 Actual 92% 90% 83% 88 9/. 91% 85% 900 Percentage point change 2020121 over 2019120 +11 Non-Accredlted Learngrs12,288 leamers 5.090 enrolments) Year Retentlon Pass rate Overall Achievement Attendance 2019120 Actual 91% 99% 89Yo 900 2020121 Target 2020121 Actual 95° 99% 90% 940 99% 92% 890 Percentsge F)oinl change 2019120 over 2018119 No change Other External Perforniance Indlcators The College is committed to observing the importance of sector measures and indicators and uses the FE Choices data available on the GOV.UKwebsite which looks at rneasures such as overall achievement rates. The College is required lo complete the annual Finan￿ Record for the Education and Skills FLJnding Agency IESFAI. The Finance Record prcmjuces a financial health grading. Under the ESFA'S new methodology for calculating the grade, the College achieve5 2 "Requires Improvement. rating for 2020121 and Good. for the 2021r22 budget. This is a Consequen￿ of the reduced EBITDA in 2020121 resulting from the impact of Covid-19 on the income and operating perfomiance and the associated impact on cash holdings and the current rab"o. Up until July 2019. the College held an 'Oulstanding" financial health grade and Governors are confident that the financial Strategy and plans will return the College to a 'Good' rating by July 2022. In summer 2018. Working Men's College becarne the first college in London and the first adult college nationally lo be awarded chartered membership of the Chartered InsJ"tub"on for Further Education. The College's Principal was recognised with fellowship of the jnstitub.on in summer 2019. STRA TEGIC REPOR T FINANCIAL POSITION Financial Results Although the College reported a second year of operating deficit at £94,000 for the year to 31 July 2021 12020 - deficrt of £47,000), this is considered to be a sabsfactory result in light of the disrupb'on caused by Covid-19 and the resulting loss of fee income and other non-grant funded income and is better than the budget approved by Corporation for the year. The College "furtoughed" some staff during the national lockdown between January and April 2021 and, where they qualified, claim5 were made lo the Government's Coronavirus Job Retention Scheme which helped mFkngate the defrcit.

WORKING MEN'S COLLEGE CORPORATION MEMBERS. REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 The capitsl project to replace the entire heating system in the College building at Crowndale Road and introduce a mixed mode ventilation system reached practical completion during the year with £3 02m of work in progress transferred to building improvements in fixed assets wth an expeeled useful life of 25 years adopted for depreciation purposes. The College purchased £849,000 of other new tangible fixed asset addib.ons during the year, ofwhich £266.000 was computer equipment and £455,000 related to other building irnprovemenls, fvmilure. fixtures and fittings with £128,000 being work in progress relating to upgrading of the College's IT infrastructure undertaken across spring and summer 2021. At the end of the year, the College owned tangible fixed assets with a net book value of £9.094 million of which £8.574 million related to buildings and building improvements. £368,000 related to computer and other equipment. fixtures and fittings and £128.000 to the IT infrastructure upgrade in progress at the year end. Investments The College's perf0mlan￿ on its endowment investment portrolio is set out in note 12 to the accounts. The portfolio generated an income retum of £114,000 during the year and increased in value by £937,000. The portfolio had a market value of £5.799 million at the balance sheet date12020 - £4.862 Total comprehensive income in 2020f21, slated after investment gains. was a surplus of £933,000 12019120 - deficit of £645,000) ReseNes The College has no ft)rmal reserves policy but recognises the imwrtance of reserves in the financial stability of any organisalion and stn.ves to ensure that there are adequate reserves to support the College's core activities. As at 31 July 2020. general income and expenditure funds totalled £8 068 million compared lo the 2020 total of £8.101 million. The College also held reslncted funds and endowments totalling £5.644 million 12020. £4.680 millior4} These funds have been given to the College for particular purposes specified by donors and therefore are not available to the Corporation for general use although some of the endowments are classified as expendable. It is the inlentson of the Corporation to maintain a balance in the level of reseNes between providing adequate levels of contingency and investing in projects that will develop the College and support delivery of the strategie p18n. The Corporation is formulating a medium term strategic financial plan to replenish the reserves utilised in 2019120 and 2020121 during the coronavirus pandemic. CURRENT AND FUTURE DEVELOPMENT AND PERFORMANCE Financial Plan The College Governors approved a financial plan in July 2021 which sets objectives for the period lo July 2022 and demonstrates financially how the College can expect lo deliver ils strategic plan and objectives. Because of the continuing impact of Covid-19 and related uncertainties about how il will affect College OF)eralions during that periijd, the plan has more elements of estimation and risk outside the College's control than in other years. The plan has an operating surplus of £94.000 and the Govemors evaluated the plan carefully and consider that the undertying business remains strong and expect to maintain 8nnual budgets that are in surplus after the pandemic is over. Addib"onally, il was noted that the cashflow associated with the budget was cash generative and so helps improve the College's cash reserves and current ratio which is currenly signtheantly below the financial objective largeL

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 Treasury Policies and Objeclives Treasury management is the management of the College's cash flows, ils banking, money mart(et and capital market Iransaclions, the effective control of the risks associated with those activities and the pursuit of optimum perfomance consistent with those risks. The College has a separate treasury and investment management policy in place. Cash Flows and Liquidity There wa5 a net cash inffow for the year of £50.00012020'. outt5ow of £1,534,000). In 2019120, this is a consequence of the expendrture on the new heatsng and ventilation project, funded from accumulated surpluse5 of previous years. The undertying position from net operating activities was a cash inflow of £915.00012020. £152,000). Long Terni Loans The College has existing long term loans al fixed rates of interest." one with Lloyds Banking Group for £1,000,000, drawn down in July 2007 and the other wrth Barclays for £500,000, drawn down in July 2008. Both loans were taken out lo support the major capital building improvement worl<s programmes at the College's Crowndale Road site. Al 31 July 2021 the total loan principal outstanding was £719,000 12020. £805,000), of which £449,000 is owed to Lloyds and £270.DOO to Barclays. The College has not breached any of the loan covenants on either loan and does not foresee a risk of that happening within the current planning horizon. The College keeps the loans under revTew and whether they should be paid down earty in full or in part. Currently the Governors consider that the financial penalty for eady payment of a fixed term loan does not represent value for money. Student Overall Achievements Overall achievement rates for the year were 920h for non-a¢xredited leamers (2020 - 890k} and 850 for those on accredited courses 12020 - 74Yol. Overall retention and pass rates on non-accrediled courses were maintained through term 2 where courses continued suc￿sSfUllY online, resulting in overall achievement being 3 percentage points higher than the previous year. For accredited provision both retention and pass rates re¢oveted from their fa115 in 2019120_ A "confidence gains. suivey was introduced in 2018119 in ESOL, English and maths. and then Community classes in 2019_ Leamers were asked whether their course had increased their confidence in a range of activities and siluaty.ons that they encounter in their daily lives, such as talking to healthcare professionals, the Council, the Jobcenlre Plus, their landlord. neighbours. stsff at their children's school, or when shopping, al work. engaging in job search. managin9 their personal budget, bme management, using transport etc. In the Confidence Gains survey 86% of English learr¢ers and 79% of maths learners say that their course ha5 made them more confident with looking for a job. In the separate QDP run leamer survey, 87¢k agree that they are developing the skills needed to get a job or take the next step. The College's annual Celebration of su￿$$ rsighl again had to take pla￿ virtually via YouTube because of Covid-19 restrictions. Nevertheless, many students passionately shared moving stories of how the College has changed their lives. for example giving them the language skills that enable them lo communicate outside their famity and part￿ipate in their c4)mmunity, as well as enabling them to gain employment. 10

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the yearended 31 Juty 2021 Curriculum Developments Curriculum teams continued to review and amend the course offer for 2020121. ensuring it would be more robust with increased progression routes and a grealer emphasis on qualthcation achievement and employment outcomes for learners. Whilst retaining the essential ethos of the College, the ongoing drive to develop opportunrties for formal accreditation alongside the well*slablished, non-accredited provision has continued, with a further increase in exlemal accreditslion in the vocational curriculum and arts, and a review of the qualificabons offered, the estsblishment of AAT accountancy qualification courses being an example. This has been well received by leamers, evidenced in enrolment numbers and what was predicted to be excellent achievement had it not been for the pandemic. The increasing need lo be highly responsive to emerging unernployrnent and the need for retraining and refocussing on new skills and readiness for work. has been a focus for the College over the summer and will be developed in 2021122. The Leaming Centre opened in FebTuary 2020 but inibally had limited use due to lockdown closures and ￿qUired social distancing when it first re-opened. Dufing 2020121 il has grown in popularity among learners. Along with the Library, il forms the hub tor leaming and study outside the classroom. It is also used for digital learning support where drop-in support 15 available from expert digital learning staff. This facility has a pivotal role In underpinning learning during the pandemic as learners with limited computer access at home can use the Leaming Centre for study and a150 to attend online lessons. Support for job search, the National Careers Service and employability skills coaching is based in the Learning Centre and Library. Payment Perforn￿nc9 The Late Payment of Commercial Debts Ilnteresll Act 1998 reqijires colleges, in the absence of agreement lo the contrary, to make payments to suppliers within 30 days of either the provision of goods or services or the date on which the invoice was reeeived. The target sel by the Treasury for p8ymenl to suppliers within 30 days is 95°kn_ During the accounting peTiod 1 August 2020 to 31 July 2021. the College considers that rt achieved this tsrget for invoices where there were no disputed costs. The College incurred £830 In interest charges and late payment fees to 3 suppliers 12020." £71 from one supplier) in respecl of late payments. Restructuring The College continued lo keep its staff structure under review lo ensure il remains fil for purpose, affordable and able to provide the best possible service lo leamers. However. no fomial restructures were initiated during 2020121 and the College incurred no contmctual or non-contractual restructuring costs12020 £36k contractual and £7k non-contractuall. F￿Ure Developments The College will conlinue to adapt and respond to the Covid-19 pandemic. making necessary adju51menls lo enable as much leaming as possible to continue both online and face-lo-face as appropriate and as govemment guidance dictstes. Online learning wll continue lo be a feature of the College delivery model into the future and additional resou￿5 and materials which SLJPPOrt this approach will be developed. An overall digital strategy actr.on plan is being implemented following the launch of the new Learning Centre and appointment of a Digital Learning As51slant. The changes lo Government guidance from July 2021 enabled some Covid-19 operating restrictions to be lifted for the start of the 2021122 year. including the temporarily reduced class sizes. The College considers rt is well placed to retum to the nomial h￿her levels of activity and income if restrictions are not reintroduced. The College is planning curriculum resF)onses for the post-pandernic world, developing a stronger and expanded employability provision to support those finding themselves unemployed or needing to change career or the sector in which they woth. This Includes working with community partners and external agencies and using the GLA'S London Covid Recovery Delivery funding. 11

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 Other planned curriculum developments include increasing level 2 provision and subsequently level 3. An expanded humanities offer and a suite of heafth and wellbeing courses are being introduced to meet Ihe needs of local residents and in line with priorities set out in the Mayo¢s Skills for Londoners strategy. The College will continue lo refine ils approach to charging fees on Community Learning funded courses lo ensure that the College courses are accessible to all who need them and finan￿ is not a barrier lo leaming, whilst also respecting and following the spirit of the funding gu￿anCe on chargirsg parh'cipants. The London Insb"tutes of Adult Leaming ￿ntinUe to develop closer Wofking links and collaborations. RESOURCES The College has various resour￿ which rt can deploy in pursuil of its strategic objecbves. Tangible resources include the main site at Crowndale Road wf(h a book value of £8.574 million, prineip8lly related to building works ￿rnpleted in 2008 and 2012 in Phases 1 and 2 of the Accomrnodation Strategy and the recenyy completed heating and venlilalion programme. There is a second centre in Kentish Town which is owned by Ihe London Borough of Camden and used by the College on a tenancy-at-will basis. Financial resources include investments and endowments totalling £5_799 million at the balance sheet dale plus short term deposits and cash holding5 of £810.000. offset in part by long term debt of £719,000. The budget and cash flow forecasts for 2021122 and beyond dernonstrale that the College will continue to have SuffI￿ent resources available to tt lo meet obli9alions as they fall due and maintain operations. Human resources comprise a staff base of 98 full-b'me equivalents, of whom 54 are teaching staff, with a headcounl of 179 (122 teaching) as the College makes extensive use of subject specialists, many of whom leach part time al the College whilst also working in their specialist industy. The College has 8 Strong reputation locally, based on the qualty of services, the breadth of comrnunity involvement and the continuing interest in long and distinguished history, as well as the benefit of an Ofsted good. rating. PRINCIPAL RISKS AND UNCERTAINTIES The College has developed strategies for managing risk and has embedded a system of intemal control, including financial, operational and risk management which is designed lo protect the College's assets and reputation and enable il to respond in a timely and proportionate manner to changing circumstances including those arising from the Covid-19 pandemic. Based on the strategic plan and annual improvement plans, the Executive Management Group IEMGI vndertakes a regular review of the risks to which the College is exposed. The members identify systems and pr0￿dUreS, including specffic p￿ventable acb'ons which should mitigate any potential impact on the College. The intemal controls are implemented and internal audit work and other monitoring throughout the year helps appraise their effects"veness and progress against risk mitigation actions. The EMG also considers the impact of the latest govemment guidance and rules relating lo Covid-19 as well as any risks which may arise as a result of new or changed areas of work being undertaken by the College. A risk register is maintsined at College level which is formally reviewed al meetings of the EMG. The risks are assigned to the most relevant committee of co￿oration and reviewed al temly meetings of those Committees and then annually by the full Board. The risk register identifies the key risks. systems and prO￿dureS lo control them. the likelihood of those nsks occurring, their potential impact on the 12

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 College and the actions ￿l￿g taken to reduce and mitsgate the risks. The risk description and mitigating control measures for each risk include an expli¢EI evaluation of the Covid-19 impact. Risks are prioritised using a consistent scoring system. This is supported by a risk management training programme to raise awareness of nsk throughout the College. Outlined below is a description of the highest rated risk factors that could affectthe College, as identified by the Executive Management Group during 2020121. Not all the factors are within the College's control. Other factors besides those listed bekiw may also adversely affect the College. 1. Govemment Fundin The College ha5 considerable relian￿ on continued govemment funding through the further education sector funding bodies. In 2020121, 880A of the College's income Wds ultimately publicly funded12019120 89'/.1 although this level Should redu￿ again from 2021122 as fee income rises agasn post-pandemic and ttpportunilies to generate incorne from other sources relum. The College maintains an objective of reducing dependence on stale funding, but recc*Jnises that rf( wll remain the dominant Source. The government funding has helped maintain financial stability during 2019120 and 2020121 and provided some protection from the wider economic volaty.lity from external factors. There can be no a5SLJran that government policy or practice will remain Ihe Same or that public funding will continue at the same levels or on the Same temis, especially following devolvement of funding to the Greater London Aulhonty {GLAI from August 2019. The College is aware of several issues which may impact on future fvnding and associated income.. The implementation of the announcements in the Chancellorfs comprehensive spending reviews and the expected Further Education and Skills Bill and how Ihese will be reflected in individual College funding allocatjons; Changes to priorities, allocats.ons and methodologies following devolution of funding to the Greater London Authority., The availability of funding grants tsrgeted directly at activrties that respond lo, and support recovery from, the Covid-19 crisis.. and The extent to which learners are willing lo take up °advanc£d leaming loans" particularty following extension of the scheme to leamers aged 19 plu5 from Septern￿r 2016. The risk is mitigated in a number of ways.. By ensuring that the College is rigorous in delivering high qualrty education and training.. Considerable focus and investment of lime is placed on maintaining and managing key relationships with funding bodies and sector organisatsons, including the new GLA staff, 50 that they understand the circumstances. challenges and polenlial of the College,. Increasing links vrth employers to ensure that provision remains relevant to work and skills needs. Promoting examples of how successful leamers progress into the labour market., and collaborats.ng with other Institutes of Adult Leaming as appropriate. 2. Tuition Fee Polic Government ministers have confirmed that the fee assumption remains at 500A. In line with the majority of other colleges, WM College will seek lo increase fees in accordance with the fee assumptions and also develop a range of studio and short full cost courses. However, the College values Strongly the principSe of access to learning being available to everyone. regardless of financial circumstances. It seeks to hold these two objectives in balance. The nsk for the College is that demand falls off as fees increase and this will impact on the growth strategy of the College. The restn'ction on the number of learners in workshops and classrooms as part of the Covid-safe measures and the risk of further lockdowns present a high risk to the achievement of tuition fee budgets. 13

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT forthe year endod 31 July 2021 The risk is mibgated in a number of ways.. By ensuring that the College is rigorous in delivering high quality edLscation and training and thereby demonstrating value for money for students. Close monitoring of demand for courses as prices change and responding swiftly and appropriately., Market research to estsblish demand, willingness to pay and price elasticty., Marketing in￿ntiveS and campaigns to encourage and incentsvi5e enrolments.. Flexible fee payment opportunities and methi)ds including instalment plans", 3. Com elition from other roviders Wl(h the reducts.ons in funding and irnplementatton of the Area Review structural changes, competilion from other provider5 is expected to become more intense. Mitigation actions include.. Promoting the College's niche positH)n in terms of svze. reputation and curriculum offer as an Institute of Adult Learning., Innovation and development wthin the College's ¢xJre curriculum to tap new markets; 4. Adverse im act on financial viabil. from dis rtionatel la e ESOL rovision. ESOL provision is the most vulnerable, with threats to its delivery models and funding rates. However, the demand and need for this provision amongst the local communities that the College serves remains high. Mitigation actions include-. Monilonng govemmenl and funding agency infomialion and annoUn￿mentS closely to get early waming of any proposed changes and plan accordingly. A clear fees policy for ESOL provision to establish an appropriate balance of dependency between funding and fee income. 5. Severe adverse ublici The College is well known in the local communrty and recruits the vast majority of its learners from the communities around the College. Any adverse publith could therefore impact on recruitment. As part of risk mitlgalion, the College has reviewed its marketing approach and arrangements and makes use of external expertise lo bring fresh ideas, new campaigns and an appropriate balance between traditional marketing and S￿la1 media to promote the College. New College branding was introduced in summer 2020 that reflects the image and values of Ihe College and represents it appropriately to the community and target markets. 14

WORKING MEN'S COLLEGE CORPORATION MEMBERS. REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 STAKEHOLDER RELATIONSHIPS In line with other colleges and educational institutions, the Working Men's College has many stakeholders and an extensive range of relationships wtth local people and group5. These include the College's own student5 and staff., funding bodies, eSpe￿allY the Educab"on and Skills Funding Agency and the Greater London Authority., the London Borough of Camden.. a range of local employers", Local Enterprise Partnerships ILEPsl', local community groups, including the Somers Town Big Local for whom the College acts as the 'Local Trusted Organisalion ILTOI.: the other Institutes of Adult Leaming IlALsl. especially the four based in London- local FE colleges-, the FE Cornmis5ioner, and trade unions and professional bcxlies. The College recognises the imF)ortance of these ￿lationShipS and engages in regular communication wrth them through a range of media and methcKJs. Community Responsfveness and Employer Engagement The College has been implementing a successful communty engagement strategy for many years,. it has established provision at 28 local outreach venues and built a number of proactive partnerships and close working relationships with the voluntary and community sector in central Carnden. The community provision continues lo take provision to students who would not otherwise access the College. Partners include commLFnity centres. refugee organisations, priTnary ar7d secondary schools, tenants, 8$s(￿latIonS, a housing trust. a local hospital, health centres. Carnden Adult & Community Leaming, the Brrtish MLtseum and local employers. These working relationships help identify and target disadvantsged learners in Camden. Further infomiation on these aspects of the College's work can be found in the Seff Assessment Reiy)rt available via the College website or on applicatson to the Clerk to the Corporation. The focus for the College's work is on ensuring local people have the opportunity to gain local employment and lo this end notsble targets have been the public sector, in particular Camden Council and heakh and care organisalions, the King's Cross redevelopment, Crossrail and HS2 and projects coming from the voluntary and communrty sectors. The College also works with 8 wide range of voluntary and other organIsat￿nS which provide specialist support to students to build self-confidence and facilitate progression to work related training and employment. Educational LiTrks The College has a wide variety of strategic links wtth other educational instttutions. The Greater London Authority {GL41 ljecame the College's pnncipal funder for adult education from August 2019 whilst the Education and Skills Funding Agency {ESFAI remains the funder for all 16-19 activity and for adult funding for learner5 living otjtside the London borough5 controlled by the GLA. The group of four London IALs- the Working Men's College, the Mary Ward Centre, City Lil and Mortey College. more recenuy joined by Richmond and Hilcroft Adult Community College - have a very long standing partnership which is used in a variely of conslruclive ways to address nabonal, regional and local prioritres. Closer working and a new common idents.ty as the London Adult Leaming Insbtutions ha5 enabled some joint initiatives to be developed effectively. 15

WORKING MEN'S COLLEGE CORPORATION MEMBERS. REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 There are on90ing partnerships with the Institute of Educab"on and the University of Greenwich through which placements are provided al the College for trainee teachers supported by strong mentoring relationships wfth established and experienced teachers although these did not operate during 2020121 due to the coronaviws pandemic preventing effective and safe p5a￿mentS. Staff and Student Involvement The College considers good communicab.on with staff and students to be vital. The Corporab'on includes staff members and Nvo student members and the Curriculum Quality and Standards Committee includes all academic managers. Staff and sludenl bulletins and newsletters were produced during the year and a regular Principal's Update issued to all staff lo increase communication during the Covid-19 pandemic. The College Intranet is also used to facilitate communication with staff. The Principal usually hosts Learner Forums across both College siles to enable leamers to meet senior management, lo provide comments and feedback on all aspects of their College experience and to provide leamer views on possible new College inity"atives, although these had to be suspended during the pandemic. Senior College managers mel wf(h union representstives when preparing the plan and risk assessment for re-opening the College buildings after Icokdown in summer 2020 and all staff had a face-to-face induction on their fI￿t day back in the College. Most of the working parties and development groups wthin the College include staff and student representakn'on. Somebrnes it is difficult to secure the level of staff and sludenl participation that is desirable because of the high proportion of leaching staff and students who are part-lime. The Health and Safety Consultative Committee vrd5 r&established during the year. following the appointment by the recogni5ed teaching union of a health and safety representative. Equality The College is committed to promobng equalrty of opportunity in all aspects of rt5 operalioTrs for all who learn or work at the College. It recognises rts legal resFX)nsibilities, respects and values all differen￿5 and individual choices and lakes all reasonable steps to ensure there is no discriminats'on against any student, member of staff or the public, on the grounds of race, gender, sexual orientslion, disability, religion or belief and age. Monitoring systems have been introduced and perfomiance tsrgels identified. The College's Equality Policy is published on its website and rt produces an annual Equality Report and Equality Objectives to ensure compliance Wbth all relevant equality legislation including the Equality Act 2010. Employment of Disabled Persons The College considers all applications for employment from disabled persons, bearing in mind the aptitudes of the individuals concemed Where an existing employee becomes disabled, every effort is made lo ensure that employmentwith the College continues. The College's policy Is to provide training, career development and opportunrties for promob.on that are. as far as possible, idenbcal to those of non-disabled employees. Dlsablllty Staternent A key purpose of the College is to be a leamer<entred college dedicated to providing opportunities for lifelong learning for the diverse range of London adults who may not be able to study full time, particularly those who have missed out on their initial education. As part of its commitment to inclusNe education and equality of opportunity the College welcomes students with learning difficuities and disabilities. The College endeavours lo be flexible and match the learning support to each student's individual needs and achieve the objectives set down in the Equality Act 2010. 16

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the year ended 31 July 2021 The College employs a fvll-b.rne Disability Officer to promote a￿a￿ne$S and implementation of this statement and 5UPPOrtiftg policies. The aims of the College include.. identifying and responding to individual student needs, to irnprove continually students, learning experience., ensuring all students a¢hieve their full potentol thfough the provision of a high quality student centred learning environment., actively promoting eqLFality of opportunity for all s￿dents- ensuring appropriate steps are taken to guarantee that a disabled learner is not placed at a subslanlial disadvantage in comparison with a leamer who is not disabled. A range of courses for learners wth learning difficulties or disabilities has been introduced to provide learning in smaller groups and at a pace that increases these learners, ability to achieve their learning aims and progress to fvrther study or employment. Safeguarding and Prevent The College fL*lly recognises its responsibility lo promote safe practs.ce and lo protect and safeguard the welfare of everyone working and studying there. Govemors and managers believe that learning takes place most effectively within a culture in which all individuals trust the College to keep them safe from harm while there and give them informats"on, advice and help to keep themselves safe from harm at other limes. The￿ are clear processes and procedures in place should anyone have a concern and the College works wrth a number of external agencies lo support leamers to remain in leaming, including the FE Prevent coordinators. TRAOE UNION FACILrrY TIME The Trade Union {Facility Time Publicats"on Requirements) Regulations 2017 require the College to publish information on facility lime arrangements for trade union officials at the College. The following information relates to the period from l April 2019 to 31 March 2020 as required by the Regulations arid is also made available on the College's webs¢le. Number of employees who were relevant unh)n officials during the relevant period Full time equivalent employee number Percentage 1-50% No. of employees Percentage of lime spent on fac1t￿Y lime Percentage of pay bill spent on facilty ts'me Total cost of facilty ts.me Total pay bill Percentage of total pay bill spent on facilty time £350 £3,909,000 0.01D Paid trade union activities Time spent on paid trade union actiV￿"e5 as a per￿ntage of total paid facility hours 0% 17

WORKING MEN'S COLLEGE CORPORATION MEMBERS, REPORT INCLUDING THE STRATEGIC REPORT for the yearended 31 Juty 2021 EVENTS AFTER THE END OF THE REPORTING PERIOD There are no post-balanc sheet events to report GOING CONCERN After making appropriate enquiries, in¢luding giving carefvl consideration lo the current and potential further impact of Covid-19 on the College's operats.ons and finances, the members of the Corporation consider that the College has adequate resources lo continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. DISCLOSURE OF INFORMATION TO AuD￿OR$ The Govemors who held office at the date of approval of this report confimi that, so far a5 they are each awa￿, the￿ is no relevant audit infomation of which the College's auditors are unaware., and each Governor has taken all the steps that he or she ought lo have taken to be aware of any relevant audit information and to establish that the Cole's auditors are aware of that infomiation. The members, report including the strategic report was approved by the members of the Corporation and si ned n their behalf on 15 December 2021 by: Guy Chair ackle 18

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 July 2021 The following Statement is provided to enable readers of the annual report and financial 51atemenls of the College lo obtain a better understsnding of its govemance and legal structure. This statement covers the period from 1 August 2020 10 31 July 2021 and up lo the date of approval of the annual report and financial statements. The College endeavours to conduct its business-. in accordance with the seven principles Klentified by the Comrnittee on Standards in Public Life Ise5flessness, Integrity, objectivity. accounlability, openness, honesty and leadership),. in full accordance with the guidance to colleges from the Association of Colleges in The Code of Good Governan￿ for English colleges I the Aoc Code.).. and iii. having due regard to the UK CorFK)rate Govemance Code 2016 insofar as it is applicable to the further education sector. The College is committed to exhibiting best practice in all aspects of corporate governance and in particular the COll￿e has adopted and complied with the Aoc Ci)de. The College has not adopted, and therefore does not apply, the UK Corporate Governance Code. However, it has reported on Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Govemance Code considered lo be relevant to the further educab.on sector and best practice. In the opinion of the Govemors. the College Complies wth all the provisions of the Aoc Code and it has complied throughout the year er5ded 31 Juty 2021. The Corporation recognises that. as a body entrusted with both public and private funds, it has a parb"cular duty to observe the highest standards of corporate governance at all times. In carying oul tts responsibil￿es, il takes full account of The Code of Good Governance for English Colleges issued by the Association of Colleges in March 2015, which it formally adopted on 15 July 2015. The College is a regislefed chanty wrthin the meaning of Part 3 of the Charibes Act 2011. The Appointed Governors, who are also the Trustees for the purposes of the Charities Act 2011, confsrrn that they have had due regard for the Charity Commission's guidance on public benefit and that the required statements appear elsewhere in these financial statements. Govemors of the Corporation The Govemors who served on the Corporation during the year ended 31 Juty 2021 and up to Ihe date of signature of this report are listed on the following page. Ke lo committees.. A Audit S Search F Finan￿. Personnel & Development E Estates Strategy Group R Remuneration Q Curriculum. Quality and Stsndards {Chl Committee Chair Number of Meelin s 202Ck21 Corporation Finance, Personnel & Development Audit Estsles Strategy Group Currtculum, QLTrality and Stsndards Search Remunerab"on In 2020, in response to the Covid-19 pandemic, the c￿lege established a Chairs, Groltp comprising the Chair of Corporation, the Vice Chair of Corporation. the Chair of Audit Committee, Chair ol Finance, Personnel and Development Committee. Chair of Curriculum, Qualty and Slandards Committee and the Principal lo strengthen govemance support for the College's Executive Management Group. The Chairs, Group had no formal powers beyond those vested in its members. 19

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 Juty 2021 Governors {Appointed and Nominated) who served between 1 August 2020 and up to the date of signature of this report were: Date last Appointedl Reappointd Status of Appoint- ment Name Date Fi￿t Appolnted Tern) of Office Date Resigned Full Corp'n Meetings Attended Comm- ittees l<ate Bell Ivice Chairl Arnanda Blinkhorn 2110312018 1610712008 3 Years 0110412021 Apw)inted Alchl, R, S Nominated Tchng Staff Nominated Student 2of2 '3110312021 2110312018 3 Years 3of3 Romi Brandeis 0110712019 0110712019 1 Year 251thsr2021 2of2 Barbara Byrne 0110412020 11112r2013 3 Years Arianna Cariacciolo Appointed Nominated Sludenl E. FIChl. Q, 3of3 0110712019 0110712019 1 Year 251LKff2021 1of2 Susan Cofby 1510712020 1510712020 3 Years Appointed F 3of3 Fran Fahey 0310412019 03104r2019 3 Years Appointed F Nominated Sludenl 3of3 Khaly Fall 2510612021 251[￿2021 1 Year 1of1 Neil Gamer 1510712020 1510712020 3 Years Appointed A 3of3 Helen Hammond 0111212014 0111212014 Ex Officio Prin￿paI F.Q,S 3of3 June Jarrett 1610712020 1210712017 3 Years Appointed Q 2of3 Samat2 Khatoon Monika Kinasiewicw 2310312021 2110312018 3 Years Appointed Q Nominated Bus. Staff 3of3 0111112019 0111112019 3 Years 3of3 ,Alexi Marmot 0110412020 1111212013 3 Years Appointed E{Chl. F 3of3 Chris Percy 0310412019 20107r2016 3 Years 3111212020 Appointed A 1 of1 Guy Shackle (Chairl 2310312021 21103r2018 3 Years Appointed R, S, E, F 3of3 Jon Sibson 03104r2019 0310412019 3 Years Apwinted aichl, F 3of3 Max Silver 3110312021 3 Years ApFK)inted A 2of2 Paul Smith 1 1610712020 1210712017 3 Years Appointed A{Ch) 3of3 + and - indicate a Governor resFectively joining or leaving a committee during the year. During the year one new Appointed Govemor and one Nominated Sludenl Govemor joined the Board and tsvo Appointed Governors stood down. Two existing Appointed Govemor5 were re-appointed for a further term. The Board agreed that the temis of office of the two Nornnaled Student Govemors should be further extended lo June 2021 as the Covid-19 pandemic and natsonal Icddown prevented new elections from being held ijntil the summer temi 2021. 20

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 July 2021 The Art￿leS of Associab"on ft)r WMC Corporation were last amended and approved by the then Department of Business, Innovation and Skills IBIS) and adopted by the Corporation on 7 July 2010. The Revised Articles of Association included provision for retirement by rotation for Appointed Govemors organised via three cohorts to avoid uneven bunching of considerab.on of re-appointments. The Principal is the Accounting Offi￿r and, ex officio, a Nominated Governor. The date of appointment as a Nominated Governor and the date of rekn'rement or removal from office are detemiined by the Appointed Governor5. The Working Men's College is a company limited by guarantee and ils Appointed Govemors are also members of the company. Every member undertakes to contribute lo the assets of the company in the event of it being wound up while helshe is a member, such amount as may be required but not exceeding five pen￿. Bill Barker was the Clerk lo the CoTPOTation and Company Secretary throughoul the period. Fellows of the College In January 2020, the Search Committee agreed to propose additional 6 year terns of office for existing Fellows and new appointments and 6 year teTm5 of office for other recentty fetired governors. Further development was paused during the Covid-19 pandemic and has restarted for the 2021122 year. Current Fellows are.. Name Year Appointgd l Reappointed 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Temi of Offi¢e Sewn Midgen Bipin Patel Dame Ruth Silver Baroness Janel Whitaker Satn8m Gill OBE Lucy de Groot Abdul Qadar Nigel Franklin David Offenbach Prof Tom Schuller Paula Whithe 6 Years 6 Years 6 Years 6 Years 6 Years 6 Years 6 Years 6 Years 6 Years 6 Years 6 Years Role of the Corporation It is the Corporation's responsibilty to bring independent judgement to bear on issues of strategy. perfomiance, resources and Standards of conduct. Thus, the CoTporation is responsible for detemiining the educational character and mission of the College together with its broad strategic approach. It oversees the delivery of the College's aims and objectives, the stewardship of its assets and safeguards the efficient and effective use of rts resources. The Principal is accountable to the cor[￿ation, within the framework set by the Governors, and advises the Govemors in the exercise of their resFKJnsibililies. The Corporation looks lo the Principal and the College management lo manage the day-tcpday running of the College. 21

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 Juty 2021 The Corporation is provided, by College managernent, with regular and timely information on the overall financial performance of the College. together wth other information such as performance against funding targets, proposed cap¢tal expenditure. qualty matters and personnel related matters such as health and safety and environmental issue5. The full Corporation meets at least termly and during the Covid-19 pandemic these rneebngs were held online via MS Teams to facilitsle ongoing full engagement by all members. Governors discussed the pandemic and ils impact on the College operations and perforrnance. risk assessments and arrangemetns for returning to onsite activites in a Covid-safe way. They also received urmjates on leamer enrolments, college funding and finances and collaborative arrangements Trmth the other London Instrtules of Adult Leaming. The CorFK)ration conducts its business through a number of committees, each chaired by a Govemor. Each committee has terms of reference which have been approved by the full Corporab"on. The committees which operated dunng the year were-. Audit Committee Cu￿1¢U1Ltrn, Quality and Stsndards Committ Finan￿, Personnel and Oevelopmenl Commrttee IFPDC) Remuneration Committee Search Committee Full minutes of all meetings, except those deemed by the Corwration to be confidential, are available from the Clerk lo the Corporab'on, Bill Barker. at Working Men's College 44 Crowndale Road London NW1 1TR Minutes for Corporation meetings can be downloaded from the Govemors, page of the College Website." https.'Ilwww.wmcollege.ac.ukJabout-uslgovernancel The Governors receive no remunerab.on for their services, but are enb.tled to daim out of pocket expenses. A total of £nil was claimed for the year to 31 July 2021 {£388 in 2019120, claimed by Govemorsl. The Clerk lo the Corporation maintains a register of financial and personal interests of the Governors and key management personnel of the College. The register is available for inspects'on on application to the Clerk at the above address. All Govemors are able to tske independent professional advice in frjrtherance of their duties at the ColSege'5 expense and have access to the Clerk to the Corporab"on, who is responsible to the Board for ensuring that all applicable procedures and regulations are coMpl￿d with. The appointment, evaluation and removal of the Clerk are matters for the Corporation as a whole. Formal agendas, papers and reports are Suppl￿ to Govemors in a timely manner. prior to Board Meeting5. Briefings are also provided on an ad-hct basis. The Corporation has a strong and independent non*xecutive element and no individual or group dominates ils decision making process. The Corporation considers that each of its nonoxecutive members is independent of management and free from any business or other relab"onship that could materially interfere with the exercise of their Independent judgement. There is a clear division of reswjnsibilty as the roles of the Chair of the Corporation and Accounting Officer of the College are separate. 22

WORKING MEN'S COLLEGE CORPORATION

STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL

for the year ended 31 July 2021

Appointments to the Corporation

Any new appointments to the Corporation are a matter for the consideration of the Corporation as a whole. The Corporation has a Search Committee comprising six Governors, which is responsible for the selection and nomination of any new member for the Corporation’s consideration. The Corporation is responsible for ensuring that appropriate induction and training is provided as required. Members of the Corporation are appointed initially for a term of office not exceeding three years.

Corporation Performance

Governors considered a report at the December 2020 Board meeting, ahead of approving the report and accounts, which identified further imporovements in governance arrangements at the College during 2019/20. Supported by the evidence in that paper plus the ensuing discussion, Governors self-assessed their performance as "Good".

Remuneration Committee

The Remuneration Committee comprises three Governors excluding the Accounting Officer. The Committee’s responsibilities are to consider the College's annual report on senior management pay and to make recommendations to the Board on the remuneration and benefits of the Accounting Officer and other designated Senior Postholders.

Details of remuneration for the year ended 31 July 2021 are set out in notes 6 and 7 to the financial statements.

Audit Committee

The Audit Committee comprises three Governors (excluding the Accounting Officer and Chair of Corporation) including a finance and audit specialist. The Committee operates in accordance with written terms of reference approved by the Corporation. Its purpose is to advise the Corporation on the adequacy and effectiveness of the College’s systems of internal control and its arrangements for risk management, control and governance processes.

cesses.
	Appointment Resignation	Possible Meetings	Attended	Attendance
Paul Smith (Chair)		3	3	100%
Kate Bell	1 April 2021	2	2	100%
Chris Percy	31 Dec 2020	1	1	100%
Neil Garner		3	3	100%
Max Silver	31 March 2021	1	1	100%

The Audit Committee meets at least three times during the year and provides a forum for reporting by the College’s internal and financial statements auditors, who have right of access to the Committee for independent discussion, without the presence of College management. The Committee also receives and considers reports from the Education and Skills Funding Agency as they affect the College’s business.

Management is responsible for the implementation of agreed audit recommendations and internal audit undertakes periodic follow-up reviews to ensure such recommendations have been implemented.

The Audit Committee appoints the internal auditors and advises the Corporation on the appointment of financial statements auditors and their remuneration for both audit and non-audit work as well as reporting annually to the Corporation. The appointment of financial statements auditors is an annual item of business for the full Board of Corporation.

23

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 July 2021 Internal Control Sco e ofRes onsibili The Corporation is ultimatety responsible for the College's system of intemal control and for reviewing its effectiveness. However, such a system is designed lo manage rather than eliminate the risk of failure lo achieve business objectives, and can provide onty reasonable and not absolute assurance against material misstatement or loss. The Corporation has delegated the day to day responsibility to the Principal, as Accounbng Officer, for maintaining a sound system of internal control that supports the achievemenl of the College's policies, aims and objectives, whilst safeguarding the public funds and assets for which she is personally responsible, in accordance with the responsibilities assigned lo her in the Funding Agreements be￿een the College and the Education and Skills Funding Agency and Ihe College and the Greater London Authority. She is also responsible for reporting to the Corwration any material weaknesses or breakdowns in internal control. The Pu ose of the S stem of Intemal Contn)I The system of internal control is designed to manage risk to a reasonable level rather than lo eliminate all risk of failure to achieve policies, aims and objectives,. it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of intemal control is based on an ongoing process designed lo identify and prioritise the risks to the achievement of College policies, aims and objectives. to evaluate the likelihood of those risks being realised and the impacl should they be realised, and to manage them effieienlly, effectively and economically. The system of interr¢al control has been in place within Working Men's College for the year ended 31 July 2021 and up to the date of approval of the Annual Report and Financial Statements. Ca 8CIt lo Handle Risk The Corporaty'on has reviewed the key risks to which the College is exposed, together with the operating, financial and compliance controls that have been implemented to mitigate those risks The Corporation is of the view that there is a fom)al ongoing process for identifying, evaluating and managing the College's significant risks that has been in place for the peri(xl ended 31 July 2021 and up to the date of approval of the Annual Report and Financial Staternenls. Risks are allocated to the m05t appropnate committee, reviewed at each meetrng, and reported lo the next full CorFX)ration meeting. A full review of the risks and the annual report on risk management is tjndertaken by Audtt Committee each autumn and ￿ported lo the full Corporation in December prior lo the approval of the financial stslements_ The Risk and Control Framewo The system of inlemal control is based on a framework of regular management inforfflakn"on, administrative procedures including the segregation of duts"es, and a system of de￿atIOn and accountability. In particular, it includes". comprehensive budgeb.ng Systems wlh an annual budget. which is reviewed and agreed by the Governing Body, regular reviews by the Governing Body of periodic and annual financial reports which indicate financial perfomiance against forecasts., setting targets to measure financial and other performance-, clearly defined capital investrnent contro5 guKlelines". and the adoption of fomal project management disciplines, where appropriate. 24

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 July 2021 Working Men's College has internal audit arrangements, which operate in accordance with the requirements of the ESFA'S Post-16 Audit Code of Pracb"ce. The work of the internal audit providers is informed by an analysis of the risks to which the College is exposed and annual inlemal aLtdit plans are based on this analysis. The analysis of risks and the intemal audrt plans are eridorsed by the College's Governing Body on the recornmendalion of the Audit Cofflrnittee. Internal audit services provide the Audit Committee with reports on each internal audit activity in the College. Where appropriate, each report includes their independent opinion on the adequacy and effectiveness of the College's system of intemal control, risk management controls and governance processes. induding intemal financial control insofar as it is impacted by the area being reported on. Review ofEffectiveness As Accounbng Officer. the Principal has responsibility for reviewng the effectiveness of the system of internal control. The Principal's review of the effectiveness of the system of irilemal control is infomied by". the work of the intemal audit providers.. the work of the eXeC￿1ve managers within the College who have responsibiltty for the development and maintenance of the intemal control framework'and comments made by the College's financial statements auditors and the regularity auditors in their management letters and other reports_ The Accounting Officer has been advised on the implications of the result of her review of the effectiveness of the system of inlemal control by the Audit Committee which oversees the work of the intemal audit providers and other sources of assuran￿ and a plan to address weaknesses and ensure conb"nuous improvement of the system is in place. The College's Executive Management Group {EMGI receives reports setting out key perform8nee and risk indicators and considers possible control issues brought to Iheir attention by eaty waming mechanisms, which are embedded within the departments and reinforced by risk awareness training. The EMG and the Audit Committee also receive regular reports from the internal audit providets, which include recommendations for improvement. The Audit Comrnittee's role in this area is confined to a high-level review of the arrangements for internal control. The Corporation's agenda includes a regular item for consideration of risk and control and receive5 reports Ihereon from the EMG and the Audtt Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. Each committee of Corporation receives 8 report on risk management at every meeting including the latest extract of the College's risk register covering the risks for which it has responsibility, as feviewed and upyated by Ihe Executive Management Group. Thus, any new risks are identified and controls on existif7g identrfied risks are reviewed on an ongoing b851S. The Corporation reviews and approves the Risk Register annually and delegates monitoring of the risks listed to the most appropriate cornmittee who consider them at each meeting. At its December 2021 meeting the Corporation will cary out the annual assessment for the year ended 31 July 2021 by considering documentation from the EMG, Audrt Commrttee and intemal audr( providers and taking a￿Ount of events since 31 July 2021. The Board also considers at its December meeting the Annual Report of the Chair of the Audit Committee, which includes advice lo the board on the adequacy and effecb-veness of the College's systems of internal control and its arrangements for risk management. control and govemance pr(Kesses, and on securing economy, efficiency and effectiveness Ivalue for moneyl. The report advises the Board of any significant matters arising from the work of the College'5 Intemal Audit Service IIASI and financial statements and regularity auditors appointed by the Board, and of the Funding Auditors appointed by the ESFA as applicable. 25

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL for the year ended 31 July 2021 The Corporation also receives, in December, the A¢counting Officefs Annual report on risk management which slates the view that the College's practices have enabled rt to effectivety identify, evaluate and control risks in order to eliminate, reduce. contain or transfer them. Based on the advice of the Audrt Committee and the Accounting Officer, the Corporation is of the opinion that the College has an adequate and effect.ve framework for g0veman￿. risk management and control, and has fU￿Illed Its slattjtory responsibility for'the effective and use of resources. the solvenGy of the institution end the body and the safeguarding oftheir assets.. Going Concern After making appropriale enquiries, the Corporation consider5 Ihat the College has adequate ￿OurCeS lo continue in OF)erational existence for the foreseeable fvjture. For this reason it continues to adopt the going concem basis in preparing the financial ststements. Approv by order of the Govemors of the CorF)orab"on on 15 December 2021 and signed on its behalf by." Guy Shackle Chair Helen Hammond Accounting Officer 26

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE for the year ended 31 July 2021 The Corporation has considered its responsibility to notify the Education and Skills Funding Agency IESFAI of material irregularity, irnpropriety and non-compliance with terms and conditions of funding, under the College's grant funding agreements and contracts with the ESFA. As part of tts consideration the Corporation has had dLte regard to the requirements of grant funding agreements and contracts with the ESFA. We confirm, on behalf of the Corporalron, that after due enquiry and to the best of Our knowledge, corpO￿tion members expect to be able to identify any material irregular or improper use of funds by the College, or material non-compliance with the temis and conditions of funding under the College's grant funding agreements and contracts with the ESFA. We further conffmi that no instances of material irregulartty. impropriety or funding non-compliance have been discovered lo date. If any instan￿$ are identified after the date of this ststement, these will be notified lo the ESFA. ned Guy Chair ackle Helen Harnmond Accounting Officer 15 December 2021 27

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF THE RESPONSIBILITIES OF THE GOVERNORS OF THE CORPORATION for the year ended 31 July 2021 The Govemors of the Corporation (who are trustees for the purrKJses of the Charitres Act and whose Appointed Governors are also the directors of the company for the purposes of the Companies Actl are required to present audited finan￿al statements for each financial year. Within the terms and colldib'ons of the College's grant funding agreemen15 and contract5 With the Education and Skills Funding Agency IESFAI and the Greater london Authorty IGLAI, the Corporation, through its A¢counb"ng Officer, 15 required to prepare financial statements and an operating and financial review for each financial year in accordance wth the Statement of Recommended Practice- Accounting for Further and Higher Education, the UK'S Generally Accepted Accounting Practice IGAAPI, the 'College Accoun15 Direction 2020 to 2021° issued by the ESFA and which give a true and fair view of the stale of affairs of the College and its surplus or deficit of income over expenditure for that year. In preparing the financial statements, the Corporats'on is required to: select suitable accounting policies and apply them consistenty.. make judgement5 and esb"mates that are reasonabÈ and prudent.. stale whether applicable UK Accounts"ng Standards have been followed. SUbj￿t to any material departures disclosed and explained in the financial statements". assess whethef the Corporation is a going con￿M. noting the key supporting assumptions, qualifications or mrtigating actions as appropriate., and prepare financial statements on the going concem basis unless rt is inappropriate to assume that the College wll continue in operation. The Corporation is also required to prepare a Members, Report incorporating a Strategic Report, which describes what it is tying lo do and how rt is going about it, including information about the legal and adminislrab've status of the College_ The Corporation is responsible for keeping proper accounting records which disclose, V￿th reasonable accuracy at any tirne, the financial position of the College and which enable it lo ensure that the financial statements are prepared in accordance wlh relevant legislation including the Further and Higher educab'on Act 1992. Charities Act 2011, the Companies Act 2006 and relevant accounting standards. 11 is responsible for taking steps that are reasonably open to it in order lo safeguard the assets of the College and lo prevent and delect fraud and other irregularities. The maintenance and integrity of the Working Men's Coltege website is the responsibilty of the Goveming Body of the College.. the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors a￿pt no responsibility for any changes that may have occurred lo the financial statements since they were initially presenled on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdicts"ons. Govemors of the Corporation are responsible for ensuring that expenditltre and income are applied for the purposes intended by Partk8ment and that the financial transactions confomi to the authorities that govern them. In addition they are responsible for ensuring that funds from the ESFA and GLA and any other public funds are used only in accordance with the ESFA'S and GLA'S grant funding agreements and contracts and any other conditions that may be prescribed from time to time by the ESFA. GLA or any other public fvnder. Govemors of the Corporation must ensure that there are appropriate frnancial and management controls in place in order to safeguard public and other funds and lo ensure they are lJ5ed property. In addition, Govemors of the Corporation are responsible for securing economical, efficient and effective management of the College's resourcès and expenditure. so that the benefits that should be derived from the applicab.on of public funds from Ihe ESFA and GLA are not put at risk. Approved by the Governors of the CorF¥)rats'on on 15 December 2021 and signed on their behalf by.. Guy Shackle Chair 28

WORKING MEN'S COLLEGE CORPORATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORKING MEN'S COLLEGE for the year ended 31 July 2021 Oplnlon We have audited the financial statements of Working Men's College (the 'College'} for the year ended 31 July 2021 which comprise the statement of comprehensive income. the stalement of changes in reserves, the balance sheet, the stalernent of cash flows, the principal accounting policies and the notes to the financial statements. The financial repotting framework that ha5 been applied in their preparation is applicable law and UnÉted Kingdom Accounting Standards, including Financial Reporting Stsndard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. {United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial stalemenls. give a true and fair view of the state of the College's affairs as at 31 Juty 2021 and of it5 deficit of income under expenditure for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice". and have been prepared in accordance the requirements of the Companies Act 20(k%. Basis for opinion We conducted our audit in accordan￿ lntemab.onal Standards on Auditing {UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditr)r's responsibilities for the audit of the financial statements secb.on of our report. We are independent of the College in accordance with the elhical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'5 Eth6cal Standard, and we have fulfilled our other ethical responsibi5ilies in accordance wrth these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relatin9 to going concern In auditing the financial ststements, we have concluded that the membets of the Corporation's use tsf the going concern basis of accounting in the preparats.on of the financial statements is appropriate. Based on the work we have perfomied. we have not identified any material uncertainties relating lo events or conditions that, individually or collecttvety, may casl significant doubt on the College's ability lo continue as a going concem for a perod of al least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the members of the Corporation wrth respect to going concern are described in the relevant sections of this report. Other infomiation The other information comprises the infomialion included in the annual report other than the financial statement5 and our auditorfs report thereon. The Governors are responsible for the other information contained within the annual feport. Our opinion on the financial statements does not cover the other information and, except to the extent otheThvise expliatty stated in our report, we do not express ar>y fomi of assurance conclusion thereon. 29

WORKING MEN'S COLLEGE CORPORATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORKING MEN'S COLLEGE (continued) for the year ended 31 July 2021 Other infO￿atiOn Icontinuedl Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slatements or our kn￿edge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalements, we are required to determine whether this gives rise lo a material misstatement in the financial 51atemenls themselves. If. based on the work we have performed, we conclude that the￿ is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinlons on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audrt". the infomiation given in the Govemors. ￿pOrt, which is also the Directors. report for the purposes of company law and includes the strategic report for the financial year for which the financial statements are prepared is consistent wrth the financial statements," and the Governors, report, which is also the Directors. report for the purposes of company law and includes the strategic rewrt has been prepared in accordan￿ applicable legal requirements. Matters on which we are requlred to report by exception In the light of the knowledge and understanding of the College and its environment obtained in the course of the audit. we have not identffied material misstatements in the Govemors, report including the strategic report. We have nothing to report in respect of the follow￿ng matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept or retums adequate for our audit have not been received from branches not visited by us-, or the financial statements are not in agreement with the accounting records and relums.. or certain disclosures of Governors, remuneration s>￿￿fied by law are not rnade., or we have not received all the infomation and explanab.ons we require for our audit. Responsibillttes of Governo A$ explained more fully in the statement of responsibil￿eS of the Governors. of the Corporation. the Governors are responsibSe for the preparation of the financ¢al statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors delerrnine io necessary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the College's ability to conb'nue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of 2ccounb.ng ullless the Governors either intend to liquidate the College or to cease operatsons, or have no realistic a￿ernats"¥e but to do so. 30

WORKING MEN'S COLLEGE CORPORATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORKING MEN'S COLLEGE (continued) forthe yearended 31 July 2021 AuditoV$ responslbilllies for the audit of the ffinanclal statements Our objectives are lo obtain reasonable assurance about whether Ihe financial statements as a whole are free from material misstatement, whether due lo fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assuranc£. but is nol a guarantee that an audit conducted in accordance wth ISAS IUK) wll a￿vaYS detect a material misststemenl when it exist5. Misstslemenls can arise from fraud or error and are Considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial ststements. Irregularities, including fraud. are instances of non-copmpliance wth laws and regularbons. We design procedures in line with our reswnsibililRs, OU￿1ned above, to delecl material misststemenls in respect of irreguladities, including fraud. The extent to which Our proCedU￿S are capable of delecling irregularities, including fraud, is detsiled below". Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulth"ons. was as folbws.. The Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to idenb.fy or recognise non-compliance with applicable laws and r￿ulatiOnS., We identified the laws and regulations appli¢2ble to the College through discussions with management and from our knowledge and experience of the sector. We focussed on specffic laws and regulations which we considered may have a direct material effect on the finanaal statements or the operations of the College. including the Further and Higher Education Act 1992, Cornpanie5 Act 2006, ftjnding agreements with the ESFA and associated funding rules, ESFA regulations, data protection legislabon, anti-bribery, safeguarding, employment, health and safety legislation; We assessed the extent of compliants wth the laws and regulations identified al)ove through making enquiries of management and inspecting legal Corresponden￿.. and Identified laws and regulations were communicated within the audrt team regulaty and the team remained alert to instar¢ces of non-coMpl￿nCe throughout the audrL We assessed the sus￿p￿bility of the College'5 financial statements to malefial misstatement, including obtsining an understanding of how fraud might o¢¢ur, by: making enquiries of management as to where they considered there was susceptibilty to fraud, their knowlewdge of actual, suspected and alleged fraud" and," considering the intemal controls in pl￿ to mttigate risks of fraud and non-compliance wth laws and regulations. To address the risk of fraud through management bias and ovrride of controls. we." perfomied analyts.cal procedures to ider¢ty"fy any unusual or unexpected relationships". tested journal entries to tdentsfy unusual transactions.. and assessed whether judgements and assumpb"on5 made in deterynining the accounting eslimales set out In the accounting pO1￿cleS were indicatNe of potential bias. 31

WORKING MEN'S COLLEGE CORPORATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORKING MEN'S COLLEGE (continued) for the year ended 31 July 2021 Auditors responsibilities for the audit of the financial statements (continued) In response lo the risk of irregularities and non-complian￿ vth laws and regulations. we designed procedures which included. but were nol limited lo.. agreeing financial statement disclosures to undetying supporting documentation., reading the minutes of Corporation meetings", enquiring of management as to actual and wtential litsgalon and claims. and reviewing any available correspondence with HMRC and the College's legal advisors laf(hough none was noted as being received by the College). There are inherent limitations in our aud7t pr[￿edureS described above. The more removed that laws and regulations are from financial transacions, the less likely it is that we would become aware of non- ¢ompliance. Auditing standareds also limit the procedures required to idenbfy non-compliance with laws and regulations lo enquiry of the members of the Corporation and other management and the inspection of regulatory and legal correspondence, rf any. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council'5 website at ww.frc.org_uklaudrtorsresponsibililies. This description forms part of Our auditor's report. Use of our Report This report is rnade solety to the Corporation. a5 a b(NJy, in accordance wrth Chapter 3 of Part 16 of the Companies Act 201x5. Our audit work has been undertaken so that we might stale lo the Corporation's members those matters we are wuired to state to them in an auditorfs report and ftir rio other purpose. To the fullest extent permitted by law, we do not accept or assume responsibiltty to anyone other than the College and the Corporation members as a iM)dy, for our audit work, for this report, or for the opinions we have formed. Shachi Blakemore (Senior Ststutory Auditor) for and on behalf of Buzzacott LLP, Statutory Audltor 130 Wood Street London EC2V 6DL 16 December 2021 32

WORKING MEN'S COLLEGE CORPORATION REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULAR1￿ TO THE GOVERNORS OF THE CORPORATION OF WORKING MEN'S COLLEGE AND THE SECRETARY OF STATE FOR EDUCATION ACTING THROUGH THE EDUCATION AND SKILLS FUNDING AGENCY (the ESFA) for the year ended 31 Juty 2021 In accordance with the tems of our engagement letter dated 31 May 2019 and fLtrther to the requirements and conditions of funding in the Education and Skills Funding Agency's Grant Funding Agreements and conlracls, including those of the Greater London Aulhority IGLAI, we have Carried out an engagement lo obtain limtted assurance about whether anything has come to oui attention that would suggest that, in all material respects, the expenditL5re disbursed and income received by the Working Men's College during the period 1 August 2020 to 31 July 2021 has not been applied lo the purposes idenbfied by Padiament and the financial transaction5 do not conform to the authoritie5 which govern them. The framework that has been applied is set OLrt in the Post-16 Audrt Code of Practice (the Code) issued by the ESFA and in any relevant condrlions of funding conceming adult education nob.fied by the GLA or other relevant funder. In line wth this framework. our work has specifically not considered income re￿iVed from the main funding grants generated through the Individualised Learner Record IILRI data ￿turnS, for which the ESFA has other assurance arrangements in place. This report is made solely lo the Corporation of Working Men's College and the ESFA in accordance with the temis of our engagement letter. Our work has been undertaken so that we might state to the Corporation of the Working Men's College and the ESFA those matters we are required lo slate in a report and for no other purpose. To the fullest exlenl pemiitted by law, we do not ac￿p1 or assume responsibilty lo anyone other than the Corporation of Working Men's College and the ESFA, for our work. for this report, or for the conclusion we have formed. Respective Responsibilities of Working Men's College and the Reporting Accountant The Corporation of Wothing Men's College is responsible. under the requirements of the Further and Higher Educab'on Act 1992, subsequent legislation and relate¢Y regulattons and guidance, for ensuring that expenditure disbursed. and income r￿1ved, are applied for the pu¥poses intended by Parliament and the financial transactions conform lo the authorities which govern them. Our responsibilities for this engagement are established in the United Ktngdom by our profession's ethical guidan￿ and are lo obtain limited assurance and feport in accordance with our engagement letter and the requirements of the Code. We ￿port to you whether anything has come to our attenb.on in carying out our work which suggests that in all material respects, expenditure disbursed and income reTrived during the period 1 August 2020 to 31 July 2021 have not been applied to purposes intended by Parliament or that the financial IransactN)ns do not eonfom to the authortlies whic govern them. Approach We conducted our engagement in accordan￿ wrth the Code issued by the ESFA We performed a limited assurance engagement as defined in that framewotk_ The objective of a limrted assurance engagement is to perfom such procedures as lo obtain infomialion and explanations in order lo provide us with sufficient appropriate evidence lo express negative conclusion on ￿￿1allty. 33

WORKING MEN'S COLLEGE CORPORATION REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THE GOVERNORS OF THE CORPORATION OF WORKING MEN'S COLLEGE AND THE SECRETARY OF STATE FOR EDUCATION ACTING THROUGH THE EDUCATION AND SKILLS FUNDING AGENCY (the ESFA) for the year end•d 31 July 2021 A lirnited assurance engagement 15 more limited in scope than a reasonable assurance engagement and consequently does not enable us lo obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly we do not express a positrve opinion. Our engagement includes examination, on a test basis. of evidence relevant to the regularity of the College's income and expenditure. The worf( undertaken to draw our conclusion includes". An assessment of the risk of malenal irregulanty and impropriety across all of the College's activities., Further testing and review of the areas identrfied through the risk assessment including enquiry, idenkn'fication of control processes and examinatr.on of supporting evidence across all areas identified as well as additional verification work where considered necessary,. and Consideration of eviden￿ obtained through the work detailed above and the work completed as part of otjr financial statements audrt in order to support the regularity conclusion. Con¢lu$ion In the course of our work, nothing has ¢ome to our attentson which suggests that. in all material respects, the expenditure disbursed and income received during the period 1 August 2020 10 31 July 2021 has not been applied to pury)ose5 intended by Partiament and the financial transactions do not conform lo the authorities which govern them. Buzzacott LLP Chartered Accountants and Statutory Auditors 130 Wood Street London EC2V 6DL 16 December 2021

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 July 2021 Note 2021 2020 £'ooo £'ooo INCOME Funding boty grants Tuition fees and education contracts Other income Endowment and investment income 4.977 354 188 115 4,765 426 65 117 Total Income 5.634 5.373 EXPENDITURE Cost of generating funds Staff costs Fundamental restructuring costs Other operating expenses Depreciation Interest and other finance costs 3,958 3.813 43 1,146 362 47 1,084 640 43 Total expenditure S.728 5,420 Operallonal defictt before other galns and losses and before tsx 1471 GainsllLosses} on listed investments GainllLossl on investment propety 12 13 937 90 1508} 1901 Surplusl{Deficrt} before tax 933 16451 Taxation 10 Total Comprehensive In¢ome for the Year 933 {64S} Rep￿sented by-. Restricted comprehensive incomellexpenditLtrel Endowment fund incornellexpenditurel Unreslricled comprehensive expenditure 592 374 {331 12181 12021 {2251 933 16451 The statement of CoMprehen￿ve income is in respect of conkn"nuing a￿"￿ti.e5. 35

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CHANGES IN RESERVES for the year ended 31 July 2021 Income and Expenditure reserie £'ooo £'ooo Restricted reserves £YJoo £'ooo Endowmgnts Total roserves £'ooo £'ooo rooo £'ooo Balance at 1 August 2019 8.326 2.956 2,144 13.426 Deficit from the income and expenditure account Transfers betsyeen restricted and income and expenditure reserves (1631 12801 1202} (6451 {621 62 Totsl c¢)mprehensive income for the year {225) 12181 12021 16451 Balancg at 31 July 2020 8.101 2,738 1,942 12,781 Surplus from the income and expenditure account Transfers be￿een restricted and income and expenditure reserves 31 528 374 933 {641 Total cornprehensive income for the year {33} 592 374 933 Balance at 31 July 2021 8,C68 3,330 2.316 13,714 Includ￿ wlhin restricted reserves al the balan￿ Sheet date is an amounl of £205.049 which relates to the assets of the Francis Martin College Charitable Foundation. The Working Men's College Corpor*ion is the sole trustee of the Francis Martin College chanty Ire9iStered chanty number 3128021 and looks after the assets on its behalf. The assets are invested in the Newton Growth and Income Fund f￿ Charities alongside the investments of the Working Men's College Corporation. 36

WORKING MEN'S COLLEGE CORPORATION BALANCE SHEET as at 31 July 2021 Note 2021 £'ooo 2020 £'ooo £'ooo £'ooo NON£URRENT ASSETS Tangible fixed assets Listed Investments Inve51menl Property 11 12 13 9,094 5.799 1,650 8.885 4,862 1.560 16.543 15.307 CURRENT ASSETS Trade and other re￿1Vable$ Cash and cash equivalents 14 180 810 192 760 990 952 CREDITORS: Amoupifs FALUNG DUE WITHIN ONE YEAR 15 11.2851 {1,248) NET CURRENT LIABILITIES {2951 12961 TOTAL ASSETS LESS CURRENT LIABILITIES 16.248 15,011 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 16 {2,5341 {2,2301 TOTAL NET ASSETS 13.714 12,781 ENDOWMENTS Permanent Expendable 18 18 305 2.011 256 1,686 2,316 1.942 RESTRICTED RESERVES Restricted reserves 3,330 2.738 UNRESTRICTED RESERVES Income and expenditure account 8,068 8.101 TOTAL RESERVES 13,714 12,781 The financial statements on pages 35 to 53 were approved and aulhorised for issue by the Corporation on 15 December 2021 and were signed on its behalf on that date by-. Guy Shackle Chaif Helen Hammond Accounts"ng Officer 37

WORKING MEN'S COLLEGE CORPORATION STATEMENT OF CASHFLOWS for the year ended 31 July 2021 Note 2021 £'ooo 2020 £'ooo £'ooo £'ooo Cash inflow from operatlng actlvllies SurplusllDeficitl for the year Ad uslment for non-cash items IGainsllLosses on investments Depreciation Decrease In debtors Decrease in Creditors due wthin one year Release of capitsl grants 933 16451 {1.0271 640 12 {301 11281 598 362 194 12241 1631 14 15 18 Ad uslments for investin or financin Investment income receivable Interest receivable Interest payable activiti.es 11141 {11 43 11131 141 47 Net cashflow from operating activities 328 152 Ca$hflows from investing activities Income from investments and endowments Other interest received Payments lo acquire tangible fixed assets Receipts of new capital grants 113 18491 585 11,6751 11491 11,5581 Cashflows from financing activities Interest payable Capitsl element of bank loan repaymellts {431 {861 1471 1811 17 (129) 11281 IncreasellDecreasel in cash and cash equivalents In the year 60 11.5341 Cash and cash equivalents at 1 August 760 2,294 Cash and cash equivalents at 31 Juty 810 760 In this statement, figures in brackets refer lo cash ouffiow5 and all other figures are cash inflows lo the College. 38

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 STATEMENT OF ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES The following accountin9 policies have been applied consistenly in dealing with items which are considered material in relation to the financial Statements. Basis of preparation These financial statements have been prepared in accordance with the Statement of Recommended Practice". Accounting for Further and Higher Educab"on 2015 (the SORPI, the College Accounts Direction for 2020-21 and in accordance with Financial Reporting Standard 102". 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" IFRS1021. The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS102. The preparation of financial ststements in Complian￿ wth FRS102 requires the use of certain critical accounting estimates. 11 also requires management to exercise judgemeftl in applying the College's accounting policies. Without limib.ng the informab.on given. the financial statements meet the accounting and disclosure requirements of the Companies Act and accounting standards issued or adopted by the Accounting Standards Board so far as those requirements are appropriate. In order to present a true and fair view, the College has not followed the provisions of the Companies Act 2006 regarding the formal of the financial ststemenls where these are not appropriate to the College's activib"es. Basis of accounting The financial statements are prepared in accordance ￿ the historical cost convenb'on modified by the revaluation of listed investments and the investment proFerty. Going concern The activities of the College, together wtth the factors likety to affect its future development and performance are set out in the Members. Report including the Strategic Report. The financial position of the College, its cashflow. liquidity and borrowngs are described in the financial statements and accompanying notes. The Covid-19 pandemic has impacted the College finances through loss of fee income and other non- grant funded acts"vity, resulb.ng in the deficits rep)rted for 2019120 and 2020121. The balance sheet also shows nel current liabiliites at 31 July 2021 atthough these ￿Vert to net current assets when non-cash ilems in creditors, such as deferred ￿pital grants, are eliminated. The budget for 2021122 is cash genewtive and the College cashflow forecasts demonstrate Ihal il has sufficient cash resources, including an adequate buffer for unforeseen variances, to meet ils liabilitr.es as they fall due. In addition, the listed invesknents could be liquidated at short notice rf necessary. The College currently has £719,000 of loans outstanding bankers on tenns negotiated in 2007. The terms of the exisb.ng agreement are for up to another 7 years. The College's forecasts and financial projections indicate that it will be able lo operate within this existing facility and covenants for the foreseeable future. Accordingly the College has a reasonable expectatron that it has adequate resources lo continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparats.on of ils financial statements. 39

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 STATEMENT OF ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES Icontinuedl Re¢ognition of income Turtion fee income is recognised in the period for which r( is received and includes all fees chargeable lo students. Income from grants. contracts and other services rendered is included to the extent of the completion of the contract or service concemed. All income from short-tem deposits is credited to the income and expenditure account in the period in which it is eamed. Funding body recurrent grants are recognised in line vAth best estimates for the period of what is receivable and depend on the particular income stream involved. Any under achievement for the AdLJIt Education Budget is adjusted for and reflected in the level of recurrent grant recognised In the income and expenditure account. The final grant income is nomially detemined wtth the conclusion of the year end reconciliation process wtth the funding body al the end of November following the year end and the results of any funding audrts. 1&18 learner-responsive funding is not nomially subject to reconciliation and is therefore not subjecl to contract adjustsnents. Where part of a non-recurrent govemment grant from the ESFA or other body is deferred and amortised in line with depreciabon over the life of the associated assets funded. the defewed element is recognised as deferred income within creditors and allocated betsveen creditors due within one year and creditors due after more than one year as appropriate. Government capital grants are capitalised, held as deferred income and recognised in income over the expected usefvl Itfe of the asset, under the accrual rnodel as permrtted by FRS102. Other, non- governmental, capital grants are recognised in income when the College is entslled to the funds. subject to any performance related condibons being met. Income received in advance of perfom)ance related conditions being rnet is recognised as deferred incorne v￿thin creditors on the Balance Sheet and released to income as condrtions are met. Post4mployment Beneffts Post-employment benefits to employees of the College are prOV￿ed by the Teachers, Pension Scheme ITPSI and a group personal pension scheme. Contributions to the TPS, wh￿h is a final salary scheme. are calculated so as to Spread the cosl of pensions over employees, working lives with the College in such a way that the pension cost is a subslanlially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of quinquennial valuations using a prospective benefit rnethod. As slated in Note 19, the TPS is a mulb"employer Scheme and there 15 insufficient infomiation available to use defined benefrt accounts'ng. The TPS is therefore treated as a defined conlributron plan and the contributions recognised a5 an expense in the comprehensive income statement in the periods during which services are rendered by employees_ Contributions to the group personal pension scheme, which is not a final salary scheme, are a fixed percentage of salary and are charged to the statement of compreherTrsive income on an accruals basis. 40

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 Juty 2021 STATEMENT OF ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES (continued) Endowmgnts and reserves Pernanent endowments comprise monies which musl be held indefinitely as capital and expendable endowments represent capital monies which can be drawn upon if required. Income therefrom is credited lo the stslement of comprehensive income and applied for genetal purposes unless under the terms of the endowment such income must be used for spectfic purposes ir¢ which case il is credited to restricted reserves. Restricted reserves comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject lo donor imposed condibons. At the balance sheet date. £2.903m of these related lo funds connected with the College's former plawng fields, including the sale proceed5. A further £205,000 represents the funds of the Francis Martin College Pfeiffer Twsl scheme and the remaining £222.000 relates tr) equipment reserves. The College is reviewng the ongoing appropriateness of the restrictsons and assets allocated to the funds. Tangible flxed assets Land and buildings and improvements to buildings are stated in the balan￿ sheet at cost. Individual items of equipment costing g￿ater than £500 and wrth an expected useful lrfe ex￿edIng one year are capitalised at cost. Freehold land is nol depreciated as tt is considered to have an infinite useful Tangible fixed assets are depreck8ted over their useful economic lives. on a straight line basis, as ft)Ilows'. Freehold buildings 2% per year for new buildings, per year for existing building5 4%- 10% per year 25% per year 33'13ih> per year 33,130/0 per year 16 13% per year Building improvements Technical equipment Computer hardware Computer soffvlare Furniture, fixtures and fittings Assets under construction are accounted for al cost. based on the value of architects, certificates and other direct costs, incurred lo the balance sheet date. They are not depreciated until they are brought into use. Where equipment is acquired wrth the aid of specthc grants. it is capitalised and depreciated in accordance with the above policy, with the related grant being cred¥ted to a deferred capital grant account and released to the income and expenditure account over the expected useful economic life of the related equipment. Where significant expenditure is incurred on tangible fixed assets it is charged to the income and expenditure account in the peri(xl it Is incurred. unles5 It meets one of the following criteria. in which case rt is capitalised and depreciated on the relevant basis.. Market value of the fixed asset has subsequenty improved; Asset capacty increases" Subslanlial improvement in the qualty of output or reduth.on in operats.ng costs.. or Significant extension of the asseys life beyond that conferr&J by repairs and maintenance. 41

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the ygar ended 31 July 2021 STATEMENT OF ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES l¢ontinued) Tangible flxed assets Icontlnuedl A review for impairment of a fixed asset is carried out rf events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls betsV￿n the carrying v81ue of fixed assets and their recoverable amounts are recognised as impaitmenls. Impaimient losses are recognised in the statement of comprehensive income. Lea$ed assets Costs in respect of operating leases are charged to statement of comprehensive income on a straight- line basis over the lease term. Cash and Cash Equivalents Cash includes cash in hand, depostts repayable on demand and overdrafts. Deposits are repayable on demand if they are in pracliee available within 24 hours without penalty. Cash equivalents are short tem, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. An inveslrnent qualifies as a cash equivalent when il has a maturity of 3 months or less from the date of acquisition. Financial Liabllities and Equity Financial liabilities and equity are cla55ffied according to the substance of the financial instrument's conlraclual obligab"ons, rather than the financial instrument's legal fomi. All loans, investments and short tem) deposits held by the College are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the Iransacb'on price less any transaction costs (historical costl. FRS 102 requires that basic financial instruments are subsequently measured al amottisied cost. However the College has calculated that the difference be￿een the historical cost and amortised cost basis is nol material and so these financial instruments are staled on the balance sheet at historical cost. Loans and investments that are payable or receivable within one year are not discounted. Investrngnts including endowment assets Investments are included on the balance sheet at their market value, as provided by the investment manager, at the end of the financial ￿riod. Realised and unrealised gains lor losses) are credited lor debited) lo the stslement of total gains and losses in the year in which they arise. Investment Property The investment pro￿rty is included at estimated market value at the balance sheet date. Maintenance of premises The cost of routine corrective maintenance is charged to the income and expendrture account in the period il is incurred. Taxation The College is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore rt meets the definition of a charitable company for UK ￿rpOration tsx purposes. Accordingly, the College is potentially exempt from taxation in respect of injcome or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent Ihat such income or gains are applied exclusively to charitable purposes. 42

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 STATEMENT OF ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES Icontinuedl Taxallon Icontlnued} The College receives no similar exempts'on in respect of Value Added Tax. For this reason the College is generally unable to recover input VAT it incurs on goods and services purchased. Non-pay expenditure is therefore shown inclusive of VAT with any partial recovery netted off against these figures. Provlslons and Cont5ngent Llabllllies Provisions are recognised when the College has a present legal or construcb.ve obligation as a result of a past event, it 15 probable that a transfer of economic benefit will ￿ required to settle the obligabon and a reliable estimate can be made of the amount of the obligation. Where the effeel of the time value of rnoney 15 rnalerial, the amount expected to be required to settle the obligation is recognised at present value using a pre-discount rate. The unwinding of the discount is recognised a5 a finance cost in the statement of comprehensive income in the period it arises. A contingent liability arises from a past event that gives the College a possible obligation whose existence will only be confirmed by the occuirence or othe￿iS& of uncertain future events not wholly within the control of the College. Conlingenl liabilities also arise in circumstances where a provision would olhewse be nTrade but efther rt is not probable that an outhow of resourc5 wll be required or the amount of the obligatson cannot be measured reliably. Conlingenl liabilities are not recognised in the balance sheet but are disclosed in the notes to the accounts. Agency Arrangements The College acts 35 an agent in the collection and payment ol certain discretionary support funds from the ESFA or Department for Educab"on. Related payments received from the funding bodies and subsequent disbursements to leamers are excluded from the incorne and expenditure of the College where the College is exposed to minimum risk or enjoys minimal economic benefit related to the Iransaclion. Judgements in Applying Accountlng Pollcies and Key Sources of Estimation Uncertainty In preparing these financial stslements, management has made the following judgements". Determined whether leases entered intr) by Ihe College etther as les50r or lessee are operating or finan￿ leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee, on a lease by lease basis. Delemined whetr*er the￿ are indicator5 of impairment of the College'5 tangible assets. Factors taken into considerat￿n in reaching sueh a decision indude the economic viability and expected future financial performance of the asset and. where it is a component of a larger cash-generating unit. the viabiity and expected future perforrnan￿ of that unit. Other key sources of estimation uncertainty Tangible fixed a5set5 Tangible fixed assets, other than invesbnent properties, are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market condrtions. the remaining life of an asset and projected disposal values. 43

WORKING MEN'S COLLEGE CORPORATION

NOTES TO THE ACCOUNTS

for the year ended 31 July 2021

1 STATEMENT OF ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES (continued)

Judgements in Applying Accounting Policies and Key Sources of Estimation Uncertainty (continued)

l Covid-19

Management has estimated the impact of the Covid19 pandemic on the College’s finances for the purposes of preparing budgets and cash flow forecasts for the years ending 31 July 2022 and 2023. The full impact following the emergence of the coronavirus pandemic is still unknown. It is therefore not currently possibly to evaluate all the potential implications for the College’s activities, beneficiaries, funders, suppliers and the wider economy.

2 FUNDING COUNCIL GRANTS

Recurrent grants Education and Skills Funding Agency - adult Greater London Authority - adult Education and Skills Funding Agency - 16-18 Specific grants Teachers' Pension Support Grant Other specific grants Release of government capital grants 3 TUITION FEES AND EDUCATION CONTRACTS Adult education fees Fees for FE loan supported courses Total tuition fees Education contracts 4 OTHER INCOME Government Job Retention Scheme Non-funding body grants Property rental income Other income 5 ENDOWMENT AND INVESTMENT INCOME Income from restricted asset investments Income from endowment and unrestricted investments Other interest receivable	2021 £'000 53 4,403 187 150 56 128 4,977 2021 £'000 310 38 348 6 354 2021 £'000 90 25 56 17 188 2021 £'000 64 50 1 115	2020 £'000 45 4,358 164 132 - 66 4,765 2020 £'000 362 62 424 2 426 2020 £'000 - - 44 21 65 2020 £'000 62 51 4 117 44

WORKING MEN'S COLLEGE CORPORATION

NOTES TO THE ACCOUNTS

for the year ended 31 July 2021

6 STAFF COSTS

The average number of persons (including key management personnel) employed by the College during the year, described as headcount (no.) and as full-time equivalents (f.t.e) was:

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|||||| |---|---|---|---|---| |2021|2021|2020|2020| |No.|f.t.e.|No.|f.t.e.| |Teaching staff|122|54|130|53| |Non-teaching staff|57|44|47|40| |179|98|177|93| |The total staff costs for the above persons were:| |2021|2020| |£'000|£'000| |Wages and salaries|3,149|3,033| |Social security costs|282|249| |Other pension costs (note 19)|478|459| |Payroll sub total|3,909|3,741| |Contracted out staffing services|49|72| |3,958|3,813| |Fundamental restructuring costs -|contractual|-|36| |non-contractual|-|7| |Total staff costs|3,958|3,856|

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Fundamental Restructuring Costs

The 2020 staff restructuring costs relate to the implementation of the College's continual reorganisation programme which ensures the College staffing structure remains fit for purpose, responsive to changes in funding priorities and achieves efficiencies necessary for continued financial viability. The restructuring costs were approved by Governors.

7 EMOLUMENTS OF KEY MANAGEMENT PERSONNEL AND OTHER HIGHER PAID STAFF

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College and are represented by the Executive Management Group which comprises the 8 posts of Principal, Deputy Principal, Vice Principal, 2 Directors of Learning, Director of Learner Services, Head of MIS and HR Manager.

The post of MIS Director was made redundant in August 2019 and the post of Assistant Principal was made redundant at the end of April 2019. Staff costs include compensation paid for loss of office for these posts in the current and prior year respectively.

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|||| |---|---|---| |2021|2020| |No.|No.| |The number of key management personnel including| |the Accounting Officer was:|8|7|

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Names of the key management personnel and their periods of employment are set out on page 2.

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WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 EMOLUMENTS OF KEY MANAGEMENT PERSON14EL AND OTHER HIGHER PAID STAFF continu9d The number of key management personnel and other staff who receive(l annual emoluments, excluding pension contributions and employers national insLArance contn"butions, but induding benefits in kind, in the followng ranges was". mana ement rsonnel Other staff 2021 No. 2020 No. 2021 No. 2020 No. £ 50,001 10 £ 55,tKIO per annum £ 55,001 10 £ 60.wo per annum £ 60,001 10 £ 65,￿0 per annum £ 70.001 10 £ 75.001 per annum £ 75,001 10 £ 80,000 per annum £ 80.001 to £ 85.000 per annum £110,001 to £ 115,￿0 per annum nla nla nla nla Key management personnel compensation is made up as follows". 2021 £'ooo 2020 £'ooo Salaries Benefits-ir￿klnd 569 484 569 484 Pension contributions 90 83 Total key management pet50nnel compensation 659 567 The￿ were no amounts due to key management personnel that were waived in the year, nor any salary sacrrfice arrangements in ￿ace. The above compensats.on includes amounts payable to the Principal, who is the Accounting Officer and who was also the highest paid member of staff, ofr 2021 £'ooo 2020 £'ooo Salaries BenefitS-in-kirKI 112 112 112 112 Pension contributions 27 26 The pension contributions for the Accounting Officer and three other key management personnel are in respect of emplgyerfs contributions lo the Teachers. Pension Scheme and for the other four 12020 three) key management personnel are in respect of the College's Group Personal Pension Scheme. The employer contribubons are paid at the same rate as for other employees and the pension enlitlemenls accrue in the scheme on the same basis as for other employees. 46

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 EMOLUMENTS OF KEY MANAGEMENT PERSONNEL contlnued The Governing Body adopted Aoc's Senior Staff Remunerati¢￿ Code in March 2019 and will assess pay in line vthh its principles in fuiure. The remuneration package of Key Management Personnel, induding the Principal, is subject lo annual review by the Remuneration Committee of the goveming body who use benchrnarking and other appropriate information to help to provide objective guidance. The Principal reports to the Chair of CorrKJration stho undertakes an annual ￿￿eW of her performance against the College's overall objethves using both qualitab.ve and quantitative meaSU￿S of performance. Relationship of Principal's pay and remuneration expressed as a multlple 2021 £'ooo 2020 £'ooo Principal's basic salary as a mU￿PIe of the median of all staff Principal's totsl remuneration as a muth'ple of the median of all staff Compensation for 105s of office paid to former Key Management Personnel 2021 2020 Compensatron paid to one former post holder 6,825 The severance payment was approved by College Go¥emors. The members of the Corporation, othei than Ihe Accounting Officer and slaff govemors, Llid not receive any payment from the College, other than reimbufsemenl of travel and subsistence expenses incurred in the course of their dLrtie5. OTHER OPERATING EXPENSES 2021 £'ooo 2020 £'ooo Teaching costs Non-teaching costs Premises costs 85 499 500 106 601 439 1,084 1.146 Included in the total of other operating expenses are: 2021 2020 rooo Auditors, ￿mUneration". Financial Statements and Regularity audit Intemal audit Other services provided by the Financial Statements Auditor for Teachers, Pension audtt Hire of assets under operating leases 20 16 47

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 INTEREST AND OTHER FINANCE COSTS 2021 £'ooo 2020 £'ooo Interest payable on bank loans repayable wholly or partly in more than five years 43 47 43 47 10 TAXATION The College has charitable status for taxation purposes and the members of the Corporation consider that 811 the activities of the College during the currenl and preceding years fell wtthin qualifying ¢alegories and no Corporation Tax arises. Accordingly no provision for corporation tsx is made in the accounts in either year. 11 TANG18LE FIXED ASSETS Freehold Building Computsr Land and Improve- Equipment Buildings ments FumItU￿ Assets in Fixtures Course of and Fittings'.onstructJon £'ooo £'ooo Total £'ooo £'ooo Cost or valuation Al 1 August 2020 Additions Transfers Disposals 6.711 1.294 430 3,020 1.203 266 115 535 25 3,159 128 {3,1351 12,902 849 At 31 July 2021 6,711 4,744 1,584 560 152 13.751 Depreciation Al 1 August 2020 Charge for the year Disposals 1,671 131 814 265 1,076 456 38 4.017 640 At 31 July 2021 1.802 1.079 1.282 4,657 Net book value Al 31 July 2021 4,909 3,665 302 152 9.094 Al 31 July 2020 480 127 79 3,159 8,885 Assets in the course of ¢￿strUth"On at 31 July 2020 represented £3.04m for the replacement of the heating system and instsllalion of a mixed rnixle venlilats.on system in the College's Crowndale Road site and £115k related to the new HRJPayroll system. Practtcal compleb.on was achieved on the heating and ventilation system in autumn 2020 and the asset transferre(I to Building Improvements The HRlpayroll system implementstion was complete(1 and went "live" in November 2020 and the as5el was transferred to Computer Equipment. During spllng and summer 2021. the College's IT infrastruture undeTwenl a major upgrade and the value of works lo the balance sheet date afe I￿￿ded in assets in the course of construction.. the works were completed in September 2021. 48

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 12 LISTED INVESTMENTS Unrestrieted Restricted Endowment Assets Assets Assets £'OOD £'ooo Total £'ooo Market value of listed investrnents Al 1 August 2020 Depreciation in value of investsnents 183 129) 2.737 592 1.942 374 4,862 937 Total portfolio value at 31 July 2021 3,329 2,316 5,799 Cost of listed investments at 31 July 2021 138 2.058 1.480 3,656 Total nel unrealised gains at 31 July 2021 included above 16 1.271 856 2,143 Anatysis of total portlolio value Pooled investment vehicles 5,799 Al 31 July 2021, listed investments included the fdlwNJ holding deeme(I material when compared with the overall portfolio valuab.on as al that date.. Market value £'ooo %of portfolio value 100% Newton Growth and Income Fund for charities 5.799 13 INVESTMENT PROPERTY 2021 £'ooo 2020 £'ooo Al 1 August 2020 1.560 1,650 Revaluation of investment property 90 1901 Al 31 July 2021 1,650 1,560 The College the freehold of the property immediately adjacent to the main college building in Crowndale Road. The building is nol used for the delivery of education and is let out as re&dential accommodation on 8 commeraal basis. The net revenue generated is applied to Ihe charitable purposes of the College. 49

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year endgd 31 July 2021 14 TRADE AND OTHER RECEIVABLES 2021 £'ooo 2020 £'ooo Amounts falllng due wlthln ong year Tralle receivables Prepayments and accrued income Other debtors 31 141 50 141 180 192 15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 £'ooo 2020 £'ooo Bank loans Inole 171 Payments received in advan Trade payables Other taxation and social security Accruals and deferred income Deferred income- government capttal grants Amounts owed to funding bodies Other creditors 91 114 325 74 197 125 272 87 71 278 77 232 63 374 67 1,285 1,248 16 CREDITORS: AMOUNTS FALUNG DUE A￿ER ONE YEAR 2021 £'ooo 2020 £'ooo Bank loans Inole 171 Deferred income- govemment capital grants 628 1,906 719 1.511 2,534 2,230 17 MATURITY OF DEBT 2021 £'ooo 2020 £'ooo Bank loans are repayable as follows- In one year or less Be￿n one and tsyo years Befften and five years In five years or more 91 96 320 212 86 91 303 325 719 805 The College look out an unsecure(J loan in 2007 to support phase 1 of the Crowndale Road building furbishment. The loan is at a fixed interest rate of 5.485% and repayable by equal quartedy instalments from 3 December 2007 to 1 December 2027. A second unsectjred loan was taken oth in 2011 to support the second phase of the Crownclale Road building furbishmenl. The loan is at a fixed interest rate of 5.73% and repayabée ty equal quarterfy instalments from 14 November 2011 to 14 August 2028. 50

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the ygar gnded 31 July 2021 18 ENDOWMENTS Pem)anent Expendable £'ooo £'ooo Total £'ooo Al 1 August 2020 Appreciation of endowTnent asset investments 256 49 1,686 325 1,942 374 At 31 July 2021 305 2,011 2.316 Representing.. Prize funds Library funds other funds 101 159 101 159 2,055 2,011 304 2,011 2,315 Pernianent Expendable £'ooo £'ooo Total £'ooo Al 1 August 2019 Appreciation of endowment asset investments 282 1261 1.862 1176} 2,144 12021 Al 31 July 2020 256 1.686 1,942 Represents'ng.. Prize funds Library fvnds Other ftjnds 85 134 37 85 1.686 1.723 256 1,686 1,942 19 DEFINED BENEFITOBUGATIONS Most of the College's employees are members of one of the tsvo principal post employment benefit plans.. the Teachers, Pension Scheme England and Wales ITPSI for academic and related staff and a College Group Personal Pension Stheme for non-leaching stsff which is managed by Aviva. The TPS is a mult1-employer defined benefit scheme and the group personal pension scheme is a defined contribub.on scheme. No defined benefit pension liability arFses as a result of contributs'ons lo the Group Personal Pension Scheme. The TPS pension costs are assessed in accordance %wth the ad￿￿ of independent qualifie(S actuaries. The lalesl fomial actuarial valuation of the TPS was 31 March 2019 bul the outcome is not yet published. The total pension cost for the yeaf W8S- 2021 £'ooo 2020 £'ooo Teachers. pension scheme- contiibutions paid Group personal pension scheme - contributions paid 415 63 402 57 Total pension cost for the year wthin S&￿ costs {note 6) 478 459 Contributions amounting lo £ 53,00012020 - £ 54.0001 for the TPS and £ 8,00012020- £ 7.000 I for the group personal pension scheme We￿ payable to the scheme at 31 July and are included in creditors. The liabilities were paid to the relevant schemes in the new financial year. 51

WORKING MEN'S COLLEGE CORPORATION NOTES TO THE ACCOUNTS for the year ended 31 July 2021 19 DEFINED BENEFIT OBLIGATIONS contlnued Teachers. P•n$lon S¢hemg The Teachers, Pensron Scheme ITPS} is a ststutory. contn"butory, defined benefit scheme, governed by the Teachers. Pension Scheme Regulations 2014. These regulations apply to teachers in schools. colleges and other educational establishments. Membership is automati¢ lor teachefs and lecturers at eligible institutions. Teachers and lecturers are able to opt out of the TPS. The TPS is an unfunded scheme and members contn"bLrte on a 'pay as you go,. basis - these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. Retsremenl ar￿ other pension benefits a￿ paid by public funds provided by Parliament. Under the definitions set out in Financial Reporting Stsndard IFRSI 102128.111, the TPS is a multi-employer pension plan. The College is unable to identrfy ils Sha￿ of the underfying assets and liabilities of the plan. Accordingly, the College has taken advantage of the exemption in FRS 102 and has accounted for ils contributions to the scheme as if it were a define&contribtrtion plan. The Co15ege has sel out above the informat'on available on the ￿heme and the implications for the College in terms of the anticipated Contribution rates. The actuarial vauation of the TPS is carried out in line wulations made under the Public Service Pension Act 2013. Valuations ¢redit the teachers. pension account wth a real rate of retum, assuming funds are invested in nob.onal investments that produce that real rale of retum. The latest actuarial review of the TPS was carried out as at 31 March 2016. The v8lu8tion report was published by the Department for Educatron {the Department) in April 2019. The valuab.on reported total scheme liabilities (pensions cul￿ntlY in paymenl and the estr"mated costs of future benefits) for service lo the effective dale of £218 billion and notional assets lestimated fulure conributions together wth the notional investments held at valuation datel of £198 billion. giving a notional past service deficit of £22 billion. As a result of the valuation, new employer conth"button rates were sel al 23 68% of pensionable pay from September 2019 onwards compared to 16.48% during 2018119. The DfE has agreed lo pay a teacher pension employer contribution grant lo wier the addibonal costs during the 2020121 academic year and up to July 2022_ A full copy of the valuats.on report arbd supporbng documentation CAn be found on the Teachers, Pension Scheme website. The pension costs paid lo TPS in the year amounted to £415,0(KS {2020.' £402.000) FINANCIAL COMMrrMENTS 2021 £'ooo 2020 £'ooo Capltal ¢ommltments Contracted for bLrt not provided at 31 Juty 214 48 Authorised but not yet contracted for * 31 July 52

WORKING MEN'S COLLEGE CORPORATION

NOTES TO THE ACCOUNTS

for the year ended 31 July 2021

21 EVENTS AFTER THE REPORTING PERIOD

There are no events after the reporting period which would have a material impact on the financial statements and require either adjustment or disclosure.

22 RELATED PARTY TRANSACTIONS

Due to the nature of the College's operations and the composition of the Corporation, being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the Corporation may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the College's financial regulations and normal procurement procedures. No transactions were identified during the year which should be disclosed.

The total expenses paid to or on behalf of the Corporation members during the year were £ nil (2020 - £388 relating to two governors). This represents travel and subsistence expenses and other out of pocket expenses incurred in attending Governor meetings or Governor training events.

No Governor has received any remuneration or waived payments from the College during the current or previous year.

23 DIRECTORS' AND OFFICERS' LIABILITY INSURANCE

The College has purchased directors' and officers' liability insurance. The insurance premium paid by the College for the year ended 31 July 2021 was £3,492 (2020 - £2,775) and provides cover of up to a maximum of £2 million for all claims during a year.

24 MEMBERS' LIABILITY

Every member of the Corporation undertakes to contribute to the assets of the College in the event of it being wound up while he/she is a member such amount as may be required, but not exceeding five pence.

25 AMOUNTS DISBURSED AS AGENT

Unspent balance at 1 August Repaid to EFSA in year Loans bursary fund Disbursed to Students Area uplift re Adult Learning Loans Balance unspent at 31 July included in creditors	2021 £'000 48 - 12 60 - (7) (7) 53	2020 £'000 97 (51) 24 70 (12) (10) (22) 48

Funding body grants are available solely for students. In the majority of instances, the College acts only as a paying agent. In these circumstances, the grants and related disbursements are therefore excluded from the Statement of Comprehensive Income.

53