The Northern College for Residential Adult Education Limited Annual report and financial statements For the period ended 28 February 2026 Northern College Company registration number: 01339524 Charity registration number: 0507245 The Northern Colle9e for Resldentoal Adult Educatoon Llmlted Annual report and financial statements for the period ended 28 February 2026 Company information Company registration number. 01339524 Charty reglstratlon number: 0507245 Principal address and registered office: Wentworth Castle Lowe Lane Stainborough BARNSLEY South Yorkshire S75 3ET Key Management Personnel: E Beal - Chief Executive/Accounting Officer to 17th December 2025. Left 31 $1 December 2025 S Saunders- Deputy PrincipallCFO to 30th November 2025. Interim Principal from 1 St December 2025 to 17th December 2025. Interim Principal, Chief Executive and Accounting Officer from 18th December 2025 to 28lh February 2026 D Lawson Assistant Principal, Student Experience to 28th February 2026 A Lythgoe - Interim CFO from 1" December 2025 to 28" February 2026 Company Se¢retary: K Boulter (from 17th June 2024 to 12th December 20241 S Saunders (from 12th December 2024 to 28, February 20261 J Melling (from I" March 20261 Clerk to Governors: K Boulter (from 17 June 2024 to 12 December 20241 A Shillito113 December 2024 to 9th March 20251 F Chalk110th March 2025 to 31, July 20251 G Hulley Ifrom 1 sf September 2025 to 28th February 20261 Memb•rs: A full list of governors is on page 18-20 of these financial statements Bankers: Lloyds Bank plc 14 Church Street SHEFFIELD S1 1HP Sollcltors: Womble Bond Dickinson IUKI LLP 1 Whitehall Riverside LEEDS LS14BN The Northern College for Resodentlal Adult Educatlon Llmlted Annual report and Ilnanclal statements for the perlod ended 28 Febrnary 2026 Company information Flnanclal statements audltor: RSM UK Audit LLP Statutory Auditor 1. Floor Two Humber Quays Wellington Street West HU12BN The Northern Colle9e for Resldentoal Adult Educatoon Llmlted Annual report and financial statements for the period ended 28 February 2026 Index to the financial statements Report of the member5 of the Board of Governors incorporating the Operating and Financial Review and Strategic Report 2-17 Corporate governance statement incorporating the statement of internal control 18-28 Statement of Regularity. Propriety and Compliance 29 Statement of governing body's responsibilities 30-31 Independent auditor's report to the members of The Northern Colle9e for Residential Adult Education Limited 32-35 Statement of comprehensive income 36 Balance sheet 37 Ststement of changes in reserves 38 Ststement of cash flows 39 Notes to the financial $tatements 40-59 Reporting accountant's assurance report on regularity The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report Objectives and Strategy The Board of Governors present their final annual report together with the financial statements and auditor's report for The Northern College for Residential Adult Education for the period ended 28 February 2026. Merger The Board and the Executive Leadership Team had been working with the FE Commissioner Team, the Department for Education and other partners to achiev& sustainable, high quality further education provision for adults in Barnsley and the wider regions. The proposal for merger was borne from the need to secure the long-term future for Northern College at a time of current and expected future challenges around the continuation of devolved funding for adult residential provision and planned reduction in Adult Skills Funding. Barnsley College as the closest further education provider geographically to Northern College is a lar9e Tertiary Colle9e that deliver5 education across all age groups from a9e 14 to adult, offers apprenticeship provision and higher education programmes and has the Size and diversification to deliver this future security and sustainability for Northern College's adult provision. The merger recognised the importance of retaining Northern College as a key educational asset for adult students in South Yorkshire, West Yorkshire, and the wider region, most of whom face social and economic disadvantage. As such, the name and identity of Northern College remain as part of the merged entity. Northern College transferred its property, rights and liabi lities to Barnsley College on 1 March 2026. The exception to this was in relation to the main house at Northern College. The house was transferred to Barnsley Metropolitan BoroLJgh Counci I IBMBCI. Barnsley College is committed to the continued use of the main house for teaching and learning activities and has negotiated a commercial lease for this purpose with BMBC. All existing students èt Northern College at the point of transfer Continued their studie5 as planned. The Northern College for Residential Adult Education Limited ceased delivery and all provision was transferred to Barn51ey College on 1 March 2026. For thi5 reason, the College Governors have concluded that it is no longer appropriate to prepare the financial statements on a going concern basis. With exception to the impairment loss and associated release of deferred capital grants attached to Wentworth Castle, no other adjustments arose as a result of ceasing to apply the going concern basis. The College Northern College for Residential Adult Education wa5 a Specialist Designated Institution based at Wentworth Castle, Barnsley, South Yorkshire. Founded in 1978. It was designated under Section 28 of the Further and Higher Education Act 1992, as eligible to receive funding from the Department for Education IDfEI. The College was a charity for the purposes of the Charities Art 1993 as amended by the Charities Act 2011. On 29, November 2022 Colleges were reclassified by Office of National Statistics IONS) into the central government sector, as a result the regularity framework for colleges has expanded to take into account the requirements of His Majesty's Treasury Managing Public Money IMPMI. Requirements relating to delegated authorities are contained within Part 5 of the College Financial Handbook 2024. From April 2025 all responsibilities of the former Education and Skills Funding Agency were transferred to the Department for Education. In September 2025 the responsibility for adult further education and skills transferred to the Department for Work and Pensions. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report The College is a regional provider, offering a range of provision for adults on a residential and non- residential basis across South and West Yorkshire as well as further afield. The College prepared adults to re-enter education, gain employment or to make career changes through an immersive residential learning and support experience. The College was set in acres of National Trust gardens and parkland that students could access as part of their studies at Northern College. The College provided a platform for reengagement with education and prided itself on designing bespoke pathways in partnership with its stakeholders. These partnerships allowed the College to reach out to adults who may not have had the opportunity to fulfil their potential and unlock their ambitions. The curriculum was driven by local / regional economic and underpinning skills priorities which included health and social care, business and management, English, maths, digital skills and inclusive growth. The College offered a range of courses from entry to higher level programmes enabling adults to succeed regardless of starting point. The College had 8 specialism in supporting the success of adults from disadvantaged backgrounds and those facing multiple barriers to educ3tion and skills development. Students regularly reported that the College had changed their life. Northern College was the only adult residential College in the region and as such had a unique rolè in contributing to meeting loczl Skills need5. Through residential education Northern College could offer a transformative learning experience, accelerating personal grovrth, facilitating networking, and it provided opportunities for specialised and immersive learning. In March 2023, the College was inspected by Ofsted and judged Good across all areas and as making a reasonable contribution to the skills agenda. Enabling inclusive grovrth is at the heart of the West Yorkshire Combined Authority IWYCAI and South Yorkshire Mayoral Combined Authority ISYMCAI Adult Skills Fund IASFI commissionin9 Strategies, as well as the individual Local Authority skills strategies, and was a central pillar of the Northern College curriculum. Providing adults with an opportunity to learn and raising the aspirations of some of the nation's most disadvantaged communities is vital if the UK is to bridge the current skills and productivity gap which evidence shows is holding back the economy. The College was focused on reaching these adults. According to NOMIS data (May 20221, Yorkshire and Humber continLJe to lag behind national averages for working age population qualified to level 2, level and level 4 and above with the gap widening at each level point, to a 5% point difference at Level 4 and above, (only 31%of the working age population arequalified tothi5 l&vell. Thi5 is compounded by higher rates of unemployment and long-term sickness. Labour market inactivity rates are a key regional i55ue with 222,000 adults categorised as long-term sick within the region. Yet of these people, 148,100 are recorded as wanting to work, creating a large pool of people who require support and skills to move into work. The Company Northern College Is a company limited by guarantee and has no share capital,. the liability of its members was limited to an amoLJnt not exceeding £1. The College was incorporated on the 18 November 1977. Mission and Values The College's mission was reviewed in 2023 alon95ide the development of a new Strategic Plan 2023- 26. This was approved by the Board of Governors in July 2023. The College's mission up to the merger date remained Inspiring positive change through adult education. The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report The College's values were.. Always be ambitious- we have high aspirations and expectations.. we balance support and challenge, and we seek to improve in everything we do. Have people al our heart- we share, innovate and collaborate, we value every individual, we are inclusive, and we celebrate diversity. Make things happen - we are clear and straighrforward,. we take personal responsibility, and we listen so we can understand and take action. Implementation of the 2023-2026 Strategic Plan The College had developed a Strategic Plan for 2023-2026, which èimed to build on a long and celebrated history of changing lives through education. It clearly stated its ambititsn to ensure that Northern College met the needs of its students, communities and the economy in future years. The College saw its future a5 one of collaboration with partner5. It fulfilled this ambition through a merger with Barnsley College on 1. March 2026. The strategy had 3 key strategic themes which remained as the focus for the College's activities up to the date of mer9er'. Be sustainable we will future proof the College by flexin9 our offer, ensuring maximum impact is gained from our unique assets. Elevate our profile we will be recognised nationally and regionally as è leader in adult education. High quality- we will realise a clear and ambitious vision for high-quality, inclusive education and training building on our successful Ofsted inspection in 2023. FEHE SORP 26127 This will be implemented from 2026127, however, due to all activities and assets and liabilities transferring to Barnsley College, this will not be relevant. Strategic Context In February 2021, the FE Commissioner set out a 'perfect storm, of circumstances which meant the College's financial future was uncertain. The College was placed In formal Intervention and a Structure and Prospects Appraisal was triggered. Since then, working in collaboration with the FEC team, DfE and South Yorkshire ISYMCAI and West Yorkshire Mayoral Combined ALJthorities IWYCAI, and within the intervention framework, the College made significant headway in addressing the challenges it faced. In 2023124 and 2024125, the College received significant capital funding through FLirther Edtjcation Capital Transformation Programme, Local Skills Improvement and SYMCA Innovation funding. The monies were used to develop and stimulate curriculum growth and to deliver improvements to the estate. In March 2025 the College approved its 2023124 Financial statements with 'full going concern and no material uncertainty, for the firsttime since intervention, the FE Commissioner congratulated the College on this achievement and improved financial position at the last Stocktake visit In April 25. In May 2025 the College won the Educate North Award for Social Mobility. The College refocussed key aspects of the curriculum in line with its funders priorities which led to year- on-year enrolment growth. The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report The FE Commissioner continued to visit the College for Stocktake visits throughout this time. No new recommendations have arisen as a result of these visits but a new Single Improvement Plan was agreed in August 2025. The key challenges facing the College remained that absence of a long-term, appropriate funding formula for Adult Residential Education and the risk of further cuts to adult educztion funding over811 which ultimately were among the key reasons for the decision to merge with Barnsley College. Current and fvture development and performance In the 2025-26 Accountability Statement the College set OLit a series of targets which are set OLit below in the CLirriculum priorities. The College remained committed to these targets throughout the 2025-26 period up to the date of merger. Curriculum Content The curriculum was split into 2 key areas which were underpinned by the Northern College Skills Framework with a focus on resilience, adaptability, evaluation, innovation, problem solving and decision making. Following robust career advice and guidance, learners had individualised lezrning pathways which focusged on supporting 2nd developing purposeful progression towards further study or work aligned to the key local and national priorities. Health & Social Care English, Maths & ESOL Counselling Community & Social Action Social Studies Personal Wellbeing Access to HE Employability Business & Enterprise Digital & IT Trade Union Studies Curriculum priorities for 2025-26 were to: Continue to grow and diversify Adult Skills Fund provision aligned to national and regional needs and priorities. Specifically, this included.. Ensuring its provision focussed on supporting adults who are economically inactive to develop the skills for work. Focus on employer engagement and work with a wide range of employer5 to give them more direct input Into College provision. Continue to grow the range of flexible / blended pathways on offer. Embed innovation projects in horticulture and learning difficLJlties I disabilities. Embed the immersive ESOL programme focused on language development for professional and social settings. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report Embed a new impact framework that meets the needs of funders and allows them to champion the work of the College. Increase the digital literacy of students and staff through the delivery of the final stages of the LSIF programme. The digital strategy drove dèvelopments in this arèa and ensured a future focused approach to technology within the College. Launch and embed the Immersive classroom technology into delivery. Deliver a programme of support and training to ensure staff could integrate technology into their teaching and work practices. Continue to increase the number of adults improving their digital skills through College provision. The intention was to ensure a seamless transition for learners and curriculum priorities following the merger with Barnsley College. Resources The College had various resources that it deployed in pursuit of its strategic objertives. Physical The College is located in a peaceful, rural setting, including a magnificent grade one listed house, maintained in a way that enabled everyone to experience the traditional features, inspiring and motivating students to learn. The house is situated in beautiful gardens and parkland managed by The National Trust to which College students had access. The College was one of only two residential Colleges in the country, providing residential accommodation lor students. It provided an immersive experience for adults, allowing them to focus 100% on their studies away from the pressures of everyday On campLiS adults worked together for an intensive period of time, rebuilding their confidence to learn, engaging with like-minded peers and becoming part of an adult learning community. The College had secured capital funding through the FE Transformation Fund and LSIF to support and improve the condition of the estate and its facilitieg. This supported the conversion olthe old library into 8 new Digital Hub and installation of a new immersive classroom which were availablè for all students, secondary glazing which wag installed to improve energy efficiency and sugtainability, 2nd new teaching space created from previou5 office space within the main building. All capital projects related to the main house were completed on 28, February 2026, ènd ag ègreed with the DfE, unspent capital funding amounting to £367k was transferred to Barnsley College upon merger. All the capital 9rant funded projects completed by 31, March 2026. The unique campus and residential accommodation played a fundamental role in the facilitation of successful teaching and learning. The 2023-2026 Strategy provided the vision for development in terms of new curriculum opportunities, space utilisation, commercial and partnership opportunities, and sustainability. The College worked closely with Barnsley College and other key stakeholders in the period to 28 February 2026 to progress the merger. This was in the interests of strengthening the long-term future of the College's provision. Post merger, Barnsley College is committed to provision continuing at the Wentworth Castle site, including the unique residential provision, where it continues to be funded. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report People The College employed an average of 61 people12024-25., 591, which includes teaching staff, learning support Staff and business support staff. Students The Colle9e had 1,394 enrolments to the end of February 2026. 1,076 were funded throu9h South Yorkshire Mayoral Combined Authority 302 through West Yorkshire Combined Authority and 16 through advanced learner loans. Reputation The College had a good reputation, locally, regionally and nationally. It was rated as Good in the last inspection by OFSTED in March 2023 with a 'rea50n3ble' contribution to meeting 5ki11s needs. The College received significant supportfrom a wide range of stakeholders, who recognised the importance of the College's unique provision to the local area. In October 2023 the College launched its new 2023- 2026 Strategic Plan, which wa5 attended by a wide range of Stakeholders including the Rt Hon Lord Blunkett, MP'S, Council officials, employers, community groups and other Colleges and HE institutions across South and West Yorkshire. Northern College's sustained commitment to social mobility and educational equity was nationally reco9nised through the Education North Award 2025.. Liverpool Hope Prize for Outstanding Achievement in Social Mobility, affirmin9 the College's impact and excellence in transforming lives through education. Post merger, the College no longer exists but recognition by key partners, stakeholders and learners of its commitment to meeting skills and learner needs is likely to continue for some time. Stakeholders The College had a wide range of stakeholders, including.. StLJdents EdLJcation Sector Funding bodies IDfE/SYMCAnNYCAI Staff Local Employers Local Authtsrities Mayoral Combined Authorities The Local Community Local Schools Other FE Institutions MP'S Trade Unions Professional Bodies National Trust Financial The College had remaining cash reserves on 28. February 2026 of £1,667k and no borrowings. The College had net current liabilities of £434k after fixed asset write-downs and adjustments to the lifetimes of remaining capital grants ,12025.. £2,672kl including £72k, pension liability12025 £75k liability) with no long-term debt. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report The value of the College's share of net assets for the LGPS pension scheme was E3,81 Ok12025 £3,315kl. However, this has been restricted due to the effect of the asset ceiling being the maximum value of the present of the economic benefits available in the form of the unconditional right to reduced contributions from the plan. A corresponding charge has been made to other comprehensive income in the period. Following the ONS reclassilication any btsrrowings required DIE consent. The College had no borrowings èt 28 February 2026. Charitablt status and public benefrt The College was a registered charity and the members of the Board of Governors, who were its trustees, are disclosed on pages 18-20. In setting and reviewin9 the College's strategic objectives, the Board of Governors had due re9ard for the Charity Commission's guidance on public benefit and particularly its supplementary guidance on the advancement of education. As a registered charity the College was committed to demonstrating the benefits its work provides for individuals, communities and the wider public. As a result of the ONS reclassification on 29th November 2022, whilst continuing to be a self-governing charity regulated by the Secretary of State for EdLJcation, the College was subject to the framework for financial management set out Ljnder Managing Public Money IMPMI. Requirements relating to delegated authorities are contained within Part 5 of the College Financial Handbook 2024. From April 202S all respongibilities of the former Education and Skills Funding Agency were transferred to the Department for Education. In September 2025 the responsibility for adult further education and skills transferred to the Department for Work and Pensions. The overall aim of the College as set out in its Memorandum of Association was 'to advance adult education, particularly by the provision, organisation and arrangement of full-time or part-time courses of study or educational research, whether or not leading to any formal qualification,. The College's mission built further on this overall aim. The College welcomed adults from many different backgrounds, often those that had not had the opportunity to access education and were seeking to return to learnin9. The College prided itself in supporting all its students to reach their potential and successfully progress into further or higher education, and work. Students may have had no prior formal qualifications, been active in communities and trade unions, needed to study essential skills to enter the workplace, accessed improved job opportunities or wished to take on professional upskilling. The College provided public benefit by ensuring that the learning it delivered.. Improved the qualifications, skills and employability of the groups and individuals it engaged in learning., Benefitted in other areas tsf public policy, lor example by enhancing health and wellbeing, reducing dependency on public services, supporting families and upskilling volunteer5', Transformed the lives of individvals which in turn contributed to the development of cohesive and r&5ilient communities,. Supported the region's need to upskill it5 adult population and addre55ed issues of social deprivation, poverty and economic inactivity., Added value to the activities of communities and trade unions. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report The College measured the impact of its work in a number of ways, primarily using data which was measured against internal performance indicators (Pls) and where possible against external benchmarks. Transparency arrangements The Board of Governors conducted its business through a number of committees. Each committee had terms of reference, which had been approved by the Board of Governors. Those committees were.. Audit, Curriculum, Quality and Student Experience, Finance & Resources and Remuneration & Governance. Each Committee met three times per year. Full minutes of all meetings are now available from Barnsley College's Director of Governance to the Board, except those deemed to be confidential at.. Barn51ey College PO BOx 266 Barnsley South Yorkshire S70 2YW Northern College's Clerk to the Governors maintained a register of the financial and personal interests of the governors. The register is now available for inspection at the above address. Development and Performance Financial results The College generated an operating deficit for the year of £2,315k, before pension adjustments12025 1£188k surplus). After pension adjustments a deficit of £2,430k,12025 surplus of £59kl. The College has accumulated income and expenditure reserves of £491 k, 12025,. £2,919kl and cash/cash equivalent balances of £1,667kl, 12025,. £3,282kl. Tangible fixed asset additions during the year amounted to £1,335k, all of which related to improvements and equipment PLJrchases. There was an exceptional release of deferred c3Pltal grants of £2,369k and impairment of £3,61 Ok relating to the Wentworth Castle main house which wag transferred to BMBC on 1 st March 2026. Nèt assets at the period end were £1,219k,12025 net assets £3,649kl. Cash Flows and liquidity At £338k,12025..£438k positivel a negative cash flow from operating activities was mainly due to the spend on capital grant5 held in advance from DtE, of which £367k, was unspent on 28 February 2026. This balance has been transferred to Barnsley College at the merger point to be spent on projects unrelated to the main house and completed by 31. March 2026. Creditors due within one year hav increased due to high mid-year provision for clawback of funding to funders relating to under recruitment in the current year. Financial Objertives The College had set the following financial objectives.. To achieve sustainability by remaining financially sound and to generate sufficient income to fund maintenance and improvement of Its accommodation and equipment. To maintain the confidence of funders, banker5 and auditors. To develop trained and financially aware budget manager5 With an understanding of the financial environment in which the College operates. To diversify income streams to optimise future funding. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 do Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report Performance Indicators The College's key performance indicators, targets and results are set out below.. Key performance indicator Measurel Target Artual for 7 months to 281212026 -550 -55° -60.1% 92.7% 84% 1.35 84 0% 1,394 Unknown at 281212026 Require5 rovement Sur lus as % of income - Excl. FRS 102 Pension Sur lus as % of income- Inc. FRS 102 Pension EBITDA°A - Education S ecific as % of income (Exc restructurin % of DfE/SYMCA/WYCA recurrent Ad'usted Current Ratio Cash Da s lexcludin uns ent ca Borrowin as % of turnover Enrolments Achievement rate% -1.3% -1.3% 1.0Y. 64.1% 88% 2.83 110 0% 2,769 91% and FR51021 rant income rant) Financial Health Good Treasury policies and objeclives Treasury management was the management of the College's cash flows, its banking, money market and capital market transactions,. the effective control of the risks associated with those activities,. and the pursuit of optimum performance consistent with those risks. The College held three investment accounts.. two notice accounts and one deposit account which paid variable interest, for use when the College had generated surplus funds. These accounts were closed prior to merger and funds transferred to the main account and subsequently to Barnsley College. The College had opened an additional investment notice account in year which had a Purpose of Trust deed attached. This was specifically relating to capital funding provided by the DfE which restricted use solely for the purpose intended. As noted above this accoLJnt was closed prior to merger and all cash held relating to the unspent capital grant1£367kl was transferred to Barnsley College on the merger date, as agreed with the DfE. Borrowing would have required the authorisation of the Corporation and followin9 ONS reclassification, DfE consent. The College had no borrowing. Reservos policy The College historically had high level of reserves. These reserves reduced over recent years due to lower recruitment levels and changes to funding. Cash reserves at 28 February 2026 included £367k of capital grants received which had not yet been spent. This is the unspent balance of the DfE Transformation Grant12023-20261. Barnsley College have an agreement in place with the DfE to utilise the remainder of these funds post-merger. The College had no formal Reservès Policy but recognised the importance of reserves in the financial stability of any organi53tion and ensured that there were adequate reserves to support the College'5 core activitie5. Monthly financial reporting included the cash position including and excluding capital grantslclawback to ensure there was clear visibility of the underlying reserves position. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report Sources of Income The College had significant reliance on recurrent grant funding from the DfE, SYMCA and WCA for its principal funding source. In the 2025-26 period to 28th February 2026, the three funding bodies combined provided 84% of the College's total income. Quality Assurance The College carried out Performance Management Reviews to monitor and oversee performance against targets, both financial and quality, in each area of the College. Through this process actions promptly addressed quality and performance issues to ensure a continuous focus on student experience and success. It also carried out a self-assessment process across departments and curriculum areas resLJlting in a College self-assessment report ISARI and quality Improvement plan IQIPI. Progress reports, governor dashboard and annual reports were considered by the Curriculum, Quality 2nd Student Experience Committee and the Board of Governors. Student Achievements Overall achievements at the College are not possible to determine with any degree of accuracy as at 28 February12024-25.. 85%). Future Developments The Governors, Principal and Executive Leadership Team l ELT I recognised that the College continued to operate in a challenging fLJnding environment and that it would continually need to review the effectiveness of its provision against the funding received,. the need to be cost effective and take measures to reduce the cost of provision,. as well as to search for new areas of work which were consistent with the mission of the College. Following discussions and due diligence work by both parties and key stakeholders including the DfE, governors agreed to merge the College whereby the entire assets and undertakings of Northern College transferred to Barnsley College on 1 March 2026. Northern College's vision was to unite the strengths of both Colleges to deliver high-quality adult education and training across the region and to provide outstanding opportunities for learners. By combining the resources of Northern College with those tsf Barnsley College, the aim was to broaden the impact of the College's work and to transform lives. The proposal for merger was borne from the need to secure the long-term future for Northern College provision for learners at a time of current and experted future challenges around the continuation of devolved funding for adult residential provision and planned reduction in Adult Skills Funding. Benefits of the merger include.. Increased Resilience.. The merger strengthened Northern College's adult provision and sustainability by leveraging the economies of scale offered by Barnsley College. More courses.. adult students now have access to a wider range of courses and to qualifications that are better matched to local, regional, and national needs. Enhanced ability to meet the needs of adult learners in support of the local growth plans. Better facilities.. there is more scope to improve student experience through investments in buildings, technology and student support. Elevate the Profile.. promoting the benefits and value of residential education. Expand Networking Opportunities.. employers can access a wider pool of students to promote vacancies and placement opportunities. Links to employment.. employers can connect with more students lor jobs and work placements. Quality and Best Practice.. Sharing expertise and best practice is driving the high standards in teaching and learning for the stsff tearn. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 d2 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report Professional development.. the merged college aims to attract and keep skilled and motivated staff, who believe in its mission and staff will have increased opportunities to build skills and experience through trainin9 and professional qualifications. Student numbers Post pandemic student numbers increased year on year. In 2025-26 enrolment numbers to 28 February 2026 were 1,394 a decrease ol 12% compared to the same period in 2024-25. In 2025-26 the College delivered activity under its funding contracts of £1,641 k to 28 February 2026. Risk factors The College had considerable reliance Dn continued governmentfunding through the further education sector funding bodies, including MCA'S. In 2025-26 to 28, February 2026, 84% of the College's revenue was ultimately publicly funded. There wa5 no assurance that government policy or practice would remain the same or that public funding would continue at the same levels or on the same terms. This includes the residential funding. These risks were key fartors in the decision to merge with Barnsley College. The Governing body had overall responsibility for risk management. It's approach to managing risks and internal controls is explained in the Statement of Corporate Governance. A risk register was maintained at College level which was reviewed regularly by the Executive Leadership Team and at each meeting of the Board of Governors and its committees as appropriate. The risk register identified the key risks, the likelihood of those risks occurring, their potential Impact on the College and the actions taken to reduce and mitigate the risks. Risks were prioritised using a consistent scoring system. Some of the principal risks for the College prior to merger and their mitigating actions are listed below.. Funding A. The methodology for fund ing residential provision had been under review since 2019. A nightly rate methodology was agreed with DfE and WYCA. However, SYMCA which provided the largest proportion of the College's funding had only agreed to use this funding methodology until July 2027. If the College had not merged and the level of residential funding had reduced, this would have a significant impact on Northern College financial sustainability and financial health. B. Recruitment continued to be one of the biggest risks for the College. Numbers had improved significantly over the past three years but started to stagnate in the seven-month period to 28 FebrLiary 2026. The curricLilum offer had been developed and expanded to respond to local and regional priorities which has supported growth. WYCA reduced the proportion of tailored learning which could be delivèred in 2025-26 so additional growth in accredited provision was required in this region. C. Adult Skills funding IASFI nationally has reduced, with the DfE making a 6% cut. The devolved mayoral combined authorities absorbed cut5 for 2025-26, retaining the same allocations for providers. However, future reductions in ASF remained a significant risk for Northern College with no sign of funding increases for adult education from central government. D. The College aimed to increase its income diversitythrough the development of additional funding streams. As well as expanding commercial income through events and conferences, the College The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 d3 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report undertook a review of the estate. It aimed to consolidate educational activities into the main house and rent out some buildings on the estate. However, due to the merger, longer-term options to utilise other areas of the estate to generate additional sustainable income were considered not appropriate and were put on hold. E. Staff recruitment and retention continued to be a risk prior to merger. The College did not benefit from the last two DfE announcements aimed at supporting pay increases as this funding was used to support 16-18 funding rate increases. This resulted in the College's pay awards in recent years for the last fevv years being much lower than many other Colleges who benefited from the funding increase. Thè increase in national living wage also continued to impact. Financial risk The Colle9e used financial instruments, comprisin9 of cash and other liquid resources and various other items such as trade debtors and creditors that arose directly from its operations. The main purpose of these financial instruments was to raise finance for the College's operations. The main risk arising from the College's financial instruments was liquidity risk. The Executive Leadership Team reviewed and agreed policies for managing this risk and this policy remained unchanged prior to merger from previous periods. The College sought to manage financial risk by ensuring sufficient liquidity was available to meet foreseeable needs and to invest cash assets safely and profitably. Main sources of funding were achieved from the DfE, SYMCA and WCA by payments made through the funding agreements. Ener9y and Carbon Reporting The College was committed to sustainability and achieving net zero carbon emissions, with efforts led by the Executive Leadership Team and supported by the College Leadership and wider staff teams. The Environmental and Sustainability Committee overszw a detailed action plan, with clear targets and initiatives to ensure environmental goals were met and progress was regularly monitored. The College worked closely with local partners including the Posltive Climate Partnership IPCPI Barnsley to gather feedback and track progress on sustainability, including participating in a borough-wide survey to measure advances in decarbonisation. This data was used to inform ongoing improvements and helped the College prior to merger to contribute to the borough's goal of becomin9 net zero by 2045. Projects included enhancing energy efficiency in the new Digital Learning Hub by installing new windows and conducting a study on heat loss using thermal Imaging. These measures helped to identify areas for improvement and quanti cost savings, supporting both financial and environmental objectives. Upgrades to the building's glazing had significantly reduced heat loss. Following the merger, the main house transferred to Barnsley Metropolitsn Council who have leaged the building back to Barnsley College. Energy performance was a key focu5 in all capital projects. External experts helped the College as5es5 and improve heating systems, with recommendations such as optimising floor plans, zoning, and updating heating controls. The main challenges identified were limited control over heating and the building's thermal properties. To address this, heating processes were aligned with College opening hours to reduce unnecessary energy use. Sustzinability extended to catering, with the College's provider committed to reducing food waste, sourcing local ingredients, and minimising packaging. Initiatives such as discounts for using reusablé cups were well received by students. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 d4 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report Student input was valued, with feedback channels ensuring their voices helped to shape sustainability decisions. Recent improvements included replacing old lighting with energy-efficient LED fittings equipped with motion and daylight sensors and up9radin9 external lighting to reduce energy use and light pollution. An ecological assessment supported these changes, ensuring compliance with planning requirements. Staff and Student Involvement The College considered good communication with its staff to be very important and to this end, held regular Principal's Briefings at which key messages were shared and an opportunity was given to all staff to bring points for discussion. Northern College ensured that the student voice was heard by fostering an environment where students felt valued, heard and empowered to contribute meaningfully to their education and the wider College community. The College understood how this could significantly improve learning experiences, a culture ol community, shared vzlues and student wellbeing. The College created a variety of platforms and safe spaces for interaction and expression of views. These included student surveys, class reps, peer feedback, Student Council, Student Ambassadors, case studies, collaborative gtrategic committees ISafeguarding/EDIIH&SICateringlSustainèbilityl. Taxation The College was not liable lor any corporation tax arising out of its activities during the 2025-26 period to 28 February 2026. Equality and Diversity Equality in Employment As a Public Body, Northern College recognised the requirernent to give due regard to the need to.. Eliminate unlawful discrimination, harassment and victimisation and other conduct prohibited by the Act. Advance equality of opportunity between people who share a protected characteristic and those who do not. Foster good relations between people who share a proterted characteristic and those who do not. The College ensured this with respect to employment through adherence to a wide range of policies including.. Equality, Diversity and Inclusion, Recruitment and Selection, and Di9nity at Work. The Colle9e also published its, Equality Report annually on the website. Equality. Diversity and Inclusion Northern College's strong commitment to the advancement of equality, diversity and inclusion was embodied in its mission and values. The College actively sought to promote and advance equality of opportunity between people who shared protected characteristics under the law and those who did not. It set clear performance indicators in relation to the recruitment and achievement of disadvantaged and underrepresented groups. The College was committed to ensuring equality of opportunity for everyone who learned, worked and visited the College. It expected every member of the College community to promote equality of opportunity and achievement, to challenge conditions that placed anyone at a disadvantage and to help create an inclusive community in which diversity was celebrated and valued. The College was judged to The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 d5 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report be Good in all areas in its last OFSTED inspection (March 20231 and was commended for promoting a culture of care and empathy in an inclusive environment where students felt valued, supported and respected. The College had identified four overarching equality strands with related objectives as follows.. Northern College will strive to ènsure an inclusive and diverse student and staff community. All students and staff will have an enriching, inclusive experience and will be treated fairly and with respect. The College will foster positive partnerships and community relationships for the good of the College and its students. Northern College will promote a culture of excellence and quality in delivering Equality, Diversity and Inclusion. Disability Statement The College was aligned to Public Sector Equality Duty120111, Equality Att 2010, Ofsted requirements underpinned by effective equality objectives including Human Resource management. To achieve these objectives.. The College made a commitment of supportto adopt Association of Colleges equity, diversity and inclusion charter signed by the Principal and Governors. The Equality Diversity and Inclugion committee facilitated and monitored the Northern College Equality Objectives and Action Plan. This supported the Northern College to strive for an inclusive and diverse student and stzff community. The College provided a curriculum offer that enabled those with no or limited qualification5 to access education and progress in their learning and careers. The College ensured a diverse workforce that reflected the student population. The College had a Learning Support Lead, who provided information and advice and arranged support where necessary for students with additional learning needs. Specialist neurodiverse assessments took place to assist the team in creating the correct pathway of support. The College had a Learning Support Advisor who was a specialist in mental health and specific learning needs who provided 1..1 support and online packages to support independent learning. There was a wide range of assistive and adaptive technology, alongside physical resources lelectric scooters, chairs ètcl which were available to Students once they had received 2n Additional Learning Assessment. The College ènsured the catering team was aware of and could produce meals in line with individual dietary requirements. The College crezted an inclusive physical environment where students, staff and visitor's accessibility and safety were promoted. The admissions policy was accessible via the College website and could be viewed where required with support by assistive technology. Appeals against a decision not to offer a place were dealt with under the complaints policy. There was a team of Learning support Assistants who could provide a variety of support for learning. There was also a programme of staff development to ensure the provision ol a high level ol zppropriate support lor students with learning difficulties, neuro diversity needs and/or disabilitie5. Achievements and destination5 were recorded and published within report5 which wer reviewed by Executive leadership Team and the Governing body. Achievements and The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 d6 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report destinations were reviewed and monitored via the Colle9e's Equality, Diversity and Inclusion Committee. The College liaised with external mental health and wellbeing services to ensure all students received support where required. The College ensured its accommodation was fit for purpose and was monitored via Health and Safety and Equality Objectives. Safeguarding The College was fully aware of its duty and was pro-active with regard to the Safeguarding of Children and Vulnerable Adults and its Prevent duty in line with the Counter Terrorism and Security Act 2015. Going concern The College merged with Barnsley College on 1st March 2026 and The Northern College for Residential Adult Provigion was transferred to Barnsley College. For this reason, thè College Governors have eoncluded that it is no longer appropriate to prepare the financial gtatements on a going eoncern basis. With exception to the impairment and associated release of deferred capital grants attached to Wentworth Castle, no other adjustments arose as a result of ceasing to apply the going concern basis. Disclosures in the financial statements reflect this change. The College's financial performance had improved over the last 4 years, from a £1.1 m deficit EBITDA in 2021-22 to £103k surplus EBITDA in 2024-25. This moved the College from Requires Improvement to Good as calculated using the DfE Financial Health score. In the seven-month period to 28 February 2026, the College's financial health score dropped back to Requires Improvement due to the operating position. The College's cash reserves remained relatively strong. However, the College would not have benefited from recent DfE funding increases as these changes only increased 16-19 funding rates. This placed the College under increasing financial pressure despite the benefits of a reduction in LGPS employer contribution rates for the next 3 years. The future landscape ol adult education, which has seen a reduction in overall funding, remained challenging as well as the College's fixed cost base and increasing pay costs. Therefore, the College entered into discussions with Barnsley College regarding a voluntary merger, which took place on 1 March 2026. The merger is expert&d to support the future long-term stability of the provision of adult learning delivered by the merged college, combining the resources of Northern College with those of Barnsley College and providing greater opportunities for learners. The merger had the full support of the DfE, FEC and combined authorities. As at 28 February 2026, the College reported net assets, after the pension provisions, of £1,219k,. and net assets of £1,291 k prior to defined benefit pension provisions. The cash balance as at 28 February 2026 remained strong with £1,667k of cash reserves, with nil borrowings, IE1,300k excluding unspent capital grants). The College made a provision of £831 k for clawback of unspent funding relating to 2025- 26 at 28111 February 2026 and £159k of accrued income not yet received, which would have reduced cash reserves excluding Ljnspent capital grants to £628k. Disclosure of Information to Auditors Based on assurances from Northern Colle9e members who held office as at 28 February 2026 and subsequent information from 1 &t March 2026 the members who held office up to the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the College's auditors are unaware,. and each member has taken all the steps that he or she ought to have The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and linanclal statements for the period ended 28 February 2026 17 Report of the members of the Board of Governors incorporating the Operating and Financial Review and Strategic Report taken to be aware of any relevant audit information and to establish that the College's auditors are aware of that information. Approved by order of the members of the of Barnsley College corporation on 7th July 2026 and signed on its behalf and in respect of The Northern College for Residential Adult Education Limited by.. ML Marie Lang Chair, Barnsley College Isuccessor to The Northern College for Residential Adult Education Limited) The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 18 Corporate Governance Statement incorporating the Statement of Internal Control Governance Statement The following statement is provided to enable readers of the annual report and financial statements of the College to obtain a better understandin9 of its governance and legal structure. This statement covers the period from 1 August 2025 to 28 February 2026 and up to the date of approval of the annual report and financial statements. Governance Code The College endeavoured to conduct its business.. in accordanee with the sevèn principles identified by the Committee on Standards in Public Life1selfle55ness, integrity, objectivity, accountability, openness, honesty and leadership),. in full accordance with the guidance to Colleges from the Association of Colleges in The Code of Good Governance for English Colleges I'the code"). The College was committed to exhibiting best practice in all aspects of corporate governance and recognised that, as a body entrusted with both public and private funds, it had a particular duty to observe the highest standards of corporate governance at all times. In carrying Out its responsibilities, it took full account of the Code of Good Governance for English Colleges issued by the Association of Colleges in March 2015, land updated in 20211 which it formally adopted on 17 December 2015. In the opinion of the Governors, the College complied with all the provisions of the Code of Good Governance for English Colleges, and it complied throughout the period ended 28 February 2026. This opinion was based on an internal review of compliance with the Code/Governance evaluation which was reported to the board in October 2025 and the external review which was carried out and presented to the former Northern College Board in April 2024. The Corporation Members of the Board of Governors Members of the Board of Governors are listed in the table below. These roles were in place throughout the period unless otherwise stated. However, the Board of Governors and the respective roles ceased when the College transferred its activities to Barnsley College on 1 March 2026. Attendance {Boardl 2025-26 100% Date of ointment Term of office Ex-officio Date of resi nation Ststus of ointment Principal/Chief Executive Committees served Member- Curriculum Quality & Student Mrs E Beal 01.03.2023 17.12.2025 erience Member- Audit MrG Burke 02.10.2024 4 years 28.02.2026 Interest or expertise relevant to the College Intèregt or expertise relevant to the College 83% Dr C Forrest First Appointed 01.08.2018 Reappointed 01.08.2022 4yeèrs 28.02.2026 Chair- Curriculum Quality & Student Experience,. Lead Governor Safeguarding Remuneration 83% The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 19 Corporate Governance Statement incorporating the Statement of Internal Control Attendance % {Boardl 2025.26 83% Date of ointment Term of office 4years Date of resi nation Status of ointrnent Interest or expertise relevant to the College Committees served Chair- Remuneration Member- Curriculum Quality & Student Experience Audit Dr S Horner 01.09.2021 Reappointed 26 03.2025 28.02.2026 Mr N James 13.07.2017 Reappointed 10.03.2022 4years 28.02.2026 Staff - Business Support Member- Finance & Resources 100% Ms A Lienard First Appointed 01.08.2018 Reappointed 01.08.2022 29.11.2023 4years 28.02.2026 Interest or expertise relevant to the College Chair-Audit Member- Remuneration 83% MrRLow 4years 28.02.2026 Interest or expertise relevant to the Colle Interest or expertise relevant to the College Member- Audit 67% Mrm Sanders 11.04.2022 4years 28.02.2026 Chair- Board of Governors, Company", Member- Remuneration, Finance & Resource5 100% Mss Saunders 01.12.2025 Ex-officio 28.02.2026 Intèrim Principallchief Executive Member- Curriculum Quality & Student Experience, Finance & Resources, 100% Mrs Schmoller 01.04.2021 4years 28.02.2026 Interest and expertise relevant to the College Vice -chair- Board., Member- Remuneration Finance & Resources 100% Reappointed 26.03.2025 MsAMSpry 02.10 2024 4years 28 02.2026 Interest and expertise relevant to the College Member- Curriculum Quality & Student Experience 83% The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 20 Corporate Governance Statement incorporating the Statement of Internal Control Date of appointment Term ot office Date of resignation Status of appointrnent Committees served Attendance % {Boardl 2025.26 100% Mrm Stephens 29.11.2023 4years 28.02.2026 Interest and expertise relevant to the College Member- Finance & Resources Prof T Thornton First Appointed 16.07.2009 Reappointed 01.08.2024 1 year 28 02.2026 Interest and expertise relevant to the College Member- Remuneration,. Curriculum Quality & Student Experience Finance & Resources 83% The Governanee Framework It is a Department for Education requirementthat all Further Education Colleges commission an external review of governance at least every three years. Northern College commissioned the consultancy Action Plannin9 to undertake such a review which was carried out by David Saint during the period December 2023 to March 2024. The full review report was presented to the Board on 24 April 2024 and the reviewer approved the following summary.. The review recognised that governance at Northern College was in extremely good health, that Board members were highly engaged, and were doing an excellentjob of meeting their responsibilities. There was clear separation between governance and management. The Board had an impressive and well- balanced range of knowledge and skills, professional expertise and life experiences. The Board was well SLJPPOrted by high quality papers and advice from the clerk. Governors clearly wanted the best for the students and the College and there was a good balance between student engagement and focus on strategic objectives. The Board was mindful of equality, diversity and inclusion and its members brought 8 diverse range of views and provided a rznge of perspectives. The relationship between governors and Managemènt was èxcellent and the Board had provided strong leaderghip and effective oversight to ensure fin8ncial stability during a period of financial challenge and intervention. The overall conclusion was that governance at the College wa5 in robust health. The Board welcomed the areas to consider for further development relating to refining meeting arrangements to optimise use of governors, time, standardisin9 governor indurtion and appraisal, and reviewing approaches to student engagement. The recommendations of the external review were incorporated into the Governance Action Plan, progress against which was monitored by the Remuneration and Governance Committee and shared with the Corporation. The composition of the Board of Governors is set out below. It was the Board of Governors. responsibility to bring independent judgement to bear on issues of strategy, performance, resources and standards of conduct. The Board of Governors was provided with regular and timely information on the overall financial performance of the College together with other information such as performance against funding targets, proposed capital expenditure, quality matters and personnel-related matters such as health and safety and environmental issues. The Board of Governors usually met four times per year. There were six Board meetings in the 2025-26 period to 28.2.26. The Board also played an active part in the Transition The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 21 Corporate Governance Statement incorporating the Statement of Internal Control Board meetings attended by Northern College, Barnsley College, the DfE and the merger project management team in the pre-merger period. The Board of Governors conducted its business through a number of committees. Each committee had terms of reference, which had been approved by the Board of Governors. These committees in 2025- 26 were." Finance and Resources, CLJrriculuni Quality & Student Experience ICQ5EI, Audit and Remuneration and Governance. Full minutes of all meetings, except those deemed to be confidential by the Board of Governors, are available from the clerk to the corporation at Barnsley College's registered address. The Clerk to the Board maintained a register of financial and personal interests of the governors. The register is available for inspection at Barnsley College's registered address. All governors were able to take independent professional advice in furtherance of their duties at the College's expense and had access to the Clerk to the Governors, who was responsible to the Board for ensuring compliance with all applicable procedures and regulations. The appointment, evaluation and removal of the Clerk were matters for the Board of Governors as a whole. Formal agendas, papers and reports were supplied to governors in a timely manner, prior to meetings. Briefings were also provided on an ad hoc basis. The Board of Governors had a strong and independent non-executive element and no individual or group dominated its decision-making process. The Board of Governors considered that each of its non- executive members was independent of management, and free from any business or other relationship which could have materially interfered with the exercise of their independent judgement. There was a clear division of responsibility in that the roles of the Chair of the Board of Governors and Principal/Accounting Officer of the College were separate. Appointments to the Board of Governors Any new appointments to the Board of Governors were a matter for consideration of the Board of Governors as a whole. The Board of Governors was responsible for ensuring that appropriate training was provided as required. Members ol thè Board of Governors were appointed for a term of officè not exceeding four years. The total period of membership as a governor was normally limited to eight years i.e. two four year terms of office. However, the Board sought to manage a careful mix of new members bringing fresh per5P&Ctives, serving alongside experienced members. Therefore, in exceptional circumstances, and in the interests of continuity, members could be re-appointed for a further period of office. Corporation Performance In view of the external governance review which resulted in the production of a detailed action plan in 2025, a governance self-assessment was not completed. However, governance was considered as part of the due diligence process prior to merger with no significant issues to note. Governor and Clerk Development Artivities The Corporation was committed to training and development and governors participated in the following development activities during 2025-26 period.. Of5ted Inspection Framework Safeguarding and Prevent Mandatory Training Curriculum and Quality Audit Masterclass New Governor Induction The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 22 Corporate Governance Statement incorporating the Statement of Internal Control Insolvency Curriculum Walks The Clerk to the Governors participated in the following training and development activities duri ng the 2025-26 period.. Governance Professional Network Remuneration Committee Throughout the period ended 28 February 2026, the College's Remuneration and Governance Committee comprised six members. The committee's responsibilities were to make recommendations to the Board on the remuneration and benefits of the Principal and other senior post holders and the pay awards of all staff. The Committee met on the 17 September 2025 and 17 December 2025. Details of remuneration for the period ended 28 February 2026 are set out in note 8 to the financial statements. Throughout the period the College complied with the Aoc's Senior Staff Remuneration Code. Audlt Commlttee The purpose of the Audit Committee was to advise the Board of Governors on the adequacy and effectiveness of the College's systems ol internal control and its arrangements for risk management, control and governance processes. The Audit Committee met on a termly basis and provided a forum for reporting by the College's financial statement auditors, who have access to the committee for independent discussion, withoutthe presence of College management. The committee also received and considered reports from the main FE funding bodies as they affect the College's business. As a result of the merger preparation, the College's internal auditors undertook a limited review of the systems of internal control, risk management controls and governance processes in accordance with an agreed plan of input and reported their findin95 to management and the Audit Committee. In the period to 28 February the Audit Committee sought alternative sources of assurance and considered them in their report to the Board in February 2026. During 2025-26, one internal audit was completed.. Estates Management.. Health and Safety which received 'Substantial' Assurance. With the exception of the above internal audit, there had been limited internal audit work for the period due to the merger. Therefore, the internal auditors could not provide the assurance in respect of systems, controls, governance and risk management that might be expected at year end. After discussion at the December 2025 Audit Committee meeting and following discussion with RSM, it was agreed that College management would complete an assurance mapping exercise to provide an overvièw of the key sources of assurance for the Board. The Audit Committee which met on 5 February 2026 received details of a range of internal and external assurance measures which had taken place during the period from I st August 2025 to 5 February 2026. This detailed the main sources of internal controls, risk management, governance oversight and external assurance. The Committee agreed that the Board of Governors could be satisfied with the adequacy and eff&rtiveness of the College Corporation's assurance arrangements, framework of governance, risk management and control processes for the effective and efficient use of resources, solvency of the institution and the safeguarding of its assets. Management was responsible for the implementation of agreed aLJdit recommendations and that internal audit undertook follow-up reviews to ensure such recommendations had been implemented as appropriate in the seven-month period to 28 February 2026. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 23 Corporate Governance Statement incorporating the Statement of Internal Control The ALJdit Committee also advised the Board in terms of assurance requirements in relation to internal audit and financial statements auditors and their remuneration for both audit and non-audit work as well as reporting annually to the Board of Governors. On 26 March 2025, the Post-16 Code of Practice was replaced by the Framework for auditors and reporting accountants of colleges. This document set out the audit and regularity assurance requirements for further education colleges, sixth form colleges and designated institutions. The work of the internal audit service is informed by an analysis of the risks to which the College is exposed, and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit plan was endorsed by the Corporation on the recommendation of the audit committee. Following the decision to merge and the completion of one health and safety internal audit, the internal audit plan was paused. Consequently, the Audit Committee provided alternative sources of assurance to satisfy the Board's opinion on the adequacy and effectiveness ofthe College's system of risk management, controls and governance processes. During the period the Audit Committee comprised four members of the Board of Governors and a co- opted member. Membership excluded the Principal, staff governors and Chair of the Board of Governors. The Committee operated in accordance with written terms of reference approved by the Board of Governors. The audit committee met on two occasions in the period to 28 February 2026. The members of the committee and their attendance records are shown below.. Member Attendance Imeetin s attended) A Lienard Ichairl G Burke RLOW S Horner A Shillito (co-opted member from December 20251 100%121 50%111 I OOY.121 100%121 100%121 Internal Control Scope of Responsibility The Northern College Corporation w35 ultimately responsible for the College's system of internal control and for reviewing its effectiveness. However, such a system is designed to manage, rather than eliminate, the risk of failure to achieve business objectives and can provide only reasonable and not ab501ute assurance against material misstatement or105S. The Board of Governors delegated the day-to-day responsibility to the Principal, as Accounting Officer, for maintaining a sound system of internal control that supports the achievement of the College's policies, aims and objectives, whilst safeguarding the public funds and assets for which she was personally responsible, in accordance with the responsibilities assigned to her in the Funding Agreement between Northern College and the funding bodies. She was also responsible for reporting to the Board of Governors any material weaknesses or breakdowns in internal control. The purpose of the system of internal control The system of internal control was designed to manage risk to a reasonable level ratherthan to eliminat all risk of failure to achieve policies, aims and objectives,. it could therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control was based on processes designed to identify and prioritise the risks to the achievement of College policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Corporate Governance Statement incorporating the Statement of Internal Control and to manage them efficiently, effectively and economically. Based on assurances received by the Board of Northern College, it is reasonable to conclude that systems of internal control were in place in Northern College for the period ended 28 February 2026. Risks faced by the Corporation and capacity to handle risk The Northern College Corporation reviewed the key risks to which the College was exposed, together with the operating, financial and compliance controls that had been implemented to mitigate those risks. The Corporation was of the view that there was a formal ongoing process for identifying, evaluatin9 and managing the College's significant risks that were in place forthe period ended 28, February 2026. This process was regularly reviewed by the Board of Governors. The risk and control framework The system of internal control Is based on a framework of regular management information, administrative procedLJres including the segregation of dLJties, ènd a system of delegation and accountability. In particular, it includes.. comprehensive bLidgeting systems with an annual budget, which was reviewed and agreed by the governing body regular reviews by the governing body of periodic and financial reports which indicated financial performance against forecasts set targets to measure financial and other performance clearly defined capital investment control 9uidelines the adoption of formal project management disciplines, where appropriate. In the seven-month period to February 2026, the College commissioned one internal audit assignment. A detailed assurance map was considered by the Northern College Audit Committee at their meeting on 5111 February 2026. This work was Informed by an analysis of the risks to which the College was exposed. The analysis of risks and the internal audit plan was endorsed by the Corporation on the recommendation of the Audit Committee. An assurance rèview of all assurance mapping activity for the period ènd up to the point of signing the accounts was considered by the Audit Committee on 5 February 2026 to ensure adequacy and effectivenes5 controls and assurance. This included.. Overall effectiveness Internal control was highlighted as being supported by regular KPI monitoring, structured performance management, and monthly oversight of the Single Improvement Plan agreed with the FE Commissioner. Comprehensive financial and legal due dili9ence, alongside established risk registers, underpin effective management of merger risks. Governance Oversight includes but is not limited to regular Board scrutiny of performance and improvement, alignment to strategic plans, and a Transition Board providing focused oversight of the merger. External assurance is provided through DfE oversight due to supervised status, regular SYMCA, WYCA and FEC case conference meetings, Ofsted and Combined Authority scrutiny. This is strengthened by external project management and monitoring of merger risks (Rockbornl. Teaching, Learning and Assessment Internal Controls noted as including comprehensive quality framework (including OTLA and quality review activity) and strong student voice through the Student Council and committees. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 25 Corporate Governance Statement incorporating the Statement of Internal Control Governance oversight Includes but is not limited to Annual Self-Assessment Report, monitoring of Quality Improvement Plan actions, and regular quality reporting to CQSE, ensuring ongoing scrutiny of performance and improvement. External assurance is received through Awarding Body assessments and external verification, the Ofsted 2023 report, and regular performance reviews with the DfE and FE Commissioner, including focused oversight of teaching, learning and assessment. Financial Reporting and Controls Internal control provided by Financial Regulations, monthly ELT review of management accounts and cashflow, and ongoing internal and external scrutiny of financial performance and forecasts. This Is complemented by merger due diligence and strong cash balances lactual and forecastl, providing assurance over financial stability and effective financial management. Governance oversight is provided by Board approval of the budget, key linancial policies, and financial statements, alongside regular scrutiny of management accounts and cashflow, including sensitivity analysis. External Assurance is provided through independent financial review and audit IBDO and RSMI, DfE financial overs19ht and regular case conference scrutiny, and financial due diligence undertaken as part of the merger. Funding dat2 I claimg Internal controlg are provided through monthly PDSAT reviews, ILR compliance checks, and FIS validation processes, alongside sample testing and oversight of data reports, ensuring accuracy and reliability of funding data. Governance oversight is supported by the Regularity Self-Assessment, risk review against ESFA common issues, and ongoing monitoring of audit recommendations. External assurance is provided by independent audil and income testing IRSMI, DfE oversight and data validation reporting, and external funding assurance reviews ISYMCA and WYCAI. Health, Safety and Welfare Internal control mechanisms include established policies and procedures, regular risk assessments, active student voice, and oversight through the Health, Safety and Welfare Committee. Governance oversight is provided through a Health and Safety Annual Report and internal audit activity (Wylie Bissettl, with good progress management of actions and 38144 actions being completed at the time of the assurance report. External assurance is provided through independent external audit (Hill Consulting) and internal audit Iwylie Bissettl Estates Internal controls include stablished policies, compliance monitoring and risk assessments, alongside statutory inspections le.g. fire, asbestos, legionellal. Governance oversight is provided through the Environmental and Estates Strategies, capital planning, and ongoing scrutiny of capital expenditure and delivery through the Finance and ResoLJrces Committee. External assurance is provided through independent inspections (Alliance Insurance Engineering, LA Environmental Health, SYFRSI, audits, and surveys IRACCI, alongside specialist maintenance and compliance contracts. Governance Internal controls are provided by the Memorandum and Articles, policies and procedure, regLJlar leadership engagement, and an independent, qualified Clerk. Governance oversight is provided through the Governance Annual Report, Governor self-assessment and Code compliance checks, and approval of policies, alongside ongoing monitoring and implementation of actions from the 2024 external governance review. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 26 Corporate Governance Statement incorporating the Statement of Internal Control External assurance is provided through FEC monitoring and Ofsted inspection, an independent external governance review, and direct DfE oversight, alongside sector- informed leadership through the NLG programme. Safeguarding and Prevent Internal controls provide assurance through safe recruitment and DBS processes, comprehensive policies and mandatory training, and clear governance structures through safeguarding committees and operational meetings. This is strengthened by risk assessments and action plans, alongside active student voice. Governance oversight is provided through a Lead Governor for Safeguarding, the Safeguarding and Prevent AnnLial Report and regLilar updates and briefings. External assurènce Is provided through Ofsted inspection, DfE and BSAB due diligence, external audits IBMBC Business Intelligence Team) and alignment to sector good practice through CPD and Prevent action planning, Risk Management Internal control is achieved though monthly review of the strategic risk register. Governance oversight is achieved through Board approval of the risk management and business continuity frameworks, regular review of the strategic risk register, and clear allocation of risks to committees for scrutiny. This is strengthened through audit committee review, the regularity self-assessment, and contingency planning arrangements. External assurance is provided by the independentfinancial review IBDOI, DfE oversight and financial health assessment, and regular FEC monitoring through case conferences and Board engagement. Human Resources Internal controls include comprehensive policie5 and procedure5, recruitment and onboarding controls, performance and appraisal frèmeworks, and structured training and CPD programmes. These are complemented by effective Staff engagement and representative forums. Governance oversight is achieved through performance dashboard monitoring, the Regularity Self-Assessment, and Remuneration Committee reporting, alongside approval of pay and terms, oversight of senior post holders, and consideration of staff voice. External assurance is provided by audits IRSMI, external NLG support for the principal and sector engagement throLJgh Aoc networks. IT, Cyber Security and Data Protection Internal controls include robust policies and procedures, a qualified DPO and firewall software. Governance oversight is achieved through the digital strategy, risk management and the regularity self assessment. External assLJrance is provided through cyber essentials accreditation, cyber insurance and support and JISC support. Responsibilities under accountability agreements The Department for Education and Education and Skills Funding A9ency introduced new controls for the College on 29 November 2022 on the day that the Office for National Statistics reclassified colleges as public sector organisations in the national accounts. The DfE chief executive communicated these changes to all college accounting officers and explained plans to introduce a college financial handbook in 2024. The College had reviewed its policies, procedures and approval processes in line with these new requirements to ensure there were systems in place to identify and handle any transactions for which DfE approval was required. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 27 Corporate Governance Statement incorporating the Statement of Internal Control Statement From the Audit Committee The Audit Committee has advised the Board of Governors that the Corporation had an effective framework for governance and risk rnanagement in place. The Audit Committee believes the Corporation had eff&rtive internal controls in place up to the date of the merger. Review of effertiveness As Accounting Officer, the Principal ha5 responsibility for reviewing the effectiveness of the 5y5tern of internal control. The Principal's review of the effectiveness of the system of internal control is informed by.. Northern College's Audit Committee Report to the Board of Governors in February 2026 including the assurance map Northern College's Accounting Officer Statement of Regularity, Propriety and Compliance as at 28th February 2026 internal audit as5ignrnent5 the work of the Executive Leadership Team within the College who had responsibility for the development and maintenance of the internal control framework comments made by the College's financial statements auditors, funding auditors and the reporting accountant for regularity assurance in their management letters and other reports. The regularity self-assessment questionnaire approved by Northern College's Board on 5th February 2026 and updated to the date of signing of the financial statements The Principal/Accounting Officer has been advised on the implications of the result of his review of the effectiveness of the system of internal control by the work of Northern College's Audit Committee and corporation which oversaw the internal audit arrangements and other sources of assurance. A risk based internal audit plan to address weaknesses and ensure continuous improvement of the system was in place. The Executive Leadership Team received reports setting out key performance and risk indicators and considered possible control isgues brought to their attention by early warning mechanigms, which were embedded within the dep2rtments and reinforced by risk awareness training. The Executive Leadership Team and the Audit Committee 3150 received reports from various external bodies, which include recommendations for improvement. The Audit Committee's role in this area wa5 confined to a high-level review of th& arrangements for internal control. The Board of Governor's agenda included a regular item for consideration of risk and control and received reports thereon from the Executive Leadership Team and the Audit Committee. Barnsley College Board of Governors and Audit Committee assumed responsibility for internal controls with effett from 1, March 2026. The emphasis pre and post-merger is on obtaining the relevant degree of assurance and not merely reporting by exception. At its meetin9 on 5, February 2026 the Audit Committee carried out an assessment for the period ended 28 February 2026 by considering documentation from Northern College's Corporation and an internal audit assurance review and taking account of events since 28th February 2026. Based on the assurances of the former College's Audit Committee, Corporation and Accounting Officer and on the advice of the Audit Committee and the Accounting Officer, the corporation is of the opinion that the College had an adequate and effective framework for governance, risk management and control, and had fulfilled Its statutory responsibility for "the effective and efficient use of reSOLJrces, the solvency of the Institution and the body and the safeguarding of their assets" The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and Ilnanclal statements for the perlod ended 28 February 2026 28 Corporate Governance Statement incorporating the Statement of Internal Control Approved by order of the members of Barnsley College on 7, July 2026 and signed on it5 behalf in rèspect of The Northern College for Residentièl Adult Education Limited.. ML Marie Lang Chair, Board of Governors, Barnsley College (successor to The Northern College for Residential Adult Education Limited) David Akeroyd Principal and Chief Executive/Accounting Officer, Barnsley College (successor to The Northern College for Residential Adult Education Limited) The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 29 Statement on the College's Regularity, Propriety and Compliance As successor to The Northern College for Residential Adult Education Limited, I confirm that I have had due regard to the framework of authorities governing regularity, propriety and compliance, Including the college's accountability agreement with DfE, and the requirements of the College Financial Handbook. I have also Considered my responsibility to notify the corporation's board of governors and DfE of material irregularity, inipropriety and non-eompliance with terms and conditions of all funding. I confirm that I, and the board of governors, were able to identify any material irregular or improper use of all funds by the corporation, or material non-compliance with the framework of authorities. I confirm that no instances of material irregularity, impropriety or non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of governors and DfE. David Akeroyd Accounting officer, Barnsley College (successor to The Northern College for Residential Adult Education Limited) 7 July2026 The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Statement of governing body's responsibilities Members, responsibilities for the financial statements The members of the corpor3tion are required to present audited financial statements for each financial year. Within the terms and conditions of the college's accountability agreement, funding agreements and contracts with the DfE and any other relevant funding bodies, the corporation is required to prepare financial statements which give a true and fair view of the financial performance and position of the Northern College corporation for the relevant period. Corporations must also prepare a strategic report which includes an operating and financial review for the year. The bases for the preparation of the financial statements and strategic report are the Statement of Recommended Practice - Accounting for FLJrther and Higher EdLJcation, DfE's College Accounts Direction and the UK'S Generally Accepted Accounting Practice. I n preparing the financial gtatements, the corporation was required to.. select suitable accounting policies and apply them consistently 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 assess whether the corporation is a going concern, noting the key supporting assumptions, qualifications or mitigating actions, as appropriate (which must be consistent with other disclosures in the accounts and auditor's report), and prepare financial statements on the going concern basis unless it is inappropriate to assume that the corporation will continue in operation. The corporation was also required to prepare a strategic report, in accordance with paragraphs 3.23 to 3.27 of the FE and HE SORP, that describe what It was trying to do and how it was going about it, including information about the legal and administrative status of the corporation. The corporation wa5 responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the corporation and which enabled it to ensure that the financial statements are prepared in accordance with relevant legislation including the Further and Higher Education Art 1992 and Charities Art 2011 las amended), and relevant accounting standards. It was responsible for taking steps that were reasonably open to it to safeguard its assets and to prevent and detect fraud and other irregularities. The corporation was responsible for the maintenance and integrity of its websitelsl., the work carried out by èuditors does not involve consideration of thege matters and, accordingly, auditors actept no responsibility for any changes that may have occurred to these financial statements gince they were initially presented on any website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Members of the Corporation were responsible for ensuring that expenditure and income were applied for the purposes intended and that the financial transactions conformed to the authorities that governed them. In addition, they are responsible for ensuring that funds from DfE and any other public funds, were used only in accordance with the accountability agreement, funding agreements and contracts and any other conditions, that may have been prescribed from time to time by the DfE, or any other public funder, including that any transactions entered into by the Corporation were within the delegated authorities set out in the College Financial Handbook. On behalf of the Corporation, the chair of the board of governors is responsible for discussing the accounting officer's statement of regularity, propriety and cornpliance with the accountin9 officer. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and Ilnancial statements for the period ended 28 February 2026 31 Statement of governing body's responsibilities Members. responsibilities for the financial statements (continued) Members of the Corporation also ensured that there were appropriate financial and management controls in place to safeguard public and other funds and ensure they were used properly. In addition, members of the corporation were responsible for securing economic, efficient and effective management of the corporation's resources and expenditure so that the benefits that should be derived from the application of public funds from DfE and other public bodies were not put at risk. Approved by order of the memb&r5 of Barn51ey College on 7 July 2026 and signed on it5 behalf in respect of The Northern College for Residential Adult Education Limited by.. ML Marie Lang Chair of governors, Barnsley College (successor to The Northern College for Residential Adult Education Limited) 32 I ndependent auditors report to the Corporation of Barnsley College in respect of The Northern College for Residential Adult Education Limited Opinion We have audited the financial statements of The Northern College For Residential Adult Education Limited (the "college") for the period ended 28 February 2026 which comprise the statement of comprehensive income, balance sheet, statement of changes in reserves, statement of cash flows and notes to the financial statements, including 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 Reporti ng Standard applicable in the UK and Republic of Irelznd" (United Kingdom Generally Accepted Accounting Practice) and the Accounts Direction issued by the Department for Education. In our opinion th& financial statements.. give a true and fair view of the state of the College's affairs as at 28 February 2026 and of thè College's deficit of income over expenditure for the year then ended., and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. have been prepared in accordance with the requirements of the Companies Act 2006., and have been prepared in accordance with the Accounts Direction issued by the Department for Education. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the College and Barnsley College in accordance with the ethical requirenients that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard and we have fulfilled OLJr other ethical responsibilities in accordance with these requirements. We believe that the aLidit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter non.going concern basis of a¢¢ounting We draw attention to note 1 of the financial statements which describes the preparation of the financial ststements on a non-going concern basis. As described in note 1, the College Governors pursued a merger which resulted in the transfer of The Northern College For Residential Adult Education Limited's trade, assets and liabilities to Barnsley College on 1 March 2026.The rnain house was excluded from the transfer and instead transferred to Barnsley Metropolitan Borough Council. As a result, the College Governors have concluded that it is no longer appropriate to prepare the financial statements on a going concern basis. With exception to the impairment loss and associated release of deferred capital grants attached to Wentworth Castle, no other adjustments have been made to the financial statements as a result of the application of the non-going concern basis of accounting. Our opinion is not modified in respect of this matter. Other information The other information comprises the information included in the Report 2nd Financial Statements other than the financial statements and our auditorfs report thereon. The governors are responsible for the other information contained within the Report and Financial Statements. Our opinion on the financial statements doeg 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. 33 Independent auditors report to the Corporation of Barnsley College in respect of The Northern College for Residential Adult Education Limited (Continued) Other information Icontinuedl Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statement5 or our knowledge obtained in the course of the audit or otherwige appears to be materially misstated. If we identify such material inconsistencies or apparent material rnisstatements, we are required to determine whether this gives rise to a material misstatement in the financial Statements themselve5. 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. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit-. the information given in the Report of the Corporation which includes the Directors, Report and the Strategic Report prepared for the purposes of company law for the financial year for which the linancial statements are prepared is consistent with the financial statements,. and the Directors, Report and the Strategic Report included within the Report of the Corporation have been pr&pared in accordanc& with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the College and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors, Report or the Strategic Report included within the Report of the Corporation. We have nothing to report in respert of the lollowing matters where the Companies Act 2006 or the Framework and Guide for External Auditors and Reporting Accounts of Colleges issued by the Depzrtment for Education require us to report to you il, in our opinion.. adequate accounting records have not been kept by the College, or returns adequate for our audit have not been received from branches not visited by us., or the College financial statements are not in agreement with the accounting records and returns,. or certain disclosures of the governors rèmuneration specilied by law are not mzde., or we have not received all the information and explanation5 required for our audit. Responsibilities of the Corporation of Barnsley College in respect of The Northern College for Residential Adult Education Limited As explained mor& fully in the Statem&nt of the Member's Responsibilities set out on pages 28 and 29, the Trustees (who are also th& dirertors and members of the college for the purposes of company lawl are responsible for the preparation of 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 College's ability to continue as a going concern, disclosing. as applicable, matters related to goin9 concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so. Independent auditors report to the Corporation of Barnsley College in respect of The Northern College for Residential Adult Education Limited (Continued) Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the linancial statements as a whole 2re free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Rea50nable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 these financial statements. The extent to which the audit was consldered capable of detertlng Irregularitles. Includin9 fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified durin9 the audit. In relation to fraud, the objectives of our audit are to idèntify and assess the risk of mzterial misstatèment ol the financial statèments due to fraud, to obtain gufficient appropriate audit evidence regarding the assessed risks of material mi55tatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respert of irregularities, including fraud, the audit engagement team.. obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the College operates in and how the College Is complying with the legal and regulatory frameworks,. inquired of management, and those charged with governance. about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud,. discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are Companies Act 2006, FRS 102, Further and Higher Education SORP, Charities Act, and the College Accounts Direction published by the Department for Education. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures. The most significant laws and regulations that have an indirect impact on the financial statemènts are those which are in relation to the Education Inspection Framework under the Education and Inspections Act 2006, Keeping Children Safe in Education under the Education Act 2002 and data protection legislation. We performed audit procedures to inquire of management and those charged with governance whether the college is in compliance with these law and regulations and inspected correspondence and inspected correspondence with licensing or regulatory authorities in order to draw a conclusion. 35 Independent auditors report to the Corporation of Barnsley College in respect of The Northern College for Residential Adult Education Limited (Continued) The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual jOLJrnal entries and other adjustments and evaluating the business rationale in relation to significant, Linusual transactions and transactions entered Into outside the normal course of business and challenging judgments and estimates and performing tests of detail on a sample of revenue transactions together with performing a review of the appropriate application of the College's revenue recognition policy. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at http'.//www.frc.org.uk/auditorsresponsibilities. This description lorms part of our auditor's report. Use of our report This report is made solely to the company's members, as a body the Governing 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 Governing Body, as a body, those matters we are required to state to them in an auditor's report and for no Other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the Governing Body, as a body, for our audit work, for this report, or for the opinions we have formed. RSM A6a6fr LLP Richard Lewis Isenior Statutory Auditorl For and on behalf of RSM UK Audit LLP, Statutory Auditor Chartered Accountantg Two Humber Quays Wellington Street West Hull HU12BN 1010712026 The Northern College for Resldentoal Adult Educatoon Llmlted Annual report and financial statements for the period ended 28 Febrnary 2026 36 Statement of Comprehensive Income Period to 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Note Income Funding body grants Exceptional release ol deferred capital grants Tuition fees and education contracLs Research grants and contracts Other income Investment income Donations 1,772 2,369 20 58 256 58 4,026 12113 81 453 141 Total income 4,533 4,713 Expenditure Staff c05t5 linc restructuring) Other operating expenses Depreciation Impairment Interest and other finance costs 1,940 1,064 234 3,610 2,551 1,635 339 12113 12113 10 Total expenditure 6,848 4,525 {Deflclii/surplus for the perlod 12,3151 188 Re-measurement of net defined benefit pension scheme 11291 Other comprehensive income for the period 11291 Total comprehensive income for thè year attributable to the Corporation of the College 12,4301 59 The statement of comprehensive income is in respect of continuing activities. The accompanying accounting policies and notes form an integral part of these financial statements. The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 37 Balance Sheet Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Note Fixed assets Tangible fixed assets Intangible fixed assets 12 1,725 4,214 32 4,246 1,725 Current assets Debtors Investments Cash atbank and in h8nd 14 20 20 363 374 3,231 51 3,656 1,667 2,030 Less: Creditors: amounts falling due within one year 12,4641 19841 Net current Iliabilitiesvassets 14341 2,672 Total assets less current liabilities 1,291 6,918 Creditors: amounts falling due after morethan one yèar 13,1941 Provisions Defined benefit pension scheme Iliabilityl Other provisions 17119 17119 1371 1351 1371 1381 Total net assets 1,219 3,649 Unrestricted reserves Income and expenditure reserve Total funds 1,219 1,219 3,649 3,649 The financial statements on pages 36 to 59 were approved and authorised for issue by Barnsley College Corporation on 7t1 July 2026 and were signed on its behalf and in respect of The Northern College for Residential Adult Education Limited by.. IVL Lais Marie Lang Chair, Board of Governors, Barnsley College (successor to The Northern College for Residential Adult Education Limited) David Akeroyd Principal and Chief Executive/Accounting Officer, Barnsley College (successor to The Northern College for Residential Adult Education Limited) The Northern Colle9e for Resldentoal Adult Educatoon Llmlted Annual report and financial statements for the period ended 28 February 2026 38 Statement of Changes in Reserves Income and expenditure reserve £'ooo Balance at 1 August 2024 3.590 Surplus from the Income and expenditure account Other comprehensive income Total comprehensive income for the year 188 11291 59 Balance at 31 July 2025 3.649 Deficit from the income and expenditure account Other comprehensive income Total comprehensive income for the year 12,3151 12,4301 Balance at 28 February 2026 1.219 The accompanying accounting policies and notes form an integral part of these financial statements. The Northern College for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 39 Statement of Cash Flows Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Note Cash from operating activities IDeficitl/Surplus for the yezr 12,3151 188 Adjustment for non.cash items Depreciation Amortisation Exceptional release of deferred capital grants Impairment losses Decrease/lincreasel in debtors Increaselldecreasel in creditors due within one year IDecreasel/increase in creditors due after one year (Decrease) in provisions Pension cost Pension contributions paid 230 332 2,369 1,252 11571 12301 573 1,479 13,1941 121 91 12061 197 13261 Adjustments for investing artivities Investment income Interest payable Net cash from operating activities 1581 11411 13381 438 Cash flows from investing activities Investment Income Payments made to acquire fixed assets 58 11,3351 11,2771 141 19021 17611 Decrease in cash and cash equivalents in the year 11,6151 13231 Cash and cash equivalents beginning of the year 3,282 3,605 Cash and cash equivalents at end of the year 20 1,667 3,282 The Northern College lor Resldentoal Adult Educatoon Llmoted Annual report and financial statements for the period ended 28 February 2026 40 Notes to the financial statements Siatement of accounting policies and estimation techniques The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements. The Northern College for Residential Adult Education merged with Barnsley College on 1, March 2026. Northern College transferred its property, rights and liabilities to Barnsley College on 1 March 2026. The exception to this was in relation to the main hou5& at Northern College. The house was transferred to Barnsley Metropolitan Borough Council IBMBCI. Barn51ey College is cornmitted to the continued use of the main house for teaching and learning activitie5 and has negotiated a commercial lea5& for thi5 purpose with BMBC. All existing student5 at Northern College at the point of transfer continued their studies as planned. Basls of preparatlon These financial statements are prepared in accordance with the Statement of Recommended Practicè ISORPI.. Accounting for Further and Higher Education 2019 Ithe 2019 F & HE SORPI, The College Accounts Direction for 2025 to 2026 and in accordance with Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021. The College is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the College's accounting policies. The financial statements are presented in Sterli ng 1£). Going ¢on¢em The College Governors pursued a merger which resulted in the transfer of the College's trade, assets and liabilities to Barnsley College on l M8rch 2026. For this reason, the College Governors have concluded that it is no longer appropriate to prepare the financial statements on a going Concern ba515. Northern College transferred its property, rights and liabilities to Barnsley College on 1 March 2026. The exception to this was in relation to the main house at Northern College. DLJe to the exercise of pre-emption rights, the house was transferred to Barnsley Metropolitan Borough Council IBMBCI. Barnsley College is committed to the continued use of the main house for teaching and learning activities and has negotiated a commercial lease for this purpose with BMBC. Existing students at Northern Collège at the point ol merger have continued to study to complète their course. With exception to the impairment and associated release of deferred capital grants attached to Wentworth Castle, no other adjustments arose as a result of ceasing to apply the 90in9 concern basis. Recognition of income Income for tuition fees is recognised in the period in which delivery has taken place and includes all fees chargeable to students or their sponsors. Income from research grants, contracts and other services rendered is included to the extent of the completion of the contract or service concerned. This is generally equivalent to the SLJM of the relevant expenditure incurred during the year and any related contributions towards overhead costs. All income from short-term deposits is credited to the income and expenditure account in thè period in which it is earned. Income from specific endowments and donations is included to the extent of the relevant expenditure incurred during the year, together with any related contributions towards overhead costs. The Northern College for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 41 Notes to the financial statements Ststement of accounling policies and estimation techniques (continued) The recLirrent grants from the DfE represent the funding allocations attributable to the CLirrent financial year 2nd arè credited direct to the income and expenditure account. Rècurrent grants are recognised in line with planned activity. Any undèr-achievement against this planned activity is adjugted in the year and is reflected in the line of the recurrent grant recognised in the income and expenditure account. Non-recurrent grants from the DFE or other bodies, received in respect of the acquisition or construction of fixed assets are treated as deferred capital grant5 and amortised in line with depreciation over the life of the asset5. The deferred element 15 recognised as deferred income within creditors and allocated between creditors due within one year and creditors due after more than one year as appropriate. Capltal grantfunding- government grants Government capital grants for assets are accounted for under the accruals model. The grant income received or receivable will be recognised over the expected useful life of the asset, with any amount of the asset-related grant that is deferred being recognised a5 deferred income. The deferred income is allocated between creditors due within one year and those due after more than one year r&cognised in income when the performance-related conditions have been met 2nd the grant will be received. Accounting for p05t-employment benefits Post-employment benefits to employees of the College are provided by the Universities, Superannuation Scheme IUSSI and the South Yorkshire Pensions Authority ISYPAI. These are defined benefit schemes which are externally funded and contracted out of the State Second Pension. Contributions to the Universities, Superannuation Scheme are charged to the Income and expenditure account so as to spread the cost of pensions over employees, working lives with the College in such a way that the pension cost is a substantially level percentage of CLJrrent and future pensionable payroll. Contributions to the scheme are determined by qualified actLJaries on the basis of triennial valuations, using the projected unit method. The USS is a multi-employer scheme and the College is unable to identify its share of the underlying assets and liabilities of the Scheme on a con51Stent and reasonable basis. The USS is therefore treated a5 a defined contribution scheme and the contributlOn5 recognised 35 they are paid each year. A liability 15 recorded within provisions for any contractual commitment to fund past deficits within the USS scheme. The LGPS is a funded scheme. The assets of the LGPS are measured using closing fair values. LGPS liabilities are measured using the projected unit credit and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liabi lities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liabilitylasset is also recognised in the Income Statement and comprises the Interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets and the defined benefit obligation at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets together with other actuarial gain5 and losses are recognised immediately in other Comprehensive ineome. Re-mea5urement comprising actuarial gains and105ses, the effect of the 355et ceiling and the return on scheme assets (excluding amoLJnts include in net interest on the net defined benefit liability) are recognised immediately in other comprehensive income. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 42 Notes to the financial statements Ststement of accounling policies and estimation techniques {continued) The LGPS assets are managed by the scheme trustees at scheme level, and the determination I 2llocatiDn of assetg to each individual employer in the schème is managed by the scheme actuary. The assets are allocated to each employer for accounti ng purpose5 based on the valuation of the assets at the latest triennial valuation as adjusted for subsequent contribution5 received from the employer, asset returns, and benefit payments made (either on a cash basis or actuarial basis). The retirement benefit obligation recognised represents th& deficit or surplus in the defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans. Short term Employment benefrts Short term employment benefits such as salaries and compensated absences Iholiday payl are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the Ljnused entitlement. Enhanced pensions The actual cost of any enhanced ongoing pension to a former member of staff is paid by the College annually. An estimate of the expected future cost of any enhancement to the ongoing pension of a former member of staff is charged in full to the College's income and expenditure account in the year that the member of Staff retires. In subsequent years a charge 15 made to provi5ion5 in the balance sheet using the enhanced pension spreadsheet provided by the funding bodies. Tangiblè fix•d assèts Land and buildings are stated at deemed cost less accumulated depreciation and accumulated impairment losses, these assets are depreciated over their estimated useful life of between 28 and 48 years. Land and building5 inherited from the Local Education Authority are stated in the balance sheet at valuation based on depreciated replacement costs, as the open market value for existing use is not readily obtainable. Freehold land is not depreciated. Improvements made to the property and buildings built by the college are included at cost less accumulated depreciation. Where land and buildings are acquired with the aid of specific grants they are capitalised and depreciated as above. The related grants are credited to a deferred income account within creditors nd are released to the income and expenditure account over the expected useful economic life of the related asset on a bzsis consistent with the depreciation policy. The deferred income is allocated between creditors due within one year and those due after more than one year. Finance costs which are directly attributable to the construction of land and buildings are not capitalised as part of the cost of those assets. Subsequent eXpendI￿re on exlstlng flxed assets Where significant expenditure is incurred on tangible fixed assets after initial purchase it is charged to the income and expenditure account in the period it is Incurred, unless it increases the fLJture benefits to the College, In which case it is capitalised and depreciated on the relevant basis. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 43 Notes to the financial statements Ststement of accounling policies and estimation techniques (continued) Equipment and improvements to property Equipment costing less than £1,500 per individual item is written off to the income and expenditure account in the year of acquisition All other equipment is capitalised at cost. Capitalised equipment is depreciated over its useful life as follows.. Equipment Improvements to property Motor vehicles 5%-33% perannum 2%-20% perannum 14%-25% perannum Where equipment is acquired with the aid of specific grants it is capitalised and depreciated in accordance with the above policy, with the related grant being credited to a deferred income account within creditors and released to the income and expenditLJre account over the expected usefLJI economic life of the related equipment. A review for impairment of a fixed asset is carried out if event5 or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. ShortFa115 between the carrying value of fixed as5et5 and their recoverable amounts are recogni5ed as impairments. Impairment losse5 are recognised in the Statement of Comprehensive Income and Expenditure. Intangible Fixed A55ets Intangible assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable, and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost, net of amortisation and any provision for impairment. Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset on a straight-linè basis over its expected useful life, as follows.. Purchased computer software- 5 Years Branding/Website- 10 Years Operating leases All leases are operating leases and annual rents are charged to the comprehensive income on a straight line basis over the lease term. Flnanclal Instruments The College has chosen to adopt Sections I l and 12 of FRS 102 in full in respect of financial instruments. Financial assets and liabilities Financial assets and financial liabilities are recognised when the College becomes a paty to the contractual provisions of the ingtrument. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. All financial assets and liabilities are initially measured at transaction price lincluding transaction costs), except for those financial assets measured at fair value through the profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless arrangement constitutes a financing transaction. A financial asset or financial liability that is payable or receivable within one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 Notes to the financial statements Statement of accounting policies and estimation techniques leontinued) Flnanclal assets and liabilltles Icontlnued} Financial assets and financial liabilities are offset only when there is è current legally enforceable right to set off the rècognised amounts and the intention to either settle on a net basis, or to realise the asset and settle the liability simultaneously. Dere¢ognition of financial assets and liabilities A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or SLJbstantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards ol ownership are retained but control of the asset has transferred to another paty that is able to sell the asset in its entirety to an unrelated third paty. A financial liability lor part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expireg. Agency arrangements The College acts as an agent in the collection and payment of discretionary learner support funds. Related payments received from the Department for Education, South Yorkshire Mayoral Combined Authority or West Yorkshire Combined Authority and subsequent disbursements to students are excluded from the income and expenditure of the College where the College is exposed to minimal risk or enjoys minimal economic benefit related to the transaction. Judgements Judgements in applying accounting policies and key sources of estimation uncertainty In preparing these financial statements, management have made the following judgements". Determine whether leases entered into by the College either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risk and rewards of ownership have been transferred from the lessor to the lessee on a lease- by-lease basis. Determining the existence of a minimum funding requirement for the Local Government Pension Scheme to including in the asset ceiling in measuring and recognising a surplus in the scheme. This judgement is based on an assessment of the nature of the scheme as a statutory scheme and is the inherent implied continuance and the operation of the primary and secondary contributions. Critical accounting estimates and assumptions Tangible fixed assets Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual value5 are assessed annually and may vary depending on a number of factors. In re- assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposed values. Local Government Pension Scheme The present value ol the Local Government Pension Scheme defined benefit obligation depends on a number of fzctors that are determined on an actuarial basis using a variety of assumptions. The assumptions uged in determining the net cost lincomel for pensions include the discount rate. Any changes in these assumptions, which are disc105ed in note 19, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2025 has been used by the actuary in valuing the pension5 obligation at 28 February 2026. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount on the pension obligation. The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 45 Notes to the financial statements 2. Funding body grants Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Adult Skills Budget DfE SYMCA WYCA Adult Learner Loan Bursary Advanced Learner Loans Release of government capital grants DIE ERS Nl grant 25126 191 2,918 755 52 20 72 1,201 328 97 20 99 32 1,772 4,026 3. Tultlon fees and Educatlon Contracts Period ended 28 February 2026 £'ooo Year ended 31 JLJIY 2025 £'ooo Tuition Fees". Home fees and charges 20 4. Research grants and contracts Period ended 28 February 2026 £'ooo 58 Year ended 31 July 2025 £'ooo 81 Release from Government capital grants 5. Other income Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Catering and residence operations Other income generating activities Other 144 102 213 234 256 453 Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo 6. Investment Income Interest receivable 58 141 The Northern College for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 46 Notes to the financial statements Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo 7. Donations Unrestrirted donations 8. Staff Costs Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Staff costs during the year were as follows.. Wages and salarie5 Social security costs Pension costs (see note 191 1,299 156 166 1,621 2,022 197 332 2,551 Restructuring costs Contractual Non-contractual 263 56 1,940 2,551 The above amount includes1£115kl12025.' IE129kll in relation to the LGPS FRS 102 net current and past service pension cost, £nil12025.. £Nill in relation to the USS FRS 102 net current and past service pension cost. The College paid 5 severance payments in the year, arnounting to £319k (included in restructuring C05t5 above). These payments were made to five members of st8ff12025,. £7k to one mernber of staff). The ments were disclosed in the followin bands.. Severance payment made Number O- £25,000 £25,001 - £50,000 £50,001 £100,000 £100,001 £150,000 £150,000+ Included in staff restructuring costs are special severance payments totalling £56,00512025- £nill. Individually, the payments were.. £600, £4,400, £6,329, £21,695 and £23,031. The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 47 Notes to the financial statements 8. Staff costs leontinuedl The average monthly number of persons,. including key rnanagement personnel but excluding sessional teaching staff., expressed as average headcount and calculated monthly basis, was.. Period ended 28 February 2026 Number Year ended 31 July 2025 Number Teaching staff.. Teaching departments- teaching staff Total Teaching support services Total teaching staff 22 12 34 22 30 Non-teaching staff.. Other support services Administration and central services Premises Total non-teaching staff Total staff 10 12 27 61 12 29 59 The number of staff, including key management personnel and the principal, who received emoluments (excluding pension costs but excluding benefits in kindl in the followin9 ranges was.. Period Year ended ended 28 31 July 2025 February NLimber 2026 staff Number Staff £60,001 to £65,000 £65,001 to £70,000 £70,001 to £75,000 £75,001 to £80,000 £80,001 to £85,000 £85,001 to £90,000 £90,001 to £95,000 £95,001 to £100,000 £100,001 to £105,000 £105,001 to £110,000 £110,001 to £115,000 £115,001 to £120,000 mana ement ersonnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College and are represented by the Executive Leadership Team. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 48 Notes to the financial statements 8. Staff costs leontinuedl Period ended 28 February 2026 Number Year ended 31 July 2025 Number The nLJmber of key management personnel including the accounting ofPicer was.. Key management personnel's emoluments are made up as follow5.. Period ended 28 Year ended February 31 July 2026 2025 £'ooo £'ooo Salaries Pension contributions Restructuring costs.. Contractual Non-contractual Total key management personnel emoluments 151 45 263 78 237 27 460 341 In addition to the above, national Insurance amounted to £33k12025,. £34kl There were no amounts due to key management personnel that were waived in the year, nor any salary sacrifice arrangements in place. The above emolument5 include amounts payable to the Accounting Officer Iwho 15 also the highest paid officer) of.. 1 August to31 December 2025 1 January to28 February 2026 Totsl Period ended Year 28 ended February 31 July 2026 2025 £'ooo E'ooo E'OOO £'ooo Salary Pension contribution Restructurin9 COSts'. Contractual Non-contractual 42 13 24 66 19 263 78 28 53 81 87 87 174 341 There were 2 Accounting Officers in post during the period. The Accounting Officer for the year ending 31 July 2025 was in post until 31 December 2025. The Northern College for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 49 Notes to the financial statements 8. Staff costs leontinuedl The governing body has adopted and complied with the Association of Colleges Senior Post Holder Remuneration Code and pay in line with its principles and this has been followed. The remuneration package of Senior Post Holders (key management personnel), including the Principal and Clerk, is subject to annual review by the Remuneration Committee of the governing body who use benchmarking information, linked to the value and performance delivered to provide objective guidance. The Principal and Clerk report to the Chair of the Board of Governors, who undertakes an annual review of her performance against the College's overall objectives using both qualitative and quantitative measures of performance. Other key management personnel salaries are based on an agreed scale which is reviewed annually. 2025126 2024125 Pay multiple of the Principal/Chief ExecutivelAccounting Officer basic pay and the median earnings of the College's whole workforce Pay multiple of the Principal/Chief Executive/Accounting Officer total emoluments and the median earnings of the College's whole workforce 3.30 3.23 3.30 3.59 Members of the Board of Governors, other than the principal, and staff representatives, did not receive ny payment from the College other than reimbursement of travel and subsistence expenses incurred in the course of their dLJties. Directors, remuneration The members of the College's governing body are also the directors of the company, for the purposes of company law. Directors do not receive remuneration for their role as a member of the College's governing body, but may be remunerated for other positions held at the College. Remuneration paid to directors during the year was.. Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Emoluments Pension contribution 186 30 216 151 45 196 Post-employment benefits are accruing for 2 director512025.. 21 under è defined benefit scheme. No directors 12025.. none) were member5 of defined contribution schemes. In addition to the above, ompensation for loss of office was paid to all 3 directors amounting to £113,170. The Northern Colle9e for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 so Notes to the financial statements 8. stsff costs leontinuedl Compensation for loss of office paid to former accountin9 officer and key management personnel Period ended 28 February 2026 Year ended 31 July 2025 Compensation paid to 3 former key management personnel - contrartual Compensation paid to former post holders- non-contractual Total 262,638 26,695 289,333 The amount above includes £90,139 paid to the Accounting Officers1£32,694 and £57,445). All severance payments were approved by the Board ol The Northern College for Residential Adult Education. 9. Other operating expense5 Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Teaching costs Non-teaching costs Premises costs 176 339 549 1,064 456 344 835 1,635 Perlod ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Other operating expenses include= Auditors. remuneration (excluding VATI Financial statements audit Internal audit 51 50 Included within expenditure are the following transactions, individual transactions exceeding £5,000 are identified separately.. Write offs and ltssses- There was one write-off of over £5,000. This related to the write-off of an intangible asset that amounted to a loss of £12k and was approved by the board in line with the Financial Regulations. Guarantees, letters of comfort and indemnities there were no guarantees, letters of comfort or indemnities entered into OLJtside the normal course of business. The Northern College for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Notes to the financial statements 8. stsff costs leontinuedl Compengation payments 2nd ex-gratia payments- there were no compensatitsn payments or èx-gratia payments during the year. 10. Interest and other financo costs Perlod ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Net interest and defined benefit pension scheme 11.Taxation The College wa5 not liable for any corporation tax arising out of its activities during the year. 12. Tangible fixed assets Freehold land and buildings £'ooo Improve. ments to property £'ooo Equipment £'ooo Total £'ooo Cost At 1 August2025 Additions Elimination in respect of disposals At 28 February 2026 Depreciation & impairment At 1 August2025 Charge for the year Impairment Elimination in respect of disposals At 28 February 2026 Carrying amountat 28 February 2026 3,715 1,669 1,320 2,270 7,654 1,335 1521 2,937 11,6391 646 11,6911 7,298 3,715 1,041 55 1,155 479 107 2,284 1,920 68 155 3,440 230 3,594 1521 2,818 11,6391 504 11,6911 5,573 2,251 1.464 142 1.725 Net book 3mount at 31 July 2025 2.674 1.190 350 4.214 The Northern College for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 52 Notes to the financial statements 12. Tangible fixed assets leontinued) Impairment of land & building$1£l, 155k NBVI, and associated improvements to property,1£2,284k NBVI are due to the ownership of the main house (Wentworth Castle) being transferrèd to BMBC on I st March 2026 due to the pre-emption rights èxercised due to the merger agreement with Barnsley College. All income relating to associated capital grants hag been recognised in these financial statements. Equipment to the value of £155k NBV has been impaired upon merger and transfer of assets to Barnsley College. Improvements to property and equipment assets held on the fixed assets register at nil NBV have been eliminated and disposed of Jpon merger and transfer of assets to Barnsley College. 13. lrfangibl*fixed ass*ts Software, Website & Branding £'ooo Cost At 1 August2025 (Disposals) At 28 February 2026 Amortisation and Impairment At 1 August2025 Charge for the year (Disposals) Impairment At 28 February 2026 80 1171 63 48 141 16 63 Net book value at 28 February 2026 Net book amount at 31 July 2025 32 14. Debtors Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Amounts falling due within one year.. Trade receivables Prepayments and accrued income 147 216 213 161 363 374 The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 S3 Notes to the financial statements 15. Creditors: amountsfalling due within one year Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Trade payables Other taxation and social security Accruals and deferred income Holiday pay accrual Government capital grants Unspent capital grants Amounts owed to the DfE Amounts owed to SYMCA Amounts owed to WYCA 115 90 432 36 593 367 21 563 247 2,464 221 47 225 285 128 12 60 984 16. Credilors: amounts falling due after more than one year Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Government capital grants 3,194 17. Provisions Obligation to fund deficit on USS Pension Enhanced pension Total £'ooo £'ooo £'ooo At 1 Augu5t2025 Additional provision made/lreleasedl in the year Utilised in the year At 28 February 2026 38 38 131 35 35 The enhanced pension provision relates to the cost of staff who have already left the College's employment, and commitments for costs from which thè College cannot rezsonably withdraw Irom at the balance sheet date. This provision hag been rècalculated in accordance with the guidancè igsued by the Funding Body. The assumptions for calculating the provision for pension enhancements on termination under FRS 102, are as follows.. The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 Notes to the financial statements 17. Provisions leontinuedl Period ended 28 February 2026 Year ended 31 July 2025 Price inflation Net interest rate 3.15Y. 5.60Y. 3.15% 5.80% Defined benefit obligations relate to the liabilities under the College's membership of the Local Government Pension Scheme and Univer51tie5 Superannuation Scheme. Further details are given in note The obligation to fund the past deficit on the Universities Superannuation Scheme IUSSI arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management has made an assessment of future employees within the USS scheme, salary payment and the likely yield from a mid-rangè eorporate bond over thè period of the Contracted obligation in assessing the value of thi5 provision. Due to the deficit recovery contributions endin9 in December 2023, the pension liability was unwound in 2023124, split between interest payable and staff costs. The overall impact of this is a nil position as shown in the table above. 18. Caplial commitments Capital commitments in 2026 amounted to £Nil,1202S.. £Nill. 19. Pension and similar obligations The College's employees belong to two principal pension schemes, the Universities, Superannuation Scheme IUSSI and the South Yorkshire Pensions Authority ISYPAI. The pension charge forthe year including the movement in the USS provision Isee note 171 is as follows.. Period Year ended 28 ended February 31 July 2026 2025 £'ooo £'ooo Universities, Superannuation Scheme contributions paid USS additional provisions 77 138 77 138 South Yorkshire Pensions Authority contributions paid FRS 1021281 charge 206 11151 91 326 11291 197 Enhanced pension provi510n 166 332 Universities. Superannuation Scheme The Universities, Superannuation Scheme is a multi-employer benefit scheme. Contributions on a pay as you go basis are credited to the exchequer under arrangements governed by the Superannuation Act 1972. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 S5 Notes to the financial statements 19. Pension and similar obligations (eontinuedl The pensions cost is assessed evèry thrèè years in èccordance with the advice of the government actuary. The assumptions and other data that have the most significant effect on the determination of the contribution levels are as follows: Latest actuarial valuation Actuarial method Discount Rate Pensionable Salary Growth Price Inflation ICPII Market value of assets at date of last valuation 31 March 2022 Projected Unit 4.3% n/a 3.0% £73.1 Billion Proportion of members, accrued benefits covered by the actuarial value of the assets 111% Under the definitions set out in FRS 102128.111, the USS 15 a multi-employer pension scheme. The College is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the College has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The College has set out above the information available on the scheme and the implications for the College in terms of the anticipated contribution rates. South Yorkshire Pensions Authority The SYPA is a funded defined benefit scheme, with the assets held in separate trustee administered by South Yorkshire Pensions Authority. The total contribution paid for the period ended 28 February 2026 was £252,00012025.. £404,000) of which employer's contributions totalled £206,00012025.. £326,000) and employees, contributions totalled £46,00012025.. £78,000). The agreed contribution rates for future years are currently 30.9% for employers and from 5.5% to 12.5% for employees, depending on salary. There were no outstandin9 or prepaid contributions at either the beginning or end of the financial year. Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of an FE body in the statutory sector closure, where there is no transfer or merger, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee carne into force on 12 November 2024. Principal Actuarial Assumptions The following Information is based upon a full actuarial valuation of the lund at 31 March 2025 updated to 28 February 2026 carried OLit by a qualified independent actLJary. In prior years, the policy has been to recognise the impact of pension Increases on pension obligations in line with the Pension Increase Order (PI Orderl laid during the relevant accounting period as that is when the Pl Order is known with certainty. The value of the college's share of net assets wa5 £3,847k, however this has been restricted due to the effect of the asset ceiling being the maximum value of the present of the economic benefits available in the form of the unconditional right to reduced contribution5 from the plan. A corresponding charge ha5 been made to other comprehensive income in the period. The Northern College for Resldentoal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 56 Notes to the financial statements 19. Pension and similar obligations (eontinuedl Period ended 28 February 2026 Year ended 31 July 2025 Future rate of increase in Salaries Future pension Increase rate ICPII Discount rate for scheme liabilities 3.40 2.80 5.60 3.35 2.75 5.80 The current mortality assumptions include sufficient allowance for future improvements in rnortality rates. The assumed life expectations on retirement age 65 are.. Period ended 28 February 2026 Year ended 31 July 2025 Retiring today Males Females 20.7 23.6 20.7 23.6 Retiring in 20 years Males Females 21.5 25.0 21.5 25.0 The assets of the scheme rel3ting to the College at the balance sheet date and the expected rate of rèturn were.. Value at Period ended 28 Februar y 2026 £'ooo Value at Year ended 31 July 2025 E'OOO Equity instruments Government bonds 10,295 2,984 9,629 2,614 Property Cash/liquidity 1,492 149 1,376 137 Total fair value of a55ets 14,920 1,180 13,756 796 Artual return on plan assets The Northern Colle9e for Resldentlal Adult Educatlon Llmoted Annual report and financial statements for the period ended 28 February 2026 57 Notes to the financial statements 19. Pension and similar obligations (continued) Amounts recognised in the Statement of comprehensive income in respect of the plan are as follows: Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Amounts included in staff costs Current service cost Past service cost Total 1911 11971 11971 Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Amounts included in interest and other finance costs Net interest eOSt Amount reeognised in Other eomprehensive ineome Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Return on pension plan assets Experience gainllosses arising on defined benefit obligations Change in financial as5umptlOn5 underlying the scheme liabilities Amount recognised in Other comprehensive income 725 147 57 1,501 1,705 14551 269 Asset and Llability Re¢on¢iliation Perlod ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Chan9es in the present value of defined benefit obli9ations Defined benefft obligations at Start of period Current service cost Interest cost Contributions by scheme participants Actuarial losses/lgainsl Benefits paid Defined benefit obligations at end of period 10,441 91 455 46 345 12681 11,602 197 647 78 11,6301 14531 10,441 19. Penslon and slmllar obligatlons leontlnuedl The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 Sa Notes to the financial statements Period ended 28 February 2026 £'ooo Year ended 31 July 2025 £'ooo Fair value of plan assets at start of period Interest income Return on plan assets (excluding net interest on the defined benefit pension scheme Employer contributions Contributions by scheme participants Benefits paid 13,756 455 13,009 649 725 206 46 12681 147 326 78 14531 Fair value of plan assets at the end of the period 14,920 13,756 Period ended 28 February 2026 £'ooo Year endèd 31 July 2025 £'ooo Recognition of net a$sets Present value of defined benefit obligations Fair value of plan assets Net asset Restriction to level of asset ceiling (excluding interest in asset restriction) Present value of unfunded obligations 11,073 14,920 3,810 10,404 13,756 3,315 13.8471 1371 13,3521 1371 The value of the college's share of net assets has been restricted due to the effect of the asset ceiling being the maximum value of the present of the economic benefits available in the form of the unconditional right to reduced contributions from the plan. A corresponding charge has been made to other comprehensive income in the period. The College Is aware that the Court of Appeal has recently upheld the decision in the Virgin Media vs NTL Pension Trustees 11 Limited case. The decision puts into question the validity of any amendments made in respect of the rules of a contracted-out pension scheme between 6 April 1997 and 5 April 2016. The judgment means that some historic amendments affecting s.912BI rights could be void if the necessary actuarial confirmation under s.37 of the Pension Schemes Act 1993 was not obtained. On the 5 June 2025, the Government announced its intention to introduce legislation to give affecied pension schemes the ability to retrospectively obtain written confirmation that historical benefit changes met the necessary standards. However, details of the legislation have not been announced and it's not clear how this interacts with the investigations made by the UK Government's Actuary's Department therefore the potential impact if any, on the valuation of scheme liabilities remains unknown. The Northern Colle9e for Resldentlal Adult Educatlon Llmlted Annual report and financial statements for the period ended 28 February 2026 S9 Notes to the financial statements 20. Changes in netfunds At period ended 28 February 2026 £'ooo At1 August 2025 Cash flows £'ooo £'ooo Cash atbank and in hand Investments 51 3,231 3,282 1,616 13,2311 11,6151 1.667 Net funds, cash and cash equivalents 1.667 21. Company limited by guarantee The Northern College Company is limited by guarantee and has no share capital. The liability of its members is limited to an amount not exceeding £1. At 28 February 2026 there were 12 members12025.. 13 members). 22. Related party transartlons There have been no related party transactions during the period to February 2026 IFY25 nill. The total expenses paid to or on behalf of the Governors during the period was £119.85 to one governor IFY2025.. £160.90,. one governor). This represents travel and subsistence expenses and other out of pocket expenses incurred in attending Governor meetings and charity events in their official capacity. No governors received any remuneration or waived payments from the College during the year12025