## **BCNO LIMITED**
**(A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL)**
**REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED**
**31 AUGUST 2023**
**COMPANY NUMBER: 00562119 CHARITY NUMBER: 312907**
**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
**Also known as:** British College of Osteopathic Medicine (BCOM) British College of Naturopathy and Osteopathy (BCNO) European School of Osteopathy (ESO) and BCNO Group **Constitution:** A company limited by guarantee, not having a share capital, and governed by a Memorandum and Articles of Association **Company Number:** 00562119 **Charity Number:** 312907 **Trustees:** Ms P J Christie (resigned 31 October 2022) Mr S Fielding (appointed 1 March 2023) Ms D M Hayes Mr G K Jones Mr M Keogh (resigned 10 May 2023) Mr R H Kidd Mr E C Luis (appointed 11 March 2024) Professor N P W Goddard Mr C P McDermott Mr M Mehta (resigned 31 December 2022) Mrs M E Miller (resigned 8 January 2024) Mr S R Milton Mrs A N C Parasram (appointed 12 October 2022) Mr D Rajendran Mr L Riccò (resigned 7 July 2023) Mr J S Rogerson (resigned 15 March 2024) Mr D Tasker
**Registered Office:**
Frazer House 6 Netherhall Gardens Hampstead London NW3 5RR
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **General Information**
## **Senior Management Team**
Mr. Ian Fraser – CEO Dr Kerstin Rolfe - Principal Ms. Helen Jones – Head of Human Resources
## **Premises**
**Campus** European School of Osteopathy Boxley House The Street Boxley, MAIDSTONE Kent ME14 3DZ
**Campus** Frazer House 6 Netherhall Gardens Hampstead, London NW3 5HR
## **Teaching Clinic**
European School of Osteopathy Clinic 104 Tonbridge Road MAIDSTONE Kent ME16 8SL
Lief House 3 Sumpter Close London NW3 5RR
## **Advisers**
**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 SM1 4FS
## **Solicitors**
TLT LLP 20 Gresham Street LONDON EC2V 7JE
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## **BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Chair’s Message**
2022/23 has been a very testing year for the Higher Education Sector. As a Charity running two small specialist Colleges, we have found ourselves facing a number of fundamental challenges.
Our Board of Trustees have continued to look and reassess the strategic picture within the Osteopathic Education Sector and the breadth of experience and knowledge provided by these Trustees has proved invaluable. We said farewell and thanked our Student Trustee at BCOM, Lorenzo Ricco, who applied himself professionally to this role. He has now completed his studies and we wish him well in his future career.
In the previous year we applied a considerable amount of hard work and time in bringing the ESO and BCOM osteopathic communities together and now co-operative working and sharing of best practice are a natural function of our activities. From this we continue to strive for improvements in all that we do, whether academically, or operationally.
We launched a BSc Part Time Qualification in September 2022 at BCOM and we continue to monitor its progress carefully. The activity this brings to our Finchley Road site at weekends and evenings is very welcome. Additionally, the 2 Leaders of our International Programmes have made good progress in expanding our footprint and restarting some of our long-standing international partnerships, following the drastic disruption of Covid. At the same time, it is pleasing to see our Schools in Denmark being so active and growing, with Danish students now benefiting from access to a University validated top up degree pathway.
Following our investment in the BCOM clinic and teaching facilities, much needed investment in our Tonbridge Road main building has been started. This is to ensure that it is fit for purpose by providing enhanced student facilities and an improved working environment for all.
In last year’s message I commented on the very serious impact that Brexit has had on our colleges, as it has for many other Higher Education providers. The Trustees see no prospect of this changing within the mid-term and our Kent based school – The European School of Osteopathy – has now seen applications from EU based students materially reduce. This has had a very serious impact on the viability of our teaching programmes in Kent.
All of the above mentioned emphasise the critical importance of the Charity’s finances being very carefully managed and planned. There is no avoiding the fact that our principal income streams have been adversely affected, not only by the loss of EU based students. The Student Fees have not been raised in line with inflation for a number of years now and this means we have a substantial real terms loss of income. To begin addressing these pressures the Board of Trustees took the decision in early 2023 to sell Lief House, which, as a result of extensive refurbishment at Frazer House that had enabled all education delivery to take place under one roof, was no longer required. The sale was concluded in August 2023 and the monies released have been used to clear BCNO secured lending facilities. However, this should not mask the fact that we have made a substantial trading loss in this year and will, in all probability do so in the next 2/3 years. This was one of the reasons behind the Board’s difficult decision to pause recruitment to the undergraduate programme in Kent from September 2024. To enable an assessment of the sector and the future possibilities to be undertaken.
The Board of Trustees will carefully monitor the health of the total Osteopathic educational sector in deciding what our strategy should be for the future protection of the Charity. Currently we are seeing a significant drop in applications to all of the Osteopathic Education Institutions in England.
As ever, I wish to thank all of my fellow Trustees who freely give the company the benefit of their time and experience and who have contributed much to the formulation of our plans whilst scrutinising the activity of our Company and Colleges in a most diligent fashion.
## David Tasker
David Tasker Chair of the Board of Trustees
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Introduction to BCNO Group**
BCNO Limited unites two world-renowned osteopathic institutions; the British College of Osteopathic Medicine and the European School of Osteopathy, following a merger in September 2021.
As a group, we are:
- A member of the Council of Osteopathic Educational Institutions;
- A member of the Osteopathic European Academic Network;
- A member of the Office for Students
The group, largely through its Teaching Clinics, aims to inform the public on the general and specific health benefits of osteopathy with the aim of improving the general health of the community. The group’s Libraries are a member of the Health Libraries Network and the Nursing Union List of Journals Grouping and are open to the public.
In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit and fee charging. The School relies on fee income from its students and clinic patients to contribute towards its operating costs. In setting its fees, charges and concessions, the Trustees have given careful consideration to the accessibility of its services to those on low incomes. Further information is available on our websites:-
www.bcnogroup.ac.uk www.eso.ac.uk www.eso-clinic.co.uk www.bcom.ac.uk
The School operates two busy Osteopathic Teaching Clinics. The Teaching Clinics set their standard fees below the general market rate and run a number of short-term special offers to attract new patients. In addition, they operate a no charging policy to cater for the disadvantaged and no-one is turned away because they do not have the ability to pay.
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Our Mission, Core Aims and Objectives**
## **Mission**
To be a leading educational establishment of choice for future generations of osteopaths and other healthcare professionals.
## **Vision**
Our vision is to provide students with an educational experience which surpasses their expectations; providing them with the skills, knowledge and confidence to lead fulfilling careers as osteopaths or other healthcare professionals. We will achieve this through the quality of our teaching methods and approach, delivered within an inclusive, supportive and diverse learning environment.
## **Values**
**B** e the best at what we do
**C** ollaborate with the osteopathic community and other healthcare professionals to achieve our goals **N** urture learning and a desire to succeed among our students **O** pportunity to develop professionally and personally
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## **BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Our Core Activities**
BCNO prides itself on offering the highest quality education and the promotion of osteopathy using the following tools:
## Osteopathic Teaching
The osteopathic teaching at BCNO reflects a broad spectrum of the subject. The practical philosophies of all the great osteopaths are integrated into the curriculum, with particular emphasis on the fundamentals laid down by Dr Andrew Taylor Still and complemented by progressive consideration of structural, cranial and visceral techniques.
The Integrated Master’s Degree in Osteopathy (M.Ost), and the main fall-back award, the BSc (Hons) in Osteopathic medicine, fulfil the Osteopathic Practice Standards requirements and comply with the Osteopathic Benchmark Statement 2019. In satisfying these two standards BCNO is clear that both degrees maintain an osteopathic breadth combining traditional philosophies with current research and models of practice.
The BCNO Group is a Partner College to University of Plymouth and Buckinghamshire New University. Plymouth University validates our degree programme in London. Buckinghamshire New University validates our degree programme in Kent. Both ensuring the highest academic standards are achieved.
From the start of the 2022/23 academic year, Students joining the full time programme in year 1 at either site, have studied the integrated masters programme that is validated by the University of Plymouth.
## Research
The importance of research to the future development of osteopathy cannot be overstated. As a stakeholder in the National Council for Osteopathic Research (NCOR), the BCNO Group is committed to the provision of the highest quality in osteopathic research.
Members of our Research Department are qualified both as osteopaths and as experienced researchers, contributing to publications in peer-reviewed journals and regularly presenting work at national and international osteopathic research conferences.
## International Links
The School has a long tradition of forming international links, which over the years have broadened and enriched its teaching. It is closely associated with osteopathic organisations across Europe and is actively involved with these in improving both academic and research standards and achieving a degree of standardisation of osteopathic education in Europe. These international links provide a wide range of professional opportunities for our graduates, enrich the faculty and undergraduate teaching programme and provide useful professional development and teaching opportunities.
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Trustees’ Report**
## **Introduction**
The Trustees (Directors) have pleasure in presenting their Annual Report for the year ended 31 August 2023 under the Charities Act 2011, together with audited accounts for the year, and confirm that the latter comply with the requirements of the Act, the Charity’s Articles of Association and the Charities SORP FRS102. The report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
The company was established in 1956 as a company limited by guarantee, with number 00562119 and was registered as a charity in 1964 with number 312907. The registered name is BCNO Limited, but in everyday operation the Charity trades under the name of BCNO Group and is also known by various names as detailed on page 2. It is governed by its Memorandum and Articles of Association, which were updated in August 2022 and further updated in October 2022 following completion of the merger. The Trustees are also the members of the company each of whom agrees to contribute £1 in the event of the Charity winding up. The Objects and Powers under the Articles are widely drawn but it has as its principal object:-
_“To promote the health and well-being of the general public by advancing the practice of osteopathy, naturopathy and other evidence informed therapeutic methods and to advance and promote education and research into the field of osteopathy, naturopathy and other evidence informed therapeutic methods.”_
The Board has continued to review its working practices to ensure fitness for purpose. This has seen the recruitment of Trustees from the Student community, along with Staff and Faculty representation.
All current Trustees and those who served during the year under review and up to the date of this report, together with details of the Senior Management Team and key advisors are detailed on pages 2 and 3.
Our highly regarded clinics in London and Kent are the major engine in the provision of public benefit as a charity. No patient is ever refused treatment on the basis of lack of funds and during the year to 31 August 2023 the School provided a total of 20,473 osteopathic treatment sessions at significantly reduced rates or free of charge.
The Trustees are pleased to congratulate the Senior Management Team, faculty members and staff, on maintaining the high status of the School in the osteopathic world both at home and abroad and for continuing to provide a valued service to the community through the Teaching Clinics.
## **Statement of Corporate Governance and Internal Control**
## **Organisational Management**
All Directors of the Company are also Trustees of the Charity. There are no other Trustees. The Trustees continue to review the mix of skills and experience necessary for a higher education institution of the School’s nature.
The Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. All Trustees gave their time voluntarily and did not receive any private benefit.
During the year ended 31 August 2023 the Board of Trustees met five times, the Financial Oversight Committee met eight times, the Remuneration Committee once and the Academic Governance Committee met four. The Chief Executive attends the Financial Oversight Committee and the Principal attends the Academic Governance Committee.
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## **BCNO Limited**
## **Trustees’ Annual Report for the year ended 31 August 2023**
Trustee attendance is summarised in the table below:
|Trustee|Board|Finance Sub
Committee|Remuneration
Committee|Academic
Governance
Committee|
|---|---|---|---|---|
|Number of meetings in year|5|5|1|4|
|David Tasker|5|n/a|n/a|n/a|
|Penny Christie|1|n/a|n/a|n/a|
|Simon Fielding|1|n/a|n/a|n/a|
|Debi Hayes|3|2|0|4|
|Graham Jones|2|3|1|n/a|
|Martin Keogh|1|n/a|n/a|4|
|Howard Kidd|4|5|1|n/a|
|Nick Goddard|4|n/a|n/a|2|
|Conor McDermott|4|5|1|n/a|
|Manoj Mehta|1|n/a|n/a|n/a|
|Michelle Miller|4|n/a|n/a|n/a|
|Simeon Milton|5|n/a|n/a|n/a|
|Alice Parasram|3|n/a|n/a|n/a|
|Devan Rajendran|2|n/a|n/a|3|
|Lorenzo Ricco|3|n/a|n/a|n/a|
|John Rogerson|5|n/a|n/a|n/a|
On occasion the Trustees have also held conference call to discuss issues, which are then recorded in the Board minutes as appropriate.
The Trustees are legally responsible for the overall management and control of the Charity. The Senior Management Team is responsible for managing the day-to-day administration of the School.
## **Governance**
The Trustees operate to their own Good Governance Principles and Practice which adhere to the publication “Good Governance – A Code for the Voluntary and Community Sector” (produced by the Association of Chief Executives of Voluntary Organisations, the Institute of Chartered Secretaries and Administrators, and the National Council for Voluntary Organisations) and to the Nolan Committee’s – Seven Principles of Public Life.
Each Sub Committee of the Board has its own Terms of Reference and in accordance with best practice these are reviewed on a regular basis to ensure they are still relevant and effective.
## **Appointment of Trustees**
Trustees are appointed in accordance with the Articles of Association. In recruiting Trustees, account is taken of the range of knowledge and skills which are required to balance and enhance the Board. This is facilitated by the analysis of the skills of current Trustees. There are a number of ways that contact is made with prospective Trustees including personal introductions through an existing Trustee, member of faculty or member of staff, advertising and the use of agencies that specialise in finding Trustees for charities. The Trustees are mindful that appointing new Trustees is a two-way process in that both the Charity and the prospective Trustees have to obtain enough information about each other to reach a decision respectively to offer, or to accept a trusteeship. The appointment process has various phases:
- (i) An exchange of information. Prospective Trustees provide their Curriculum Vitae and are provided with an Information Pack. Prospective Trustees are asked to complete a Declaration of Eligibility form;
- (ii) Prospective Trustees attend the School to meet with representatives of the Board of Trustees, including the Chair of the Board, and the acting Company Secretary. This gives the candidates the opportunity to seek points of clarification and to see the School in operation;
- (iii) The third phase, if required, involves a further meeting involving the candidate and other members of the Board and, if appropriate members of the Senior Management Team, after which a decision will be made on whether or not to recommend the prospective Trustee to the Board for election. A formal resolution is recorded in the Board Minutes.
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## **BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
One third of Trustees retire at each Annual General Meeting, in accordance with the Articles of Association.
Training for Trustees is assessed on an individual basis and a budget is available to enable Trustees to attend courses if required. Trustees are made aware of seminars on specific aspects of Charity or Company Law and are encouraged to attend appropriate external training events where these will facilitate the understanding of their role. Information on Charity and Company Law is circulated to Trustees as it becomes available. Trustees are aware of the information available on the Charity Commission’s website and are encouraged to access it regularly.
Trustees are encouraged to visit the School on an informal basis and to observe its activities.
A Register of Trustees’ Interests is maintained. Any potential conflict of interest is declared at Board Meetings and appropriate action taken.
Although the Senior Management Team a r e not members of the Board of Trustees, they are invited to attend and play a full part in all Board Meetings.
## **Risk Management**
The Board of Trustees is responsible, assisted by the Senior Management Team, for the management of the risks faced by the School. Committees and individuals are tasked with reviewing risk management in their respective areas of activity and either to take steps, or to recommend steps, to mitigate the risks.
The key controls used by the Charity include, but not restricted to:-
- Formal Agendas for all Committee and Board Meetings and full Minutes of Meetings;
- Terms of Reference for all Committees and Sub Committees. These are reviewed on an annual basis;
- Comprehensive Strategic planning, budgeting and management accounting including the reporting of upto-date Management Accounts and Cash Flow Forecasts to each Financial Oversight Committee and Board Meeting;
- Trustees Code of Conduct, Declaration of Eligibility, Register of Interest and Skills Analysis;
- Declarations of Interest at meetings;
- Formal written policies; These are reviewed on a three- y e a r rolling programme or earlier if there are changes in legislation or best practice;
- Established organisational structure and lines of reporting;
- Clear authorisation and approval levels;
- Vetting procedures as required by law for the protection of the vulnerable;
- Comprehensive insurance arrangements;
- The Trustees aim to carry out a formal review of the Risk Register every six months.
Through the risk management processes established by the School, the Trustees are satisfied that the major risks identified have been adequately mitigated, where necessary. It is recognised that systems can only provide reasonable, but not absolute, assurance that major risks have been adequately managed. These procedures will continue in the coming financial year.
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Objectives and Performance: Report Year**
## **Undergraduate**
As BCNO Group, in 2022/23, we recruited 64 new students into year one, 62 students progressed into year 2, 76 students progressed into year 3 and 57 progressed into year 4.
For 2022/23: 16 students interrupted study in-year.
For 2022/23 year one: 14 students withdrew, year two: 3 students withdrew and 1 suspended and in year three: 1 student withdrew.
## **Progression from 2022/23 to 2023/24**
54 students progressed into Year Two for 2023/24, with 5 new students joining. 5 withdrawals and 3 interruptions
55 students progressed into Year Three for 2023/2024 with an additional student resuming study after interruption and 2 direct entry new students.).
75 students progressed into Year Four for 2023/24 and additionally 1 student resumed study following interruption, with 2 students withdrawing
## **Graduates**
In 2022/23, there were the following graduates:
## **Kent**
M.Ost
6 First Class Honours
23 Upper Second Class Honours
9 Lower Second Class Honours
1 Third
## **London**
3 Distinction 4 Commendation 10 Pass
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **International**
## **Departmental Management**
The International department consists of two International Programme Leaders with overall responsibility for all programmes and an Administrative Assistant supporting the International Programme Leaders.
## **Brexit**
Following Brexit the UK qualifications taught overseas no longer carries the same recognition, creating challenges for Danish students obtaining access to their professional register. To support and overcome this, BCNO Group is providing students with additional osteopathic and educational resources, allowing the graduates the necessary criteria to register within their country. This has been undertaken in close collaboration with the Danish safety board.
## **Operations**
The department’s operations during the reporting year fell into 3 sectors:
## **Level 7 Diploma Course for Denmark**
The Master’s level (Level 7) Diploma course is being delivered in Denmark and externally validated by the Crossfields Institute, an awarding organisation regulated by the Office of Qualifications and Examinations Regulation (Ofqual).
This programme is becoming well established and growing positive reputation for its commitment to excellence and high-quality education. In the short term, we do not identify any major challenges but in the mid/long the possible creation of full-time education by Danish HE institutions may impact future recruitment numbers. The team is currently assessing the developments and maintaining lines of communication with the stakeholders to ensure we are prepared.
## **Short Visits to ESO from foreign schools for lectures and exams** .
These take place in the spring and early summer for periods of 3-5 days. The visits are still recovering from the impact of Covid-19, however numbers are growing and visits have been hosted from schools in Finland and France.
## **ESO Clinic Support for graduates of foreign schools seeking UK Registration**
This is a 6-week clinic-based course for graduates of the French RFO consortium of schools. Students attend the ESO clinic in July and August supporting them with clinic based learning for their application for GOsC registration.
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## **BCNO Limited**
## **Trustees’ Annual Report for the year ended 31 August 2023**
## **Sector Summaries**
||||||||
|---|---|---|---|---|---|---|
|Sector|Teaching Days||Student Numbers||Faculty Deployments||
||2022-2023|2021-2022|2022-23|2021-22|2022-23|2021-22|
|Diploma|174|307|90|145|152
Including
lecturers,
assistants and
examiners|214
Including lecturers,
assistants and
examiners|
|Short Visits|20|18|157|114|50
Including
lecturers,
assistants and
examiners|58
Including lecturers,
assistants and
examiners|
|Postgraduate
CPD abroad|9|0|42|0|3
Including
lecturers,
assistants and
examiners|0|
|Clinic Support|30||2|6|18|30
Average from 60
sessions|
|Totals|233|325|291|265|223|304|
## **Development Activities**
The major development activities undertaken in the reporting period were:
(i) Development of a 5-year MSc in Osteopathy for Diplomates in Singapore
(ii)Development of two programmes for delivery in Armenia
(iii) Steps to introduce a programme in Iceland, that mirrors the format in Denmark
## **OsEAN (European Osteopathic Network)**
This is a trans-European organisation of the highest quality osteopathic schools in Europe dedicated to the enhancement of standards, exchanges of information, the provision of training programmes and the sharing of good practices. Admission is subject to a satisfactory inspection by the Austrian Standards Institute. The ESO was a founding member and re-joined in 2019. As part of our OsEAN activities we are validating a PGCert in Education validated by the University of Plymouth for OsEAN, this programme is going through the validation process in February 2024. In addition to strengthening our collaboration within the OsEAN network, this will also enable us to offer teaching qualifications to our international faculty as well which is part of our long-term development strategy. The first Cohort is planned for September 2024.
## **Research**
The research team are active members of the National Council for Osteopathic Research and have collaborated on a number of initiatives over the past year. These include: the PROCARE initiative with looks to set the research agenda in osteopathy up to 2030 as part of an international community, the NeuOst intervention which has developed a package of care for diabetic peripheral neuropathy sufferers and completion of the update for the Osteopathy Subject Benchmark Statement for which The Head of Research has also led on a chapter update and peer-reviewed two further chapters.
Other research activity includes the extensive rollout in London and Kent of the Touch in Treatment study, exploring how touch preferences manifest in patients attending BCNO teaching clinics. This is now entering preparation for publication phase with colleagues from Goldsmith’s and The University of Bristol. The department has also looked to engage with a number of external partners with a view to bring onboard institutional research
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## **BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
that can also fulfil research requirements for student. The first of these arrangements has been with Headkayse, a company at the forefront of developing new impact protective headgear, primarily for use in rugby union across both male and female competitors. Students have been engaged in finding out the awareness and attitudes towards use of head protection and how opinions of coaches and players can contribute to shared decisions on developing the best product possible. The department has also been approached by Tillett’s Seats to explore different research initiatives around their latest racing car seat technology which will extend further scope for students and the BCNO Group.
The department has developed a team-teaching model to combine delivery of shared material to both sites. This has involved conference style online delivery with full ‘chat’ function that has also been supported by staff presence in classrooms to allow students a hybrid experience either in real time or at their convenience. Small Q&A sessions as face-to-face activities are then spaced at appropriate intervals within the content delivery to allow for reinforcement of core knowledge and issues to be discussed. This has promoted a community feel to the delivery and brought students from London and Kent into the same online teaching space, allowing for single delivery of the same content in various forms.
## Teaching Clinic
The Teaching Clinics in London and Kent provide students with the varied and extensive clinical training required by the professional regulatory body, the General Osteopathic Council. The Clinics are well regarded in the local areas and are considered as valuable community assets.
BCNO continued to efficiently support the clinical students, including guidance on research projects, audit legs and self-directed learning for the clinical years three and four.
Both the Kent and London clinics have continued to fulfil their charitable objectives with a large percentage of patients either treated on a concessionary basis or free of charge. The Clinic fees continue to be substantially below private fees.
The Frazer House Clinic continues to run a private fee-paying clinic ('non-training Clinic). This provides both osteopathy and soft tissue massage. In the reporting period, the non- training attracted: 95 consultations, 157 treatments with a with a fully qualified osteopath. The massage appointments: 495 massage treatments, run by BCNO students.
The patient numbers for the academic year 2022/2023: Frazer Clinic (London) total 8,363 osteopathy and 31 Nutrition appointments Tonbridge Road (Kent) total 11,858 osteopathy appointments.
Total fee income for the year to 31 August 2023 was £378,000.
## **Report Year Objective Outcomes**
BCNO Group sought to continue to improve the high level of education provided to its students, enabling them to graduate and confidently enter the osteopathic profession. BCNO strive to provide the highest level of osteopathic treatment and care to patients in our Clinics.
The following key objectives for 2022/2023 were:
**(a) To ensure that all of our students reach their full potential, the delivery of the highest quality academic services is a key priority.**
This has been achieved by:
- Review of best practice for teaching and learning delivery.
- Provision of a blended learning environment to ensure that all graduates achieved Professional and Statutory Body requirements for graduation.
**(b) To ensure that all members of staff and teaching faculty deliver a high-quality service and reach their personal full potential.**
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
- Through 2022/23 we focused on increasing opportunity for faculty in both BCOM and ESO to widen their knowledge and skills through teaching on one or more of the M.Ost or BSc degree courses at either campus. BCNO continued to develop the head of department structure, now covering MOst and BSc programmes and both campuses,
- All faculty members participate in Teaching and Learning Observations (TLOs) on an annual basis. The TLO process provides an opportunity for personal development reviews, the criteria in the forms are cross-mapped against the UK Higher Education Framework and have a section for personal action plan development. This process also aligns with the updated Professional and Statutory Regulatory Body requirements for the new 3 year CPD cycle, which requires an objective activity.
- All faculty and other staff continued to have access to e-learning via the Staff Skills Training platform enabling them to enhance personal and professional skills while also maintaining up to date knowledge of core subjects such as Prevent, Safeguarding and Diversity.
## **(c) In order to maintain the profile of the School and to become recognised as a centre of excellence the School will continue to promote international activities.**
The International Department has continued to seek new collaborations with international partners. A MSc for Diplomates and a BSc(Hons) for Diplomates was validated through the University of Plymouth with the first cohort due to enrol in September 2023.
## **(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**
The clinics have operated fully throughout the year, treating patients, from paediatric to sports, to elderly. As we continue to diversify and grow our patient profile. We met the clinical demand for osteopathic health care within the local communities.
## **(e) Trustee Board Development**
The Board continues to consider and assess the skills and knowledge that each Trustee brings to the organisation and aims to ensure that there is a complimentary skill set amongst the Trustees. In light of the merger, the structure of the Board changed considerably during the year under review, seeing Student Trustees appointed to the Company for the first time.
The Board wishes to act in an effective and responsible manner at all times.
## **Future Plans for 2023/24**
The following key objectives and future plans for 2023/24 are:
- a. To ensure that all of our students reach their full potential, the delivery of the highest quality academic service is a key priority, which is supportive, collegiate and stimulating in its delivery. This will be achieved by ensuring that the courses are of a high quality and are delivered in a professional supportive collegiate manner.
- b. To ensure that all members of staff and teaching faculty deliver a high-quality service and provide the resources for staff and faculty to support them in their careers in education This will be achieved through faculty development programmes and commensurate with the BCNO education strategies.
- c. Maintain the profile of the institution and to continue building BCNO Group as a centre of excellence by continuing to develop and promote widening UK and international activity. We will continue to seek new collaborations with international partners, as well as expand our UK offering.
- d. In order to deliver a benefit to society the institutions will aim to grow the commercial success of the clinics whilst maintaining our charitable activities and delivering charitable benefit. The focus for 2023/24 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
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**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
- e. Trustee Board Development. The Board will undergo a thorough skills review audit to identify those areas where additional expertise would be beneficial and seek to strengthen the Board in those areas Trustees shall continue to be encouraged to undertake training and to participate in the meetings and sub-committees where appropriate.
- f. BCNO Group strategic objectives will focus on developing differentiating osteopathic and education provisions at all campuses. London will be the BCNO hub for undergraduate and clinical education. By 2027 Kent will expand and diversify its clinical activity becoming a community health centre. This will increase osteopathic treatment services alongside adjunctive health and wellbeing.
## **Financial Review and Results for the Year**
The Statement of Financial Activities shows total income for the year ended 31 August 2023 as £3.90m (2022: £4.29m) with total expenditure of £4.63m (2022: £4.58m) giving a net operational deficit for the year of £726,300 (2022: net deficit for the year of £287,560). Unrestricted funds are £8.97m (2022: £6.50m). Restricted funds stand at £1.87m (2022: £1.63m). During the year Lief House was sold, generating a gain on disposal of £3.43m. The net increase in funds for the year was £2.71m (2022: £3.26m).
The institution receives income from HEFCE and Student Finance England via University of Plymouth and Buckinghamshire New University in three payment tranches (November, February and May). In addition to validator direct cash income the institution has cash from overseas partnerships and commercial contracts. The institution ran without a short-term overdraft facility in this financial year. Cash was supplemented by restructure of long-term lending. Cash reserve has been and will continue to be utilised for site investments.
## Reserves Policy and Position
BCNO’s reserves policy is to maintain sufficient free reserves to enable it to meet its short term financial obligations in the event of an unexpected drop in income and enable the organisation to continue to carry out its core activity. In addition to ensuring that the core operational costs of the organisation can be met, the policy is also there in circumstances where the organisation may need to cease to trade to meet outstanding liabilities, including redundancies.
The unrestricted funds amounted to £8.97m as at 31 August 2023 ( 2022:£6.5m), with these being in a mixture of fixed assets, freehold property and cash investments. Following the sale of Lief House during the year under review, the Board agreed to hold £3m funds in cash investment deposit accounts for the next 18 months and will review on a rolling basis.
16
**BCNO Limited Trustees’ Annual Report for the year ended 31 August 2023**
## **Accounting and Reporting Responsibilities**
## **Statement of Trustees' Responsibilities**
The trustees (who are also directors of BCNO Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
## **Auditors**
Mazars LLP were appointed as auditors in 2021 and a resolution to reappoint them will be submitted to the forthcoming Annual General Meeting.
## **Disclosure of Information to Auditors**
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Small company rules**
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by the Board of Directors and Trustees on 29 May 2024 and signed on its behalf.
## Conor McDermott
Conor McDermott (May 29, 2024 10:16 GMT+1)
## **Conor McDermott Trustee**
17
## **BCNO Limited Independent Auditor's Report to the member of 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 2023 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:
- give a true and fair view of the state of the charity’s affairs as at 31 August 2023 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.
18
## **BCNO Limited Independent Auditor's Report to the member of BCNO Limited**
## **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:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime, and take advantage of the small companies’ exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 17, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 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 industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, and anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
- Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006, the Charities Act 2011 and the Charities Statement of Recommended Practice.
19
## **BCNO Limited Independent Auditor's Report to the member of BCNO Limited**
In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
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.
## **Other required reporting**
## **Opinion on other matters prescribed in the OfS Audit Code of Practice issued under the Further and Higher Education Act 1992**
In our opinion, in all material respects:
- funds provided by the OfS and UK Research and Innovation (including Research England) have been applied in accordance with the relevant terms and conditions attached to them; and
- the requirements of OfS’s accounts direction have been met.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the OfS Audit Code of Practice requires us to report to you if, in our opinion:
- the provider’s grant and fee income, as disclosed in the notes to the financial statements, has been materially misstated.
## **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: 29 May 2024
20
**BCNO Limited Statement of financial activities year ended 31 August 2023**
|**Unrestricted**
**funds**
**Note**
**£**
**Income from:**
Donations and legacies
2
2,722
Charitable activities
3
3,849,533
Investments
4
3,668
Other income
5
48,074
_________
**Total income**
**3,903,997**
**Expenditure on:**
Charitable activities
6
(4,630,296)
_________
**Total expenditure**
**(4,630,296)**
Losses on revaluation of
investment property
-
Gain on disposal of Lief House
3,434,522
_________
**Net income / (expenditure)**
**2,708,223**
**Transfer in of assets from ESO**
28
-
_________
**Net income before transfers**
2,708,223
**Transfer between funds**
20
(234,397)
_________
**Net movement in funds**
**2,473,826**
**Reconciliation of funds:**
Total funds brought forward
6,500,217
_________
**Total funds carried forward**
**8,974,043**
_________|**2023**
**Restricted**
**funds**
**Total**
**£**
**£**
-
2,722
-
3,849,533
-
3,668
-
48,074
______
_________
**-**
**3,903,997**
-
(4,630,296)
______
_________
**(4,630,296)**
-
-
-
3,434,522
______
_________
**-**
**2,708,223**
-
-
______
_________
-
2,708,223
234,397
-
______
_________
**234,397**
**2,708,223**
1,636,144
8,136,361
__ ____
_________
**1,870,541**
**10,844,584**
_________
_________|**2022**
**Total**
**£**
140
4,246,800
277
47,664
_________
**4,294,881**
(4,582,441)
_________
**(4,582,441)**
(806,250)
-
_________
**(1,093,810)**
4,357,725
_________
3,263,915
-
_________
**3,263,915**
4,872,446
_________
**8,136,361**
_________|
|---|---|---|
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 24 to 39 form part of these financial statements.
21
**BCNO Limited Balance sheet as at 31 August 2023**
|**Note**
**Fixed assets**
Tangible assets
12
Investment property
13
**Current assets**
Debtors
14
Stock
15
Cash at bank and in hand
**Creditors**
16
**Net current assets**
**Total assets less current assets**
**Creditors: due after more than one year**
17
**Net assets**
**Charity funds**
Restricted funds
20
Unrestricted funds
20
**Total charity funds**|**2023**
**2022**
**£**
**£**
6,551,071
6,882,070
-
2,118,750|
|---|---|
||6,551,071
9,000,820
521,779
497,366
1,371
1,371
4,395,836
473,108|
||**4,918,986**
**971,845**
(625,473)
(481,231)|
||4,293,513
490,614
_________
_________
10,844,584
9,491,434
-
(1,355,073)|
||**10,844,584**
**8,136,361**|
||1,870,541
1,636,144
8,974,043
6,500,217|
||**10,844,584**
**8,136,361**|
The financial statements were approved and authorised for issue by the Board on 29 May 2024
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 Directors and Trustees
## Conor McDermott
Conor McDermott (May 29, 2024 10:16 GMT+1)
**Conor McDermott** Trustee
The notes on pages 24 to 39 form part of these financial statements.
22
**BCNO Limited Cash flow statement for the year ended 31 August 2023**
|||**2023**|**2022**|
|---|---|---|---|
||**Note**|**£**|**£**|
|**Cash flow generated from operating activities**|22|(183,454)|209,607|
|||_______|_______|
|**Net cash flow provided by operating activities**||(183,454)|209,607|
|||_______|_______|
|**Cash flow from investing activities**||||
|Transfer of cash from The European School of Osteopathy||-|40,806|
|Interest received||3,668|277|
|Interest payable||(94,698)|(5,629)|
|Proceeds on disposal of investments||5,981,473|-|
|Purchase of fixed assets||(374,360)|(230,692)|
|||_______|_______|
|**Net cash flow generated from / (used in) investing activities**||5,516,083|(195,238)|
|||_______|_______|
|**Cash flow from financing activities**||||
|Repayment of long term loans||(1,409,901)|(746,394)|
|New loans||-|1,355,073|
|||_______|_______|
|**Net cash flow (used in) / generated by financing activities**||(1,409,901)|608,679|
|||_______|_______|
|**Change in cash and cash equivalents in the year**||3,922,728|203,834|
|**Cash and cash equivalents at 1 September**||473,108|269,274|
|||_______|_______|
|**Cash and cash equivalents at 31 August**||4,395,836|473,108|
|||_______|_______|
|**Cash and cash equivalents consists of:**||||
|Cash at bank and in hand||4,395,836|473,108|
|||_______|_______|
|**Cash and cash equivalents at 31 August**||4,395,836
_______|473,108
_______|
The notes on pages 24 to 39 form part of these financial statements.
23
**BCNO Limited Notes to the financial statements**
## 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**
The Trustees continue to review the company’s position in response to the challenging sector environment and changes to the student population. The Trustees have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future and that it is therefore appropriate to prepare the accounts on the going concern basis.
## (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.
24
**BCNO Limited Notes to the financial statements**
## 1. **Summary of significant accounting policies (continued)**
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:
- Expenditure on charitable activities includes all costs incurred in relation to the continued operations of the entity.
- Investment costs consists of management fees relating to the investment holdings.
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.
## (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.
25
**BCNO Limited Notes to the financial statements**
## 1. **Summary of significant accounting policies (continued)**
## (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.
## (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.
26
**BCNO Limited Notes to the financial statements**
## 1. **Summary of significant accounting policies (continued)**
- (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.
## _**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.
## 2. **Income from donations and legacies**
|Bequests and other donations|**2023**
**£**
2,722
______|**2022**
**£**
140
______|
|---|---|---|
27
**BCNO Limited Notes to the financial statements**
## 3. **Income from charitable activities**
|Academic and professional services
Clinical services
come derived from charitable activities related to general funds.
**ncome from investments**
Bank deposits
**ther income**
Insurance income
Miscellaneous income|**2023**
**£**
3,432,322
417,211
_________
3,849,533
_________
**2023**
**£**
3,668
_____
**2023**
**£**
46,145
1,929
_______
48,074
_______|**2022**
**£**
3,875,912
370,888
_________
4,246,800
_________
**2022**
**£**
277
_____
**2022**
**£**
43,948
3,716
_______
47,664
_______|
|---|---|---|
||__|_|
All income derived from charitable activities related to general funds.
## 4 **. Income from investments**
## 5. **Other income**
Other income consists of insurance income relating to the salaries of two members of staff on long term sick leave.
28
## **BCNO Limited Notes to the financial statements**
## 6. **Analysis of expenditure on charitable activities**
|**Activities**
**undertaken**
**directly**
**Support**
**costs**
**(note 7)**
**£**
**£**
Academic and professional services
1,827,850
1,103,181
Clinical services
662,808
673,127
Research
165,103
93,490
Marketing and advertisement
104,737
-
_______
_______
2,760,498
1,869,798
_______
_______|**Activities**
**undertaken**
**directly**
**Support**
**costs**
**(note 7)**
**£**
**£**
Academic and professional services
1,827,850
1,103,181
Clinical services
662,808
673,127
Research
165,103
93,490
Marketing and advertisement
104,737
-
_______
_______
2,760,498
1,869,798
_______
_______|**Activities**
**undertaken**
**directly**
**Support**
**costs**
**(note 7)**
**£**
**£**
Academic and professional services
1,827,850
1,103,181
Clinical services
662,808
673,127
Research
165,103
93,490
Marketing and advertisement
104,737
-
_______
_______
2,760,498
1,869,798
_______
_______|**2023**
**Total**
**£**
2,931,031
1,335,935
258,593
104,737|
|---|---|---|---|
||||_________|
|||||
||||4,630,296|
||_______|_______|_________|
None of the above costs were attributable to restricted funds in either year.
## 7. **Allocation of support costs**
|**Support cost**
**Academic**
**and**
**professional**
**services**
**£**
Governance (see note 8)
102,134
Finance and administration
314,222
IT
95,043
Property
369,087
Other support costs
222,695
_______
Total
1,103,181
_______
**overnance costs**
Auditor’s remuneration
Legal costs|**Clinical**
**services**
**Research**
**2023**
**Total**
**2022**
**Total**
**£**
**£**
**£**
**£**
62,319
8,655
173,108
109,139
191,729
26,629
532,580
672,907
57,993
8,055
161,090
163,954
225,205
31,279
625,571
505,351
135,882
18,872
377,449
299,341
_______
______
_______
_______
673,127
93,490
1,869,798
1,750,692
_______
______
_______
_______
**2023**
**2022**
**£**
**£**
62,496
33,031
110,612
76,108
______
______
173,108
109,139
______
______|
|---|---|
## 8. **Governance costs**
29
## **BCNO Limited Notes to the financial statements**
## 9. **Net income for the year**
Net income is stated after charging:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Depreciation of tangible fixed assets|277,160|231,012|
|Bad debts|7,975|84,674|
|Auditor’s remuneration (excluding VAT):|||
|Audit fees|45,000|24,031|
|Other services|4,400|6,600|
|Prior year overrun|-
______|2,400
______|
## 10. **Trustees' and key management personnel remuneration and expenses**
The Principal and staff Trustees only receive remuneration in respect of services they provide undertaking the roles of Principal and staff and not in respect of their services as Trustees. The Principal ceased to be a Trustee at the start of the previous year under review.
Other Trustees did not receive any payments, other than reimbursed expenses, from the College in respect of their role as Trustees. The value of the Trustees’ remuneration received was as follows:
- Mr M Mehta: £nil (2022: £39,864)
- Dr K Rolfe: £nil - Principal (2022: £nil)
During the year 3 Trustees (2022: 3) have been reimbursed a total of £1,057 (2022: £1,088) for travelling expenses incurred attending meetings of the College.
Total remuneration paid to key management personnel was £481,479 (2022: £497,633).
There were no other related party transactions involving the Trustees or Key Management.
30
## **BCNO Limited Notes to the financial statements**
## 11. **Staff Costs and Employee Benefits**
The average monthly number of employees and full time equivalent (FTE) during the year was as follows:
|The Average number of employees of the College during the year was:|**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
|Full time|18|20|
|Fractional|180|191|
||___|___|
||198|211|
||___|___|
|Full time equivalents|55|68|
||___|___|
|he total staff costs and employees benefits were as follows:|||
||**2023**|**2022**|
||**£**|**£**|
|Wages and salaries|2,454,634|2,373,355|
|Social security|173,815|177,082|
|Other pension costs|73,530|80,184|
||________|________|
||2,701,979
________|2,630,621
________|
The total staff costs and employees benefits were as follows:
The above emoluments include amounts payable to the Head of Provider of the College:
|Wages and salaries
Social security
Other pension costs|**2023**
**£**
73,078
9,296
7,297
________
89,671
________|**2022**
**£**
68,970
8,774
7,297
________
85,041
________|
|---|---|---|
The remuneration package for the head of the provider is determined by taking into account the wider organisational context, alongside consideration of their performance and any relevant market considerations. The Remuneration committee, a sub committee of the Financial Oversight Committee, is responsible for considering and approving the remuneration of the Senior Management Team, including that of the head of the provider.
The Head of Provider’s basic salary is 3.52 times the median pay of staff, where the median is calculated on a full-time equivalent basis for the salaries paid by the provider to is staff.
The Head of Provider’s total remuneration is a contracted salary without further package benefits. Total remuneration is 3.52 times the median of staff, where the median total remuneration is calculated in a full-time equivalent basis for the total remuneration by the provider to its staff.
Redundancy payments of £31,534 (2022: £60,801) were paid in the year.
31
**BCNO Limited Notes to the financial statements**
## 11. **Staff Costs and Employee Benefits (continued)**
The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:
||**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
|£70,001 - £75,000|1|1|
|£85,001 - £90,000|1|1|
||___|___|
|Pension contributions of £9,877 (2022: £9,877) were made by the charitable company during||the year|
|on behalf of higher paid employees.|||
32
## **BCNO Limited Notes to the financial statements**
## 12. **Tangible fixed assets**
|**Cost or valuation:**
At 1 September
2022
Additions
Disposals
At 31 August 2023
**Accumulated**
**Depreciation:**
At 1 September
2022
Charge for the year
Disposals
At 31 August 2023
**Net book value:**
At 31 August 2023
At 31 August 2022|**Land and**
**buildings**
**Frazer**
**House**
**£**
2,062,500
279,093
-
________
**2,341,593**
________
449,628
46,487
-
_______
**496,115**
_______
**1,845,478**
________
**1,612,872**
|**Land and**
**buildings**
**Lief**
**House**
**Land &**
**buildings**
**Tondbridge**
**£**
**£**
436,592
1,400,000
-
33,612
(436,592)
-
________
________
-
**1,433,612**
________
________
122,105
28,000
-
28,193
(122,105)
-
_______
________
**-**
**56,193**
_______
________
**-**
**1,377,419**
_______
_______
**314,487**
**1,372,000**
|**Land &**
**buildings**
**Boxley**
**House**
**Building**
**Improvements**
**Furniture,**
**Equipment**
**and**
**heating**
**Databases**
**Sundry**
**equipment**
**Resource**
**equipment**
**£**
**£**
**£**
**£**
**£**
**£**
2,574,620
2,004,304
305,855
52,931
118,997
47,105
-
-
6,288
-
2,476
-
- (124,943)
-
-
-
-
________
________
________
________
________
________
**2,574,620**
**1,879,361**
**312,143**
**52,931**
**121,473**
**47,105**
________
________
________
________
________
________
51,378
1,174,138
300,481
52,931
17,728
7,066
51,411
36,738
9,370
-
9,070
6,006
- (11,231)
-
-
-
-
________
________
________
________
________
________
**102,789**
**1,199,645**
**309,851**
**52,931**
**26,798**
**13,072**
________
_______
_______
______
________
________
**2,471,831**
**679,716**
**2,292**
**-**
**94,675**
**34,033**
_______
_______
_______
_______
_______
_______
**2,523,242**
**830,166**
**5,374**
-
**101,269**
**40,039**
|**Library**
**£**
12,382
-
-
______
**12,382**
______
2,476
1,981
-
______
**4,457**
______
**7,925**
______
**9,906**
|**IT**
**£**
108,958
52,891
-
______
**161,849**
______
36,243
87,904
-
______
**124,147**
______
**37,702**
______
**72,715**
|**Total**
**£**
9,124,244
374,360
(561,535)
________
**8,937,069**
|
|---|---|---|---|---|---|---|
|||_
||||________
2,242,174
277,160
(133,336)
________
**2,385,998**
|
|||||||________
**6,551,071**
_______
**6,882,070**
|
33
## **BCNO Limited Notes to the financial statements**
## 12. **Tangible fixed assets (continued)**
The freehold property, Frazer House, 6 Netherhall Gardens, was valued by the Trustees 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 was 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. The property was sold during the year.
The freehold land and buildings at Boxley House and Tonbridge Road were transferred from Osteopathic Education and Research Limited on 1 September 2021. These properties are included at market value at the date of transfer.
The Trustees are satisfied that the net realisable values of the properties are at least as much as their net book amounts.
34
**BCNO Limited Notes to the financial statements**
## 13. **Investment Property**
|**Investment Property**||
|---|---|
||**2023**|
||**Total**|
||**£**|
|At 1 September 2022|2,118,750|
|Disposals|(2,118,750)|
||________|
|At 31 August 2023|-|
||________|
|Historical cost|-|
||________|
|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 property was sold during the year.||
## 14. **Debtors**
|Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
**tock**
Books for resale|**2023**
**2022**
**£**
**£**
320,381
432,680
201,398
64,686
______
______
521,779
497,366
______
______
**2023**
**2022**
**£**
**£**
1,371
1,371|
|---|---|
## 15. **Stock**
## 16. **Creditors: amounts falling due within one year**
|Bank loans and overdrafts
Trade creditors
Other tax and social security
Other creditors
Accruals and deferred income|**2023**
**£**
-
353,886
6,939
50,066
214,582
_ _____
625,473
_______|**2022**
**£**
54,826
165,819
120,747
39,758
100,081
_ _____
481,231
_______|
|---|---|---|
35
## **BCNO Limited Notes to the financial statements**
## 17. **Creditors: amounts falling due after more than one year**
|Bank loans
Borrowings are repayable as follows:
Within one year
Between one and two years
Between two and five years
Total repayable|
|**2023**
**£**
-
_______
-
-
-
________
-
_______|**2022**
**£**
1,355,073
________
54,826
236,498
1,118,577
________
1,409,901
________|
|---|---|---|---|
Lief House was sold during the year and the loan repaid in full.
## 18. **Leases**
## **Operating leases - lessee**
Total future minimum lease payments under non-cancellable operating leases are as follows:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Not later than one year|8,642|9,441|
|Between two and five years|5,329|20,968|
||_____|_____|
||13,971
_____|30,409
_____|
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.
## 19. **Contingent liabilities/assets**
There were no contingent liabilities or assets at 31 August 2023 or at 31 August 2022.
36
**BCNO Limited Notes to the financial statements**
## 20. **Fund reconciliation**
## **Unrestricted funds**
|**Balance at**
**1 September**
**2022**
**£**
Unrestricted
6,500,217
________
**estricted funds**
**Balance at**
**1 September**
**2022**
**£**
Frazer
House
1,611,081
Philo Fund
(2,064)
BNOA
4,888
Capital Bids
22,239
________
Total
1,636,144
|**Income**
**Expenditure**
**Transfers**
**Gain on**
**property**
**Balance at**
**31 August**
**2023**
**£**
**£**
**£**
**£**
**£**
3,903,997
(4,630,296)
(234,397)
3,434,522
8,974,043
________
______
________
________
________
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 August**
**2023**
**£**
**£**
**£**
**£**
-
-
234,397
1,845,478
-
-
-
(2,064)
-
-
-
4,888
-
-
-
22,239
______
______
______
________
-
-
234,397
1,870,541
|
|---|---|
||___
|
## **Restricted funds**
## **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 £234,397 to restricted funds to general funds represents the additions and depreciation incurred on Frazer House.
The Philo Fund is negative at the year end. Further monies were received in after the balance sheet date to return this to a positive balance.
## 21. **Analysis of net assets between funds**
|Fixed assets
Investment property
Net current assets
Creditors due in
more than one year
Total|**Unrestricted**
**funds**
**Restricted**
**fund Frazer**
**House**
**Restricted**
**fund**
**Philo**
**Restricted**
**fund**
**BNOA**
**Restricted**
**fund Capital**
**Bids**
**2023**
**Total**
**£**
**£**
**£**
**£**
**£**
**£**
4,705,593
1,845,478
-
-
-
6,551,071
-
-
-
-
-
-
4,268,450
-
(2,064)
4,888
22,239
4,293,513
-
-
-
-
-
-|
|---|---|
||**8,974,043**
**1,845,478**
**(2,064)**
**4,888**
**22,239**
**10,844,584**|
37
**BCNO Limited Notes to the financial statements**
## 22. **Reconciliation of net expenditure to net cash flow from operating activities**
|Net income (expenditure) for the year
Interest payable
Interest received
Depreciation and impairment of tangible fixed assets
(Gain) loss on investment property
(Increase) in debtors
Increase/(decrease) in creditors
Net cash flow generated from operating activities|**2023**
**2022**
**£**
**£**
2,708,223
(1,093,810)
94,698
5,629
(3,668)
(277)
277,160
231,012
(3,434,522)
806,250
(24,413)
(141,340)
199,068
(17,071)
_______
_______
(183,454)
(209,607)|
|---|---|
## 23. **Financial commitments**
The college has no financial commitments at the year end.
## 24. **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 Trustees’ expenses / salaries.
## 25. **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 2023.
## 26. **Post balance sheet events**
There are no post balance sheet events.
38
## **BCNO Limited Notes to the financial statements**
## **27. Comparative Statement of Financial Activities**
|**Unrestricted**
**funds**
**£**
**Income and endowments from:**
Donations and legacies
140
Charitable activities
4,246,800
Investments
277
Other income
47,664
_________
**Total income and endowments**
**4,294,881**
**Expenditure on:**
Charitable activities
(4,582,441)
_________
**Total expenditure**
(4,582,441)
Losses on investment property
(806,250)
_________
**Net (expenditure)**
(1,093,810)
**Transfers between funds**
54,092
_________
**Net movement in funds**
3,318,007
**Reconciliation of funds:**
Total funds brought forward
3,182,210
**Total funds carried forward**
**6,500,217**
_________|**2022**
**Restricted**
**funds**
**£**
-
-
-
-
______
**-**
-
______
-
-
______
-
(54,092)
______
(54,092)
1,690,236
**1,636,144**
_________|**Total**
**£**
140
4,246,800
277
47,664
_________
**4,294,881**
(4,582,441)
_________
(4,582,441)
(806,250)
_________
(1,093,810)
-
_________
3,263,915
4,872,446
**8,136,361**
_________|
|---|---|---|
## 28. **Transfer in from Osteopathic Education and Research Limited**
The following assets and liabilities were transferred from Osteopathic Education and Research Limited on 1 September 2021:
|Property, plant and equipment
Stock
Debtors
Cash
Creditors|**Book**
**value**
**£**
**Revaluation**
**on transfer**
**£**
**Transfer**
**Value**
**£**
2,829,260
1,370,488
4,199,748
1,371
-
1,371
326,704
-
326,704
40,806
-
40,806
(210,904)
-
(210,904)|
|---|---|
||**2,987,237**
**1,370,488**
**4,357,725**|
39