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2023-07-31-accounts

Working Men’s College Corporation

Annual Report and Financial Statements

31 July 2023

Company registration number: 8894 Charity registration number: 312803

Contents

Reports

Reference and administrative information 1
Members’ report 3
Statement of corporate governance
and internal control 23
Statement on regularity, propriety and
compliance 33
Statement of governors’ responsibilities 34
Independent auditor’s report on the
financial statements 36
Reporting Accountant’s Assurance Report on Reporting Accountant’s Assurance Report on
Regularity 41
Financial statements
Statement of comprehensive income 43
Balance sheet 44
Statement of changes in reserves 45
Statement of cash flows 46
Principal accounting policies 47
Notes to the financial statements 55

Working Men’s College Corporation

Reference and administrative information

Governors Beatrice Aguilar (from 1 November 2022 to 30 June
2023)
Amanda Blinkhorn
Barbara Bryne (to 31 March 2023)
Susan Corby
Hoan Dien Thi (from 1 November 2022 to 30 June 2023)
Fran Fahey
Dipa Ganguli (from 1 September 2023)
Neil Garner
Helen Hammond (to 30 September 2022)
June Jarrett
Samata Khatoon
Monika Kinasiewicz
Alexi Marmot
Tom Robins
Maria Rosenthal (from 1 October 2022 to 31 August
2023)
Alice Rubbra
Guy Shackle (Chair)
Jon Sibson
Max Silver
Paul Smith (to 31 July 2023)
Registered address 44 Crowndale Road
London
NW1 1TR
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Internal auditor Scrutton Bland
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
Investment Managers BNY Mellon Limited
Mellon Financial Centre
160 Queen Victoria Street
London
EC4V 4LA

Working Men’s College Corporation 1

Reference and administrative information

Bankers Lloyds Bank
4thFloor, 25 Gresham Street
London
EC2V 7HN
Barclays Bank
Level 27, 1 Churchill Place
London
E14 5HP
Key Management Personnel Dipa Ganguli OBE - Principal and CEO, Accounting
Officer (from 1 September 2023)
Maria Rosenthal – Interim Principal and CEO,
Accounting Officer (from 1 October 2022 to 31 August
2023), Deputy Principal (to 30 September 2022)
Helen Hammond – Principal and CEO, Accounting
Officer (to 30 September 2023)
Diana Teesdale – Deputy Principal (from 2 June 2023),
Interim Deputy Principal (from 1 October 2022 to 1 June
2023) Director of Learning (to 30 September 2022)
Richard Dearing – Interim Vice Principal (from 2 May
2023)
Imelda Galvin – Interim Vice Principal (from 26 October
2022 to 1 May 2023)
Martin Jones – Vice Principal (to 7 November 2022)
Lisa Marklew – Director of Learning
Ziya Moustafa – Director of Learning (from 1 November
2022)
Caroline Poole – Director of Learner Services
Claudia Forbes – Head of MIS
Julie Paterson – Head of HR
David Barnes – Head of Network and IT
Tracey Gleeson – Head of Facilities (from 5 June 2023)
Andy Christophi – Head of Facilities (to 31 May 2023)

Working Men’s College Corporation 2

Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES

The members of the Governing Body present their report and the audited financial statements for Working Men’s College Corporation for the year ended 31 July 2023.

Legal status

The Working Men’s College Corporation is a ‘Specialist Designated Institution’ (SDI), now known as an Institute of Adult Learning (IAL), under the Further and Higher Education Act 1992. It is also a company limited by guarantee not having a share capital and it is a registered charity. The College is subject to the legal framework governing the Further Education sector, including the rules set from time to time by the Government departments and agencies with responsibility for the sector. During 2022/23 these were the Department for Education (DfE) and the Education and Skills Funding Agency (ESFA) together with the Greater London Authority (GLA) who have provided funding to the College from 1 August 2019 under devolved funding arrangements. The College is also subject to the requirements of the Companies Act and the Charities Act.

The College’s financial affairs are governed 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 association.

The College also meets the definition 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 respect of income or capital gains covered by the relevant legislation, provided that they are applied to exclusively charitable purposes.

Mission, Strategic Plan and Values

The College’s mission, vision and values were reviewed and agreed by the Governing Body in July 2023:

Mission

The Corporation keeps the mission statement and strategic objectives under regular review. The mission statement was updated in 2015/16 and reviewed in 2019/20 without further amendment. The current mission statement adopted is:

Strategic Plan

College Governors and managers developed a new 3-year strategic plan during 2018/19 which was approved by the Corporation in July 2019. The plan covers the period from 2019 to 2022 but due to an interim Principal being in place for one year, the plan was extended to cover 2022-23 with an updated action plan for the year. The strategic objectives adopted are set out below:

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Strategic Plan (continued)

Excellence for all. We will:

Effective and sustainable. We will:

Working Together. We will:

Values

Working Men’s College is learner Centred: we strive to enable all learners to achieve their potential and to enjoy their learning with us. We listen to our learners and are adaptable, flexible, and responsive to learner needs.

Working Men’s College is committed to Continuous Improvement and Excellence: we constantly review what we do and how it could be improved to ensure that we get better.

Working Men’s College is Respectful: we promote equality and celebrate diversity. We respect differences and treat people as individuals. We are understanding of each other's values, cultures and beliefs and observe these in our interactions with each other.

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Values (continued)

Working Men’s College is Collaborative: we work to meet our common goals, valuing other's contribution. We share and celebrate the talent, skills, knowledge and experience of every person at WMC.

Public benefit

The College is a registered charity and following the machinery of Government changes in July 2016, is regulated by the Secretary of State for Education as Principal Regulator for all Further Education Corporations in England. The Governors of the Corporation, who are trustees of the charity, are disclosed on page 1. In setting and reviewing the College’s strategic objectives, the Corporation has had due regard for the Charity Commission’s guidance on public benefit and particularly upon its supplementary guidance on the advancement of education.

In delivering its mission, the College provides the following identifiable public benefits through the advancement of education:

Further information and examples of the delivery of public benefit are covered throughout the remainder of the Members’ Report including the Strategic Report.

Implementation of strategic plan

The strategic plan is designed with consultation with key stakeholders, staff and partners. IT is ratified by the Board of Governors. The strategic plan has a college action plan which details the targets and objectives that the college will work towards to achieve the strategic aims. The strategic plan also has an associated risk register, which is reviewed at regular intervals by the Board of Governors.

Financial objectives

The College’s general financial objectives were revised in 2017 and reviewed regularly but have not changed since then. The existing objectives approved by Governors in June 2017 are to maintain:

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Financial objectives (continued)

In 2022/23, 3 of the 6 financial objectives were met.

Financial objectives(continued)
In 2022/23, 3 of the 6 financial objectives were met.
Objective 2022/23 Met
Cash days of not less than 40 nor greater than 65 68 Not Met
An adjusted current ratio of 2.0:1 – 2.5:1 2.5:1 Met
EBITDA using ESFA education specific definition, of between 6.7% Not Met
4% and 6% of income
Borrowing as a % of non-endowment reserves of less than 15% 4.9% Met
Staff costs (excluding restructuring costs) between 64% and 69.4% Not Met
68% of income
Financial health of “Good” with a score of at least 200 points Met

After two years of restricted activity because of Covid-19, the College in 2022/23 has had a year where learner numbers have returned to or exceeded pre-Covid 2018/19 levels. EBITDA has recovered but staff costs have increased to 69.4% as a proportion of income, which is above the sector benchmark. The indicative financial health grading is "Good" and improves from the 2021/22 assessment. Governors and managers remain confident that the underlying position and performance of the College remains robust and fully expect to return to meeting all its objectives. If the budget for 2023/24 is achieved, the College will maintain this financial health grade.

Investment Fund Objectives

The College’s investment fund financial objectives were revised in February 2014 and are as follows:

At 31 July 2023, all investments were held with Newton (BNY Mellon).

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Investment Fund Objectives (continued)

At 1 August 2022, the investment portfolio was valued at £5.781 million. The investment income received during the year was £128,000, which equates to 2.2% of the opening valuation. The portfolio value increased slightly to £5.907 million by 31 July 2023 representing a small improvement of just over 1%. These performances reflect a small bounce back following the beginning of the global economic downturn in 2022 because of the Ukraine war, the world energy crisis and global supply chain issues, post the coronavirus pandemic.

Performance indicators

Ofsted Inspection:

Working Men's College’s most recent inspection took place in November 2018.

The College’s grades awarded by Ofsted were:

Overall effectiveness Good
Adult Learning Programme Good
Quality of Teaching, Learning and Assessment Good
Personal Development, Behaviour and Welfare Good
Outcome for Learners Good

Grant Funding

The College’s performance against the funding agencies, Education and Skills Funding Agency’s (ESFA) and GLA revenue and learner number targets in 2022/23 is set out below:

Funding for Adults

Funding Category Funding Category Target (allocation)
(ESFA contract)		 Actual outturn
(Final claim)		 Performance
(%)
Adult (19+) Learner
Responsive Funding		 Responsive Funding
Adult Education
Budget (AEB)		 £5,037,238 £5,409,855 107%

Although the overall performance against target allocation looks positive, the overall value is made up of 3 separate allocations each with their own performance thresholds. Each allocation has a minimum performance threshold of 97%. Failure to achieve this minimum results in a clawback value, which is calculated as the difference between the actual Threshold achieved and the 100% target.

The GLA has confirmed that over performance up to 106% will result in additional payments being received by the college. Whereas the ESFA have set their over performance threshold at a maximum of 110%.

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Grant Funding (continued)

Funding for Adults (continued)

The end of year performance can therefore be summarised as follows:

Over
Actual Performance Clawback
Allocation Outturn Performance Payment Value
GLA Formula Funded £2,217,760 £2,594,260 117% £295,381 £0
GLA Community Learning £2,705,269 £2,705,269 100% £0 £0
Free Courses For Jobs £50,000 £46,175 92% £0 £3,825
ESFA Formula Funded £11,785 £14,615 124% £2,830 £0
ESFA Community Learning £39,128 £39,128 100% £0 £0
Advanced Learner Loans
Bursary		 £13,296 £10,408 78% £2,888
Totals £5,037,238 £5,409,855 £298,211 £6,713

Total Actual GLA/ESFA Income

£5,328,736

Funding for 16-19 Year Olds

Funding Category Funding Category Target (allocation)
(ESFA contract)		 Actual outturn
(Final claim)		 Performance
(%)
16 – 19 Learner Learner numbers 30 40 133%
Responsive Funding Funding value £169,671 £222,394 130%

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 exceeded the contract value by 30%. However, because of the lagged funding rules this overachievement will not be recovered until next year.

Other Income

The table below shows the proportion of the College’s income received in the form of direct funding body grants for the last five years:

Direct Grants Total income Percentage
Year £’000 £’000 %
2018/19 4,678 5,789 80%
2019/20 4,765 5,373 89%
2020/21 4,977 5,634 88%
2021/22 5,285 6,055 87%
2022/23 6,121 7,038 87%

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Other Income (continued)

The proportion of College income derived from direct grant funding has remained constant compared to the previous year. Whilst grant funded income as a proportion of total income had increased markedly in 2019/20 because of the Covid-19 pandemic, this reduced by 1% in 2020/21, because of a significant recovery in tuition fee income. This income stream grew by 24% over the previous year with an increasing number of students returning to in person classes. Although increasing, tuition fee income still only represents just under 10% of total income.

The College is committed to reducing its dependence on direct funding body grants through expansion of provision sponsored by employers and the development of a short course offer in winter and summer and of full cost courses on "Special Saturdays".

The amounts received by the College through adult learning loans, for learners aged 19 or over who are studying at level 3 or higher, are included in the fee income. These have been proven to be a lot more popular with learners this year and contributed £49,000 of fee income in 2022/23 (2021/22 - £2,000).

The College keeps the level of fees under constant review to optimise income while ensuring that adult education remains accessible to as many people as possible, some of whom can afford full cost courses. The majority benefit from GLA/AEB grant provision and enroll on subsidised courses, and some provision at nil cost.

Learner Numbers

In 2022/2023 there were 3,527 learners of which 2,610 were female and 917 males. There were 10,017 enrolments in the College, mostly on part-time courses ranging from one 2 hour session to a full 3 days per week and including the learners enrolled on courses in the community. Overall learner numbers increased by 242 and enrolments by 295 in the accredited provision and 632 on non-accredited courses.

Learner Performance

In 2022/23 enrolment numbers were 4% higher than our last highest number of enrolments achieved in 2018/19 (which was just before the pandemic). Achievement rates for accredited courses are slightly lower than last year at 82%, whereas achievement on non-accredited courses has increased by 1% compared to last year, reporting at 94%.

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Learner Performance (continued)

Wider outcomes are captured through a range of learner surveys and feedback forms. From 2021-22 a “confidence gains” survey has been issued to learners at the end of their courses in ESOL, English, Maths, Health and Wellbeing, Supported Learning and Community courses. Learners are asked whether their course has increased their confidence in a range of activities and situations that they encounter in their daily lives, such as talking to healthcare professionals, the Council, the JobCentre Plus, their landlord, neighbours, staff at their children’s school, or when shopping, at work, engaging in job search, managing their personal budget, time management, using transport etc. The College also issues a learner survey to all learners gathering information about satisfaction with the College and their course as well as participating in the mandatory London Learner Survey which measures outcomes and where the College achieved one of the highest levels of participation in London. The level of satisfaction in the College survey increased significantly from previous years in all questioned areas.

The College’s annual Celebration of Learner Awards took place in July 2023. Students passionately shared moving stories of how the College has changed their lives, for example giving them the language skills that enable them to communicate outside their family and participate in their community, enabling them to gain employment and overcoming mental health issues. This year a number of Ukrainian learners shared moving stories of how being at college has helped them cope with the trauma of war and enabled them to get jobs and develop confidence.

Curriculum Developments

Curriculum teams have continued to review the range of provision and develop progression opportunities, with a greater emphasis on qualification achievement and employment outcomes for learners. Whilst retaining the essential ethos of the College, the ongoing drive to develop opportunities for formal accreditation alongside the well-established, nonaccredited provision has continued, with a further increase in external accreditation in the vocational curriculum and arts, and a review of the qualifications offered: the establishment of AAT accountancy qualification with its extension to level 3 in 2022/23 being an example. The increasing need to be highly responsive to the need for retraining and refocusing on new skills and readiness for work has been a focus for the College over the past year and will be continued for the foreseeable future.

The College offers a range of services to support learners outside of their formal classroom provision. The Learning Centre and the Library provide supported learning for study outside the classroom. These facilities have an important role in assisting learners with limited IT skills or connectivity to maximise the benefit from their main course. Support for job search, the National Careers Service and employability skills coaching is based in the Learning Centre and Library.

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Members’ report Year to 31 July 2023

NATURE, OBJECTIVE AND STRATEGIES (continued)

Curriculum Developments (continued)

The table below shows student overall achievement for all College courses, as reported in the College self-assessment report.

Accredited Learners

Overall
Year Retention Pass rate achievement Attendance achievement Attendance
2021/22 Actual 96% 90% 86% 84%
2022/23 Target 96% 92% 88% 85%
2022/23 Actual 91% 90% 82% 85%
Percentage point change
2022/23 over 2021/22 -5% -2% -6% 0%

Non-Accredited Learners

Overall
Year Retention Pass rate achievement Attendance achievement Attendance
2021/22 Actual 95% 99% 93% 85%
2022/23 Target 96% 99% 95% 86%
2022/23 Actual 95% 99% 94% 87%
Percentage point change
2022/23 over 2021/22 -1% 0% -1% 1%

Other External Performance Indicators

The College is committed to observing the importance of sector measures and indicators and uses the FE Choices data available on the GOV.UK website which looks at measures such as overall achievement rates. The College is required to complete the annual Finance Record for the Education and Skills Funding Agency (ESFA). The Finance Record produces a financial health grading. Under the ESFA’s new methodology for calculating the grade, the College indicates a "Good” rating for 2022/23 and “Good” for the 2023/24 budget. This is a consequence of the adjusted current ratio improving due to the receipt of capital grants.

The College underwent a very successful full Matrix inspection in May 2023 and received renewed accreditation with no significant requirements to improve, only recommendations to further develop its IAG and support services.

FINANCIAL POSITION

Financial results

The College reported a fourth year of operating deficit at £57,000 for the year to 31 July 2023 (2022 – deficit of £230,000). Whilst another year of operating deficit is disappointing, income growth is strong, particularly in non grant funded areas. Cash will continue to be strictly monitored and costs will be tightly managed to ensure the College delivers the budget set for 2023/24.

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Members’ report Year to 31 July 2023

The College purchased £266,000 of other new tangible fixed asset additions during the year, of which £75,000 was computer equipment and £191,000 related to other building improvements, furniture, fixtures and fittings. At the end of the year, the College owned tangible fixed assets with a net book value of £8,444 million of which £8,241 million related to buildings and building improvements, £203,000 related to computer and other equipment, fixtures and fittings.

Investments

The College’s performance on its endowment investment portfolio is set out in note 9 to the accounts. The portfolio generated an income return of £154,000 during the year and increased in value by £126,000. The portfolio had a market value of £5.907 million at the balance sheet date (2022 - £5.781million).

Total comprehensive income in 2022/23, stated after investment gains, was a deficit of £156,000 (2021/22 - deficit of £173,000)

Reserves

The College has no formal reserves policy but recognises the importance of reserves in the financial stability of any organisation and ensures that there are adequate reserves to support the College’s core activities.

As of 31 July 2023, general income and expenditure funds totalled £10.571million, compared to the 2022 total of £7.841 million, due to a reclassification of restricted reserves, see note 20. The College also held restricted funds and endowments totaling £2.814 million (2022: £5.700 million). These funds have been given to the College for 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 intention of the Corporation to maintain a balance in the level of reserves between providing adequate levels of contingency and investing in projects that will develop the College and support delivery of the strategic plan.

The Corporation is formulating a medium term strategic financial plan to replenish the reserves used over the past four years.

Treasury policies and objectives

Treasury management is the management of the College’s cash flows, its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks. The College has a separate treasury and investment management policy in place.

Cash Flows and Liquidity

There was a net cash inflow for the year of £921,000 (2022: outflow of £407,000). This is a result of several factors. The College reported a deficit position for 2022/23, but this was more than offset by receipts from new capital grants.

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FINANCIAL POSITION (continued)

Long Term Loans

The College has two existing long-term loans at fixed rates of interest: one with Lloyds Banking Group for £1,000,000, drawn down in July 2007 and the other with Barclays for £500,000, drawn down in July 2008. Both loans were taken out to support the major capital building improvement works programmes at the College’s Crowndale Road site. On 31 July 2022, the total loan principal outstanding was £533,000 (2022: £629,000), of which £327,000 is owed to Lloyds and £206,000 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 review and whether they should be paid down early in full or in part. Currently, the Governors consider the financial penalty for early payment of a fixed term loan does not represent value for money.

Payment Performance

The Late Payment of Commercial Debts (Interest) Act 1998 requires colleges, in the absence of agreement to 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 received. The target set by the Treasury for payment to suppliers within 30 days is 95%. During the accounting period 1 August 2022 to 31 July 2023, the College considers that it achieved the majority of invoices processed with no disputed costs. There are a total of four suppliers with disputed costs but the College has not incurred any interest charges or late payment fees.

Restructuring

The College continued to keep its staff structure under review to ensure it remains fit for purpose, affordable and able to provide the best possible service to learners. The College incurred £nil (2022: £14,000) contractual and £nil (2022: £2,000) of non-contractual restructuring costs.

Future developments

Aligned to the Mayor’s skills agenda, The College has developed a stronger and expanded employability provision to support those finding themselves unemployed or needing to change career or the sector in which they work. This includes working with community partners and external agencies such as ‘LIFT’ in Camden, ‘Proud to Care, Bluebird and In2ed recruitment agency. We work with the JCP, and National Career Services staff based in the JCP in Kentish Town who provide referrals to WM College ESOL and vocational courses and our employability support provision. The College has developed a tracking system to ensure all activity is captured centrally and that engagement with the skills agenda can fully integrated into the new College strategic plan.

Other planned curriculum developments include strengthening level 2 provision and subsequently level 3 in particular in Business. An expanded humanities offer and a suite of health and wellbeing courses are also being expanded to meet the needs of local residents.

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FINANCIAL POSITION (continued)

Future developments (continued)

Whilst the College respects the spirit of the funding guidance on charging participants (pound plus), - it will continue to refine its approach to charging fees on Community Learning funded courses to ensure that courses are accessible to all and finance is not a barrier to learning. It recognises the need to appropriately increase fee income for some courses in order to subsidise others and has increased fees by 5% for 2023-24 for community provision whilst maintaining a 50% discount for those eligible for concession.

RESOURCES

The College has various resources which it can deploy in pursuit of its strategic objectives.

Financial

Tangible resources, with a book value of £8.444 million, include the main site at Crowndale Road with a book value of £8.241 million, principally related to building works completed in 2008 and 2012 in Phases 1 and 2 of the Accommodation Strategy and the recently completed heating and ventilation programme. There is a second centre in Kentish Town owned by the London Borough of Camden and used by the College on a tenancy-at-will basis.

Financial resources include investments and endowments totaling £5.907 million at the balance sheet date plus short-term deposits and cash holdings of £1.324million offset in part by long term debt of £533,000. The budget and cash flow forecasts for 2023/24 and beyond demonstrate that the College will continue to have sufficient resources available to it to meet obligations as they fall due and maintain operations.

People

Human resources comprise a staff base of 112 full-time equivalents, of whom 61 are teaching staff, with a headcount of 212 (136 teaching) as the College makes extensive use of subject specialists, many of whom teach part time at the College whilst also working in their specialist industry.

Reputation

The College has a strong reputation locally, based on the quality of services, the breadth of community involvement and the continuing interest in long and distinguished history, as well as the benefit of an Ofsted ”Good” rating.

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PRINCIPAL RISKS AND UNCERTAINTIES

The College has developed strategies for managing risk and has embedded a system of internal control, including financial, operational and risk management which is designed to protect the College’s assets and reputation and enable it to respond in a timely and proportionate manner to changing circumstances.

The SLT regularly reviews the risks the College is exposed to. The members identify systems and procedures, including specific preventable actions which should mitigate any potential impact on the College. The internal controls are implemented and internal audit work and other monitoring throughout the year helps appraise their effectiveness and progress against risk mitigation actions. The SLT also considers the impact of the latest government guidance and rules as well as any risks which may arise because of new or changed areas of work being undertaken by the College.

A risk register is maintained at College level and formally reviewed at EMG meetings. The risks are assigned to the most relevant committee of the Corporation and reviewed at termly meetings of those committees and then annually by the full Board. The risk register identifies the key risks, systems and procedures to control them, the likelihood of those risks occurring, their potential impact on the College and the actions being taken to reduce and mitigate the risks. Risks are prioritised using a consistent scoring system. This is supported by a risk management training programme to raise awareness of risk throughout the College.

Outlined below is a description of the highest rated risk factors that could affect the College, as identified by the SLT during 2022/23. Not all the factors are within the College’s direct control.

1. Government Funding

The College has considerable reliance on continued government funding through the further education sector funding bodies.

In 2022/23, 88% of the College’s income was publicly funded.

The College maintains an objective of reducing dependence on state funding but recognises that it will remain the dominant source. Government funding helped to maintain financial stability during the pandemic and provides some protection from the wider economic volatility. The College is aware of several issues which may impact on future funding and associate income: Inflation, energy costs, wage increases not matching increased income, and ongoing changes in government priorities such as:

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PRINCIPAL RISKS AND UNCERTAINTIES (continued)

1. Government Funding (continued)

The risk is mitigated in a number of ways:

2. Tuition Fee Policy

Government ministers have confirmed that the fee assumption remains at 50%. In line with the majority of other colleges, WM College will seek to increase fees incrementally in accordance with inflation. The College values strongly the principle of access to learning being available to everyone, regardless of financial circumstances. It will continue to hold these two objectives in balance. The risk for the College is that demand falls off as fees increase and this will impact on the growth strategy of the College.

The risk is mitigated in a number of ways:

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PRINCIPAL RISKS AND UNCERTAINTIES (continued)

3. Inflationary increase and cost not met by increase in funding and over-expenditure in non- staff costs could result in a financial deficit for the year.

With the rise in the cost of living, the College is under huge pressure to increase pay in line with inflation. This is not met by funding as the College has very few 16 to 18 year olds. who have been allocated funding by the DfE to pay for wage increases. Adults do not attract increased funding. The budget provided for a 2.5% cost of living salary increase from 1 Feb 23 and again in 2024, but this will need to be increased in line with AoC and DfE recommendations.

The College has had £1.098 million from the DfE for capital projects. Given the nature of the grade 2 listing of the building, the schedule of work that needs doing to maintain and renovate it to modern and safe standards, and the increase costs of building contracts, the College could overspend.

The risk is mitigated in a number of ways:

4. Cyber Security

Cyber attacks have emerged during 2022/23 as one of the biggest threats to College operations and data protection. The impact can be devastating and incur significant cost, extended interruption to teaching and learning and compromise enrolments.

The risk is mitigated in a number of ways:

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PRINCIPAL RISKS AND UNCERTAINTIES (continued)

5. Health and Safety and Accessibility

Built in 1904, bringing the main building of the College up to modern requirements is challenging. There are many floor levels and lifts do not serve every floor. Stair lifts are old and not fit for purpose. Many doors are not fire retardant. Evacuation processes in the event of a fire are challenging, particularly for those with mobility impairment.

The risk is mitigated in a number of ways:

STAKEHOLDER RELATIONSHIPS

In line with other colleges and educational institutions, the Working Men’s College has many stakeholders and an extensive range of relationships with local people and groups. These include:

The College recognises the importance of these relationships and engages in regular communication with them through a range of media and methods.

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STAKEHOLDER RELATIONSHIPS (continued)

Community Responsiveness and Employer Engagement

The College has been implementing a successful community engagement strategy for many years. Having struggled to maintain engagement during covid, when many community venues closed, the College has recovered and currently has provision at 16 local outreach venues and has built several proactive partnerships and close working relationships with the voluntary and community sector in central Camden. The community provision continues to reach students who would not otherwise access the College. Partners include community centres, refugee organisations, primary and secondary schools, tenants’ associations, a housing trust, a local hospital, health centres, Camden Adult & Community Learning, the British Museum and local employers. These working relationships help identify and target disadvantaged learners in Camden. Further information on these aspects of the College’s work can be found in the Self-Assessment Report available via the College website or on application to the Clerk to the Corporation.

Educational Links

The College has a wide variety of strategic links with other educational institutions.

The Greater London Authority (GLA) became the College’s principal funder for adult education from August 2019 whilst the Education and Skills Funding Agency (ESFA) remains the funder for all 16-19 activity and for adult funding for learners living outside the London boroughs controlled by the GLA.

The group of five London IALs – the Working Men’s College, the Mary Ward Centre, City Lit Morley College, and Richmond and Hillcroft Adult Community College – have a very longstanding partnership which is used in a variety of constructive ways to address national, regional and local priorities. Closer working and a new common identity as the London Adult Learning Institutions has enabled some joint initiatives to be developed effectively.

Staff and Student Involvement

The College considers good communication with staff and students to be vital. The Corporation includes two staff members and two student members and the Curriculum Quality and Standards Committee includes all academic managers. Staff and student bulletins and newsletters were produced during the year and a regular Principal’s Update issued to all staff to increase communication during the Covid-19 pandemic is now well established. The College Intranet is also used to facilitate communication with staff.

Most of the working parties and development groups within the College include staff and student representation. Sometimes it is difficult to secure the level of staff and student participation that is desirable because of the high proportion of teaching staff and students who are part-time. The Health and Safety Consultative Committee was re-established during the year, following the appointment by the recognised teaching union of a health and safety representative.

Working Men’s College Corporation 19

Members’ report Year to 31 July 2023

TRADE UNION FACILITY TIME

The Trade Union (Facility Time Publication Requirements) Regulations 2017 require the College to publish information on facility time arrangements for trade union officials at the College. The following information relates to the period from 1 April 2022 to 31 March 2023 as required by the Regulations and is also made available on the College’s website.

Relevant union officials

Relevant union officials
Number of employees who were relevant Full-time equivalent employee number; 0.4
union officials during the relevant period: 1

Percentage of time spent on facility time

Percentage of time spent on facility time
Percentage of time - % Number of employees
0 0
1–50 1
51-99 0
100 0

Percentage of pay bill spent on facility time

Total cost of facility time £244
Total pay bill £3,745,187
Percentage of the total pay bill spent on facility 0%
time,
Paid trade union activities
Time spent on paid trade union activities as a 100%
percentage of total paid facility time hours

Paid trade union activities

Working Men’s College Corporation 20

Members’ report Year to 31 July 2023

EQUAL OPPORTUNITIES STATEMENT

Equality and Diversity Statement

The College is committed to promoting equality of opportunity in all aspects of its operations for all who learn or work at the College. It recognises its legal responsibilities, respects and values all differences and individual choices and takes all reasonable steps to ensure there is no discrimination against any student, member of staff or the public, on the grounds of race, gender, sexual orientation, disability, religion or belief and age. Monitoring systems have been introduced and performance targets identified. The College’s Equality Policy is published on its website and produces an annual Equality Report and Equality Objectives to ensure compliance with 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 concerned. Where an existing employee becomes disabled, every effort is made to ensure that employment with the College continues. The College’s policy is to provide training, career development and opportunities for promotion that are, as far as possible, identical to those of non-disabled employees.

Disability Statement

A key purpose of the College is to be a learner-centred 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 inclusive education and equality of opportunity, the College welcomes students with learning difficulties. The College endeavours to be flexible and match the learning support to each student’s individual needs and achieve the objectives set down in the Equality Act 2010.

The College employs a full-time Disability Officer to promote awareness and implementation of this statement and supporting policies.

The aims of the College include:

A range of courses for learners with 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 further study or employment.

Working Men’s College Corporation 21

Members’ report Year to 31 July 2023

EQUAL OPPORTUNITIES STATEMENT (continued)

Safeguarding and Prevent

The College fully recognises its responsibility to promote safe practice and to protect and safeguard the welfare of everyone working and studying there. Governors 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 information, advice and help to keep themselves safe from harm at other times. There are clear processes and procedures in place should anyone have a concern and the College works with a number of external agencies to support learners to remain in learning, including the FE Prevent coordinators.

GOING CONCERN

After making appropriate enquiries, the Corporation considers that the College has adequate resources to 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 AUDITOR

The Governors who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the College’s auditors are unaware; and each Governer has taken all the steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the College’s auditors are aware of that information.

The members’ report including the strategic report was approved by the members of the Corporation and signed on their behalf on 14 December 2023 by:

Guy Shackle Chair:

Working Men’s College Corporation 22

Statement of Corporate Governance and Internal Control 31 July 2023

The following statement is provided to enable readers of the annual report and accounts of the College to obtain a better understanding of its governance and legal structure. This statement covers the period 1 August 2022 to 31 July 2023 and up to the date of approval of the annual report and financial statements.

The College endeavours to conduct its business:

In the opinion of the Governors, the College complies with the provisions of the Code, and it has complied throughout the year ended 31 July 2023. This opinion is based on an internal review of compliance with the Code/Governance reported to the board on 4 July 2023.

An external review was undertaken by Mosaic in early 2023 and reported to the Board in March 2023. The Governing Body recognises that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times. In carrying out its responsibilities, it takes full account of The Code of Good Governance for English Colleges issued by the Association of Colleges in 2015 as amended in 2019. The 2015 version was adopted in 2016, - the Remuneration addendum was adopted when added and the most recent version was formally adopted on 04 July 2023.

The College is committed to exhibiting best practice in all aspects of corporate governance and in particular the College has adopted and complied with the AoC Code, v2021 update. 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 Governance Code considered to be relevant to the further education sector and best practice.

THE CORPORATION

Governors of the Corporation

The Governors who served on the Governing Body, as well as committee Co-optees, during the period and up to the date of signature of this report were as follows:

Working Men’s College Corporation 23

Statement of Corporate Governance and Internal Control 31 July 2023

THE CORPORATION (continued )

Governors of the Corporation (continued)

Name Date Last
Appointed/
Reappointe
d		 Date First
Appointed		 Term of
office		 Date
Resigned		 Status of
Appoint-
ment		 Comm-
ittees		 Full Corp’n
Meetings
Attended
Beatrice
Aguilar
~~a~~		 01/11/2022
~~ee~~		 01/11/2022
~~ee~~		 1 Year
~~ee~~		 30/06/2022
~~ee~~		 Student
~~ee~~		 Q
~~ee~~		 1 of 2
~~ee~~
Amanda
Blinkhorn
~~ee~~		 31/03/2021
~~ee~~		 21/03/2018
~~ee~~		 3 Years
~~ee~~		 ~~ee~~ Nominated
Tchng Staff
~~ee~~		 Q
~~ee~~		 3 of 3
~~ee~~
Barbara Byrne
~~ee~~
~~a~~		 01/04/2020
~~ee~~
~~a~~		 11/12/2013
~~ee~~		 3 Years
~~ee~~		 31/03/2023
~~ee~~		 Appointed
~~ee~~		 F (Ch), Q
~~ee~~		 2 of 2
~~ee~~
Susan Corby
~~a~~
~~a~~		 05/07/2023
~~a~~
~~a~~		 15/07/2020 3 Years Appointed F, Q, R 2 of 3
Hoan Dien Thi
~~a~~		 01/11/2022
~~a~~		 01/11/2022 1 Year 30/06/2022 Student Q 1 of 2
Fran Fahey
~~a~~
~~a~~		 30/03/2022
~~a~~
~~a~~		 03/04/2019 3 Years Appointed F 3 of 3
Dipa Ganguli
~~a~~
~~a~~		 01/09/2023
~~a~~
~~a~~		 01/09/2023
~~ee~~		 Ex Officio
~~ee~~		 ~~eee~~ Principal
Nominated
~~eee~~		 F, Q, S
~~eee~~		 0 of 0
~~eee~~
Neil Garner
~~a~~		 05/07/2023
 15/07/2020
 3 Years
 Appointed
 A
 2 of 3
Helen
Hammond
~~aee~~		 01/12/2014
~~ee~~		 01/12/2014
~~ee~~		 Ex Officio
~~ee ~~		 30/09/2022
~~ee~~		 Principal
~~ee~~		 F, Q, S
~~ee~~		 0 of 0
~~ee~~
June Jarrett
~~a~~		 04/07/2020
 12/07/2017
 3 Years
 Appointed
 Q
 2 of 3
Samata
Khatoon
~~ee~~		 23/03/2021
~~ee~~		 21/03/2018
~~ee~~		 3 Years
~~ee~~		 ~~ee~~ Appointed
~~ee~~		 Q
~~ee~~		 2 of 3
~~ee~~
Monika
Kinasiewicz
~~ee~~
~~ee~~		 01/11/2022
~~ee~~
~~ee~~		 01/11/2019
~~ee~~
~~ee~~		 3 Years
~~ee~~
~~ee ~~		 ~~ee~~
~~ee~~		 Nominated
Bus. Staff
~~ee~~
~~ee~~		 Q
~~ee~~
~~ee~~		 3 of 3
~~ee~~
~~ee~~
Alexi Marmot
~~a~~		 30/03/2023
~~a~~		 11/12/2013 1 Year Appointed F 2 of 3
Tom Robins
~~a~~
~~a~~
~~a~~		 30/03/2022
~~a~~
~~a~~
 30/03/2022 3 Years Appointed A
~~eee~~		 3 of 3
~~eee~~
Maria
Rosenthal
~~a~~
~~a~~		 1/10/2022
~~a ee~~
 1/10/2022
~~ee~~		 Ex Officio
~~ee~~		 31/08/2023
~~ee~~		 Interim
Principal
~~ee~~		 F, Q, S
~~ee~~
~~eee~~		 3 of 3
~~ee~~
~~eee~~
Alice Rubbra
~~aa~~		 30/03/2022
~~a~~		 30/03/2022
~~ee~~		 3 Years
~~ee~~		 ~~ee~~ Appointed
~~ee~~		 F
~~eee~~
~~eee~~		 2 of 3
~~eee~~
~~eee~~
Guy Shackle
(Chair)
~~aa~~		 23/03/2021
~~a~~		 21/03/2018
~~ee~~		 3 Years
~~ee~~		 ~~ee~~ Appointed
~~ee~~		 R, S, Q, F
~~eee~~
~~eee~~		 3 of 3
~~eee~~
~~eee~~
Jon Sibson
~~a~~
~~ee~~		 30/03/2022
~~a~~
~~ee~~		 03/04/2019
~~ee~~
~~ee~~		 3 Years
~~ee~~
~~ee~~		 ~~ee~~
~~ee~~		 Appointed
~~ee ~~
~~ee~~		 Q (Ch), F,
R
~~eee~~
~~ee~~		 3 of 3
~~eee~~
~~ee~~
Max Silver
~~ee~~
~~a~~		 31/03/2021
~~ee~~
~~a~~		 31/03/2021
~~ee~~
~~a~~		 3 Years
~~ee~~
~~a~~		 ~~ee~~
~~a~~		 Appointed
~~ee~~
~~a~~		 F, R
~~ee~~
~~a~~		 3 of 3
~~ee~~
~~a~~
Paul Smith
~~a~~		 16/07/2020
~~a~~		 12/07/2017
~~a~~		 3 Years
~~a~~		 31/07/2023
~~a~~		 Appointed
~~a~~		 A (Ch)
~~a~~		 2 of 3
~~a~~

Working Men’s College Corporation 24

Statement of Corporate Governance and Internal Control 31 July 2023

THE CORPORATION (continued )

Governors of the Corporation (continued)

Key Committee Number of meetings in 2022/23
A Audit 3 meetings
C Curriculum, Quality and Standards 3 meetings
F Finance, Personnel and Development 4 meetings
4 meetings
S Search and attendance at stages of the new
Principal’s selection and interview
Did not hold discrete meetings during the
year. Its business was conducted through
R Remuneration the Search Committee which determined
appointments and remuneration of Senior
Post Holders

The Working Men’s College is a company limited by guarantee and its Appointed Governors are also Members of the company. Every Member undertakes to contribute to the assets of the company 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.

Bill Barker was the Clerk to the Corporation and Company Secretary throughout the period.

Fellows of the Corporation

In January 2020, the Search Committee agreed to propose additional 6 year terms of office for existing Fellows and 6 year terms of office for other recently retired governors. Further development was paused during the Covid-19 pandemic and has since restarted. In September 2022 the College took part in the Open House London weekend with many Fellows attending or speaking at event workshops. During the year the contributing editors of the new College history book, itself a sequel to the 1954 publication authored by JFC Harrison, have secured a contract with Routledge (Taylor and Francis) for publication in 2024.

Current Fellows are:

Working Men’s College Corporation 25

Statement of Corporate Governance and Internal Control 31 July 2023

THE CORPORATION (continued )

The governance framework

It is the corporation’s responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct.

The corporation is provided with regular and timely information on the overall financial performance of the college together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel-related matters such as health and safety and environmental issues. The corporation and its sub committees meet termly.

The corporation conducts its business through a number of committees. Each committee has terms of reference, which have been approved by the corporation. These committees are Curriculum, Finance Personnel and Development, Audit, Remuneration and Search. Full minutes of all Board meetings, except those deemed to be confidential by the corporation, are available on the college’s website (wmcollege.ac.uk) or from the clerk to the corporation at the college’s registered address.

The clerk to the corporation maintains a register of financial and personal interests of the governors. The register is available for inspection at the above address.

All governors are able to take independent professional advice in furtherance of their duties at the college’s expense and have access to the clerk to the corporation, who is responsible to the Board for ensuring that all applicable procedures and regulations are complied with. The appointment, evaluation and removal of the clerk are matters for the corporation as a whole.

Formal agendas, papers and reports are supplied to governors in a timely manner, prior to Board meetings. Briefings are provided on an ad hoc basis.

The corporation has a strong and independent non-executive element and no individual or group dominates its decision-making process. The corporation considers that each of its nonexecutive members is independent of management and free from any business or other relationship which could materially interfere with the exercise of their independent judgement.

There is a clear division of responsibility in that the roles of the Chair and Accounting Officer are separate.

Appointments to the corporation

Any new member appointments to the corporation are a matter for the consideration of the corporation as a whole. The corporation has a search committee, consisting of four members of the corporation, 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/ training is provided as required.

Members of the corporation are appointed for a term of office of 3 years – the maximum term is 3 terms of 3 years – this is provided for by the Memorandum and Articles of Association.

Working Men’s College Corporation 26

Statement of Corporate Governance and Internal Control 31 July 2023

THE CORPORATION (continued )

Corporation Performance

The corporation carried out a self-assessment of its own performance for the year ended 31 July 2023 and graded itself as “Good” on the Ofsted scale.

The governing body is committed to development and held a strategy /development session in February 2023

The College commissioned an external review in 2022/23 and will review progress in 2023/24.

Remuneration Committee

Throughout the year ending 31 July 2023 the college’s Remuneration Committee comprised four members of the corporation. The Committee’s responsibilities are to make recommendations to the Board on the remuneration and benefits of the Accounting Officer and other key management personnel.

With the Principal changing in the year, the Remuneration Committee did not meet during the year ended 31 July 2023. Instead the Search Committee oversaw the appointment and remuneration of the Interim Principal from 1 October 2022 and the Principal who took post from 1 September 2023. . In the absence of a sector negotiated Principal’s pay scale, the selection panel’s recommendation took account of previous experience, affordability, nationwide concerns about high level pay relative to employee awards, benchmarking information including College size, income and median salaries, and the gender pay gap. The Search Committee also oversaw the appointments of two interim Vice Principals, the Interim Deputy Principal and Deputy Principal posts as well as other senior appointments.

Details of remuneration for the year ended 31 July 2023 are set out in note 5 to the financial statements.

Audit Committee

The Audit Committee comprises three members of the corporation (excluding the Accounting Officer and Chair) and a co-opted member.

The Committee operates in accordance with written terms of reference approved by the corporation.

The Audit Committee meets on a termly basis and provides a forum for reporting by the college’s internal auditors, reporting accountants and financial statements auditors, who have access to the Committee for independent discussion without the presence of college management. The Committee also receives and considers reports from the main FE funding bodies as they affect the college’s business.

The college’s internal auditors review the systems of internal control, risk management controls and governance processes in accordance with an agreed plan of input and report their findings to management and the Audit Committee.

Working Men’s College Corporation 27

Statement of Corporate Governance and Internal Control 31 July 2023

THE CORPORATION (continued )

Audit Committee (continued)

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 also advises the corporation on the appointment of internal auditors, reporting accountants and financial statements auditors and their remuneration for audit and non-audit work if any commissioned as well as reporting annually to the corporation. No nonaudit work was commissioned during the period.

The audit committee met three times in the year to 31 July 2023. The members of the committee and their attendance records are shown below:

Committee member Committee member Meetings attended
Paul Smith(Chair) (to 31 July2023) 2 of 3
Tom Robbins 3 of 3
Neil Garner 3 of 3
Max Silver(to 1 November 2022) 0 of 0
Cameron Walkinshaw(from 1 May2023) 1 of 1

Max Silver left the Audit Committee on 1 November 2022, to become a member of the Finance, Personnel and Development Committee, Vice Chair and member of the Search Committee.

Cameron Walkinshaw is a co-opted member of the committee but is not a member of the College Board.

INTERNAL CONTROL

Scope of Responsibility

The corporation is ultimately responsible for the College’s system of internal control and for reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The corporation has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement 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 to her in the Funding Agreement between WM College and the funding bodies. She is also responsible for reporting to the corporation any material weaknesses or breakdowns in internal control.

Working Men’s College Corporation 28

Statement of Corporate Governance and Internal Control 31 July 2023

INTERNAL CONTROL (continued)

The Purpose of the System of Internal Control

The system of internal control is based on an ongoing process designed to 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 impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in WM College for the year ended 31 July 2023 and up to the date of approval of the annual report and accounts.

Capacity to Handle Risk

The corporation 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 formal ongoing process for identifying, evaluating and managing the College's significant risks that has been in place for the period ending 31 July 2023 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the corporation.

The Risk and Control Framework

The system of internal control is based on a framework of regular management information, administrative procedures including the segregation of duties, and a system of delegation and accountability. In particular, it includes:

The College has an internal audit service, which operates in accordance with the requirements of the ESFA’s Post 16 Audit Code of Practice. The work of the internal audit service is informed by an analysis of the risks to which the College is exposed, and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit plans are endorsed by the corporation on the recommendation of the audit committee. At minimum, annually, the Head of Internal Audit (HIA) provides the governing body with a report on internal audit activity in the College, includes an independent opinion on the adequacy and effectiveness of the College’s system of risk management, controls and governance processes.

Working Men’s College Corporation 29

Statement of Corporate Governance and Internal Control 31 July 2023

INTERNAL CONTROL (continued)

Risks faced by the Governing Body

The corporation receives an annual report on risk management and the risk management policy. This is reviewed before the signing of the financial statements,

During the year the risks falling within the remit of each committee are reviewed at each meeting of the committee.

Control Weaknesses Identified

The internal scrutiny work during the year resulted in one high risk, six medium risk and 6 low risk recommendations, with the high risk recommendation arising in the work completed on procurement and changes to suppliers bank details. Although changes to a suppliers bank details occur infrequently, the College has addressed this issue and has already put in place a process to verify and evidence any change in a suppliers bank details.

Responsibilities under Funding Agreements

The Department for Education and Education and Skills Funding Agency introduced new controls for the college on 29 November 2022 on the day that the Office for National Statistics reclassified colleges as public sector organisations in the national accounts. The ESFA chief executive communicated these changes to all college accounting officers and explained plans to introduce a college financial handbook in 2024. The college has reviewed its policies, procedures and approval processes in line with these new requirements to ensure there are systems in place to identify and handle any transactions for which DfE approval is required. Furthermore, the College has updated the terms of reference of the Finance Personnel and Development Committee and the Audit Committee to take account of the additional responsibilities accruing in consequence of ONS re-classification.

Statement from the Audit Committee

The audit committee has advised the board of governors that the corporation has an effective framework for governance and risk management in place. The audit committee believes the corporation has effective internal controls in place.

The specific areas of work undertaken by the audit committee in 2022/3 and up to the date of the approval of the financial statements are:

Reasonable progress was also made in respect of follow up to previous recommendations by the internal auditors

Working Men’s College Corporation 30

Statement of Corporate Governance and Internal Control 31 July 2023

INTERNAL CONTROL (continued)

Statement from the Audit Committee (continued)

Review of Effectiveness

As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. The Principal’s review of the effectiveness of the system of internal control is informed by:

The Accounting Officer has been advised on the implications of the result of the review of the effectiveness of the system of internal control by the Audit Committee which oversees the work of the internal auditor, and other sources of assurance and a plan to address weaknesses and ensure continuous improvement of the system is in place.

The senior management team receives reports setting out key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms, which are embedded within the departments and reinforced by risk awareness training. The senior management team and the Audit Committee also receive regular reports from internal audit and other sources of assurance, which include recommendations for improvement.

Working Men’s College Corporation 31

Statement of Corporate Governance and Internal Control 31 July 2023

INTERNAL CONTROL (continued)

Review of Effectiveness (continued)

The Audit Committee'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 receives reports thereon from the senior management team and the Audit Committee. The emphasis is on obtaining the relevant degree of assurance and not merely reporting by exception. At its October 2023 meeting, the corporation carried out the annual assessment for the year ended 31 July 2023 by considering documentation from the senior management team and internal audit and taking account of events since 31 July 2023.

Based on the advice of the Audit Committee and the Accounting Officer, the corporation is of the opinion that the college has an adequate and effective framework for governance, risk management and control, and has fulfilled its statutory responsibility for “the effective and efficient use of resources, the solvency of the institution and the body and the safeguarding of their assets”.

Approved by order of the members of the Governing Body on 14 December 2023 and signed on its behalf by:

Guy Shackle Chair of the Governing Body

Dipa Ganguli Accounting Officer

Working Men’s College Corporation 32

Statement on regularity, propriety and compliance 31 July 2023

As Accounting Officer, I confirm that the Corporation has had due regard to the framework of authorities governing regularity, propriety and compliance and the requirements of grant funding agreements and contracts with ESFA and GLA and has considered its responsibility to notify ESFA or GLA of material irregularity, impropriety and non-compliance with those authorities and terms and conditions of funding.

I confirm on behalf of the Corporation that after due enquiry, and to the best of my knowledge, I am able to identify any material irregular or improper use of funds by the Corporation, or material non-compliance with the framework of authorities and the terms and conditions of funding under the Corporation’s grant funding agreements and contracts with the ESFA and GLA, or any other public funder. This includes the elements outlined in th "Dear accounting officer" letter of 29 November 2022 and ESFA's bite size guides.

I confirm that no instances of material irregularity, impropriety, funding non-compliance or non-compliance with the framework of authorities have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the ESFA or GLA.

Dipa Ganguli

Accounting Officer

Date: 14 December 2023

Statement of the Chair of Governors

On behalf of the Corporation, I confirm that the Accounting Officer has discussed their statement of regularity, propriety and compliance with the Board and that I am content that it is materially accurate.

Guy Shackle

Chair

Date: 14 December 2023

Working Men’s College Corporation 33

Statement of governors’ responsibilities 31 July 2023

The Governors of the Corporation (who are trustees for the purposes of the Charities Act and whose Appointed Governors are also the directors of the company for the purposes of the Companies Act) are required to present audited financial statements for each financial year.

Within the terms and conditions of the College's grant funding agreements and contracts with the Education and Skills Funding Agency (ESFA) and the Greater London Authority (GLA), the Corporation, through its Accounting Officer, is required to prepare financial statements and an operating and financial review for each financial year in accordance with the Statement of Recommended Practice – Accounting for Further and Higher Education, ESFA's College Accounts Direction and the UK's Generally Accepted Accounting Practice (GAAP), and which give a true and fair view of the state of affairs of the Corporation and its deficit of income over expenditure for that year.

In preparing the financial statements, the Corporation is required to:

The Corporation is also required to prepare a Strategic Report that describes what it is trying to do and how it is going about it, including information about the legal and administrative status of the Corporation.

The Corporation is responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the College and which enable it to ensure that the financial statements are prepared in accordance with the relevant legislation including the Further and Higher Education Act 1992 and Charities Act 2011, and relevant accounting standards. It is responsible for taking steps that are reasonably open to it to safeguard the assets of the College and to prevent and detect fraud and other irregularities.

The Corporation is responsible for the maintenance and integrity of the Working Men’s College website; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Working Men’s College Corporation 34

Statement of governors’ responsibilities 31 July 2023

Governors of the Corporation are responsible for ensuring that expenditure and income are applied for the purposes intended and that the financial transactions conform 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 funder, including that any transaction entered into by the corporation are within the delegated authorities set out in the "Dear Accounting Officer" letter of 29 November 2022 and ESFA's bite size guides. Governors of the Corporation must ensure that there are appropriate financial and management controls in place in order to safeguard public and other funds and to ensure they are used properly. In addition, Governors of the Corporation are responsible for securing economic, efficient and effective management of the College’s resources and expenditure, so that the benefits that should be derived from the application of public funds from the ESFA and GLA and other public bodies are not put at risk.

Approved by order of the members of the Corporation on 14 December 2023 and signed on their behalf by:

Guy Shackle

Chair

Working Men’s College Corporation 35

Independent auditor’s report on the financial statements 31 July 2023

Independent auditor’s report to the Members of the Corporation of the Working Men’s College

Opinion

We have audited the financial statements of Working Men’s College (the ‘College’) for the year ended 31 July 2023 which comprise the statement of comprehensive income, the statement of changes in reserves, the balance sheet, the statement of cash flows, the principal accounting policies, and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the College in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members of the Corporation’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the College’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Working Men’s College Corporation 36

Independent auditor’s report on the financial statements 31 July 2023

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The Governors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required 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 identified material misstatements in the Governors’ report including the strategic report.

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

Working Men’s College Corporation 37

Independent auditor’s report on the financial statements 31 July 2023

Responsibilities of the Governors

As explained more fully in the statement of responsibilities of the Governors of the Corporation, the Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the College’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Working Men’s College Corporation 38

Independent auditor’s report on the financial statements 31 July 2023

Auditor’s responsibilities for the audit of the financial statements (continued)

We assessed the susceptibility of the College’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members of the Governing Body and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Working Men’s College Corporation 39

Independent auditor’s report on the financial statements 31 July 2023

Use of our report

This report is made solely to the Corporation, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the members of the Governing Body those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and the members of the Governing Body, for our audit work, for this report, or for the opinions we have formed.

Shachi Blakemore (Senior Statutory Auditor) for and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

14 December 2023

Working Men’s College Corporation 40

Reporting accountant’s assurance report on regularity 31 July 2023

Reporting accountant’s assurance report on regularity

To: The Governing Body of Working Men’s College and the Secretary of State for Education, acting through the Department for Education

In accordance with the terms of our engagement letter dated 31 May 2019 and further to the requirements and conditions of funding in the Education and Skills Funding Agency's Grant Funding Agreements and contracts, including those of the Greater London Authority (GLA), we have carried out an engagement to obtain limited assurance about whether anything has come to our attention that would suggest that, in all material respects, the expenditure disbursed and income received by the Working Men's College during the period 1 August 2022 to 31 July 2023 has not been applied to the purposes identified by Parliament and the financial transactions do not conform to the authorities which govern them.

The framework that has been applied is set out in the Post-16 Audit Code of Practice (the Code) issued by the ESFA and in any relevant conditions of funding concerning adult education notified by the GLA or other relevant funder. In line with this framework, our work has specifically not considered income received from the main funding grants generated through the Individualised Learner Record (ILR) data returns, for which the ESFA has other assurance arrangements in place.

This report is made solely to the Governing Body of Working Men’s College and the ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Governing Body of the Working Men's College and the ESFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Governing Body 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 Governing Body of the College is responsible, under the requirements of the Further & Higher Education Act 1992, subsequent legislation and related regulations and guidance, for ensuring that expenditure disbursed, and income received, are applied for the purposes intended by Parliament, and the financial transactions conform to the authorities that govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Code. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received, during the period 1 August 2022 to 31 July 2023 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Working Men’s College Corporation 41

Reporting accountant’s assurance report on regularity 31 July 2023

Approach

We conducted our engagement in accordance with the Code issued by the ESFA. We performed a limited assurance engagement as defined in that framework.

The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to 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 positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity of the corporation’s income and expenditure.

The work undertaken to draw to our conclusion includes:

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects, the expenditure disbursed and income received during the period 1 August 2022 to 31 July 2023 has not been applied to purposes intended by Parliament, and the financial transactions do not conform to the authorities that govern them.

Buzzacott LLP

Chartered Accountants and Statutory Auditors

130 Wood Street London EC2V 6DL

14 December 2023

Working Men’s College Corporation 42

Statement of comprehensive income Year to 31 July 2023

2023 2022
Total Total
funds funds
Notes £’000 £’000
Income:
Funding body grants 1 6,121 5,285
Tuition fees 2 675 551
Other operating income 3 88 91
Investment income 4 154 128
Total 7,038 6,055
Expenditure:
Cost of generating funds 4 6
Staff costs 5 4,883 4,194
Fundamental restructuring costs - 16
Other operating expenses 6 1,519 1,342
Depreciation 8 653 690
Interest and other finance costs 7 36 37
Total 7,095 6,285
Operational deficit before other gains and losses and before tax
(57)		 (230)
Gains/(losses) on listed investments 9
126		 (18)
(Loss)/ gain on investment property 10 **(225) ** 75
(Deficit) before tax (156) (173)
Taxation
-		 -
Total comprehensive expenditure for the year
**(156) **		 (173)
Represented by:
Restricted comprehensive income 21 62
Endowment fund income/(expenditure) 50 (8)
Unrestricted comprehensive (expenditure) **(227) ** (227)
Total comprehensive(expenditure) for theyear
**(156) **		 (173)

Working Men’s College Corporation 43

Balance sheet 31 July 2023

2023 2022
Notes £’000 £000
Fixed assets
Tangible fixed assets 8 8,444 8,831
Listed investments 9 5,907 5,781
Investment property 10 1,500 1,725
15,851 16,337
Current assets
Debtors 11 604 433
Cash at bank and in hand 1,324 403
1,928 836
Liabilities
Creditors: amounts falling due within one year 12 (1,443) (1,149)
Net current assets/(liability) 485 (313)
Total assets less current liabilities 16,336 16,024
Creditors: amounts falling due after more than one year 13 (2,951) (2,483)
Total net assets 13,385 13,541
Endowments
Permanent 309 304
Expendable 2,049 2,004
2,358 2,308
Restricted reserves
Restricted reserves 456 3,392
Unrestricted reserves
Income and expenditure account 10,571 7,841
Total reserves 13,385 13,541

The financial statements on page 43 to 67 were approved by the Governing Body on 14 December 2023 and were signed on its behalf by:

Guy Shackle Chair Company registration number: 8894 Charity registration number: 312803

Dipa Ganguli OBE Principal and Accounting Officer

Working Men’s College Corporation 44

Statement of changes in reserves Year to 31 July 2023

Income &
expenditure Restricted Endowment Total
reserve reserves reserves
s		 reserves
£’000 £’000 £’000
£’000		 £’000
Balance at 1 August 2021 8,068 8,068
3,330		 3,330
2,316		 13,714
(Deficit) from the income and expenditure
account (154) (11) (11)
(8)		 (173)
Transfers between restricted and income and
expenditure reserves (73) 73 73
-		 -
Total comprehensive income for the year (227) 62 62
(8)		 (173)
Balance at 31 July 2022 7,841 7,841
3,392		 3,392
2,308		 13,541
Surplus / (Deficit) from the income and
expenditure account (215) 9 9
50		 (156)
Transfers between restricted and income and
expenditure reserves (12) 12 12
-
Total comprehensive income for the year (227) 21 21
50		 (156)
Reclassification of reserves (note 20) 2,957 957
(2,957)		 - -
Balance at 31 July 2023 10,571 10,571
456		 456
2,358		 13,385

Included within restricted reserves at the balance sheet date is an amount of £219,000 (2022: £209,000) which relates to the assets of the former Francis Martin College Charitable Foundation (Emily Pfeiffer endowment). The Working Men's College Corporation is the corporate trustee of the Francis Martin College charity (registered charity number 312802). The assets are invested in the Newton Growth and Income Fund for Charities alongside the investments of the Working Men's College Corporation.

Working Men’s College Corporation 45

Statement of cash flows Year to 31 July 2023

31 July 31 July
2023 2022
Notes £’000 £’000
Net cash inflow / (outflow) from operating activities 15 67 (236)
Investing activities
Income from investments and endowments 154 127
Purchase of tangible fixed assets (266) (427)
Interest received - 1
Receipts of new capital grants 1,098 255
Net cash provided by (used in) investing activities 986 (44)
Financing activities
Interest payable (36) (37)
Capital element of bank loan repayments (96) (90)
Net cash used in financing activities (132) (127)
Increase/(decrease) in cash and cash equivalents in the
year 921 (407)
Cash and cash equivalents at the beginning of the year 403 810
Cash and cash equivalents at the end of theyear 16 1,324 403

Working Men’s College Corporation 46

Principal accounting policies 31 July 2023

The following accounting policies have been applied consistently 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 Education 2019 (the 2019 FE HE SORP), the College Accounts Direction for 2022-23 and in accordance with Financial Reporting Standard 102: - "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" (FRS102). The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS102.

The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the College's accounting policies.

Without limiting the information 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 format of the financial statements where these are not appropriate to the College’s activities.

Basis of accounting

The financial statements are prepared in accordance with the historical cost convention modified by the revaluation of listed investments and the investment property.

Going concern

The activities of the College, together with the factors likely 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 borrowings are described in the financial statements and accompanying notes.

The College had at 31 July 2023 £533,000 of loans outstanding with bankers on terms negotiated in 2007. The terms of the existing agreement are for up to another 5 years. The College’s forecasts and financial projections indicate that it will be able to operate within this existing facility and covenants for the foreseeable future.

Accordingly the College has a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements.

Working Men’s College Corporation 47

Principal accounting policies 31 July 2023

Recognition of income

Revenue grant funding

Government revenue grants include funding body recurrent grants and other grants and are accounted for under the accrual model as permitted by FRS 102. Funding body recurrent grants are measured in line with best estimates for the period of what is receivable, the extent of the completion of the contract or service concerned and depend on the particular income stream involved.

Any under achievement for the Adult 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 normally determined with the conclusion of the year end reconciliation process with the funding body at the end of November following the year end and the results of any funding audits. 16-18 learner-responsive funding is not normally subject to reconciliation and is therefore not subject to contract adjustments.

Where part of a government grant is deferred, the deferred element is recognised as deferred income within creditors and allocated between creditors due within one year and creditors due after more than one year as appropriate.

Grants (including research grants) from non-government sources are recognised in income when the college is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.

Capital grant funding

Government capital grants are capitalised, held as deferred income and recognised in income over the expected useful life of the asset, under the accrual model as permitted by FRS 102. Other, non-governmental, capital grants are recognised in income when the college is entitled to the funds subject to any performance related conditions being met.l Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the Balance Sheet and released to income as conditions are met.

Fee income

Income from tuition fees is stated gross of any expenditure which is not a discount and is recognised in the period for which it is received.

Investment Income

All income from short term deposits is credited to the income and expenditure account in the period to which it is earned on a receivable basis.

Working Men’s College Corporation 48

Principal accounting policies 31 July 2023

Agency Arrangements

The College acts as an agent in the collection and payment of certain discretionary support funds and any other arrangements from the ESFA or Department for Education. Related payments received from the funding bodies and subsequent disbursements to learners are excluded from the income and expenditure of the College where the College is exposed to minimum risk or enjoys minimal economic benefit related to the transaction.

Accounting for post-employment benefits

Post-employment benefits to employees of the College are provided by the Teachers’ Pension Scheme (TPS) and a group personal pension scheme. The TPS is a defined benefit plan which is externally funded and contracted out of the State Second Pension. The group personal pension plan is a defined contribution plan.

Teachers Pension Scheme (TPS )

The TPS is an unfunded scheme. Contributions to the TPS are calculated so as to spread the cost of pensions over employees’ working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by qualified actuaries on the basis of valuations using a prospective benefit method.

The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution plan and the contributions recognised as an expense in the comprehensive income statement in the periods during which services are rendered by employees.

Group Personal Pension Scheme

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 comprehensive income on an accruals basis.

Short term employment benefits

Short term employment benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.

Working Men’s College Corporation 49

Principal accounting policies 31 July 2023

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

Individual items of equipment costing greater than £500 and with an expected useful life exceeding one year are capitalised at cost. Freehold land is not depreciated as it is considered to have an infinite useful life.

Tangible fixed assets are depreciated over their useful economic lives, on a straight line basis, as follows:

Freehold buildings over 50 years for new buildings
over 20 years for existing buildings
Building improvements 4% - 10% per year
Technical equipment over 4 years
Computer hardware and software over 3 years
Furniture fixtures and fittings over 6 years

Where significant expenditure is incurred on tangible fixed assets it is charged to the income and expenditure account in the period it is incurred, unless it meets one of the following criteria, in which case it is capitalised and depreciated on the relevant basis:

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of comprehensive income.

Working Men’s College Corporation 50

Principal accounting policies 31 July 2023

Assets under construction

Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs, incurred to the balance sheet date. They are not depreciated until they are brought into use.

Leased assets

Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term to the Statement of Comprehensive Income. Any lease premiums or incentives relating to leases signed after 1 August 2014 are spread over the minimum lease term.

Finance leases

Leasing agreements which transfer to the college substantially all the benefits and risks of ownership of an asset are treated as finance leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as an obligation under finance leases. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charges are allocated over the period of the lease in proportion to the capital element outstanding.

Investments 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 period. Realised and unrealised gains (or losses) are credited (or debited) to the statement of total gains and losses in the year in which they arise.

Investment property

The investment property is included at estimated market value at the balance sheet date.

Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. An investment qualifies as a cash equivalent when it has a maturity of 3 months or less from the date of acquisition.

Working Men’s College Corporation 51

Principal accounting policies 31 July 2023

Financial liabilities and equity

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

All loans, investments and short term deposits held by the College are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost). FRS 102 requires that basic financial instruments are subsequently measured at amortisied cost. However the College has calculated that the difference between the historical cost and amortised cost basis is not material and so these financial instruments are stated on the balance sheet at historical cost. Loans and investments that are payable or receivable within one year are not discounted.

Endowments and reserves

Permanent endowments comprise monies which must be held indefinitely as capital and expendable endowments represent capital monies which can be drawn upon if required. Income therefrom is credited to the statement of comprehensive income and applied for general purposes unless under the terms of the endowment such income must be used for specific purposes in which case it is credited to restricted reserves.

Restricted reserves comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions. At the balance sheet date, £219,000 represents the funds of the Francis Martin College Pfeiffer Trust scheme and the remaining £237,000 relates to equipment reserves. The College is reviewing the ongoing appropriateness of the restrictions and assets allocated to the funds.

Taxation

The College is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by sections 478-488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The College receives no similar exemption 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.

Working Men’s College Corporation 52

Principal accounting policies 31 July 2023

Provisions and contingent liabilities

Provisions are recognised when:

Where the effect of the time value of money is material, 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 as 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 occurrence or otherwise of uncertain future events not wholly within the control of the College. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

Contingent liabilities are not recognised in the balance sheet but are disclosed in the notes to the accounts.

Judgements in applying accounting policies and key sources of estimation uncertainty

Judgements in applying key accounting policies

In preparing these financial statements, management has made the following judgements:

Working Men’s College Corporation 53

Principal accounting policies 31 July 2023

Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Other key sources of estimation uncertainty

Tangible fixed assets, other than investment 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 conditions, the remaining life of an asset and projected disposal values.

Working Men’s College Corporation 54

Notes to the Financial Statements Year to 31 July 2023

1 Funding body grants

2023 2022
£’000 £’000
Recurrent grants
Education and Skills Funding Agency – adult 44 44
Greater London Authority – adult 5,170 4,698
Education and Skills Funding Agency – 16-18 170 111
Specific grants
Teachers’ Pension Support Grant 161 137
Multiply funding 419 -
Other specific grants - 115
Release of government capital grants: 157 180
6,121 5,285

2 Tuition fees

Tuition fees
2023 2022
£’000 £’000
Adult education fees 663 526
Fees for FE loan supported courses - 7
663 533
Education contracts 12 18
675 551

3 Other operating income

Other operating income
2023 2022
£’000 £’000
Non-funding body grants - 25
Property rental income 45 44
Legacy income 34 -
Other income 9 22
88 91

4 Investment income

2023 2022
£’000 £’000
Income from restricted asset investments 12 73
Income from endowment and unrestricted investments 142 54
Other interest receivable - 1
154 128

Working Men’s College Corporation 55

Notes to the Financial Statements Year to 31 July 2023

5 Staff costs and key management personnel remuneration

The average number of persons (including key management personnel) employed by the College during the year, expressed as average headcount and calculated on a monthly basis, was:

2023 2022
No. No. FTE No. No. FTE
Teaching staff 136 136 61 131 131 55
Non-teaching staff 76 76 51 71 71 48
212 212 112 202 202 103

Staff costs for the above person:

2023 2022
£’000 £’000
Wages and salaries 3,942 3,377
Social security costs 357 291
Other pension costs (note 19) 584 503
Total staffcosts 4,883 4,171

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College and are comprised of the Principal, the Vice Principal, the Assistant Principals and the Director of Finance.

Emoluments of key management personnel, Accounting Officer and other higher paid staff

The number of key management personnel including the Accounting Officer was:

2023 2022
No. No.
Keymanagement personnel including theAccounting Officer 14 10

Working Men’s College Corporation 56

Notes to the Financial Statements Year to 31 July 2023

5 Staff costs and key management personnel remuneration (continued)

Emoluments of key management personnel, Accounting Officer and other higher paid staff (continued)

The number of key management personnel who received annual emoluments, excluding pension contributions but including benefits in kind, in the following ranges was:

2023 2022
No. No.
£5,001 to £10,000 p.a.* 1 -
£20,001 to £25,000 p.a.* 2 1
£35,001 to £40,000 p.a.* 1 -
£45,001 to £50,000 p.a. * 1 1
£50,001 to £55,000 p.a. 2 1
£55,001 to £60,000 p.a.** 1 2
£60,001 to £65,000 p.a. 3 2
£75,001 to £80,000 p.a. 1 -
£80,001 to £85,000 p.a. - 2
£85,001 to £90,000 p.a.* 1 -
£100,001 to £105,000 p.a. 1 -
£110,001 to £115,000 p.a. - 1
14 10

** Includes part time staff (full time equivalent £85,001 to £90,000)

In the year to 31 July 2023 there were a number of changes to the senior leadership team, and the above table shows the salaries for each employee for the period that they were employed.

There were no other staff, other than those included in key management personnel, who received annual emoluments exceeding £60,000 during the year (2022 – none).

Key management personnel (including the Accounting Officer) total compensation is made up as follows:

2023 2022
£’000 £’000
Salaries 754 642
Benefits-in-kind - -
754 642
Pension contributions 90 94
Total emoluments 844 736

There were no amounts due to key management personnel that were waived in the year, nor any salary sacrifice arrangements in place.

Working Men’s College Corporation 57

Notes to the Financial Statements Year to 31 July 2023

5 Staff costs and key management personnel remuneration (continued)

Emoluments of key management personnel, Accounting Officer and other higher paid staff (continued)

The above emoluments include amounts payable to the Accounting Officer who held this office for the year to 31 July of:

2023 2022
£’000 £’000
Salaries 109 112
Pay in lieu of notice / compensation 68 -
Pension contributions 29 27
206 139

During the year to 31 July 2023, there were two Accounting Officers (to 30 September 2022) and (from 1 October 2022), who were paid respectively £87K and £90K, including payments in lieu of notice and compensation payments. The pay in lieu of notice / compensation includes £59K of statutory and £9K of non-statutory payments. The highest paid person of key management personnel, who was also the Accounting Officer for part of the year received remuneration in the bracket £100,001 to £105,000.

The Principal’s pay for the year was set by the College’s Search Committee as noted on page 27.

The relationship between the Accounting Officer’s emoluments, expressed as a multiple of all other employees based on full-time equivalents, is set out below for both basic salary and total remuneration.

2023 2022
No. No.
Basic salary as a multiple of median basic salary of staff 3.9 4.2
Total remunerationas amultiple of mediantotal remunerationofstaff 3.8 4.1

Governors’ remuneration

The key management personnel only receive remuneration in respect of services they provide undertaking their roles of principal and staff members under contracts of employment and not in respect of their roles as governors. The other members of the Governing Body did not receive any payments from the College in respect of their roles as Governors (2022 – one).

The total expense for travel and subsistence paid to, or on behalf of the Governors during the year was £nil (2022 – £125). This represents travel and subsistence expenses and other out of pocket expenses incurred in attending Governor meetings or Governor training events.

Working Men’s College Corporation 58

Notes to the Financial Statements Year to 31 July 2023

6 Other operating expenses
2023 2022
£’000 £’000
Teaching costs 133 147
Non-teaching costs 697 616
Premises costs 689 579
1,519 1,342
Surplus/(deficit) before taxation is stated after charging:
2023 2022
£’000 £’000
Auditors’ remuneration
. Financial statements audit 28 27
. Internal audit 12 6
. Other services provided by the financial statements auditor for
Teachers Pension audit 2 2
Operatinglease charges 13 4
7 Interest and other finance costs
2023 2022
£’000 £’000
On bank loans, overdrafts and other loans:
Repayable within five years, by instalments 36 37
36 37

8 Tangible fixed assets

Furniture,
Freehold Fixtures
Land and Building Computer and
Buildings Improvements Equipment Fittings Total
£’000 £’000 £’000 £’000
£’000		 £’000
Cost or valuation
At 1 August 2022 6,711 6,711
5,139		 5,139
1,737		 1,737
591		 14,178
Additions - -
121		 121
75		 75
70		 266
Disposals - -
-		 -
(25)		 - (25)
At 31 July 2023 6,711 711
5,260		 260
1,787		 787
661		 14,419
Depreciation




At 1 August 2022 1,933 1,933
1,377		 1,377
1,507		 1,507
530		 5,347
Charge for the year 131 131
289		 289
203		 203
30		 653
Disposals - -
-		 -
(25)		 - (25)
At 31 July 2023 2,064 064
1,666		 666
1,685		 685
560		 5,975
Net book value




At 31 July 2023 4,647 647
3,594		 594
102		 102
101		 8,444
At 31 July2022 4,778 4,778
3,762		 3,762
230		 230
61		 8,831

Working Men’s College Corporation 59

Notes to the Financial Statements Year to 31 July 2023

9 Listed investments

Listed investments
Unrestricted
Restricted		 Restricted Endowment
assets assets assets Total
£’000 £’000 £’000
£’000		 £’000
Market value of listed investments
At 1 August 2022 82 3,391 3,391
2,308		 5,781
Appreciation in value of investments 55 21 21
50		 126
Reclassification of reserves 2,957 (2,957) - -
Total portfolio value at 31 July 2023 3,094 455 2,358 5,907
Cost of listed investments at 31 July 2023
1,962		 234 234
1,460		 3,656
Total net unrealised gains at 31 July 2023 included
above 1,132 221 221
898		 2,251
Analysis of total portfolio value
Pooled investment vehicles 5,907

At 31 July 2023, listed investments included the following holding deemed material when compared with the overall portfolio valuation as at date:

overall portfolio valuation as at date:
Market % of
value portfolio
£’000 value
Newton Growth and Income Fund for charities
5,907		 100%

10 Investment Property

10 Investment Property
2023 2022
£’000 £’000
At 1 August: 1,725 1,650
Revaluation of investment property (225) 75
At 31 July 1,500 1,725

The College owns the freehold of the property immediately adjacent to the main college building in Crowndale Road. The building is not used for the delivery of education and is let out as residential accommodation on a commercial basis. The net revenue generated is applied to the charitable purposes of the College.

Working Men’s College Corporation 60

Notes to the Financial Statements Year to 31 July 2023

11 Trade and other receivables

11 Trade and other receivables
2023 2022
£’000 £’000
Amounts falling due within one year:
Trade receivables 23 45
Prepayments and accrued income 496 154
Other debtors 85 234
604 433

12 Creditors: amounts falling due within one year

12 Creditors: amounts falling due within one year
2023 2022
£’000 £’000
Bank loans (note 14) 101 96
Payments received in advance 161 121
Trade payables 77 205
Other taxation and social security 98 75
Accruals and deferred income 265 217
Deferred income – government grants (capital) 528 156
Amounts owed to funding bodies 130 212
Other creditors 83 67
1,443 1,149

13 Creditors: amounts falling due after more than one year

2023 2022
£’000 £’000
Bank loans (note 14) 432 533
Deferred income – government grants (capital) 2,519 1,950
2,951 2,483

Working Men’s College Corporation 61

Notes to the Financial Statements Year to 31 July 2023

14 Maturity of debt

14 Maturity of debt
2023 2022
£’000 £’000
Bank loans are repayable as follows:
In one year or less 101 96
Between one and two years 107 101
Between two and five years 314 338
In five years or more 11 94
**Total ** 533 629

The College took out an unsecured loan in 2007 to support phase 1 of the Crowndale Road building refurbishment. The loan is at a fixed rate of 5.485% and repayable by equal quarterly instalments from 3 December 2007 to 1 December 2027.

A second unsecured loan was taken out in 2011 to support the second phase of the Crowndale Road building refurbishment. The loan is at a fixed interest rate of 5.73% and repayable by equal quarterly instalments from 14 November 2011 to 14 August 2028.

15 Notes to cash flow statement

15 Notes to cash flow statement
2023 2022
£’000 £’000
(Deficit) after tax for the year (156) (173)
Adjustment for:
Losses / (gains) on investments 99 (57)
Interest payable 36 37
Interest receivable - (1)
Investment income (154) (127)
Depreciation 653 690
Operating cash flow before movements in working capital 478 369
(Increase) / decrease in debtors (171) (253)
Increase / (decrease) in creditors (83) (172)
Release of capital grants (157) (180)
Cash inflow /(outflow) from operations 67 (236)

16 Analysis of changes in net debt

1 August 1 August 31 July
2022 Cash flows 2023
£’000 £’000 £’000
Cash at bank and in hand 403 921 1,324

Working Men’s College Corporation 62

Notes to the Financial Statements Year to 31 July 2023

17 Commitments under operating leases

At the reporting end date the College had outstanding commitments for future minimum payments under non-cancellable operating leases, which fall due as follows:

2023 2022
£’000 £’000
Amounts due:
Within one year - -
Between one and five years 14 3
14 3

18 Capital commitments

18 Capital commitments
2023 2022
£’000 £’000
Capital commitments:
Contracted for but not provided at 31 July 309 -
Authorised but notyet contracted for at 31 July 96 -

19 Retirement benefits

The College’s employees belong to two principal post-employment benefit plans: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and a College Group Personal Pension Scheme for non-teaching staff which is managed by Aviva. The TPS is a multi-employer defined benefit scheme and the group personal pension scheme is a defined contribution scheme. No defined benefit pension liability arises as a result of contributions to the Group Personal Pension Scheme.

The TPS pension costs are assessed in accordance with the advice of independent qualified actuaries. Prior to 31 August 2023, the latest actuarial valuation of the TPS was at 31 March 2016. A further valuation of the TPS, relating to the period ended 31 March 2020 was published in Oct 2023.

2023 2022
Totalpension cost for theyear £’000 £’000
Teachers’ Pension Scheme - contributions paid 513 438
Group personal pension scheme – contributions paid 71 65
Total pension cost for year withinstaffcosts (note 5) 584 503

Working Men’s College Corporation 63

Notes to the Financial Statements Year to 31 July 2023

19 Retirement benefits (continued)

Contributions amounting to £68,000 (2022 - £ 56,000) for the TPS and £7,000 (2022 - £ 6,000) for the group personal pension scheme were 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.

Teachers’ Pension Scheme

The Teachers' Pensions Scheme (TPS) is a statutory, contributory, 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 automatic for teachers and lecturers at eligible institutions. Teachers and lecturers are able to opt out of the TPS.

The TPS is an unfunded scheme and members contribute on a 'pay as-you-go' basis – these contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Act. Retirement and other pension benefits are paid by public funds provided by Parliament.

Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The college is unable to identify its share of the underlying assets and liabilities of the plan.

Accordingly, the college has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The college has set out above the information available on the plan and the implications for the college in terms of the anticipated contribution rates.

Valuation of the Teachers’ Pensions Scheme

The valuation of the TPS is carried out in line with regulations made under the Public Service Pension Act 2013. Valuations credit the teachers’ pension account with a real rate of return assuming funds are invested in notional investments that produce that real rate of return.

The actuarial valuation of the TPS which applied during the year ended 31 July 2023 was carried out as at 31 March 2016. The valuation report was published by the Department for Education (the Department) in April 2019. The valuation reported total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218 billion, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £198 billion giving a notional past service deficit of £22 billion.

As a result of the valuation, new employer contribution rates were set at 23.68% of pensionable pay from September 2019 onwards (compared to 16.48% during 2018/9). DfE has agreed to pay a teacher pension employer contribution grant to cover the additional costs.

Working Men’s College Corporation 64

Notes to the Financial Statements Year to 31 July 2023

19 Retirement benefits (continued)

Valuation of the Teachers’ Pensions Scheme (continued)

The latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The valuation result is due to be implemented from 1 April 2024, from this date employer contribution rates will increase to 28.68% (including a 0.08% administration levy).

A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website.

The pension costs paid to TPS in the year amounted to £513,000 (2022 – £438,000).

20 Events after the reporting period

On the 2 October 2023, the College Board passed a board minute reclassifying £2,957,000 of restricted reserves as unrestricted reserves. These reserves related to the sale of the College playing fields in the 1990s and with the College no longer owning any playing fields and having followed due process including taking professional advice and a review of Board minutes and other supporting documentation, no reason could be found to retain these reserves as restricted. Appropriate adjustments have been made in the financial statements for the year to 31 July 2023. There are no other events after the reporting period which would have a material impact on the financial statements and require either adjustment or disclosure.

Working Men’s College Corporation 65

Notes to the Financial Statements Year to 31 July 2023

21 Endownment funds

21 Endownment funds
Permanent Expendable Total
£’000 £’000 £’000
At 1 August 2022 304 304
2,004		 2,308
Appreciation of endowment asset investments 7 7
43		 50
At 31 July 2023 311 311
2,047		 2,358
Representing
Prize funds 103 103
-		 103
Library funds 162 162
-		 162
Other funds 46 46
2,047		 2,093
311 311
2,047		 2,358
Permanent Expendable Total
£’000 £’000 £’000
At 1 August 2021 305 305
2,011		 2,316
Appreciation of endowment asset investments (1) (7) (8)
At 31 July 2022 304 304
2,004		 2,308
Representing
Prize funds 101 101
-		 101
Library funds 158 158
-		 158
Other funds 45 45
2,004		 2,049
304 304
2,004		 2,308

22 Related Party Transactions

Due to the nature of the College's operations and the composition of the Governing Body, 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 Governing Body 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.

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 2023 was £1,869 (2022 - £1,128) and provides cover of up to a maximum of £2 million for all claims during a year.

Working Men’s College Corporation 66

Notes to the Financial Statements Year to 31 July 2023

24 Members’ liability

Every member of the Governing Body 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 Learner support funds

25 Learner support funds
2023 2022
£’000 £’000
Amount disbursed as agent:
Opening balance as at 1 August 61 53
Repaid to EFSA in year - (8)
Release of funds (6) -
Funding Body Grant - Bursary 2 18
57 63
Disbursed to students (7) (1)
Area uplift re Adult Learning Loans - (1)
Balance unspent as at 31 July 50 61

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.

Working Men’s College Corporation 67