Agenda Item:

Paper Number:

CORPORATION/COMMITTEE COVERSHEET

Report To Full Board of Governors

Report by Director of Finance and Operations

Date of
Meeting
Subject Management Accounts and Performance Indicators for the 8-month
period to 31 March 2017 and the latest projected cash flow to July 2018.
Action For information and discussion
Required

Summary Paper and analysis attached

of key
points
Recomme The Corporation is to note the contents of this report.
ndation(s)
Financial
Risks Financial Operational Learner
Operation Risk: Impact: Impact:
al Impact
High High High
&
Learner Medium Medium Medium
Impact Low Low Low
 Epping Forest College CB
Executive The operational financial position of the College up to March 2017 that is period 8, is reporting
Summary a deficit of 1,229k against a forecast deficit of 760k.
The financial risks are included in section 4 of the report.

YTD FULL YEAR

Actual as Forecast Original
% of Full Outturn Budget
Period 8 Profiled Year
31 March 2017 Actual Forecast Variance Forecast
'000 '000 '000 '000 '000
Income 8,301 8,150 151 69% 12,019 12,559

Pay Expenditure 5,782 5,459 (323) 70% 8,292 7,734

Non-pay
Expenditure 2,356 2,230 (126) 69% 3,392 2,995
Operating surplus
before interest,
tax, depreciation 163 461 (298) 49% 335 1,830
and amortisation
costs
Depreciation 840 840 0 67% 1,260 1,260
Interest Payable 212 212 0 67% 318 318
FRS 102 adjustment 166 166 0 67% 249 249
Operating (deficit)
after interest, tax, 71% (1,492) 3
(1,055) (757) (298)
depreciation and
amortisation costs

The profiled forecast enables monthly monitoring of performance against the revised budget.
Actual performance is measured as a percentage of the forecast for the year.

The College made an operational surplus of 163k before interest, tax, depreciation and
amortization charges. These charges are outside the immediate control of the College. The
impact of which is a deficit of 1,055k.

This deficit is 39% higher than expectation and indicates the College will miss its target
forecast out turn if no immediate remedial actions are taken.

Income is better than planned by 2% (151k).

Staffing and Pay expenditure is 323k or 6% adverse to plan due to continued use of
Agency staff to cover vacancies and carry out internal verifications. This level of spend
is expected to tail off in the remainder of the year due to exam season. (Appendix 3),
The non-pay expenditure is over spent against the plan by 126k that is, 6% adverse.
The College has instituted a cap on all non-essential spend, All purchases over 500
requires approval by the Executives. (Appendix 5a).

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 Epping Forest College CB
Meeting: Full Board of Governors

Date:

Report Title: Management Accounts and Performance Indicators for the 8-month period to 31
March 2017 and 12 months rolling cash flow to March 2018.

Purpose: INFORMATION

Summary: The College made an operational surplus of 163k before interest, tax,
depreciation and amortization charges. These charges are outside the immediate
control of the College. The impact of which is a deficit of 1,055k.

Author: Director of Finance and Operations

1. Introduction

The purpose of this paper is to report the financial performance of the College to managers and governors for
the 8-month period to 31 March 2017.

The following schedules are attached: -

Summary of Financial Key Performance Indicators (Appendix 1)

Income and Expenditure Account (Appendix 2)
Analysis of Income (Appendix 3)
Analysis of Pay Costs (Apprentice 4a)
Analysis of Total Non-Pay Costs (Appendix 5a)
Balance Sheet (Appendix 6)
Cash flow forecast to July 2018 (Appendix 7)
SFA Financial Performance Indicators Framework for Excellence (Appendix 8)
Progress against EFA/SFA Funding Targets - Appendix 9
Learner Support and Bursary Funds 2015-16 Appendix 10
Forecast Outturn 2016-17 Appendix 11

2. Background

The 2016-2017 budget approved by the Board in July 2016 was revised in light of a number of changes to the
College operations following the inspection of the College in November 2016 and the failure to implement the
budgeted staff restructuring.

The revised budget and the forecast outturn has been profiled across the remaining 6 months of the
academic year including the actual spend to January 2017. The monthly profile will enable College
Executives and Governors to monitor its performance against the revised financial objectives.

3. Report

3.1 Income and expenditure (appendices 2-5)

The College is reporting an operational surplus of 163k before interest, tax, depreciation and amortization
(EBITDA) charges compared to a planned surplus of 459k EBITDA.

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 Epping Forest College CB
The Monthly trend are as follows:

Full Year YTD YTD Variance Period 8 Period 7 Period 6

Forecast Actual Forecast 000s Mar 2017 Feb 2017 Jan 2016
Outturn
000s 000s 000s 000s 000s 000s
Income 12,019 8,301 8,150 151 986 1,159 1,101
Staffing & Pay (8,292) (5,782) (5,459) (323) (774) (757) (746)
Cost
Overheads & (3,396) (2,356) (2,230) (126) (150) (446) (269)
Admin Cost
Surplus / 331 163 461 (298) 62 (44) 86
(Deficit)

The components of the variance are as follows:

3.2 Income: (Appendix 3) - 151k Favourable variance. Made up

3.2.1 Recurrent Grant: (Appendix 9) - 49k Favourable variance

EFA Grant income will be paid in full despite the lower than contracted learner number this is
otherwise, referred to as the lagged funding method. The funding profiled evenly over the period. The
contracted learner is 1748 learners; the current number based on the last return made to the funding
council (R08) is 1,475 students

SFA Adult Education provision, (classroom based 19+) forecast funding at year-end (including
allowance for achievement) is expected to meet funding target of 925k including learner support
funds of 50k

High Needs Students This is currently at 113k ahead of plan due to higher number of learners
referral from neighbouring local councils.

Apprenticeships, the College is currently behind on its revised forecast by 105k on its 16 to 18
apprenticeships. The outturn includes an estimation of 31k achievement. It is unlikely that the
forecast out turn of 376k will be achieved given the number of learners enrolled as at 31 March and
the fact that the College will not be able to enrol any new apprentices until its ofsted grading for
management is at least satisfactory. The current projection is of 274k.

The 19+ apprenticeships is ahead of its year to date plan by 24k. It is expected to achieve 246k
against a funding target of 304k. The outturn includes an estimation of 17k achievement.
Please note, that the forecast year-end funding assumes similar retention rate of the current students
as the previous year; there is no allowance for new students starting in the remainder for the current
financial year.

3.2.2 Tuition Fees including the Advanced Learning Loans - 32k Favourable:
The College is 9% ahead of both Exam fees and tuition fees. The College will use up its allocation of
Learning Loans.

3.2.3 Other Income - 53k Favourable:

This is mainly income from lettings and Room hire including hospitality. The College has exceeded the full
year plan by 13% and it is expected that by the year end it will be 25% more than plan.

3.2.4 Alternative 14 to 16 Provision 18k Favourable

This is provision includes link courses and are ahead planned level of activities.

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 Epping Forest College CB
3.2.5 Full cost provision - 1K Favourable
The full cost provision is currently running at 67% of the planned activities and in line with full year plan.

3.3 Expenditure
3.3.1 Pay (Appendices 4a-4c) - 323k Adverse
Details are as follows:

Year to date pay expenditure currently stands at 69.20% against the forecast outturn of 66.48% of income.
That is 2.72% higher than planned.

Teaching departments are ahead of plan by 385k year to March 2017. This is due to use of agency staff to
cover vacancies, sickness and maternity absences. 154k of this over spend relates to LLDD, ALS and
functional skills students which require in most cases one to one support and as such any every absence of
their support staff requires cover. Additional and increased guided learning hours in English and Maths at a
cost of 37k. The unbudgeted cost of internal verifiers in Construction, Motor Vehicle and Electrical at 101k

Business Support departments and other payroll cost are within forecast at 72k favourable variance.

3.3.2 Non-pay (appendices 5a-5c) 126K adverse to year to date forecast.

Teaching Non Pay adverse variance of 26K was due to purchase of material to be recharged to learners.
Corporation Expenses is over spent by 91K mainly in Information and Network Tech by 24k, The use of a
developer in the Management Information Department explains the 25k adverse variance whilst most of the
these overspend are mitigated with corresponding under spend in a number of areas. However, additional
quality improvements initiatives has led to an adverse variance of 95k to March 2017.

General expenditure are being controlled by escalating purchase orders above 500 to Principals or in her
absent Executive Directors approval with a focus on only essential expenditure. Essential expenditure are
those that would affect Learner success and or those with health and safety implications.

3.4 Balance Sheet (Appendix 6)

At 31 March 2017 net current liability were 674k compared with net current assets 400k at the end of July
2016. This is due to increase in creditors against a reducing debtor balance. The bank balance and cash
investments amounted to 818 k (July 2,439k).

Outstanding trade debtors of 273k (January 587k) and an aged analysis of outstanding debts is below:

As at 31 As at 30 As at 31 As at 30 As at 31 As at As at 28 As at
July Sep Oct Nov Dec 31 Jan Feb 31 Mar
2016 2016 2016 2016 2016 2017 2017 2017
k k k k k k k k
0-30 days 50 21 59 3 69 0 217 3
(current)
31-60 days 129 203 34 27 1 43 0 34
61-90 days 11 207 108 29 10 1 40 7
91-120 days 0 29 312 58 41 9 7 70
Over 121 days 232 111 129 365 373 351 323 159
Total debtors 422 571 642 482 494 404 587 273

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 Epping Forest College CB
Analysis shows that:
o 48% (131k) of the debt relate to Student Loan Company and 97% of which are over 120
days.

o 13% (36k) relate to Flexi-plan arrangement and 89% of which are over 120 days as
scheduled

o 39% (106k) relate to other fess. These amounts owed by the Local councils

There is a provision of 9k for bad and doubtful debts.

3.5 Cash Flow and Treasury Management (Appendix 7)

A rolling 12 monthly cash flow forecasts are included for the period up to March 2018, which is consistent
with the revised financial plan. This is used in assessing the Going concern status of the College.
It will be noted that the cash balance and short-term investments as at 31 March 2017 totals 818k, which is
analysed as:

31 March 2017

Account Amount Date of Maturity Interest

K receivable
K
Current Account (0.25% interest rate) 818 Ongoing 0.6 *
32 day notice account (0.60% interest 0 Until withdrawal 0.5
rate)
TOTAL 818

28 February 2016

Account Amount Date of Maturity Interest

K receivable
K
Current Account (0.25% interest rate) 335 Ongoing 0.6 *
32 day notice account (0.60% interest 1,026 Until withdrawal 0.5
rate)
TOTAL 1,361

* for current and 32-day notice accounts this is interest received per month, interest shown for fixed term
investments is for the whole period of investment.
Actual monthly recurrent EFA/SFA funding received in the period August to November is significantly higher
than the December to March period. The Cash balance as at end of March represents 31 days of cash in
hand.
All investments are with the College bankers, Lloyds Bank.

3.6 Significant creditors.

3.6.1 Payment Received in Advance

000s
Tuition Fees & Other 58
Bursary and Other Student Funds 136
Second Year Fees 46
Total 240

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 Epping Forest College CB
3.6.2 Other Creditors

000s
Purchase Ledger Accruals 457
Material Surcharge 40
Sports Foundation Grant 24
Apprenticeship Trail Blazer 39
HMRC VAT 38
FRS102 Provision 166
Total 764

3.7 Bursary and Learner Support Funds (Appendix 10)

For Bursary Funds (for 16 to 18 year old learners) a total of 204k had been allocated as at March 2017
(February 204K) from the total allocation of 212k.
Free meals a total of 49k has been allocated from total allocation of 74k, and Learner Support funds (for
adult learners) a total of 58k had been allocated as at March 2017 from the total allocation of 70k. Advance
Learning Loan Bursary, allocated 17k year to date out of 33k.

3.8 Financial Plan Key Performance Indicators

The Corporation Board at its meeting on 6 July 2016 considered a range of key performance indicators
included in the two-year financial plan that includes liquidity, gearing, margin, income and expenditure. A
comparison of KPIs for Mar 2016 to July 2017 is given below:

Key Performance Target Actual Actual Actual Actual Actual

Indicator Financial Mar Feb Jan Dec July
Plan 16/17 2017 2017 2017 2016 2016
Liquidity
Cash days 99 days 36 days 45days 58 days 55 days 60 days
Adjusted Current ratio 1.51 0.70 0.82 0.89 0.93 1.21

Gearing
Total borrowing as a 21.14% 22.80% 21.19% 21.03% 21.05% 20.99%
percentage of reserves
and debt (excl. FRS
102 deficit)

Margin
Operating 3K (1,229K) (965K) (851K) (794K) 7K
surplus/(deficit)

Income
Dependency on EFA 71.1% 80.25% 70.47% 72.05% 72.84% 78.3%
income
Dependency on SFA 14.2% 14.33% 13.24% 13.12% 17.05% 10.9%
income
Dependency on other 14.7% 5.42% 16.29% 14.83% 10.11% 10.8%
funding

Expenditure
Staff costs as % of 61.84% 69.20% 69.98% 69.55% 69.79% 60.82%
income (incl. contract
tuition services / excl.
restructuring)

Page 7
 Epping Forest College CB

The reduction in cash days reflects the profile for receipt of SFA/EFA funding that decreases significantly in
the period December to March.
4. Financial and Risk Implications

Learner funding can also be volatile as data is checked and cleansed. In the event that funding
generated may reduce.

Ensuring an effective cost control system to deliver the forecast out turn

Growth in apprenticeships will be hampered by the SFA limitation due to the recent Ofsted.

Tight controls on staffing costs, particularly on agency/hourly-paid will be maintained to ensure pay
costs is kept to the sector benchmark of 65%.

EFA/SFA recurrent grant represents 90%. It is anticipated that funding from these sources will reduce
in future years. Thus, the College needs to develop strategies to optimise EFA/SFA and alternative
sources of income where it is possible.

Breach of loan covenants if there is an operating deficit excluding FRS 102 pension adjustments.

Failure to achieve EFA/SFA funding contracts, which may result in in-year clawback by the SFA and
reduced funding allocations in future years. Under-achievement on the EFA funding contract would be
impact from 2017-18 allocation.
5. Recommendation

The Corporation is requested to note the contents of this report.

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 Epping Forest College CB

MANAGEMENT ACCOUNTS
PERIOD 8 2016/17
( March 2017 )

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 Epping Forest College CB
EPPING FOREST COLLEGE

MANAGEMENT ACCOUNTS FOR MARCH 2017

CONTENTS Appendices

Summary of Financial Key Performance

Indicators 1

Income & Expenditure Account 2

Analysis of Income 3

Analysis of Total Pay Costs 4a

Analysis of Total Non-Pay Costs 5a

Balance Sheet 6

Cash flow Forecast 2016-17 7

SFA Framework for Excellence Indicators 8

Funding Summary 9
Bursary Fund and Discretionary Support
Fund 10

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 Epping Forest College CB
Appendix 1

SUMMARY FINANCIAL KEY PERFORMANCE INDICATORS

( PERIOD 8 - March 2017 )

'000
Year to Date - Mar 2017 Full Year Year to Date - Mar 2016
Actual Budget Variance Forecast Budget Variance Actual Budget Variance

Operating Surplus/ (Deficit) - (1,055) (757) 298 (1,492) 3 1,495 5 18 (13)

after Depreciation

Pay as % of Income 69.20% 66.48% 68.51% 61.84% 59.86% 60.61% 0.75%

SFA Framework for Excellence Indicators

Actual

16/17 Points
Adjusted current ratio 0.85 50

Adjusted operating performance (cash related) as a % of income (0.11%) 0

Borrowing as a % of total income 52.08% 20

Total Points 70

Financial Health Satisfactory

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 Epping Forest College CB
Appendix 2
INCOME & EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 31 JULY 2017
( PERIOD 8 - March 2017 )
'000
YTD ACTUAL
Same
as % of the Full Year
Year to March 2017 Period Full Year - 2016/17
Full Year 2015/16
2015/16
Forecast
Actual Forecast Variance Actual % Forecast Budget Variance Actual
Income

EFA/SFA Recurrent Grant 7,341 7,292 49 8,040 68% 10,731 10,926 (195) 12,451
Other EFA /SFA Income 15 13 2 203 75% 20 20 0 50
Release of Capital Grants 89 89 0 78 67% 133 133 0 134
Tuition Fees 395 363 32 326 72% 545 545 0 510
Other Income 135 80 55 46 113% 120 120 0 156
Other Project Income 218 200 18 202 73% 300 300 0 306
Full Cost 104 103 1 48 67% 155 500 (345) 60
Interest Received 4 10 (6) 8 27% 15 15 0 12

Total Income 8,301 8,150 151 8,951 69% 12,019 12,559 (540) 13,679

Pay Costs
Teaching Depts 3,678 3,293 (385) 3,451 74% 4,940 4,798 (142) 5,140
Employer Engagement 179 157 (22) 140 59% 302 269 (33) 213
Business & Resource Depts 1,736 1,808 72 1,438 63% 2,749 2,547 (202) 2,662
Full Cost 8 0 (8) 8 0% 0 200 200 2
Other Pay Costs 181 201 20 89 60% 301 (80) (381) 229

Total Pay Costs 5,782 5,459 (323) 5,126 70% 8,292 7,734 (558) 8,246

Non Pay Costs

Teaching Departments 379 353 (26) 413 72% 530 530 0 593
Employer Engagement 228 219 (9) 171 61% 375 375 0 258
Principal 12 10 (2) 0 80% 15 3 (12) 1
ILT & E-Learning 234 206 (28) 226 76% 309 225 (84) 314
Human Resources 104 100 (4) 70 69% 150 100 (50) 121
Finance 97 99 2 90 66% 148 200 52 155
MIS 292 267 (25) 276 73% 400 400 0 372
Estates 429 493 64 468 58% 739 739 0 739
Marketing 80 83 3 104 64% 125 150 25 148
Learner Services 11 13 2 6 55% 20 20 0 20
E-Learning & LRC 22 17 (5) 26 88% 25 25 0 39
Quality 462 367 (95) 170 84% 550 222 (328) 566
Equality & Diversity 3 4 1 3 50% 6 6 0 3
Gym 0 0 0 0 0% 0 0 0 5
Full Cost 3 0 (3) 0 0% 0 0 0 1

Total Non Pay Costs 0 2,356 2,230 (126) 2,023 69% 3,392 2,995 (397) 3,335

Total Expenditure 0 8,138 7,689 (449) 7,149 70% 11,684 10,729 (955) 11,581

Surplus/(deficit) before interest, tax, 163 461 (298) 1,802 49% 335 1,830 (1,495) 2,098
depreciation and amortisation costs

Depreciation 840 840 0 809 67% 1,260 1,260 0 1,420

Interest Payable 212 212 0 303 67% 318 318 0 332
Interest on Pension (FRS102) 166 166 0 76 67% 249 249 0 339

Total interest, tax, depreciation and

amortisation costs 1,218 1,218 0 1,188 67% 1,827 1,827 0 2,091
Surplus/(deficit) after interest, tax,
depreciation and amortisation costs (1,055) (757) (298) 614 71% (1,492) 3 (1,495) 7

Surplus /(deficit) on Asset Disposals 0 0 0 0 0 0 0 (1)

Surplus/(deficit) after Assets Disposals (1,055) (757) (298) 614 71% (1,492) 3 (1,495) 6

Transfer (to)/from Revaluation Reserve 33 33 0 33 57 57 0 57

Historic Cost Surplus/(deficit) (1,022) (724) (298) 647 71% (1,435) 60 (1,495) 63

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 Epping Forest College CB
Appendix 3
ANALYSIS OF INCOME
FOR THE PERIOD ENDED 31 JULY 2017
( PERIOD 8 - March 2017 )
'000
Same YTD ACTUAL
Full Year
Year to March 2017 Period as % of the Full Full Year - 2016/17
Year Forecast 2015/16
2015/16
Actual Forecast Variance Actual % Forecast Budget Variance Actual
Analysis of Income

1. EFA/SFA Recurrent Grant :

16-18 Grant 5,891 5,891 (0) 6,792 67% 8,837 8,837 0 10,188
19+ Grant 583 583 (0) 553 67% 875 875 0 848
EFA/SFA non recurrent grants 18 0 18 0 0% 0 0 0 392
Local Authority - High Need Students 380 267 113 280 95% 400 400 0 400
16 to 18 Apprenticeships 229 334 (105) 183 61% 376 464 (88) 315
19+ Apprenticeships 240 216 24 232 99% 243 350 (107) 308
7,341 7,292 49 8,040 68% 10,731 10,926 (195) 12,451

2. Release of Capital Grants 89 89 0 78 67% 133 133 0 134

3. Other EFA/SFA/ESF Income

ESF & Other 2 0 2 189 0% 0 0 0 26

LSF ( Admin. Charges ) 15 13 2 14 75% 20 20 0 24
.
Total Other EFA/SFA/ESF Income 15 13 4 203 75% 20 20 0 50

4. Tuition Fees
Normal 67 67 0 67 67% 100 100 0 122
Exam Fees 19 17 2 17 76% 25 25 0 22
Materials Surcharge 109 80 29 82 91% 120 120 0 124
24+ Advanced Learning Loans 200 200 0 160 67% 300 300 0 242

Total Tuition Fees 395 363 32 326 72% 545 545 0 510

5. Other Income
Rents & Lettings 71 25 46 25 192% 37 37 0 71
ECC - Library Service Charge 9 9 0 9 69% 13 13 0 13
Misc 55 47 8 12 79% 70 70 0 72

Total Other Income 135 80 55 46 113% 120 120 0 156

6. Other Project Income

Link Course Fees 14 - 16 67 67 0 73 67% 100 100 0 87
Alternative Provision 14 -16 151 133 18 129 76% 200 200 0 219

Total Other Project Income 218 200 18 202 73% 300 300 0 306

7. Interest Received 4 10 (6) 8 27% 15 15 0 12

Total Income before IGA 8,197 8,047 152 8,903 69% 11,864 12,059 (195) 13,619

Full Cost

CM - Income Targets 104 103 1 48 67% 155 500 (345) 60

Total Full Cost 104 103 1 48 5% 155 500 (345) 60

Total Income 8,301 8,150 153 8,951 74% 12,019 12,559 (540) 13,679

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 Epping Forest College CB
Appendix 4a
ANALYSIS OF PAY COSTS
FOR THE PERIOD ENDED 31 JULY 2017
( PERIOD 7 - March 2017 )
'000
YTD ACTUAL
Same as % of the Full Year
Year to March 2017 Full Year - 2016/17
Period Full Year 2015/16
2015/16 Forecast
Actual Forecast Variance Actual % Forecast Budget Variance Actual
Pay Costs
Teaching Depts
Learning Area A 1,015 946 (69) 1,179 72% 1,419 1,421 2 1,944
Learning Area B 817 716 (101) 658 76% 1,074 854 (220) 1,053
Learning Area C 596 537 (59) 576 74% 806 884 78 733
Dearning Area D 1,187 1,033 (154) 972 77% 1,549 1,529 (20) 1,326
Curriculum Admininstration 63 61 (2) 66 68% 92 110 18 84

Total Teaching Depts 3,678 3,293 (385) 3,451 74% 4,940 4,798 (142) 5,140

Employer Engagement 179 157 (22) 140 59% 302 269 (33) 213

Business & Resource Depts

Principal & Executive Team 412 415 3 328 66% 623 522 (101) 530
ILT 64 61 (3) 53 70% 91 91 (0) 101
Human Resources 107 105 (2) 90 68% 157 157 (0) 140
Finance 125 110 (15) 112 62% 203 189 (14) 171
Management Information Systems 239 253 14 170 63% 380 334 (46) 415
Estates 260 223 (37) 203 78% 334 334 (0) 342
Marketing 50 56 6 57 59% 85 85 0 124
Learner Services 226 335 109 225 45% 502 502 (0) 511
E-Learning & LRC 134 149 15 115 60% 224 224 (0) 174
Quality 103 100 (3) 73 69% 150 92 (58) 135
Gym 16 0 (16) 12 0% 0 17 17 19

Total Business & Resource Pay Costs 1,736 1,808 72 1,438 63% 2,749 2,547 (202) 2,662

Total Pay Costs before Other Pay & Full Cost 5,593 5,258 (335) 5,029 70% 7,991 7,614 (377) 8,015

Other Pay costs

Actuarial Pension Deficiency 81 80 (1) 68 68% 120 120 0 103

Agency & Contingency 0 1 1 0 0% 1 100 99 0
Pay Savings to be Identified 0 0 0 0 0% 0 (350) (350) 0
Sickness/Maternity 1 21 20 2 3% 31 0 (31) 7
Redundancy 99 99 0 19 66% 149 50 (99) 119

Total Other Pay Costs 181 201 20 89 60% 301 (80) (381) 229

Full Cost

Electrical 5 0 (5) 4 0% 0 0 0 1
Community Learning 3 0 (3) 4 0% 0 0 0 1
IT 0 0 0 0 0% 0 200 200 0

Total Full Cost Pay Costs 8 0 (8) 8 0% 0 200 200 2

Total Pay Costs 5,782 5,459 (323) 5,126 70% 8,292 7,734 (558) 8,246

Total Pay as % of Total Income 69.20% 66.48% (2.72%) 57.56% 68.51% 61.84% (6.67%) 60.00%

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 Epping Forest College CB
Appendix 5a
ANALYSIS OF NON PAY COSTS
FOR THE PERIOD ENDED 31 JULY 2017
( PERIOD 7 - FEBRUARY 2017 )
'000
YTD
ACTUAL as
Full Year
Year to March 2017 Same % of the Full Year - 2016/17
2015/16
Period Full Year
2015/16 Forecast
Actual Forecast Variance Actual Forecast Budget Variance Actual
Non Pay Costs
Teaching Depts

Learning Area A 68 61 (7) 77 75% 91 91 0 148

Learning Area B 60 51 (9) 47 79% 76 76 0 125
Learning Area C 94 108 14 151 58% 162 162 0 224
Learning Area D 46 39 (7) 38 79% 58 58 0 92
Alternative Provision 0 9 9 0 0% 13 13 0 4
FE Provisions - Adult Learners 0 0 0 3 0% 0 0 0 0
Material Surcharge 111 87 (24) 97 85% 130 130 0 0

379 353 (26) 413 72% 530 530 0 593

Employer Engagement 228 219 (9) 171 61% 375 375 0 258

Business & Resource Depts

Principal & Corporate services 12 10 (2) 0 80% 15 3 (12) 1

Network & Information Tech 234 206 (28) 226 76% 309 225 (84) 314
Human Resources 104 100 (4) 70 69% 150 100 (50) 121
Finance 97 99 2 90 66% 148 200 52 155
Management Information Systems 292 267 (25) 276 73% 400 400 0 372
Estates 429 493 64 468 58% 739 739 0 739
Marketing 80 83 3 104 64% 125 150 25 148
Learner Services 11 13 2 6 55% 20 20 0 20
E-Learning & LRC 22 17 (5) 26 88% 25 25 0 39
Quality 462 367 (95) 170 84% 550 222 (328) 566
OfSTED preparation provision 0 0 0 0 0% 0 0 0 0
Equality & Diversity 3 4 1 3 50% 6 6 0 3
Capital Development Costs 0 0 0 0 0% 0 0 0 0
Gym 3 0 (3) 0 0% 0 0 0 5
Interest on Pension (FRS102) 166 166 0 76 67% 249 249 0 164
Actual loss (FRS17) 0 0 0 0 0% 0 0 0 0
Depreciation 840 840 0 809 67% 1,260 1,260 0 1,216
Total Business & Resource Depts 2,755 2,664 (91) 2,324 69% 3,996 3,599 (397) 3,863

Total Non pay before Full Cost & Loan Interest 3,362 3,236 (126) 2,908 69% 4,901 4,504 (397) 4,714

Loan Interest 212 186 (26) 303 67% 318 318 0 303

Full Cost

Total Full Cost Non-pay Costs 0 0 0 0 0% 0 0 0 1

Total Non Pay Costs 3,574 3,422 (152) 3,211 68% 5,219 4,822 (397) 5,018

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 Epping Forest College CB
Appendix 6

FOR THE PERIOD ENDED 31 JULY 2017

BALANCE SHEET AS AT March 2017

1 Aug 2016 Movement 31 March 2017

000 000 000 000 000 000

Fixed assets
Tangible assets 38,993 (543) 38,450

Total fixed assets 38,993 (543) 38,450

Current assets
Trade Debtors 422 (149) 273
Other Debtors 215 676 891
Bank Deposits 1,522 (1,522) 0
Cash at bank and in hand 917 3,076 (99) (1,094) 818 1,982

Current Liability
Trade creditors 542 (140) 402
Payments received in advance 85 155 240
Other taxation and social security 275 (51) 224
Lloyds TSB Loan 220 (53) 167
SFA Loan 0 0 0
VAT - Lennartz Repayment 501 (132) 369
Accrual - short term employment benefits, holiday pay 266 0 266
Deferred income - government capital grants 130 94 224
Other creditors 657 2,676 107 (20) 764 2,656

Net current assets/(liabilies) 400 (1,074) (674)

Total assets less current liabilities 39,393 (1,617) 37,776

Less : Creditors - amounts falling due after more than one year

Deferred Capital Grants (6,133) 184 (5,949)

Lloyds TSB Loan (5,481) 116 (5,365)
VAT - Lennartz Claim (626) (12,240) 115 415 (511) (11,825)

Net assets excluding pension liability 27,153 (2,032) 25,951

Provisions
Defined benefit obligations (8,563) 0 (8,563)

NET ASSETS INCLUDING PENSION LIABILITY 18,590 (1,202) 17,388

Income & expenditure account excluding pension reserve 23,810 (1,157) 22,653

Pension reserve (8,563) 0 (8,563)

Income & expenditure account including pension reserve 15,247 (1,157) 14,090

Revaluation reserve 3,343 (45) 3,298

Total reserve 18,590 (1,202) 17,388

TOTAL 18,590 (1,202) 17,388

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Epping Forest College 2017-18
Forecast Actual Forecast Actual Forecast Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
Jan-17 Jan-17 Feb-17 Feb-17 Mar-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Operations: Receipts '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000 '000

EFA 495 495 460 460 456 456 1,110 1,025 847 502 996 748 758 590 444 444 412 409
SFA 52 69 48 50 48 50 116 107 89 35 110 83 84 65 49 49 46 45
Local Authority - High Need Students 2 130 257 140 140 0 0 0 0 150 0 0 150
SFA Apprenticeships (16 to 18) 23 36 22 22 22 22 52 48 40 88 17 12 13 10 7 7 7 7
SFA Apprenticeships (19+) 17 17 16 16 16 16 38 35 29 63 11 8 8 6 5 5 4 4
Other Funding 21 27 (14) 0 0 0 0 0 0 0 0
Learner Support Fund/Bursary (32) 1 85 0 85 0 0 145 0 0 85 0 0
Alternative Provision 65 5 0 50 70 70
Schools ( 14 -16 ) 0 22 8 28 30 0 0 0 10 10 10 10 10
Other income generating activities 10 7 10 11 10 4 10 10 0 0 13 13 13 13 13 13
Tuition fees 20 60 20 29 10 36 90 80 45 59 86 90 50 40 10 20 20 10
Council Library Recharge 13 0 0 0 0 0 0 0 0
Other receipts 15 0 15 3 15 28 17 27 27 27 4 1 15 15 10 15 15 15
Total receipts 632 738 591 643 805 883 1,508 1,485 1,087 994 1,223 942 1,085 749 768 648 527 733

Operations: Payments
Staff salaries (includes agency and consultant payments)
670 679 670 759 670 688 670 670 670 650 563 489 607 607 605 616 616 616
Staff restructuring costs 50 88 45 0 0 0 25 0 0 0
Revenue expenditure 423 266 371 455 371 367 371 295 295 315 198 198 198 198 198 198 198 198
Learner support fund 37 20 34 17 37 18 37 37 37 38 0 0 31 31 31 31 31 31
Total payments 1,130 965 1,075 1,231 1,128 1,161 1,078 1,002 1,002 1,003 806 687 836 836 859 845 845 845

Net inflow/(outflow) from operations (498) (227) (374) (588) (323) (278) 430 483 85 (9) 416 255 249 (87) (91) (197) (318) (112)

Cumulative net cashflow from operations 84 355 (19) (233) (556) (511) (81) 402 487 478 416 671 920 833 741 544 226 114

Servicing of Finance
Interest received 1 1 1 0 1 1 2 2 1 1 2 2 2 1 1 1 1 1
Loan interest payable (80) (83) (79) 0 (79) 0 0 (77) 0 0 (76)
Loan capital payable (56) (52) (55) 0 (59) 0 0 (59) 0 0 (58)

Net inflow/(outflow) from Servicing of Finance 1 1 1 0 (135) (134) 2 2 (133) 1 2 (136) 2 1 (135) 1 1 (133)

Total Net inflow/(outflow) before Capital expenditure

(497) (226) (373) (588) (458) (412) 432 485 (48) (8) 418 119 251 (86) (226) (196) (317) (245)

Capital expenditure (8) (49) (8) (13) (58) (9) (8) (8) (8) (8) (100) (100) (50) (10) (10) (10) (14) (14)
VAT ( Lennartz ) Repayments (130) (122) (130) 0 (130) 0 0 (130) 0 0 (130)

Total Net inflow/(outflow) after Capital expenditure(505) (275) (381) (601) (646) (543) 424 477 (186) (16) 318 (111) 201 (96) (366) (206) (331) (389)

Opening balance (including investments) 2,484 2,237 1,962 1,962 1,361 1,361 818 1,242 1,719 1,533 1,517 1,835 1,724 1,925 1,829 1,462 1,256 924

Closing balance (including investments) 1,979 1,962 1,581 1,361 715 818 1,242 1,719 1,533 1,517 1,835 1,724 1,925 1,829 1,462 1,256 924 535

Cash days 115 116 81 68 32 36 46

 Appendix 8

SFA Framework for Excellence Indicators

Target

16/17 Points
Adjusted current ratio 0.70 60

Adjusted operating performance (cash related) as a % of income (0.13%) 30

Borrowing as a % of total income 48.89% 30

| Total Points 120

Financial Health Satisfactory

Points scores for Performance Indicator Grades

Value added Performance Indicator

240 - 300 Outstanding

180 - 230 Good

120 - 170 Satisfactory

<=110 Inadequate
 Epping Forest College CB

Epping Forest College - Funding Summary

EFA Forecasted Full Year Out-turn
Bands Learners Prog Income Risk Prog Out-turn
EFA CBL - Band 1 10 12,158 0 12,158
EFA CBL - Band 2 3 8,318 0 8,318
EFA CBL - Band 3 15 52,643 0 52,643
EFA CBL - Band 4 381 1,634,272 0 1,634,272
EFA CBL - Band 5 1,066 5,542,461 0 5,542,461
Future Planned n/a 0 0
Total 1,475 7,249,851 0 7,249,851
Contract Element 1,748 n/a n/a 8,602,966
Var 273 n/a n/a (1,353,115)
%Var (15.62%) n/a n/a (0)
Notes:
The source of information is the 06/04/17 (R08) FIS output. 19-24 HNS students are included in the
reported figures. Based on the assumption that withdrawals are up to date, and that evidence supports
the funding bands claimed, there is no risk to this funding.

SFA Forecasted Full Year Out-turn

Programme Additional Future Potential Variation
Learners Risk Out-turn Contract
Income Learning Suppot Planned Achievement (OutTurn - Contract)

16-18 Apprenticeship 220,611 600 44,136 0 0 0

16-18 Trailblazer Apprenticeship 8,834 0 1,148 0 0 0

Total 16-18 Apprenticeship 229,445 600 (1,194) 45,284 0 274,136 412,918 (138,782)

19-23 Apprenticeship 85,591 0 38,508 0 91,434 0 0

19-23 Trailblazer Apprenticeship 2,933 0 235 0 2,553 0 0

24+ Apprenticeship 150,842 0 29,002 0 151,566 0 0

24+ Trailblazer Apprenticeship 1,000 0 180 0 1,000 0 0
Total 19+ Apprenticeship 240,366 0 (61,738) 67,924 0 246,553 303,840 (57,287)

AEB - other learning 468,962 50,000 75,034 0 755,758

AEB - other learning 25+ HNS 0 0 0 0 0
Adult Skills Funded EFA Model 182,149 0 n/a 0 169,280 0 0
Total AEB other learning 651,110 50,000 148,894 75,034 0 925,038 925,038 0
Total ASB (excl 16-18 Apps) 891,476 50,000 87,156 142,958 0 1,171,591 1,228,878 (57,287)
Notes:

1. The source of information is the 06/04/17 FIS output R08

2. Programme income assumes all current enrolments are retained to the end of this academic year or to their planned end date.
3. No Adult Learning Support EAS (Earnings Adjustment Statements) have been submitted to date, forecast value includes this
4. For Trailblazers forecast out-turn is based on an assumption that existing enrolments are retained to the end of the Academic year or to their planned end date.
5. Potential achievement is based on funding available if all apprentices in learning achieve, excluding those more than 6 months beyond planned end date
6. Future planned provision is the value of additional enrolments required to achieve the forecast out-turn as reported in the Mid-Year funding claim.

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 Epping Forest College CB

Epping Forest College Appendix 10

LSF/Burary Funding Summary
As at 31 March 2017

Budget Allocated Balance

EFA ( 16-18 ) Bursary Fund

Vulnerable Student Bursary 37,680 35,760 1,920

Discretionary Bursary 212,652 203,923 8,729

Free Meals 74,187 48,965 25,223

SFA ( 19+ ) LSF

Discretionary Learner Support 70,000 57,509 12,491

24+ Advance Learning Loan Bursary 32,852 16,629 16,223

427,371 362,786 64,586

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 Epping Forest College CB
EPPING FOREST COLLEGE APPENDIX 11

BUDGET 2016-17

FORECAST OUTTURN

K K

Operating Surplus/(Deficit) 248

FRS 102 pension adjustment (245)
Surplus/(Deficit) on continuing operations 3

Income
16 to18 year old apprenticeships funding reduction (88)
19+ year old apprenticeships funding reduction (61)
19+ SFA classroom based provision funding reduction (46)
Tuition Fees - full cost provison, reversal of growth in original budget (345)

(540)

Staff costs
Staff costs - currciulum departments, quality improvement (175)
Quality Improvement (58)
Staff costs - support departments (144)
Pay savings to be identifed (381)
Staff costs for full cost provision - reduced provision in line with reduction in income 200
(558)

Non-pay costs

ILT - partial reversal assumed in the original budget, expenditure to support teaching and learning (84)
Teaching and Learning - support improvement in teaching, learning and assessment 0
OfSTED preparation - external support for quality improvement (217)
(301)

Update Surplus/(Deficit) on continuing operations (1,396)

Analysed as:

Update Surplus/(Deficit) on continuing operations (1,396)

FRS 102 pension adjustment (245)

(1,151)

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