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2021-07-31-accounts

COMPANY NUMBER: 00673076 CHARITY NUMBER: 525761

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

CONTENTS FOR THE YEAR ENDED 31 JULY 2021

Page
Governors, Officers and Advisors 2 - 3
Annual Report of the Trustees
Directors Report 4
Strategic Report 8
Independent Auditor’s Report 19
Consolidated Statement of Financial Activities 23
Consolidated and Charity Balance Sheets 24
Consolidated Statement of Cash Flow 25
Notes to the Financial Statements 27 - 49

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UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

GOVERNORS, OFFICERS AND ADVISORS FOR THE YEAR ENDED 31 JULY 2021

KEY MANAGEMENT PERSONNEL: GOVERNORS, DIRECTORS AND CHARITY TRUSTEES

The Governors of United World College of the Atlantic Limited (UWC Atlantic) are the College’s charity trustees under charity law and directors of the charitable company.

Members of the Governing Body who served as officers during the year and subsequently are detailed below:

Serving Officers now Resigned

M Schepers (resigned 8[th] March 2021) O S Strugstad (resigned 8[th] March 2021)

D J Stacey (resigned 8[th] March 2021)

C Outram (resigned 10[th] April 2021) Sir Adrian Webb (resigned 15[th] April 2021)

Current Serving Officers

(1) (2) (3) (4) (5)
J Longson (Chair)
P Britton (appointed 8thMarch 2021) C
Lady Joanna Knatchbull
I Cooper C
D Desmet
M J H Trickey C
L Siddiqi
R Rawling (Vice Chair)
A Jones C
P Agar (appointed 8thMarch 2021) C
P Brown (appointed 23rdApril 2021)

C Chair of relevant Committee

Note: Lady Joanna Knatchbull is the Nominations lead, Ruth Rawling is the Governance lead and Phil Brown is the Build Environment lead. During the year, the activities of the Board of Trustees were carried out through five committees. The membership of each of these committees is shown above for each Governor.

KEY MANAGEMENT PERSONNEL: OFFICERS

P Howe T Bersey T Bersey

Principal (until July 2021) Company Secretary Clerk to Governors

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Principal Address and Registered Office St Donat’s Castle
St Donats
Llantwit Major
CF61 1WF
Auditor Bevan Buckland LLP
Statutory Auditor
Ground Floor
Cardigan House
Enterprise Park
Castle Court
Llansamlet
Swansea
SA7 9LZ
Bankers The Royal Bank of Scotland plc
62-63 Threadneedle Street
London
EC2R 8LA
The Principality Building Society
Principality Buildings
PO Box 89
Queen Street
Cardiff
CF10 1UA
Solicitors Eversheds Sutherland International LLP
1 Callaghan Square
Cardiff
CF10 5BT
Farrer & Co LLP
66 Lincolns Inn Fields
London
WC2A 3LH
Investment Manager Brewin Dolphin Limited
2nd Floor
5 Callaghan Square
Cardiff
CF10 5BT
Insurance Broker Marsh Brokers Limited
Capital House
1-5 Perrymount Road
Haywards Heath
RH16 3SY

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

The Governors who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the consolidated financial statements of the Group for the year ended 31 July 2021. The Governors have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

CONSTITUTION AND OBJECTS

The United World College of the Atlantic Limited (UWC Atlantic) was incorporated in 1960. It is constituted as a company limited by guarantee, registered in England, company number 00673076, and is registered with the Charity Commission under charity number 525761. The College is governed by its Memorandum of Association and Articles of Association, recently amended and updated in September 2021.

The principal activity of UWC Atlantic College, as set out in the Articles of Association, is the education and well-being of its students. This reflects the principal object of UWC Atlantic, as expressed in the Articles of Association, which is ‘’the advancement of education and learning, providing an environment likely to encourage enterprise and experiences designed to develop self-reliance, co-operation, regard for others and deeper international understanding.’’

In furtherance of its objects, UWC Atlantic has established and administers bursaries, grants, awards and other benefactions and acts as the trustee and manager of property, endowments, bequests and gifts given or established in pursuance of its objects.

AIMS, OBJECTIVES AND ACTIVITIES

UWC Atlantic was established as a pioneering educational initiative at the height of the Cold War and in the aftermath of the Second World War, with the explicit aim of promoting international understanding through education. Nearly sixty years later, the college remains true to the educational philosophy and ethos of its founders, educationalist Dr Kurt Hahn, Air Marshall Sir Lawrence Darvall and Rear Admiral Desmond Hoare. It continues to provide a platform for young people to learn through shared experience and to be empowered to make a positive difference. Giving them the skills, tools and confidence to help shape a better world.

During the previous year UWC Atlantic published its Vision to Action 2020 which sets out our mission and vision, and a set of 20 Objectives under three headings, People, Purpose and Place. The full document can be read on the College website: https://www.atlanticcollege.org/about-us/our-mission-and-vision.

Despite the Covid19 pandemic, many of these Vision to Action objectives were progressed during the last year. A short summary of progress can be found on page 8 of this report.

In pursuit of the principal objectives of the charity, set out above, students are enabled to acquire the skills, tools, knowledge and attitudes to become change makers for a better future. Inspired by the impact of positive action, they will become catalysts for positive change in their societies.

The Board is committed to delivering public benefit to underline the College’s ethos of positive community engagement, as well as to meet the requirements of the Charities Act 2011. The Board continues to act in accordance with guidance on public benefit produced by the Charity Commission.

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

GOVERNANCE AND MANAGEMENT

Governing Body

Details of the members of the Board of Trustees, together with the College’s officers and principal advisors, are given on pages 2 and 3.

UWC Atlantic is governed by the Board of Trustees. The Governing Body is self-appointing, with Governors previously retiring by rotation on a five-year cycle. The first appointed, or longest serving since last reappointment, are the first to retire. Members retiring by rotation were re-elected for a further three-year period of office. On 1st September 2021, the Board adopted revised Articles of Association and Governors are now appointed for a three year term and shall be eligible for reappointment for up to a further two terms each of three years.

Due to the Covid19 pandemic, the Board of Trustees were unable to meet in person, but did meet frequently during the year, on each occasion virtually on internet calls. All committee meetings were also held virtually.

Recruitment and training of Governors

A sub-group of the Board, the Nominations Group, reports to the HR Committee, receives, prepares proposals for membership, re-election and places these proposals before the members. Proposals are based on the board’s specifications concerning eligibility, personal competence and specialist skills.

Five Board members retired in 2021, and a comprehensive search was undertaken to source replacements, accessing the wider UWC movement network and beyond, using a charitable recruitment company. The Chair of the Board and the Nominations Lead are conscious of the need to increase the diversity of the Board to better reflect the diverse nature of the College and are committed to continue to strive to improve it.

Members of the Governing Body are encouraged to meet with senior management of the organisation and receive minutes of the various committees. All members are encouraged to serve on at least one committee of the Board.

All trustees give of their time freely and no remuneration was paid during the year except for reimbursed travel and subsistence expenses. Costs amounting to £3,012 (2020 - £5,676) were incurred in the course of their duties by 11 of the trustees. Public Liability insurance was purchased for the charity at a cost of £14,689 (2020 - £14,226 ). This insurance includes cover for the actions and omissions of trustees, staff, students and volunteers. The sum directly attributable to the trustees cannot be determined.

Trustees’ and Officers’ Interests

Jill Longson, the Chair of the Board of Governors, is an ex-officio member of the UWC Council, which is the umbrella organisation of the 18 United World Colleges, as is the Principal of the College.

During the year, UWC Atlantic College made contributions of £304,830 (2020 - £203,084) as it’s agreed annual contribution to the help support the UWC International Office, the body that co-ordinates the UWC organisation. These funds, contributed by all schools and colleges under a pre-agreed formula, support the work of UWC International Offices, including National Committee support and global fundraising efforts.

The Principal, Peter Howe, gave notice to the Chair of the Board of Trustees in September 2020. The Chair established a Principal’s Recruitment Group, and appointed recruitment consultants to run the search for a successor. After a comprehensive process, involving all stakeholders groups, Naheed Bardai was appointed

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

as Principal commencing 1[st] August 2021. A thorough virtual induction was conducted for him from January to July 2021.

Peter Howe retired as a member of the UWC International Board, and as Chair of the UWC Heads Committee in November 2020 but remained a member of the Heads Committee and became a member of the UWC Council. He is also a member of the Court for Swansea University.

Jill Longson is a co-founder of Go Make a Difference, offering charitable support UWC wide to student led projects outside of college activities. Her husband is the Treasurer of the UWC International Board.

Driek Desmet is a member of the UWC International Board.

Ruth Rawling is a member of the Board of Atlantic College Enterprises Ltd and a Trustee of King George’s Field, St Donat’s.

Michael Trickey is a Trustee of St Donat’s Arts Centre.

Peter Agar is a Trustee of the Varrier Jones Foundation and a member of the Investment Committee and Development Committee at Selwyn College, Cambridge.

Pippa Britton is Vice Chair of Sport Wales.

Organisational Management

The members of the Governing Body, as the charity trustees, are legally responsible for the overall management and control of the College, including general policy and strategic planning. The work of the Governing Body is delegated to five sub-Committees, each chaired by a member of the Board as follows:

Group structure and relationships

United World College of the Atlantic Limited has one wholly owned subsidiary, Atlantic College Enterprises Limited, which carries out non-charitable trading activities for the College. These activities include the letting of the facilities for functions, including weddings and the outdoor activity courses through the Atlantic Outdoor

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

centre. During the year ended 31 July 2021, the Subsidiary paid £22,300 (2020 - £Nil) as a gift aid payment to the College relating to the 2019/2020 financial year.

Employment Policy

UWC Atlantic supports the attainment of the highest standards of education through a rigorous and continuous evaluation of quality and performance, the application and development of best practice and a widespread desire to improve standards.

The College is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs.

Consultation with employees, or their representatives, takes place at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the College.

The Governing Body is particularly grateful to the teaching staff and support staff who continue to support the College through their dedication to the mission statement of the College and the whole UWC movement and through their loyalty and hard work. The Board recognises the extraordinary commitment of staff to the college, especially during this challenging Covid19 year. It is also appreciative of the very valuable contribution made by parents, alumni, donors and other friends of UWC Atlantic.

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governors (who are also directors of United World College of the Atlantic Limited for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the charity for that period. In preparing these financial statements, the Governors are required to:

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

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Insofar as each Governor, at the date of approval of this report is aware, there is no relevant audit information (information needed by the Charity’s auditor in connection with preparing the audit report) of which the Charity’s auditor is unaware. Each Governor has taken all the steps that he or she should have taken as a Governor in order to make himself or herself aware of the relevant audit information and to establish that the Charity’s auditor is aware of that information.

STRATEGIC REPORT

GUIDING STATEMENTS

UWC Atlantic is the founding college of UWC, (formerly known as United World Colleges), a global education movement. We are a mission-driven international college with a deliberated diverse highly motivated student body and a strong commitment to the educational principles of Kurt Hahn, our founder, and a passionate belief in the importance of education as a force for good in the world.

Our mission is ‘to make education a force to unite people, nations and cultures for peace and a sustainable future’.

Our mission combined with the three founding principles of UWC Atlantic provides a very strong foundation from which to build.

Our Founding Principles:

Our vision is to reclaim our position at the core of the UWC movement, recognised for the radical and experimental spirit that defines our history and drives our impact on the world.

We also commit to living the nine values that we share with the other 17 UWC colleges which underpin the movement and its success:

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

Our History

The College was founded in 1962 on the inspirational philosophy of Kurt Hahn who believed that improving international understanding and tolerance was both desirable and achievable and should be accessible to all. Students on a two-year course, at the end of their secondary education, and pre-university, would be selected on personal merit, irrespective of gender, race, religion or politics and regardless of the ability to pay, as far as funds allowed. The explicit aim would be to show how conflict and hostility could be overcome if young people from different nations, races and religions could be brought together and challenged physically and academically and could learn how to live in harmony with each other. The College’s philosophy remains as powerfully relevant and resonant today as it ever was.

UWC Atlantic is proud to develop a unique peer group of potential change makers drawn from across the globe, from a diverse range of backgrounds and drawn towards a shared purpose – to embody the UWC spirit, to challenge cynicism with courage and belief, shape the future and to make the world a better place to live.

To deliver these objectives will require the on-going help of many supporters. The College intends to ensure that the selection of students continues to be principally on promise and potential, and embraces the unique UWC National Committee system (a global network, comprising of largely 3,000 volunteers). A substantial scholarship fund must be maintained along with funding for recurrent and new capital expenditure, to ensure that UWC Atlantic retains and capitalises upon its place at the core of the UWC movement.

Our goal is to continue to pioneer innovative and inspirational 21[st] Century education within our unique 12[th] Century castle.

STRATEGIES TO ACHIEVE THE PRIMARY OBJECTIVES

In 2019, the College adopted a co-created Vision to Action Strategic Plan, to refresh the College’s strategic objectives and vision for the next five years and beyond.

Our Vision to Action Framework

The framework focuses on creating sustainable impact in three key areas:

For our People

We have focused our actions on student selection, responsibility, wellbeing and empowering employees to deliver on our mission

For our Purpose

We have focused on educational innovation; culture and engagement with our wider community; communications and developing the network for success.

For our Place

We have focused on our financial future, a sustainable campus and our governance.

Our priorities reflect and build on the Seek, Educate and Inspire pillars outlined in the ‘UWC 2018 and Beyond Strategy’.

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We will seek a deliberately diverse group of students for our schools and colleges from across the globe through the UWC national committees and strive to enable access to a UWC education for these students independent of socio-economic means.

We will educate our students based on trust, responsibility and autonomy in order for them to develop agency, experience, values and gain the attitudes and competences to be forces for peace, sustainability and social justice.

We will inspire members of the UWC community to live and act in accordance with the UWC mission and we will inspire our partners and others in education to embrace values-based education, celebrating diversity and promoting peace, sustainability and social-justice.

2021 Update

The 2021 update covers all three areas of our Vision to Action Plan.

People – our students

The College provides places for up to 380 students aged 16-19 years old, selected via two routes, the majority through our unique global UWC National Committee system and a smaller number through a UWC’s relatively newly created Global Selection Programme.

Students are selected on promise and potential, without regard to an individual’s gender, ethnicity, race, religion or disability, nor, as far as funds allow, socio economic background.

Prospective students undertake a comprehensive series of interviews and assessments, designed to satisfy both the College and the student that they will thrive in a UWC environment given the style of teaching and learning and will benefit from the UWC education provided here.

Thanks to the appointment in 2019 of a new National Committee Liaison, the College continues to work closely with the network of UWC National Committees, building relationships in over 150 countries across the globe. The support of the National Committees is greatly appreciated and welcomed as it assists the College in its selection processes and the promotion of the College. In the year to 31 July 2021, there were 88 different countries represented in the student body.

Overall, some 49% of students receive financial assistance either directly from the National Committee, College or from the government of their home country, local industry or other. In all circumstances students’ families are means tested and pay whatever they reasonably can. Bursaries range in value from 10% to 100% and in exceptional cases the College also provides funding for travel costs and pocket money.

The percentage of financial assistance rose significantly during this financial year due in large part to the Covid19 pandemic. A UWC wide Covid19 task force was created in summer 2020, its key aim to assist in the transfer of over 200 students unable to attend their original UWC school or college. UWC Atlantic accepted 40 of such students in September 2020, at 50% of total cost, subsidising all such students. This meant that these students could experience a UWC school or college that would have otherwise been unavailable to them due to Covid restrictions.

The Global Selection Programme underwent significant process changes for September 2020 entry, to make it a more flexible and efficient system by which some full fee payers can apply. Colleges are also now more involved in the process.

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People – Our Staff

Our community spirit has been remarkably strong and positive during the COVID pandemic, and our staff continue to be a source of inspiration. The Governors are extremely thankful to everyone who has worked so tirelessly to support the College over what has been another very difficult and challenging year.

July 2021 saw a change in Principal, as the College wished Peter Howe and his family all the best for the future, and thanked him for his remarkable 16 years of dedicated service to the UWC movement. During his four year tenure at UWC Atlantic, Peter focused on bringing significant changes and improvements to the College, and the Governing body owe him a huge debt of gratitude.

Following a comprehensive recruitment process led by our Chair of the Education and Well Being Committee, the Board were delighted to announce in December 2020 the appointment of Naheed Bardai as the incoming Principal at UWC Atlantic. Naheed and his family arrived in July and took over from Peter 1[st] August 2021. Naheed comes with years of experience in education, currently the Head of Upper School at Upper Canada College, Toronto.

– People Alumni Engagement

There have been no face to face meetings with alumni during the financial year 2020/21 due to Covid19. However the College expanded its successful online lectures and panel discussions under the InConversation and InTouch series. The College welcomes more involvement by alumni going forward, including mentoring programmes and expansion of the Lighthouse Project (see later). Offering Time and Talent to the College and the wider UWC Movement, as well as Treasure.

No face to face alumni reunions were held again in this financial year although a small number of year groups held virtual ones. The summer of 2022 will see a series of postponed reunions held at the college.

Our first face to face alumni engagement event was held in September 2021 in London, and was a chance for alumni to meet the College’s new Principal. The event was well received.

– Purpose Our Educational Developments

UWC Atlantic’s driver is to be innovative in education. In October 2020 we have launched our Change Maker Curriculum, trialling seven new Change Maker units, including Ocean System and Coastal Management and Dialogue for Social Justice.

In conjunction with UWC International, the College’s incoming Principal will strive to develop this curriculum in order to influence the future direction of the International Baccalaureate, whilst also ensuring that we will combine the academic rigour of the International Baccalaureate curriculum and examination system with our newly created enhanced programme that recognises the contribution to the UWC ideals, ethos and values. To this end, Naheed Bardai has introduced a series of workshop sessions to develop our educational rationale and create a prototype for a pilot new curriculum.

The College calendar continues to create space for mission-aligned project weeks, conferences, challenge camps and a fully developed co-curricular programme of activities for students. The benefit of a UWC Atlantic education, whilst challenging, is recognised by students and staff and also by university admissions deans, who welcome applications from UWC Atlantic graduates.

2020/21 saw the Lighthouse Project become an integral part of the College’s activities. Two Lighthouse Interns were appointed again on a one year contract to oversee the student lead incubator initiatives. Both are recent

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University Graduates and UWC alumni. It is hoped for further alumni/student partnerships to develop over time. For more information:

We would like to pay tribute to all members of Faculty, for their ability to adapt so quickly and professionally to ever changing learning and teaching environments (ongoing from mid-March 2020) and rising to the challenges of blended learning and other teaching approaches needed during the ongoing months of the pandemic in this last academic year.

Governors recognise that the calibre of staff, their commitment to the mission, values, ideals of the UWC movement are critical to the success of UWC Atlantic and the experience offered to students. High quality teaching and support staff continue to be recruited, aligned to our objectives and the need of students.

The student/teacher ratio stands at 10:1.

Recruitment to senior executive posts requires approval by the HR Committee and the Board of Governors; this incudes approval of the role description and proposed remuneration packages prior to advertising the position. Selection of senior executive candidates requires two governors to be part of the interview panel including the Chair of the respective committee to whom the post will be responsible.

Annual pay awards are proposed by the College executive considering the wider economy and local employment market, this pay award must then be agreed and approved by the HR Committee before being approved by the Board of Governors.

Purpose – Our Welfare Provisions

The well-being of our students is of major importance to staff and Governors alike. We have continued to work on both the implementation of plans to the site that will enhance residential, study and leisure facilities available to students, as well as enhancing the well-being support and systems that are in place.

This has been particularly challenging during Covid19. The period from September 2020 to May 2021 saw the campus community split into two, between those in the so called ‘student covid bubble’ and those outside. No students were allowed off campus. Staff and students were not allowed to eat together for example. The staff and student communities showed great resilience during this time. The Governors are grateful to all concerned.

With the roll out of vaccines the communities have been brought together again, but Covid19 still provides daily ongoing challenges.

Safeguarding systems continue to be enhanced with further improvements to our staffing structure. A Safeguarding Audit is undertaken by Ann Jones, Safeguarding Lead Governor annually the results of which are feedback to the Board. Safeguarding remains a standing item in both the Education and Well Being Committee.

Both Estyn and the Care Inspectorate of Wales undertook focused inspections in January 2022, their reports can be found on their websites. The College welcomed development points from each body and have produced action plans to implement improvements.

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

Place – Our Site and Facilities

Reference has been made above to the work that has taken place in the last year to improve welfare and facilities for students.

The two new residential blocks, completed in January 2020 are greatly appreciated by students and staff. A recording studio has been added to the Arts Centre and a central Administration space has been created in the Schweitzer building.

The project to enhance and improve the seafront has progressed. Both indoor and outdoor pools were renovated in April 2021, thanks to generous donations from College supporters. These works served to reinvigorate the whole area and enable better access to not only our students but also to the whole local community.

Work started on the renovation of the Music Department thanks to a significant donation, it is anticipated to be finished in May 2022. Some remedial work took place on various student houses and the Academic Block over the summer of 2021.

Importantly a survey of the castle was undertaken, funded by two alumni. This is the first comprehensive survey of its kind on St Donat’s castle. All roofs were inspected, and graded according to historic significance, condition and use and a matrix of repair need compiled.

A sub group of the Board and Executive worked on creating a list of capital project priorities for the whole campus, in the autumn of 2022 and completed its work in January 2022. A summary of future works is as follows:

To best meet our environmental sustainability credentials, there is no intention now to build new, rather to renovate current structures and focus more on increasing annual maintenance spend to ensure the maximum longevity of exiting builds. This is particularly relevant to student houses.

The College has increased its focus on sustainability during the course of this financial year and beyond. The student led Sustainability Council has been very active. It produced the Colleges first Carbon Footprint Report and summarised key improvements to be made on campus.

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENTS AND PERFORMANCE

Review of achievements and performance for the year

Given the challenges that the whole world has seen as part of the ongoing COVID pandemic, the Chair is extremely proud that the College managed to continue to operate so effectively, especially considering the many restrictions and difficulties faced with regard to international travel and quarantining.

It is particularly heartening to see that our regular committed donors have continued to support us, especially in regard to our scholarship funding, and we are very grateful to them for their ongoing support.

Student numbers :

The College met its targets for student numbers during the year, as seen in the following table, student numbers improved slightly on those of the previous year:

2021 2021 2020 2020
No % No %
Number of students 363 361
Male 134 37% 127 35%
Female 229 63% 234 65%
Nationalities represented 88 90
Students financially supported by college 172 47% 116 45%
Value of support provided by the college £3,936,000 £3,423,000

Student Performance

UWC Atlantic prides itself on bringing together students who want to make a difference in the world. Our IB Diploma results are only a part of how we determine the success of our students. As important to us is that students are engaged in their two years with the UWC mission and are active and participative UWC students. We therefore have metrics to track Effort and Engagement on an ongoing basis for each student.

With regard to the IB Diploma, the International Baccalaureate again cancelled IB Diploma final year exams in 2021 due to the pandemic. IB Diploma results below were based on an algorithm including amongst other things historic data. Despite on-line learning for a number of weeks, students once again achieved outstanding results:

UWC Atlantic students seeking tertiary education were very successful again this year. The US continues to be the main destination followed by the UK and the Netherlands. Students have also applied to universities in Canada, Spain, Italy, Japan, Hong Kong, South Korea, Australia, Norway, Denmark, Sweden, Finland, Germany. Offers came in from a range of institutions including the University of Cambridge, Russell group universities, US Ivy leagues as well as other Davis partner institutions. Students are now concentrating on finding the correct fit for university and are moving away from applications based solely on rankings.

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

Fundraising Performance

2020/21 was an unprecedented year for UWC Atlantic with the start of the COVID-19 pandemic but despite this, the College’s Philanthropy, Partnerships and Engagement team performed exceptionally well.

UWC Atlantic relies extensively on philanthropic support to achieve its strategic goals and ambitions and we are enormously grateful to our donors, alumni and friends who continued to support us during such a difficult year.

More than £3.0m was raised in donations during 2020/2021 which includes £765k raised through donors via the UWC International Office. The majority of this (£2.6m) was donations for scholarships and the remaining for other projects including:

Donations from alumni, trusts and friends of UWC Atlantic and UWC International supported scholarships for 194 students from 75 countries. The remaining scholarships were funded by the College or through support from National Committees.

The Charity does not engage third parties to carry out fundraising activities on its behalf and has a Philanthropy, Partnership and Engagement Team, tasked with raising funds from private donors, from alumni, parents, trusts and corporate entities. The Charity is in contact with parents and alumni via an annual engagement programme and engages with private donors, trusts and corporate entities through direct personal contact and approaches. Major fundraising campaigns are focused on supporting the Charity’s scholarship, bursary provision and its campus and curriculum development programmes. The Charity is a member of CASE (Council for Advancement and Support of Education) and the Institute of Fundraising.

Public Benefit

UWC Atlantic remains committed to the aim of providing public benefit in accordance with its founding principles. Charity law has introduced a requirement to demonstrate public benefit for charitable purposes where it has hitherto been presumed in the absence of evidence to the contrary.

The bursary awards from the College provide direct benefit to a high proportion of students. The Board takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important but not to the exclusion of the much wider benefit that the College provides within the community. Those students who attend UWC Atlantic and who receive financial support to do so contribute to the College community in many ways and so the benefit is not purely to those individual students but to the whole College and also to the wider community.

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ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

FINANCIAL REVIEW

The financial activities, financial position and cash flow of the College are set out in the accompanying financial statements.

All incoming resources have been recorded in the Statement of Financial Activities.

Donations, gifts and grants received during the year amounted to £3,028,000 (2020 as restated - £3,282,000). The total value of bursaries and scholarships for the year was £2,227,000: 16.2% of gross income (2020 - £2,444,000: 17.5% of gross income).

The College’s net movement in funds for the year to 31 July 2021 amounted to £2,195,000 (2020 as restated - £781,000 ). The net cash inflow from operating activities was £1,995,000 (2020 - £2,398,000 ). The net cash outflow after taking into account a reduction in the value of investments, capital expenditure and financial investment was £247,000 (2020 - £1,794,000 outflow).

Investment policy, objectives and performance

In their investment policy, the trustees are mindful of the needs of future, as well as current, students. Accordingly, the charity has two main investment objectives. The investment fund helps to provide income, in order to provide bursaries for current students and to cushion against any shortfall. It is also intended to deliver real growth over the longer term to assist the charity in meeting its objectives in the future. The Charity Commission has given approval for the funds to be invested on a ’’total return’’ basis. The portfolio is managed by Brewin Dolphin.

The investment strategy and policy is monitored by the Finance & Estate Committee, as is investment performance. The trustees have a financial management policy which is reviewed each year to ensure that it is up to date.

Reserves level and policy

At the year end, the Group had tangible fixed assets with a book value of £17,602,000 (2020 - £16,505,000). At year end the total funds of the Group held amounted to £27,647,000 (2020 as restated - £25,452,000) of which £19,013,000 (2020 - £18,303,000) was unrestricted and £8,634,000 ( 2020 as restated - £7,149,000 ) was restricted.

Reserves are maintained at a level that enables the College to manage financial risk and short term volatility. They allow the College to sustain its core business over the long term, ensuring financial commitments can be met as they fall due.

It is the trustees’ long term policy to have levels of free reserves to meet six months of critical costs, project costs and capital spend. They are committed to the on-going requirement to maintain and develop the College’s buildings and facilities to a satisfactory standard to enable the delivery of effective teaching and learning and to the provision of appropriate residential accommodation. At the balance sheet date, bank and cash balances in hand stood at £3,805,000 (2020 - £4,052,000).

At the time of writing, there continue to be there severe economic uncertainties in the world, particularly the ongoing impact of Covid-19 and whilst UWC Atlantic is a well-established International College being supported by its close contacts with Alumni there are clearly significant short-term challenges for all educational establishments.

16

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

As noted above, the College’s finances are strong with substantial cash balances and undrawn facilities with the Principality Building Society. We have stress tested our forecasts with severe scenarios including loss of student numbers, reduced fee income all relating to the impact of coronavirus. We have also examined actions we may take to preserve cash resources and have discussed covenant headroom. At this stage the Board remain confident that the Group can overcome the challenges posed by Covid-19.

UWC Atlantic is a mature college and we are confident that UWC Atlantic will continue to thrive although there will undoubtedly be another challenging year ahead caused by Covid-19 which will affect our workforce and students in ways that cannot always be accurately predicted as we publish these results. The UWC movement has always emerged stronger through difficulties and we see no reason why this should not be the case now with our committed and able workforce, positive financial position and unique position in the market place.

RISK MANAGEMENT

The Governors have given consideration to the major risks to which the College and its subsidiary are exposed. The Governing Body has ultimate responsibility for managing any risks faced by the College and the trustees take their responsibilities seriously. A detailed process of risk identification, mitigation and management is in place, led by members of the Leadership Team and reviewed as appropriate. The risk management process identifies risks, assesses their impact and likelihood and, as necessary, recommends controls to mitigate and monitor those risks that are assessed as high. The generic controls used by the College to minimise risk include:

Principal risks and uncertainties

At the point of approving the financial statements the Covid-19 restrictions have been lifted in the UK. Executive members have taken steps to protect the business of the College and whilst it is expected that Covid-19 will not have a significant impact on the College going forward, it is difficult to assess or quantify the full financial impact.

The heightened risks faced by the charity include the on-going concerns about Covid19; the need for a robust financial plan in support of the proposed site development, including the responsibility for the Grade 1 listed buildings and structures; external factors and influences from across the globe which may impact on recruitment and scholarship funding continue to give cause for concern.

Health and Safety is always a significant area for risk management, particularly given the impressive level and breadth of activity at the College, both on and away from the site. The risks associated with all activities are minimised by thorough planning and risk assessment.

The Governing Body is satisfied that for all major risks identified for the group, appropriate controls have been put in place and maintained to mitigate those risks adequately. It is recognised that systems can provide only reasonable but not absolute assurance that major risks have been managed.

Appropriate insurances are in place for those risks that cannot be underwritten by the College.

17

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021

Auditor

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Governing Body of United World College of the Atlantic Limited on 16 June 2022 including, in their capacity as company directors, approving the Strategic Report contained therein and is signed as authorised on its behalf by:

The auditors, Bevan Buckland LLP, will be proposed for reappointment at the forthcoming Annual General Meeting.

Jill Longson (Chair of Governing Body) 15[th] July 2022

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UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

Opinion

We have audited the financial statements of United World College of the Atlantic Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities (including income and expenditure accounts), the Consolidated and Charity Balance Sheet, The Consolidated Statement of Cashflows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other matters

The financial statement of the Group for the year ended 31 July 2020 were audited by another auditor who expressed an unmodified opinion on those statements on the 25 June 2021.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the

19

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Annual Report of the Trustees.

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

Responsibilities of trustees

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

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

Our responsibilities for the audit of the financial statements

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

We design procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

20

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the Group’s and parent charitable company’s policies and procedures relating to:

Discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas.

Obtaining an understanding of the legal and regulatory frameworks that the Group and Parent Charitable company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Group and Parent Charitable Company, the key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

21

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

Use of our report

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

Alison Vickers (Senior Statutory Auditor) for and on behalf of Bevan Buckland LLP Chartered Accountants And Statutory Auditors Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA

Date:………18/07/2022............……….

22

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED COMPANY REGISTRATION NUMBER 00673076

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTS) FOR THE YEAR ENDED 31 JULY 2021

Unrestricted Restricted Endowed Total Total
Funds Funds Funds 2021 2020
As
restated
Note £000 £000 £000 £000 £000
Income and endowments from:
Donations - 2,960 68 3,028 3,282
Charitable activities 4 10,133 - - 10,133 9,864
Other trading activities 5 126 - - 126 230
Investments 6 94 50 44 188 225
Other 7 236 - - 236 390
Total 10,589 3,010 112 13,711 13,991
Expenditure on:
Raising funds 8 (579) (13) (29) (621) (659)
Charitable activities 8 (9,192) (2,586) (122) (11,900) (11,477)
Other 8 (481) - - (481) (484)
Total (10,252) (2,599) (151) (13,002) (12,620)
Net gains/(loss) on investments 321 229 911 1,461 (617)
Net income 658 640 872 2,170 754
Corporation Tax (10) - - (10) (6)
Gains on defined benefit pension scheme 20 35 - - 35 33
Transfer between Funds 27 (27) - - -
NET MOVEMENT IN FUNDS 710 613 872 2,195 781
Fund balances at 1 August 2020 18,303 2.084 5,065 25,452 24,671
FUND BALANCES AT 31 JULY 2021 18 19,013 2,697 5,937 27,647 25,452

The trustees have prepared group financial statements in accordance with section 398 of the Companies Act 2006 and section 38 of the Charities Act 2011. All amounts relate to continuing operations. There were no recognised gains or losses other than those stated above.

The notes on pages 27 to 49 form part of these financial statements.

23

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED COMPANY REGISTRATION NUMBER 00673076

CONSOLIDATED AND CHARITY BALANCE SHEET AS AT 31 JULY 2021

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stocks
12
Debtors
13
Cash at bank and in hand

Creditors:due within one year
14
Net current assets

Total assets less current liabilities
Creditors:due after one year
15
Defined benefit pension scheme
liability
20
TOTAL NET ASSETS
FUNDS
Endowment Funds
18b
Restricted Funds
18c
Unrestricted Funds
18d
TOTAL FUNDS
18		 Group
2021
£000

17,602
9,703
27,305
1
329
3,805

4,135
(3,414)
721

28,026
(243)
(136)
27,647
5,937
2,697
19,013
27,647		 2020
£000
As
restated
16,505
8,124
24,629
6
254
4,052
4,312
(2,969)
1,343
25,972
(349)
(171)

25,452

5,065
2,084
18,303
25,452		 Charity
2021
£000

17,599
9,703
27,302
1
265
3,695
3,961
(3,280)
681

27,983
(243)
(136)

27,604

5,937
2,697
18,970
27,604		 2020
£000
As
restated
16,499
8,124
24,623
5
275
3,922
4,202
(2,875)
1,327
25,950
(349)
(171)
25,430
5,065
2,084
18,281
25,430

The financial statements were approved and authorised for issue by the Board on 15[th] July 2022 and were signed on its behalf by:

Jill Longson Chair

15[th] July 2022

The notes on pages 27 to 49 form part of these financial statements.

24

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JULY 2021

Note
Cash from operating activities
(i)
Cash flows from investing activities:
Purchase of tangible fixed assets
Received directly into investment portfolio
Net cash used in investing activities
Cash from financing activities:
Drawdown of loan
(Decrease) / Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
(ii)		 Group
2021
2020
£000
£000
1,994
2,398
(2,077)
(4,218)
(164)
(225)
(2,241)
(4,443)
-
251
(247)(1,794)
4,052
5,846
3,805
4,052

25

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JULY 2021

(i) Reconciliation of net incoming resources to net cash flow from operations

Net incoming resources
Non-operating cash flows:
(Gain) / Loss on Investment
Investment management charges
Depreciation charge
(Profit) / loss on asset disposal
Decrease in stocks
(Increase) / Decrease in debtors
(Decrease) Increase in creditors (excluding fees in advance)
Increase / (Decrease) in fees in advance creditors
Movement on pension provision
Net cash inflow from operations
(ii) Analysis of cash and cash equivalents
Cash at Bank		 Group
2021
2020
£000
£000
As
restated
2,195
_781 _
(1,461)
617
46
43
956
786
22
-
5
3
(75)
57
(593)
504
934
(35)
(360)
(33)
(201)
1,617
1,994
2,398
Group
2021
2020
£000
£000
3,805
_4,052 _

26

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1. STATEMENT OF ACCOUNTING POLICIES

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been prepared in accordance with Accounting and Reporting by activities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) (Charities SORP (FRS102)), the financial reporting standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

United World College of the Atlantic Limited meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The functional currency of the Charity is considered to be pounds sterling because that is the currency of the primary economic environment in which the Charity operates. The financial statements are also presented in pounds sterling.

The amounts in the financial statements are presented to the nearest £000, unless otherwise stated.

1.2 Consolidation

The financial statements present the consolidated statement of financial activities (SOFA), the consolidated cash flow statement and the consolidated and Charity balance sheets comprising the consolidation of the College and with its wholly owned subsidiary Atlantic College Enterprises Limited.

A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

The amount of the net income for the year dealt with in the Charity’s entity-only financial statements is £2,084,000 ( 2020 as restated: £709,000 ).

1.3 Going Concern and the impact of COVID-19

The College’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees’ Report.

The College meets its day-to-day working capital requirements through cash balances. An Additional loan facility has not been drawn down in full, with £1.235m remaining of the £1.5m initially available.

At the point of approving the financial statements, the full course of vaccinations had been offered to all eligible UK residents, along with a booster. A second booster was also being offered to the vulnerable. Almost all restrictions had been lifted and a return to normal for the start of the 2022/23 academic year expected.

The College’s forecasts and projections continue to take account of a range of possible impacts of COVID-19 on trading performance, show that it should be able to operate within its facilities and have assessed a number of mitigating actions that could be taken in the event of further waves of the virus.

The Trustees have a reasonable expectation that the College has sufficient resources to continue in operational existence for the foreseeable future. Thus they continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements for the foreseeable future being a period of at least 12 months from the date of approval of these financial statements.

27

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1.4 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Donations are accounted for as and when the entitlement arises, the amount can be reliably quantified and the economic benefit to the College is considered probable. They are accounted for in the financial period during which they are received. Donations receivable for the general purposes of the College are credited to Unrestricted Funds. Donations for purposes which are restricted by the wishes of the donor are taken to Restricted Funds, other than any amounts which the donor has stipulated should be retained as capital, which are accounted for as Endowment Funds, permanent or expendable, according to the nature of the restriction.

Other Trading Activities Income comprises the trading activities of the subsidiary, and is credited to the Statement of Financial Activities on a receivable basis.

All other income is included in the Statement of Financial Activities when the College is legally entitled to the income and the amount can be quantified with reasonable accuracy.

1.5 Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure on charitable activities is accounted for on an accruals basis. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year, by reference to staff time or other cost drivers, as appropriate. The irrecoverable element of VAT is included with the item of expense to which it relates.

Other expenses represent those items not falling into any other heading.

Expenditure on raising funds comprise the costs of fundraising, investment management fees and the commercial trading activities of the subsidiary.

Governance costs comprise costs of running the college, including strategic planning for its future development, external audit, any legal advice for the Trustees, and all the costs of complying with constitutional and statutory requirements, such as the costs of the Board and Committee meetings and of preparing statutory financial statements and satisfying public accountability.

1.6 Debtors

Short term debtors are measured at transaction price, less any impairment. A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due.

1.7 Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Short term creditors are measured at the transaction price, less any impairment.

Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

28

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1.8 Fund Accounting

Funds held are as follows:

Endowment Funds: Funds where the capital of the fund is invested and only the resulting income may be expended by the College.

Expendable Endowment Funds: Endowment Funds which make provision for capital to be drawn down, as necessary, where the income proves insufficient to achieve the fund's objectives.

Restricted Funds: Funds held in specific trusts which may only be used for particular purposes, as stated in the terms of the relevant trust deed. Where such funds are used to purchase fixed assets, an amount equivalent to the cost of the asset is transferred from restricted funds, as the restriction is extinguished on purchase of the asset.

Unrestricted and General Funds: Funds which may be expended, at the discretion of the Trustees, in furtherance of the objectives of the College.

1.9 Tangible Fixed Assets

Tangible fixed assets are initially recorded at cost.

The decision whether or not to capitalise asset expenditure is made on a case by case basis, guided by an informal de minimus of £1,000.

Depreciation is provided on all tangible fixed assets, excluding assets under construction and land, on a straight-line basis, at such rates as to write off the cost of the assets over their estimated useful economic lives, as follows:

Land and buildings 2% straight line Fixtures, fittings and equipment 4 - 33.3% straight line Motor Vehicles 25% straight line

1.10 Investments

Investments are valued at market value at the balance sheet date. Realised and unrealised gains or losses arising from the sale or revaluation of investments are dealt with in the Statement of Financial Activities.

1.11 Stock

Stock is stated at the lower of cost and net realisable value.

1.12 Foreign Currencies

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains and losses on translation are included in the Statement of Financial Activities.

1.13 Total Return Accounting

The Charity Commission permitted the College to adopt the use of total return in relation to its permanent endowment funds on 14 June 2006. The power permits the Trustees to invest these funds to maximise total return and to make available an appropriate portion of the total return for expenditure each year. Until this power is exercised the total return shall be an 'unapplied total return' and remain as part of the permanent endowment. The Trustees have used the values of the endowment funds at 31 July 2006 to represent the 'Preserved Value' of the original gift.

1.14 Operating Leases

Operating lease rentals are charged in the Statement of Financial Activities on a straight line basis over the term of the lease.

29

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1.15 Pension Schemes

The College contributes to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The assets of the scheme are held separately from those of the College. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the College. In accordance with Financial Reporting Standard 102 therefore, the scheme is accounted for as a defined contribution scheme.

The charity contributes to the Pensions Trust Growth Plan for certain of its non-teaching staff. This is in most respects is a money purchase arrangement, but does include certain guaranteed benefit elements. The Plan is a multi-employer scheme and it is not possible in the normal course of events to identify the share of the underlying assets belonging to the individual participating employers and accordingly, in accordance with FRS102, is accounted for as a defined contribution scheme with contributions being recorded as they become payable.

Contributions to both schemes are charged in the Statement of Financial Activities as they become payable. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

1.16 Taxation

No provision for corporation tax is made in these financial statements as the Charity is a registered charity and as such is entitled to exemptions on all its income and gains provided that they are properly applied for its charitable purpose.

1.17 Financial instruments

The charity only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.18 Related Party Exemption

The company has taken advantage of exemption, under the terms of the Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, not to disclose related party transactions with the wholly owned subsidiary within the Group.

2. KEY SOURCES OF ESTIMATION UNCERTAINTY AND JUDGEMENTS

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. The trustees do not consider that there are significant estimates or judgements made during the preparation of the financial statements.

3. LEGAL STATUS OF THE CHARITY

United World College of the Atlantic Limited is a limited company, limited by guarantee and has no share capital. The Charity is incorporated in the United Kingdom under the Companies Act. The address of the registered office is St Donat’s Castle, St Donat’s, Llantwit Major, South Glamorgan, CF61 1WF.

30

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

4. CHARITABLE ACTIVITIES INCOME

The College’s fee income comprised:
College fees
Less: Total bursaries, scholarships and allowances
-
Restricted
-
Unrestricted
Add back: Bursaries paid for by specific donations		 2021
£000
11,842
(3,936)
-
7,906
2,227
10,133		 2020
£000
11,099
(3,712)
33
7,420
2,444
9,864

Scholarships and bursaries were awarded to 187 pupils (2020: 138).

5. INCOME FROM SUBSIDIARY’S TRADING ACTIVITIES

Atlantic College Enterprises Limited is a wholly-owned trading subsidiary (company number: 07734369). The primary purpose of the company is to carry out the trading activities on behalf of the College.

Its trading results for the year, as extracted from the audited financial statements, are summarised below:

Turnover
Cost of sales
Administrative expenses

Corporation Tax

Profit for year
Shareholders’ funds
6.
INVESTMENT INCOME
Income from listed investments
Dividend income
Bank interest receivable
7.
OTHER INCOME
British students overseas income
Other income
2021
£000
126
(14)
(59)
(10)

43
43
2021
£000
165
22
1
188
2021
£000
41
195
236		 2020
£000
230
(89)
(90)
(6)
45
22
2020
£000
193
-
32
225
2020
£000
5
385
390




31

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

8. EXPENDITURE

Staff
costs
(note 9)
Depreciation
(note 10a)
£000
£000
Raising funds
Trading expenses
22
5
Fundraising and promotion
391
-
Investment management fees
-
-
413
5
Charitable activities
Tuition
2,434
210
Boarding
951
210
Property maintenance and utilities
543
238
Support costs
1,055
294
Provision for uncollectable fees
-
-
Student expenses
-
-
Bursaries awarded from Restricted
Funds
-
-

College operating costs
4,983
952
Other
Overseas student costs
-
-
Governance costs
-
-

-
-

Total resources expended
5,396
957
8.
EXPENDITURE (continued)
Support costs includes:
Operating lease payments
Governance expenditure includes:
United World Colleges International contribution
Trustees’ expenses
Auditors’ remuneration - audit services
Auditors’ remuneration - non-audit services		 Other
costs
Total
2021
£000
£000
46
73
111
502
46
46
224
621
235
2,879
1,155
2,316
1,311
2,092
864
2,213
122
122
51
51
2,227
2,227
5,965
11,900
87
87
394
394
481
481
6,649
13,002
2021
£000
62
2021
£000
305
3
42
-		 Total
2020
£000
178
438
43
659
2,843
1,918
2,074
2,143
50
5
2,444
11,477
67
417
484
12,620
2020
£000
51
2020
£000
203
3
42
2

Included in Trustees expenses is the reimbursement of the travel and subsistence costs for 14 (2020 - 14) of the Trustees. The costs amounting to £3,012 (2020 - £2,978) were incurred in the course of their duties, no other remuneration was paid to individual Trustees during the year (2020 - £nil).

32

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

9.
STAFF COSTS
Wages and salaries
Social security costs
Pension contributions
The average number of employees was:
Tuition and boarding
Property maintenance and utilities
Fundraising and publicity
Management and administration
Trading activities
The number of higher paid employees was:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £100,000
£100,001 - £110,000
£120,001 - £140,000
£140,001 - £160,000
Pension contributions made in respect of higher paid employees:
Defined benefit scheme
Aggregate employee benefits of key management personnel		 2021
£000
4,369
433
594
5,396
No.
75
36
8
23
3
145
No.
-
3
-
-
1
£000
54
No
2
476		 2020
£000
4,469
420
610
5,499
No.
64
32
7
21
3
127
No.
3
1
-
-
1
£000
50
No
2
505

33

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

10a.
TANGIBLE FIXED ASSETS – GROUP
Cost
Land and
buildings
£000
Fixtures, fittings
and equipment
£000
Motor
vehicles
£000
At 1 August 2020
18,652
4,964
128
Additions
1,414
651
12
Reclassification
9
(9)
-
Under Construction
43
(43)
-
Disposals
(43)
(1,109)
-
At 31 July 2021
20,075
4,454
140
Depreciation
At 1 August 2020
3,664
3,466
109
Charge for the year
436
506
15
Reclassification
3
(3)
-
Disposals
(39)
(1,090)
-
At 31 July 2021
4,064
2,879
124
Net book values
At 31 July 2021
16,011
1,575
16
At 31 July 2020
14,988
1,498
19
Total
£000
23,744
2,077
-
-
(1,152)
24,669
7,239
957
-
(1,129)
7,067
17,602
16,505

The Trustees are of the opinion that the market value of the castle, grounds and buildings are not less than that shown in the financial statements.

34

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

10b.
TANGIBLE FIXED ASSETS - PARENT
Cost
Land and
buildings
£000
Fixtures, fittings
and equipment
£000
At 1 August 2020
18,652
4,896
Additions
1,414
650
Reclassification
9
(9)
Under Construction
43
(43)
Disposals
(43)
(1,109)
At 31 July 2021
20,075
4,385
Depreciation
At 1 August 2020
3,664
3,404
Charge for the year
436
502
Reclassification
3
(3)
Disposals
(38)
(1,091)
At 31 July 2021
4,065
2,813
Net book values:
At 31 July 2021
16,010
1,573
At 31 July 2020
14,988
1,492		 Motor
vehicles
£000
128
12
-
-
-
140
109
15
-
-
124
16
19		 Total
£000
23,676
2,076
-
-
_(1,152)		 Total
£000
23,676
2,076
-
-
_(1,152)


24,600
7,177
953
-
(1,129)
7,001
17,599
16,499

The Trustees are of the opinion that the market value of the castle, grounds and buildings is not less than that shown in the financial statements.

35

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

11. INVESTMENTS

Group and Parent
Market value at 1 August 2020
Deposits
Withdrawals
Management fees
Investment gains / (losses)

Market value at 31 July 2021
Historical cost of investments		 2021
£000
8,124
164
-
(46)
1,461
9,703
7,233		 2020
£000
8,591
193
-
(43)
(617)
8,124
7,233

An analysis of the types of investment held at the year end is as follows:

Cash and short term investments
Fixed income
Equities
Property
Other		 UK
£000
Non UK
£000
360
-
2,186
560
2,130
3,796
281
-
390
-
5,347
4,356		 Total
£000
%
360
4
2,746
28
5,926
61
281
3
390
4
9,703
100

Funds are held in a combined investment. Each fund is allocated its proportion of investment income and gains and losses, and bears a proportion of expenses. The income earned from invested funds contributes to the bursary fund.

There are no investments at 31 July 2021 that exceeded 5% of the market value of the portfolio.

The Consolidated Balance Sheet shows the same investments as the Parent, with the exception of the unlisted investment of £1 in Atlantic College Enterprises Limited.

12. STOCKS

Group Parent
2021 2020 2021 2020
£000 £000 £000 £000
Goods for resale 1 6 1 5

36

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

13. DEBTORS

Trade debtors
Amounts due from subsidiary
Other debtors
Prepayments		 Group
2021
£000
2020
£000
65
109
-
-
183
102
81
43
329
254		 Parent
2021
£000
6
3
176
80
265		 2020
£000
91
40
102
42
275

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Fees received in advance
Taxation and social security
Other creditors
VAT
Accruals
Retention: New Residential Blocks
Loan repayments		 Group
2021
£000
219
2,535
-
255
13
263
120
9
3,414		 Parent
2020
£000
2021
£000
330
216
1,601
2,535
-
-
440
156
4
-
594
244
-
120
-
9
2,969
3,280		 2020
£000
330
1,553
-
421
-
571
-
-
2,875

Fees received in advance:

The College academic year begins early in August. At the 31 July 2021 some fees in respect of this new year had already been received. All fees received in advance at the balance sheet date are utilised within the following financial year.

15. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Long Term Loan
Retention: New Residential Blocks		 Group
2021
£000
243
-
243		 Parent
2020
£000
2021
£000
251
243
98
-
349
243		 2020
£000
251
98
349

37

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

16.
FINANCIAL INSTRUMENTS
Group Parent
2021 2020 2021 2020
£000 £000 £000 £000
Financial assets measured at fair value
through statement of financial activities:
Investments 9,703 8,124 9,703 8,124
Financial assets that are debt
instruments measured at amortised
cost:
Trade debtors 65 108 6 91
Amounts due from Group - - 3 40
undertakings
Cash at bank 3,805 4,052 3,695 3,922
Financial liabilities measured at
amortised cost:
Trade creditors (219) (330) (216) (330)
Accruals (263) (594) (244) (594)
The income, expense, gains and losses
in respect of financial assets are
summarised below:
Net gain / (loss) on investments 1,461 (617) 1,461 (617)
Investment income 188 225 188 225
Bad debt expense 122 50 122 50

38

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

17. STATEMENT OF TOTAL RETURNS (ENDOWMENTS)

Calculation of Total Return

Permanent
endowments
Expendable
endowments
At 1 August 2020:
£000
£000
Unapplied total return
1,026
219
Total
1,026
219
Movements in the reporting period:
Investment income
11
23
Investment return: realised and unrealised gains
747
164
Less: Investment management costs
(23)
(6)
Total
735
181
Unapplied total return allocated to income in the
reporting period
-
-
Net movements in reporting period
735
181
At 31 July 2021:
Unapplied total return
1,761
400
Total
1,761
400		 Total
£000
1,245
1,245
34
911
(29)
916
-
916
2,161
2,161

18a. NET ASSETS OF THE FUNDS

Endowment Funds
Restricted Funds
Unrestricted Funds
Parent
Subsidiary’s reserves
Group		 Fixed
assets
£000
Investments
£000
Net current
assets
£000
Long term
liabilities
£000
Fund
balances
£000
-
5,937
-
-
5,937
-
2,121
576
-
2,697
17,599
1,645
105
(379)
18,970
17,599
9,703
681
(379)
27,604
3
-
40
-
43
17,602
9,703
721
(379)
27,647

39

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

18b. ENDOWMENT FUNDS: MOVEMENTS IN THE YEAR

Balance Balance
at 31 July Incoming Resources Investment at 31 July
2020 resources expended Gains/(losses) 2021
Permanent £000 £000 £000 £000 £000
Endowments:
Hugo Gryn 355 - (2) 64 417
Duncan Turner Memorial 1,717 - (10) 309 2,016
Evergreen Scholarship 405 - (2) 73 476
London School of Foreign Trade 243 - (1) 44 286
N & D Hoare 630 - (4) 113 739
Atlantic Appeal Scholarship 552 - (3) 99 648
Scholarship Endowment 30 - - 5 35
AF 77 223 10 (34) 40 239
Expendable Endowments:
Dorothy Burns Trust 544 21 (36) 98 627
Willem Alexander 366 81 (59) 66 454
5,065 112 (151) 911 5,937

The capital of these funds is invested in order to generate income which may be expended by the Charity. During the year £44,569 (2020 - £54,403) was generated of which £nil (2020 - £nil) was transferred to the restricted Bursary Fund.

All expenditure on endowments is restricted to scholarships.

18c. RESTRICTED FUNDS: MOVEMENTS IN THE YEAR

Balance Balance
at 31 July Incoming Resources Investment Transfer to at 31 July
2020 resources expended Gain/(loss) Unrestricted 2021
£000 £000 £000 £000 £000 £000
Bursary Funds 1,500 2,421 (2,494) 124 (0) 1,551
Capital Funds 345 131 (30) 62 (25) 483
Other Funds 239 458 (75) 43 (2) 663
2,084 3,010 (2,599) 229 (27) 2,697

Restricted bursary funds comprise: The Annual Fund, which was set up to receive donations from College alumni who wished to contribute towards the cost of student bursaries. At the 31 July 2021, the balance on the fund was Nil ( 2020 £Nil ). The Annual Fund has been replaced over a three year period by the Essential Atlantic Fund the balance of the fund being £742,580 ( 2020 £452,650 ).

The Sponsors fund receives donations in respect of bursaries raised for specific students. The balance of £749,801 ( 2020 - £986,597 ) at the financial year-end, comprises monies received from sponsors in respect of fees not yet due.

A transfer of £27,000 to unrestricted was due to funds being utilised in line with restrictions for capital expenditure in the year.

40

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

ANNUAL REPORT TO THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

18c. RESTRICTED FUNDS: MOVEMENTS IN THE YEAR (continued)

Restricted Capital funds:

These funds have been donated as contributions towards capital projects.

Other Restricted funds:

These funds have been donated as contributions towards specific operational costs of the College and are applied in accordance with the conditions imposed by the donor.

18d. UNRESTRICTED FUNDS: MOVEMENTS IN THE YEAR

Balance as Corporation Transfer Balance
at 1 August Incoming Amounts Tax, from as at 31
2020 funds expended Pension & Restricted July 2021
As restated Investment
gains
£000 £000 £000 £000 £000 £000
Funds:
General Fund 18,303 10,589 (10,252) 346 27 19,013

General Fund:

This fund represents the operating income and expenditure of the College, together with its fixed assets and liabilities.

19. CAPITAL COMMITMENTS

Outstanding authorised contractual commitments in respect of the student residences capital project as at 31 July 2021:

Due < 1 year £119,873

41

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

20. PENSION SCHEME

Teachers’ Pension Scheme

The College participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £410,047 (2020 – £444,882) and at the year-end there was no accrual (2020 - £Nil) in respect of contributions to this scheme.

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership.

Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

THE TEACHERS' PENSION BUDGETING AND VALUATION ACCOUNT

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

VALUATION OF THE TEACHERS' PENSION SCHEME

As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.

The next valuation is expected to take effect in 2023.

A copy of the latest valuation report can be found by following this link to the Teachers’ Pension Scheme website

SCHEME CHANGES

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, rejected the Government’s application for permission to appeal the Court of Appeal’s ruling and subsequently referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.

42

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Since then, claims have also been lodged against the main public service schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support the delivery of an appropriate remedy for the affected schemes, including TPS.

A final remedy will be determined once the results of the consultation are established.

In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case. In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DofE is currently working to establish what changes are necessary to address this discrimination.

Any impact of these events will be taken into account when the next scheme valuation is implemented. This is scheduled to be implemented in April 2023, based on April 2020 data.

Other staff

For non-teaching staff the College participates in pensions provided by either The Pensions Trust, or, since the implementation of auto-enrolment in April 2014, The National Employment Savings Trust (NEST) scheme which was set up by the government to ensure every employer has access to a highquality workplace pension scheme.

The Pensions Trust

The College participates in The Pensions Trust Retirement Solutions, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The College paid contributions at the rate of 5-10% totalling £94,093 (2020 - £86,295). During the accounting period, members’ contributions were made at 5%, with 46 members at the balance sheet date. At the year-end there was no accrual (2020 - £Nil) in respect of contributions to this scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £799m and liabilities of £832m resulting in a deficit of £33m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

43

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Deficit contributions

From 1 April 2022 to 31 £3,980,000 per annum (payable monthly and with no annual January 2025: increase)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £795, liabilities of £926m and a deficit of £132m. To eliminate this funding shortfall, the Trustee had asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 31 £11,243,000 per annum (payable monthly and increasing by January 2025: 3% each on 1st April) From 1 April 2016 to 30 £12,945,440 per annum (payable monthly and increasing by September 2025: 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

44

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

PRESENT VALUES OF PROVISION
31 July 2021
£000
31
Present value of provision
136
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Provision at start of year
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in
assumptions
Remeasurements - amendments to the contribution
schedule
Provision at end of year
INCOME AND EXPENDITURE EFFECT
Interest expense
Remeasurements – impact of any change in
assumptions
Remeasurements – amendments to the contribution
schedule
Costs recognised in income and expenditure account		 July 2020
£000
31 July 2019
£000
171
204
Year
Ended
31 July
2021
£000
Year
Ended
31 July
2020
£000
171
204
1
1
(36)
(35)
-
1
-
-
136
171
Year
Ended
31 July
2021
£000s
Year
Ended
31 July
2020
£000s
1
1
-
1
-
-
410
445

45

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

20. PENSION SCHEME (continued)

Assumption

31 July 31 July 31 July
2021 2020 2019
% per % per % per
annum annum annum
Rate of discount 0.57 0.60 1.00

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

National Employment Savings Trust

The College also participates in the National Employment Trust (NEST) Pension scheme, a multiemployer defined contribution (money purchase) scheme which was set up by the government in support of auto-enrolment to ensure every employee has access to a high-quality workplace pension scheme. The overall scheme has net assets under management of £17.6bn as per the 2020/21 Annual Report.

Employees are able to select between the NEST scheme and the Pensions Trust scheme upon starting their employment and may elect to change at any time. Those who are members of the NEST scheme contributed 5% (employee contribution), with an employers’ contribution of 5%.

The pension charge for the year includes employer contributions payable to the NEST schemes of £53,838 (2020 – £45,787) there were 48 members at the balance sheet date. At the year-end there was no accrual (2020 - £nil) in respect of contributions to this scheme.

21. LEASE COMMITMENTS

At 31 July 2021, the Group had future minimum lease payments under non-cancellable operating leases are:

leases are:
Plant and Machinery
2021 2020
Total commitments under non-cancellable leases are: £000 £000
Within 1 year 33 60
In 2 to 5 years 11 46

22. RELATED PARTY TRANSACTIONS

United World Colleges International

The United World College of the Atlantic Limited (Atlantic College) is one of sixteen colleges worldwide which together are represented by the United World Colleges International (UWCI) movement.

Driek Desmet and Jill Longson act as members of the UWCI board.

Each of the Colleges contributes to the running costs of the International office. In the year to 31 July 2021 Atlantic College contributed £304,830 (2020 - £203,084).

46

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

23. PRIOR YEAR ADJUSTMENT

It was discovered that due to timing differences, a donation was included as funds received in advance in 2019/2020 that did not relate to that financial year. As a consequence, current liabilities were understated and the Statement of Financial Activities overstated.

As a result, the adjustment to the prior year is a reduction in donation income and increase in short term creditors of £174k.

24. PRIOR YEAR RESTATED – CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTS)

Unrestricted Restricted Endowed Total Total
Funds Funds Funds 2020 2019
Note £000 £000 £000 £000 £000
Income and endowments from:
Donations - 3,222 60 3,282 2,814
Charitable activities 4 9,864 - - 9,864 9,811
Other trading activities 5 230 - - 230 279
Investments 6 32 139 54 225 259
Other 7 390 - - 390 166
Total 10,516 3,361 114 13,991 13,329
Expenditure on:
Raising funds 8 (616) (15) (28) (659) (849)
Charitable activities 8 (8,716) (2,669) (92) (11,477) (11,328)
Other 8 (484) - - (484) (380)
Total (9,816) (2,684) (120) (12,620) (12,557)
Net (loss)/gains on investments - (218) (399) (617) 138
Net income 700 459 (405) 754 910
Corporation Tax (6) - - (6) -
Gains on defined benefit pension 21 33 - - 33 55
scheme
Transfer between Funds 2,173 (2,173) - - -
NET MOVEMENT IN FUNDS 2,900 (1,714) (405) 781 965
Fund balances at 1 August 2019 15,403 3,798 5,470 24,671 23,711
FUND BALANCES AT 31 JULY 2020 19 18,303 2,084 5,065 25,452 24,676

47

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

25. PRIOR YEAR RESTATED – NET ASSETS OF THE FUNDS AS AT 31 JULY 2020

Endowment Funds
Restricted Funds
Unrestricted Funds
Parent
Subsidiary’s reserves
Group		 Fixed
assets
£000
Investments
£000
Net current
assets
£000
Long term
liabilities
£000
Fund
balances
£000
-
5,065
-
-
5,065
-
1,271
813
-
2,084
16,499
1,788
514
(520)
18,281
16,499
8,124
1,327
(520)
25,430
6
-
16
-
22
16,505
8,124
1,343
(520)
25,452

25a. PRIOR YEAR – ENDOWMENT FUNDS: MOVEMENT IN THE YEAR

Balance Balance
at 31 July Incoming Resources Investment at 31 July
2019 resources expended Gains/(losses) 2020
Permanent £000 £000 £000 £000 £000
Endowments:
Hugo Gryn 417 - (32) (30) 355
Duncan Turner Memorial 1,862 - (9) (136) 1,717
Evergreen Scholarship 440 - (2) (32) 405
London School of Foreign Trade 264 - (2) (19) 243
N & D Hoare 683 - (3) (50) 630
Atlantic Appeal Scholarship 599 - (3) (44) 552
Scholarship Endowment 33 - - (3) 30
AF 77 225 16 (1) (17) 223
Expendable Endowments:
Dorothy Burns Trust 591 27 (33) (42) 544
Willem Alexander 356 71 (35) (26) 366
5,470 114 (120) (399) 5,065

25b. PRIOR YEAR RESTATED – RESTRICTED FUNDS: MOVEMENTS IN THE YEAR

Balance Balance
at 31 July Incoming Resources Investment Transfer to at 31 July
2019 resources expended Gain/(loss) Unrestricted 2020
£000 £000 £000 £000 £000 £000
Bursary Funds 1,614 2,621 (2,595) (59) (81) 1,500
Capital Funds 2,087 442 (79) (152) (1,953) 345
Other Funds 97 298 (10) (7) (139) 239
3,798 3,361 (2,684) (218) (2,173) 2,084

48

UNITED WORLD COLLEGE OF THE ATLANTIC LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

25c. PRIOR YEAR - UNRESTRICTED FUNDS: MOVEMENTS IN THE YEAR

Balance as Balance as Corporation Transfer Balance
at 1 August Incoming Amounts Tax, from as at 31
2019 funds expended Pension & Restricted July 2020
Investment
gains
£000 £000 £000 £000 £000 £000
Funds:
General Fund 15,403 10,516 (9,816) 27 2,173 18,303

49