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2024-07-31-accounts

NEW COLLEGE LANARKSHIRE NCL SrnglryEducOdonC￿PT Regional Financial Statements Year Ended: 31st July 2024 Th Lanarkshire Board SLC

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

Contents
Performance Report
Introduction and Performance Overview
Performance Analysis
Accountability Report
Corporate Governance Report
i. Directors’ Report
ii. Statement of Board of Management/Board Responsibilities
iii. Governance Statement
Remuneration and Staff Report
Independent Auditors Report
Financial Statements
Consolidated and College Statement of Comprehensive Income
Consolidated and College Statement of Changes in Reserves
Consolidated and College Statement of Financial Position
Consolidated Statement of Cash Flows
Notes to the Financial Statements		 Page
3
15
43
43
46
48
58
66
70
71
72
73
74

Page 2 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT

Introduction and Performance Overview

Following the requirements of Financial Reporting Standard 102 (FRS102) and the powers enshrined in the Lanarkshire Colleges Order 2014, Regional Financial Statements are required to be prepared by New College Lanarkshire (NCL), being the Regional Strategic Body (RSB) for Lanarkshire. Under the Order and determination of accounting standards, the RSB deemed it had the power to control the assigned College, South Lanarkshire College (SLC) during the year to 31[st] July 2024 triggering the requirement for consolidated Regional Financial Statements under FRS102. The Financial Statements also require the consolidation of Amcol Scotland Limited, a provider of Nursery Education and being a 100% subsidiary of NCL. In these Financial Statements the “College” heading refers to NCL and the “Region” heading refers to consolidated figures for NCL, SLC and Amcol Scotland Limited.

The Board of Management thereby presents its audited Regional Financial Statements for the year ended 31[st] July 2024. The Financial Statements consist of the Annual Report and Accounts. The Annual Report consists of a Performance Report, an Accountability Report and where relevant, a Parliamentary Accountability Report. The Overview section of the Performance Report sets the context, background and environment in which the RSB operates. This aids alignment between the Performance and Accountability sections of the Financial Statements.

The Statements have been prepared in accordance with the Government Financial Reporting Manual (FReM), the Scottish Public Finance Manual (SPFM) and the Statement of Recommended Practice for Further and Higher Education (SORP). In July 2021, the FE HE SORP Board published FE/HE SORP Guidance Note 2021. The amendments made to the 2019 SORP by the guidance are applicable for accounting periods beginning on or after 1 January 2021 and the guidance must be read in conjunction with the 2019 SORP. The 2019 SORP reflects any further changes to UK Generally Accepted Accounting Practices (GAAP) following the issuing of FRS 100, 101 and 102.

The Overview section sets the context, background and environment in which the RSB operates. This aids alignment between the Accountability and Performance sections of the Financial Statements.

The Region consists of three registered charities, NCL (SC021206), SLC (SC021181), and Amcol Scotland Limited (SCO39758). All are recognised by the Office of the Scottish Charity Regulator (OSCR) and bound by the Charities and Trustee Investment (Scotland) Act 2005. Amendments to the 2005 Act are made by Part 9 of the Public Services Reform (Scotland) Act 2010. A copy of the audited financial statements for SLC may be found on their website, and for Amcol Scotland Limited, audited financial statements are available from Companies House.

Legal Status

In 1992, Parliament enacted the Further and Higher Education (Scotland) Act, which resulted in 43 Colleges of Further Education being taken out of Local Authority control and becoming self-governing Further Education Colleges. The control of the Colleges passed to the Boards of Management with the Principals as Chief Executives.

On 1[st] June 1999, the Scottish Parliament established the Scottish Further Education Funding Council (SFEFC), who assumed direct control over the funding and strategic direction of the Further Education College sector. Under the Further and Higher Education (Scotland) Act 2005 the SFEFC was dissolved, becoming the Scottish Further and Higher Education Funding Council by merging with the equivalent Higher Education Funding Body. The Scottish Funding Council (SFC) is the abbreviated body.

Page 3 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

In October 2010, the UK Office for National Statistics (ONS) reclassified incorporated Further Education Colleges throughout the UK so that they would be treated as part of central government for financial budgeting and reporting purposes. ONS reclassification of incorporated Scottish Colleges as central government entities became effective from 1[st] April 2014.

On 7[th] August 2013, the Post-16 Education (Scotland) Act 2013 provided the legislative structure to support the regionalisation of the College sector, including the creation of RSBs and Boards in the three multi-College regions. On 1[st] October 2014, NCL was designated the RSB for Lanarkshire and SLC was assigned to NCL. From that date, the NCL Board (the Lanarkshire Board) assumed all of the responsibilities of the RSB for the region.

In a letter dated 7[th] July 2016, the SFC confirmed that NCL, as the RSB, would be the single fundable body for Lanarkshire from 1[st] August 2016 and consequently receive all the SFC funding directly for the region. The College Board of Management, the Lanarkshire Board, would in turn be responsible for the distribution of SFC funding to SLC as the assigned College.

Performance Overview

The Performance Overview section of this report, with the Chief Officer’s Statement on Performance provides a high-level overview and understanding of the Lanarkshire Colleges, our Strategies and Purpose, our Values and the principal risks we face.

Chief Officer’s Statement on Performance

Session 2023/24 was a difficult year for Colleges in Scotland. Severe limitations on funding for the sector served to intensify the challenges associated with the on-going national pay dispute. New College Lanarkshire was not immune from these difficulties but the harsh operating conditions did not inhibit the further development of our Institution. Collectively, we made important advances and maintained a clear commitment to improving the capability and capacity of New College Lanarkshire; changes that will service us well in the future.

The College faced significant financial pressure during the period. Inflation remained high and direct funding allocations were not generous. Consequently, and yet again, the College was required to deploy a range of cost removal or reduction measures and necessitated the implementation of a Voluntary Severance Scheme (VSS). A total of 53 colleagues left the Organisation and all of the costs associated with servicing the Scheme were met directly by the College. The resultant payroll savings are expected to be £1.4m going forward.

Despite these difficult financial circumstances, I am pleased to report that the NCL Group (NCL plus subsidiary Amcol) secured an underlying operating surplus of £284k for the year and combined with the £378k surplus achieved by South Lanarkshire College, (SLC) this has resulted in a £662k underlying operating surplus for the Lanarkshire Region. This position was secured as a result of the concerted effort of the communities at South Lanarkshire College and New College Lanarkshire and from the helpful direction provided by SLC’s Board of Management and the Lanarkshire Regional Board. I am hugely grateful to everyone for their contribution.

I can also report that New College Lanarkshire not only met its SFC Credit target for the year but exceeded it by 304 Credits. This strong performance is a clear indication that the College continues to successfully meet the educational requirements of the people of Lanarkshire, and beyond.

We continued to invest in our physical and technical infrastructure spending circa £3m on critical projects including the upgrade of our main College Server, Storage and Backup infrastructure (replacing critical equipment that was over 10 years old). We invested in the digital classroom experience by replacing 630 PC stations, creating four new CAD labs and the establishment of a new eSports Lab at our Motherwell campus.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Our principal purpose is the provision of relevant, high quality education and the strength of our work was recognised by Education Scotland in their Annual Engagement Visit Report in March 2024 and the Education Scotland Care Thematic Review. But we also recognise that progress needs to be made in order to reduce our levels of student withdrawal, particularly among our full-time Further Education cohorts. Throughout the session, the College has engaged extensively with students to gain a clear insight of the actions that we can take to better support our students to successfully remain in education. We now have a comprehensive strategy that is focused upon student retention and success.

Our strategic commitment is to “Bring Education Closer” but recognising the significant limitations associated with insufficient funding support from Government, the College launched two major income diversification initiatives. The first was the launch of an Undergraduate School at the College in partnership with the University of the West of Scotland. Through the development of six new degrees, exclusively available at NCL, the Undergraduate School will facilitate access to higher education in discipline areas that are closely aligned to the area’s skills need and employment opportunities. The second was the initiation of “The Learning Well” project, an online learning platform that will host the delivery of an undergraduate degree in Business and Leadership. This new venture will launch in February 2025. The Learning Well will significantly support the geographic and subject / programme reach of NCL in the future.

The College successfully secured £196k in funding from the UK Research and Innovation Fund to lead on the creation of a Centre for Digitally Enabled Health. The funding is in place until 31 March 2025 and the initiative provides an invaluable opportunity for NCL to gain profile and delivery experience within this crucial area. Grant income was also secured from the UK Shared Prosperity Fund with £280k allocated to support the development of the NCL Advanced Manufacturing Hub from April 2024 until March 2025.

Session 2023/24 marked the 10[th] anniversary of the establishment of New College Lanarkshire and we marked the occasion with the inaugural NCL Schools prize for STEM and the Arts. The response from schools in the North Lanarkshire area was remarkable and with the welcome support of Cumbernauld-based rocket company, Skyrora, we are confident that the prize will become an important method for us to support and celebrate the talent of young people in our area. In a similar vein, we were delighted that our Fellow, the renowned actress Elaine C Smith, inaugurated a prize in her name to support women into acting. We were also pleased that students from our Support for Learning Department won a National Fair-Trade Award for their campaigning work. Further, and to coincide with our anniversary year, we launched our new website and an accompanying brand film, as part of our investing in our digital brand identity.

I am pleased to report the excellent performance of South Lanarkshire College in Session 2023/24. SLC continues to be one of Scotland’s top performing colleges as evidenced by Education Scotland in the Annual Engagement Visit Report in July 2024, the Education Scotland Care Thematic Review and by its performance indicators. For FEFT provision SLC sits in third position for national performance outcomes for academic session 2023/24. Given the volume of FT FE students (1,105) and the comparative scale of SLC, this is a significant achievement. As has been the case for the past decade, SLC fully met their Credit target for session 2023/24.

South Lanarkshire College was the first UK college to be awarded the Emily Test Charter and secured re-accreditation as a Disability Confident Employer and retaining the Investors in People accreditation. Further, SLC achieved “We Invest in Well Being” Platinum accreditation, too. Significantly, the SLC meet all of the key target for carbon management and successfully established an Innovation Centre for Sustainable Development. The mission of the Centre is to foster and suport effective partnership with local buinsesses and authorities as part of the College Partnerships West Collective.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

These many developments achievements, commendations and awards are a powerful testament to the resilience, calibre and talents of our students and of the expertise and dedication of the staff at both South Lanarkshire College and New College Lanarkshire.

While having to face often turbulent operating conditions, the communities of both Institutions have demonstrated outstanding professionalism and commitment for which I am immensely proud and grateful.

PERFORMANCE OVERVIEW

Lanarkshire is the second largest college Region in Scotland in terms of population, comprising the Local Authority areas of East Dunbartonshire, North Lanarkshire and South Lanarkshire and is only 30 minutes by road from Glasgow city centre and 40 minutes from Scotland’s capital, Edinburgh. Its population exceeds 760,000.

New College Lanarkshire and South Lanarkshire College work in partnership with the three Councils through Community Planning Partnerships and our schools/colleges programmes as well as other key strategic groupings in the local authority areas such as the local authority economic growth board and task forces to support sustainable local economic growth.

Key priority sectors in Lanarkshire include Health and Social Care, which holds 19.6% of total employment. This is followed by Construction at 13%, Engineering at 5% and Tourism at 4.5%. Key areas of specialism within the Region include Civil Engineering as the percentage of employment is three times the national average.

Lanarkshire Employment Rate Summary (2024)

North Lanarkshire

South Lanarkshire

Overall, North Lanarkshire has seen improvements in employment and reductions in unemployment and economic inactivity, while South Lanarkshire has experienced a slight decline in its employment rate.

Regional Skills Assessments have shown that, between 2021/2024, Lanarkshire saw the emergence of 36,800 job openings, however labour shortages complicated these due to industry’s need for higher level qualifications: 22% SCQF 5, 14% SCQF 6 and 44% SCQF 7-10. 7% of people in Lanarkshire hold no qualifications. There is an identified demand for meta skills with the requirement that 74% of employees should be reskilled in areas such as complex analytical skills (40%), operational skills (54%) and digital skills (50%). Staff working in the Lanarkshire Colleges are very aware of the financial difficulties students and their families are experiencing. The Joseph Rowntree Trust report 2024 report[3] showed that nearly a third of all children in the UK are now living in poverty, including 700,000 young people aged 15-19 in education or training.

2 https://www.ons.gov.uk/visualisations/labourmarketlocal/S12000029/

3 Joseph Rowntree Foundation (2024) UK Poverty 2024: The essential guide to understanding poverty in the UK | Joseph Rowntree Foundation (jrf.org.uk)

1 (https://www.ons.gov.uk/visualisations/labourmarketlocal/S12000050/)

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Work undertaken by National Union of Students (NUS) 2023[4] exemplifies the increasing concern experienced in relation to finance: over half (52%) of students surveyed have skipped a meal because of lack of money; 45% have gone without heating; and 35% have been unable to pay their rent in full. Money worries also has a significant impact on mental health and students from widening access groups are more likely to be impacted and more than a third of students have contemplated leaving their course because of financial difficulties including not having enough money from their loan or bursary and worries about the rising cost of living.

There are significant challenges to closing attainment gaps for children who turn up at school or college from damp or temporary homes and without food in their stomachs. Poverty becomes the enemy of opportunity: talent and potential are wasted in its wake.[5] Despite all the additional provision provided by the colleges such as “breakfast on us” and food pantry, students will continue to be at risk of early withdrawal or fail to reach their full potential.

The Scottish Index of Multiple Deprivation (SIMD) 2020 is a relative measure of deprivation across 6,976 small areas (called data zones). If an area is identified as ‘deprived’, this can relate to some people having a low income but it can also mean fewer resources or opportunities for the people who live there.

In North Lanarkshire, 35% of data zones are within the 20% most deprived communities in Scotland. This share has increased since the 2016 SIMD[6] . Across North Lanarkshire, 50,897 (15%) people are income deprived and in comparison, the Scottish average is 12%.

The needs of the key priority sectors within Lanarkshire alongside the ambitions of the Region’s population provide Lanarkshire’s colleges with the opportunity to significantly improve its communities. Although the challenges faced by individuals and groups are many and considerable, the strategies and purpose outlined below provide the clear direction towards a better future for the Region.

Our Strategies and Purpose

In alignment with Strategy 2025 and the Financial Recovery Plan (The Forward Plan), the College endeavours to produce a balanced budget and manage its cash resources and asset portfolio appropriately to arrive at medium-term Financial Sustainability, in particular bringing resource close to the student. To arrive at this position, the College plans to arrive at medium-term financial sustainability through focusing on improvements in resource and curriculum planning, further cost control measures in non-staff expenditure and increasing other income streams. Benefits from the Staff Development Academy will include upskilled, reskilled and flexible staff.

The vision of the Lanarkshire Colleges is to be Scotland’s leading providers of College education and training, recognised for our achievements in empowering people and enriching lives through learning.

Our purpose is to ensure students across our region are well prepared for the future by providing innovative, high quality, relevant learning for careers, life and success; and to support the people, business, economy and sustainable development of Scotland.

4 NUS Cost of living Crisis presentation reduced.pdf (nationbuilder.com)

5 Joseph Rowntree Foundation (2024) UK Poverty 2024: The essential guide to understanding poverty in the UK | Joseph Rowntree Foundation (jrf.org.uk) 6 Scottish Index of Multiple Deprivation (SIMD) 2020 | North Lanarkshire Council

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Our Strategic Priorities

  1. Inspirational Learner Journey: Empower people and enrich lives through learning.

  2. Develop & Nurture: Innovate and grow together to realise ambition.

  3. Effective & Efficient: Intensify the drive for excellence, equity and socio-economic impact.

  4. Strong & Sustainable: Provide financial security, value for money and a sustainable built environment.

  5. Successful Students: Outcome focussed; people centred organisation.

  6. Highest Quality Education and Support: Curriculum is well designed, employment focussed and influenced by local and national policy.

  7. Sustainable Behaviours: Environmentally sustainable behaviours, excellent governance, robust leadership and management and being financially secure.

Central to this are our Colleges’ commitment to Science, Technology, Engineering and Mathematics (STEM) development strategies that direct a partnership approach with industry and business that will strive to ensure the supply of a skilled, knowledgeable and work ready workforce. We continue to invest in vocational areas where there is identified demand.

In the Lanarkshire Region a number of initiatives have been developed to promote effective employer engagement. The development of an Apprenticeship Strategy and related Foundation Apprenticeship (FA), Modern Apprenticeship (MA) and Graduate Apprenticeship (GA) frameworks ensures that the Colleges, using their expertise and knowledge of local industry are in a position to assist employers with a cost-effective approach when delivering Apprenticeship training.

Skills provision that meets the occupational requirement for our region is continually evaluated and reviewed as part of our Regional Outcome Agreement (ROA) process. This culmination of a continuous curriculum and service review encompasses regional and national monitoring, evaluation and planning.

We aim to address the provision of skills within our strategy but in particular through our Senior Phase Vocational Pathways (SPVP) and STEM development strategies and through specialist vocational provision, the overwhelming majority of which is delivered in consultation and partnership with employers, local authorities, and universities. Hosting STEM-focussed school events has been a highly successful approach in raising awareness of STEM development approaches.

Skills development for employability and customer-focussed skills continues to grow within our vocational specific programmes and as part of our “employability” and “workforce development” programmes that intend to meet strong demand from customer service sectors. The highest employment opportunities for the future are within Construction and Health and Social Care. Demographic changes, potential reduction in the current care workforce, an increasing demand for health and social care workers, alongside a continuing need for health professionals, and a national need for the expansion of Childcare ensures our focus on continuing innovation and the high proportion of delivery in Health, Care, Early Learning and Childcare.

Tackling gender imbalance within certain College/Modern Apprenticeship subjects will become an even more intense regional focus. Many of these imbalances have persisted over time but much is being done and more will be done to break perceived stereotypes by working proactively in partnership with schools, pupils, parents, industry and our local communities.

Underpinning all of this ambition are measures to ensure the best opportunities for all our students by committing to significantly reduce withdrawals from our programmes and to increase the numbers of students achieving recognised qualifications across all underperforming areas.

We are passionate about what we do and we will continue our drive to foster ambition, creativity and innovation in pursuing excellence, equity and impact.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Regional Risk Management

Principal Risks Affecting the Region

The Lanarkshire regional risk management strategy is to adopt best practices in identification, evaluation and cost-effective control of risks to ensure that they are eliminated or reduced to an acceptable level within the available funding. It is accepted that some risks will always exist and will never be eliminated.

Regional Risk Management Organisational and Reporting Structure

We continue to embed a strategic risk management process which is relevant, effective and efficient, reflects organisational need and cultivates an organisational culture that treats risk management as a real time and dynamic process.

Risk is managed at three main levels - Regional strategic risk; College institutional risk; and College operational/project risk. Escalation of risks between these levels is facilitated through the Lanarkshire Regional Strategic Risk Management Framework as shown. Communication of requirements, development and change is actioned by the Regional Strategic Risk Management Group (RSRMG) under the direction of the Regional Strategic Body (The Lanarkshire Board). Roles, responsibilities, communication and reporting with respect to the RSB, Senior Management Teams, the RSRMG and staff are clearly set out within the Lanarkshire Regional Strategic Risk Management Framework. The RSRMG reports to the RSB through its Audit & Risk Committee and the efficacy of this process is monitored through the annual self-evaluation process.

Page 9 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued The Regional Strategic Risk Management group have identified 20 risks as part of their ongoing risk monitoring process. Of these risks, 2 are graded high or very high.. Inability to maintain operating budgat while dolivering high quality, relevant and r8sponsiv education,. Inability to secure appropriate levels of funding to respond to operational and strategic priorities. The management and mitigation against these risks fornis a significant part of the work of the Regional Strat8gic Board and Collège Sènior Manag8m•nt. Funding for th8 Collegè sector rèmains challénging and uncertain and financial risks are considered likely to be the most significant risk factor in the near future. A wide range of mitigation5 are in place including ongoing work to achieve efficiencie5, control budgets and socuré additional income through nèw stratègic proi8cts includingth8 Undergraduatè School and Thè Learning Well. ResSdual Rlsk5 Graded Hlgh OT Very Hlgh at Yoar-End RSsk LSkollhood lrnpact Rlsk Scoro Mltlgatlons In plKe R¢$ldu41 Rl•k Swre Unable to maintain operatin8 budget while delivering high qualitv, relevant and r8sponsive education, Inability to $•¢ur• appropriate l•vals of funding to respond to opèration81 and strate riorities. 25 20 25 20 Goln8 Concern Stat8rn8nt Having considered all relevant internal and external factors includin8 the Audit Scotland guidanco on Goin8 Concern in the Public Sector, and putting in place planning mitigations, the Board of Management is satisfied that the Region has adequate resources and funding support to continu• in operation for the foreseeable future, For this reason, the Going Concern basis continues to be adopted in the preparation of Financial Statemonts. The RSB continues to report a not assot position. Tho Board continues dialogue with the SFC regarding Credit delivery, Cash Flow and Financial Sustainability, taking mitigating action as appropriate given that inflationary increases on salaries and operating costs cannot bo cov8r8d by "flat.cash" funding. NCL reports it plans to arrivè at medium-term financial sustainability, through focusing on improving Èfficièncy in resource and curriculum planning, furthor cost control measures in staff and non-staff expenditure and turther growth in current and alternative income streams. A Forward Plan has been presented to the SFC and closa dialogue continues with a continuous monitoring of cash balances, reviewing regularly with the SFC to ensure cash pressura points aro highlighted and support agreed in advance where necassary. Page 10 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Shaping a Sustainable Estate

The NCL Estates Action plan covers a 3-year period from 2023 to 2026. Written in 2023, this strategy updates and supersedes the 2018, 10 Year strategic outlook.

Preparation of the Estates Action Plan is an integral part of our strategic planning process and is informed by NCL values and the Estates strategic plan as well as other curriculum strategies that outlines current requirements of a sustainable College.

A sustainable Estate is our key objective and we seek to match our physical accommodation and facilities with our education and community needs and objectives. These needs and objectives are not static and we will be responsive to the continually evolving needs of the curriculum and learners, local skills and communities, and the College’s own values.

Our 10 Year plan for Net Zero and Carbon Management Plan commits NCL to develop sustainable management practices and outcomes by working towards achieving the following objectives:

To ensure NCL contributes to public sector leadership in this effort, we adopt the following minimum targets and dates:

Page 11 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued Carbon Reduction and Net Zero Tar ets During the period 2023 to 2033 we will plan to reduce our carbon footprint by 70%17%1Annuml Net zero Target of Approximately 950 tC02e from our 2018119 output lavals of 3022 tC02e. Oata from 2019120 onward has baen affected by COVID and is not rèpr8sentativ8 of nomial oparations. Roforenco Yoar Year Yeaf Typo Scopo 1 Scope 2 Scope 3 Total Unlts Year I carbon footprint Year 2 carbon footprint Year 3 carbon footprint Year 4 carbon footprint Year 5 carbon footprint Year 6 carbon footprint Yèar 7 carbon footprint Year 8 carbon footprint 2016117 Académic 1,455 1,407 654 3,516 tC02¢ 2017118 Academic 1,576 1,515 229 3,320 tC020 2018119 Academic 1,425 1,372 225 3.022 tCO20 2019120 Academic 1,302 1.139 172 2.613 tCO2e 2020121 Academic 1,447 967 245 2,659 tCO28 2021122 Academic 1,462 732 141 2,335 tCO20 2022123 ademic 1,106 1,184 124 2,414 tCO2e 2023124 Academic 1,028 I,ioi 115 2,244 tC02¢ Forecast We will set an interim target to 2027 of maintaining post pandemic levels while an increase in Colle8e population is oxpectod, thu5 no higher than 20C￿ tC020 per annum- Tha College has commitm•nt to the EAUC Strat•8y for 'Net Carbon Z•ro' by 2040 and w• will follow th• guidance provided, The Climate Change (Scotlandl Act 2009 $et ambitious Carbon reduction targets, with Part 4 of the Act placing duties on Public Bodies, and identifying Colleges as having. a kay role to play in addressing climate chang8. They havtr Much to Contribute to understanding of climate Change and sustainable development through their primary role as educators, skills trainers and r8search8rs" Page 12 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued In recognition of this, our Governance and their roles to influence and lead on wider community and social initiativès falls within the Public 8odios Climato Chango Dutiès and in practic8, spècific guidalines fall to.. Entlty Name Functlon NCL Board of Managemant Strategic Guidance Signatoriès forGlobal and Regional Inclusion Influènc8 and lead NCL Guidanc Funding Carbon Policy Approval Funding Planning and Strategy Approval Lanarkshire College Regional Board of Managemant NCL Executive Board RGP Carbon Management Toam Policy Implémèntation R•porting Ilnternally & Externally) Monitoring energy Project Management EAUC Advisory Bodv Steering Planning Guidance NCL have ¢stablish¢d a Sustainability Committee which Supports the roll out of our carbon management plan and Net Zero roadmap for tackling the climate emergency. The Committee meets quartarly and discusses emerging regulatory requirements in terms of targets, costs and classifications of risks and mitigating factors for actions associated with our Not Zero journey. Wher8 significant risks emerge such as 8n8rgy and zero waste, further sub groups have been d•veloped to look at these risks as well as procurement decisions and frameworks as a result of risk mitigation. This leads to inforni8d and collective decisions on internal and supply chains to ensure a continuation of Net Zero methodologies and commitments from suppliers. Our work in the Committee identifie5 emerging climate risk5 that directly or indirertly affect the College. with energy and wastè being somè of the largest Sl8nificant factors, decisions are mad8 to managè energy more effectively and introduce short life working groups to tackle winter energy use. Our Estates department recently introduced waste r8cyclin8 centres throughout tho Collego is as a dir8Ct result of Committee discussions and data analysi5. Our Head of Estates (Sustainability Lead) complete5 the annual Public Bodies Climate Change Reporting Duties IPBCCRDI and through this report further developments are highlighted for implementation the following year. Page 13 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Adjusted Operating Position (AOP)

djusted Operating Position (AOP)
Surplus/(Deficit) before other gains and losses
Depreciation (net of deferred capital grant release)
(note 11, 17)
Impairment of assets on revaluation (note 11)
Pension adjustment – FRS102 staff cost adjustment
(note 7, 24)
Pension adjustment – Net interest (note 6, 9, 24)
Non-cash early retirement adjustments (note 16)
Job Evaluation provision (note 16)
Adjusted operating surplus/(deficit)
% of Total expenditure		 Region
2024
£’000
(6,090)
1,228
258
266
3
(507)
5,504
662
0.82%		 College
2024
£’000
(4,911)
348
106
214
2
(461)
4,459
(243)
-0.43%		 Region
2023
£’000
Restated
(5,699)
1,510
-
1,329
(575)
(15)
-
(3,450)
-4.04%		 College
2023
£’000
Restated
(5,079)
855
-
1,014
(496)
79
-
(3,627)
-5.89%

The College (NCL) plus its direct subsidiary Amcol made a combined AOP of £284k before gain on sale of assets (2022/23 deficit £3,196k).

Review of Regional Cash Budget for Priorities Spend for year ended 31[st] March 2024

One consequence of College reclassification as central government bodies is that, from 1[st] April 2014, while Colleges continued to prepare accounts under the FE/HE Statement of Recommended Practice, they are now also required to comply with the Central Government budgeting rules. This affects, amongst other things, the way in which non-cash depreciation charges are treated for budgeting purposes and how the Colleges spend the Cash Budget for Priorities funds previously earmarked for depreciation. There is a potential for this spend to move the Colleges Statement of Comprehensive Income into a deficit position (or increase an existing deficit).

For the Financial Year 2023/24, this meant that the RSB received cash of £1,060k (2022/23 £1,060k) which had been earmarked against net depreciation, impacting upon the Consolidated Statement of Comprehensive Income. Without approval to spend this cash it would have been effectively frozen. The SFC issued guidance to the sector on this matter on 30[th] January 2015 (SFC/AN/03/2015), and subsequently, which provides approval for that cash to be applied to student support, loan repayments, elements of National Bargaining and other pay increases, and to deliver improved services to learners.

The impact of the above has contributed £1,060k as a cost before other gains and losses for the 2023/24 accounting year (2022/23 £1,060k). However, the SFC has confirmed (in its letter to the sector on 30[th] March 2015) that a deficit resulting from a College following its 30[th] January 2015 guidance should be treated as a “technical” deficit and should not be interpreted, on its own, as a challenge to a Colleges ongoing financial sustainability. Audit Scotland accepts that a deficit arising from the use of cash funding originally provided for Cash Budget for Priorities depreciation does not constitute an underlying financial sustainability concern.

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New Colle e Lanarkshire PERFORMANCE REPOR T continued The impact on the operating position is detailed below. 2024 2023 Revenue Student support Pay award Other element5 of pay award and increa50 in pension contribLrtions Estates costs Total Impart on RDEL op•ratlng posltSon 401 401 659 659 Total cash budget for prlorltl•s spend SUMMARY KEY PERFORMANCE INDICATORS Indlcatlv• Colleges Outcom8s for FE and HE on Reco8nSs•d Quallflcatlons 2023124 Cornpl•t•d Su¢c•ulully NCL SLC 51.13% 69.2% 73.8% 84.1% 56.61% 68,3% 67.24% 78.5% P•rtl•l Su¢¢•¥s NCL 5LC 13.48% 7.09% 11.36% 8.46% 16.01% 13,51% 8.76% 12.15% FEFT FÉPT HE HEPT Both NCL and SLC a¢hi¢ved the tsrgeted Credit outturn.. NCL delivorod a total of 117,592 Credit$110),26% of targat 117,2881 and SLC delivered 44,0771101.9% of target 43,6011. Further detail is outlined in the Performanc8 Analysis section bolow. PERFORMANCE ANALYSIS Tha Performance Analysis Section of this report provides a groater level of detail and information on the work and performancè of thè Collèges in the 2023124 acadèmic year. This will covÈr thé key areas of Recruitment, R•tontion and Outcom8s. drilling into subcategorios to illuminat8 Coll•80 porformance. 2023124 was a significantly challenging year with national disputes and funding contraction posin8 serious challenges to everyday core business including learning, teaching and assessment. Despite these factors, in 2023124, NCL met its Credit target with a total of 117,592 Credits1100.26% of its target 117,2881. It also achieved its key aim of improving FE￿ ratantion. Although outcomes for both FEFT and HEFT are lower than 2022123, largely as a consequence of the impact of industrial action in 23124, full time student performance was better than 2021122. NCL'S ratention strategy is improving the College's KPI trand and with continued innovation and embedding, the strategy will benefit future students with fewer unique national barriers and constraints affecting coordinated efforts that will put students at the centra of all NCL activity. Cate Ke Further Education Full fime IFEFTI Further Education Part Time IFEPTI Higher Education Full Time IHEFTI Highèr Education Part Timè IHEPTI Page 15 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

KPI Key

Early Withdrawals: Withdrew prior to SFC funding cut-off (week 5 in most cases).

Excluded from KPI: There are a range of conditions for students and courses where SFC define them as not to be included in KPIs. e.g. students who enrolled but never attended, courses which are not designed to be assessed, students who transferred to another course before the required date etc.

Further: Further withdrawal indicates that the student attended after the funding qualifying date but withdrew from their studies before the programme ended.

Partial: indicates that the student completed the programme but did not gain the qualification. This could mean that the student has passed all units except one; or did not pass any units at all. It is generally accepted, however, that the student will have gained some benefit from completing their studies.

Success: indicates that the student has completed the course year.

Unknown Result: result not yet entered

Foundation Apprenticeship (FA) Modern Apprenticeship (MA)

Volume of Learning Delivered

The Scottish Funding Council (SFC) is the body that funds colleges in Scotland and requires each college to deliver a set volume of learning hours each year. This volume is measured in the form of Credits, with a Credit equivalent to 40 hours of learning. The funding for the Lanarkshire region is calculated on regional indicators of demand, with the assumption that student recruitment will take place primarily within the respective college region, and the expectation that the vast majority of provision is delivered within each college’s region.

For the Lanarkshire Region, the Credit allocation of 160,889 was the same in each academic year 2022/23 and 2023/24. For 2022/23 and 2023/24, New College Lanarkshire had a core Credit allocation of 117,290 and South Lanarkshire College received a core Credit allocation of 43,601 Credits . New College Lanarkshire and South Lanarkshire College fully met the allocated SFC Credit target.

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New Colle e Lanarkshire PERFORMANCE REPOR T continued Credit Delive and Number ofLearners 2023 24 SLC delivered 44,077 Credits against a target of 43.601, which is 476 Credits over target equating to 101.09%. This included 93 Credits for FAS. NCL dalivared 117,592 Crodits against a target of 117,288, aquating to 100.26%. This included 622 Credits for FAS. Collectively Lanarkshire region delivered 161,669 Credits against a target of 160,889, equating to 100.48%. This included 715 FA Credits. HE￿ recruitment at NCL12,087 learners) in 23/24 was similar to the previous year12,049 learners). 23124 saw an increase in FEFT recruitment with 674 mora FT laarnors than in 22123. NCL 2023 Mpd•ll•v•l Cr•dlt Prop¢Ytlon AC Year FE-FT FE-PT HE-FT HE-PT 2020121 47.1% 15,2% 35.8% 2021122 47.5% 17,0% 33.7% 1.8% 2022123 44.7% 25,4% 27.9% 2023124 54.3% 17.7% 26.4% 1.6% The reduction in part time studont$ at NCL in 23124 was due to the following factors.. 10 anniversary part time offering in 22123. Health & Social Care micro credentials offered to meet industry n8•d at th8 time in 22123,. digital Crodits b•ing off•r¢d to m•et need in 22123; and an increase in FEFT applications in 23124. Page 17 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued 2022 Level & Mod• KPI FE HE- HE-PT Totol Cred Learner Credlt Learner Credlt Learner Credlt Leamer Credlt Le8rner EOAY 18 397 io 517 160 28 1.142 Exclude from KPI Further 2,803 218 8,364 5,212 183 49 92 52 11,442 5,531 10.043 555 3.066 4.782 136 18.027 1.575 Partlal 5,500 299 3,799 1,180 4,272 277 617 154 14,189 1,910 Succ•ss 31.635 1,710 20.291 7.394 20.429 1.275 1.480 518 73.835 10.897 Unknown Result Tot•1 12 12 49.999 3,179 35,543 14.997 29,666 2,049 2,324 836 117.532 21,061 2023 l￿•1 & Mod• KPI FE4T •T HE-FT HE-PT Tot•1 Credlt L••rner Credlt L••rn•r Cr•dlt L•arn•r Credlt Le•rn•r Credlt Learner E•rly 189 379 93 30 691 E￿lUd from K Further 1,796 120 2,139 949 Is 13 25 22 3,975 1,104 16,919 995 2,127 496 5,870 386 151 42 25,067 1,919 Partl•l 8,642 il#iIlillMiIiIIi 719 3,319 1,105 5,445 424 131 87 17,537 2,335 Suttes$ 33,458 I,￿0 13,655 5,669 17,089 1,173 1,476 404 65,678 9,152 Unknown Result Total 2,315 137 1.484 215 1,261 89 276 5,336 495 63,130 4,066 22,724 8,813 29,680 2,178 2,059 639 117,592 15,696 Colleges and Sector Outcomes for FE and HE on Recognlsed Quallflcatlons 2022123 Ctsmpl•tsd Su¢¢•M￿lI¥ P•rtknl NCL 57.77% SLC 72.77% Sector 63.6% NCL 10.09% SLC 10.06% Sector 11.06% FEFr FEPT 76.1% 81.97% 77.25% 11.94% 9.62% 12.15% HEFr 63.69% 68.32% 65.48% 13.89% 13.10% 13.96% HEPT 74.02% 78.6% 23.03% 15.3% 12.05% Page 18 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued Indicative Colleges and Sector Outcomes for FE and HE on Recognised Qualifications 2023124 Completed Successfully Partlal Succe55 NCL SLC Sertor NCL SLC Sector FEFT, 51.13% 69.2% TBC 13.48% 7.09% TBC FEPT 8 73.8% 84.1% TBC 11.36% 8.46% TBC HE￿. 56,61% 68.3% TBC 16.01% 13.51% TBC HEPT 67.24% 78.5% TBC 8.76% 12.15% TBC Leam8r Success In 2023124 The Colleges Outlined their contribution to delivering key Scottish Government priorities and strate8ies within tho Lanarkshire Regional Outcome Azrgem•nt with the SFC. Th• Colleges performance with r•spe¢t to delivery is primarily 4nalys•d through th• following indicators.. Tha volume of learner activity provided. The proportion of those learners Completing their programme of study,. Tho proportion of thoso learn•r5 achieving a successful outcomo. Tha quality of the18arnin8 and teaching provided. For a fuller analysis wè look at these parameters in a wider context. Nationally the SFC'S 19 current outcom• agreement national measures,. institutionally throLsgh th• four priority KPIS within tho SFC'S out¢ome agreement national measures. (Full definitions are available in the SFC'S guidance and independently through Education Scotland and the SFC'S independent review and endorsementl, Four priority KPIS published by the SFC.. OutcomÈs for Further Education studènt enrolmènts on full-time recognisèd qualifications; Out¢orne5 for Higher Educatlon student enrolments on full-tirne recognised qualrfications,. Outcomes for Furthor Education student onrolmonts on part-tim8 reco8nis8d qualifications- Outcomes for Higher Education student enrolments on part-time recognised qualifications. 7SFC data for23124will be madeayailable in May 2025 SFC data for2ai24will bèmadeavailablo in PAay 2025 SFC dats for23124will be tnadeavailable in May 2025 IOSFCdata for 23124will be madeawailaUe in May2025 Page 19 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued Audited Performance Indicators prior to the as yet unaudited Statistics for 23124 show the following trend data for New College Lanarkshlre over the past 4 years: Full Tlme FE Collego Partlal Success Complttéd suctèssfully 63. Wlthdrawal 2018-19 30.0% 2019-20 62.2% 14.2% 23.6% 2020-21 59.0% 12.¢YA 28.9% 2021-22 52.1% 13.0% 34.8% 2022-23 57.8% 10.1% 32.1% 2023-24 51.1% 13.5% 31.8%13.7% outstandingl Natlon•l S•rtor P•rformanc• Partlal Su¢¢¢ss Completed successfully 65,2% Wlthdrawal 2018-19 10,1% 24.7% 2019-20 66,0% 13,2% 20,8% 2020-21 60.9% ii.Th 27.3% 29.3% 2021-22 59.0% 11.7% 2022-23 2023-24 ' 63.6% ii.i% 25.3% TBC T8C TBC P4rt-Tlme FE Coll•80 Partlal Su¢¢ess 8.1% 19,3% Completed successfully 79,2% 69,3% Wlthdrawal 12,7% 11.4% 2018-19 2019-20 2020-21 77.0% 14,5% 8.5% 2021-22 72,4% 15,6% 11.9% 2022-23 76.1% 11.9% 12% 2023-24 73.8% 11.4% 11.9%12.9% outstandin81 Natlonal Sector Performan¢e Partlal Success CompletÈd successfully 79.7° Wlthdrawal 201&19 li.o% 9.3% 2019-20 78.￿ 12.5% 9.5% 202(k21 76.2% 13.7% 10.1% 2021-22 76.3% 13.0% 10.7% 2022-23 77.3° TBC 12.1% TBC 10.6% 2023-24 13 TBC SFCdata for 23124will b@ rnadoawaila￿Q1n May2025 '5FCdata for 23124wlll be madeavallaNelTr May2025 Page 20 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued Full-fime HE College Partlal Success Completed successfully 66.9% Wlthdrawal 2018-19 12.4% 20.6% 2019-20 71.5% 12.3% 16.2% 2020-21 66.0% 14.7% 19.2% 2021-22 59.8% 14.9% 25.3% 2022-23 63.7% 13.9% 22.4% 2023-24 56.6% 16% 23.1%14.3% outst•ndin81 Natlon41 Sortor P•rform•nc• Partlal Succe55 Completed 5ucce55fullv 69.8% Wlthdrawal 2018-19 11.7% 18.5% 2019-20 73.4% 11.7% 14.9% 2020-21 71.6% 10.9% 17.6% 2021-22 62.5% 13.9% 23.6% 2022-23 2023-24° 65.5% 14% 20.6% TBC T8C TBC P•rt-Tlme HE Collog• Partlal Succ•ss Complotod successfullv 75.0% Wlthdrawal 14.3% 2018-19 10.7% 2019-20 78.4% 9.6% 12.0% 2020-21 78.2% 14.8% 7.1% 2021-22 74.1% 16.0% 9.9% 2022-23 60.2% 23% 16.8% 2023-24 67.2% 8.8% 13.7%110.3% outstandingl Natlonal Sector Perfomianc• Completed successfully 78.9% Partlal Success Wlthdrawal 2018-19 12.1% 2019-20 78.2% 13.7% 8.2% 2020-21 80.9% 9.9% 9.2% 2021-22 78.8% 11.7% 9.5% 2022-23 12% 2023-24 TBC TBC TBC 14SFCdata for 23124wi11 be mad@awaila￿elTh May2025 5FCdata for 23124wlll be Madeayalla￿elTr May1025 Page 21 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued Outcomes by Key Group5 lastlng 160 hours or more 202212023 New College Lanarkshire Enrolled % Completed Successful 59.8% % Partial Succes5 % Withdrawal IO% Most deprived postcodè areas 20% Most deprivod postcode areas Care Exp¢rioncod 1,553 12.7% 27.5% 3,410 60.6% 13.9% 25.6% 428 52.3% 17.3% 30.4% Oisability 2,749 61.2% 14.1% 24.7% Ethnic minority 357 59.9% 16.5% 23.5% FE Females 1,756 57.3% 14.1% 28.6% FE Mal•s 2,347 68.2% 11.3% 20.5% HE Femalos 830 62.8% 14.3% 22,9% HE Males 64.5% 16.1% 19.3% 202212023 Scotland Enrolled % Completed 5u¢<essful 62.6% % Partlal Success % Wlthdrawal IO% Most dtrprived postcode arèas 20% Most dèprived postcod8 ar8as Care Experienced 20,603 13,5% 23,9% 38,457 zzz 63.6% 13,5% 22,9% 8,434 55.4% 27.6% 32,766 64.1% 14.2% 21.7% Disability 13,127 67.4% 14.9% 17.8% Ethnic minority 46,7 64.9% 13.6% 21.5% FE Females 49,039 71.6% 11.8% 16.7% FE Males 17,236 68.8% 11.3% 19.8% HE Females 14,637 66.3% 16.4% 17.3% HE Males Page 22 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued 202312024 New College Lanarkshire Enrolled % Completed Successful 57.12% % Partial Succass % Withdfawal IO% Most dèprived postcode areas 20% Most dèprivad postcode areas Care Exp8ri8nc8d 2,155 14% 21.6% 4,421 59.1% 13.5% 23.9% 41.3% 17.3% 32.4% Disability 3,830 55.5% 15.2% 25.8% Ethnic minority 561 62.7% 11% 20.7% FE Femalos 4,986 63.9% 12.8% 22.2% FE Males 6,024 68.1% 11.5% 15.5% HE Femalos 1,429 61.8% 14.5% 22.1% HE Mal8s 1,138 55% 14.4% 19.9% Outcome for FE￿ improved in academic year 22123 from 52,1% the previous year to 57,8%. Outcome for HEFT improved in 22123 from 59.8% the previous year to 63.7%. However, by Nov8mb8r 24, with the impact of national industrial artion in 23124 as a key fartor, successful outcom¢ reduced for FEFT and HEFT to 51.1% and & 56.6 % resp8ctiv8ly. A total of 25 strike dates impacted on learning, teaching and assessment in 23124. Catch up work continues for m&ny of those students who have not yet boen resulted so the final figures for both FEFT and HEFT will increase slightly. All Dellve 2023 24 NCL Completlon Total L¢•rnerg 23124 Partl41 Su¢¢es$ Total Completlon Total Completlon % 14,783 1,675 8,762 10,437 71% Page 23 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

As results stand, 71% of all NCL learners complete their programme of study with approximately 60% of all learners achieving their programme aim. FEFT, being the largest proportion of our provision, sees 64.6% of learners complete their programme of study.

Overall, provisional KPI data for NCL 23/24 indicates a drop in successful outcome for FE and HE. It is expected though that FEFT in 23/24 will be higher than 21/22 (52.1%) once all results are entered after coordinated efforts to support students through final assessments in August 2024. HEFT successful outcome is expected to be lower in 23/24 (55-62%) compared to the previous year (63.7%) but possibly on a par or higher than 21/22 (59.8%). FEPT in 23/24 (73.8%) will be lower than 22/23 (76.1%) but higher than 21/22 (72.4%). HEPT in 23/24 (67.2%) with 10.3% of results to be entered will likely be higher than 22/23 (60.2%).

SLC Completion

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New Colle e Lanarkshire PERFORMANCE REPOR T continued Learner Withdrawal NCL'S Full Time learner withdrawal overall in 23124128.64%) increased slightly compared to 22123128.31%). However, ￿ early withdrawal improved by 6.39%, partly as a rèsult of the SFC'S much naeded and w8lcom8 changes to its funding cut-off date from week 9 to week 5. Part Time withdrawal has improved according to indicativ8 data from 12.05% in 22123 to 12.03% in 23124. Full-tlm8 early and furth8r wlthdrawals - trend analysls 2019120 to 2023124 Mode 2019120 2020121 202V22 2022123 2023124 Early wtthdrawals 9.70% 7.91% 11.00% 11.25% 4.86% Furth•r wlthdraw•l$ 13.10% 17.61% 19.81% 17.06% 23.7YA Total early and furthor withdrawals 22.08% 25.52% 30.81% 28.31% 28.64% Part-tlme early and further wlthdrawal$- trend analys1$ 2019120 to 2023124 Mode 2019120 2020121 202V22 2022123 2023124 Early withdrawals 5.49% 3.01% 4.38% 5.28% 5.19% Furthor withdrawals 6.67% 5.63% 6.51% 6.77% 6.83% Total early and furth•r withdrawals 12.16% 8.64% 10,89% 12.05% 12.03% FEFT in NCL saw an improvoment in ovorall withdrawal from 32.14% in 22123 to 31.76% in 23124. HEFT saw a slight decrease in its withdrawal KPI from 22.39% in 22123 to 23,07% in 23124, Therefore, an improvement in NCL'S retention for it$ 3,853 FE￿ learners was a key priority in 23124 and despite a challenging year this aim was fully met as a result of a coordinated approach to retention improvement. At SLC, th• College Curriculum Progress Reviews trackèd in-yèar retèntion ratos to implomont intervention strategies to enable students to continue their course of Study.. Early Withdrawa15 IEWI in Further Education Full Time IFEFT) decreased from 9.6% in 2022123 to 7.03% in 2023124,. Early Wtthdrawal IEWI in Higher Education Full Time IHEFTI decreased from 6.6% in 22123 to 2.7% in 23124- Further Withdrawals IFWI in FE ￿ have increased to 16.4% from 12.34% in 22123,. Further Withdrawals in Higher Education Full Time IHEFTI increased to 15.2% frorn 11.4% the previous year. Page 25 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

At SLC, Action Planning continues into session 2024/25 by curriculum teams to understand the reasons behind the withdrawals, support the students to remain on their chosen course of study and to complete their courses successfully. The cost-of-living crisis and mental health issues remain prominent in this analysis. However, overall retention remains high at 87% however this is a decrease of 2% on the previous year 2022/2023.

New College Lanarkshire has developed a Retention Strategy aimed at mitigating against student withdrawal and is framed around broad themes as detailed:

Page 26 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued NCL will use KPI data to provide a comprehensive overview of performance at departmental and programme level. This will be used to maka data-driven decisions, identify areas for improvement and demonstrate accountability. NCL'S Retention and Attainment Group is developing strategies to improve student retention rates, progression, and succèssful complètion of coursès,. this will bè infomèd via departmental action plans and Plan-Do-Study-Act IPDSAI modelling for continuous improvement- NCL will use data to inform thè correlation botweon data of application and student ret8ntion,' S¢rutinising, oxtonding, improving and interrogating withdrawal data to establish trends and patterns to track students to future destinations,. NCL'S Cr¢dit and P¢rforman¢e Monitoring Group to consistently review KPI data, identifying areas that rèquire intervention and support for academic and professional teams to achieve Credit targets. NCL has invested in a Staff Dèvelopment Academy ISDAI to support NCL'S strategic prioriti8s Recruitment, Retention, Attainment and Progression IRRAPI. To achieve this, NCL is committed to an 8xc8118nt 8mploy88 and student exp8ri•nc8, maximising organisational capacity that is supportiv• of NCL'S values. The SDA serves to empower •mployee5, SUPPOrt organisational goals, and driv• sustained success and competitiveness in tOda￿S dynamic educational landscap•. Aligned to this is Commitment to advancing staff qualifications and ¢ompeton¢ies wherè staff d¢velopment is tailor•d to meet the specific needs of th8 colleg8, its students, and its workforce, with a focus on promoting continuous l•arning, growth and •xc•ll•nce. The vision for th¢ SDA is to Cultivate a future-fit workforcè, equippèd with advanced digital and occupational 8xp8rtise, innovative teaching practices and the ability to strat•gically utilise a range of t•¢hnologi•s which meot the evolving learning, and skills needs of our Region. NCL continues to idantify new inclusive opportunities to support students from key groups includin8 the most deprived and care experienced. Th• tabl• b•low shows NCL'$ h¢adcount % of koy group $tud•nts as one of Scotland's 26 colloges.. Scotland NCL % of Scotland 2022123 IO% Most deprived postcode areas 7,5% 20% Most deprived postcode areas Car• Exp•ri8nced 5.1% Disability 8.4% Ethnic minority 2.7% Page 27 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Most Deprived

In North Lanarkshire (35%) data zones are within the 20% most deprived communities in Scotland. This share has increased since the 2016 SIMD[16] . Across North Lanarkshire, 50,897 (15%) people are income deprived and in comparison, the Scottish average is 12%.

The Colleges continue to address the needs of those disadvantaged in the labour market and serve some of the most affected areas in the country. For example, within North Lanarkshire, which is mainly served by NCL, 18.6% of the working age population (aged 16 to 64) have no formal qualifications.

NCL continues to actively recruit from the most deprived 10[th] decile with the College’s headcount increasing again in 23/24 to 2038 students:

16 Scottish Index of Multiple Deprivation (SIMD) 2020 | North Lanarkshire Council

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New Colle e Lanarkshire PERFORMANCE REPOR T continued Actions Targeted discretionary Student funding 5UPPOrt,' Free breakfasts for all,. Broad school recruitment campaign- Target school recruitment of Chri5trna5 leaver5 based on post 16 data hub career preferences. Care Ex erienced NCL provided opportunity across all 15 of its academic d$partm¢nts to 284 verifi•d care experienced students. Coll8gelReglo New Collego LanaTkshl Total Year Care Exp Student %Studen Cr8dlt %Credlt Student %Studen Credlt %Cr8dlt 2023124- No 2024124- Yes total 13,359 97.92% 2.08% 100.co% 108,753 4,004 112,757 96.45% 3.55% ioo.oo% 13,359 97.92% 2.08% l¢)O.¢J)% 108,753 96.45% 3.55% ICNJ.CK)% 13,643 13,643 112,757 Actions Trauma informed staff development,. Teaching Squaros cross college focu5 on Trauma Informed,. Aligning care exp8ri8nc•d to priority group analysis for the first tim• to better support CE studonts. All colleges in Scotland ar8 focused on the improvement of KPIS across key groups such as care 8XP8ri&nced and the IO% and 20% most d•priv•d. This is done, for ¢xample, through the National Equality Outcom¢s and related prioritiès. NCL KPIS for kay groups do not currently match th8 national averages but the Coll880 deals with large numbers of students from key groups.. 8.9% of all Scottish FE students in the most depriv•d postcode ar•as' 5.1% care experienc•d,' and 8.4% disability. In relation to SLC, recently publishad National Performance Indicators for academic session 2022123 demonstrate that the extensive additional support provided by curriculum and support teams for groups of students facing the greatest barriers to learning has had positivo impact.. Studonts from SIMDIO13501 achieving 70.6% which is 2% above 20211221ovels' Stud8nts from SIMD2016551 achieving 70.5% which is which is 4.1% above 202112218vels- 228 students who deelared that they had a disability completed succèssfully at 64.2% which is the sam818V81 as 2021122,. 75 students from a care experienced background completed succèssfully at 51.7% which is a slight increase of 0.3% from the 2021122 levels- 32 students from ethnic minority backgrounds completed successfully at 68.4% which is 4.8% below 2021122 levels. Further analysis and artion planning eontinues around thè experiènce of thosè students in the key groups of disability, care experienced and ethnic minority to improve success. Overall unofficial indicative Attainment ratès from session 2023124 in comparison to 2022123 indicate FE￿ has increase by 2°A to 69.2°A,' HEFT has decreased by 3.1% to 68.3%,. FEPT has decreased by 6% to 84.1% and HEPT has increased by IO% to 78.5%. Page 29 of 108

New Colle e Lanarkshire Student Satisfaction The Scottish Funding Council ISFCI require all Colleges to distribute the Student Satisfaction & Engagement Survey ISSESI as a means to evaluate and enhanc• coll8go provision in Scotland. Tho survey provides a national approach to monitoring student satisfaction and engagement in Scotland's Colleges and annual guidance 17 issued by SFC to collegas includas th8 selection criteria and questions. Tho SFC axpect students to be encouraged to participate in the survey and both FE and HE- full-time and part-time should aim to achieve target response rate of at least 50%. Th8 suN8y is diracted at students on a programme of study that is four Credits or more and include5 coverage of Developing the Young Workforce 8roup5. Data collerted is analysed on18vel and stud8nt mode of att8ndance. College Satlsfactlon Survay Response Ratas 202212024 NCL L•v•l and Modo Response Rate %- 202212023 59 Response Rate %- 202312024 Further Education- Full Timè 87.01 58.9" 66.68 49.2 Furthor Education- Part Time Further Education- DistancelFlexiblo Higher Education- Full Timo Highor Education- Part Tim• Highor Education- Oistan¢¢lFleyible Ov¢rall Total 40,25 19.9 TBC 50,03 35,1 28.57 TBC 27.33 55.6 45.5 48.8 19 64.13 42.9 42.32 44.4 T8C 66.84 27.3 44.19 T8C 64.04 54,95 42.2 T8C 61.1 38,6 Colle80 Satlsfactlon Survey by Mode of Study 202212024 2022123- % 2023124- % NCL SLC Sector NCL SLC FE HEFT Ovèrall 88.6 82.8 85.7 94.6 89.1 TBC 92.9 91.5 92.5 89 82 85.5 94 At the time of writing this roport, the SFC Student Satisfaction Survey results for 2023124 wore not published. Page 30 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Learner Destination

All Colleges are required to demonstrate the destination of students, which would be included as a measure with the Lanarkshire Outcome Agreement.

The publication College Leaver Destinations (CLD) 2021/22 reports on the destinations of leavers from full time courses 3-6 months after qualifying. Data collation for this report began in November 2022 and continued to June 2023 with linkage and matching of leavers’ destinations to two additional datasets: Skills Development Scotland (SDS) and the Students Awards Agency for Scotland (SAAS); however, this is restricted to 16- to 24-year-olds only due to current legislative limitations.

In summary:

Quality of Learning and Teaching

Both Colleges were visited by Education Scotland to undertake an Annual Engagement Visit. For New College Lanarkshire there was acknowledgement that some full-time HE subject areas had overall rates of learner successful completion higher than the sector norms, including construction, hospitality and performing arts. Likewise, there were a few full-time FE subject areas with rates of successful learner completion higher than the sector norms, including performing arts, special programmes and sport and leisure.

The following areas for improvement were identified by Education Scotland and discussed with senior managers:

Page 31 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Main points for action identified by Education Scotland were:

For those curriculum areas with persistently low rates of learner attainment, College managers are working both with staff and with colleges across the sector to identify positive practice and interventions to support improvement.

New College Lanarkshire’s Education Scotland Annual Engagement in academic year 2023/24 reported of positive practice relating to:

At SLC, the Professional Standards of teaching staff remains a focus to ensure that the curriculum and pedagogical quality standards are retained, and enhanced, to improve the student experience. 78% of academic staff at the College hold a teaching qualification with others working towards completion of the Teaching Qualification in Further Education (TQFE) and 43% of lecturing staff have registered with the General Teaching Council of Scotland (GTCS) to date.

The effectiveness of the student experience is the focus of everything the College does. Across curriculum teams and support staff teams, the commitment to a responsive, enabled and supported student journey drives the enhancement activities undertaken. Evidence of this came through the Education Scotland Care Thematic Review and the Education Scotland Annual Engagement Visit.

College and Student Awards

At NCL, the excellence of the students and colleges are often recognised via endorsement from external organisations. In session 2023/24, the Colleges and students won several awards, including:

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New Colle e Lanarkshire PERFORMANCE REPOR T continued City and Guild students from New College Lanarkshire, Cumbernauld Campu5 attended International Salon Culinairo in London and compatod this week, winning one silver medal, six bronze medals and one certificate of merit. International Salon Culinaire is regarded as one of the world'5 top competitions for chèfs. studènt at Now Collègè Lanarkshirè, Mothèrwèll campus achievèd a silvèr mèdal at the UK'S largest student hairdressing barbering and beauty competition in Blackpool. This success follows on from thè Association of Hairdrèssèrs and Thèrapists IAHTI National Heat, when students won two gold, two silver and bronze awards at the Regional heat. New Collego Lanarkshire was shortlisted in two categori8s in the sparqs, 2023 Stud8nt Engagement Awards. The Learning Engagement team was shortlisted for the Digital Partnership award for their innovativa use of Microsoft T8ams to encouragè active participation among class reps and was nominated in the Outstanding Academic Representative category for her work as student president. from New College Lanarkshire, Coatbridge campus, was been named the makeup artist of the year 2023 accolad8 at the Scottish Beauty Industry Awards. Braw Weo Shop at th• Coatbridg8, Cumbernauld and MothenNo11 campuses of Naw Collèg• Lanarkshire, sells a rang8 of handcrafted, sustainable goods and was nominated for a 'Divorsity in Education, award at th• Herald Diversity Awards in Octob8r 2023. Support for Loarning and North Lanarkshire Council cel¢brated at the r•¢ent DFN Proj•rt SEARCH Annual Conf8r8nc8 in November 2023. The scheme, a partnership between NHS Lanarkshir8, North Lanarkshire Council, New Collog¢ Lanarkshir•, and the charity Proj•rt Search allows students to do series of work placement at the hospital while receiving trainin8. Th8 project with the University Hospital Wishaw, achiovod over 70% employment outcomes for their 2021122 graduates. This is the third year runnin8 they have been reco8nis8d for their outstanding employment outcomes and already secured 88% employment for their 2022123 cohort, which will be rocognis¢d at next yearfs awards. NCL Automotive Student￿ was shortlist•d forth• Institut• ofth• Motor Industry's studant of the year award. Paintings, drawings, collages and sculptures commissioned by the University of Glasgow's Waste Stories project and ar? the produ¢t of a Collaboration between the projert, led by lecturer￿ at New Coll88e Lanarkshire were displayed at th8 Mitch811 Librarv. Senior Engagement Off icèr, New College Lanarkshire, John O'Hara was elected as thè new Scottish Chair of the Association of Hairdressers and Therapists IAKri. Students from Nèw College Lanarkshire secured their places in the national finals of a prestigious hair and beauty competition. The students achieved remarkable success, securing an impressive total of 12 medals, including 3 gold, 4 silver, and 5 bronze. Thè judges wère imprèssed by the exceptional standard of work displayed by the students, particularly given their current Study levels which ranged from school students to SCQF Level 6. New College Lanarkshire was nominated in five categories at the prestigious Herald Education Awards in April 2024. o In the Outstanding Contribution from a Collegè Student, our student prèsident was nominated. In the Outstanding Bu5ine55 Engagernent in Q>llege5, our Next Gen Film and TV course, part of the Visual and Creative Arts department was nominated. In the Outstanding Contribution to the Local Community category, the Beauty Aesthetics and Hair Design innovative Caring for Carers programme in Motherwell was nominatad. In the Partnership Award category, the Access and Progression department's work with North Lanarkshire Women's Refug8 was nominated. In the Marketing/PR Campaign of the Year category, the Brand Team5 work around the 'We are New College Lanarkshire, film was nominated. Page 33 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

WorldSkills

Designed by industry experts, WorldSkills UK aims to help young people grow personally and professionally by developing their technical and employability skills and boosting their confidence. Hundreds of students and apprentices from across the UK take part every year.

New College Lanarkshire was the highest performing organisation in Scotland in 2023, and this consistent success in this competition shows the strength of the College, the technical aptitude of our students and the competitive edge that exists here in Lanarkshire.

– Gold

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Equality, Diversity and Inclusion

The College promotes equality of service delivery with all internal and external stakeholders as outlined in the extensive range of initiatives and reporting activities detailed here:

22 British Sign Language Plan 2024 - 2029 - New College Lanarkshire | New College Lanarkshire

20 ncl-mainstreaming-and-equality-outcomes-interim-report-2023.pdf

21 NCL BSL Plan 2024 - 2029 with audio - YouTube

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Fair Work

As a Fair Work employer, the College has made significant progress in prioritising and implementing the seven Fair Work First requirements as demonstrated against each of them.

1. Provide appropriate channels for effective workers’ voice, such as trade union recognition

There are three recognised trade unions at NCL: EIS-FELA representing Academic staff, and UNISON and Unite for the Professional Services staff. Trade union membership is promoted to staff as part of their induction and within their written terms and conditions of employment. Trade union representatives are supported with time away from their substantive roles in the College to represent their members at both a local and national level. Local Joint National Committees take place on average 6 times per year where consultation takes place on local matters such as policies & procedures, key initiatives such as restructuring, as well as an opportunity for a sharing of information. Trade union representatives are also members of the College’s Health, Safety & Wellbeing Committee and the Equality, Diversity & Inclusion Committee. Individual members of staff with an interest in these topics also actively participate in these forums. Trade Union representatives have also been invited to take up positions on the Board of Management.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

The Principal sets the tone of communication throughout the College, balancing formal updates to staff via email and “All Staff” video calls, with hosting end of term “Big Breakfasts” which provide an opportunity for informal discussion. The appointment of Executive Board members as Campus Leads has further embedded this approach, each adopting an open-door style for staff to speak to them in confidence, as well as hosting “coffee and cake” sessions to discuss campus related matters and further disseminate College wide messages. There are also many additional communication channels, including weekly email newsletters and a newly refreshed intranet site, The Clan, where staff contribute regularly.

Line managers are expected to hold regular meetings with their teams and individuals, and feedback from individuals is strongly encouraged. The College has committed that all staff will have a formal Professional Development Discussion annually with their line manager to reflect on their role and achievements during the previous year as well as discussing future ambitions and development opportunities. The College encourages informal resolution of grievances between colleagues, however there are also well established, formal grievance procedures intended to achieve fair outcomes.

2. Investment in workforce development

The Staff Development Academy (SDA) at NCL is an academic department tasked with delivering learning and development to all staff. As well as creating a Staff Orientation programme for new colleagues, the SDA has established “All Staff Essential Learning”, an online suite of modules which everyone must complete annually. These consist of Cyber Security, Data Protection, Equality & Diversity, Display Screen Equipment, and Keeping Everyone Safe. This last module explains the differences and interconnection between Safeguarding, Trauma Informed Practice, Corporate Parenting and Mental Health First Aid, so that all staff at NCL are adequately equipped. CPD opportunities are available to all employees and there is a wide variety of skills embedding options on offer, including British Sign Language and a certificated Health & Safety programme. A Staff Development Bursary process supports our staff financially to undertake professional development sourced externally.

Academic staff can move through a Learning & Teaching Development journey which enables lecturers to build their skills through different levels, culminating in the Teaching Qualification Further Education (TQFE). Each year, the College funds a number of places for academic staff to achieve the TQFE with the University of Stirling.

“Leading NCL’s Future” is a tailored programme delivered internally for all members of the Executive Board and senior managers across the College to develop and hone their leadership abilities, with emphasis on strategic thinking for the future success of the College and its staff.

3. Action to tackle the gender pay gap and create a more diverse and inclusive workplace

The gender pay gap is measured and reported on annually. The College workforce is 63% female and well represented at senior management level (50%). The NCL Board is gender balanced and steps are taken to diversify the make-up of the Board in anticipation of each recruitment cycle.

In line with our Public Sector Equalities Duty, the College launched a Staff Equalities Monitoring Survey for the first time this year, and the outcomes will inform future focus on staff diversity and inclusion activities.

The Equality, Diversity & Inclusion Committee (EDI), led by a dedicated EDI Adviser, meets regularly and is well represented by staff from across the College to discuss and prioritise matters of interest and importance.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

The College has a range of family friendly, EDI and wellbeing policies and learning opportunities to enable, promote and support an inclusive culture. This year, the EDI module which is part of our All Staff Essentials learning suite focused on attitudes and preconceptions about Race and Racism, designed to positively challenge staff thinking. Other examples include offering a module on Neurodiversity as part of the micro credentials suite available to all staff, and the launch earlier this year of the nationally agreed FE sector Menopause Policy, accompanied by a number of awareness raising initiatives for all staff and line managers at NCL.

In line with the College values, NCL has strived to ensure that well-being is integrated into everything we do. The College has invested in a wide range of mental and physical health support for our staff, which is published on dedicated Wellbeing pages on The Clan, NCL’s intranet site. Reasonable adjustments are made for employees with disabilities and/or longer-term health conditions to help them to remain at work, and an Occupational Health Service provides guidance for line managers and staff. All NCL staff have access to “Help@Hand”, a free wellbeing app designed by a specialist employee benefits provider. As well as a 24/7 Employee Assistance Programme offering free counselling sessions, staff are able to access useful services such as physiotherapy, nutrition, and personal training sessions. Some services are also available to family members.

More than 20 employees at the College have received external training to become mental health first responders. Like first aiders, mental health first responders support NCL staff and students in maintaining life and preventing mental health decline by offering assistance, encouraging recovery—that is, supporting the initial steps towards regaining good mental health and offering comfort to an individual experiencing distress.

4. Offer flexible and family friendly working practices for all workers from day one of employment

Generous terms and conditions apply to all staff at NCL from Day 1 of their employment. The benefits package includes substantial leave provisions for a wide range of circumstances, including holidays and sickness absence. Complimenting this is a range of family friendly policies which is made up of maternity, paternity, parental, adoption, carers, dependants and bereavement leave. We also provide the opportunity for staff to take career breaks.

The Flexible Working Policy has recently been updated and promoted to highlight to staff this is a benefit which is accessible to all. Quarterly statistics are provided to the Executive Board and, during 2024, there have been 12 formal flexible working requests.

Home working is an option for those staff whose roles allow for this, all the while balancing the needs of students and colleagues for on campus working and availability. Lecturers are entitled to work offsite for up to 1 day per week to allow for dedicated lesson preparation time.

The College is respectful of staff entitlement to a positive work life balance. Meetings and calls are only arranged within working hours, and staff are reminded regularly that emails do not require an out of hours response. Online training options also provide staff with flexibility as to how they arrange and manage their working day.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

5. Payment of at least the real Living Wage

At NCL, we pay the Real Living Wage as a minimum and we are recognised as a Living Wage Accredited Employer. In 2023, we implemented the new rate for our employees six months ahead of the national deadline, and to coincide with Living Wage Week (6-12 November 2023). This was intended to provide real and sustained support to our lower-paid employees in a challenging financial environment.

The College further complies with its statutory obligations by considering whether it is relevant and proportionate to make the Real Living Wage a condition of contract or include a question on Fair Work practices before undertaking a procurement. This commitment is embedded within the New College Lanarkshire Procurement Strategy 2023/24, which can be found directly on our external website[23] . It is also referenced in the Lanarkshire Outcome Agreement.

6. No inappropriate use of zero hours contracts

There are no zero hours contract in use at NCL. We employ everyone on either permanent or fixed term contracts which reflect hours worked and provide a guaranteed fair minimum of hours worked per week. This means our employees have predictable earnings and have their expected time commitment confirmed from the outset. In line with national collective agreements, employees on fixed term contracts will move on to permanent contracts after two years’ continuous service.

7. Oppose the use of fire and rehire practice

At NCL, we do not participate in “fire and rehire” practices. We recently completed a restructure of our Academic departments and are currently undergoing a similar exercise for our Professional Services teams. We adhere to the overarching principle of no compulsory redundancies, and we have accommodated everyone who either wishes to take up a different opportunity in the College or prefers to remain in the role they are in within the new structure.

Financial Performance

As guided by ONS reclassification, the RSB will look to break even, maintain permitted cash and working capital balances whilst aligning resources to ensure that the Colleges fulfil their Vision and Values. Surpluses will be transferred, after meeting any loan obligations, to the respective Arm’s Length Foundations as appropriate. Financial Sustainability underpins all aspects of the Colleges Strategies.

In the year to 31[st] July 2024, NCL made a deficit of £4,911k before other gains and losses on a turnover of £51,325k net of intercompany transactions. NCL’s underlying operating position was £243k deficit (2022/23 £3,627k deficit) before the gain on disposal of assets of £68k: including the gain, the total operating deficit is £175k. Amcol Scotland Limited made a surplus of £499k before other gains and losses on a turnover of £4,764k net of intercompany transactions. Amcol’s underlying operating surplus was £527k (2022/23 £431k surplus). NCL Group (NCL plus subsidiary Amcol) made a surplus of £284k (2023 deficit £3,196k).

SLC made a deficit of £1,677k before other gains and losses on a turnover of £18,592k net of intercompany transactions. SLC’s underlying operating surplus was £378k (2022/23 £254k deficit).

In the year to 31[st] July 2024, the RSB generated an underlying operating surplus of £662k, 0.82% of Total Expenditure (2022/23 – deficit of £3,450k, -4.04% of Total Expenditure), as detailed overleaf.

23 - College procurement New College Lanarkshire | New College Lanarkshire

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New Colle e Lanarkshire PERFORMANCE REPOR T continued Underlying Operating Position Re 2024 Colle 2024 Re 2023 Colle 2023 Restated {5,6991 1,510 Restated {5,0791 855 Surplus/{D8flcltl before oth8r galns and losses Depreciation (net of deferred capital grant release) Inote 11, 171 Impairment of a55ets on revaluation (note 111 Pension adjustment- FRS102 staff cost adjustment Inot¢ 7, 241 Pension adjustm8nt- Nat int8r8St Inot8 6, 9, 241 Non-cash early retirement adjustmonts (note 161 Job Evaluation provision Inot8 161 16,0901 1,228 14,9111 258 266 106 214 1,329 1,014 15751 1151 14961 79 15071 5,504 14611 4,459 Daduct: Non-government capital grants Revenue fundin8 allocated to loan repayments lfrom cash budget for prioritiesl Exceptional re-structuring cost- strategic 8rant Underlyln8 op•ratSn8 surpluslldeftclt} % of Total expendlture 0.82 -0.43% 4.04% -5.89% The College INCL) plus Its dlrect subsldlary Arncol Made a cornblned UnderlySn8 Operatlng Surplus of £284k before galn on sale of assets12022123 d•fSclt £3,196k}. Other Matters Amcol Scotland Limited, a Company limited by shares and a Scottish Registered Charty, N. SC039758, was transferred to Motherwell College on 31, D•cemb•r 2008. Tho shares were subs8qu•ntly transferrod to NCL upon1•8al formation. Th• results of the company for tho 12 months to 31, July 2024 have been incorporatod in the Regional Financial Statements. Consolidated Incom• for tho year was £74,933k, 22.90% of which was non SFC Incom•12022123 £79.760k, 21.94%). The RSB has accumulated consolidatèd reserves of £103,663k12022123'. £106,768k rostatedl and net cash balanceslloans/overdrafts of £9,284k12022/23.. £7.477kl. Regional Financial Performance Indicator5 2024 0.57'.1 46 2023 0.6'.1 36 Current assets.. current liabilities Days cash Page 40 of 108

New Colle e Lanarkshire PERFORMANCE REPOR T continued These indicators reflect some stability in the ongoing financial perfomiance. NCL 2024 0.25..1 13 NCL 2023 0.4..1 13 Amcol 2024 7.48:1 221 Amcol 2023 7.7..1 189 sic 2024 1.36..1 92 SLC 2023 1.3..1 65 Current assets- current liabilities Days cash At 31° July 2024 NCL holds Student Support Funds of £707k to b¢ repaid to the SFC12023 £2,407kl and SLC holds £136k12023 £107kl. NCL has accrued £246k for voluntary severance payments after 31 July 2024 12023 £172kl. In the Financial Statements at 31st July 2023, NCL provided for £1,013k ¢lawba¢k to SFC for under delivery of Credits in the financial period. This calculation was subsequently reduced to £995k and at May 2024, following a review of tho funding distribution model by the SFC and subsoqu¢nt submission of mitigating circumstances, the SFC confirmed that th8 clawback would not be required to be repaid. The provision was released in-year and is r¢flo¢ted in the SFC core grant income. Durin8 the year to 31" July 2024, NCL received a cash advance of £4.5m from the SFC. The liability is held under SFC croditor wrthin creditors < I year. The College remains in active discussion with the SFC around repayment and re-profiling of the cash advance. Goln8 Conc•rn Staternont Having ¢on5id•red all relevant intornal and external factors including th• Audit Scotland guidanco on Goin8 Concorn in the Public S•ctor, and putting in plac• planning mitigations, tho Board of Managém•nt is satisfiéd that th• Règion has ad•quat• r•sour¢s •nd funding support to continu• in op•ration for th• tore5••4bl• future. For this reason, the Going Concern basis continu¢s to be adopted in the preparation of Financial Statemonts. Th• RS8 continu•s to report a not assot position. Tho Board continues dialogue with th• SFC regarding Cr•dit delivèry, Cash Flow and Financial Sustainability, taking mitigating action as appropriate givon that inflationary incr•a$•$ on salri¢s and operating cost$ Cannot b• covor¢d by 'flat.eash' funding. NCL reports it plans to arrive at medium-term financial sustainability, through focusing on improving efficiency in resource and curriculum planning. further cost control measurtrs in staff and non-staff expenditure and further 8rowth in curr•nt and alternative income streams. A Forward Plan has baen presented to the SFC and clos• dialogue continu•s. with a continuou5 monitoring of cash balances, reviewing regularly with the SFC to •n$ur• cash prassure points are highlighted and support agread in advance wh8r• necessary. Payrnant Practlce Code The RSB compli8S Wlth the C81 Prompt Payment Code and has a policy of paying suppliors by the end of the month following the date of invoice or supplyi unless the invoice is disputed. It 15 also RSB poli¢y to resolve disputes and complaints as quickly as possible. The18v81 of creditors in terms of the proportion of the period end creditor5 to the aggregated invoiced amount5 during the period wa5 22 day512022123 17 days). No interest was paid under the Late Payment of Commercial Debts Ilnterestl Act 1998. Health and Safety The RSB accepts the legal duties of care as set out in the Health and Safety at Work etc., Act 1974 and all other relevant legislation and also our moral and ethical obligations, and the continuous improvèment in the management of the health and safety risks to all stakeholders i.e. staff, learners. contractors and visitors. The RSB actively promotès "Healthy Working Livès" and promotes activè use of tha Occupational Health services on offer. Page 41 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

Data Protection Act 2018 and GDPR

NCL is registered as a Data Controller under the Data Protection Act 2018 (Registration Number Z9194349). The RSB has appointed an independent Data Protection Officer as required under the UK GDPR.

Professional Advisors

External Auditors : Audit Scotland Internal Auditors : Wylie & Bisset Group (Wbg) Bankers : The Royal Bank of Scotland Solicitors : Clyde & Co, BTO

Forecast for the year to 31[st] July 2025

New College Lanarkshire has recognised the difficult financial position both itself, the Region and the Sector has found itself in. The College has already taken actions to address overall financial sustainability and the more immediate cash deficit, a cash deficit which requires SFC support to address short-term liquidity. Actions taken include a full Academic staff structure review (with Professional Services review underway), self-funded VS schemes and cost reductions in the form of a campus closure, asset sale and the discontinuation of inefficient services.

Recognising that staff restructuring alone was not enough and strategic change was needed, the College prepared the Forward Plan 2024. Built upon improved management information, including the Efficiency Model, the College has pivoted its business model to incorporate an expansion in undergraduate provision driven by a partnership with UWS in the Undergraduate School (UGS) and the launch of a digital college enterprise (The Learning Well / TLW). The Plan is fully aligned with the new student focussed initiatives, primarily designed to improve recruitment and retention.

In addition to the UGS and TLW, the College seeks to develop and strengthen new and existing partnerships and collaborations, and expand the educational reach (nationally and internationally) and thus improve market share and income sources. The College continues to invest in its Staff Development Academy and continue to diversify our curriculum, creating new income sources and developing existing sources through the medium of an agile staffing complement and initiatives such as The Learning Well.

The College is cognisant of the requirement for short-term SFC cash support, the risks surrounding the assumptions and has put in place a range of contingencies and mitigations to help achieve the Plan. The College remains confident in the construct and content of the Plan and achieving the initial UOP surpluses in the next two Academic Years.

On a Regional basis, there is a possible dissolution of the Regional arrangement constructed under the Lanarkshire Order 2014. Both Colleges agree to the dissolution and await Government instruction following a public consultation exercise.

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT

The Accountability Report comprises the Corporate Governance Report and the Remuneration and Staff Report and is signed by the Chair of the Lanarkshire Board and the Principal and Chief Executive.

Corporate Governance Report

The Corporate Governance Report comprises the following sections:

This is followed by a Remuneration and Staff Report. The Region is not required to produce a Parliamentary Accountability Statement.

Section 1 - Directors/Board of Management Report – The Lanarkshire Board

This report covers the year from the 1[st] August 2023 to 31[st] July 2024 and also includes any significant developments in the period up to the signing of the Financial Statements.

The Legislation and Constitution of the Board

The Lanarkshire Board is constituted in accordance with the requirements of the Further and Higher Education (Scotland) Act 2005 and the Post-16 Education (Scotland) Act 2013 and the Lanarkshire Order 2014. The Lanarkshire Board is a Regional Strategic Body (RSB) but it serves as the Board of NCL which is also a regional college. Under this legislation, South Lanarkshire College (SLC) is an assigned college to the Lanarkshire Board the RSB. SLC has its own distinct Board of Management and it is responsible for the governance of the college.

The Lanarkshire Colleges Order 2014 defines the membership of the Lanarkshire Board which came into being on the 1[st] October 2014 and sets a minimum of 19 and a maximum of 22 members. The Lanarkshire Order 2014 establishes that the Principal of SLC, the Chair of SLC, two SLC staff members and the SLC Student President are members of the Lanarkshire Board.

The Colleges of Further Education and Regional Bodies (Membership of Boards) (Scotland) Order 2023 Article 4 amends the 2014 Order to add trade union nominee members, one from the teaching staff of New College Lanarkshire and South Lanarkshire College and one from the support staff of the colleges and takes the Lanarkshire Board to a minimum of 23 and a maximum of 26 members with 11-14 independent (nonExecutive) members.

The Lanarkshire Board is a fundable body with a Financial Memorandum with the Scottish Funding Council (SFC) and this means that it receives the regional allocation of funding from the SFC and there is a process of regional allocation to NCL and to the assigned College, (SLC). There is also a Financial Memorandum between the Lanarkshire Board and SLC. The memoranda set out the financial relationships between the SFC and the RSB and the RSB and the assigned college.

The NCL Principal is the Chief Officer of the Lanarkshire Board. The Board appoints one of the non-executive members to serve as Vice Chair and one as Senior Independent Member (SIM). The Chair is appointed by Scottish Ministers through the public appointments process. There are also two NCL staff members who are elected to the Board and the elected NCL Student President who has a place on the Board.

NCL and SLC are registered charities (SC 021206 and SC 021181) and therefore Board members have duties as trustees under the Charities and Trustees Investment (Scotland) Act 2005.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Board Members

The Board Members who served and attended during the period from the 1[st] August 2023 to 31[st] July 2024 are set out on the table on page 49. Board Members’ Register of Interests is available on the College website[24] .

Data Related Incidents

One personal data breach was reported to the Information Commissioner’s Office (ICO) by NCL in the period up to 31[st] July 2024. The ICO took no regulatory action as a result of this breach. In 2023 NCL had no breaches reported to the IPO.

SLC had 5 incidents of personal data breach in the year up to 31[st] July 2024. None were referred to the ICO based on the assessment of risk to the data subject(s) as they did not reach the requirements for regulatory action. In 2023 SLC had one breach reported to ICO.

Section 2

Statement of the Lanarkshire Board’s Regional Responsibilities

Statement of Responsibilities as the RSB

The Lanarkshire Board has a dual role as the RSB but it is also the Board of Management for the Regional College, NCL. SLC, the assigned College, has responsibility for its own governance.

It is the duty of an RSB to exercise its functions with a view to securing the coherent provision of a high quality of fundable further and higher education in the localities of its Colleges. In doing so, the RSB must have regard to any fundable further education and fundable higher education provided by any other post-16 education bodies in the localities of its Colleges. Inter-alia, the Board must monitor the performance of its Colleges in accordance with the Further and Higher Education Scotland Act 2005. The Board may give such directions to its Colleges as it considers appropriate, in accordance with the 2005 Act.

In respect of its strategic and development responsibilities, each year the Lanarkshire Board holds a strategic meeting including the College Executive. The timing of the event is arranged to facilitate Board Members input to the Regional Strategic and Operational Plans.

In the period following the establishment of the RSB, there have been many noteworthy achievements by the Lanarkshire Board . Examples of collaboration over the years are:

24 - Board Membership | New College Lanarkshire New College Lanarkshire | New College Lanarkshire

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Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

There were also two particularly valuable interventions by the RSB to support the assigned college SLC over the 10 years of the Lanarkshire Board arrangements;

A Draft Regional Collaboration Plan was agreed in principle by the RSB at its meeting on the 7[th] October 2019 and that plan set out examples of existing shared good practice which included the following: Health and Safety Procedures; Student Associations’ Engagement; FED online Tool – data sharing; two way sharing of IT Systems and approaches; Internal verification approaches; Student recruitment collaboration with regard to the Application and Acceptance Policy; Credits and other transfers as appropriate; mutual exchange of financial information; regular joint Senior Finance staff meetings; joint approach on Government Banking and Brexit arrangements; joint working towards each Colleges BSL Action Plan; curriculum progression routes in Hospitality and Sport; joint submission ESF Skills template to SFC.

The draft plan also stated that exploring further possible developments in the alignment of systems and processes for mutual and regional benefit were actively under consideration. This included the identification and application of operational strengths in each College which could be shared. There was also scope for greater integration and collaborative value aimed at providing improvement and overall regional excellence for learners, staff and stakeholders alike. A number of opportunities were identified in the draft plan in the following areas: Curriculum, Stakeholder Benefit, Organisational Infrastructure and Finance. Commitment to some of these areas of collaboration has been variable over the past few years but remains a reasonable goal.

However, as noted above, SLC has its own autonomous Board within this structure and the SLC Board and College have their own aspirations in reflection of this autonomy. The model for the Lanarkshire Board relies, as partnerships do, on an alignment of the willing and separate aspirations can affect the effective delivery of partnership working. Historically, this was always an issue following the inception of the RSB in Lanarkshire.

In the SFC Report, that followed the evaluation of the Lanarkshire Board (as part of a wider review of all RSBs) dated 20[th] October 2020 it was stated that following SFC’s review it was their assessment that considering the regional structure, the RSB (the Lanarkshire Board) was meeting the core statutory requirements. However, it had not yet been able to evidence full impact and delivery on the additional benefits anticipated as a result of regionalisation. A key issue was that there was, in fact, no definition of the regional benefits that were expected beyond the delivery of the core statutory requirements.

The recommendation in the SFC report was as follows:

“We recommend that the RSB should be dissolved and both Colleges manage themselves as separate regional entities, forming a direct relationship with SFC. For clarity, we also encourage both Colleges to continue to be part of appropriate education, skills and economic recovery regional planning, and to build useful collaborations together or with other partners, and to foster strong economic planning partnerships at a Lanarkshire and wider Glasgow level.”

There was then initial activity with the RSB, the Scottish Government (SG) and the Scottish Funding Council to bring about a dissolution of the RSB’s but this was put on hold by the SG and the SFC during the COVID and post COVID years.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

On 16 May 2024, the Minister for Higher and Further Education announced in the Scottish Parliament that he wished to reform the RSBs for Glasgow and Lanarkshire college regions with his preferred option being to dissolve both. A consultation was subsequently launched in June 2024 with responses to the consultation due by 20[th] September 2024. The RSB response agreed that there should be a dissolution given the current position of key stake holders. SLC have also argued for dissolution. The result of the consultation is yet to be announced. The RSB will work with the SFC, Scottish Government, key stakeholders and South Lanarkshire College to implement the Scottish Government’s decision.

Statement of Responsibilities as the Board of NCL

The statement of the Board of Management’s responsibilities below refers to the Lanarkshire Board as the Board of NCL. The Board of SLC will approve the accounts and Board processes from SLC and give the Lanarkshire Board the assurances required for the consolidated accounts.

In accordance with the Further and Higher Education (Scotland) Acts 1992 and 2005, a Board of Management is responsible for the administration and management of an organisation’s affairs, including ensuring an effective system of internal control, and is required to present audited Financial Statements for each financial year.

The Board of Management is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the organisation and enable it to ensure that the Financial Statements are prepared in accordance with the Further and Higher Education (Scotland) Acts 1992 and 2005, the 2019 Statement of Recommended Practice and relevant Guidance Note: Accounting for Further and Higher Education, and other relevant accounting standards. In addition, within the terms and conditions of a Financial Memorandum agreed between the SFC and a Board of Management, the Board of Management, through its designated office holder, is required to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs and of the surplus or deficit and cash flows for that year.

In preparing these Consolidated Regional Financial Statements, the Board of Management has ensured that:

The Board of Management has taken reasonable steps to:

Page 46 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

The key elements of the system of internal financial control, which are designed to discharge the responsibilities set out above, include the following:

Any system of internal control can, however, only provide reasonable, but not absolute, assurance against material misstatement or loss.

Statement of Accounting Officer’s Responsibilities

As far as I am aware, the annual reports and accounts as a whole are fair, balanced and understandable. I confirm that I take responsibility for the annual report and accounts and the judgments required for determining that they are fair, balanced and understandable.

Page 47 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Section 3

Governance Statement

The Region is committed to exhibiting best practice in all areas of corporate governance and internal control. This summary describes the manner in which the organisation has applied the principles in The UK Corporate Governance Code, published by the Financial Reporting Council in June 2018, The Turnbull Committee (Turnbull Guidance) and The Revised Code of Good Governance for Scotland’s Colleges 2022. Its purpose is to help the readers of the Financial Statements understand how the principles have been applied.

The Lanarkshire Board Statement of Compliance

In the opinion of the Board of Management, the RSB complies with all provisions of The UK Corporate Governance Code and The Turnbull Guidance in so far as they apply to further education, and has complied throughout the period ended 31[st] July 2024. It is also the opinion of the Board of Management that the College and the RSB comply with The Revised Code of Good Governance for Scotland’s Colleges 2022, and it has complied throughout the said period. Further, the Financial Memorandum with the SFC also requires compliance with the Scottish Public Finance Manual (SPFM) and the governance guidance therein. In the opinion of the Board of Management, the SPFM has also been complied with for the period under review and up to the signing of the Financial Statements.

Governance Framework and Structure of Committees

The Board and Committees meet at least 4 times a year with the Remuneration, Nominations and the Chairs’ Committees meeting on an ad hoc basis. All Committees are formally constituted with Terms of Reference. The Committee structure is set out above in the Directors report. SLC Board members have attended both committee and Board meetings. The committees and the Board have received papers and reports from the assigned college SLC to enable the RSB’s regional governance role.

The Finance Committee recommend to the Lanarkshire Board the annual revenue and capital budgets and monitors performance in relation to the approved budgets.

The Remuneration Committee determines the remuneration of the Principal and the Executive Board.

The Lanarkshire Board’s Audit and Risk Committee (ARC) normally meets four times per annum, with the External and Internal Auditors in attendance. The Committee considers detailed reports together with recommendations for the improvement of the systems of internal control and management responses and implementation plans. It also receives and considers reports from the SFC (and other relevant bodies) as they affect the organisation’s business and monitors adherence to the regulatory requirements.

Whilst Senior Executives attend meetings of the ARC as necessary, they are not members of the Committee and the Committee may, at any time, meet with the Internal or External Auditors independently.

The NCL Executive Board (EB) receives reports and consider possible control issues brought to their attention by the operational units. The Executive Board also receives reports and recommendations from the four subCommittees of the EB, namely Finance, Professional Services, Staff, Students, Education and Learning & Teaching. These sub-Committees are designed for greater debate at a more distinct level to serve the more strategic approach of the full EB. The process applied in reviewing the effectiveness of risk management and internal controls is outlined on page 9 of the Performance Report.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

PERFORMANCE REPORT (continued)

The EB and the ARC also receive reports from Internal Audit, which include recommendations for improvement. The Lanarkshire Board’s ARC role in this area is confined to a high- level review of the arrangements for internal control. In December of each year, the Lanarkshire Board consider a report from the ARC regarding its annual assessment.

The Lanarkshire Board Committee Structure

The standing Committees of the Board are as follows:

Curriculum Student Affairs and Outcomes Committee - CSAO The Audit and Risk Committee – ARC The Resources and General Purposes Committee – RGP The Finance Committee -FC

The ad hoc Committees are as follows:

The Chairs’ Committee - CC The Nominations Committee - NC The Remuneration Committee - RC

Board Members

The Board Members who served and attended during the period from the 1[st] August 2023 to 31[st] July 2024 are set out below. This table also covers changes up to the September/October 2024 Board Cycle. This includes the Board Committees on which members serve. The Board attendance rates are based on the numbers of Board meetings that it was possible for the Board member to attend and those actually attended. The student presidents appointed in July 2024 have only been able to attend one meeting since appointment.

Board Member Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served
Chair of the Board
by public
appointment by
Scottish Ministers
from 11thAugust
2019 to 10thAugust
2023		 11thAugust 2019.
Term renewed by Scottish
Ministers from 11thAugust
2023 to 10thAugust 2027.		 83% Attends
meetings
of all
committees
Board Member 28thAugust 2023.
Term to 27thAugust 2026.		 83% RGP
Chair of the Finance
Committee		 27thAugust 2015.
Term renewed by Scottish
Ministers for four years
from 28thAugust 2019		 Resigned from
the Board on
the 27thAugust
2023.		 N/A FC
Board Member 25thOctober 2019.
Term renewed by Scottish
Ministers from 25th
October 2023 to 24th
October 2027.		 83% Chair of the FC
FC, CC and RC
SLC Student
President		 1stJuly 2024 100% CSAO

Page 49 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Board Member Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served
SLC Support Staff
Member		 1stOctober 2021 83% Board only
Board Member 27thAugust 2015.
Term renewed by Scottish
Ministers for four years
from 28thAugust 2019		 Resigned from
the Board on
the 27thAugust
2023.		 N/A ARC
Board Member and
Chair of the Audit &
Risk Committee
from 2ndSeptember
2019		 13thMarch 2019.
Term renewed by Scottish
Ministers from 12thMarch
2023 to 13thMarch 2027.		 100% Chair of the
ARC
ARC, CC, RC
and NC
Senior Independent
Member of the
Board.		 27thAugust 2015.
Term renewed by Scottish
Ministers for four years
from 28thAugust 2019.
Re-applied for Board
Member position and
appointed from the 28th
August 2023 to the 27th
August 2027.		 83% Chair of the
RGP
RGP and CC
RC and NC
NCL Student
President		 1stJuly 2023 Resigned 12th
September
2023.		 N/A CSAO
NCL Teaching Staff
member		 Elected from 14th
September 2022		 83% CSAO
Board Member 28thAugust 2023.
Term until 27thAugust
2006.		 50% RGP
NCL Student
President		 20thNovember 2023 30thJune 2024 60% CSAO
Chair of SLC 18thMarch 2024 100% Board only
Chairing Member 30thNovember 2021 18thMarch 2024 33% Board Only
NCL Support Staff
Member		 24thAugust 2015.
Re-elected for four years
in contested election on
6thSeptember 2019.
Re-elected on 22ndAugust
2023 for fouryears.		 100% FC
Board Member 28thAugust 2023.
Term until 27thAugust
2026.		 100% FC
NCL Student
President
Board Member
appointed by
Scottish Ministers		 1stJuly 2021.
Re-elected 1stJuly 2022.
28thAugust 2023 to 27th
August 2025.		 100% CSAO
ARC

Page 50 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Board Member Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served		 Designation
Appointed/ Re-appointed
Resignation
Board
Attendance
Committees
Served
Board Member 13thMarch 2019.
Term extended by Scottish
Ministers to 31stJuly2023.		 Resigned from
the Board 27th
August 2023.		 N/A ARC
SLC Principal 3rdApril 2023 100% ARC, CSAO
and FC
NCL Principal and
Chief Executive
Chief Officer of the
Regional Strategic
Body		 11thNovember 2019 83% Member of
the CSAO, RGP
and FC.
Attends ARC
and CC and RC
byinvitation.
Board Member 25thOctober 2019.
Term renewed by Scottish
Ministers from 25th
October 2023 to 24th
October 2027.		 83% CSAO and FC
Board Member 28thAugust 2023.
Term until 27thAugust
2006.		 83% ARC
Board Member 25thOctober 2019.
Term renewed by Scottish
Ministers from 25th
October 2023 to 24th
October 2027.		 100% ARC
SLC Academic Staff
Member		 1stJune 2022 17% CSAO
Board Member 28thAugust 2023.
Term until 27thAugust
2026.		 83% CSAO
NCL Student
President		 1stJuly 2024 100% CSAO
Board Member –
Chair of the CSAO
Committee from
13thNovember
2017		 31stJanuary 2017.
Term extended by 4 years
by Scottish Ministers from
1stFebruary 2021		 83% Chair CSAO
CSAO, CC, RC
and NC
SLC Student
President		 1stJuly 2023 30thJune 2024 80% CSAO

A full Register of Interest can be found through the college website[25] . All non-executive positions within the Board are voluntary and unpaid with the exception of the Chair who claims an allowance for hours worked.

25 - Board Membership | New College Lanarkshire New College Lanarkshire | New College Lanarkshire

Page 51 of 108

New Colle e Lanarkshire ACCOUNTABILifYREPORT tt*ntinued Executive Board The Executive 8oard IEBI is responsible for the day-to-day management of the College. The EB membership for 202312024 is set out in the tabla below. All EB members atténd meatings of the Board. They also attend the Committees relevant to their role and this is also shown in the table below. Nam¢ Deslgnatlon Commltt¢es Attended Principal and Chief Executive Mèmbèr of all standing Committees except the Audit and Risk Committè8. Attends Chair's Committee and s818ct8d agonda itams on R8mun8ration Committè• by invitation. Attends all standin8 Committe•s. Chairs, Committ¢• by invrtation. Attends all standing committ88s. Chairs, Committee by invitation. ARC, FC and RGP by invitation Attends th8 CSAO Doputy Principal for Student5 and th• Curriculum D¢puty Principal for Professional Services (appointed 911124 acting post, 1213124 permanent postl Chièf R•sourc•s Officer Assistant Principal.. Education and student Success Collo80 Registrar Attends tho RGP Chief Transformation Officer (left 31 March 20241 Attended th• RGP and ARC Corporatel Flnanclal Strate8y- The Forward Plan The Board of Management considored and approved a proposed Forward Plan at a special meeting on the 5th February 2024. The plan sets Out the following.. The sale of non corè assets following the sale of Donaldson Placè in Kirkintilloch, thè closure of the Halls of Residence at Motherwell, the closure of the Hamilton Campus and the proposed disposal of the land for tha nursery at Coatbridge. A further Voluntary Severance Scheme IVSI. A fresh approach to student recruitment with more active engagement through the websit8, partnership links and use of data and predirtive modelling and smoothing the applicant èxpèrièncè. Improving student retention thorough promoting the holistic wellbeing of students, mitigating against student withdrawals at college and programme level, data and evidenced based information to address specific challenges and promote student acces5 and a new Curriculum Delivery Planning Model. Development of non SFC Credit in¢ome- e.g. the undergraduate xhool in partnership with UWS. Closer relationships with university partners. Page 52 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Statement of Internal Control

A College’s Board of Management is responsible for the organisation’s system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Lanarkshire Board is of a view that there is an ongoing process for identifying, evaluating and managing the significant risks that have been in place for the period covered by the Financial Statements and up to the date of the approval of the Financial Statements. The systems of internal control have been in place for the year under review and up to the date of the Financial Statements.

The Audit & Risk Committee and the Finance Committee continuously review and oversee the College’s system of internal control. The Board also reviews internal controls and wider effectiveness through the annual selfevaluation. The day-to-day responsibility for maintaining a sound system of internal control has been delegated by the Board to the Principal & Chief Executive.

Internal audits are a valuable independent assessment and source of assurance of the College’s operational effectiveness. They help identify strengths, weaknesses and risks and these findings support continuous improvement across the College.

The College worked in partnership with Wbg to plan and conduct a programme of internal audits throughout the year and reported findings to the ARC. The recommendations are from internal audits graded low, medium or high. Each audit is also graded with one of four assurance levels; Strong, Substantial, Weak and No or very limited controls. During 2023/24, as shown in the table below, 6 internal audits were undertaken in areas across the College and reported to the Committee.

Page 53 of 108

New Colle e Lanarkshire ACCOUNTABILifYREPORT ttntinued Lanarkshire ARC Internal Audit Reports Commlttee Date Internal Audlt Report Tltle Recommendatlons A55urance Level Il, September 2023 Sustainability and Carbon Management staff and Room Utilisation Report Follow Up Report 3 low level Strong 2 high 4 madium 2 low. 18 out of 31 implem•nt¢d, 9 partially implemented. Inot 3su ersedod W•ak Substantial 19, F¢bruary 2024 Internal Audit Progress Réport- listing of Audit R•port issued which would com• to tha noxt me8tini Comm&rcial and Ext¢rnal Partn•rship Costing Mod•ls Curriculum Dglivory Plan 13 May 2024 2 medium and I low grado I modium level Substantial Substantial HR Payroll 2 low 8rad• Strong Cyber Security 3 medium and 2 low grade 23 recommendations made which have been fully impl8ment8d, 2 recommendations are partially impl8m8ntod Inot yet duè per r•vised duo dat•l, while 7 are partially implemented and beyond their due date 24125 to 26127 Substantial nd 2 Septembor 2024 Follow Up Roviow Substantial Internal Audit Plan Th• "high" recommendations in relation to Staff and Room Utilisation were subsequently regraded to "mèdium" li It was r8commend8d that th8 Coll888 conducted internal audits twico-yearly to bring room utilisation to an acceptable level. The November 2024 audit has taken place and the second audit is planned for February/March 2025. 211 It was recommended that the College links the Payroll and Celcat systems after obtaining a satisfactory number of references. NCL is considering the viability of integrating the Payroll System and Celcat Itimetablin81 system. Significant research has been undertaken into the technical viabilrty of the recommended approach. The College has not been able to identify another college or universfcy in Scotland that has attempted this, and through the Celcat Users Group only one other college in the UK has been identified which is considering this approach. A pilot is currently being conducted at that college. Page 54 of 108

New Colle e Lanarkshire ACCOUNTABILifYREPORT tt*ntinued The Systems Development Team is awaiting feedback on this pilot before a decision is made on whether any potential benefits would justify tho significant investment rèquired. In tha interim, significant work has been undertaken to develop and implement a new temporary staff contract approvallpay claim/payroll system which is op8ratin8 successfully. The Managemant of Rlsk The Roglonal Strat8glc Rlsk RegSst8r is pr8s8nt8d to each meeting of the ARC and to the Board. The R8gistor is reviewed every quarter through meetings of the Regional Strategic Risk Management Group, which includes officars from SLC, to produca a Ragional Risk Register. SLC'S register is included in the Regional Registar and is reported to th¢ Lanarkshir¢ Board Committee. Risks are considered by the group and the regist¢r has summary which highlights now risks, risks that hav8 eithor gone up or down and risks which are high 18vèI. The risk regist¢r shows th¢ level of assessed risk for each risk and where there are control artion plans in place. There are a total of 20 Strategic Risks logged as at the Règional Strategic Risk Management Group IRSRMGI as on the 21" August 2024. Two risks are above the groups threshold lèvel and are, therefore, subject to Control M8na8ement Plans.. Rlsks wlth Control Manaiem•nt Plans Financial Risk A "Unabl¢ to maintain operating bud8•t whil¢ d•liv•ring a high quality, rèlevant and responsiv• education. very high, Mltl8atlon Optimise Crodit and income stream cost control delivery,. Optimisation of staffing requir•m•nts in line with Stratagic Airns and Operational Plans,. Continuous dialogue betw••n •xocutive, staff and th• student body,. Implementation and monitoring of Regional Effici•ncies li. procur¢mentl,' Ongoing planning dialogue with SFC,. Lobbying through Principals, and Chairs, Forums. Prioritise available funding to tackle statutory & •ssontial planned, preventative & back-log maintenance, Utilis8 Procur8m8nt & Budgeting policies to ensure sound financial planning, monitoring & control. Work with stakeholders to ensure 8ff8Ctive & •ffici8nt targoting of investment in the built environment & infrastructure. Estates Strategy & Oporational Planning. Scènario lannin Financial D. inability to 50cure appropriate levels of funding to rospond to oporational and strategic priorities" very hiih. The risks from th8 global supply chain continues to b8 monitored as does the costs of gas and electricity. Risks.. the ongoing cost5 include legal costs and these costs equate to around 30% of the overall expenditure on the cladding system for the Motherwell Campus. SLC RegSster.' There are a total of 16 risks registgred. There are 5 risks that have moved up12,3,5,12 and 151 and 2 risks have moved down110 and 111 The remaining 9 ri5k5 remain the same a5 at April 2024. SLC Finan¢ial Statèments note two Significant control issueslweaknesses.. VAT miscalculation in 2018 resulting in a shortfall which has been corrected in 2023124 statements and an issue With pension contributions, outlined further in the Internal Auditor Opinion overleaf. Page 55 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Internal Audit Opinion

We are satisfied that sufficient internal audit work has been undertaken to allow us to draw a conclusion as to the adequacy and effectiveness of the Region’s risk management, control and governance processes.

In our opinion New College Lanarkshire did have adequate and effective risk management, control and governance processes to manage its achievement of the Region’s objectives at the time of our audit work. In our opinion, the Region has proper arrangements to promote and secure value for money.

The overall opinion provided by the Internal Auditors of South Lanarkshire College (Henderson Loggie) was:

“In our opinion, with the exception of the issues around historic pension calculations, the College has adequate and effective arrangements for risk management, control and governance. Proper arrangements are in place to promote and secure Value for Money. This opinion has been arrived at taking into consideration the work we have undertaken during 2023/24 and in the prior years since our initial appointment.”

The South Lanarkshire College Annual Report stated that the historic pension calculations issues related to a separate consultancy review undertaken in February 2024 which highlighted in their view that there had been a systemic breakdown in the application of the pension contribution bands for part-time employees employed by the College who were enrolled in both the SPF and SPPA teachers’ scheme. As a result of this initial review further work has been commissioned by the College to quantify the scale of errors and to calculate the individual amounts due for repayment to members of the pension schemes. As a result, additional work has been commissioned by the College around pension advances.

The Henderson Loggie Space Management / Room Utilisation Business Process Review, which didn’t contain an overall assurance level, included one high priority area for improvement in relation to the Estates Strategy being outdated.

Our fieldwork for New College Lanarkshire was carried out between October 2023 and September 2024, and we have not undertaken any further internal audit assignments at the time of this report. The fieldwork for South Lanarkshire College was undertaken by Henderson Loggie between September 2023 and October 2024.

Regional Duties

The total chargeable costs arising in relation to the Regional College Board for the Year Ended 31[st] July 2024 were £158k (2022/23 £182k). SLC was recharged £50k (2022/23 £65k). The SFC provided £nil (2023 £nil) to offset these costs.

Two Posts of the NCL Executive Board include a payment in relation to Regional duties.

No other member of the NCL or SLC College Executive Teams received any payment in relation to Regional duties, other than reimbursement of expenses.

Page 56 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Going Concern

The Lanarkshire Board’s ARC Committee and the Board have consulted with Audit Scotland, the SFC and with the charitable body OSCR on the issue of Going Concern given the harsh financial environment the Lanarkshire Region and the overall college sector is experiencing. This is within the context of good governance and reassurance for the Board.

The ARC and the Board noted the views from Audit Scotland, OSCR and the SFC in the papers submitted to the Committee. OSCR have advised that this issue was a matter for the college’s auditors and for the regulator i.e. SFC. In essence, as confirmed by Audit Scotland the College as a public body can continue to use the Going Concern concept unless there is any doubt around the continuation of service, irrespective of who delivers that service.

The Board of Management is, therefore, satisfied that on this basis it can continue in operation for the foreseeable future and for this reason the going concern basis continues to be adopted in the preparation of Financial Statements.

Data Related Incidents

Details of Data Related Incidents during the year for NCL and SLC are disclosed in the Accountability Report, Section 1: Directors’ Report, page 44.

Disclosure of information to Auditors

The Lanarkshire Board members who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the Colleges Auditors are unaware; and each Board member has taken all the steps that they ought to have taken to be aware of any relevant Audit information and to establish that the Colleges Auditors are aware of that information.

Page 57 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Remuneration and Staff Report

Introduction

The RSB is required to prepare and publish within its financial statements an annual Remuneration Report under the Government Financial Reporting Manual (FReM) issued by the Scottish Government.

Remuneration Policy

The Board of Management has adopted the key principles and policies set out in the Guidance Note on the Operation of Remuneration Committees in Scottish Higher Education (Committee of Scottish Chairs August 2015).

Remuneration and Staff Report

The RSB takes the view that the Principal, Deputy Principals and members of the Executive Board of NCL and the Principal and Vice Principals of SLC are the key salaried members of the RSB with a strategic position within the organisation who influence the decisions of the RSB as a whole, and only they and any non-executive members of the Board of Management should be the subject of the Remuneration Report. Other than the Chair, none of the non-executive members of the Board of Management receives a salary or pension as a result of their position with the RSB, so only the Principals, the NCL Deputy Principals and Executive Board, the SLC Depute Principal and Chair of the RSB are shown below.

The sections marked “audited” in this Remuneration and Staff Report have been audited by Audit Scotland. The other sections of the Remuneration and Staff Report were reviewed by Audit Scotland to ensure that they were consistent with the financial statements. The Emoluments of higher paid members of staff in Note 7 (Analysis by pay bands) also forms part of the requirements of the Remuneration and Staff Report disclosures and has been audited.

Page 58 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Remuneration and Staff Report

Senior Officials Remuneration and Pension Entitlement (audited)

Remuneration Year ended 31st July 2024 Year ended 31st July 2023
Name Role Salary Pension Total Salary Pension Total
Contribution Contribution
£’000 £’000 £’000 £’000 £’000 £’000
Chair, 20-25 0 20-25 30-35 0 30-35
Lanarkshire
Board
Principal, NCL 130-135 30-35 160-165 130-135 30-35 160-165
Deputy 100-105 25-30 120-125 100-105 20-25 120-125
Principal, NCL
Deputy 70-75 15-20 90-100 N/A N/A N/A
Principal, NCL
Assistant 75-80 15-20 90-100 75-80 15-20 90-100
Principal
Chief 95-100 10-15 115-120 95-100 15-20 115-120
Resources
Officer
Chief 90-95 10-15 105-110 75-80 15-20 95-100
Transformation
Officer
College 75-80 10-15 90-95 75-80 10-15 90-95
Registrar
Principal, SLC 105-110 25-30 130-135 95-100 20-25 120-125
Vice Principal, 55-60 5-10 60-65 N/A N/A N/A
SLC
Vice Principal, 45-50 10-15 55-60 N/A N/A N/A
SLC
Principal, SLC 0 0 0 80-85 15-20 95-100
Principal, SLC 0 0 0 80-85 0 80-85

Notes to remuneration table:

January 2024.

The Remuneration Committee of NCL determines the remuneration of the Principal and the Executive Board. The Remuneration Committee of SLC determines the salary of the Principal and the Senior Management Team.

Page 59 of 108

New Colle e Lanarkshire ACCOUNTABILifYREPORT tt*ntinued Salary Salary includes pensionable and non-pensionable payments. It does not include amounts which are reimbursoment of expenses directly incurred in tho performance of an individual's duties, employers, national insurance contributions or employers, pension contributions. In this report this is also referred to as remun8ration. Th8 following information has béan audited. Staff numbers and costs (audlt8dl Yaar to Jul 2024 Year to Jul 2023 FTE Total Cost Total cost Staff on p8m)anent contracts Staff on temporary Contracts 1,098 35 1,133 51,806 3,355 55,161 1.128 54,786 4,290 59,076 1,197 M¢dlan and Range of Remuneratlon- NCL laudlt•dl The banded r•mun8ration of th8 highest paid senior post hold8r in th8 Region in the financial year 2023124 was £130k to £135k12022123 £130k to £135k annual equivalentl. This was 3.1 times12023 3.4 times) th• median remun•ration of the workforce which was in the band £40k to £45k for NCL and 3.8 times for SLC whlch was in th• bandlng £30k to £35k12023 3.9 tim•$l. Pay ratlo Snform•tSon The 2024 m$dian pay was £41,853 therefor¢ thor¢ was an approximate increas• of 6.6% on the m•dian salary point. Th8 Colle88 b81ieves that the median pay ratio for the financial period reflècts the pay, rewards and progr•$sion policy for èmployees as a whol•. Th¢ r¢sult rofl¢cts the NCL voluntary sevèrancè scheme staff reduction offset by the 3-year backdated pay award to Professional S8rvic8s staff paid in June 2024. Thern has be¥n no increase to teaching salari¥s as at 31" July 2024 as the pay award had not b•en settled. All fl8ur•$ oxclud• p•nslon contrlbutlons 2024 2023 Chan8• In y•ar Salary & Allowanc•s of hiBh8St paid employ•8 130-135 130-135 2024 4.5'.1 2023 5.4'.1 Change In year 116.671 15.891 25 p8rcenti18 pay ratio 50 percentile Imedianl pay ratio 75 percentile pay ratio 3.2'.1 3.1..1 3.4'.1 3.1..1 Salary of staff member in the 25 percentile Salary of staff member in the 50 percentile Salary of staff member in the 75 percentile Salary & Allowances of employees as a whole Salary & Allowance5 Qf lowest paid employee 30 42 25 39 43 41,139 20 20.00 7.69 41,398 22 0.63 10.00 Page 60 of 108

New Colle e Lanarkshire ACCOUNTABILifYREPORT tt*ntinued Median and Range of Remuneration-SLC {auditedl The banded remuneration of the highest paid official in the institution in the financial year 2023124 was £110-115k12022123'. £110-£115kl. This was 3.24 timos12022123 3.17 timasl th8 median remuneration of the workforce which was £33,99012022123 £34,6861. The table below excludes members of staff who did not work a full in th8 years of reviow. All flgures exclude pen51on contrlbutlons. 2024 £'ooo 110-115 2023 £'o 110- 115 Chanze In year Salary & Allowances of highest paid employee 2024 4.37 2023 4.23 3.17 2.54 Chan8• In y•ar 3.30 25th percentile pay ratio 50 percantile (Median) pay ratio 75 p•rc¢ntil• pay ratio 3.24 2.54 2.20 Salary of staff member in the 25 p¢rc¥ntile Salary of staff m?mb$r in th¢ 50, p¢r¢ontiltr Salary of staff m8mb8r in the 75 p8rcenti18 Salary & Allowancès of employees as a whole Salary & Allowances of lowest paid employee 25 34 43 12,250 21 26 35 43 14,732 20 13.851 12.861 116.851 Accrued Penslon Benellts Pension benefits for employees aro providod through the Scottish Teacher's Pension Sch•m8 ISTPSI 2015, dèfined beft•fit s¢h•m•, which is notionally fundèd, and th¢ Local Governmont Pènsion Sehtmt ILGPSI, both of which were contracted out of State £arnings-R8lated Pension Scheme until April 2016. Both STPS and LGPS conv¢rted from final salary to carè¢r average schomes, though providing protection for bonefits built up prior to that date. This means that pension benefits going forward are basèd on avèrage earnings over the term of membership of the scheme, accru¢d based on the number of years membership of th• schemes. Pension benefits are provided to senior officials on the same basis as all other staff. The STPS sch8m8 operates a normal retirement age which is linked to your state pènsion age, although members of the previous Scottish Teacher's Superannuation Scheme who joined prior to l April 2Lh)7 have pr8S8rv8d r8tir8mont a88 of 60 years. For the LGPS schem8, th• normal r•tir8m8nt a80 IS stat• pension a80 (minimum 65 years). Contribution rates are sèt annually for all èmployees, and further dètails can bÈ found on thè rèspèctive websites at htt ensions. ov.scot teachers and www.s fo.or .uk. There is no automatic entitlement to lump sum. Members may opt to give up Icommutel pension for a lump sum up to the limit set by the Finance Act 2004. The accrual rate guarantees a pension based on career average pensionable salary and years of pènsionable servi¢e. Page 61 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Senior Officials Pension (audited)

Pension benefits are provided to senior officials on the same basis as all other staff. The accrued pension benefits for senior officials currently in post are set out in the tables below.

Accrued Accrued lump Real increase Real increase
Real increase
pension at sum at in pension 1st in lump sum
pension age at pension age at August 2023-
1st August
Name 31st July 2024 31st July 2024 31st July 2024
2023-31st July
2024
£’000 £’000 £’000 £’000
10-15 0-5 0-2.5 0-2.5
50-55 145-150 0 0
45-50 40-45 3-3.5 0-2.5
20-25 55-60 0-2.5 0-2.5
35-40 105-110 0 0
0-5 0-5 0-2.5 0-2.5
15-20 45-50 0-2.5 0
5-10 0 0-2.5 0-2.5
0-5 0 0-2.5 0-2.5
20-25 55-60 0-2.5 0-2.5
CETV at CETV at Real increase/(decrease) in
Name 31st July 2024 31st July 2023 CETV*
£’000 £’000 £’000
153 180 0
1,302 1,404 0
878 738 140
349 382 0
962 991 0
84 53 31
423 461 0
95 51 43
20 2 18
490 460 30

These benefits have accrued over the duration of the employees’ membership of the schemes in which time contributions may have been transferred from previous employers and by the employees themselves. While the Chair is remunerated through claiming daily allowances, he is not a member of a College pension scheme.

Page 62 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Cash Equivalent Transfer Value (CETV)

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time.

The value of the accrued pension benefits has been calculated on the basis of the age at which the person will first become entitled to receive a pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total LGPS or STPS service and not just their current appointment.

In considering the accrued pension benefits figures the following contextual information should be taken into account:

Real Increase in CETV

*This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Compensation for Loss of Office (audited)

47 employees left under voluntary redundancy exit terms during the period July to August 2024 having legally agreed terms prior to 31[st] July 2024 (2022/23 60 employees). They received a compensation payment of £1,171k (2022/23 £1,286k).

Exit package cost band
<£10,000
£10,000 - £25,000
£25,000 - £50,000
£50,000 - £100,000
£100,000 - £150,000
£150,000 - £200,000
Total number of exit
packages
Total cost		 Number of
compulsory
redundancies
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil		 Number of other
agreed departures
(including any
voluntary
redundancies)
7
27
18
1
Nil
Nil
53
£1,171k		 Total number of exit
packages by cost
band
7
27
18
1
Nil
Nil
53
£1,171k

Page 63 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

ACCOUNTABILITY REPORT (continued)

Sickness Absence and Staff Turnover

Sickness Absence and Staff Turnover figures exclude the Amcol Scotland Limited subsidiary.

Sickness

New College Lanarkshire
Session
% of Total
absence
Total absence
rate
2023/24
6.5%
Long-Term
60.3%
Short-Term
39.7%
2022/23
6.84%
Long-Term
64.2%
Short-Term
35.8%		 South Lanarkshire College

% of Total
absence
Total
absence rate
5.95%
68.9%
31.1%
6.25%
84.48%
15.52%

Short-term absence at NCL is defined as 20 calendar days or less, while South Lanarkshire use a 15 working day definition. For this reason, a regional indicator has not been shown.

Turnover

Permanent turnover for NCL is 8.15% and SLC was 9.54%.

Gender Breakdown at year end 31[st] July 2024

Gender Headcount FTE
F 758 (62.7%) 376 (39.6%)
M 450(37.3%) 574(60.4%)
Total 1,208(100%) 950

Gender Breakdown at year end 31[st] July 2023

Gender Headcount FTE
F 824 (63.1%) 623 (61.3%)
M 481(36.9%) 393(38.7%)
Total 1,305 1,016

Gender Breakdown (Region) at year end 31[st] July 2024

F M Total
Senior Officials 12 9 21
Other 746 441 1,187
Total 758 450 1,208

Page 64 of 108

New Colle e Lanarkshire ACCOUNTABILifYREPORT tt*ntinued Facility fime In accordance with the Trade Union (Facility Time Publication Requirements) Regulations 2017. the Colleges providèd the following support through paid facility time for union officials working at the Colleges during th8 year ended 31" July 2024. Relevant Unlon Offlclals Numb•r of •mploy••g who w•r• r•lwant unlon ¢)fflclals durlng tho relevant porlod: 25 Full-tlm• •qulval•nt •mploy•• numb•r. 2.49 Not• that NCL now recognisos thre• unions, EISIFELA, UNISON and UNITE. Percentage of time spent on facility time Perc￿ta8•. Numb•r of •mploy••$: 1%.50% 51%- 99% 25 P•rcentag• of pay bill $p¢nt on facility tim• Total cost of facility tim•: Total pay bill.. Percentage of the total pay bill spent on facility time.. £lllk £55,161k 0.20% Paid Trade Union •¢tivities Time spènt on Trade Union activities as percentag¢ of total paid facility time hours.. Page 65 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

Independent auditor’s report to the Board of Management of New College Lanarkshire, the Auditor General for Scotland and the Scottish Parliament

Reporting on the audit of the financial statements

Opinion on financial statements

We have audited the financial statements in the annual report and accounts of New College Lanarkshire and its group for the year ended 31 July 2024 under the Further and Higher Education (Scotland) Act 1992 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Consolidated and College Statement of Comprehensive Income, Consolidated and College Statement of Changes in Reserves, Consolidated and College Statement of Financial Position, and the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In my opinion the accompanying financial statements:

Basis for opinion

I conducted my audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Auditor General for Scotland. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed by the Auditor General on 2 December 2022. My period of appointment is five years, covering 2022/23 to 2026/27. I am independent of the college and its group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the college. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern basis of accounting

I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the college and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

Page 66 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the college and its group. However, I report on the college’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website.

Risks of material misstatement

I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon.

Responsibilities of the Board of Management for the financial statements

As explained more fully in the Statement of the Board of Management's Responsibilities, the Board of Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Board of Management determines 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 Board of Management is responsible for assessing the ability of the college and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the college and its group.

Auditor’s responsibilities for the audit of the financial statements

My 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 my 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 decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include:

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the college’s controls, and the nature, timing and extent of the audit procedures performed.

Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the

Page 67 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report.

Reporting on regularity of expenditure and income

Opinion on regularity

In my opinion in all material respects the expenditure and income in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.

Responsibilities for regularity

The Board of Management is responsible for ensuring the regularity of expenditure and income. In addition to my responsibilities in respect of irregularities explained in the audit of the financial statements section of my report, I am responsible for expressing an opinion on the regularity of expenditure and income in accordance with the Public Finance and Accountability (Scotland) Act 2000.

Reporting on other requirements

Opinion prescribed by the Auditor General for Scotland on the audited parts of the Remuneration and Staff Report

I have audited the parts of the Remuneration and Staff Report described as audited. In my opinion, the audited parts of the Remuneration and Staff Report have been properly prepared in accordance with the Further and Higher Education (Scotland) Act 1992 and directions made thereunder by the Scottish Funding Council.

Other information

The Board of Management is responsible for the other information in the annual report and accounts. The other information comprises the Performance Report and the Accountability Report excluding the audited parts of the Remuneration and Staff Report.

My responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon except on the Performance Report and Governance Statement to the extent explicitly stated in the following opinions prescribed by the Auditor General for Scotland.

Page 68 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

Opinions prescribed by the Auditor General for Scotland on the Performance Report and Governance Statement

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

Matters on which I am required to report by exception

I am required by the Auditor General for Scotland to report to you if, in my opinion:

I have nothing to report in respect of these matters.

Conclusions on wider scope responsibilities

In addition to my responsibilities for the annual report and accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice are set out in my Annual Audit Report.

Use of my report

This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.

Senior Audit Manager Audit Scotland 4[th] Floor South Side The Athenaeum Building 8 Nelson Mandela Place

Glasgow G2 1BT

11 December 2024

Louisa Yule is eligible to act as an auditor in terms of section 21 of the Public Finance and Accountability (Scotland) Act 2000.

Page 69 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

CONSOLIDATED AND COLLEGE STATEMENT OF COMPREHENSIVE INCOME For the year ended 31[st] July 2024

or the year ended 31st July 2024
Income
SFC grants
Tuition fees and education contracts
Other income
Donations and endowments
Investment income
Total Income
Expenditure
Staff costs
Exceptional staff costs
Other operating expenses
Depreciation & amortisation
Transfer of heritage asset
Impairment loss on tangible fixed assets
Interest and other finance costs
Total expenditure
Surplus/(Deficit) before other gains/(losses)
Gain/(loss) on disposal of fixed assets
Surplus/(Deficit) before tax
Taxation
Surplus/(Deficit) for the year
Other Comprehensive Income
Unrealised (deficit)/surplus on revaluation of
land and buildings
Actuarial gain/(loss) in respect of pension
schemes
Total comprehensive income for the year
Represented by:
Restricted comprehensive income for the year
Unrestricted comprehensive income for the year		 Note
2
3
4
5
6
7
7
8
11
11
11
9
10
11
24		 Region
2024
£’000
57,773
8,903
8,108
19
130
74,933
55,161
1,437
17,467
6,734
106
152
(34)
81,023
(6,090)
68
(6,022)
-
(6,022)
3,031
(33)
(3,024)
-
(3,024)
(3,024)		 College
2024
£’000
42,727
5,832
3,169
19
45
51,792
38,362
1,385
11,875
4,973
106
-
2
56,703
(4,911)
68
(4,843)
-
(4,843)
3,811
(86)
(1,118)
-
(1,118)
(1,118)		 Restated
Region
2023
£’000
62,263
8,587
8,165
22
723
79,760
59,077
2,615
17,140
6,620
-
-
7
85,459
(5,699)
-
(5,699)
-
(5,699)
8,189
(16,303)
(13,813)
-
(13,813)
(13,813)		 Restated
College
2023
£’000
46,524
5,565
3,861
22
528
56,500
41,617
2,300
12,513
5,148
-
-
1
61,579
(5,079)
-
(5,079)
-
(5,079)
8,189
(14,148)
(11,038)


-
(11,038)




(11,038)

In accordance with the Statement of Recommended Practice – Accounting for Further and Higher Education Institutions, Bursary and Discretionary funds have been excluded from the income and expenditure account.

The Statement of Comprehensive Income is prepared under the FE/HE SORP.

Colleges are also subject to Central Government accounting rules but the FE/HE SORP does not permit Colleges to include Government non-cash allocations for depreciation in the Statement of Comprehensive Income. Note 27 provides details of the adjusted operating position on a Central Government accounting basis.

Page 70 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

CONSOLIDATED AND COLLEGE STATEMENT OF CHANGES IN RESERVES

REGION
Balance as 31st July 2022
Restate revaluation of land reclassed
Amortisation of operating lease to date
Surplus/(deficit) from statement of comprehensive income
Actuarial gain/(loss) in respect of pension scheme
Transfer between revaluation and unrestricted reserve
Revaluation of land and buildings
Donation to restricted reserve
Release of restricted capital funds spent in year
Total comprehensive income for the year
Balance at 1st August 2023
Surplus/(deficit) from the statement of comprehensive
income
Actuarial gain/(loss) in respect of pension scheme
Transfer between revaluation and unrestricted reserve
Revaluation of land and buildings
Release of restricted capital funds spent in year
Total comprehensive income for the year
Balance at 31st July 2024
This includes the Pension Asset Cap adjustment (note 24)
COLLEGE
Balance at 31st July 2022
Restate revaluation of land reclassed
Amortisation of operating lease to date
Surplus/(deficit) from the statement of comprehensive
income
Actuarial gain (loss) in respect of pension scheme
Transfer between revaluation and unrestricted reserve
Revaluation of land and buildings
Donation to restricted reserve
Release of restricted capital funds spent in year
Total comprehensive income for the year
Balance at 1st August 2023
Surplus/(deficit) from the statement of comprehensive
income
Actuarial gain (loss) in respect of pension scheme
Transfer between revaluation and unrestricted reserve
Revaluation of land and buildings
Release of restricted capital funds spent in year
Total comprehensive income for the year
Balance at 31st July 2024*		 Restated
Income and Expenditure Account
Restricted
Unrestricted
£’000
£’000
2
39,944
-
4,902
-
(795)
2
44,051
-
(5,699)
-
(16,303)
-
2,673
-
-
8
-
-
-
8
(19,329)
10
24,722
-
(6,022)
-
(33)
-
2,221
-
-
-
-
-
(3,834)
10
20,888
Restated
Income and Expenditure Account
Restricted
Unrestricted
£’000
£’000
2
29,752
-
4,902
-
(795)
2
33,859
-
(5,079)
-
(14,147)
-
1,951
-
-
8
-
-
-
8
(17,275)
10
16,584
-
(4,843)
-
(86)
-
1,718
-
-
-
-
-
(3,211)
10
13,373		 Restated
Revaluation
Reserve
£’000
76,520
-
-
76,520
-
-
(2,673)
8,188
-
-
5,515
82,036
-
-
(2,302)
3,031
-
729
82,765
Restated
Revaluation
Reserve
£’000
51,642
-
-
51,642
-
-
(1,951)
8,189
-
-
6,238
57,880
-
-
(1,799)
3,811
-
2,012
59,892		 Total
£’000
116,467
4,902
(795)
120,574
(5,699)
(16,303)
-
8,188
8
-
(13,806)
106,768
(6,022)
(33)
(81)
3,031
-
(3,105)
103,663
Total
£’000
81,397
4,902
(795)
85,504
(5,079)
(14,147)
-
8,189
8
-
(11,030)
74,474
(4,843)
(86)
(81)
3,811
-
(1,199)
73,275

*This includes the Pension Asset Cap adjustment (note 24)

Page 71 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

CONSOLIDATED AND COLLEGE STATEMENT OF FINANCIAL POSITION as at 31[st] July 2024

as at 31st July 2024
Non-current assets
Fixed Assets
Intangible Assets
Current assets
Stock
Trade and Other Receivables
Cash and Cash Equivalents
Other receivables due after one year
Creditors:Amounts falling due within one year
Net Current Assets/(Liabilities)
Total Assets less Current Liabilities
Less: Creditors: Amounts falling due after one year
Less: Provisions for liabilities
-
Job Evaluation
-
Early Retirement Pensions
Net Assets excluding Pension Asset/(Liability)
Pension liability
Total Net Assets
Reserves
Income and Expenditure Reserve – restricted
Income and Expenditure Reserve – unrestricted
Revaluation Reserve
Total Reserves		 Note
11
11
13
19
13
14
15
16
16
24
18		 Region
2024
£’000
185,463
386
185,849
33
3,604
9,284
12,921
5,671
18,592
22,600
(9,679)
181,841
71,713
5,504
659
77,876
103,965
302
302
103,663
10
20,888
82,765
103,663		 College
2024
£’000
135,327
219
135,546
15
2,796
1,726
4,537
5,671
10,208
18,179
(13,642)
127,575
49,082
4,459
457
53,998
73,577
302
302
73,275
10
13,373
59,892
73,275		 Restated
Region
2023
£’000
186,950
177
187,127
21
7,355
7,477
14,853
5,725
20,578
25,139
(10,286)
182,566
74,539
-
1,259
75,798
106,768
-
-
106,768
10
24,722
82,036
106,768		 Restated
College
2023
£’000
134,883
-
134,883
13
5,458
1,985

7,456
5,725
13,181
20,868

(13,412)

127,196
51,740
-
982
52,722
74,474
-
-
74,474
10
16,584
57,880
74,474

The financial statements on pages 70 to 107 were approved by the Board of Management and signed on its behalf by:

Page 72 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31[st] July 2024

Net cash inflow from operating activities
(Deficit)/surplus for the financial year
Adjustment for non-cash items
Depreciation
Asset impairment
Surplus on sale of fixed asset
Deferred grant release
(Increase)/decrease in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Increase/(decrease) in provisions
Pension costs – FRS 102
Net return on pension liability – FRS102
Adjustment for investing or financing activities
Interest received
Interest paid
Net cash generated from operating activities
Cash flows from investing activities
Interest received
Sale of fixed asset property
Payments made to acquire fixed assets
Net cash flow from investing activities
Cash flows from financing activities
Interest paid
Capital grant funding in respect of capital expenditure
Donation less distribution of restricted fund (J A Cuthbertson
Trust)
Net cash flow from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 Note
11
11
17
13
14,15
16
7,24
6,24
6
9
6
11
9
17
18
19
19		 2024
£’000
(6,022)
6,734
258
(68)
(5,507)
(12)
3,866
(2,961)
4,904
266
-
(130)
(34)
1,294
130
145
(2,605)
(2,330)
(9)
2,852
-
2,843
1,807
7,477
9,284		 Restated
2023
£’000
(5,699)
6,620
-
-
(5,109)
(3)
(449)
1,367
(14)
1,329
(668)
(54)
6
(2,674)
54
-
(2,866)
(2,812)
(7)
1,967
8
1,968
(3,518)
10,995
7,477

Page 73 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

1. ACCOUNTING POLICIES

1.01 Basis of Preparation

These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and the 2023/24 Government Financial Reporting Manual (FReM) issued by the Scottish Government and in accordance with Financial Reporting Standard (FRS) 102. They conform to the Accounts Direction issued by the Scottish Funding Council (SFC) on 18[th] September 2024 and to the accompanying 2023/24 detailed guidance notes and to direction under the Charities and Trustees Investment (Scotland) Act 2005, and Regulation 14 of The Charities Accounts (Scotland) Regulations 2006. The Colleges are public benefit entities and therefore have applied the relevant public benefit requirements of FRS102. The Consolidated Statement of Comprehensive Income is in respect of continuing activities.

1.02 Basis of Accounting

The financial statements have been prepared in accordance with the historical cost convention modified by the revaluation of certain fixed assets, the going concern concept and the accruals basis.

1.03 Basis of Consolidation

These financial statements combine the consolidated results for NCL and SLC; SLC being assigned to NCL under the Lanarkshire Order. In addition, NCL Board of Management wholly owns Amcol Scotland Limited and therefore Amcol results are also fully consolidated. Newly acquired subsidiary undertakings are included in the consolidated accounts from the date of acquisition. Intra-group sales and profits are eliminated fully on consolidation. The Colleges have no Students’ Unions.

1.04 Recognition of Income

The main annual recurrent allocation from SFC, which is intended to meet recurrent costs, is credited directly to the Consolidated Statement of Comprehensive Income evenly over the year in which it is received.

Tuition fees are credited to the Consolidated Statement of Comprehensive Income in the year in which they are earned.

The Colleges operate a ‘fee waiver’ policy that provides free access to education to students where they have additional support needs or they are, or their partner is, receiving a form of recognised benefit. Fee waiver funding is received from SFC on an annual recurrent basis.

Government revenue grants are recognised in income over the periods in which the Colleges recognise the related costs for which the grant is intended to compensate. Where part of a government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.

Page 74 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

1.04 Recognition of Income (continued)

Grants from non-government sources are recognised in income when the Colleges are entitled to the income and performance related conditions have been met. This is generally equivalent to the sum of the relevant expenditure incurred during the year and any related contributions towards overhead costs. Income received in advance of performance related conditions being met is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.

Capital grants from government sources are recognised in income over the expected useful life of the asset. Other capital grants are recognised in income when the Colleges are entitled to the funds subject to any performance related conditions being met.

All income from short-term deposits is credited to the Consolidated Statement of Comprehensive Income in the period in which it is earned.

Income of a revenue nature from European Structural Funds comprising European Social Funds and European Regional Development Funds is accounted for in the Consolidated Statement of Comprehensive Income to the extent that its recovery is expected with reasonable certainty and where the project has been approved prior to the financial year end and claims made or outstanding relate to the financial year.

For Bursary, Discretionary and EMA Funds, the grants are excluded from the Consolidated Statement of Income as these grants are available solely for students, with the Colleges acting as paying agent. Childcare funds are included in the Consolidated Statement of Comprehensive Income.

1.05 Donations and Endowments

Non-exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income in the Consolidated Statement of Income and Expenditure (SOCIE) at the point when the Colleges are entitled to the funds. They are subsequently retained within a restricted reserve until such time that expenditure is incurred in line with such restrictions at which point the income is released to unrestricted reserves through a reserves transfer. Donations with no restrictions are recognised in income in the SOCIE when the Colleges are entitled to the funds.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms of the restriction applied to the individual endowment fund.

Page 75 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

1.06 Pensions

Retirement benefits to College employees are provided by the Scottish Teachers’ Pension Scheme (STPS) and the Strathclyde Pensions Fund (SPF Scheme). These are defined benefit schemes which are externally funded and were contracted out of the State Earnings Related Pension Scheme up to April 2016.

STPS

The Colleges participate in the STPS pension scheme providing benefits based on career average pensionable salary since April 2016 with protection for benefits built up prior to that date. The assets of the scheme are held separately from those of the Colleges. The Colleges are unable to identify their share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by paragraph 28.11 of FRS 102, account for the scheme as if it were a defined contribution scheme.

As a result, the amount charged to the Consolidated Statement of Comprehensive Income represents the contributions payable to the scheme in respect of the year, and actuarial losses and gains previously only recognised through reserves.

In the event of staff taking early retirement, the full liability to the Colleges is calculated and charged to the Consolidated Statement of Consolidated Income in the year of retiral, with a corresponding provision being established in the Statement of Financial Position.

SPF

The contributions are determined by an actuary on the basis of determined periodic valuations. The amount charged to the Consolidated Statement of Comprehensive Income represents the service cost expected to arise from employee service in the current year, and actuarial losses and gains previously only recognised through reserves.

1.07 Taxation

Both Colleges and the subsidiary company have been registered in the Scottish Charity Register and as such are “charities” within the meaning of section 13 (1) of the Charities and Trustee Investment (Scotland) Act 2005. The Colleges and the subsidiary are recognised as charities by HM Revenue & Customs. They are therefore charities within the meaning of Para 1 of schedule 6 to the Finance Act 2010 and accordingly they are potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

The Colleges receive no similar exemption in respect of Value Added Tax. The Colleges are exempted from levying VAT on most of the services they provide to students. For this reason, the Colleges are generally unable to recover the input VAT they suffer on goods and services purchased.

The subsidiary is not registered for VAT as the business activities are exempt.

Page 76 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

1.08 Tangible Fixed Assets

Fixed assets are stated at cost or deemed cost less accumulated depreciation. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to the 2015 FE/HE SORP are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

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

a) Land and Buildings

Land and buildings are measured using the revaluation model. Under the revaluation model, assets are revalued to fair value on a Depreciated Replacement Cost (DRC) method and the buildings are valued on a campus basis. NCL and Amcol carry out a full revaluation at least every 5 years, with an interim desktop revaluation as required during the 5 years, such that the market value is not materially different to the current value. SLC carry out a full revaluation every three years. Depreciation and impairment losses are subsequently charged on the revalued amounts.

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are capitalised to the extent that they increase the expected useful future benefits to the Colleges.

Feuhold land associated with the buildings and undeveloped feuhold land are not depreciated as they are considered to have indefinite lives. Feuhold buildings are depreciated over the remaining useful economic life to the Colleges from the previous revaluation date on a straight-line basis, based on the revalued amount.

No depreciation is charged on assets in the course of construction.

b) Plant and Equipment

For College accounts, single items of plant and equipment costing less than £10,000 are written off to the Consolidated Statement of Comprehensive Income in the year of purchase. This figure is £1,000 for the subsidiary. However, as part of the uniform Group accounting policies review, the impact upon the accounts is immaterial. Assets of a lesser value may be capitalised where they form part of a group of similar assets purchased in the same year and costing over £10,000 in total. Capitalised equipment is depreciated over its useful economic life ranging from between 3 and 10 years on a straight-line basis. Depreciation, useful lives and residual values are reviewed at the date of preparation of each statement of financial position.

The cost of long-term and routine corrective maintenance is charged to the Consolidated Statement of Comprehensive Income as it is incurred. Plant and Equipment assets are reviewed annually for impairment.

Heritage assets are not recognised in the statement of financial position due to materiality and also the impracticality of obtaining relevant valuations.

No depreciation is charged on assets in the course of construction.

c) Intangible Assets

Intangible assets are carried at fair value, these include software or development costs. They are amortised on a straight-line basis over estimated useful lives of 4 years (SLC) and 3 years (NCL).

Page 77 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

The Colleges shall recognise an intangible asset only if:

1.09 Leased Assets

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

Leasing agreements, which transfer to the Colleges substantially all the risks and rewards of ownership of an asset, are treated as if the asset had been purchased outright.

The assets are included in fixed assets and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.10 Depreciation

Depreciation is provided at the following rates:

Land & buildings 1% - 10% Straight Line
Short leasehold 5% Straight Line
Plant, equipment & vehicles 4% - 33% Straight Line

College buildings are depreciated using rates determined by component accounting exercises.

Land is not depreciated unless there is a permanent diminution in its value.

No depreciation is charged on assets under construction, until such time as they are brought into use.

Assets that are held under hire purchase contracts, which have the characteristics of finance leases, are depreciated over their useful lives.

1.11 Investments

The investment in the subsidiary company is held as a fixed asset, and stated at the lower of cost and market value.

1.12 Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Page 78 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

1.13 Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

The amount recognised as a provision is determined by discounting the expected future cash flows at a pretax rate that reflects risks specific to the liability.

A contingent liability arises from a past event that gives the Colleges a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Colleges. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the Colleges a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Colleges.

Contingent assets and liabilities are not recognised in the Statement of Financial Position but are disclosed in the notes.

1.14 Reserves

Reserves are classified as restricted or unrestricted. Restricted reserves include balances where the donor has designated a specific purpose and therefore the College is restricted in the use of these funds.

Page 79 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

2. SCOTTISH FUNDING COUNCIL GRANTS

SFC FE Recurrent Grant (including fee
waiver)
Job Evaluation
Childcare grant
Other SFC grants
Release of deferred SFC capital grants		 Region
2024
£’000
54,338
(5,504)
1,630
2,305
5,004
57,773		 College
2024
£’000
39,352
(4,459)
1,291
2,200
4,343
42,727		 Region
2023
£’000
52,338
-
2,019
3,304
4,602
62,263		 College
2023
£’000
38,178
-
1,613
2,800
3,933
46,524

3. TUITION FEES AND EDUCATION CONTRACTS

FE Fees – UK
FE Fees – Non-EU
HE Fees
SDS contracts
Modern Apprenticeships
Other contracts
. OTHER INCOME
European funds
Other grant income
Other revenue grants
Residences and Catering
Other income
Other income – Nurseries
Release of deferred capital grants		 Region
2024
£’000
2,324
51
3,477
-
1,399
1,652
8,903
Region
2024
£’000
-
349
146
897
1,100
5,112
504
8,108		 College
2024
£’000
1,005
38
2,584
-
927
1,278
5,832
College
2024
£’000
-
349
46
897
1,062
533
282
3,169		 Region
2023
£’000
2,093
10
3,549
35
1,350
1,550
8,587
Region
2023
£’000
201
349
33
1,223
1,000
4,851
508
8,165		 College
2023
£’000
730
9
2,561
9
939
1,317
5,565
College
2023
£’000
201
275
33
1,223
1,013
756
360
3,861

4. OTHER INCOME

Page 80 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

5. DONATIONS

Donations with restrictions
Unrestricted donations
. INVESTMENT INCOME
Pension income (note 24)
Net return on deposits and bank balance		 Region
2024
£’000
19
19
Region
2024
£’000
-
130
130		 College
2024
£’000
19
-
19
College
2024
£’000
-
45
45		 Region
2023
£’000
22
-
22
Region
2023
£’000
669
54
723		 College
2023
£’000
22
-
22
College
2023
£’000
496
32
528

6. INVESTMENT INCOME

7. STAFF COSTS

7.01 Staff Numbers:

The average number of persons (including senior post holders) employed by the Region during the year, expressed as full-time equivalents was:

Teaching staff
Teaching support
Administration and Central Services
Premises
Catering and Residences
Other College expenditure
Nursery (Subsidiary)
Total
Analysed as:
Staff on permanent contracts
Staff on temporary contracts
Total
.02 Staff Costs for the above persons:
Salaries and related pay costs:
Wages and salaries
Social security costs
Other pension costs
Total		 Region
2024
£’000
43,836
4,324
7,001
55,161		 College
2024
£’000
30,072
3,180
5,110
38,362		 2024
541
118
212
93
19
9
141
1,133
1,098
35
1,133
Region
2023
£’000
45,724
4,692
8,661
59,077		 2023
565
127
242
89
25
7
142
1,197
1,128
69
1,197
College
2023
£’000
31,771
3,409
6,437
41,617

7.02 Staff Costs for the above persons:

The pension contributions above are based on the accruals concept of accounting and differ to the amounts included in note 24, which shows actual payments to both schemes made in the year.

Page 81 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

7.02 Staff Costs for the above persons (continued)

Region details being:
Teaching staff
Teaching support
Administration and Central Services
Premises
Catering and Residences
Other College expenditure
Nursery
Cost of voluntary severance
Pension fund adjustments
Gross Staff Costs
Staff on permanent contracts
Staff on temporary contracts
Total
Exceptional staff costs
Gross Staff Costs		 2024
£’000
29,162
5,761
12,676
2,929
605
472
3,556
55,161
1,171
266
56,598
2024
£’000
51,806
3,355
55,161
1,437
56,598		 2023
£’000
33,187
5,901
12,816
2,875
768
321
3,209
59,077
1,286
1,329
61,692
2023
£’000
54,786
4,291
59,077
2,616
61,692

The Chair of the Board of Management received a payment in the range £20,000 to £25,000 (2023 £30,000 to £35,000) for time spent on Regional business. The members of the Board of Management other than the Chair, the Principals and staff members did not receive any payment from the Colleges other than the reimbursement of travel and subsistence expenses incurred in the course of their duties.

Overseas Travel

The cost of overseas trips undertaken by College staff in the year was £7k (2023 £12k). These were all funded via the BRI (Belt Road Initiative) Countries Partnership Project, funded by the British Council, China. This excludes staff accompanying students on overseas mobility projects.

Page 82 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

7.03 Higher paid members of staff

The number of higher paid members of staff, including the Principals, who received annual emoluments in excess of £60,000 excluding pension contributions but including benefits in kind in the following ranges was:

2024 2023
Number Number
£60,001 to £70,000 9 7
£70,001 to £80,000 5 6
£80,001 to £90,000 - 2
£90,001 to £100,000 3 2
£100,001 to £110,000 2 1
£110,001 to £120,000 - -
£120,001 to £130,000 - -
£130,001 to £140,000 1 1
£140,001 to £150,000 - -

All higher paid staff members are ordinary members of the appropriate pension scheme and employer’s College contributions are paid at the same rate as for other members of staff.

7.04
Senior postholders’ emoluments
The number of senior post-holders, including the Principals was:		 2024
Number
20		 2023
Number
19

Senior post-holders are defined as any member of staff whose total annual emoluments excluding pension contributions and employers’ national insurance exceeds £60,000.

Senior postholders’ emoluments are made up as follows:
Salaries
Pension contributions		 2024
1,590
317
1,907		 2023
£’000
1,537
314
1,851

The above emoluments include amounts payable to the Principals, who are the highest paid senior postholders in each College.

Remuneration:
New College Lanarkshire Principal
South Lanarkshire College Principal (3 individuals 2023)
Pension Contributions:
New College Lanarkshire Principal
South Lanarkshire College Principal (3 individuals 2023)		 2024
£’000
134
110
244
32
26
58		 2023
£’000
135
264
399
31
38
69

Page 83 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

7.04 Senior post-holders’ emoluments (continued)

The Principals are both ordinary members of the Scottish Teachers' Pension Scheme. The Colleges contribution to the scheme is paid at the same percentage rate as for other members of Academic staff. The Acting Principal was not a member of the Scheme and no pension contributions were paid by the College.

The Principals and 10 other senior post-holders were members of the Scottish Public Pensions Agency and another 8 senior post-holders were members of the Local Government Pension Scheme. All pension contributions were paid at the same rate as for other members of staff.

8. ANALYSIS OF OTHER OPERATING EXPENSES BY ACTIVITY

Teaching activities
Childcare
Catering and Residences
Premises
Administration and Central Services
Nursery
Agency staff cost
Other expenses
Auditor’s remuneration (including
irrecoverable VAT):
External audit
Rebate for prior years*
Total External Audit charge
Internal audit
Other services provided by:
External audit
Internal audit
Hire of other assets under operating leases:
Land and Property
Equipment		 Region
2024
£’000
3,284
2,157
542
5,646
4,958
30
255
595
17,467
Region
2024
£’000
106
-
106
56
13
-
141
170		 College
2024
£’000
2,104
1,305
542
4,078
3,303
30
135
378
11,875
College
2024
£’000
75
-
75
41
-
-
61
70		 Restated
Region
2023
£’000
3,095
2,488
609
5,095
4,896
44
288
625
17,140
Restated
Region
2023
£’000
101
(6)
95
43
15
-
178
148		 Restated
College
2023
£’000
1,677
1,623
609
3,900
4,145
44
122
393
12,513
Restated
College
2023
£’000
71
(6)
65
25
-
-
98
59

*The rebate relates to savings accrued through reduced travel and subsistence costs in delivering previous years’ audits.

Page 84 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

9. INTEREST PAYABLE

Net interest charge on pension scheme
Pension costs (note 24)
Other interest payable		 Region
2024
£’000
3
(45)
8
(34)		 College
2024
£’000
2
-
-
2		 Region
2023
£’000
-
-
7
7		 College
2023
£’000
-
-
1
1

10. TAXATION

The Board of Management does not believe that the Regional Strategic Body was liable for any corporation tax arising out of its activities during the period.

11. FIXED ASSETS

FIXED ASSETS – REGION

COST
Restated as at 1st August 2023
Additions
Disposals
Transfer to Heritage Assets
Revaluation
As at 31st July 2024
DEPRECIATION
As at 1st August 2023
Provided during period
Eliminated on disposal
Eliminated on Revaluation
Impairment
As at 31st July 2024
NET BOOK VALUE
As at 31st July 2024
Restated as at 31st July 2023*		 Restated
Land &
Buildings
185,849
496
(71)
(106)
(4,599)
181,569
1,978
5,542
-
(7,476)
-
44
181,525
183,871		 Short
Leasehold
114
-
-
-
-
114
67
6
-
-
-
73
41
47		 Restated
Plant,
Equipment
& Vehicles
13,546
1,993
(506)
-
-
15,033
10,514
1,102
(480)
-
-
11,136
3,897
3,032		 Restated
Total
199,509
2,489
(577)
(106)
(4,599)
196,716
12,559
6,650
(480)
(7,476)
-
11,253
185,463
186,950

*The Heritage Asset was transferred from Land and Buildings in-year and has been fully written down due to materiality and the impracticality of obtaining relevant valuations.

Included in Land and Buildings is land at a value of £3,957k which is not depreciated.

Page 85 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

NCL properties were revalued by Ryden LLP at 31[st] July 2024 using depreciated replacement cost, having previously been revalued at 31[st] July 2023. Opening balances have been restated at 31[st] July 2023 to exclude finance costs in the replacement cost valuation, in line with the instant build approach prescribed by the Government Financial Reporting Manual. The valuation included in 2022/23 financial statements which included finance costs was based on a valuation provided by Ryden LLP, RICS qualified valuation specialists.

SLC properties were revalued by Ryden LLP at 31[st] July 2024 using depreciated replacement cost.

Amcol Scotland Limited properties were revalued using market values by Whyte & Barrie at 12[th] August 2022.

The net book value of Plant, Equipment and Vehicles includes an amount of £Nil (2023: £Nil) in respect of assets held under finance leases and hire purchase contracts.

NCL Plant and Equipment Assets previously removed and identified as in still use have been reinstated at cost less accumulated depreciation (£1,173k).

INTANGIBLE ASSETS

COST OR VALUATION
As at 1st August 2023
Additions
As at 31st July 2024
DEPRECIATION
As at 1st August 2023
Provided during period
As at 31st July 2024
NET BOOK VALUE
As at 31st July 2024
As at 31st July 2023		 Intangible
Assets
£’000
202
294
496
25
85
110
386
177		 Total
£’000
202
294
496
25
85
110
386
177

The carrying value of the revalued assets, had they not been revalued, would have been:

Land and Buildings
Cost
Aggregate depreciation
Net Book Value		 2024
£’000
156,946
(69,390)
87,556		 2023
£’000
156,606
(68,874)
87,732

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

11. FIXED ASSETS (continued)

FIXED ASSETS – COLLEGE

COST OR VALUATION
Restated as at 1st August 2023
Additions
Disposals
Revaluation
Transfer to Heritage Assets
As at 31st July 2024
DEPRECIATION
As at 1st August 2023
Provided during period
Provided on disposals
Eliminated on Revaluation
Impairment
As at 31st July 2024
NET BOOK VALUE
As at 31st July 2024
Restated as at 31st July 2023*		 Restated
Land &
Buildings
£’000
133,369
177
(71)
(504)
(106)
132,865
-
4,315
-
(4,315)
-
-
132,865
133,369		 Restated
Plant,
Equipment &
Vehicles
£’000
7,458
1,579
(258)
-
-
8,779
5,944
631
(258)
-
-
6,317
2,462
1,514		 Restated
Total
£’000
140,827
1,756
(329)
(504)
(106)

141,644

5,944
4,946
(258)
(4,315)
-
6,317

135,327

134,883

*The Heritage Asset was transferred from Land and Buildings in-year and has been fully written down due to materiality and the impracticality of obtaining relevant valuations.

INTANGIBLE ASSETS

NTANGIBLE ASSETS
COST OR VALUATION
As at 1st August 2023
Additions
As at 31st July 2024
DEPRECIATION
As at 1st August 2023
Provided during period
As at 31st July 2024
NET BOOK VALUE
As at 31st July 2024
As at 31st July 2023		 Intangible
Assets
£’000
-
246
246
-
27
27
219
**- **		 Total
£’000
-
246
246
-
27
27
219
-

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

The carrying value of the revalued assets, had they not been revalued, would have been:

Land and Buildings
Cost
Aggregate depreciation
Net Book Value
12.
INVESTMENTS
Investment in subsidiary		 Region
2024
£’000
-		 College
2024
£’000
-		 2024
£’000
113,876
(54,061)
59,815
Region
2023
£’000
-		 2023
£’000
113,699
(54,059)
59,640
College
2023
£’000
-

On 31[st] December 2008, 100% of the share capital of Amcol Scotland Limited at 10,000 £1.00 shares was transferred to Motherwell College for nil consideration. The shares were subsequently transferred to NCL upon legal formation. In the year to 31[st] July 2024, Amcol Scotland Limited made a surplus of £499k on a turnover of £4,764k net of intercompany transactions and had net assets of £3,618k. The principal trading activity of the subsidiary is the Provision of Nursery Education.

13. TRADE AND OTHER RECEIVABLES

THER RECEIVABLES DUE AFTER MORE THAN ONE YEAR
restated)
Amounts falling due within one year:
Trade receivables
Other receivables
Prepayments and accrued income
Prepaid lease
(Motherwell land lease £6.6m 125 years to year 2132		 Region
2024
£’000
355
5
3,244
3,604		 College
2024
£’000
207
-
2,589
2,796
5,671		 Restated
Region
2023
£’000
306
229
6,820
7,355
5,725		 Restated
College
2023
£’000
273
-
5,185
5,458		 Restated
College
2023
£’000
273
-
5,185
5,458
5,671 5,725

OTHER RECEIVABLES DUE AFTER MORE THAN ONE YEAR

Page 88 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade payables
Social security and other taxation payable
Accruals and deferred income
Deferred income – restricted
Bursaries and Access funds for future disbursement
Deferred capital grants (note 17)
SFC creditor*
Other creditors		 Region
2024
£’000
1,189
1,162
7,627
364
843
5,741
4,500
1,174
22,600		 College
2024
£’000
711
702
5,514
162
707
4,858
4,500
1,025
18,179		 Region
2023
£’000
931
934
10,110
957
2,506
5,679
-
4,022
25,139		 College
2023
£’000
555
889
7,565
730
2,407
4,864
-
3,858

20,868

SFC make non-recurrent grants to the Colleges with restrictions on use. The College has carried forward an element of this allocation and it is shown within “Deferred income – restricted” above and will be used for future projects.

*SFC creditor represents a cash advance to NCL, received in June and July 2024.

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Deferred capital grants (note 17)
As at 31st July 2024		 Region
2024
£’000
71,713
71,713		 College
2024
£’000
49,082
49,082		 Region
2023
£’000
74,539
74,539		 College
2023
£’000
51,740

51,740

16. PROVISIONS FOR LIABILITIES AND CHARGES

REGION

Early Retirement Pension Provision
As at 1st August 2023
Payments made during the year
Revaluation adjustment
As at 31st July 2024
Job Evaluation
Total provisions as at 31st July 2024		 2024
£’000
1,259
(93)
(507)
659
5,504
6,163		 2023
£’000
1,367
(93)
(15)
1,259
-
1,259

Page 89 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

COLLEGE
Early Retirement Pension Provision
As at 1st August 2023
Payments made during the year
Revaluation adjustment
As at 31st July 2024
Job Evaluation
Total provisions as at 31st July 2024		 £’000
982
(64)
(461)
457
4,459
4,916		 £’000
967
(64)
79
982
-
982

The STPS pension provision is in respect of future pension liabilities arising from early retirals in prior years. The pension liability has been revalued using National life tables: Scotland - Office for National Statistics 2024. The net interest rate applied was 0% (2023: 0%).

NCL use Hymans Robertson to actuarially compute their SPF Scheme liability and account for this as part of the Pension Liability in note 24. SLC have fewer Early Retirement Provisions and accordingly perform their own actuarial computations and report this liability separately along with Provisions for the STPS.

The Job Evaluation provision is for anticipated costs to date expected from the middle management and support staff Job Evaluation exercise from 2018 which has not yet been completed. Given the uncertainty of the timing and quantum of likely settlement of the exercise, a reclassification from accruals to a provision has been made in the current year. Funding for these provisions is now held centrally by the Scottish Government and the SFC advise that there is a commitment in place. The Scottish Government remains clear that the responsibility for Job Evaluation funding commitments now rests with it until the process is complete. However, there is not enough comfort from the Scottish Government to emphatically support guaranteed funding hence no matching asset is recognised. The Colleges are acting in good faith in accordance to the external direction that has been given and in the understanding that it will not provide a future detrimental financial burden. As such, the provided costs of middle management/support staff job evaluation that are no longer considered to be matched by revenue is the total of the provision to 31 July 2024 of £5,504k for the Region, which has been disclosed within the adjusted operating position at page 40.

Page 90 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

17. DEFERRED CAPITAL GRANTS

REGION
As at 1st August 2023
Land and buildings
Equipment
Cash Received
Land and buildings
Equipment
Grants Released
Land and buildings
Equipment
As at 31st July 2024
Being:
Land and buildings
Equipment
Due within one year
Due after more than one year
COLLEGE
As at 1st August 2023
Land and buildings
Equipment
Cash Received
Land and buildings
Equipment
Grants Released
Land and buildings
Equipment
As at 31st July 2024
Being:
Land and buildings
Equipment
Due within one year
Due after more than one year		 SFC
£’000
72,255
1,824
74,079
497
2,028
(4,171)
(833)
71,600
68,581
3,019
71,600
5,269
66,331
SFC
£’000
53,588
1,271
54,859
177
1,784
(3,706)
(637)
52,477
50,059
2,418
52,477
4,608
47,869		 ESF
£’000
4,661
250
4,911
-
-
(347)
(17)
4,547
4,314
233
4,547
332
4,215
ESF
£’000
656
250
906
-
-
(251)
(17)
638
405
233
638
236
402		 Other
£’000
812
416
1,228
-
218
(5)
(135)
1,306
807
499
1,306
140
1,167
Other
£’000
812
27
839
-
-
(5)
(9)
825
807
18
825
14
811		 Total
£’000
77,728
2,490
80,218
497
2,246
(4,523)
(985)
77,453
73,702
3,751
77,453
5,741
71,713
Total
£’000
55,056
1,548
56,604
177
1,784
(3,962)
(663)
53,940
51,271
2,669
53,940
4,858
49,082

Page 91 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

18. RESTRICTED RESERVES (REGION AND COLLEGE)

As at 1st August 2023
Add: Grant received
Less: Grant disbursed to students during year
As at 31st July 2024		 2024
£’000
10
-
-
10		 2023
£’000
2
8
-
10

Grants received by NCL for the James A. Cuthbertson’s Trust Prizes Fund remain to be disbursed at year end. This trust provides for a prize for the best male and female students on day release courses for technical apprentices in Engineering.

19. CASH AND CASH EQUIVALENTS

Cash and cash equivalents
Overdrafts
As at 1st August 2023
Cash flows
Cash and cash equivalents
Overdrafts
As at 31st July 2024
Being:
College funds
Student Support funds
Nursery		 Region
2024
£’000
7,477
-
7,477
1,807
9,284
-
9,284
5,482
935
2,867
9,284		 College
2024
£’000
1,985
-
1,985
(259)
1,726
-
1,726
927
799
-
1,726		 Region
2023
£’000
10,995
-
10,995
(3,518)
7,477
-
7,477
4,730
518
2,229
7,477		 College
2023
£’000
5,561
-
5,561

(3,576)
1,985
-
1,985

1,566
419
-
1,985

20. CAPITAL AND OTHER COMMITMENTS

At 31[st] July 2024 the Region (and College) had £30k in capital commitments (2023: £307k) in relation to Very High Priority Maintenance ICT projects.

21. CONTINGENT LIABILITIES

The College is engaged in a contractual dispute relating to construction aspects of the main teaching block and residence block of the Motherwell Campus, most significantly the failure of the cladding system of the main teaching block but also covering failures in screeding and render works to both blocks.

Page 92 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

The College has lodged legal proceedings in the Court system as a protective measure.

At this juncture, it is difficult to determine any obligation, exposure to liability (economic outflow) or measure any liability whether full or partial with reliability. The College is engaged in discussions with the main contractor with a view to exploring a resolution to this matter.

There are 2 employment tribunals currently in process for SLC. It is difficult to determine any exposure to liability or measure any liability whether full or partial at this point in time.

NCL is currently engaged in a legal matter regarding holiday pay calculations affecting some staff. The legal matter is currently sisted. There may be an obligation attached, however there is only a possible economic outflow and no reliable estimate of liability can be provided at this stage.

22. LEASE OBLIGATIONS RESTATED

The net operating lease obligations are:

Land and buildings
One year or less
Over one and under five years
Over five years
Office equipment
One year or less
Over one and under five years
Over five years		 Region
2024
£’000
140
560
5,664
6,364
88
53
-
141		 College
2024
£’000
60
239
5,502
5,801
52
12
-
64		 Restated
Region
2023
£’000
140
561
5,804
6,505
125
82
-
207		 Restated
College
2023
£’000
60
239
5,562
5,861
53
29
-
82		 Restated
College
2023
£’000
60
239
5,562
5,861
53
29
-
82		 Restated
College
2023
£’000
60
239
5,562
5,861
53
29
-
82		 Restated
College
2023
£’000
60
239
5,562
5,861
53
29
-
82

5,861

53
29
-
82

23. POST BALANCE SHEET EVENTS

There are no Post Balance Sheet Events of financial significance or financial materiality to note.

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

24. PENSION SCHEMES

The Colleges employees belong to one of two principal pension schemes, the Scottish Teachers Pension Scheme (STPS) which is operated by the Scottish Public Pensions Agency and the Local Government Superannuation Scheme, the Strathclyde Pension Fund (SPF). Both STPS and SPF are defined benefit schemes. The STPS is a notional fund and there are specific regulations regarding the basis on which the actuarial valuation should be carried out. The assets of the SPF scheme are held in a separate, trusteeadministered fund.

Total Pension Cost for the Year
Teachers’ Pension Scheme: Contributions paid
Local Government Pension Scheme:
Contributions paid
Contributions paid (unfunded)
Pension fund adjustment
Charge to the Statement of Comprehensive Income
Total Pension Cost for Year within staff costs		 Region
2024
£’000
5,640
2,094
43
214
2,351
7,991		 College
2024
£’000
4,273
1,621
43
214
1,878
6,151		 Region
2023
£’000
5,897
2,675
41
1,014
3,730
9,627		 College
2023
£’000
4,369


2,027
41
1,014

3,082
7,451

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest published formal actuarial valuation of the STPS was 31[st] March 2020 and of the SPF 31[st] March 2023.

Contributions amounting to £779k (2023 £718k) for the Region, £583k (2023 £718k) for the College, were payable to the schemes at 31[st] July and are included within creditors.

Scottish Teachers Pension Scheme (STPS)

The Scottish Teachers Pension Scheme is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme (Scotland) Regulations 2014. These regulations apply to teachers in schools and other educational establishments in Scotland 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[st] January 2007 automatic 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 STPS.

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 are paid by public funds, provided by Parliament.

The STPS is an unfunded scheme and members contribute on a “pay as you go” basis – these contributions along with those made by employers are credited to the Exchequer under arrangements governed by the above Act.

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Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

The Teachers’ Pension 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[st] 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.

IAS 19 - Employee Benefits paragraph 148 - Multi-employer plans

(a) NCL and SLC participate in the Scottish Teachers’ Pension Scheme. The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The last four-yearly valuation was undertaken as at 31 March 2020. This valuation informed an increase in the employer contribution rate from 23.0% to 26.0% of pensionable pay from April 2024 and an anticipated yield of 9.6% employees’ contributions.

(b) NCL and SLC have no liability for other employers’ obligations to the multi-employer scheme.

(c) As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme.

(d) (i) The scheme is an unfunded multi-employer defined benefit scheme.

(ii) It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where NCL and SLC are unable to identify their share of the underlying assets and liabilities of the scheme.

(iii) The employer contribution rate for the period from 1 April 2024 is 26% of pensionable pay. The employee rate applied is variable and is anticipated to provide a yield of 9.6% of pensionable pay.

(iv) While a valuation was carried out as at 31 March 2020, it is not possible to say what deficit or surplus may affect future contributions. Work on the valuation was suspended by the UK Government pending the decision from the Court of Appeal (McCloud (Judiciary scheme)/Sargeant (Firefighters’ Scheme) cases) that held that the transitional protections provided as part of the 2015 reforms was unlawfully discriminated on the grounds of age. Following consultation and an announcement in February 2021 on proposals to remedy the discrimination, the UK Government confirmed that the cost control element of the 2016 valuations could be completed. The UK Government has also asked the Government Actuary to review whether, and to what extent, the cost control mechanism is meeting its original objectives. The 2020 actuarial valuations will take the report’s findings into account. The interim report is complete (restricted) and is currently being finalised with a consultation.

(v) NCL and SLC’s level of participation in the scheme is less than 1% based on the proportion of employer contributions paid in 2023/24.

Scheme Changes

Following the Hutton report in March 2011 and the subsequent consultation with Trade Unions and other representative bodies on reform of the STSS, the Scottish Government published a Framework Document setting out the design for a reformed STSS to be implemented from 1[st] April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57[th] ; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age.

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Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1[st] April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three-and-a-half-year period, for people who would fall up to three and a half years outside of the 10-year protection

Regulations giving effect to a reformed Teachers’ Pension Scheme came into force on 1[st] April 2014 and the reformed scheme commenced on 1[st] April 2015.

The pension costs paid to STPS in the year amounted to £7,083K for the Region (2023 £7,721k), £5,163k (2023 £5,574k) for the College. The employers’ contributions totalled £5,078k (College £3,711k) and employees’ contributions totalled £2,005k (College £1,452k).

FRS 102 (28)

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

Accordingly, the Colleges have taken advantage of the exemption in FRS102 and have accounted for their contributions to the scheme as if it were a defined-contribution plan. The Colleges have set out above the information available for the plan and the implications for the Colleges in terms of the anticipated contribution rates.

Strathclyde Pension Fund (SPF)

The Strathclyde Pension Fund is a statutory multi-employer defined benefit scheme. It is administered by Glasgow City Council in accordance with the Local Government Pension Scheme (Scotland) Regulations 2014.

The total contributions made for the year ended 31[st] July 2024 were £2,859k (2023 £3,373k) for the Region, £2,188k (2023 £2,548k) for the College. The employer’s contributions totalled £2,007k (College £1,534k) and employees’ contributions totalled £852k (College £654k). The agreed contribution rates for future years are: employers 6.5% from 1[ST] April 2024 – 31[st] March 2026, increasing to 17.5% from 1[st] April 2026 and employees range from 5.5% to 12% for employees, depending on salary.

The pension contributions above relate to actual payments made to the schemes and differ to the pension costs in Staff Costs (note 7.02) which is based on the accruals concept of accounting.

Principal Actuarial Assumptions

The following information is based upon a full actuarial valuation of the fund at 31[st] March 2023 updated to 31[st] July 2024 by a qualified independent actuary.

Rate of increase in salaries
Future pension increases
Discount rate for scheme liabilities
Inflation assumption		 31st July 2024
3.45%
2.75%
5.00%
2.75%		 31st July 2023
3.70%
3.00%
5.05%
3.00%

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Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

Commutation of pensions to lump sums – An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits for pre-April 2009 service and 75% of the maximum tax-free cash for post-April 2009 service.

Life expectancy is based on the Fund’s VitaCurves, with improvements in line with the CMI 2023 model, with a 15% weighting of 2023 (and 2022) data, a 0% weighting of 2021 (and 2020) data, standard smoothing (Sk7), initial adjustment of 0.25% and a long-term rate of improvement of 1.5% p.a. for both males and females. Based on these assumptions, the average future life expectancies at age 65 for the Employer are summarised below:

At 31st July 2024 At 31st July 2023
Years Years
Current Pensioners
Males 19.3 19.1
Females 22.3 22.0
Future Pensioners
Males 20.5 20.3
Females 23.9 23.9

The Region and Colleges share of the assets in the plan at the statement of financial position date and the expected rates of return were as follows. The expected rate of return is set equal to the discount rate as per FRS102 disclosure requirements.

Estimated
split of
assets at
31st July
2024
%
Equity instruments
62%
Debt instruments
25%
Property
9%
Cash
4%
Total fair value of plan
assets
100%
Weighted average
5.00%
expected long term rate
of return
Actual return on plan
assets		 Region
fair value
at
31st July
2024
£’000
71,372
28,779
10,360
4,605
115,116
9,491		 College
fair value
at
31st July
Estimated
split of
assets at
31st July
2024
2023
£’000
%
58,394
61%
23,546
27%
8,477
10%
3,767
2%
94,184
100%
5.05%
7,755		 Region
fair value
at
31st July
2023
£’000
63,919
28,292
10,479
2,096
104,786
2,092		 College
fair value
at
31st July
2023
£’000
52,254
23,129
8,566
1,713

85,662
1,270

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New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

The amount included in the statement of financial position in respect of the defined benefit pension plan and enhanced pensions benefits is as follows:

Fair value of plan assets
Present value of plan liabilities
Present value of unfunded liabilities
Effect of the asset ceiling
Net pensions (liability)/asset		 Region
2024
£’000
115,116
(76,923)
(302)
(38,193)
(302)		 College
2024
£’000
94,184
(62,254)
(302)
(31,930)
(302)		 Region
2023
£’000
104,786
(69,588)
(313)
(34,885)
-		 College
2023
£’000
85,662
(56,222)
(313)
(29,127)
-
Amounts recognised in the Statement of Comprehensive Income in respect of the plan are as follows:
Region
College
Region
College
2024
£’000
2024
£’000
2023
£’000
2023
£’000
Amounts included in staff costs
Current service cost
2,451
1,878
3,897
2,979
Past service cost
-
-
103
103
Total
2,451
1,878
4,000
3,082
Amounts included in interest payable
Net interest (cost)
(3)
(2)
670
496
Total
(3)
(2)
670
496
Amount recognised in other comprehensive
income
Return on pension plan assets
4,175
3,411
(2,030)
(1,660)
Changes in demographic assumptions
1,552
1,202
5,630
970
Experience losses arising on defined benefit
obligations
Changes in assumptions underlying the
(7,176)
2,962
(5,766)
2,399
(4,689)
19,671
(3,780)
19,449
present value of plan liabilities
Changes in the effect of the asset ceiling
4,717
(1,332)
-
-
6,230
(86)
18,582
14,979		 Amounts recognised in the Statement of Comprehensive Income in respect of the plan are as follows:
Region
College
Region
College
2024
£’000
2024
£’000
2023
£’000
2023
£’000
Amounts included in staff costs
Current service cost
2,451
1,878
3,897
2,979
Past service cost
-
-
103
103
Total
2,451
1,878
4,000
3,082
Amounts included in interest payable
Net interest (cost)
(3)
(2)
670
496
Total
(3)
(2)
670
496
Amount recognised in other comprehensive
income
Return on pension plan assets
4,175
3,411
(2,030)
(1,660)
Changes in demographic assumptions
1,552
1,202
5,630
970
Experience losses arising on defined benefit
obligations
Changes in assumptions underlying the
(7,176)
2,962
(5,766)
2,399
(4,689)
19,671
(3,780)
19,449
present value of plan liabilities
Changes in the effect of the asset ceiling
4,717
(1,332)
-
-
6,230
(86)
18,582
14,979		 Amounts recognised in the Statement of Comprehensive Income in respect of the plan are as follows:
Region
College
Region
College
2024
£’000
2024
£’000
2023
£’000
2023
£’000
Amounts included in staff costs
Current service cost
2,451
1,878
3,897
2,979
Past service cost
-
-
103
103
Total
2,451
1,878
4,000
3,082
Amounts included in interest payable
Net interest (cost)
(3)
(2)
670
496
Total
(3)
(2)
670
496
Amount recognised in other comprehensive
income
Return on pension plan assets
4,175
3,411
(2,030)
(1,660)
Changes in demographic assumptions
1,552
1,202
5,630
970
Experience losses arising on defined benefit
obligations
Changes in assumptions underlying the
(7,176)
2,962
(5,766)
2,399
(4,689)
19,671
(3,780)
19,449
present value of plan liabilities
Changes in the effect of the asset ceiling
4,717
(1,332)
-
-
6,230
(86)
18,582
14,979
3,082
496
496
(1,660)
970
(3,780)
19,449
-
14,979

Page 98 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

Asset Ceiling

The net defined asset is the surplus, adjusted for any effect of limiting a net defined benefit asset to the asset ceiling and is net of unfunded liability. The surplus is the present value of the defined benefit obligation less the fair value of plan assets. The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. NCL has no unconditional right to a refund in a Local Government Superannuation Scheme. Similarly, as a minimum funding requirement exists to improve the security of the post-employment benefit promise made to members of an employee benefit plan, the College cannot reduce future contributions. Therefore, an asset ceiling calculation has been performed to restrict the net asset position to a liability of £302k in relation to unfunded future liabilities (2022/23: £nil).

Movement in Net Defined Asset/(Liability) in Scheme

Net defined asset/(liability) in scheme at 1st
August 2023
Movement in year:
Current and past service cost
Employer contributions
Contributions in respect of unfunded benefits
Net interest on the defined liability
Actuarial gain/(loss)
Effect of the asset ceiling
Net defined asset/(liability) at 31st July 2024		 Region
2024
£’000
-
(2,451)
2,142
43
(3)
6,230
(6,263)
(302)		 College
2024
£’000
-
(1,878)
1,621
43
(2)
(86)
-
(302)		 Region
2023
£’000
17,057
(4,000)
2,630
41
575
18,582
(34,885)
**- **		 College
2023
£’000
14,666
(3,082)
2,027
41
496
14,979
(29,127)
-

Page 99 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

Asset and Liability Reconciliation

Restated Restated
Region College Region College
2024 2024 2023 2023
£’000 £’000 £’000 £’000
Changes in the present value of defined benefit
obligations
Defined benefit obligations at start of period 69,901 56,535 84,517 68,489
Current and past service cost 2,451 1,878 4,000 3,082
Interest cost 3,557 2,875 3,007 2,434
Contributions by Scheme participants 852 654 785 607
Experience gains and losses on defined benefit
obligations 7,481 6,187 4,689 3,780
Changes in financial assumptions (2,962) (2,399) (24,109) (19,449)
Changes in demographic assumptions (1,552) (1,202) (1,192) (970)
Estimated benefits paid (2,503) (1,972) (1,796) (1,438)
Defined benefit obligations at end of period 77,225 62,556 69,901 56,535
Changes in fair value of plan assets
Fair value of plan assets at start of period 104,786 85,662 101,574 83,155
Interest on plan assets 5,316 4,344 3,582 2,930
Return on plan assets 4,059 3,411 (2,030) (1,660)
Other experience 421 421 - -
Employer contributions 2,142 1,621 2,630 2,027
Contributions in respect of unfunded benefits 43 43 41 41
Contributions by Scheme participants 852 654 785 607
Estimated benefits paid (2,460) (1,929) (1,755) (1,397)
Unfunded benefits paid (43) (43) (41) (41)
Fair value of plan assets at end of period 115,116 94,184 104,786 85,662

In line with FRS102, opening balances brought forward have been restated to split assets and liabilities according to the Hymans Robertson report. “Other experience” losses were shown net and have been adjusted to decrease assets by £2,327k and increase liabilities by £2,327k.

Page 100 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

25. BURSARY AND OTHER STUDENT SUPPORT FUNDS

REGION

EGION
FE Bursaries and other Student Support funds
FE Bursary
£’000
Balance brought forward
1,439
Allocation received in year
12,848
Expenditure
(13,106)
Repaid to SFC (recovery of funds)
(1,454)
Colleges contribution to funds
15
Intra-Region allocations
-
Virements
394
Funds retained by Colleges

Balance carried forward
136
Represented by:
Repayable to SFC (recovery of funds)
136
Repayable to Region
-
Retained by Colleges for students
-
136
FE and HE Childcare funds
Balance brought forward
Allocation received in year
Expenditure
Repaid to SFC (recovery of funds)
Colleges contribution to funds
Intra-Region allocations
Virements
Funds retained by Colleges
Balance carried forward
Represented by:
Repayable to SFC (recovery of funds)
Repayable to Region
Retained by Colleges for students		 EMA
£’000
-
776
(776)
-
-
-
-

-
-
-
-
-		 Other
£’000
181
745
(870)
(181)
-
-
125

-
-
-
-
**- **		 2023/24
Total
£’000
1,620
14,369
(14,752)
(1,635)
15
-
519
136
136
-
-
136
2023/24
Total
£’000
887
2,856
(1,630)
(887)
-
-
(519)
-
707
707
-
-
707		 2022/23
Total
£’000
1,420
15,256
(13,508)
(1,405)
-
-
(143)
-
1,620
1,620
-
-
1,620
2022/23
Total
£’000
991
2,969
(2,020)
(991)
-
-
(62)
-
887
887
-
-
887

These funds with the exception of FE and HE Childcare, represent grants made available which are available solely for the students, with the College acting only as paying agent. The grants and related disbursements are therefore excluded from the Statement of Comprehensive Income.

Page 101 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

25. BURSARY AND OTHER STUDENT SUPPORT FUNDS

COLLEGE

FE Bursaries and other Student Support funds
FE
Bursary
£’000
Balance brought forward
1,340
Allocation received in year
9,338
Expenditure
(9,732)
Repaid to SFC (recovery of funds)
(1,355)
College contribution to funds
15
Intra-Region allocations
-
Virements
394
Funds retained by College
-
Balance carried forward
-
Represented by:
Repayable to SFC (recovery of funds)
-
Repayable to Region
-
Retained by College for students
-
-
FE and HE Childcare funds
Balance brought forward
Allocation received in year
Expenditure
Repaid to SFC (recovery of funds)
College contribution to funds
Intra-Region allocations
Virements
Funds retained by College
Balance carried forward
Represented by:
Repayable to SFC (recovery of funds)
Repayable to Region
Retained by College for students		 EMA
£’000
-
705
(705)
-
-
-
-
-
-
-
-
-
**- **		 Other
£’000
181
671
(796)
(181)
-
-
125
-
-
-
-
-
-		 2023/24
Total
£’000
1,521
10,714
(11,233)
(1,536)
15
-
519
-
-
-
-
-
-
2023/24
Total
£’000
887
2,517
(1,291)
(887)
-
-
(519)
-
707
707
-
-
707		 2022/23
Total
£’000
1,269
11,565
(10,101)
(1,274)
-
-
62
-
1,521
1,521
-
-
1,521
2022/23
Total
£’000
991
2,562
(1,613)
(991)
-
-
(62)
-
887
887
-
-
887

Page 102 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

26. ACCOUNTING ESTIMATES AND JUDGEMENTS

JUDGEMENTS

With the Region and College accounting reference date reflecting the end of the academic year, there are only a few judgements made that impact upon the application of the Accounting Policies (note 1) to the financial statements.

The Colleges act as an agent in the collection and payment of certain student support funds (see note 25). These funds are excluded from the College income and expenditure accounts, and movements have been disclosed in the notes to the accounts. Where the College has more discretion in the way specific funds are disbursed, and those funds do not meet the definition of agency funds, the income and expenditure relating to those funds are shown in the College’s income and expenditure account.

Separately, when considering indicators of impairment of the College’s Fixed Assets, the College considers the economic viability and the expected future financial performance of the asset in reaching a decision.

ESTIMATES

The Financial Statements contain estimated figures that are based on assumptions made by the Colleges about the future or that are otherwise uncertain. Estimates are made considering historical experience, current trends, and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Colleges’ Statement of Financial Position 31 July 2024, for which there is a significant risk of material adjustment in the forthcoming financial year, are as follows:

Pension Balance : The estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which pay is projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. Strathclyde Pension Fund has engaged a firm of consulting actuaries to provide expert advice about the assumptions to be applied. The effects on the net pension’s asset of changes in individual assumptions can be measured in the Sensitivity Analysis below:

Change in assumptions at Approximate increase to Approximate monetary
31st July 2024 Defined Benefit Obligation amount (£000)
0.1% decrease in real discount 2% 1,229
rate
1 year increase in member life 4% 2,502
expectancy
0.1% increase in the salary 0% 75
increase rate
0.1% increase in pension 2% 1,178
increase rate (CPI)

Page 103 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

The effect of the asset ceiling is shown below:

Fair value of plan assets at end of period
Fair value of plan obligations at end of period
Net defined asset/(liability) at 31 July 2024
Asset ceiling adjustment
Adjusted net defined asset/(liability)		 Region
2024
£’000
115,385
(77,494)
37,891
(38,193)
(302)		 College
2024
£’000
94,184
(62,556)
31,628
(31,930)
(302)		 Region
2023
£’000
105,055
(70,170)
34,885
(34,885)
-		 College
2023
£’000
85,662
(56,535)

29,127
(29,127)

-

26. ACCOUNTING ESTIMATES AND JUDGEMENTS

ESTIMATES

Land and Building valuations and useful economic lives: College buildings are of a specialist nature and are valued on the depreciated replacement cost basis. These assets are revalued on a three-year cycle, with valuation assumptions ascertained by professional valuers who have considered the potential uncertainty regarding asset valuations arising from the current economic climate. The carrying amount of Land and Buildings as at 31 July 2024 is £182m for the Region. The impact of a 1% change in the valuations of these assets would change the value of them by £1.8m. Buildings are depreciated over their expected remaining useful economic life as assessed by an independent, qualified valuer. The useful lives are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets. Any decision to increase or reduce expenditure in this area could affect the useful lives of assets.

27. IMPACT OF DEPRECIATION BUDGET ON STATEMENT OF COMPREHENSIVE INCOME

Surplus/(Deficit) before other gains and losses
(FE/FE SORP basis) for Academic Year
Add: depreciation budget for Government funded
assets (net of deferred capital grant) for
Academic Year
Operating surplus (deficit) on Central
Government accounting basis for Academic Year		 Region
2024
£’000
(6,090)
1,060
(5,030)		 College
2024
£’000
(4,911)
863
(4,048)		 Restated
Region
2023
£000
(5,699)
1,060
(4,639)		 Restated
College
2023
£000
(5,079)
863		 Restated
College
2023
£000
(5,079)
863
(4,216)

Following reclassification, incorporated Colleges received a non-cash budget to cover depreciation but this additional budget is not recognised under the FE/HE SORP accounting rules. Colleges may show a deficit equivalent to net deprecation as a result of having to meet Government accounting rules and the requirement to spend the entire cash allocation.

Page 104 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

Under the FE/HE SORP, the Region recorded an operating deficit of £6,090k for the year ended 31[st] July 2024. After adjusting for the non-cash allocation provided under Government rules, the Region shows an “adjusted” deficit of £5,030k on a Central Government accounting basis. Although this would suggest that the Region is operating beyond its funding allocation, the key accepted metric for Audit Scotland and the SFC is the Underlying Operating Position, which as per below is reporting a surplus.

The above surplus differs from the Underlying Operating Position surplus of £662k shown in the Financial Performance section at the front of these accounts, which adjusts for the actual depreciation less deferred capital grants as well as for non-cash pension adjustments, Job Evaluation and any non-government capital grants, in line with SFC guidance.

28. RELATED PARTY TRANSACTIONS

Related Party Transactions

NCL is a body incorporated under the Further and Higher Education (Scotland) Acts 1992 and 2005 and is sponsored by the Scottish Government via the Scottish Funding Council (SFC). The Scottish Government and the SFC are regarded as related parties. During the period, NCL has had various material transactions with the SFC. Note 2 details the grant income received from the SFC.

In addition, NCL has had various material transactions with other Government Departments. Most of these have been with North Lanarkshire Council, South Lanarkshire Council, East Dunbartonshire Council, the Student Awards Agency Scotland, Scottish Enterprise, Skills Development Scotland and the Department for Work and Pensions.

Due to the nature of NCL’s operations and the composition of its Board of Management (being drawn from local public and private sector organisations), it is inevitable that transactions will take place with organisations with which the Colleges Board of Management has an interest. With the exception of SLC and Nursery education provided by the 100% subsidiary Amcol Scotland Limited, all transactions involving organisations in which a member of the Colleges Board of Management may have a material interest, are conducted at Arm’s-length in accordance with normal project and procurement rules.

The Colleges’ employees belong to one of two principal pension schemes, the Scottish Teachers Pension Scheme (STPS) which is operated by the Scottish Public Pensions Agency and the Local Government Superannuation Scheme, the Strathclyde Pension Fund (SPF). Both STPS and SPF are defined benefit schemes (note 24).

Other than the above, the College had transactions with no other publicly funded, representative and other non-public bodies in which Board of Management members held official positions during the period to 31[st] July 2024. During the year, NCL entered into the following material transactions with the following Board Members, members of the Executive Board and other related parties:

South Lanarkshire College

During the year ended 31[st] July 2024, SLC was charged £50k by NCL covering membership fee recharges and contributions to the costs of the Regional Board (£65k for the year 2022-23). At 31[st] July 2024 £Nil had yet to be invoiced in relation to this recharge.

At 31[st] July 2024, other than the above, SLC was a net debtor to the value of £8k.

Page 105 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

Amcol Scotland Limited

During the year ended 31[st] July 2024, NCL worked closely with Amcol Scotland Limited in furthering the provision of Further Education in the community. During the year ended 31[st] July 2024, Amcol Scotland Limited provided the College with goods and services (including the provision of childcare to assist 88 incidents of placement) to a total value of £467k (Note 28).

Rent and Service Charges payable to the College by Amcol Scotland Limited totalling £185k were paid in respect of the year ended 31[st] July 2024.

At 31[st] July 2024, Amcol Scotland Limited was a net debtor to the value of £Nil.

During the year in question, the following members of the Board of Management and the Executive Board were connected being Directors of Amcol Scotland Limited: (Chair of the Lanarkshire Board), (Support Staff Member of the Board of Management), (Chief Resources Officer/CRO) and (Deputy Principal for Students and the Curriculum).

During the year ended 31[st] July 2024 the following charges were made by New College Lanarkshire:

2023/24 2022/23
£’000 £’000
Amcol Scotland Limited 185 185
South Lanarkshire College 50 65

The following charges were made by Amcol Scotland Limited to New College Lanarkshire for the provision of Childcare:

2023/24 2022/23
£’000 £’000
New College Lanarkshire 467 432

The following balances were outstanding to NCL as at 31[st] July 2024:

2023/24 2022/23
£’000 £’000
Amcol Scotland Limited (net Debtor) - 13
South Lanarkshire College (net Debtor) 8 24

The following balance is due to SLC from NCL as at 31[st] July 2024:

2023/24 2022/23
£’000 £’000
Regional SFC funding to transfer - 234

Page 106 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

29. PRIOR YEAR ADJUSTMENT

NCL properties were revalued by Ryden LLP at 31[st] July 2024 using depreciated replacement cost, having previously been revalued at 31[st] July 2023. Opening balances have been restated at 31[st] July 2023 to exclude finance costs in the replacement cost valuation, in line with the instant build approach prescribed by the Government Financial Reporting Manual.

The valuation included in 2022/23 financial statements which included finance costs was based on a valuation provided by Ryden LLP, RICS qualified valuation specialists. This decreased both the net book value of Land and Buildings Asset and the Revaluation Reserve by £24,491k.

Motherwell and Kirkintilloch Land was purchased on 125 year leases and previously capitalised.

The Kirkintilloch lease has been amortised in full due to materiality and the Motherwell land purchase has been restated as an operating lease, with amortisation to date written down.

Land and Buildings Fixed Assets are reduced by £1,726k and the purchase price of £6.6m for Motherwell land is prepaid and amortised to date, represented in Trade and Other Receivables due in less than one year at £54k and Other receivables due after more than one year, balance £5,671k.

Plant and Equipment Assets previously removed and identified as in still use have been reinstated at cost less accumulated depreciation (£1,173k). All areas impacted in 2023/24 and 2022/23 are designated “restated” throughout, including the Statement of Comprehensive Income, Statement of Changes in Reserves and the Statement of Financial Position.

Page 107 of 108

New College Lanarkshire

Regional Financial Statements for the Year Ended 31[st] July 2024

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31[st] July 2024

Appendix One

Accounts Direction for Scotland’s Colleges 2023-24

It is the Scottish Funding Council’s direction that institutions[1] comply with the 2019 Statement of Recommended Practice: Accounting for Further and Higher Education (SORP) in preparing their annual report and accounts[2] .

  1. Institutions must comply with the accounts direction in the preparation of their annual report and accounts in accordance with the Financial Memorandum with the Scottish Funding Council (SFC) or the Regional Strategic Body (RSB) (for assigned colleges).

  2. Incorporated colleges and Glasgow Colleges’ Regional Board are also required to comply with the Government Financial Reporting Manual 2023-24 (FReM) where applicable. In cases where there is a conflict between the FReM and the SORP, the latter will take precedence.

  3. Incorporated colleges and Glasgow Colleges’ Regional Board must send two copies of their annual report and accounts to the Auditor General for Scotland by 31 December 2024.

  4. The annual report and accounts should be signed by the chief executive officer / Executive Director and by the chair, or one other member of the governing body.

  5. Incorporated colleges and Glasgow Colleges’ Regional Board should reproduce this Direction as an appendix to the annual report and accounts.

Scottish Funding Council

18 September 2024

1 The term “institutions” includes colleges and Glasgow Colleges’ Regional Board

2 Glasgow Colleges’ Regional Board’s accounts are prepared on a consolidated basis, incorporating the results of City of Glasgow College, Glasgow Clyde College and Glasgow Kelvin College. New College Lanarkshire’s accounts are also prepared on a consolidated basis, incorporating the results of South Lanarkshire College.

Page 108 of 108

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New College Lanarkshire: Registered Charity Number SC021206