Annual Report 2004

the co operative college

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Legal and Administrative Details

Principal Advisors

BankersCo-operative Bank PlcBalloon StreetManchesterM60 4EP

SolicitorsCroftonsTelevision HouseMount StreetManchesterM2 5FA

AuditorKPMG LLPChartered AccountantsRegistered AuditorSt James’ SquareManchesterM2 6DS

Registered OfficesCo-operative CollegeHolyoake HouseHanover StreetManchesterM60 0AS

Registered charity number: 1060008

Corporate TrusteeCo-operativesUK

Holyoake HouseHanover StreetManchesterM60 0AS

Details of the Board, Committee members and staff are on pages 30 and 31.

The principal activity of the Charity is the provision ofeducation in a manner consistent with the values andprinciples of the co-operative movement.

This is reflected in the College Vision, Mission and StrategicObjectives, and the activities described in this report.

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Vision

• To be the world leader in co-operative learning.

Mission

• To provide challenging and diverse learning opportunitiesthat enable learners and their organisations to putCo-operative Values and Principles into everyday practice.

Strategic Objectives

• To promote and encourage the understanding ofco-operative values and principles and co-operativelearning within and beyond the co operative mutualand social enterprise sector.

• To meet the learning needs of diverse co-operative,mutual and social enterprises regionally, nationallyand internationally.

• To continuously improve learning and quality standardsacross the whole of the College curriculum.

• To develop e-learning and information and learningtechnology (ILT) provision.

• To transform the Rochdale Pioneers Museum and theNational Co-operative Archive into accessible lifelonglearning resources.

Contents

Legal and Administrative Details . . . . . . . . . . . . . . . . . . . 2

Vision, Mission, Strategic Objectives . . . . . . . . . . . . . . . . 3

Review of 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 5

Learning Programmes . . . . . . . . . . . . . . . . . . . . . . . . 6 - 7

Working with Schools and Young People . . . . . . . . . . . . 8

Working with the Wider Co-operative Movement . . . . . 9

Working with the WorldwideCo-operative Movement . . . . . . . . . . . . . . . . . . . . . . . . 10

Rochdale Pioneers Museum and NationalCo-operative Archive . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Statutory Governance Statements and Accounts -Statement of Responsibility of Co-operativesUK

as Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 - 14

Respective Responsibilities of the Trusteeand Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Financial Activities . . . . . . . . . . . . . . . . . . . . . . . . . 16 - 29

Who’s Who and Contacts . . . . . . . . . . . . . . . . . . . 30 - 31

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Review of 2004

We have pleasure in submitting our report for the yearending 31 December 2004. It was a highly successful yearfor the Co-operative College, building on the advancesmade in recent years.

The number of learners and the range of co-operativemutual and social enterprise businesses working with theCollege continued to grow and it was successful insecuring and delivering projects to develop new areas ofwork.

Achievements in the year have included:

• The successful piloting with members of theCo-operative Group of online learning modules from theDirector and Member Framework.

• The first learners achieving awards under the newDirector and Member Framework.

• The continued growth in management training, involvingmanagers from the wider co-operative sector.

• The growth and development of the College’sinternational work and projects.

• The development of the College’s work with schools andyoung people, including support for specialist schoolssponsored by the Co-operative Group.

As well as taking the College into new areas of work,projects have resulted in high-quality publications and

training manuals distributed in the UK and internationally,further enhancing the College’s reputation as a provider ofhigh-quality learning.

The College has progressed its work with the Archive andRochdale Pioneers Museum, strengthening staffing andarranging a programme of activities to celebrate the 160thAnniversary of the opening of the Toad Lane store by thePioneers.

Continuous improvement in the quality of all its learningprogrammes is a key objective for the College. This isdemonstrated through its commitment to staffdevelopment. In 2004 the College achieved IiP recognition,and ISO 9001: 2000 certification for its qualitymanagement systems.

The College ended 2004 in a strong financial position, withcash and investment balances standing at £5,046,376. Thisreflects a strong operational performance, resulting in a netsurplus of £49,287.

The underlying performance, taking into considerationnon-recurring income and expenditure, including therelease of LSC funds relating to the previous year and nonrecurring refurbishment and IT costs in 2003, andreorganisation and redundancy costs in the current year,leads to an increase in the underlying surplus of £99,000.This has been achieved in the first year that the Collegehas operated without current funding from the LearningSkills Council.

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2004 also saw the completion of work to revise the TrustDeed Instrument and Articles of Government, with thenew scheme being approved by the Charity Commissionand DfES.

David Gibson was appointed Chair of the Board fromOctober following the retirement of Professor Stephen Yeo,with additional Board changes as the new Instrument andArticles of Government were implemented.

The College ended 2004 with a robust order book, andwith proposals in place to strengthen its staff team toenable it to maintain growth in the coming years. It was ayear of major success for the College, and we could nothave achieved it without the work of all members of staffand the College Associates. Our sincere thanks go to allwho made the progress we report possible.

Future Activities

The College Strategic Plan for 2005-2007, approved by theBoard and Trustee, aims to build on the progress andgrowth reported, in particular:

• Expanding the College’s offer to the co-operative andmutual sector.

• Expanding the College’s international work, building itsknowledge base through collaborative projects, andextending its market through in-country programmes.

• Continued development of information and learningtechnology resources and e-learning modes of delivery.

• Strategic development of the Rochdale Pioneers Museumand the National Co-operative Archive.

• Continued development of the College website as a keymarketing and information tool, and as a mode oflearning delivery.

• Continued improvements in the quality and flexibility ofthe College provision.

• Continued growth through funded projects to developnew programme areas.

• Continued investment in the people and systemsinvolved in College operations and the delivery of itsprogrammes.

• Ensuring that its training programmes for members anddirectors address emerging issues arising from changesto the corporate governance code of best practice.

David GibsonChair Co-operative College Board of Governors

Mervyn WilsonChief Executive and Principal

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Learning Programmes

In 2004 the College worked with the followingco-operative organisations:

• Anglia• Chelmsford Star• Colchester and East Essex• The Co-operative Group• Co-operative Party• Co-operativesUK

• Harwich Connexions• Ipswich and Norwich• Leeds• Lincolnshire• Midlands• NACO• Oldham Community Leisure• Oxford, Swindon & Gloucester• Penrith• Plymouth & South West• Robert Owen Society• Salford Community Leisure• Scotmid • Sheffield• Southern• United Co-operatives• West Midlands

During 2004 the College worked with learners in thefollowing areas:

Qualification Programmes

• Member and Director Training- 260 learner registrations at level 2- 64 learner registrations at level 3

• Management Development- 53 learner registrations at level 2 –

Introductory/Supervisory Certificate- 61 learner registrations at level 3 – Certificate- 37 learner registrations at level 4 – Diploma- 12 learner registrations at level 5 – Executive Diploma

• Funeral Vocational Qualifications- 118 learner registrations at levels 2, 3 and 4

• IT Programmes (ECDL)- 19 learner registrations

In-house, tailored Programmes

• Member and Director Training- 1,452 learners on 129 training events

• Management Development- 1,015 learners on 154 training events

• Specialist Funeral - 154 learners on 23 training events

• Staff Programmes - 86 learners on 14 training events

• IT Programmes- 588 learners on 84 training events

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During the past 12 months the College delivered anextensive programme of open and in-houseworkshops and Board Skills Audits to national, regionaland local co-operatives for members, managers, staffand directors.

In Member and Director Learning the Certificate inCo-operation and the Co-operative Directors’ Diplomaprovided the basis of learning for members, activists andthose elected to serve their co-operatives. In-house, locallydelivered, tailored programmes continued to expandreflecting the wish of societies to have cost effective andrelevant programmes that meet the needs of theirmembers and boards. To support co-operatives unable tohold local programmes the College offered a limited openprogramme. The College also offered a Board Skills Auditto societies wishing to look at the skills mix in their boardsand pro-actively plan their training.

Management and staff development learningcontinued to develop through open programmes andin-house, locally delivered, accredited and tailoredprogrammes.

The College has delivered staff and management openprogrammes: Professional Manager (level 5), Diploma(level 4), Certificate (Level 3) and Team Leader (Level 2) tomeet the needs of managers and team leaders in themovement. The range of accredited and tailoredprogrammes and short courses for societies across thecountry grew in 2004. Programmes included: Values andPrinciples, Management Skills, People Management,Employment Law, Selling Skills and Funeral Team LeaderDevelopment. The College also extended its work withco-operatives from the wider co-operative movement.

The College continued to be the only major provider offuneral vocational qualifications – assessor training andEdexcel programmes for Funeral Directors, Arrangers,Administrators and Operatives as well as specialist trainingfor funeral professionals.

The College also provided Internal Verifier training forfuneral managers.

In 2004 the College in partnership with the Co-operativeGroup made a significant investment in e-learning anddistance learning and launched the first three onlinemodules for Area Committee and Regional Boardmembers. These modules were also made available inpaper-based and CD-Rom versions.

For members and employees the College completed ADifferent Kind of Business providing four interactivemodules capable of delivery in online and offline formats.

Pilots commenced on the development of CD-Rom andpaper-based distance learning materials for members anddirectors. By the end of 2004 the Foundation Certificate andCertificate in Co-operation were available in these formats.

Information technology applications programmeswere extended in 2004, with the College offering tailoredand qualification based programmes in the West Midlands.

Despite the difficult international situation the Collegecontinued to develop a range of internationalprogrammes. Participants attended these from Kenya, SriLanka, South Africa and Ukraine. Each programmeincluded co-operative business training, specialist inputfrom UK co-operators, a wide range of study visits and thesharing of ideas.

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Working with Schools and Young People

The College has strengthened its links with the growingnetwork of Business and Enterprise Collegessponsored by the Co-operative Group through work on aCo-operative Action funded Curriculum DevelopmentProject. Five schools achieved designation in September2004, with the network extending further in 2005.

The College is working to encourage other societies andmutuals to sponsor schools and build the network.

The Archive and Museum collections were used as learningresources in a project by Sir Thomas Boughey Business andEnterprise College. The project involved banners and theirimagery, leading to the production of new banners bystudents and the development of resources which will bedisseminated widely.

The Not Just for Profit pack, a learning resource to introducesocial enterprise into the school curriculum, was launched inMarch. The lively, interactive resource was developed under aWest Midlands Social Economy Partnership project involvingthe Marches Consortium, Dynamix, Wolverhampton CityCouncil and the Co-operative College.

The College continued its work with young people,supporting young co-operators’ workshops atCongress and work to establish a Young Co-operatorsForum. It worked with the Co-operative Group to engageyoung employees in the Manchester co-operative complexthrough the ‘Chain’ network, which grew during the yearto over 250 members.

The second annual Co-operative Futures programmetook place in May 2004 in Calgary, Canada. The Collegearranged participation by 18 young co-operators from UKsocieties as well as providing inputs into the programme.The College also arranged for a delegation of 13 youngco-operators from the UK network to participate in the ICAEurope youth conference in Warsaw in September 2004.

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Working with the Wider Co-operative Movement

The College has expanded its work with the widerco-operative movement engaging with a diverse range ofco-operative mutual and social enterprises.

In partnership with Coventry and Warwickshire CDA theCollege developed workshops to assist community groupsto work together effectively and achieve their aims. Theproject published a DRIVE (Developing Real Initiative forEnterprise) manual to share outcomes and materials withCDAs and community groups.

Through the Access to Housing accreditedprogramme the College worked withtenants of housing co-operatives to raisetheir skills in running their co-operative.The College worked with Co-operativeDevelopment Society on appraisaldevelopment and training for appraisers andappraisees. Resources for memberdevelopment were trialled with housingco-operatives in the West Midlands, andpublished in the Just Ask membershiptoolkit.

The College worked with the leisure trustsin Salford and Oldham on establishing theirco-operative identity, culture change andmanagement development programmes.

In partnership with Co-operative and Mutual Solutionsthe College completed Board Skills Audits for SocialEnterprises through a project funded by the North WestDevelopment Agency.

Social Accountability workshops were run for socialenterprises in the North West in partnership with theNational Centre for Business Sustainability.

Working with Birkbeck Collegethe College developed aprogramme of training to assistFootball Supporters’ Trusts indeveloping their members andmaking their trusts sustainablethrough a West Midlands SocialEconomy Partnership project.

The College continued itsinvolvement in the SocialEnterprise East Midlandsproject and, in the latter part ofthe year completed workevaluating a new trainingprogramme for communityfood enterprises and foodco-operatives.

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Working with the Worldwide Co-operative Movement

The past year has seen a significant increase in the rangeand extent of the College’s work with the internationalco-operative movement.

In the first year of the Strategic Grant Agreement with theDepartment for International Development (DFID), over150,000 copies of the 2015 booklet were distributedin the UK. A popular pack “How to make your town aFairtrade town” was produced in conjunction with theCo-operative Group. A training pack on the ILORecommendation 193 on the Promotion ofCo-operatives was jointly published with the ILO and ICA,and subsequently translated into French. The Collegeworked with the ICA Africa office to develop aco-operative response to the Africa Commissionconsultation, and prepared a policy paper for DFID on therole of co-operatives in development.

The College is now actively building links withinternational co-operative development agencies.Collaboration with the Canadian Co-operative Associationand the Co-operative Development Foundation of Canadaled to the production of a College calendar featuringco-operatives in the developing world. Thedevelopment of a bank of learning resources includedphotographs used by United Co-operatives in their 2005members calendar. Course development for the memberand director framework was undertaken, and newinternational modules drafted.

At the end of the year the College commenced work withpartners in Poland, Czech Republic, Italy andLithuania on COCADE (Co-operative Curriculum for AdultEducation in Europe). The three-year project, funded by theEuropean Commission, will develop co-operative learningmaterials for members to help promote good governance.

The College completed work on the Confidence researchproject on employee financial participation inco-operatives with partners in Italy and the Basque regionof Spain.

In December a College project proposal, Co-operation,Social Responsibility and Fair Trade (COSRAFT) to researchthe relationship between the co-operative and fairtrade sectors in Europe was approved. The project,funded by the European Commission involves partners inBelgium, Italy, Sweden and ICA Europe.

College associates continued to work on a range of socialresponsibility issues including auditing labour conditions insupply chains.

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Rochdale Pioneers Museum and National Co operative Archive

The year ended withcelebrations for the 160thanniversary of theRochdale Pioneers. Withsupport from UnitedCo-operatives, theCo-operative Group,ROFTRA and Touchstones,evening events atTouchstones in Rochdalesaw Dr Alan Burtonpresent an evening ofco-operative archive filmsand Dr Linda Shawintroducing a session onthe global co-operativemovement. On 21December, the

anniversary of the opening of the Toad Lane store, areception was held in the Museum, followed by Pioneersof Co-operation, with contributions by Professor StephenYeo, former Chair of the Co-operative College andProfessor Ian MacPherson from the British ColumbiaInstitute for Co-operative Studies in Canada.

An exhibition of banners from the collections of theRochdale Pioneers Museum was hosted by TouchstonesRochdale, the arts and heritage centre, giving theopportunity to display items not regularly seen by the public.

The relationship with Touchstones Rochdale and the LocalStudies collections have continued to develop. Aneducational project sponsored by United Co-operatives ledto workshops involving 350 local primaryschoolchildren at the Rochdale Pioneers Museum andTouchstones.

Staff members made presentations on the RochdalePioneers and the College at a conference on the socialeconomy Rencontres Régionales et Européennes del’Economie Sociale et Solidaire, in Limousin, France at theinvitation of the organisers.

The Archive Committee has been strengthened during theyear by further appointments. Janice Miller, a qualifiedarchivist joined the team in the autumn. Most of thearchive collections that had been in storage have returnedto Holyoake House following the installation of extensivearchival storage facilities.

During the year the Museum has attracted visitors anddelegations from co-operative societies from all overthe world. Researchers using the Archive have come fromthroughout the UK and many other countries.

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Statutory Governance Statements and Accounts -

Statement of Responsibility of Co-operativesUK as Trustee

Charity law and the Trust Deed require the Trustee toprepare financial statements for each financial year whichgive a true and fair view of the state of affairs of theCo-operative College Trust (the Trust) at the end of theyear, and of the income and expenditure for that period. Inpreparing those financial statements generally acceptedaccounting practice entails that the Trustee should:

• Select suitable accounting policies and apply themconsistently.

• Make judgements and estimates that are reasonable andprudent.

• State whether accounting standards and statements ofrecommended practice have been followed, subject toany material departures disclosed and explained in thefinancial statements.

• State whether the financial statements comply with theTrust Deed, subject to any material departures disclosedand explained in the financial statements.

• Prepare financial statements on a going concern basisunless it is inappropriate to presume that the Trust willcontinue its activities.

The Trustee is required to act in accordance with the TrustScheme of the Charity, within the framework of trust law.The Trustee is responsible for keeping proper accountingrecords, sufficient to disclose at any time, with reasonableaccuracy, the financial position of the Trust at that time,and enable the Trustee to ensure that, where any

statements of accounts are prepared by them undersection 42(1) the Charities Act 1993, those statements ofaccounts comply with the requirements of regulationsunder that provision. The Trustee has general responsibilityfor taking such steps as are reasonably open to it tosafeguard the assets of the Trust and to prevent and detectfraud and other irregularities.

Internal Control

The Trustee is ultimately responsible for the Trust’s systemof internal control and reviewing its effectiveness.However, such a system is designed to manage rather thaneliminate the risk of failure to achieve business objectives,and can provide only reasonable and not absoluteassurance against material misstatement or loss.

The Co-operative College Trust works within theframework of the Co-operativesUK Corporate GovernanceCode of Best Practice. The Board have implemented thoseparts of the Code directly applicable, having noted thoserecommendations not applicable to its operation.

Key procedures have been established, providing effectiveinternal financial control. These include:

• Clearly defined lines of responsibility and delegation.• Operation within revised approved financial regulations.• Budget setting and approval.

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• Regular performance review and reporting and forecastsagainst approved budget by the Trust managementteam.

• Reporting to and review by the Trust’s Audit Committeeand Board of Governors on a regular basis.

During the year, the Trust’s internal auditor reviewed andreported on key areas of operation.

Constitution of the Trustee and Board ofManagement

Co-operativesUK is the corporate Trustee of theCo-operative College Trust, and its Board of Directors,elected in accordance with its rules, fulfil theresponsibilities of the Trustee. The Trust Instrument andArticles of Government were revised with the approval ofthe Charity Commission and DfES in 2004 and the Boardof Management was reconstituted as the Board ofGovernors following adoption of the new constitutionalframework in August 2004. The Co-operative CollegeBoard of Governors are appointed by the Trustee.

Risk Management

The Trust’s management has a clear responsibility for:

• Identifying risks facing the business.• Putting in place actions and procedures to mitigate and

control risks.• Monitor risks.

The Trust’s management held a risk assessment workshopto develop its risk register and developed plans to control

identified risk areas. The Audit Committee and Boardhave regularly reviewed the register and actions to controlrisks. The process is now part of the Trust’s annualplanning cycle.

Information System

The Trust has a management agreement withCo-operativesUK who provide a comprehensive accountingsystem that forms the core of its financial reporting. Alltransactions are recorded through this system. Monthlyactual results are produced from this system for reportingto 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 andwhen required.

The accounting system is complemented by the Trust’slearner database that is used to record all studentenrolments and details of the Trust’s educational courses.

Control Procedures and Monitoring

In addition to the controls previously mentioned, there areclearly defined policies for capital expenditure. Theseinclude appropriate authorisation levels with larger projectsrequiring Board approval. The Audit Committee performs akey role in the review of the effectiveness of internalfinancial and other controls. The Committee met on sixoccasions and has been able to refer to work undertakenby internal audit. By the end of the year the Trust wascompliant with the Co-operativesUK Corporate GovernanceCode of Best Practice para 31 in as far as it is applicable tothe Trust.

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Reserves Policy

The Board and Trustee have agreed the basis of a reservespolicy based on the projected operating costs of theCollege over the life of its Strategic Plan. Discussions areunder way with the College’s professional advisors on thedetail of the policy, in order that it can be implemented inthe current financial year.

Auditors

KPMG LLP were reappointed auditors by the Trustee at itsAGM on 23 May 2004. In accordance with good corporategovernance, a tender process for the appointment ofauditors is under way. A resolution will be presented at theforthcoming AGM of Co-operativesUK.

Going Concern

After making all enquiries and taking into considerationthe detailed College strategic plan and budgets, theTrustee has a reasonable expectation that the Trust hasadequate resources to continue in operational existence forthe foreseeable future. For this reason, it continues toadopt the going concern basis in preparing the Trust’saccounts.

Independent Auditors Report to the Trustee ofthe Co-operative College Trust

We have audited the financial statements on pages 16 to 29.

This report is made solely to the Charity’s trustee, as abody, in accordance with section 43 of the Charities Act1993 and regulations made under section 44 of that Act.Our audit work has been undertaken so that we mightstate to the Charity’s trustee those matters we are requiredto state to them in an auditor’s report and for no otherpurpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than theCharity and the Charity’s Trustee as a body, for our auditwork, for this report, or for the opinions we have formed.

Trustee Certification

The accounts and notes on pages 16 to 29 are herebysigned by:

On behalf of the Trustee:

Ben Reid – Chair, Co-operativesUK Board of Directors,Trustee Dame Pauline Green – Chief Executive & SecretaryCo-operativesUK, Trustee

On behalf of the Co-operative College Board of Governors:

David Gibson – Chair, Co-operative College Board ofGovernorsMervyn Wilson – Chief Executive & Principal,Co-operative College

Date: 20 April 2005

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Respective Responsibilities of the Trustee and Auditors

You are responsible as the Trustee for preparing theTrustee’s report and, as described on page 12, thefinancial statements in accordance with applicableUnited Kingdom law and accounting standards. Ourresponsibilities, as independent auditors, are establishedin the United Kingdom by statute, the Auditing PracticesBoard, the Co-operativesUK Code of Best Practice (“thecode”) and by our profession’s ethical guidance.

We have been appointed as auditors under section 43 ofthe Charities Act 1993 and report in accordance withregulations made under section 44 of that Act.

We report to you our opinion as to whether the financialstatements give a true and fair view and are properlyprepared in accordance with the Charities Act 1993. Wealso report to you if, in our opinion, the Trustee’s reportis not consistent with the financial statements, if theTrust has not kept proper accounting records, if we havenot received all the information and explanations werequire for our audit. We review whether the statementon pages 12 to 14 reflects the Trust’s compliance withparagraphs 31 and 32 of the code, and we report if itdoes not. We are not required to form an opinion on theeffectiveness of the Trust’s corporate governanceprocedures or its internal financial controls.

We read the other information contained in the financialstatements, including the statement on paragraphs 31and 32 of the code, and consider whether it is

consistent with the audited financial statements. Weconsider the implications for our report if we becomeaware of any apparent misstatements or materialinconsistencies with the financial statements.

Basis of Audit Opinion

We conducted our audit in accordance with AuditingStandards issued by the Auditing Practices Board. Anaudit includes examination, on a test basis, of evidencerelevant to the amounts and disclosures in the financialstatements. It also includes an assessment of thesignificant estimates and judgements made by theTrustee in the preparation of the financial statements,and of whether the accounting policies are appropriateto the Trust’s circumstances, consistently applied andadequately disclosed.

We planned and performed our audit so as to obtain allthe information and explanations which we considerednecessary in order to provide us with sufficient evidenceto give reasonable assurance that the financialstatements are free from material misstatementswhether by fraud or other irregularity or error. Informing our opinion we also evaluated the overalladequacy of the presentation of information in thefinancial statements.

Opinion

In our opinion the financial statements give a true andfair view of the Trust’s state of affairs as at 31stDecember 2004 and of its incoming resources andapplication of resources in the year then ended and havebeen properly prepared in accordance with theCharities Act 1993.

KPMG LLPChartered AccountantsRegistered AuditorSt James’ SquareManchester LancashireM2 6DS20 April 2005

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Statement of Financial Activities for the year ended 31 December 2004

Unrestricted Restricted EndowmentFunds Funds Funds Total 2003

Notes £ £ £ £ £Incoming ResourcesIncoming Resources from operating activities in furtherance of the charities objectives.

Subscriptions 40,764 40,764 34,211 Management services 175,000 175,000 175,000Course fees 515,405 515,405 423,447Projects 2a 420,105 420,105 260,103

Donations, Legacies and similar resourcesGrants 2b 42,463 42,463 453,859Archive Grants 44,500 44,500 44,500

Investment incomeInvestment income 200,637 23,778 224,415 168,010

Other Incoming ResourcesMiscellaneous income 81,763 81,763 40,634

1,479,873 64,542 - 1,544,415 1,599,764Resources ExpendedCharitable Expenditure:

Personnel & course costs 3 1,054,651 41,656 1,096,307 977,815Establishment costs 3 148,388 11,088 159,476 179,782Administration costs - all activities 3 239,345 239,345 195,020

Total Resources Expended 1,442,384 52,744 - 1,495,128 1,352,617

Net incoming resources / Net income for the year 37,489 11,798 - 49,287 247,147

Net funds brought forward at 1 January 3,950,384 521,994 380,702 4,853,080 4,605,933

Total fund carried forward at 31 December 3,987,873 533,792 380,702 4,902,367 4,853,080

The Trust has no other gains or losses other than the net movement in funds for the year as shown above. All amounts are derived from continuing operations.

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Balance Sheet as at 31 December 2004 Cashflow Statement Year ended 31 December 2004

2004 2003Notes £ £

Fixed Assets

Tangible assets 7 56,367 72,500

Investments 8 4,055,049 4,052,624

4,111,416 4,125,124

Current assets

Stocks 9 - 2,460

Debtors & prepayments 10 261,884 133,944

Investments 11 768,657 765,478

Cash at bank and in hand 222,670 154,495

1,253,211 1,056,377

Current Liabilities

Amounts falling due within one year:

Creditors 12 462,260 328,421

Net current assets 790,951 727,956

Net assets 4,902,367 4,853,080

Funds

Endowment 13 380,702 380,702

Restricted 13 533,792 521,993

Unrestricted 14 3,987,873 3,950,385

Total charitable funds 4,902,367 4,853,080

2004 2003Notes £ £

Net cash (outflow) from operating activities 15 (130,494) (75,381)

Return on investments & servicing of finance 15 224,415 168,010

Capital expenditure 15 (22,567) (104,307)

Increase/(Decrease) in cash 71,354 (11,678)

Reconciliation of net cash flow to movement

on net funds:

Net funds at 1 January 16 919,973 931,651

Increase/(Decrease) in cash 16 71,354 (11,678)

Net funds at 31 December 16 991,327 919,973

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1. Statement of Accounting Policies

a) Basis of accountingThe accounts have been prepared on the historical cost accounting basis for the yearended 31 December 2004, together with comparative figures for the year to 31December 2003 and in accordance with applicable accounting standards and thestatement of recommended practice ‘Accounting and Reporting by Charities’ issuedin October 2000. The presentation of the accounts comply with the Charities Act requirementsunder the charities SORP.

b) Income All income is recorded exclusive of VAT.

Management Services Income for management services is recognised on an accruals basis inaccordance with the service level agreement with Co-operativesUK.

Course Fees Course Fees are recognised in line with the delivery of the course with theco-operative society involved.

Grants and LSC funding Grants are recognised when received, however, where the conditions for receipthave not been complied with, the funds are deferred to future periods.

Project Income Project Income is recognised on actual work completed to the end of December2004.

Investment Income Investment Income is recognised on an accruals basis.

c) Expenditure Expenditure is recognised on an accruals basis. All expenditure is charitable. We would like to acknowledge that a number of College publications have beendistributed by co-operative societies.

d) Fixed Assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated in equal monthly amounts based on cost.

The following minimum rates are applied: Land & Buildings Freehold 2.5% per Annum

Improvements 10% per Annum Plant and fixtures & fittings 10% - 33% per AnnumMotor Vehicles 33% per Annum Information Technology Equipment 50% per Annum

Assets are depreciated at the above minimum rates over their expected useful lives.Annual impairment reviews are performed by the College Trust management.

e) StocksBought in goods are valued at the lower of cost or net realisable value.

f) Funds Unrestricted funds are available for use in the day to day operations of the Trust.Restricted funds represent those amounts donated to the Trust and available forthe specific purpose set out in note 13. Endowment funds represent donated monies where only the interest is availablefor the purpose specified by the donor. The Trust is in consultation with the Charities Commission to consolidaterestricted and endowment funds into a co-operative education fund to ensurethat they can be used effectively in the future.

g) Pension Staff are eligible to join a pension scheme operated by Co-operativesUK Limited,which provides benefits based on final pensionable pay.The assets of the scheme are held separately from those of Co-operativesUK,being invested with the Co-operative Insurance Society.Contributions to the scheme are charged to the income and expenditureaccount so as to spread the cost of pensions over employees’ working lives withthe organisation.

Notes to the Accounts

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The Trust continues to take advantage of the transitional arrangements availableunder FRS 17 ‘Retirement Benefits’ which gives rise to additional disclosuresabout the Co-operativesUK’s defined benefits pension scheme (see note 18).

h) Operating Leases Rentals payable under operating leases are charged to income and expenditureaccount as they arise.

2. Grants

a) ProjectsThe contribution received from the Department for International Development inrelation to the Strategic Grant Agreement for the financial year to 31 December2004 was £111,750 (2003 - £16,250).

b) Grants2004 2003

£ £

LSC Grants 42,463 215,996

Les Stannard Restricted Fund Income - 25,000

Co-operatives UK Education Department - 170,026

LSC IT Grants - 42,837

42,463 453,859

The College received no Access Fund grant from the LSC.

Les Stannard Co-operative Citizenship Fund was established in 2003 by theCo-operative Group South East Region Values & Principles Committee to supportyoung people who wish to participate in educational opportunities provided bythe College.

Co-operativesUK Education Department Fund – Following the resolution atCongress 2003 to wind up the NCEA and transfer its residual funds to theEducation Development Fund, the Board of Co-operativesUK approved thetransfer of the remaining education funds from the former EducationDepartment to the Co-operative College. These comprise the Education SupportFund – a consolidated scholarship fund to support College programmes, the BertYoungjohns Memorial Scholarship Fund – which can be used to support studentsfrom Africa, Asia and India attending College courses, and the Hughes andNeale Scholarship Fund.

LSC IT fund is to be spent in accordance with our IT strategy with particularreference to equipment, software, infrastructure and projects.

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3. Charitable ExpenditureUnrestricted Restricted Endowment Total Total

Funds Funds Funds 2004 2003£ £ £ £ £

Personnel and course costs:Personnel costs 548,404 548,404 517,648Part time lecturers/consultancy 190,922 190,922 165,026Teaching non-pay 261,007 41,656 302,663 231,320Travel, subsistence, accommodation 54,318 54,318 63,821

1,054,651 41,656 - 1,096,307 977,815

Establishment costs:Rent, Rates, Insurance 65,170 65,170 50,619Lighting, heating, cleaning 876 876 1,454Repairs, renewal 2,507 2,507 31,497Depreciation 27,948 11,088 39,036 30,301VAT 51,887 51,887 65,911

148,388 11,088 - 159,476 179,782

Administration costs:Postage, telephone 24,758 24,758 16,850Printing, stationery, publications 67,899 67,899 40,963Audit fees - audit work 7,775 7,775 13,787Audit fees - other work 2,350 2,350 - Internal Audit fees 7,000 7,000 7,910Professional fees 89,142 89,142 69,457Committees 9,630 9,630 6,587Miscellaneous 30,791 30,791 39,466

239,345 - - 239,345 195,020

No expenses were reimbursed to the trustee during the year. All expenses for trustee meetings are borne by Co-operatives UK.The College Trust purchased indemnity insurance for 2004 at a cost to the Charity of £2,047.The College Trust provides training services to KPMG to develop their knowledge and understanding of the co-operative sector. In 2004 the value of such work was £1,931.

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4. Employee Costs

The average number employed by the Trust was:

2004 2003Full time 12 12Part time 6 4

18 16

Full Time Equivalents 15 14

The costs incurred in respect of these employees (Including Senior ManagementTeam) were:

2004 2003£ £

Salaries & Wages 460,398 408,080

Social security 45,938 41,669

Pension 30,657 30,159

Other 11,411 37,740

548,404 517,648

5. Board of Governors Remuneration

The Board of Governors received no remuneration in the performance of theirduties, (2003 £nil).The Chair of the Co-operative College Board was paid £6,000 byCo-operatives UK for his services to Co-operative education (2003 £6,000).

6. Senior Management Remuneration

The total remuneration for senior management was as follows:

2004 2003£ £

Salaries 130,499 143,695Taxable benefits 6,837 6,394

137,336 150,089

Pension contributions 10,984 12,885

148,320 162,974

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

Salaries 68,264 60,855Taxable benefits 4,103 3,680

72,367 64,535

Pension contributions 6,144 5,477

78,511 70,012

The number of members of the senior management team (including ChiefExecutive & Principal) whose remuneration, excluding pension contributions, fellin the following £5,000 brackets:

2004 2003Up to £ 15,000 * 1 2£30,001 - £35,000 1 1£40,001 - £45,000 - 1£50,001 - £55,000 1 - £60,001 - £65,000 - 1£70,001 - £75,000 1 -

4 5* denotes part year only

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7. Tangible Fixed AssetsMotor Plant, fixtures IT and OfficeVehicles & fittings Equipment Total

£ £ £ £Cost

1 January 2004 31,577 26,356 70,990 128,923Additions 17,325 - 8,066 25,391 Disposals (14,921) - - (14,921)

31 December 2004 33,981 26,356 79,056 139,393

Depreciation 1 January 2004 20,907 220 35,296 56,423Charge for year 11,127 2,636 25,274 39,037 Disposals (12,434) - - (12,434)

31 December 2004 19,600 2,856 60,570 83,026

Net Book value 1 January 2004 10,670 26,136 35,694 72,500Net Book value 31 December 2004 14,381 23,500 18,486 56,367

8. Fixed Asset Investments£

1 January 2004 4,052,624Additions - Interest 2,425

31 December 2004 4,055,049

The investments represent funds placed with the Nationwide Building Society, Co-operative Bank Plc and the Co-operative Group.All investments are held at market value.

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9. Stocks

2004 2003£ £

Books - 2,460

10. Debtors

2004 2003£ £

Trade debtors 102,034 77,672

Other Debtors 1,617 -

Accrued Income 156,886 15,665

Prepayments 1,347 40,607

261,884 133,944

11. Current Asset Investments

2004 2003£ £

Co-operative Bank 193,157 64,978

Co-operative Group (short term deposits) 575,500 700,500

768,657 765,478

The investments represent funds placed with Co-operative Bank Plc and theCo-operative Group. All investments are held at market value.

12. Creditors

2004 2003£ £

Trade creditors 79,819 97,837

Co-operatives UK - 678

Accruals 132,140 179,751

Deferred Income 233,017 29,020

VAT 6,502 2,796

Taxation & social security 10,782 18,339

462,260 328,421

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13. Charitable FundsBalance Movement in Funds Gains Balance

1 Jan 2004 Incoming Resources /(losses) & transfers 31 Dec 2004£ £ £ £

Endowments:Lady Hayward Bequest 1,000 1,000Capital Restoration 225,000 225,000Endowment Fund 24,537 24,537College Endowments (50th Anniversary) 130,165 130,165

380,702 - - 380,702

Restricted Funds:Neal Bequest 6,451 6,451Scholarship & Lectureships 281,607 11,377 292,984LSC IT Restricted Fund 28,650 (11,088) 17,562Educational Development 50,998 40,764 (37,016) 54,746Educational Support 58,648 3,457 (3,140) 58,965Bert Youngjohns Memorial 12,882 (1,500) 11,382Hughes & Neal 52,624 2,425 55,049Emmanuel Booth 1,218 50 1,268Endowment Fund Interest 859 1,026 1,885College Endowments (50th Anniversary) Interest 4,556 5,443 9,999Les Stannard 23,501 23,501

521,994 64,542 (52,744) 533,792

Unrestricted Funds:Co-operatives UK Grant 200,000 200,000College Gifts 1,576 64 1,640Revenue reserves 3,748,808 37,489 (64) 3,786,233

3,950,384 37,553 (64) 3,987,873

Total charitable funds 4,853,080 102,095 (52,808) 4,902,367

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The Trust intends to consolidate those funds currently inactive and classed as educational funds into one fund after consultation and agreement with the CharityCommission. The fund will remain restricted.

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 fundsUnrestricted Restricted Endowment

Funds Funds Funds Total£ £ £ £

Tangible Assets 56,367 56,367

Fixed Asset Investments 3,521,257 533,792 4,055,049

Current Assets 872,509 380,702 1,253,211

Current Liabilities (462,260) (462,260)

3,927,873 533,792 380,702 4,902,367

14. Unrestricted funds

2004 2003£ £

Balance at 1 January 3,950,384 3,710,510

Surplus for year 37,489 239,874

Balance at 31 December 3,987,873 3,950,384

The reserves principally resulted from the sale of property originally purchased with funds gifted to the College by the co-operative movement. The Board and Trusteehave 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.

The Board and Trustee have agreed the basis of a reserves policy based on the projected operating costs of the College over the life of its Strategic Plan. Discussionsare underway with the College’s professional advisors on the detail of the policy, in order that it can be implemented in the current financial year.

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15. Reconciliation of net incoming / (outgoing) resources tonet cash (outflow) / inflow from operating activities

2004 2003£ £

Incoming resources before exceptional items 49,287 247,147

Depreciation charge 39,037 30,259

Movement in funds - -

Loss/(profit) on sale of fixed assets (2,762) 264

Decrease in stock 2,460 -

(Increase)/Decrease in debtors (127,940) 12,646

Increase/(Decrease) in creditors 133,839 (197,687)

Interest allocated on funds (224,415) (168,010)

Net cash (outflow) from operating activities (130,494) (75,381)

Return on investments and servicing of finance

Interest receivable 224,415 168,010

Capital & InvestmentsPayments to acquire tangible fixed assets (25,391) (51,683)Proceeds from sale of fixed assets 5,249 - Purchase of investments (2,425) (52,624)

(22,567) (104,307)

Net cash inflow / (outflow) from operating activities 71,354 (11,678)

16. Analysis of Net Funds

At 1 January Cash At 31 December2004 flows 2004

Cash at bank and in hand 154,495 68,175 222,670

Current asset investments 765,478 3,179 768,657

919,973 71,354 991,327

17. Contingent Liabilities & Capital Commitments

The Group has no contingent liabilities or capital commitments as at the balancesheet date (2003 - £nil).

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18. Pension Scheme

a) Balance Sheet and notesThe Co-operative College (the Employer) along with other employers participates in a defined benefit pension scheme (The Co-operativesUK Limited Staff PensionScheme), the assets of which are held in a separate fund administered by trustees. An actuarial valuation of the scheme was carried out as at 30th September 2004,and updated to 31st December 2004, by a qualified actuary employed by Co-operative Insurance Society Ltd.

The main assumptions used by the actuary were:At At At

31/12/04 31/12/03 31/12/02

Rate of increase in salaries 4.70% 4.80% 4.30%

Rate of increase in pensions in payments 2.70% 2.80% 2.30%

Discount rate 5.20% 5.43% 5.40%

Inflation assumption 2.70% 2.80% 2.30%

The assets in the scheme attributable to the Employer and the expected rate of return were:

Long-term Long-term Long-term rate of return Value rate of return Value rate of return Value

expected at £000’s expected at £000’s expected at £000’s31/12/04 31/12/03 31/12/02

Equities 7.1% 3,551 7.3% 2,568 7.0% 3,377

Bonds 4.6% 3,037 4.8% 3,584 4.5% 2,124

Total market value of assets 6,588 6,152 5,501

Present value of scheme liabilities (6,426) (5,831) (5,096)

Surplus in the scheme 162 321 405

Related deferred tax liability* (49) (96) (122)

Net pension asset 113 225 283

* (This assumed an Employer corporation tax rate of 30% for the years ended 31st December 2004, 31st December 2003 and 31st December 2002 )

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b) Analysis of amount charged to operating profit

31/12/04 31/12/03£ £

Current service cost 84 57

Past service cost 0 0

84 57

c) Analysis of amount credited to other financial income

31/12/04 31/12/03£ £

Expected return on pension scheme assets 52 53

(excluding the value of the insurance policies used to buy-out the benefits of deferred and current pensioners)

Interest on pension scheme liabilities (32) (27)

(excluding the value of the insurance policies used to buy-out the benefits of deferred and current pensioners)

Net return 20 26

d) Movement in surplus during the year

31/12/04 31/12/03£ £

Surplus in Scheme at beginning of the year 321 405

Movement in year: Current service cost (84) (57)Contributions 31 29Past service costs 0 0Other finance income 20 26Actuarial (loss) (126) (82)

Surplus in Scheme at end of year 162 321

The Employer has been paying contributions at the rate of 9% of pensionablesalaries. Total contributions paid by the Employer in the year ended 31December 2004 amounted to approximately £30,700. The contribution rate willbe reviewed in conjunction with the formal valuation of the Scheme due to becarried out as at 30th September 2004.

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e) Analysis of amount recognised in statement of total recognised gainsand losses

31/12/04 31/12/03£ £

Actual return less expected (91) (46)return on pension scheme assets

Experience gains and losses 202 420arising on the scheme liabilities

Changes in assumptions underlying the (237) (456)present value of the scheme liabilities

Actuarial (loss) recognised in STRGL (126) (82)

f) History of experience gains and losses

year ended year ended year ended31/12/04 31/12/03 31/12/02

Difference between the expectedand actual return on scheme assets:amount (£000’s) (91) (46) 47% of scheme assets 1.38% 0.75% 0.85%

Experience gains and losses on scheme liabilities:amount (£000’s) 202 420 175% of the present value of the scheme liabilities 3.14% 7.20% 3.43%

Total amount recognised in statement of total recognised gains and losses:amount (£000’s) (126) (82) 83% of the present value of thescheme liabilities 1.96% 1.41% 1.63%

19. Related Party Transactions

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

a) Members of the Board of Governors The only transactions relate to the reimbursement of travel expenses andsubsistence for 9 (2003 - 9) individual members of the board incurred on Trustbusiness amounting to £7,265 (2003 - £5,094).

b) Co-operativesUK Limited paid and received during the year a total of £121,458 and £239,059 respectively(2003 - £123,361 and £244,314) for services supplied on normal commercialterms. The balances owed by and to the Trust at the year end was £24,303 and£19,436 respectively (2003 - £12,528 and £19,436). The Trust received a grantfrom the Co-operativesUK Limited of £23,500 (2003 - £23,500) for the running ofof Rochdale Pioneers Museum, Toad Lane.

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Note: a new constitution was approved during 2004 which resulted inchanges to Board composition and membership.

Board Members 2004

Stepheo Yeo (Chair) . . . until September 2004David Gibson (Chair) . . from September 2004Gillian BoberNicola Boyle . . . . . . . . . from December 2004Adrian Egglestone . . . . until July 2004John Feather . . . . . . . . until September 2004Stephen Galjaard Dame Pauline GreenHilary Justin . . . . . . . . . from June 2004Margaret McCafferty . . until July 2004Andy PiercyDavid RodgersRichard Scott . . . . . . . . from June 2004Caroline TendlerJenny de Villiers . . . . . . until November 2004Gary WiltonMervyn Wilson . . . . . . . from October 2004

The College provides services to Societies, some of whose members are CollegeBoard members. In such cases services are provided on an “arms length” basis.

Audit Committee 2004

David Rodgers (Chair) . Board member Stephen Galjaard . . . . . Board member from March 2004Dave Thomson . . . . . . . Independent Secretary

Board of Learning 2004

Mervyn Wilson (Chair)Monica Birch . . . . . . . . from December 2004Gillian BoberAngela ColebrookJohn Feather . . . . . . . . until September 2004Russell GillSue Haines . . . . . . . . . . until September 2004Adrienne Lowe

Remuneration and Employment Committee 2004

Stephen Yeo (Chair) . . . until September 2004David Gibson . . . . . . . . from October 2004Gillian BoberJohn Feather . . . . . . . . until September 2004

Search Committee 2004

Stephen Yeo (Chair) . . . until September 2004David Gibson (Chair) . . from October 2004Alan MiddletonMervyn Wilson

Who’s Who and Contacts

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Archive Committee 2004

Stephen Yeo . . . . . . . . (Chair) Nick Mansfield . . . . . . . (Curatorial Advisor) Director, People’s History Museum Gillian Lonergan . . . . . . Co-operative College Learning Resources Manager . . . . . . . . . . . . . . . . . . and Archivist

Joan Allen . . . . . . . . . . University of Northumbria Ian Andrews . . . . . . . . . United Co-operativesPaul Arnold . . . . . . . . . Midlands Co-operative Society from October 2004

Alan Burton . . . . . . . . . De Montfort University Frank Dent . . . . . . . . . . Co-operative HistorianJohn Feather . . . . . . . . University of Loughborough from October 2004Karen Froggatt . . . . . . . Co-operative Group from July 2004Sue Letts . . . . . . . . . . . Midlands Co-operative Society from October 2004Gill Scott . . . . . . . . . . . University of Brighton

College Staff

Mervyn Wilson . . . . . . . Chief Executive & Principal*mervyn@co-op.ac.uk

Chris Cooper . . . . . . . . Director of Learning & Development*chris@co-op.ac.uk

Emma Willder . . . . . . . . Head of Management & Corporate Services*emma@co-op.ac.uk

Linda Shaw . . . . . . . . . Head of Research & Project Developmentlinda@co-op.ac.uk

Gillian Lonergan . . . . . . Learning Resources Manager & Archivistgillian@co-op.ac.uk

Monica Birch . . . . . . . . Clerk to the Boardmonica@co-op.ac.uk

Nickie Boyle . . . . . . . . . Learning & Development Manager (Leadership & . . . . . . . . . . . . . . . . . . Management)

nickie@co-op.ac.ukJudith Brown . . . . . . . . Business Support Assistant (Learner Records)

judith@co-op.ac.ukHannah Butler . . . . . . . Business Support Administrator

hannah@co-op.ac.uk

* Member of the College Leadership Team

Dorothy Greaves . . . . . . Museum Wardenmuseum@co-op.ac.uk

Steve Kingman . . . . . . . Business Support Team Leadersteve@co-op.ac.uk

Rosey Massey . . . . . . . . Business Support Assistantrosey@co-op.ac.uk

Janice Miller . . . . . . . . . Assistant Archivistjanice@co-op.ac.uk

Kieron Mongan . . . . . . Business Support Office Assistantkieron@co-op.ac.uk

Jayne Ormrod . . . . . . . . Business Support Assistantjayne@co-op.ac.uk

Malcolm Price . . . . . . . . Museum Wardenmuseum@co-op.ac.uk

Amanda Sharp . . . . . . . Projects Co-ordinatoramanda@co-op.ac.uk

Anna Shaw . . . . . . . . . Training Co-ordinatoranna@co-op.ac.uk

Dickon Siddall . . . . . . . IT Trainer & Website Co-ordinatordickon@co-op.ac.uk

Jenny de Villiers . . . . . . Learning & Development Manager jenny@co-op.ac.uk

Holyoake HouseHanover StreetManchesterM60 0AS

Tel: 0161 246 2926 Fax: 0161 246 2946Email: enquiries@co-op.ac.ukWebsite: http://www.co-op.ac.uk