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Annual Report and Accounts For 16 month period ending 30 April 2015

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Reference and the Administrative Information The Co-operative College was founded in 1919 and the Co-operative College Trust is registered with the Charity Commission.

Legal and Administrative Details

Registered charity number: 1060008 Registered Offices: Corporate Trustee: Co-operative College Co-operatives UK Holyoake House Holyoake House Hanover Street Hanover Street Manchester Manchester M60 0AS M60 0AS

The Trustees, Governors, Officers and Advisors

The day to day responsibility for operations is delegated to the College Leadership Team, which comprises: Mervyn Wilson Chief Executive and Principal (to 6 April 2015)

Simon Parkinson Chief Executive and Principal (from 6 April 2015)1

Emma Willder Vice Principal – Finance and Resources

Linda Shaw Vice Principal – Co-operative Education and Research (to 31 March 2015)

Cilla Ross Vice Principal – Co-operative Education and Research (from 1 April 2015)

Gillian Lonergan Head of Heritage Resources

Julie Thorpe Lead for School Programmes and Digital Learning

1 Simon Parkinson acted as Chief Executive and Principal Designate from 2 March to 5 April 2015

1 Simon Parkinson acted as Chief Executive and Principal Designate from 2 March 2015 – 5 April 2015

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Principal Advisors

Bankers: Co-operative Bank plc

Balloon Street Manchester M60 4EP

Auditor: KPMG LLP

Chartered Accountants Registered Auditor 1 St Peter’s Square Manchester M2 3AE

Internal Auditors: Slade and Cooper Ltd Chartered Certified Accountants

Green Fish Resource Centre 46-50 Oldham Street Manchester M4 1LE

Co-operatives UK is the Corporate Trustee of the Co-operative College Trust. All members of the Board are appointed by the Corporate Trustee. In the case of the student, staff, The Co-operative Group and Consumer Co-operative members, the appointment follows a nomination process from within the relevant constituency.

The College Board of Governors comprised 15 governors at April 2015. The governors and their membership categories are shown below, along with the committees they serve on, and their attendance record.

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Membership Category Member Committees Chair (Independent) Paul Sommerfeld Search & Effectiveness

Remuneration & Employment

Adult Lifelong Learning Member Nigel Todd (Vice Chair) Quality & Standards (Chair)

Trustee Members Ed Mayo Search & Effectiveness Remuneration & Employment

Frank Nelson (to 31 Aug 2014) Audit & Risk (to 31 Aug 2014) Linda Ward (from 1 Sept 2014) Peter Couchman Audit & Risk (from 1 Sept 2014) Nick Matthews

Consumer Co-operative Members Margaret Jarvis Kay McCullough Quality & Standards

Other Co-operative Sector Member Dave Brockington

Co-opted Member Russell Gill Search & Effectiveness Remuneration & Employment

Tony Gudgeon Audit & Risk (Chair) Remuneration & Employment

Higher Education Member Tony Webster

Staff Member Steve Kingman

Student Member Pamela Maxwell Quality & Standards

Chief Executive & Principal Mervyn Wilson Quality & Standards Search & Effectiveness Attends: Audit & Risk, Remuneration & Employment

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The governors’ attendance at Board meetings for 2014/15 is shown in the table below, with the average attendance being 86%. The floor target set for overall attendance is 75%:

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Committees of the Board

Quality & Standards Committee Audit & Risk Committee Nigel Todd (Chair) Board Member (Vice Chair) Tony Gudgeon (Chair) Board Member Pamela Maxwell Board Member Frank Nelson Board Member (to 31 Aug 2014) Kay McCullough Board Member Peter Couchman Board Member (from 1 Sept 2014) Mervyn Wilson Chief Executive & Principal Dave Thomson Independent Member Joan Keysell College Client Geoff Clarke Independent Member John Mills College Client (to 1 March 2014) Remuneration & Employment Committee Search & Effectiveness Committee Paul Sommerfeld (Chair) Board Member (Chair) Paul Sommerfeld (Chair) Board Member (Chair) Ed Mayo Board Member (Trustee) Ed Mayo Board Member (Trustee) Tony Gudgeon Board Member Russell Gill Board Member Russell Gill Board Member Mervyn Wilson Chief Executive & Principal

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Annual Report The Co-operative College Trustee and Governors present their Annual Report for the 16 month period ending 30 April 2015 under the Charities Act 2011, together with the audited accounts for the period, and confirm that the latter comply with the requirements of the Act, the Trust Deed and the Charity Statement of Recommended Practice 2005. The report is for an extended period as the charity transferred to a Charitable Incorporated Organisation (registered charity number 1159105) on 1 May 2015.

Public Benefit The Trustee and Governors confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to public benefit guidance by the Charity Commission in delivering the activities undertaken by the Charity. The College’s charitable objective is to promote the education of the public, in particular, but not exclusively, by the provision and conduct of a College for the education of people in a manner consistent with the values and principles of the co-operative movement. The College’s activities as described in this report are considered to meet the public benefit requirement as specified in the Charities Act 2011.

Chair’s Introduction This is the last report from the Co-operative College under the governance of a Board of Governors responsible to Co-operatives UK as sole corporate Trustee. The College has now become a Charitable Incorporated Organisation (CIO) led by a fully independent Board. On 1 May 2015 an Interim Board took over responsibility and will in turn eventually be replaced by a Board elected from differing constituencies yet to be determined once a membership base has been created. The College will then be as close to being an independent co-operative as is possible while also being a not-for-profit charity.

This major change and separation from Co-operatives UK has been a long time in the preparation. It involved consultation across the co-operative movement some years ago, much discussion between the Board of Co-operatives UK and the College Board of Governors, and then a time-consuming series of complex legal steps. It has been a major pre-occupation of the outgoing Board of Governors and involved a great deal of work by several key members of staff of the College and of Co-operatives UK. The outcome is an independent, member controlled College with the flexibility to respond to rapidly changing needs for training in the co-operative movement and to be a force for education in co-operation of the public at large and of institutions that do not necessarily see themselves specifically as co-operatives.

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This report is also significant for covering the last period of Mervyn Wilson as Chief Executive and Principal (CEP). Mervyn is a ball of energy who for over 40 years within the movement was totally committed to promoting and developing co-operation. From 1992 he was on the staff of the College, initially responsible for member education and then as CEP from 2000 onwards. He retired on 6 April 2015. That the plaque given to Mervyn by Governors describes him as a legend in co-operative education is no exaggeration. He led the great change of the College from a residential institution at Stanford Hall to a provider of short programmes across the country based in Manchester; he led the promotion of co-operative schools, moving from none ten years ago to over 850 today, creating an entirely new co-operative sector in the United Kingdom and the largest group of schools within the state sector after the faith-based groups; he led the diversification of the College so that it is recognised not only for training of co-operators within the big consumer co-operatives but also for a growing reputation as an academic home for research students interested in co-operation, a force for building training in co-operation internationally, and, on behalf of the Co-operative Heritage Trust, the home of British co-operative archives and study of our co-operative heritage. That diversification has proved essential when the College had to face, like many other co-operative support agencies, the challenge of a massive drop over the past eighteen months in the level of core support from The Co-operative Group following its own problems. The College also faced a drastic reduction in the quantum of training commissioned by the Group. This has been, therefore, an exceptionally difficult period for the College but with less negative impact than might have been but for the breadth of activity developed over the past ten years. The College continues to be an essential part of the infrastructure supporting the co-operative movement in the United Kingdom and beyond. As can be seen in this report, a committed team of staff and associates, despite all the difficulties and changes of the past period, manages to deliver an impressive range of initiatives and products. We are also proud to have been reaccredited as an Investor in People Beyond the Standard silver. My own time as Chair of Governors is also ending, having handed over to Nigel Todd, Chair of the Interim Board of the new CIO-structured College. It has been an exciting five and a half years and a privilege to contribute to sustaining and growing such an important institution of the co-operative movement. It is with real gratitude that I say thank you to all my fellow Governors, to all the staff of the College, and to the leadership of Co-operatives UK.

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Now, I look forward once the new membership system is open, to being an ordinary member within the new structure and hope that many, many others will join me in taking this new opportunity to influence and to show support and interest in the work of the Co-operative College. Paul Sommerfeld Chair, Board of Governors

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Structure Governance and Management

Governing Document

The Charity is administered in accordance with a Charity Commission Trust Scheme last amended on 23 June 2004 and governed in accordance with the Instrument and Articles of Governance last amended in March 2012 by the Secretary of State for Business, Innovation and Skills. The College is a designated further education institution under the Education Acts.

Governing Body Structure and Organisational Management

The Charity comprises a Corporate Trustee (Co-operatives UK), legally responsible for the overall management and control of the Charity and a Board of Governors operating under powers delegated by the Corporate Trustee in accordance with the Instrument and Articles of Government. The Board of Governors meets at least five times a year and is chaired by an Independent Chair, Paul Sommerfeld. Governors attend an annual away day. Four representatives from the Corporate Trustee are also members of the Board of Governors. As part of the planned change in legal governance structure, a Charitable Incorporated Organisation (CIO) was registered with the Charity Commission on 6 November 2014 and transition arrangements were put in place to facilitate the smooth transfer of assets from the current unincorporated association to the CIO. It was agreed that the transfer would take place on 1 May 2015. During this governance transition phase, Trustees of the Charitable Incorporated Organisation (CIO) were invited to attend meetings of the College Board as observers, in accordance with the relevant provisions and conditions contained in the existing Instrument and Articles of Government. The Charity operates four subcommittees. The Audit & Risk Committee and the Quality & Standards Committee additionally include members who are not members of the Board of Governors. The Audit & Risk Committee is chaired by Tony Gudgeon and meets at least four times a year to consider financial and risk management issues, the Annual Report and Audited Accounts, reports and reviews undertaken by the internal auditors, the College Strategic Plan and Budgets and to make recommendations to the Board on these matters. The Remuneration & Employment Committee reviews the remuneration packages of the Chief Executive and Principal and senior post holders in addition to considering succession planning issues. The Search & Effectiveness Committee considers Board recruitment, training and effectiveness amongst its remit. The Quality & Standards Committee is chaired by Nigel Todd and meets three times a year to consider curriculum and learning provision. Two Trustee representatives currently also serve on subcommittees of the Charity.

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All Board and Committee Terms of Reference are reviewed, updated and formally approved annually. In September 2014 the Audit and Risk Committee undertook a training session, facilitated by the Charity’s external auditors, to update committee members on SORP/FRS102, audit update, investment strategy and reserves strategy. The College is one of the founding members of the Co-operative Heritage Trust and performs work for the Trust under a management agreement. The College Board receives an annual report from the Co-operative Heritage Trust.

Recruitment and Training of Governors

The Board of Governors is formally appointed by the Corporate Trustee. An independent Chair is recruited by the Corporate Trustee and the current Chair was recruited following the position being advertised externally. Four representatives from the Corporate Trustee serve on the Board of Governors and The Co-operative Group also nominates one board member. In accordance with the Instrument and Articles and in common practice with the widespread governance model across the further and higher education sector, the Chief Executive and Principal serves on the Board and elections are held for staff and student member representation. Remaining positions on the Board are appointed by the Trustee following nominations received from the Search & Effectiveness Committee. Potential candidates are identified based upon eligibility, competence, specialist skills and availability to represent the different stakeholder groups identified under section 2 of the Instrument and Articles of Government. The College advertises casual governor vacancies on its website. The Charity is keen to ensure that membership of the Board of Governors reflects the strategic needs of the College and the diversity of the communities it serves. The Board of Governors is serviced by a part-time independent Clerk in accordance with the Instrument and Articles and common practice across the education sector. In May 2014 the term of office of the consumer co-operative sector Governor was extended by the Corporate Trustee, to ensure quoracy at all times during the transition period between existing governance arrangements and the move towards incorporation as a new legal entity. Due to the planned demise of the current board as a result of the imminent change in legal governance structure, it was agreed that whilst the Board remained quorate, casual vacancies would no longer be filled. One casual vacancy arose at the end of 2013 and accordingly it was agreed this vacancy would remain vacant during 2014. All new governors are inducted into the workings of the Charity and its policies and procedures and take part in formal training on safeguarding regulations when these are held at various times in the year. New Governors meet senior members of staff at the College and are also given an induction by the Clerk on the contents of the comprehensive Governor Handbook, updated annually. All Governors are provided with copies of the Charity Commission guidance publications The Essential Trustee, The Hallmarks of

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an Effective Charity, It’s Your Decision: charity trustees and decision making and Good Governance: A Code for the Voluntary and Community Sector, in addition to copies of the latest strategic plan and annual report and accounts. The Clerk additionally updates Governors with relevant training and guidance materials through the year with accompanying explanations and narratives in the Clerk’s report circulated before Board meetings. Governors are additionally given the opportunity to attend external trustee training events in the charity and education sectors. During 2014 all Governors were provided with copies of The Big Board Talk: 15 Questions Trustees Need to Ask, each edition of Charity Commission News, The Charity Commission’s Trustee Handbook and the revised Charity Commission revised guidance on conflicts of interest. Governors were also signposted to the new Excellence in Governance online resource library at the Association of Colleges. Governors are regularly provided with updates and links to resources available from the Institute of Chartered Accountants Charity and Voluntary Sector Group in addition to all Charity Commission publications and podcasts. During March 2014, a joint governance workshop was held for members of the Board of Governors and members of the Corporate Trustee Board. This workshop followed on from the previous joint governance training workshop held in September 2013 facilitated by an external charity law expert. The first workshop had explored options for incorporation and a decision was subsequently made to incorporate as a Charitable Incorporated Organisation (CIO). The March 2014 workshop introduced the Corporate Trustee Board and Governors to a draft constitution that complied with the Charity Commission’s model CIO constitution and additional constitutional requirements contained within the Education Acts as a result of the College’s ‘designated’ College status. The March 2014 workshop considered the transitional arrangements for the College to move from an unincorporated association to a CIO, the process for appointing trustees to the new CIO, the process for registering the new CIO and the process required to enable the transfer to take place in accordance with the existing Trust Deed, existing Instrument and Articles of Government and the Charities Act 2011. All Governors abide by a code of conduct, a code of ethics, a Governor role specification and are expected to act in line with both the charitable objectives and co-operative principles and values. Completion of a declaration of interests is also required annually. Governors are encouraged to discuss individual training needs with the independent Chair during the Board appraisal process. External training is also offered to Governors following any identification of individual training needs during the appraisal process. This has been taken up previously. During 2014 external training courses were also offered to members of the College Audit and Risk committee. The College’s external auditors, KPMG have provided training previously for the Audit and Risk committee and further training from KPMG is planned during 2015.

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Review of Governance Structure

The Corporate Trustee resolved in December 2011 to consult on proposals for a new structure under which Co-operatives UK would no longer be the Corporate Trustee. This followed consideration of how the Charity might best be equipped moving forwards to fulfil its charitable objectives and serve current and future generations of beneficiaries. A specialist governance review group was established which undertook stakeholder consultation as part of its work. With the agreement of the Corporate Trustee, a further small working group from the Board of Governors, assisted by an external legal governance consultant, was established during 2012 to explore available governance options. It was recognised that as part of this governance review the College needed to undergo the process of incorporation in order to address practical, legal and governance imperatives. Following the work carried out during 2012, various governance options were considered at length during 2013. In September 2013, it was agreed that the Co-operative College would explore incorporation as a Charitable Incorporated Organisation (CIO) using the association model in order to achieve a membership model that is consistent with the values and principles of the co-operative movement. Throughout 2014 officers from Co-operatives UK (legal officers and Secretary) and the Co-operative College (Vice Principal — Finance and Resources and the independent Clerk), reported to a governance steering group of Board members from both organisations and finalised a draft constitution for a CIO. All the current constitutional documents for the College have been reviewed in detail in order to consider the relevant educational, legal and charitable governance provisions for inclusion in a revised constitution, taking into account that the College has special ‘designation’ as an educational institution under the 1992 Further and Higher Education Act. As required by the College Trust Deed, the change in governance structure has been approved by the Corporate Trustee, Co-operatives UK and the College Board of Governors. Regular correspondence and face-to-face meetings took place with the Department of Business Innovation and Skills and the Charity Commission throughout 2014 to ensure that the proposed changes to the governance structure were carried out in full compliance with the law and the existing Trust Deed and Instrument and Articles of Government. The new CIO (charity number 1159105) was formally registered by the Charity Commission on 6 November 2014. The Charity Commission approved the Trustee asset transfer power resolution on 17 December 2014, giving the Trustee the power to transfer the assets of the College to the new CIO from 7 February 2015 onwards. The Trustee and Governors agreed that the transfer should take place on 1 May 2015 and an external law firm was engaged to provide a letter of comfort on the transfer deed and the due diligence process carried out in the first quarter of 2015. The new CIO trustees have held 2 formal meetings since the new CIO was registered, formed an Audit and Risk committee, formed a Remuneration and Employment committee which has met regularly and held 2 strategy and planning days. The CIO Trustees have undergone an initial induction process, been invited to attend meetings of the outgoing Board of Governors and have undergone an online safeguarding training course as part of their induction and as part of the continuity

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planning arrangements. The Clerk to the outgoing Board of Governors will act as Clerk and Governance Advisor to the new CIO Trustees as part of the transition arrangements and to provide continuity and consistency during the process of change.

Internal Control

The Board has conducted a review of the effectiveness of the systems of internal control. The Trustee is ultimately responsible for the Trust’s system of internal control and reviewing its effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve the Charity’s business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Co-operative College Trust has elected to work within the Co-operatives UK Corporate Governance Code of Best Practice for Consumer Co-operative Societies, revised 2013, where applicable. During 2014 the Audit Committee reviewed the recommendations made by both this and the Association of Colleges (AoC) Code of Practice. Key procedures have been established, providing effective internal financial control. These include:

Clearly defined lines of responsibility and delegation.

Operation within approved financial regulations.

Budget setting and approval.

Regular review of performance and forecasts against the budget approved by the Trust’s management team.

Reporting to and review by the Trust’s Audit Committee and Board of Governors on a regular basis. Slade and Cooper Ltd (Chartered Certified Accountants) were appointed as Internal Auditors to the College in May 2013. In the period to 30 April 2015 the Internal Auditors reviewed the following areas: Outgoing Resources, Security, Salesforce, Risk Management and Cost Recovery as well as reviewing the financial systems, policies and procedures of the Co-operative Heritage Trust. Slade & Cooper have given the following statement:

Slade & Cooper’s internal audit work is carried out in accordance with the International Standards for the Professional Practice of Internal Auditing issued by The Institute of Internal Auditors. The focus of this work is on the evaluation and improvement of the effectiveness of risk management, internal controls and governance.

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The work completed to date has focused upon the key areas of the accounting function together with a review of risk management processes, security arrangements and some specific topics. Risks are categorised as low, medium or high with relevant recommendations being made for future improvement of the College’s procedures with a view to reducing risk. Any identified risks considered to be medium or high are highlighted within the internal audit report. Where appropriate, recommendations are made – these may be specific or general in nature, relating to specific risks or otherwise. To date no issues have been categorised as high risk. All recommendations have been received positively, responded to and acted upon.

The implementation of the recommendations will be reviewed as part of the coming year’s internal audit programme for the new CIO.

Risk Management

The Trust’s management, Board of Governors and Trustee have a clear responsibility for:

Identifying risks facing the business.

Putting in place actions and procedures to mitigate and control risks.

Monitoring risks. The Trust’s management regularly reviews and updates its risk register and plans to manage risks identified through its planning cycle. The Audit and Risk Committee has regularly reviewed the register and reported to the Board on actions by the College management to control risks. The top three key risks that the charity is currently facing have been identified as:

Funding, in the short, medium and long term.

Business development.

Marketing and communications. The College has controls in place and mitigating actions to undertaken in order to reduce and control the identified risks.

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Objects, Aims Objectives and Activities

Charitable Objectives

The object of the Charity as defined in the Trust Deed is: To promote the education of the public, in particular, but not exclusively, by the provision and conduct of a College for the education of people in a manner consistent with the values and principles of the co-operative movement.

Vision

To be world leaders in education for co-operation.

Mission

To put education at the heart of co-operation and co-operation at the heart of education.

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Strategic Objectives and Achievements during 2014/15

To develop a co-operative curriculum and learning framework of progression.

To build institutional co-operative education capacity within the state education system.

To develop strategic partnerships to develop and deliver co-operative education and research.

To build the reputation of the College as a centre of excellence in co-operative education backed by robust quality systems.

To ensure that the College is a well governed, financially secure charity that balances innovation with stability. Objectives for the Period The College has developed a robust strategic planning process that involves the Trustee, Board of Governors, key stakeholders, staff and Associates of the College. The resulting rolling three year plan identifies measures for each of the strategic objectives that will enable the Charity to progress towards the achievement of its vision. The College Board has approved a plan and budget for the period to the end of July 2015 when the CIO new financial year commences. Principal Activities for the Period The principal activities for the period are detailed in the report on pages 19 to 28. Staff People are at the heart of the College and the College recognises that it has a highly skilled, competent and committed team. This was evidenced by the Investor in People review that took place in November 2014 where the College was recognised as being ‘Beyond the Standard (Silver)’, the second time it has achieved this recognition. An equitable pay scheme was introduced in 2012. This combines a flat rate payment and a lower percentage award and ensured that lower paid staff benefit most. The College aimed to achieve a ratio of the lowest:highest salary of 1:5 by the end of 2014. The current ratio is 1:5.46 excluding Co-operative Heritage Trust staff (1:5.52 in 2013). The College will achieve the desired ratio of 1:5 during 2015. The College also employs a number of apprentices and, in line with co-operative values, has taken the decision that it

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will pay above the apprentice rate of £2.73 per hour. The current average apprentice rate at the College is £6.59 per hour. The College also ensures that all its employees (with the exception of apprentices) are paid a living wage. The current living wage in the UK is £7.85 per hour (outside London). The minimum amount per hour paid by the College to its employees is £9.86. The College continued work on a revised Reward and Recognition Strategy. This was subject to extensive consultation and approved in February 2015. It will be implemented in stages from August 2015, subject to affordability. The Staff Development Programme has continued, building capacity for knowledge transfer and succession. Staff satisfaction levels have remained high at 88%. The Board of Governors and Leadership Team of the College would like to thank all the staff for their ongoing commitment in helping the College towards fulfilling its vision to be a world leader in education for co-operation. Volunteers The College has encouraged and supported volunteers within the Heritage area of its activities. Policies and procedures to involve and support volunteers have been reviewed and the College is exploring ways in which volunteers can be engaged in a wider range of activities in the future. In the Archive and Museum, volunteers and placement students work with staff, gaining hands-on experience in the heritage sector. Wherever possible, projects are tailored to the volunteer’s particular area of interest. The Archive receives volunteers who are seeking to join the Archive profession and those who wish to pursue an interest in historical research. The Museum welcomes volunteers wishing to work with artefacts and those interested in welcoming Museum visitors. In 2014 the Archive had volunteers contributing 86 days. The Museum’s team of volunteers contributed 1,922 hours of work. An event was held at the end of the year where three volunteers reported on work they had carried out and volunteers were presented with certificates to mark their contribution to the running of the Museum. These volunteers provide a valuable resource and the College would like to acknowledge its thanks to them.

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Review of Achievement and Performance for 16 month period ending 30 April 2015

Co-operative Learning and Development

This period continued to be a busy and productive time culminating with the successful conference Learning Together: Perspectives in Co-operative Education. Over 100 people attended the event held at the People’s History Museum on 9 December. 57 organisations and institutions were represented, from universities to youth organisations; co-operative societies to Non-Governmental Organisations (NGOs). The conference was host to people from 10 different countries, spanning an age range of 12 to 70. Workshops and presentations were engaging and informative prompting much debate and dialogue. The College continued to offer education programmes for the Co-operative Group albeit on a reduced scale. These included working with candidates for the Group Board Development Centre as well as Certificate and Diploma courses offered via face to face and distance learning. The current President of the Co-operative Council, Lesley Reznicek, wrote to the Co-operative News of 26 August reporting positively on the way College courses provided her with appropriate knowledge and skills as well as recognising the importance of the learning support offered by the College team. Behind the scenes, work continued to maintain the College quality systems and manage relations with external awarding bodies. The College continues as an Approved Centre for the awarding body Edexcel and is currently supporting candidates from Southern Co-operatives and Lincolnshire Co-operative working towards Funeral vocational qualifications. Learner satisfaction rates for all programmes continue to exceed the industry average with overall learner satisfaction increasing from 93% previous year to 95% in the current year. The College continues to communicate with the Associate team via email and also via the virtual staff room. Regular webinar sessions are also delivered to update colleagues and keep in touch. The PTTLS (Preparing to Teach in the Lifelong Learning Sector) programmes provides a valuable entrance level qualification. The College continued to move towards offering multi-channel delivery of its learning programmes and 2014 saw the launch of the first online, accredited course Award in Co-operative Values and Principles. The course is available to individual learners worldwide as well as to staff and members of established co-operatives.

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In addition, the 5th Principle Toolkits proved popular with sales to UK consumer societies, universities and international NGOs. Positive reports have been received from users, and the toolkit has recently been used successfully with farmers in East Timor. Each of the toolkits contains materials and guidance to support a range of co-operative learning activities, inducting newly elected members, educating members about co-operation and co-operatives, providing refresher training or continuing professional development, enhancing presentations to community groups and engaging with current and potential stakeholders in a co-operative. New partnerships have developed with organisations including the Plunkett Foundation and the Wales Co-operative Centre. The College has been the lead partner for a work package producing the new learning and assessment framework for the mobility units for the EU Coop Campus project. The College is pleased to acknowledge the support for the programme from colleagues from Chelmsford Star Co-operative who have attended the two piloting phases for the units and made valued contributions. The project ended in December 2014. The work with trade unions as with other member based, values driven organisations such as the Workers’ Educational Association (WEA) is still in the development phase but is starting to take shape. Following an agreement with Unity Trust Bank to fund a Co-ops / Trade Union seminar, an invite only, roundtable event: Working and Learning Together for Decent Work: the role of co-operatives, trade unions and mutuals in a changing state is being held in June 2015. Relations continue to develop with a number of UK trade unions. The College partners Unite and Manchester Metropolitan University on the AHRC Social Haunting bid and discussions are taking place with unite on their trade union work in schools. Partnership working has also been secured with trade unions and the WEA (North West) to explore innovative ways of working with Co-operative Councils around active co-operative citizenship. Work also continues with the education and related unions and the Schools Co-operative Society through the National Forum which meets bi-monthly. This is a useful knowledge exchange for all participants.

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Learning materials to be delivered to union officers and representatives around the region have been approved to NASUWT and the College is awaiting dates for 2015 delivery days. A further union funded initiative is a scoping exercise for the development of supply teachers co-operatives in the North of England. Finally the College is producing a joint paper with NASUWT which has been accepted for the ILO Antalya conference: Co-operatives and the World of Work in November 2015.

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Working with Co-operatives Globally

The College has continued to be recognised internationally as a centre of expertise, knowledge and resources with a growing portfolio of work. In 2013, the Supporting Co-operatives in Malawi project continued to train, support and mentor small scale farmers and the project reports were scored green (the highest category) by the Scottish government team. During the three year project, over 6,000 co-operative members received training from the project. In January 2015 the College was advised that its application for funding for a further 3 year project had been approved by the Scottish Government. The new project will encourage young people to engage in co-operative enterprises as a viable livelihood option; empower women to put themselves forward for leadership positions in their co-operative; promote more environmentally sustainable methods of agriculture; create awareness on the use of renewable energy technologies; and facilitate the capacity building of co-operative support organisations through strengthening the national apex and scoping the feasibility of a national co-operative college. The College continues to monitor the Mobu Ke Khuata Co-operative project in Masemouse, Lesotho, on behalf of Chelmsford Star Co-operative Society and alongside the NGO, Connecting Communities Worldwide. The College has also been an active member of the Coops Europe Development Policy project which is working to promote more understanding of co-operatives’ role in international development. The College has researched and written two sets of best practice case studies on African and Latin American co-operatives which have been published. The College worked with a number of Sri Lanka diaspora groups to run a co-operative training programme to support co-operatives in the north east of the country. The training was hosted in southern India but with support from the Co-operatives UK Tsunami relief fund, the College will be developing in country co-operative training and development programmes during 2015 and 2016 to help rebuild livelihoods and communities. A number of regular international visitors are now hosted, for which the College provides some paid services. This has included delegations from China, Finland and Brazil. In August, the College hosted a seven-day study visit by a group from KOSEA, the main social enterprise agency in South Korea. The visit was arranged and jointly funded by the British Council and Korean government. All the delegates were active in the agency as well as being leading members in their own co-operatives.

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The revised version of the guidelines for the ILO Recommendation 193 on the Promotion of Co-operatives, written by College associate Stirling Smith, was published and is available to download at http://www.ilo.org/empent/Publications/WCMS_311447/lang--en/index.htm The College is a partner in a new European project to research and promote a better understanding of the social and solidarity economy in Europe and the developing world which started in February 2015. The College will work with co-operative partners from the Andaman and Nicobar Islands to write and film a case study about their co-operative and its activities. The partnership with this co-operative originates from the Tsunami reconstruction programme the College managed on behalf of the Co-operatives UK tsunami relief fund.

Research

This period was a busy and productive time as the College continued to develop a range of academic partnerships and as several activities came to fruition. These included the successful completion of jointly supervised doctoral studentships for Angela Whitecross (Co-operative Commonwealth – New Jerusalem or Third Way? History of the Co-operative Party 1930-1952) and Rowshan Hannan (Co-operative Governance: Pathways to Poverty Reduction? The Case of Kenya) with the Universities of Central Lancashire and Leeds respectively. A new College Paper (no 18) reporting on the research into co-operative resilience in Malawi written by Alex Borda Rodriquez and Sara Vicari has been completed and is available to download as a PDF from the College website. Academic papers by College staff and doctoral researchers have been written and presented at a number of academic and co-operative conferences throughout the period. Several of these papers were published in the July 2014 co-operatives edition of Journal of International Development. A collection of essays from the educational strand of the 2012 Mainstreaming Co-operation conference on the theme of Co-operation, Learning and Co-operative Values: Contemporary Issues in Education was published by Routledge in autumn 2014 and was edited by Tom Woodin. A second volume of papers from the conference, Mainstreaming Co-operation, will be published by Manchester University Press and edited by Linda Shaw, Tony Webster and Rachael Vorberg-Rugh. A paper on the history of consumer co-operatives in Africa written by Linda Shaw was published by the Stockholm Labour Archives.

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The ICA Research conference was held in Croatia in June 2014. The College convened and chaired a panel session on co-operative education with papers from College associated researchers: Sally Hartley, Joanna Dennis and Deborah Rails. The panellists were very appreciative of the support from the College both financial (assistance from a College bursary fund) and academic (assistance with papers and conference briefing). The College continued to work closely with a number of universities including Manchester Metropolitan University on several research related activities. A new collaborative doctoral studentship has been awarded to MMU and the College which will use the National Co-operative Archive to research visual representations of the co-operative movement. Also at MMU, Gail Davidge successfully completed the first PhD on co-operative schools. The College is a partner in successful MMU led research bid to investigate the phenomenon of ‘social haunting’ in Barnsley and Rochdale. The College has also continued to work with Co-operatives UK on a jointly agreed research agenda which has included proving advice and support as well as working with the UK research councils.

Working with Schools and Young People

The College has continued to support the development of co-operative schools in England. By the end of the period a total of 834 schools were operating as co-operative schools compared to 704 in January 2013. Trusts remain the most popular of the models but the total now includes 41 co-operative converter academies. Most trusts now comprise geographically based clusters of schools. Whilst the pace of growth has slowed during this period with the General Election on the horizon and uncertainty about the future direction of education policy, the co-operative model for schools is now established as a viable option and many schools are still considering this as a possibility for the future. This was highlighted in a Westminster Hall adjournment debate in March 2015 when Labour and Co-operative MP Meg Munn raised the issue of Government policy on co-operative schools. The College also supported efforts by the Co-operative Party to help remove some of the obstacles to the development of co-operative schools through amendments tabled to the Deregulation Bill. It is regretted that the Government declined to support the amendments. The College continued to develop and offer a range of resources to support schools in embedding an ethos based on co-operative values across the school. These include:

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Handbooks for co-operative school Trustees, Company Secretaries and Your Co-operative Trust – Making it Work, a guide to the first year after completing the legal conversion process. A Membership Toolkit has been added to the handbook suite this period.

The Co-operative Identity Mark – the College’s self- and peer-assessed quality assurance programme for schools. There are 34 schools which have registered for the Mark.

The Young Co-operatives programme supporting co-operative based enterprise projects and School.coop, a website carrying news and resources for co-operative schools.

During this period the College has supported a group of young people in Rochdale to develop a junior members’ scheme for Rochdale Boroughwide Housing (RBH) – a large mutual established by the transfer of local authority housing stock. The group range in age from 8 to18 and have developed a unique membership offer for young people, organised events, produced newsletters, and established an ongoing dialogue with the CEO and Representative Body of RBH to ensure that the ideas and concerns of younger members are voiced.

Based on the experience of work with co-operative models, the potential for similar models in the Further and Higher Education sectors is now being actively explored.

Along with European partners, the College completed the first year of the three-year iMove project which is building an infrastructure to support mobility and work placements of vocational students across Europe. The project involves partner organisations from Spain (including the Mondragon Co-operative University), Italy, Germany, Holland, Sweden and Poland.

Learning from Our Heritage

The Co-operative College manages the Rochdale Pioneers Museum and National Co-operative Archive on behalf of the Co-operative Heritage Trust. The Museum continued to develop during the period, with a range of activities for adults, schools and families. The Museum welcomed 8,604 visitors and engaged in outreach with 870 people. The Archive received 208 research visits and answered 497 enquiries by email, telephone and post – dealing with the most individual researchers and enquiries since beginning to record the figures in 2005.

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The Museum featured in the Great British Railway Journeys programme broadcast on BBC2 in January 2014. Pals for Life a HLF funded project working with young people and adults creating films about the pals battalions of the first world war filmed scenes in the Museum. A Korean crew filmed at the Museum for a documentary on the co-operative movement. Archive materials also appeared in films produced by The Co-operative Group and Co-operative Bank and in two BBC programmes, one looking at Shop Girls and the other at shops in different decades. The 170th anniversary of the Rochdale Pioneers was celebrated with events at the Museum, a showing of the British Youth Film Academy feature film on the Pioneers at LegaCoop in Italy, introduced by the Trust’s Chair, Stephen Yeo and the publication of excerpts from the first minute book of the Pioneers on Twitter and the website. The Trustees would like to congratulate Dr Angela Whitecross on successfully completing her PhD thesis, jointly supervised by the Co-operative College and the University of Central Lancashire, Co-operative Commonwealth – New Jerusalem or Third Way? History of the Co-operative Party 1930-1952. A joint PhD studentship with Manchester Metropolitan University on Visual Representations of the Co-operative Movement 1844-2014 will be starting in 2015. The memories of co-operators were gathered through a pilot oral history project involving the universities of Northumbria, Central Lancashire and Huddersfield. The role of Community Outreach Officer working on the ROCHDALE project with funding from JP Getty Jnr Charitable Trust and The Esmée Fairbairn Foundation continued during the first half of the year. This enabled further engagement with community groups. The websites for the Archive and Museum are updated regularly and used with Twitter and Facebook to publicise events and activities and to highlight items in the collections. The Museum began to use Instagram, particularly with the submission of images for the Coopography exhibition. Conservation and packaging work continued during the year, funded through the ROCHDALE project. Work included the repackaging, conservation and rebinding of items from the Archive’s collections. A number of the banners in the Museum’s collections were conserved by the Banner Conservation Studio at the People’s History Museum. Photographs from the Hebden Bridge Fustian Manufacturing Society collection were digitised by Pennine Horizons and are now accessible online at http://www.pennineheritage.org.uk/Digital-Archive

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Archive staff have been involved in conferences and giving talks to community groups and to international delegations and individuals. Articles on co-operative heritage have been produced for The Co-operative Group pension scheme’s Evergreen

magazine. The final events for The Co-operative Group 150th anniversary celebrations included a one day conference at the People’s History Museum which involved a group of speakers who had carried out research in the Archive, including a member of the Archive team. A stand enabled participants to learn about the Archive and Museum. Workshops for schools on a range of subjects including Pioneer Experience, Pioneer Shopping and Fair Trade Pioneers proved popular for primary schools. Pioneer Citizens and Co-operative Alternative were added to the Pioneer Exploration workshop available for secondary pupils. The Museum Team ran reminiscence sessions both in the Museum and in care homes, encouraging participants to talk about their memories. The Museum’s temporary exhibition Co-operation on Wheels explored the link between cycling and co-operatives, from the CWS and other co-operatives including Orbea, part of the Mondragon co-operative network, manufacturing bicycles, through worker co-operatives to co-operatives involved in sponsorship of the Tour de France. Examples of co-operative made bicycles both historic and modern were displayed in the exhibition. Activities alongside the exhibition included a Countdown to the Tour de France. An interactive cycle sculpture was developed through workshops where young people from Sparth Community Centre and Rochdale Youth Service worked with sculptor Richard Dawson. In the Autumn, the Coopography exhibition was opened. The exhibition is on buildings used by co-operatives and illustrated with photographs submitted through social media and email. The ROCHDALE Project has enabled work with Pippa Pixley, an early years education specialist, on a project to develop three story books based on the character Harmony the Honey Bee. The books introduce the basic ideas and values of co-operation and are accompanied by an activity book for use by early years teachers. The Robert Owen resource pack for key stage 2 and 3 has been reprinted and distributed to co-operative schools, it has also been translated into Welsh.

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Mini Pioneers Baskets have been created with artist Sara Marsh. The baskets include a range of resources to encourage the youngest visitors to explore the Museum. The Heritage Team continued to work with colleagues in the Co-operative College on the range of electronic learning resources – arcHive – making the collections more accessible. Resources added during 2014 include:

Acting on Principle — the development of co-operative legislation.

The Workers Who Ran their Own Mill — the story of the Hebden Bridge Fustian Manufacturing Society.

Basket to Boardroom — women in co-operation. All are accessible on the Archive’s website at www.archive.coop/hive and further resources are under development. The Archive hosted placements from two students undertaking archival postgraduate qualifications and others planning to become archivists or interested in exploring activities with heritage materials. Volunteers at the Rochdale Pioneers Museum remained involved in a range of activities including welcoming visitors and work with collections and are regularly joined by placement students from postgraduate museum courses. The Museum also hosted a creative apprentice for six months as part of the Rochdale Council Creative Employment Programme. At the end of 2014, the work of the Museum volunteers was marked with an event to celebrate the 170th anniversary of the opening of the store at 31 Toad Lane. Volunteers were presented with certificates marking their contribution. During 2014, the volunteers have been involved in the transcription of the 1862 visitors’ book of the Rochdale Pioneers, work with collections and research for the forthcoming world war one exhibition.

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Financial Review and Results for the 16 month Period Ending 30 April 2015 The overall financial result for the 16 months to 30 April 2015 was a deficit of £186,321 with an operating deficit of £474,849 compared to a prior year deficit of £16,707. Whilst the overall result is not ideal there were a number of external factors which impacted on the College’s ability to breakeven. The impact of the governance and spending review undertaken by The Co-operative Group in 2013 resulted in a minimal number of training contracts in 2014 compared to previous years. Overall there was a reduction in income from the Co-operative Group from 2013 to 2014 of 55.6%, with the College unable to develop new business at a sufficient rate to bridge this gap. There was a decline in the rate of schools using College services for conversion to a co-operative school model. It is believed that this happened for a number of reasons: the high media profile around governance of the Co-operative Group and Co-operative Bank, the general election and sickness absence of a key member of the Schools team. As well as declining income the College had additional unexpected costs in relation to employer pension contributions, which were increased from 16% to 18% in July 2014 at very short notice by the PACE pension trustees. The retirement of two long serving members of the Leadership Team coupled with a 5 week handover period between the outgoing and incoming Chief Executive resulted in additional staffing costs of £22,236. Balance Sheet The value of long term investments has increased as a direct result of the revised investment policy detailed in the next section. Debtors and prepayments have decreased for several reasons. The first is a direct consequence of the reduction in the level of business as described above. The second is as a result of the improved debt chasing procedures implemented over the previous 16 months. Likewise creditors have also reduced from the prior year due to the decline in the level of business.

Investment Policy and Performance against Objectives The College Board and Trustee have agreed that funds be invested in order that the interest arising can be used in the furtherance of the object of the Charity. At the end of 2013 the Board and Trustee approved a revised investment policy, the aim of which was to improve return on investments as well as to grow the capital base. A large proportion of the College’s investment portfolio was gradually moved from long term fixed deposits with The Co-operative Group to Royal London Asset Management (formerly

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Co-operative Asset Management). These funds are held in a sustainable diversified fund. The College currently holds £3,780,836 of investments with Royal London Mutual and some co-operative societies. Further information can be found in the notes to the accounts (1f, 9 & 11). For the 16 months to 30 April 2015 the average rate of interest on long term fixed rate investments was 3.1%. The total return on investments was £144,044. In addition to this capital growth of £280,336 was achieved building on the £3,500,500 of original investment.

General Grant Making Policy The Co-operative College does not make grants but has a number of scholarship funds to assist learners to attend College learning programmes and events.

The Co-operative Pioneers Memorial Fund

The Co-operative Pioneers Memorial Fund was established in 2010 through the consolidation of a number of historic funds. The purpose of this fund is to advance education in particular but not exclusively by enabling learners facing financial difficulties to participate in programmes arranged by the College. In 2014 two bursaries were given to PhD students to attend the Co-operative Education Conference held in December 2014. Three bursaries of £450 each were given towards the cost of PhD students to attend the ICA Research conference in Pula in June 2014.

Reserves Policy The College Board and Trustee review the appropriate level of unrestricted funds annually to take account of the risks associated with each area of operations. Based on an assessment of risk from activities undertaken in 2014 and taking account of the forward strategic plan the Board and Trustee have agreed that unrestricted reserves should not fall below £500,000 or be above £750,000. At 30 April 2015 the College’s unrestricted reserves stood at £304,442 which equates to approximately 2.5 months of operational expenditure.

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Future Plans It is a privilege to introduce an entirely new phase in the almost century-old story of the Co-operative College. To set the College on a new course that will see it become an independent, educational organisation, it will show our commitment to create a membership format that is inclusive for all who have an interest in co-operative education. The Co-operative College has put in place the legalities to reposition the College into a new identity. At the same time, the new transitional Trustees of the College have got to know each other as well as starting work to map out some strategic directions. The new leadership team have quickly embarked on a collaboration with College staff to shape the working relationships and directions that the College will need in challenging times for the British co-operative movement. We are fortunate in launching the new College from a rich inheritance of social and intellectual capital, a strong balance sheet, and especially the productive achievements of the staff team and the previous Board. Last year, we promised the Co-operative Congress that we would forge a new College from an old institution. This year, we’re on our way. Nigel Todd Chair of Trustees, Co-operative College CIO

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The accounts and notes on pages 37 to 55 are hereby signed by: On behalf of the Trustee: On behalf of the Co-operative College Board of Governors: Nick Matthews Paul Sommerfeld Chair, Co-operatives UK Board of Directors Chair, Co-operative College Board of Governors Ed Mayo Simon Parkinson Secretary General, Co-operatives UK Chief Executive & Principal, Co-operative College Date:

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Accounting and Reporting Responsibilities

Statement of Trustee’s Responsibilities in respect of the Trustee’s Report and the Financial Statements Under the Trust Deed of the Charity and charity law the Trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and regulations. The financial statements are required by law to give a true and fair view of the state of affairs of the Charity and of the excess of expenditure over income for that period. In preparing these financial statements, generally accepted accounting practice entails that the Trustee:

Selects suitable accounting policies and then applies them consistently.

Makes judgements and estimates that are reasonable and prudent.

States whether applicable UK Accounting Standards and Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements.

States whether the financial statements comply with the Trust Deed, subject to any material departures disclosed and explained in the financial statements.

Prepares the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. As explained in note 1 to the accounts, the Trustees does not believe that it is appropriate to prepare these financial statements on a going concern basis.

The Trustee is required to act in accordance with the Trust Deed of the Charity, within the framework of trust law. It is responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the Charity at that time, and to enable the Trustee to ensure that, where any statements of accounts are prepared by it under section 132(1), the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. It has general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Charity and to prevent and detect fraud and other irregularities. The Trustee is responsible for the maintenance and integrity of the financial and other information included on the Charity’s website. Legislation in the UK covering the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Information System The Trust has two qualified accountants, one being the Vice Principal - Finance & Resources who, along with two other team members, provide an accounting and information service for the College. All transactions are recorded through the computerised financial ledger system. Monthly actual results are produced from this system for reporting to the Trust’s management and the Board against budget, highlighting any significant adverse or favourable variances. This also allows any remedial action to be taken as and when required. The accounting system is complemented by the Trust’s learner database that is used to record all student enrolments and details of the Trust’s courses. The Trust also uses Salesforce, an online Customer Relationship Management (CRM) database to manage its schools support work. Control Procedures and Monitoring In addition to the controls previously mentioned, there are clearly defined policies for capital expenditure. These include appropriate authorisation levels with larger projects requiring Board approval. The Audit Committee performs a key role in the review of the effectiveness of internal financial and other controls. The Committee met on four occasions and has been able to refer to work undertaken by internal audit. By the end of the period the Trust was compliant with the Co-operatives UK Corporate Governance Code of Best Practice 2005 D3.1 in as far as it is applicable to the Trust. Auditors KPMG LLP successfully tendered for and were appointed auditors by the Trustee in December 2011, reviewed on an annual basis. Going Concern The Co-operative College has recently undertaken a review of its legal structure and governance arrangements. As a result of this review with effect from 1 May 2015 all assets and liabilities of the Co-operative College (registered charity number 1060008) were transferred to a new charitable incorporated organisation, the Co-operative College (registered charity number 1159105). Whilst in all other aspects the Co-operative College operations continue as before, this change in legal structure effectively means that the College ceased operation as charity number 1060008 and as such this annual report and accounts were prepared on a non going concern basis.

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Independent Auditor’s Report to the Trustee of the Co-operative College Trust We have audited the financial statements of the Co-operative College Trust for the 16 months ended 30 April 2015 set out on pages 37 to 55. The financial reporting framework that has been applied in their preparation is applicable in law and UK Accounting Standards (UK General Accepted Accounting Practice). This report is made solely to the Charity's trustee as a body, in accordance with section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's trustee those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its trustee as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustee and auditor As explained more fully in the Statement of Trustee’s Responsibilities set out on page 33 the Trustee is responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit, and express an opinion on, the financial statements in accordance applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the FRC’s website at: http://www.frc.org.uk/auditscopeukprivate Opinion on financial statements In our opinion the financial statements:

• give a true and fair view of the state of the Charity's affairs as at 30 April 2015 and of its incoming resources and application of resources for the period then ended;

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• have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and • have been properly prepared in accordance with the requirements of the Charities Act 2011.

Emphasis of matter – non-going concern basis of preparation In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1 to the financial statements which explains that the financial statements have not been prepared on a going concern basis for the reason set out in that note. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements; or

• the Charity has not kept sufficient accounting records; or • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.

Michael Frankish For and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter’s Square Manchester M2 3AE

Co-operative College Statement of Financial Activities for the 16 months ended 30 April 2015

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Notes Unrestricted

Funds Restricted

Funds Endowment

Funds Total Funds 30 April 2015

Prior Year Funds 2013

£ £ £ £ £

Incoming Resources

Incoming resources from generated funds

Voluntary Income 229,332 17,931 - 247,263 245,079

Investment Income 120,539 23,505 - 144,044 112,397

Incoming resources from charitable activities

Co-operative Learning & Development 294,721 - - 294,721 522,564

Heritage 314,931 - - 314,931 287,654

International 252,527 - - 252,527 212,233

Schools 192,033 - - 192,033 403,291

Research 35,624 - - 35,624 106,686

Central Support and Administration 70,318 - - 70,318 51,648

Governance - - - - 2,739

Total incoming resources 1,510,025 41,436 - 1,551,461 1,944,291

Resources expended

Charitable activities

Co-operative Learning & Development 3 479,053 95 - 479,148 494,425

Heritage 3 302,887 - - 302,887 272,572

International 3 262,370 4,017 - 266,387 188,658

Schools 3 205,801 - - 205,801 333,734

Research 3 63,239 5,000 - 68,239 146,575

Central Support and Administration 3 604,482 7,576 - 612,057 477,916

Governance Costs 3 67,043 - 67,043 41,623

Total resources expended 1,984,874 16,688 - 2,001,562 1,955,503

Net (outgoing)/incoming resources before exceptional items (474,849) 24,748 - (450,101) (11,212)

Investment gain 280,336 - - 280,336

VAT review - - - - 11,724

PACE pension additional cost (13,875) - - (13,875)

Restructuring Costs 4 (2,681) - - (2,681) (6,146)

Net incoming/(outgoing) resources for the year (211,069) 24,748 - (186,321) (5,634)

Total funds brought forward 515,511 681,158 3,212,379 4,409,048 4,414,682

Total funds carried forward 304,442 705,906 3,212,379 4,222,727 4,409,048

Co-operative College Balance Sheet as at 30 April 2015

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Notes 30 April 2015 31 December 2013

£ £

Fixed Assets

Tangible assets 8 - 48,807

Investments 9 - 3,500,723

Total Fixed assets - 3,549,530

Current assets

Tangible assets 8 38,484 -

Debtors & prepayments 10 422,618 856,804

Investments 11 3,889,445 209,338

Stock 12,048 8,500

Cash at bank and in hand 48,454 88,399

Total current assets 4,411,049 1,163,041

Liabilities

Creditors : Amounts falling due within one year: 12 188,322 303,523

Net current assets 4,222,727 859,518

Total assets less current liabilities 4,222,727 4,409,048

Net assets 4,222,727 4,409,048

The funds of the charity

Endowment funds 14 3,212,379 3,212,379

Restricted income funds 14 705,906 681,158

Unrestricted income funds 15 304,442 515,511

Total Charity funds 4,222,727 4,409,048

Co-operative College Cashflow Statement for 16 months ended 30 April 2015

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Notes 16 months

to April 2015 2013

£ £

Net cash inflow/(outflow) from operating activities 16 4,397 (321,708)

Return on investments & servicing of finance 16 144,044 112,397

(Purchase)/sale of fixed asset investments 16 (289,115) 56,461

Decrease in cash (140,674) (152,850)

Reconciliation of net cash flow to movement on net funds:

Net funds at 1 January 17 297,737 450,587

Decrease in cash 17 (140,674) (152,850)

Non cash movement 17 3,780,836 -

Net funds at 30 April 2015 3,937,899 297,737

Notes to the accounts

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1. Statement of Accounting Policies

a. Basis of accounting The accounts have been prepared on an historical cost accounting basis for the 16 month period ended 30 April 2015, together with the comparative figures for the year to 31 December 2013. The accounts are prepared in accordance with applicable accounting standards and the Statement of Recommended Practice Accounting and Reporting by Charities (SORP) issued in March 2005, and the Charities Act. The presentation of the accounts complies with the Charities Act requirements under the charities SORP. The Co-operative College has recently undertaken a review of its legal structure and governance arrangements. As a result of this review with effect from 1 May 2015 all assets and liabilities of the Co-operative College (registered charity number 1060008) were transferred to a new charitable incorporated organisation, the Co-operative College (registered charity number 1159105). Whilst in all other aspects the Co-operative College operations continue as before, this change in legal structure effectively means that the College ceased operation as charity number 1060008 and as such this annual report and accounts were prepared on a non-going concern basis. b. Incoming resources All income is recorded exclusive of VAT and is accounted for in the SOFA when the College is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants are recognised when received or in accordance with the conditions set by the funding provider. Project income is recognised on actual work completed to the end of April 2015. c. Resources expended Expenditure is recognised on an accruals basis and is spent in line with the appropriate income, or in the case of core costs (staffing, rent etc) in line with invoices and contracts of employment. Charitable activities expenditure enables the College to meet its charitable objective. Governance costs are associated with the governance agreements of the Charity and relate to the general running of the Charity. These costs include external and internal audit, legal advice for the Board of Governors and costs associated with meeting constitutional and statutory requirements such as the cost of Board of Governors meetings and preparation of the statutory accounts. Support costs are

Notes to the accounts

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those costs that enable charitable activities to be undertaken. These costs include finance, human resources, IT systems, communication and legal costs. Any irrecoverable VAT is shown as part of the cost in Central Support & Administration. d. Fund accounting

i. Unrestricted funds – these are funds that can be used in accordance with the Co-operative College’s charitable objectives at the discretion of the Board of Governors and Trustee.

ii. Restricted funds – these are funds received for undertaking an activity specified by the donor. iii. Endowment funds – these are funds where the assets must be held permanently by the Charity, principally in the

form of investments.

Further explanation of the nature and purpose of each fund is included in note 14.

e. Tangible Assets Tangible assets are stated at cost less the accumulated depreciation. Depreciation is calculated in equal monthly amounts based on cost. The following minimum rates are applied:

Plant, Fixtures & Fittings 10%-33% per annum

Motor Vehicles 33% per annum

Information Technology Equipment 25% per annum

f. Investments Investment income is recognised on an accruals basis. The majority of investments are held in a Sustainable Diversified Fund which is managed by Royal London Asset Management. The remainder is held on a long term basis with two UK co-operative societies; these being, Midcounties Co-operative Society Ltd and Chelmsford Star Co-operative Society Ltd. Short term investments are also held with The Co-operative Group on periods ranging from 1 week to 3 months.

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g. Pension From 1 January 2009 the Co-operative College has participated in The Co-operative Group PACE pension scheme via Co-operatives UK as the sponsoring employer. This is a defined benefit scheme based on Career Average Revalued Earnings. Employer contributions paid by the College in the 16 month period are detailed in note 6. During the period the College received notification from the PACE pension trustees advising that the College was required to pay an additional sum of £13,875 with regard to the deficit contribution plan. This is expected to continue for the next 6 years for the new CIO and has been shown as an exceptional item in the accounts for this period. In light of the changing legal status of the College, the College was advised that employees would no longer be eligible to be part of the PACE pension scheme post the transfer to the new legal entity. The College therefore sought an alternative pension provider with assistance from Co-operative Wealth. h. Operating Leases Rentals payable under operating leases are charged to the Income & Expenditure account for the period to which they relate.

2. Grants

Included in income are contributions received in relation to the following projects:

16 months to 30 April 2015

2014

£ £

From the Scottish Government International Development Fund:

Supporting Co-operatives in Malawi 198,802 62,511

Co-operative Pathways Project 52,586 -

251,388 62,511

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3. Charitable Expenditure

Analysis of total resources expended Staff Cost Support Costs

Other Direct Costs

Restricted Funds

16 months to 30 April

2015 Total 2013

£ £ £ £ £ £

Co-operative Learning and Development 309,046 102,607 67,400 95 479,148 494,425

Heritage 233,490 69,229 168 - 302,887 272,572

International 72,773 17,041 172,556 4,017 266,387 188,658

Schools 87,736 16,892 101,173 - 205,801 333,734

Research 38,144 21,795 3,300 5,000 68,239 146,575

Central Support and Administration 467,845 134,523 2,113 7,576 612,057 477,916

Governance 28,625 38,068 350 - 67,043 41,623

1,237,659 400,155 347,060 16,688 2,001,562 1,955,503

Analysis of support costs Administration Audit Fees

Infrastructure Travel and

subsistence

16 months to 30 April

2015

Total 2013

£ £ £ £ £ £

Co-operative Learning and Development 41,138 - 28,226 33,243 102,607 84,760

Heritage 26,940 - 37,643 4,646 69,229 49,273

International 3,091 - 847 13,103 17,041 20,611

Schools 4,260 - 4,210 8,422 16,892 44,548

Research 3,100 - 12,198 6,498 21,796 28,459

Central Support and Administration 34,044 - 87,505 12,974 134,523 112,862

Governance 1,316 19,031 6,469 11,251 38,067 18,979

113,889 19,031 177,098 90,137 400,155 359,492

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4. Restructuring Costs

During the period one post was identified as being redundant, this figure represents the cost associated with this redundancy.

5. Governance Costs

Members of the Board of Governors received no remuneration in the performance of their duties (2013 - £nil). The Chair of the Co-operative College Board of Governors received an honorarium of £6,000 from Co-operatives UK for services to co-operative education (2013 - £6,000). No expenses were reimbursed to the Trustee during the period. All expenses for trustee meetings are borne by Co-operatives UK. The College Trust purchased indemnity insurance for 16 months to 30 April 2015 at a cost to the Charity of £3,063 (2013 - £2,544).

6. Employee Costs

The average number employed by the Trust was:

16 months to 30 April 2015 2013

Full time 13 19

Part time 14 13

27 32

Full Time Equivalents 21 27

The costs incurred in respect of the employees (including the Leadership Team) were:

16 months to 30

April 2015 2013

£ £

Salaries & wages 987,298 922,494

Social security 81,149 80,423

Pension 133,381 101,107

Other 35,830 32,481

1,237,658 1,136,505

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An equitable pay scheme was introduced in 2012. This combines a flat rate payment and a lower percentage award and ensured that lower paid staff benefit most. The College aimed to achieve a ratio of the lowest:highest salary of 1:5 by the end of 2014. The current ratio is 1:5.46 excluding Co-operative Heritage Trust staff (1:5.52 in 2013). We will achieve the desired ratio of 1:5 during 2015. The College also employs a number of apprentices and, in line with co-operative values, has taken the decision that it will pay above the apprentice rate of £2.73 per hour. The current average apprentice rate at the College is £6.59 per hour. The College also ensures that all its employees (with the exception of apprentices) are paid a living wage. The current living wage in the UK is £7.85 per hour (outside London). The minimum amount per hour paid by the College to its employees is £9.86 per hour.

7. Leadership Team Remuneration

The total remuneration for the College Leadership Team was as follows:

16 months to 30 April 2015 2013

£ £

Salaries 411,882 370,080

Taxable benefits 4,904 6,757

416,786 376,837

Pension contributions 65,142 49,935

481,928 426,772

The remuneration of the Chief Executive & Principal, who is the highest paid employee and included in the above figures is as follows:

16 months to 30 April 2015 2013

£ £

Salary 126,927 102,529

Taxable benefits 4,904 6,757

131,831 109,286

Pension contributions 19,706 16,405

151,537 125,691

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The number of members of the Leadership Team (including the Chief Executive & Principal) whose remuneration, excluding pension contributions falls into the following bandings:

16 months to 30 April 2015 2013

£131,000 - £140,000 1 -

£100,001 - £110,000 - 1

£70,001 - £80,000 1 -

£60,001 - £70,000 3 -

£50,001 - £60,000 - 3

£40,001 - £50,000 - 2

5 6

For 16 months to 30 April 2015

Name Salary

Taxable Benefit

Pension Contributions

Total

£ £ £ £

Gillian Lonergan 63,042 - 10,877 73,919

Simon Parkinson* 12,917 - - 12,917

Cilla Ross* 4,583 - - 4,583

Linda Shaw 66,569 - 10,700 77,269

Julie Thorpe 63,042 - 10,878 73,920

Emma Willder 74,802 - 12,981 87,783

Mervyn Wilson 126,927 4,904 19,706 151,537

411,882 4,904 65,142 481,928

* Simon Parkinson started in post 1 March 2015. Cilla Ross started in post 1 April 2015, therefore only the salary information relating to these periods is shown.

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8. Tangible Assets

Plant, fixtures & fittings

IT and Office Equipment

Total

Cost £ £ £

1 January 2014 69,438 101,543 170,981

Additions 5,483 3,519 9,002

30 April 2015 74,921 105,062 179,983

Depreciation

1 January 2014 49,036 73,138 122,174

Charge for year 9,494 9,831 19,325

30 April 2015 58,530 82,969 141,499

Net Book value 1 January 2014 20,402 28,405 48,807

Net Book value 30 April 2015 16,391 22,093 38,484

At the period end the tangible fixed assets have been transferred to tangible current assets as the accounts are not being prepared on a going concern basis, for the reasons stated in Note 1.

9. Fixed Asset Investments

£

1 January 2014 3,500,723

Interest 141,761

Investment gain 280,336

Transfer to current asset investments / bank (3,922,820)

30 April 2015 -

The investments represent funds placed with the Royal London Asset Management and co-operative societies. All investments are held at market value.

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10. Debtors

30 April 2015 2013

£ £

Trade debtors 155,371 365,335

Other debtors 1,849 751

VAT 2,761 -

Taxation and social security 363 -

Accrued income 206,744 447,338

Prepayments 55,530 43,380

422,618 856,804

11. Current Asset Investments

30 April 2015 2013

£ £

Royal London Asset Management 3,780,836 -

The Co-operative Group (short term deposits) 100,259 200,988

Co-operatives Europe House 8,350 8,350

3,889,445 209,338

All investments are held at market value.

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12. Creditors

30 April 2015 2013

£ £

Trade creditors 34,697 53,417

Accruals 40,417 90,122

Deferred income 113,208 82,946

VAT - 54,408

Taxation & social security - 22,630

188,322 303,523

13. Deferred Income

Deferred income is comprised of project funding received in advance of activities to be performed.

£

Balance at 1 January 2014 82,946

Amount released from previous years (31,558)

Amount deferred in current year 61,820

Balance at 30 April 2015 113,208

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14. Charitable Funds

Balance 1 January 2014

Incoming Resources

Resources Expended

Exceptional Items

Balance 30 April 2015

Endowments: £ £ £ £ £

Endowment Fund1 24,537 - - - 24,537

Lady Hayward Bequest2 1,000 - - - 1,000

Co-operative College Fund3 3,186,842 - - - 3,186,842

3,212,379 - - - 3,212,379

Restricted Funds:

Bert Youngjohns Memorial Fund4 2,668 - (2,668) - -

Co-operative College IT Fund 346 9 (355) - -

Educational Development Fund5 58,890 15,034 (12,220) - 61,704

Les Stannard Co-operative Citizenship Fund6 30,768 1,063 - - 31,831

Co-operative Pioneers Memorial Fund7 588,378 20,291 (1,445) - 607,224

Joyce & Vic Butler 108 4 - - 112

Sally Mitchell - 5,035 - - 5,035

681,158 41,436 (16,688) - 705,906

Unrestricted Funds:

Revenue reserves 515,511 1,510,025 (1,984,874) 263,780 304,442

515,511 1,510,025 (1,984,874) 263,780 304,442

Total charitable funds 4,409,048 1,551,461 (2,001,562) 263,780 4,222,727

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The Co-operative College has a number of Endowment and Restricted Funds. A brief description of each fund, including the dates of establishment is shown below: 1. Endowment Fund Despite extensive research in the National Co-operative Archive no evidence has

been found to determine when this fund was established and what its original purpose was. Charity Commission advice has been sought on this matter.

2. Lady Hayward Bequest Established in 1950, the only evidence that can be found as to the purpose of these funds is contained in the minutes of the meeting of the Co-operative Union (now Co-operatives UK) General Purposes Committee which took place on 19 May 1950. This records the fact that “a cheque for £1,000 was received in payment of a legacy bequeathed to the Co-operative College fund by Lady Mary Ann Hayward deceased, in memory of her late husband Sir Fred Hayward”. Charity Commission advice has been sought on this matter.

3. Co-operative College Fund Resulting from the sale of property originally purchased with funds gifted by the co-operative movement. The Board and Trustee have agreed that these funds be invested in order that the interest arising can be used to support the College in the furtherance of co-operative education. Following legal advice taken by the Trustee in 2013 this was reclassified as an endowment fund.

4. Bert Youngjohns Memorial Fund This fund was established in 1981 in memory of an Advisor on Co-operatives in the Overseas Development Administration. The fund was to provide a scholarship in Co-operative Development Studies tenable at the UK Co-operative College.

5. Educational Development Fund Established in 2002 following the relocation of the College to Manchester and the winding up of the NCEA, the Education Development Fund’s objectives are:

To support innovative and pioneering work in co-operative education, that has a national application.

To produce outputs of relevance to a wide range of subscribing organisations.

To support ongoing co-operative education projects of a national nature.

To support the training needs of auxiliary co-operative organisations.

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6. Les Stannard Co-operative Citizenship Fund

Given by the South East Region of The Co-operative Group the purpose of the fund is to support young people (aged 25 and under) who wish to participate in educational opportunities provided by the College. This may include activities initiated by the Society which are delivered by the College. Such educational opportunities should be within a wider citizenship theme.

7. Co-operative Pioneers Memorial Fund

Established in early 2010 when a number of small funds were brought together the fund aims to enable learners facing financial difficulties to participate in programmes arranged by the Co-operative College.

Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with any restrictions imposed. Analysis of net assets between funds Unrestricted

Funds Restricted

Funds Endowment

Funds Total

£ £ £ £

Current Assets 492,764 705,906 3,212,379 4,411,049

Current Liabilities (188,322) - - (188,322)

304,442 705,906 3,212,379 4,222,727

15. Unrestricted Funds

16 months to 30 April 2015 2013

£ £

Balance brought forward 515,511 526,640

Deficit for year excluding actuarial gains/(losses) (211,069) (11,129)

Balance at balance sheet date 304,442 515,511

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16. Reconciliation of Net Outgoing Resources to Net Cash Outflow from Operating Activities

16 months to 30 April 2015 2013

£ £

Net outgoing resources (186,321) (5,634)

Depreciation charge 19,325 15,024

Profit on sale of fixed assets - (1,300)

Decrease in debtors 434,186 257,510

Decrease in creditors (115,201) (471,894)

Increase in stock (3,548) (3,017)

Interest allocated on funds (144,044) (112,397)

Net cash inflow/(outflow) from operating activities 4,397 (321,708)

Return on Investments and Service of Financing

Interest received 144,044 112,397

Capital and Investments

Payments to acquire tangible fixed assets (9,002) (48,499)

Proceeds from sale of fixed assets - 1,300

(Purchase)/Sale of investments (280,113) 103,660

Sale (Purchase) of investments (289,115) 56,461

Net Cash Outflow from Operating Activities (140,674) (152,850)

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17. Analysis of Net Funds

At 1 January 2014 Cash flows

Other non cash changes

At 30 April 2015

£ £ £ £

Cash at bank and in hand 88,399 (39,945) - 48,454

Current asset investments 209,338 (100,729) 3,780,836 3,889,445

297,737 (140,674) 3,780,836 3,937,899

18. Contingent Liabilities & Capital Commitments

The Trust has no contingent liabilities or capital commitments as at the balance sheet date (2013 - £nil).

19. Pension Scheme

From 1 January 2009 the Co-operative College has participated in The Co-operative Group PACE pension scheme via Co-operatives UK as the sponsoring employer. This is a defined benefit scheme based on Career Average Revalued Earning. New employees had the option to join the scheme upon completion of three months service with the Co-operative College. It has not been possible to ascertain the College’s FRS17 disclosures separately as part of the overall PACE scheme. Contributions of 16% (18.5% from 1 July 2014) of gross pensionable salary are recognised by the College through the income and expenditure account on a monthly basis. Actual contribution to the PACE scheme for the 16 months to April 2015 amounted to £133,381 (2013 - £101,107). There were no outstanding or prepaid contributions at either the beginning or the end of the financial period. During the period the College received notification from the PACE pension trustees advising that the College was required to pay an additional sum of £13,875 with regard to the deficit contribution plan. This is expected to continue for the next 6 years for the new CIO and has been shown as an exceptional item in the accounts this period end.

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In light of the changing legal status of the College, the College was advised that employees would no longer be eligible to be part of the PACE pension scheme post the transfer to the new legal entity. The College therefore sought an alternative pension provider with assistance from Co-operative Wealth.

20. Related Party Transactions

The following are related party transactions, as defined by Financial Reporting Standard 8, together with details of notable transactions:

a. Members of the Board of Governors Individual members of the Board incurred expenses on Trust business amounting to £10,278 (2013 - £5,813).

b. Co-operatives UK Limited Amounts of £109,554 (2013 - £77,898) were payable to and £44,095 (2013 - £54,371) receivable from Co-operatives UK for services supplied on normal commercial terms. The balances owed by and to the Trust at the period end were £5,805 and £4,000 respectively (2013 - £1,178 and £9,772).

c. The Co-operative Heritage Trust The Co-operative College is one of the founding members of the Co-operative Heritage Trust. The College operates, under a management agreement, the National Co-operative Archive and Rochdale Pioneers Museum. Amounts of £463,332 (2013 - £289,464) and £446 (2013 - £nil) were receivable from and payable to the Co-operative Heritage Trust for the 16 month period. The balance owed to the College at the period end was £131,011 (2013 - £69,898).

21. Post Balance Sheet Events

The Co-operative College has recently undertaken a review of its legal structure and governance arrangements. As a result of this review with effect from 1 May 2015 all assets and liabilities of the Co-operative College (registered charity number 1060008) were transferred to a new charitable incorporated organisation, the Co-operative College (registered charity number 1159105). Further details are included in the trustees report on page 13.