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2021-08-31-accounts

BCNO LIMITED

(A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL)

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021

COMPANY NUMBER: 562119 CHARITY NUMBER: 312907

BCNO LIMITED

CONTENTS

Page
Statutory Information 2
Report of the Governors 3 - 16
Report of the Independent Auditors 17 - 19
Statement of Financial Activities 20
Balance Sheet 21
Statement of Cash Flows 22
Notes to the Financial Statements 23 - 38

BCNO LIMITED

STATUTORY INFORMATION

Also known as: British College of Osteopathic Medicine (BCOM) and
British College of Naturopathy and Osteopathy (BCNO)
Constitution: A company limited by guarantee, not having a share capital,
and governed by a Memorandum and Articles of
Association
Company Number: 562119
Charity Number: 312907
Governors: Ms P Christie
Dr F R Heathcote CBE (Chair of the Board of Governors)
Mr K W Jager (resigned 22 January 2021)
Mr H Kidd
Mr M Mehta
Mr M J Morgan
Mr J A Newell (resigned 28 July 2021)
Ms K O’Callaghan-Brown
Dr A C Sautelle
Dr K J Rolfe
Ms D Hayes
Ms T N Ogwezi
Mr S Milton
Dr M Rajput-Ray (resigned 22 September 2020)
Mr D Rajendran (appointed 13 June 2021)
Principal: Dr K J Rolfe
Company Secretary: Dr K J Rolfe
Registered Office: Frazer House
6 Netherhall Gardens
Hampstead
London NW3 5RR
Bankers: National Westminster Bank Plc
PO Box 7008
106 Finchley Road
Hampstead
London NW3 5JF
Auditors: Mazars LLP
6 Sutton Plaza
Sutton Court Road
Sutton
Surrey, SM1 4FS
Solicitors: Mills & Reeve
Botanic House
100 Hills Road
Cambridge CB2 1PH
Investment Managers: JM Finn & Co.
4 Coleman Street
London EC2R 5TA

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BCNO REPORT

Chairman’s Report for the year ended 31 August 2021

The last year, beginning on the 1[st ] of September 2020 has been a significant year for BCNO Ltd, which has seen all members of the BCNO community work extremely hard. Our students have had to contend with pursuing their careers and education during a pandemic which has created particular problems for education in a “clinical setting”. The fact that we have been able to provide them with uninterrupted practical teaching is the consequence of the hard work of all of our staff, who have been able to deliver to the students high quality teaching and tutoring with real patients in a safe setting. Indeed, we were able to do this with very few “Covid” interruptions, something that all concerned should be very proud of. As a result, our students, who have dealt admirably with the extra challenges that Covid presented, have earned commendably strong examination results and our 2021 Graduation class should look back on their time at BCOM with pride at what they have achieved. It was also noteworthy that we received a 100% satisfaction rating through the National Student Survey which was due to the hard work of all staff both academic and support staff

This has been an especially significant year for BCNO Ltd in that it saw the successful conclusion of the merger with Osteopathic Education and Research Limited (the European School of Osteopathy (ESO)) in the autumn of 2021 and the following months have seen considerable activity at Board and Executive level in planning the way forward for both Schools. The merger was legally completed on the 31[st ] of August 2021 and a new Board was formed under the auspices of BCNO Ltd to run both the ESO and BCOM at their respective sites in Maidstone and Finchley Road. I wish to express my gratitude to those Trustees who did not go forward to the new Board and who gave many years of loyal support to BCOM which was such an important part of their lives. Thank you all.

I will continue to be a Trustee until September 2022 to support the newly appointed Chair, when after more than 18 years involvement I will be standing down from the Board. I will do so looking to the future knowing that we have a stronger financial business with which to build new academic programmes and overseas partnerships whilst retaining our independence and continuing to deliver our Charitable objectives in the best way we can.

Dr F R Heathcote

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

The Governors present their report together with Financial Statements for the Year Ended 31st August 2021. The following statements appear in the format required by the Statement of Recommended Practice for Accounting and Reporting by Charities (Charities SORP (FRS 102)). This report and accompanying statements also comply with the Companies Act 2006. BCNO Ltd has no share capital and is a registered charity with a limited guarantee of £5 per member. The governing document of BCNO Ltd is the Memorandum and Articles of Association of the company, reviewed in 2010, and members of the Board of Governors are the Directors of the company. The members of the Board of Governors are also the Trustees of BCNO Ltd.

a) Structure, Governance, and Management

The College is governed by the Board of Governors, which comprises not less than twelve or more than twenty-four persons. Governors serve for between one and four years and may be re-elected. New members are recruited via the Nominations Committee according to expertise and experience to complement and balance those of the existing Governors. The Governors appoint the Chair and Officers from the membership. The Board convenes at least three times a year (there were five meetings during 2020/21) and considers reports, which are standing agenda items, from the Standing Committees that are comprised of:

The Board also considers the general policy direction, Risk Assessment, and Strategic Plan. Each of the Standing Committees have their own Terms of Reference that are detailed in the document "Committee Structure of BCOM." Subcommittees of the Standing Committees are organised to support the function of the College in the various specialised areas of its function. The student body representatives and elected Staff Representative have an invitation to each Board meeting.

On appointment, each Governor is given an Induction Pack that includes:

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

a) Structure, Governance, and Management (continued)

The Principal reports on the performance against Operational and Strategic Plans approved by the Governors, and the Chair of the Finance and Administration Committee reports on the financial position and budget aims. Management Accounts and Reports are produced every 4 months for the Board, monthly for the management team, and each Finance & Administration Committee meeting.

Board of Governors (BOG) and Standing Committees

The members of the Board of Governors who held office during the year are listed on page 2. The Standing Committee membership details are shown in Figure 1, where the initials refer to the names on page 2.

Figure 1. Chart of the Governors membership of the Standing Committees

Finance
& Admin		 Academic
Board		 SMG Audit Nominations Remuneration Ethics* SMG
Appraisal
Frequency 3 2 12 2 1 1 1 1
PC �
FRH � Chair Chair Chair
KWJ � �
HK Chair � �
MM � Chair � �
MJM � Chair
JAN
KO'B � � �
ACS �
DH � �
SM
TO
KR � � Chair � � ** � � **

Initials correspond to the names of Governors on page 2 *Ethics chaired by an external ** Except when KR salary is being reviewed, or KR is being appraised

The membership of the Finance & Administration Committee also includes the following employees:

The membership of the Academic Board also includes the following members:

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

a) Structure, Governance, and Management (continued)

The members of the Standing Committees are nominated in accordance with the provisions of the Memorandum and Articles of Association, according to the Committee Structure of BCOM, and their position within the College.

Risk Assessment and Register

The Governors are responsible for maintaining a sound system of internal control to safeguard the College's assets. The structures of internal control are designed to provide reasonable, but not absolute, assurance against material mis-statement or loss. The College has established an ongoing process for identifying, evaluating, and managing the College's key risks (see also below under Statement of Principal Accounting Policies – Risk Management Policy).

In particular, there are clear procedures for:

The Board normally reviews the Risk Register within the guidelines of the Risk Management Policy and Procedures at each meeting and adjusts the potential impact as appropriate. Each element of risk is assessed at appropriate Board meetings, each quarter or each year, depending on the potential severity of impact and the cycle of events through the academic and financial year and according to the product of the likelihood of occurrence and the perceived impact on the charity. Each component is rated out of ten and the products are listed in descending order. The Governors are then in an appropriate position to judge the overall impact and therefore, the distribution of means and resources to offset the individual risk. The Board considers as a key theme, the minimisation of exposure to risk without becoming overly risk- averse which could result in an inability to develop along academic, clinical, research, or infra-structural routes.

The Finance and Administration and the Audit Committees, on behalf of the Governors, review the effectiveness of the systems of internal controls operated by the College and of the financial planning, forecasting, and management. Historically sound financial planning, management and investment, freehold ownership of both Frazer and Lief Houses, and financial investments have enabled the College to withstand the challenging recent environment.

Three major risks have been identified which include:

  1. Failure to recruit adequate Undergraduate student numbers. While this is a critical risk it is being managed with strong UK recruitment diluting the impact of challenging global markets. Further challenge to come with Brexit and Sector stability. Risk control is being managed and by Senior Leadership market evaluation and Internal performance.

  2. Competition from existing European osteopathic training institutions and universities due to UK changes to student funding/BREXIT - limited incentives, lack of degree recognition and funding for European students to study in England. Measures are in place to monitor, develop new marketing ideas, and consideration within financial planning.

  3. Removal of validation rights. The reason the risk is so high, is due to our ability to deliver a degree qualification. No current evidence of any increase risk, having historically managed a good relationship with our validator. Further evidence of managing this risk is through the annual QA cycle.

Management, Staffing, and Staff Development Activity

The role of planning and developing the management of staff falls to the Principal and the management team operating within the guidelines of the Board. The function of the College determines that the focus of the human resource will be academic and clinical, but together with the essential administrative support team to ensure efficient management and financial controls. The Principal, therefore, ensures that

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appropriately qualified and experienced academic staff are recruited and that they are supported by an equally well qualified and experienced support staff. The number and specific experience of the staff are determined by the requirement of the teaching (the Student-Stafft Ratio is 5:1) and administrative support mechanisms.

Staff members are a key asset to the College and, as such, are supported by the College to develop both as individuals and as employees of the College. The College organises staff development through the Staff Development Allocations Committee (SDAC) which reviews staff applications and Line Manager proposals. The SDAC committee considers the proposed applications regarding the College’s needs, the position of the staff member within the College, the full-time equivalence of their contract, and the cost/benefit ratio of the proposal.

The Payroll Co-ordinator chairs SDAC, and individual Line Manager input is required for SDAC applications. During 2020/21, SDAC distributed £477.00 in direct funding for staff development.

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

a) Structure, Governance, and Management (continued)

The Philo Trust generously supports part of the naturopathic work conducted at BCOM.

b) Governors Responsibilities

Nolan Principles

The Governors abide by the Nolan ‘Seven Principles of Public Life'; Selflessness; Integrity; Objectivity; Accountability; Openness; Honesty, and Leadership, which are enshrined within the Charity Commission's code of good practice, a guiding principle of the College's function.

Academic and Professional Relationships

The College maintains academic and professional relationships with those institutions that respectively academically validate (University of Plymouth), regulate (Office for Students (OfS)), General Osteopathic Council (GOsC)), and accredit ( General Council & Register of Naturopaths (GCRN)) professional activity.

The University of Plymouth, the validating University, reviews the degrees on an Annual Monitoring basis as well as by a full revalidation review at the appropriate interval. The Annual Monitoring involves reporting to the University at the conclusion of each academic year on a Module by Module, Review of Performance, Student Progression, Student feedback, and final degree outcome basis. The written reports include a comment on the External Examiners Reports and Self Evaluation of the various areas of College function. The College successfully complied with all of the Annual Monitoring requirements of the validating University during the academic year. Further, the Masters in Osteopathy was successfully revalidated in December 2015; following discussion with the University of Plymouth and external examiners in relation to over assessing the BCOM students and coming in line with Plymouth University module structure and regulations.

The professional bodies accredit the professional and clinical elements of the degrees. These are the statutory GOsC and the private GCRN. The GOsC requires Annual Reports and up to five years Recognised Qualification (RQ) review organised and processed through the Quality Assurance Agency (QAA) for higher education. The Review Report was approved in July 2018 as an "RQ without Conditions." This was the third time in succession that the College has received this result.

Following BCOMs registration with the OfS in 2018, the College underwent a Quality and Standards Review (QSR) in 2019. The report was received in January 2020, and BCOM appears compliant with confirmation from the OfS.

c) Principal Activities and Achievements for the Year

Areas of Activity

The objectives of the College are to:

There has been no change in the objectives of the College.

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

The continuing pandemic of Covid-19 continued to bring changes to teaching and the clinical aspects of the College work. Due to osteopaths being recognised AHP students were allowed onsite but only for hands-on practical classes and the cohorts were restricted to mixing and working in ‘bubbles’. The teaching clinic ran throughout the period with the appropriate PPE and risk assessments. Academic lectures continue online. However, during the summer term with restrictions lifting BCOM moved to face- to-face assessments with all the required restrictions in place.

Public Benefit Statement 2020-21

The College places the provision of a quality teaching clinic at the core of its educational activities. Located at the same site in Hampstead, London NW3 since 1953, the College has strong links with the diverse residential and business population of Camden. The College's principal charitable functions are therefore twofold: firstly, the provision of high-standard, low-cost, and/or free osteopathic and naturopathic healthcare to the population of London (and surrounding areas); secondly, degree-level osteopathic education for students from all backgrounds, the quality of which was again recognised in 2017 when the College was awarded a landmark "approval without conditions" recognition for the third successive time by the QAA review team.

With regard to charitable work within healthcare, the College cites the following activities: patients treated without a direct fee (those unable to pay via the Private Clinic); patients treated on low fees (compared to private practice); free Children's Clinic, well promoted to local schools and parents; publication and distribution of free health information on osteopathic and naturopathic healthcare. The College, through its students and tutors, also supports a local homeless charity with treatments. Osteopathic and Naturopathic treatment includes dietetic and lifestyle advice as part of the patient empowerment component of the treatment strategies. With regard to charitable work within education, the College cites the following activities: running a Higher Education Institution with full-time students following a sophisticated schedule of learning and assessment; undertaking and dissemination of research by staff and students; publication of peer-reviewed articles; maintaining an academic library; bursary support for students; support for academic and teaching development of staff and a mentoring relationship with overseas institutions to develop the international presence of osteopathy.

The Governors declare that they have complied with the duty set out in Section 17 of the Charities Act 2011 to have due regard to Public Benefit Guidance published by the Charity Commission.

Academic and Professional

During the academic year the following numbers of students were recruited to and completed the corresponding year of the Masters in Osteopathy four year HEFCE funded course:

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BCNO LIMITED

REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

Year A B C D E F G
1 39 31 0 2 1 3 2
2 21 17 0 0 2 1 1
3 22 18 0 2 0 0 2
4 19 19* 0 0 1 0 2**
Total 101 85 0 4 4 4 5

Note due to the Covid-19 pandemic a number of students were awarded an extended referral

A = Number of students enrolled at the start of the year

B = Number of students completing and progressing to the subsequent year/graduating

C = Number of students who withdrew before the end of the year

D = number of students interrupting studies

E = Number of students re-sitting the year

F = Number of students referred in the year and did not return

G= Number of students with extended referral

*includes a student who was on maternity leave and just returned for their final clinical assessment

** extended referral from previous year but graduated in time

c) Principal Activities and Achievements for the Year (continued)

c)
Principal Activities and Achievements for the Year (continued)
Degree: Number
Masters in Osteopathy (MOst)* 19
Bachelor of Osteopathic Medicine (BOstMed) 2
Bachelor of Science ordinary degree 1
Diploma in Naturopathy (4 years) confers GCRN registration eligibility Number
Diplomates in Naturopathy 21

The post-basic training BSc (Hons) Osteopathy Conversion degree enrolled one cohort:

All eight BSc(Hons) for Diplomates completed their studies.

Key Performance Indicators (KPI's)

The College annually monitors the progression of students by cohort and for the individual module; both are compared to previous cohorts over the last five years. Further, the College assesses the key performance indicators for each module for the validating University. The University of Plymouth has a KPI of 90% progression rate however as agreed by the external examiners, the clinical nature of the course makes this progression rate difficult to achieve particularly in year 1 (level 4).

Clinical

The Clinic has continued to fulfil its charitable objectives with a large percentage of patients either treated on a concessionary basis or free of charge. There has also been a continuation of our charitable provision, with an off-site massage service run by student volunteers at a local homeless day centre. The Clinic fees continue to be substantially below private fees; a small surcharge was added to help cover the cost of PPE when the Clinic reopened after the Covid lockdown. There has been a level of demand during the pandemic. Measures to make the Clinic 'Covid-secure' have been expensive; the cost of PPE and increased cleaning has been significant.

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

The following numbers of patients were treated at the Frazer House Clinic:

New patients
Treatments
Total		 Number
1226
6280
7506

The College continued to efficiently support the clinical students, including guidance on research and selfdirected learning for the clinical years three and four projects and audit logs. The graduating cohort consisted of 20 students. The FCCA returned for the year 4 clinical assessment with all the relevant PPE and social distancing in place.

All students were successful in their final clinical assessments, one student returned after their maternity leave, and two other students who had extended referrals also graduated.

The College continues to run a private fee-paying clinic ('non-training Clinic). This provides both osteopathy and soft tissue massage, although soft tissue massage was again not allowed during Lockdown-2. Graduate practitioners provide osteopathy treatments at £40/per session. Soft tissue massage is provided by current students, with their massage insurance, on a self-employed basis. Massage sessions cost £45 for 1 hour and £25 for 30 mins; prices and times were amended when the Clinic reopened after Covid-19 to allow for increased costs due to PPE and a conservative approach to massage appointment length. The non-training Clinic has proved very successful.

Research

The College continued with the important activity of research over the 2020/21 academic year. The research facilities were used to support teaching activities as well providing for publications in research journals.

Members of the BCOM Research Team maintain memberships in learned societies, including the Royal Society of Medicine. These memberships were in part, supported by the College.

The research completed and presented in 2020/21 includes journal articles, and lay articles.

Elliott BJ, Hookway N, Tate BM, Hines MG. Does passive hip stiffness or range of motion correlate with spinal curvature and posture during quiet standing? Gait Posture, 2021: 85: 273-279.

Woollard, A. Lichtman, J.W., Rolfe, K.J., et al. Neuromuscular reinnervation efficacy using a YFP model. J Plast Reconstr Aesthet Surg 2021: 74(3):569-580

Rolfe K.J. The role of osteopathy in musculoskeletal injury and health-related quality of life (EQ-5D) in a teaching clinic. In preparation

Information Dissemination – The Website, Prospectus, and Clinic information

The website of the College performs diverse functions. It has a primary role in the publication of the activities of the College and as a source of information to prospective students and researchers and members of the public seeking Osteopathic and Naturopathic treatment support.

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

The Clinic produces a series of information pamphlets and fliers that give brief, focused information about the clinics offered by the College, as well as information about the more common clinical presentations and what the treatment might involve. These are seen as educational as well as informative and enable prospective patients the opportunity to preview their clinical experience. The Head of Research wrote or researched information for a number of publications or organisations.

The Head Librarian and staff send regular summaries of interesting articles to faculty and students.

Resources

The College maintains two linked freehold buildings of Frazer and Lief Houses as the centre of its operations in Hampstead in the London Borough of Camden. Lief House was in part rented to the NHS in November 2019 while maintaining a research laboratory and an air-conditioned practical room. Frazer House includes the 120 seat tiered lecture theatre, additional teaching space, the clinic facility, library, recreational space and, staff office space. The research laboratory was moved, and on the move, the new laboratory was refurbished. All areas of the College are interconnected via the server led computer system enabling efficient communication via email or telephone contact.

Future Plans for 2021/22

The following key objectives for 2021/22 are:

4.1 Educational Development and Core Competencies

a) To ensure that all of our students reach their full potential, the delivery of the highest quality academic service is a key priority.

This will be achieved by ensuring that the course is of a high quality and is delivered in a professional manner, in appropriate surroundings.

This will be achieved through the provision of an online staff appraisal/performance review system. This will enable us to utilise and promote industry leading staff development and training standards, underpinned by a staff development strategy driven by our Senior Management Team.

The International Department will continue to seek new collaborations with international partners.

We recognise that the Brexit vote does introduce a level of uncertainty in this area of the business and we will continue to monitor the situation closely

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

d) In order to deliver a benefit to society the School will aim to grow the commercial success of the clinic whilst maintaining our charitable activities and delivering charitable benefit.

The focus for 2021/22 will be to increase the number of patients using this facility, through increased use of social media, increased marketing activity and a wider more proactive engagement with the local community and health care provider

e) Research

The research direction of the School over the next 3 – 5 years will be determined in consultation with the Research and Ethics Committee, designed to make the best use of existing expertise and reflecting the mission of the School.

e) Review of the Financial Position

Donations

The College has been fortunate to receive a number of bequests and donations over the years. There is, however, one Trust that has shown remarkable and consistent loyalty to the College over many years and has consistently donated funding. The Philo Trust who donated £8,000 during this financial year to the College. The College has been enormously grateful for their past support from the Philo Trust.

Fixed assets

Historically, the policy of the Governors has been to carefully manage the College's funds so that necessary expansion can be logically planned and funded from the College's resources. The accumulated assets of the College are considered sufficient to cover all commitments of the College. The current favourable interest rates make borrowing advantageous at present. The decision taken by the Governors was to borrow to finance the extension of Frazer House and to liquidate assets at more favourable rates to service the loan. In August 2013, the College obtained a working capital loan facility for £507,500 and drew £257,500 to fully repay the existing overdraft and settle the arrangement fee of £7,500. The remaining £250,000 was drawn down in 2013-14. The working loan was renegotiated in August 2018 and came into force in September 2018. The amount outstanding on both loans stood at £801,220 at 31 August 2021. The charges necessary to maintain this loan have been included in the budgeted costs for the forthcoming financial years. Due to the Covid-19 situation, the bank granted the College a Capital repayment holiday for 12 months from April 2020. Lief House was revalued, and part rented in November 2019 to the NHS.

Results

The financial statements reflect the importance placed by the Governors on sound financial planning and control.

Student fees, income from the Clinic, and related income from charitable activities totalled £1,443,611. Expenditure on charitable activities was £1,518,861. With the inclusion of donations and income from investments, BCOM ended the year with a net loss of £145,264.

Both Frazer House and Lief House are used for the principal objects of the College. The other main assets of the College are the investment portfolios, and the bank balances that the Governors regard as adequate to meet the College's plans and financial commitments for the foreseeable future. This policy has been reviewed in the short term due to prevailing market values (see Fixed Assets above).

In the opinion of the Governors, the financial statements comply with current statutory requirements and with the requirements of the College's Memorandum and Articles of Association.

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BCNO LIMITED

REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

f) Statement of Policies

Reserves policy

The College maintains a number of reserves. These are broadly split into:

Unrestricted funds

These funds are expendable at the discretion of the Governors and are used in the furtherance of the College's objects. The Governors have earmarked certain funds for specific projects or purposes, and these are described as designated funds.

The unrestricted funds of the School amounted to £3.18m as at 31 August 2021 (£3.3m 2020) with these being fully employed through investment in freehold property and fixed assets. The School’s overdraft facility is utilised to ensure there are sufficient funds available to meet the working capital needs and to smooth out the timing of income receipts and expenditure.

Restricted funds

The restricted funds were established because the College has received income which may only be spent in a certain way (restricted by the donor or terms of the appeal) or under certain conditions. These funds can only be expended according to the specific terms of the donor.

For a detailed description of the designated and restricted funds, see the principal accounting policies on pages 22 to 26 of the financial statements.

The College's policy on borrowing is to minimise the cost while maintaining the stability of the College's position by sound debt management techniques. Any surplus or deficit is dealt with by an appropriate transfer to or from other unrestricted funds.

Investment policy

The overriding principle guiding the investment of surplus cash balances is the preservation of the capital value of the College's resources. The objective for investment or lending purposes is to achieve the best possible return while minimising risk. The College's policy on borrowing is to minimise the cost while maintaining the stability of the College's position by sound debt management techniques.

Risk management policy

The Governors are responsible for maintaining a sound system of internal control to safeguard the College's assets.

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. The College has established an ongoing process for identifying, evaluating, and managing the College's key risks.

In particular, there are clear procedures for:

The Finance and Administration Committee, on behalf of the Governors, regularly review the effectiveness of the system of internal control operated by the College. The Governors review the Risk Management Policy and Procedures and resulting Risk Register at each Board meeting.

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

Going concern position

The College has been in negotiation with the European School of Osteopathy (Osteopathic Education and Research Limited) to merge in the 2021 academic year. The Principals from both schools have been in discussion concerning the merger for a number of months and both Boards believe this merger will strengthen the position of both Institutions and osteopathic education more generally for current and future students. As set out in accounting policy 1(b), the financial statements are prepared on a basis other than as a going concern.

The cash flow reports are presented to the Finance & Administration Committee, which has been assigned with the task of ensuring the sound management of the College's finances. The Committee reports its findings to the Board. Having followed this process and given the merger intentions reported above, the Board is satisfied with the College's Going Concern position.

Statement of Governors' responsibilities for the financial statements

The Governors (who are also directors of BCNO Limited for the purposes of company law) are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Governors to prepare financial statements for each financial year. Under that law, the Governors have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each of the Governors is aware:

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REPORT OF THE GOVERNORS (INCLUDING THE STRATEGIC REPORT) YEAR ENDED 31ST AUGUST 2021

BCNO LIMITED

Liability of members

Each member has agreed to contribute an amount not exceeding £5 in the event of the charitable company being wound up. AXA Insurance has provided directors and officers liability with a limit of indemnity of £2,000,000, including costs.

Auditors

Mazars LLP have been appointed as auditors in accordance with section 485 (4) of the Companies Act 2006.These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

On Behalf of the Board

R H Kidd

Mr R H Kidd Director

Date: 20 July 2022

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REPORT OF THE INDEPENDENT AUDITORS YEAR ENDED 31 August 2021

BCNO LIMITED

Independent Auditor’s Report to the members of BCNO Limited

Opinion

We have audited the financial statements of BCNO Limited (the ‘charity’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity 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 trustees’ 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

17

REPORT OF THE INDEPENDENT AUDITORS YEAR ENDED 31 August 2021

BCNO LIMITED

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 light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

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

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the 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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, noncompliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

18

BCNO LIMITED BCNO LIMITED

STATEMENT OF FINANCIAL ACTIVITIES REPORT OF THE INDEPENDENT AUDITORS YEAR ENDED 31 August 2021

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

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

Use of the audit report

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

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS

Date: 25[th] July 2022

19

BCNO LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 August 2021

2021
Unrestricted
funds
Restricted
funds
Note
£
£
Income from:
Donations and legacies
2
1,222
8,000
Charitable activities
3
1,392,077
-
Investments
4
457
-
Other income
5
41,855
-
Total income
1,435,611
8,000
Expenditure on:
Investment management costs
6
600
-
Charitable activities
7,8
1,506,019
12,842
Total expenditure
1,506,619
12,842
Net gains/(losses) on investments
(Losses) on investment property
15
14
20,586
(90,000)
-
-
Net (expenditure)
(140,422)
(4,842)
Transfers between funds
18,566
(18,566)
Net movement in funds
21
(121,856)
(23,408)
Reconciliation of funds:
Total funds brought forward
21
3,304,066
1,713,644
Total funds carried forward
21
3,182,210
1,690,236		 Total
£
9,222
1,392,077
457
41,855
1,443,611
600
1,518,861
1,519,461
20,586
(90,000)
(145,264)
-
(145,264)
5,017,710
4,872,446		 2020
Total
£
8,000
1,214,302
1,352
39,902
1,263,556
600
1,489,146
1,489,746
(1,572)
-
(227,762)
-
(227,762)
5,245,472
5,017,710

All income and expenditure derives from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

The notes on pages 23 to 38 form part of these financial statements.

20

BCNO LIMITED COMPANY REGISTRATION NUMBER: 562119

BALANCE SHEET AT 31 August 2021

Note
Fixed assets
Tangible assets
Investment Property
13
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one year
17
Net current (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than one year
18
Net assets
Charity Funds
Restricted funds
21
Unrestricted funds
21
Total charity funds		 2021
£
2,682,642
2,925,000
-		 2020
£
2,761,386
3,015,000
79,292
5,607,642
29,322
269,274		 5,855,678
78,407
47,226
298,596
(1,033,792)		 125,633
(963,601)
(735,196) (837,968)
4,872,446
-		 5,017,710
-
4,872,446 5,017,710
1,690,236
3,182,210		 1,713,644
3,304,066
4,872,446 5,017,710

The financial statements were approved and authorised for issue by the Board on 20 July 2022

These financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Signed on behalf of the board of trustees

R H Kidd

Mr R H Kidd

Director

The notes on pages 23 to 38 form part of these financial statements.

21

BCNO LIMITED COMPANY REGISTRATION NUMBER: 562119

STATEMENT OF CASH FLOWS YEAR ENDED 31 August 2021

Note
Cash flow generated from / (used in) operating activities
23
Net cash flow provided by operating activities
Cash flow from investing activities
Interest received
Listed investment income
Interest payable
Proceeds on disposal of investments
Decrease/(increase) in cash held for investments
Net cash flow generated from (used in) investing activities
Cash flow from financing activities
Repayment of long term loans
Net cash flow used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 August		 2021
£
168,768		 2020
£
(183,164)
168,678
18
439
(16,827)
94,941
4,937
83,508
(30,138)
(30,138)
222,048
47,226
269,274		 (183,164)
388
964
(20,116)
-
(364)
(19,128)
(31,339)
(31,339)
(233,631)
280,857
47,226
269,274
269,274		 47,226
47,226

The notes on pages 23 to 38 form part of these financial statements.

22

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

1. Summary of significant accounting policies

(a) General information and basis of preparation

BCNO Limited is a registered Charitable Company Limited by Guarantee in the United Kingdom. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are to provide education, research and support in philosophy, science and clinical application of holistic osteopathy and naturopathy within the UK and throughout the international community.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Going concern

As set out in note 25, on 1[st ] December 2020 the Trustees voted to merge the college with European School of Osteopathy (Osteopathic Education and Research Limited) whose Trustees also voted in favour of the merger on 15[th ] December 2020. It is the intention of the colleges that the merger will be completed by 1[st ] September 2021.

Under the current proposed terms of the merger a new legal entity will be formed and both colleges will transfer all trading activities, assets and liabilities at the transfer date into the new entity leaving the existing legal entities as dormant companies.

As the company is intending to transfer all its trading activities assets and liabilities to a new legal entity within 12 months of these financial statements being approved, the company does not technically meet the criteria for preparing financial statements on a going concern basis and as a consequence these financial statements have been prepared on a basis other than as a going concern. As part of the merger process the Trustees have considered financial forecasts and cashflows and are satisfied that the new merged entity will be financially robust and no creditor or third party will suffer financial loss as a result of the merger.

Under the terms of the current loan agreements the current finance facilities will fall due on the merger date and long term debt has been moved to current liabilities. Having had discussion with their finance providers about the merger the Trustees are satisfied that they will be able to replace the banking facilities with similar facilities in the new entity.

Although the Boards have voted to merge, there remains the possibility that the merger will not take place and the College will continue as a standalone entity for the foreseeable future. The Trustees have considered this possibility and produced budgets and forecasts if the merger were not to happen. Having fully considered this evidence the Board are satisfied that if the merger does not proceed the College has sufficient financial resources to continue as a going concern for the foreseeable future and at least 12 months from the date these financial statements have been approved.

23

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

1. Summary of significant accounting policies (continued)

(c) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(d) Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.

Income from tuition fees is recognised in the period to which it relates and includes all fees payable by students and funding bodies.

Clinic income relates to services provided within the period.

Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Where there are conditions attached to the donation that require a level of performance before entitlement can be obtained, the income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from investments comprises dividends receivable during the accounting year from listed investments and interest receivable from bank deposits.

(e) Expenditure recognition

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(f) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and professional costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with proportion of staff time spent on each activity.

24

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

1. Summary of significant accounting policies (continued)

(g) Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Where a tangible fixed asset is donated to the charity, cost is the trustees’ best estimate of the value of the asset at that point in time.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold buildings 2% per annum straight line Freehold properties 2% per annum straight line Building improvements 2% per annum straight line Other 25% per annum straight line

(h) Investment Property

Property that is used for both operating and investment purposes is considered to be mixed use property. The fair value of such property is split between freehold and investment property based on the square footage used by the company and tenants.

The investment property is revalued annually on the basis of market value as defined in the Appraisal and Valuation Standards as issued by the Royal Institute of Chartered Surveyors.

No depreciation is charged on investment property.

(i) Investments

Publicly traded investments, or those where fair value can otherwise be measured reliably, are measured at fair value at each balance sheet date, with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA.

Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

(j) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(k) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method.

25

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

1. Summary of significant accounting policies (continued)

(l) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the relevant expenditure heading in the SoFA.

(m) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(n) Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

(o) Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

(p) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

(q) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes.

(r) Reserves

The funds have been set up by the Trustees for the following purposes:

Restricted funds

Frazer House

This represents the estimated value at 31 August 1996 of the gift of Frazer House. A transfer is made each year from the restricted fund to the general fund of an amount equivalent to the annual depreciation charge on the freehold buildings.

26

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

1. Summary of significant accounting policies (continued)

BNOA Research

This represents the un-expensed value of the gift received from the British Naturopathic and Osteopathic Association to be used for Research purposes by the College. Expenditure incurred to support projects that fulfil the research criteria of this fund is transferred from the restricted fund to the general fund.

Philo Fund

This represents the amount donated by the Philo Trust to be used for Naturopathy purposes by the College.

Capital Bids Fund

This represents the amount received from a capital bid awarded by the University of Plymouth for purchase of named items.

Designated unrestricted funds

Scholarship fund

Although this fund has already been fully utilised, the College continues to support students in need through their academic courses by offering bursaries.

27

BCNO LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

2. Income from donations and legacies

Philo Trust donation
Bequests and other donations
3. Income from charitable activities
Academic and professional services
Clinical services		 2021
£
8,000
1,222
9,222
1,309,711
82,366
1,392,077		 2020
£
8,000
-
_
8,000
1,127,272
87,030		 2020
£
8,000
-
_
8,000
1,214,302

All income derived from charitable activities related to general funds.

4. Income from investments
Listed investments
Bank deposits
5. Other income
Insurance Income		 439
18
457
2021
£
41,855
41,855		 964
388
1,352
2020
£
39,902
39,902

Other income consists of insurance income relating to the salaries of two members of staff on long term sick leave.

6. Investment management costs

vestment management costs
2021 2020
£ £
Investment manager fees 600 600

28

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

7. Analysis of expenditure on charitable activities

A
und
ctivities
rtaken
directly
£
Academic and professional services
358,647
Clinical services
226,223
Research
85,219
Marketing and advertisement
10,213
680,302		 Support
costs
(note 8)
2021
Total
£
£
538,875
897,522
263,137
489,360
36,547
121,766
-
10,213
838,559
1,518,861		 2020
Total
£
845,329
458,486
139,154
46,177
1,489,146

£12,842 (2020 - £Nil) of the above costs were attributable to restricted funds.

8. Allocation of support costs

Support cost
Governance (see note 9)
Finance and administration
IT
Property
Other support costs
Total		 Academic
and
professional
services
£
107,623
129,668
34,101
173,861
93,622
538,875		 Clinical
services
Research
2021
Total
£
£
£
-
-
107,623
79,119
10,989
219,776
20,808
2,890
57,799
106,084
14,734
294,679
57,126
7,934
158,682
263,137
36,547
838,559		 2020
Total
£
29,941
290,028
54,173
244,415
114,481
733,038

9. Governance costs

2021
£
Trustees’ expenses
-
Auditor’s remuneration
15,958
Company Secretary
17,688
Legal costs in relation to the merger
73,977
1
7,623		 2020
£
84
23,857
6,000
-
29,941

29

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

10. Net expenditure for the year / period

Net expenditure is stated after charging

2021
£
Depreciation of tangible fixed assets
Bad debt provision
78,744
20,563
Auditor’s remuneration (excluding VAT):
Audit fees
9,500
Other services
2,300
Prior year overrun
4,158
1
4,265		 2020
£
72,950
1,387
15,800
2,730
-
92,867

11. Trustees' and key management personnel remuneration and expenses

The Principal and staff Governors only receive remuneration in respect of services they provide undertaking the roles of Principal and staff and not in respect of their services as Governors.

Other Governors did not receive any payments, other than reimbursed expenses, from the College in respect of their role as Governors. The value of the Governors’ remuneration received was as follows:

During the year no Governors (2020: 1) has been reimbursed a total of £nil (2020: £85) for travelling expenses incurred attending meetings of the College.

There were no other related party transactions involving the Governors or Key Management.

12. Staff Costs and Employee Benefits

The average monthly number of employees and full time equivalent (FTE) during the year was as follows:


ollows:
The Average number of employees of the College during the year was:
Full time
Fractional
Full time equivalents		 2021
2020
Number
Number
7
10
60
42
67
52
21
18

30

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

12. Staff Costs and Employee Benefits (continued)

The total staff costs and employees benefits were as follows:

The total staff costs and employees benefits were as follows:
Wages and salaries
Social security
Other pension costs		 2021
£
734,281
53,986
38,464
826,731		 2020
£
771,404
58,719
49,388
879,511

There were no termination or redundancy payments in the year.

The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:

2021 2020
Number Number
£70,001 - £80,000 1 1

Pension contributions of £7,047 (2020: £6,669) were made by the charitable company during the year on behalf of higher paid employees

31

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

13. Tangible fixed assets

Cost or valuation:
At 1 September 2020
Disposals
At 31 August 2021
Depreciation:
At 1 September 2020
Charge for the year
Released on disposal
At 31 August 2021
Net book value:
At 31 August 2021
At 31 August 2020		 Land and
buildings
Frazer
House
£
2,062,500
-
2,062,500
389,822
18,556
-
408,378
1,654,122
1,672,678		 Land and
buildings
Lief
House
Building
Improvements
Furniture,
Equipment
and
heating
Databases
£
£
£
£
436,592
1,835,926
554,125
52,931
-
-
(248,270)
-
436,592
1,835,926
305,855
52,931
102,567
1,100,228
535,140
52,931
10,806
36,719
12,663
-
-
-
(248,270)
-
113,373
1,136,947
299,533
52,931
323,219
698,979
6,322
-
334,025
735,698
18,985
-		 Total
£
4,942,074
(248,270)
4,693,804
2,180,688
78,744
(248,270)
2,011,162
2,682,642
2,761,386

The freehold property, Frazer House, 6 Netherhall Gardens, was valued by the Governors on an existing use basis at 31 August 1996 when this asset was donated to the charity. This valuation includes an estimated £928,000 in respect of the buildings that are being depreciated.

The freehold property, Lief House, 3 Sumpter Close, was originally purchased in September 1994 as a Leasehold. The company acquired the Freehold of this property in December 2008 for £100,000. This asset is stated at cost as at the balance sheet date. The cost includes an estimated £196,000 in respect of buildings which are being depreciated. 25% of this property is used by the charity; the remaining 75% is let commercially and accounted for as investment property.

A professional valuation was undertaken in September 2018 and the property's market value was assessed at £3,900,000.

The Governors are satisfied that the net realisable values of the properties are at least as much as their net book amounts.

32

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

14. Investment Property

Investment Property
At 1 September 2020
Revaluation of investment property
Market value at 31 August 2021
Historical cost		 2021
Total
£
3,015,000
(90,000)
2,925,000
589,400

Part of Lief House is rented out to a third party for the purpose of producing income for the charity. In accordance with accounting standards that element subject to rental is accounted for as an investment property.

The investment property was subject to an independent external valuation on 1 October 2021 on the basis of market value as defined in the Appraisal and Valuation Standards as issued by the Royal Institute of Chartered Surveyors. The last full valuation by an independent third party was undertaken at 1 October 2021 by Eddisons. Having made appropriate enquiries of external experts the Board are satisfied that there is no material difference between the valuation as at 1 October 2021 and the 31 August 2021 year end.

Due to the charitable status of the company, no provision is required for deferred taxation arising from the revaluation gain.

15. Fixed asset investments

Valuation
At 1 September 2020
Net cash fund movements
Disposals
Net investment gain in the year
Market value at 31 August 2021
Historical cost
Investments at fair value compromise:
Unit stock
Cash within investment portfolio		 2021
Total
£
79,292
(4,937)
(94,941)
20,586
-
-

-
-		 2020
Total
£
80,501
363
(1,572)
79,292
53,502
74,355
4,937
- 79,292

The fair value of listed investments is determined by reference to the middle of the bid and offer price at the balance sheet date. There are no investments making up more than 5% of the portfolio.

33

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

16. Debtors
Amounts falling due within one year:
2021
£
Trade debtors
25,334
Prepayments and accrued income
3,988
29,322
17. Creditors: amounts falling due within one year
Bank loans and overdrafts
801,220
Trade creditors
19,199
Other tax and social security
12,498
Other creditors
38,505
Accruals and deferred income
162,370
_
1,033,792		 2020
£
52,005
26,402
78,407
831,358
37,251
8,721
67,551
18,720
_
963,601

All bank loans have been reclassified as current liabilities given the loans were repaid in full on 10 January 2022.

Of the above loan balance of £801,220 at 31 August 2021, £395,203 relates to the development loan and £406,017 relates to the Z loan.

Details of leasing arrangements are provided in note 19.

18. Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Bank – Development loan
Bank – Z loan
Borrowings are repayable as follows:
Within one year
Between one and two years
Between two and five years
Later than five years
Total repayable		 2021
£
--
-		 2020
£
--
-
-
831,358
-
-
-
831,358
-
801,220
-
-
-
801,220

34

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

18. Creditors: amounts falling due after more than one year (continued)

Development Loan

The Development loan is secured by a fixed charge over Lief House. For details of the valuation of this property see note 13. The loan is repayable over the original term of 20 years to August 2028 and is subject to a rate of interest at 1.5% above the bank’s base rate.

Z Loan

The security for this loan is the same as for the Development Loan explained above. Although the loan is repayable over 20 years and is subject to a rate of interest at 2.37% above the bank’s base rate, the loan is committed for a five-year term which is due to be renewed in August 2023.

19. Leases

Operating leases - lessee

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Between two and five years
Later than five years		 2021
£
1,887
3,303
5,190		 2020
£
1,887
5,190
-
7,077

Operating leases include three separate leases for the provision of Photocopiers, lease for a Computer and Franking. The entity does not have any finance leases.

20. Contingent liabilities/assets

There were no contingent liabilities or assets at 31 August 2021 or at 31 August 2020.

35

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

21. Fund reconciliation

Unrestricted funds

----- Start of picture text -----
Balance at Income Expenditure Transfers Gains/ Balance at
1 September (losses) 31 August
2020 2021
£ £ £ £ £ £
Unrestricted 3,304,066 1,435,611 (1,506,619) 18,566 (69,414) 3,182,210
----- End of picture text -----

Restricted funds
B
1 S
lance at
eptember
2020
£
Frazer House
1,670,897
Philo Fund
15,620
BNOA
4,888
Capital Bids
22,239
Total
1,713,644
 Income
Expenditure
Transfers
Gains/
(losses)
Balance at
31 August
2021
£
£
£
£
£
-
-
(18,566)
-
1,652,331
8,000
(12,842)
-
-
10,778
-
-
-
-
4,888
-
-
-
-
22,239
8,000
(12,842)
(18,566)
-
1,690,236		 Income
Expenditure
Transfers
Gains/
(losses)
Balance at
31 August
2021
£
£
£
£
£
-
-
(18,566)
-
1,652,331
8,000
(12,842)
-
-
10,778
-
-
-
-
4,888
-
-
-
-
22,239
8,000
(12,842)
(18,566)
-
1,690,236		 Income
Expenditure
Transfers
Gains/
(losses)
Balance at
31 August
2021
£
£
£
£
£
-
-
(18,566)
-
1,652,331
8,000
(12,842)
-
-
10,778
-
-
-
-
4,888
-
-
-
-
22,239
8,000
(12,842)
(18,566)
-
1,690,236
8,000 (12,842) (18,566)
-

Fund descriptions

See Accounting policy 1.r) for a breakdown of the detail of the restricted funds and their respective uses. The capital fund is restricted for specified items awarded by the University of Plymouth.

The transfer of £18,566 from restricted funds to general funds represents the depreciation incurred on Frazer House.

36

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

22. Analysis of net assets between funds

Fixed assets
Investment Property
Net current liabilities
Cash
Total		 Unrestricted
Funds
Restricted
Fund
Philo
Restricted
fund
BNOA
Restricted
fund
Capital Bids
Restricted
Fund -
Frazer
House
2021
Total
£
£
£
£
£
£
1,030,311
2,925,000
-
-
-
-
-
-
1,652,331
-
2,682,642
2,925,000
(1,004,470)
-
-
-
-
(1,004,470)
231,369
10,778
4,888
22,239
-
269,274
3,182,210
10,778
4,888
22,239
1,652,331
4,872,446

23. Reconciliation of net income to net cash flow from operating activities

Net (expenditure) for the year
Dividends, interest and rents from investments
Interest payable
Interest received
Depreciation and impairment of tangible fixed assets
(Gain)/loss on investments
Loss on investment property
Decrease /(Increase) in debtors
Increase/(decrease) in creditors
Net cash flow generated from (used by) from operating activities		 2021
2020
£
£
(145,264)
(227,762)
(439)
(964)
16,827
20,116
(18)
(388)
78,744
72,949
(20,586)
1,572
90,000
-
49,085
(36,757)
100,329
(11,930)
168,678
(183,164)

24. Financial commitments

The college has no financial commitments at the year end.

25. Events after the end of the period

On 1 September 2021 the merger with the European School of Osteopathy (Osteopathic Education and Research Limited) was completed and from that date all assets, liabilities and activities of the European School of Osteopathy were transferred into the college.

The intention and plans for the merger is to create a new, stronger college delivering courses of the highest quality to its students. As part of the merger process the Trustees have considered financial forecasts and cashflows and are satisfied that the new merged entity will be financially robust and no creditor or third party will suffer financial loss as a result of the merger.

Under the terms of the current loan agreements the current finance facilities will fall due on the merger date and long term debt has been moved to current liabilities as at 31 August 2021. All loans were refinanced on 10 January 2022.

37

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 August 2021

BCNO LIMITED

26. Related party transactions and ex gratia payments

There are no related party transactions or ex gratia payments during the period, beyond those stated in Note 11 relating to Governor’s expenses / salaries

27. Financial instruments

The charity holds a number of financial assets (for example investments, debtors and cash) and financial liabilities (for example creditors) which meet the definition of basic financial instruments under the FRS 102 SORP. Details of the measurement bases, accounting policies and carrying values for these financial assets and liabilities are disclosed in the notes above. The charity does not hold any derivative financial instruments as of 31 August 2021.

28. Comparative Statement of Financial Activities

2020
Unrestricted
funds
Restricted
funds
£
£
Income and endowments from:
Donations and legacies
-
8,000
Charitable activities
1,214,302
-
Investments
1,352
-
Other income
39,902
-
Total income and endowments
1,255,556
8,000
Expenditure on:
Investment management costs
600
-
Charitable activities
1,489,146
-
Total expenditure
1,489,746
-
Net (losses) on investments
Gains on investment property
(1,572)
-
-
-
Net (expenditure)/ income
(235,762)
8,000
Transfers between funds
19,156
(19,156)
Net movement in funds
(216,606)
(11,156)
Reconciliation of funds:
Total funds brought forward
3,520,672
1,724,800
Total funds carried forward
3,304,066
1,713,644		 Total
£
8,000
1,214,302
1,352
39,902
1,263,556
600
1,489,146
1,489,746
(1,572)
-
(227,762)
-
(227,762)
5,245,472
5,017,710

38

BCNO - 31 August 2021 accounts

Final Audit Report

2022-07-21

Created: 2022-07-21 By: Sue Leadbeater (sl@burgesshodgson.co.uk) Status: Signed Transaction ID: CBJCHBCAABAAgHaiDUvLBVK86UM-zeHiumTvJrCB1xaY

"BCNO - 31 August 2021 accounts" History

Document created by Sue Leadbeater (sl@burgesshodgson.co.uk)

2022-07-21 - 6:52:52 PM GMT

Document emailed to howard@howardkidd.com for signature

2022-07-21 - 6:53:39 PM GMT

Email viewed by howard@howardkidd.com 2022-07-21 - 6:57:16 PM GMT

Signer howard@howardkidd.com entered name at signing as R H Kidd 2022-07-21 - 6:58:19 PM GMT

Document e-signed by R H Kidd (howard@howardkidd.com) Signature Date: 2022-07-21 - 6:58:20 PM GMT - Time Source: server

Document emailed to howard@howardkidd.com for signature

2022-07-21 - 6:58:22 PM GMT

Email viewed by howard@howardkidd.com 2022-07-21 - 6:58:45 PM GMT

Signer howard@howardkidd.com entered name at signing as R H Kidd 2022-07-21 - 6:59:25 PM GMT

Document e-signed by R H Kidd (howard@howardkidd.com) Signature Date: 2022-07-21 - 6:59:27 PM GMT - Time Source: server

Agreement completed.

2022-07-21 - 6:59:27 PM GMT