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Trinity College London (A company limited by guarantee) Company number 2683033 Charity number 1014792 Report and Financial Statement for the year ended 31 March 2023

Trinity College London | Company No 2683033 | Charity No 1014792

Report of the Council Members for the year ended 31 March 2023 ...........................................................3 Structure, governance and management ..........................................................................................................5 Strategic Report ........................................................................................................................................................7 Statement of responsibilities of the Trustees of Trinity College London in respect of the Trustees’ annual report and the financial statements ......................................................................17 Independent Auditor’s Report to the Members of Trinity College London ............................................. 18 Consolidated Statement of Financial Activities for the year ended 31 March 2023 (including income and expenditure account) ..................................................................................................22 Consolidated and Company Balance Sheets as at 31 March 2023 ............................................................23 Consolidated Cash Flow Statement for the year ended 31 March 2023 ..................................................24 Notes to the Financial Statements for the year ended 31 March 2023 ....................................................25

Trinity College London | Company No 2683033 | Charity No 1014792

Report of the Council Members for the year ended 31 March 2023

The Council Members are pleased to present their report together with the audited financial statements of Trinity College London (“the company” or “the charitable company” or “TCL”) for the year ended 31 March 2023 which are also prepared to meet requirements for a Directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies as set out in the notes to the accounts and comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, published on 16 July 2014.

Reference and administrative details

Reference and administrative details
Charity number in England and Wales	1014792
Charity number in Scotland	SC049143
Company number	2683033
	Blue Fin Building
Registered office	110 Southwark Street
	London SE1 0TA
	KPMG LLP
Auditor	15 Canada Square
	London E14 5GL
	Lloyds Bank Plc
Principal auditor	39 Threadneedle Street Branch
	London EC2R 8AU
	Bates, Wells & Braithwaite
Principal solicitor	Cheapside House 138 Cheapside
	London EC2V 688
	The Directors of TCL are its	trustees for the purpose of
	charity law and throughout	this report are referred to
	as “Governors”, “Council Members”, “the Council” or
	“the Trustees”. The Directors who held office during the
	year and since the year end	were as follows:
	w Mark Damazer, CBE	w Salar Farzad
	(Chairman)	w Charles Hindson
Directors, Trustees and Council Members	w Dr Geoffrey Copland, CBE (Deputy Chairman) (resigned 4 May 2022) w Marie-Anne Birken w Emma Bourne	w Varun Kabra w James Mullan w Mike Saunders w Professor Geoffrey Smith (resigned 2 November
	w Giselle Vidic Cattorini	2022)
	(appointed 15 August 2022)	w Dr Michelle Teo
	w Rahul Chakkara	(appointed 15 August 2022)

Trinity College London | Company No 2683033 | Charity No 1014792

Reference and administrative details (continued)	Reference and administrative details (continued)
Audit committee	w Charles Hindson (Chairman)
	w Marie-Anne Birken
	w Emma Bourne (resigned 11 August 2023)
	w Rahul Chakkara
	w Dr Geoffrey Copland, CBE (resigned 4 May 2022)
	w Hilary Milne
	w Dr Michelle Teo (joined 2 November 2022)
Company secretary	Dr Fiona Butcher
Key management personnel	w Erez Tocker (Chief Executive Officer)
	w Duncan Atkins (Chief Information Officer)
	w Phil Bond (Director, UK & Ireland)
	w Dr Fiona Butcher (General Counsel)
	w Joysy John MBE (Director — Transformation Delivery
	(appointed 4 July 2022; resigned 3 January 2023)
	w Sam Kneller (Chief People & Culture Officer)
	(appointed 3 January 2023)
	w Rebecca Leadbitter (Director — People & Culture)
	(resigned 31 January 2023)
	w Pete Mobbs (Chief Financial Officer)
	w Rabea Noor (Interim International Sales Director)
	(appointed 21 November 2022; resigned 11 August 2023)
	w Marianne Phillips (Executive Director, Quality &
	Standards)
	w Jonathan Peake (Group Director, Global Hubs)
	(resigned 5 April 2022)
	w Nicholas Preston (Group Director, Press and Enterprises)
	w Professor Michael Rofe (Group Director, Sector
	Strategies) (resigned 30 September 2022)
	w Brent Taggart (Chief Product Officer) (joined 1
	December 2022)
	w Jacqueline Wybrow (Director — People & Culture)
	(resigned 3 June 2022)

Trinity College London | Company No 2683033 | Charity No 1014792

Structure, governance and management

GOVERNING DOCUMENT

TCL is a company limited by guarantee and a registered charity. It was established in 1992. The objectives of TCL are set out in its governing instrument, the Articles of Association.

ORGANISATION

The governing body of TCL is the Council, which is made up of appointed Council Members, who are also the Directors of TCL under the Companies Act. The Council meets regularly and retains full and effective control over TCL and its subsidiaries (“the group”). Through Council meetings, the Council Members monitor the performance of senior management and review the quality, effectiveness and timeliness of information provided to the Council. The Council is involved in major strategic decisions and has ultimate responsibility for the conduct and financial stability of TCL. For the purposes of the Companies Act, the Council is the Board of Directors of TCL and the Council Members are the Directors. For the purpose of charity law, the Council Members are the Trustees.

At the date of this report, the group consists of TCL and eleven subsidiary undertakings: Trinity College London (Italy) S R L, Trinity College London (India) Private Limited, Trinity London (Thailand) Limited, Trinity College London (HK) Limited, Trinity College London Enterprises Limited, Trinity College London SELT Limited, Trinity College London Press Limited, Fundación Trinity College London Espana (Spain), Trinity College London Spain SLU (Spain), Trinity College London (New Zealand) Limited and Shengyi Culture Consulting (Beijing) Co Ltd. Shengyi Culture Consulting (Beijing) Co Ltd was incorporated in June 2022 and is wholly owned by Trinity College London (HK) Limited.

The Council delegates the operational management of the group to senior management which comprises the Chief Executive Officer (CEO) and senior executives. The titles of these Senior Executives may include the word ‘Director’ although these individuals are not directors of TCL under company law.

The Nominations and Remuneration Committee is responsible for determining the remuneration of the CEO and certain key management personnel. In determining the remuneration, the Committee reviews and agrees:

w overall market positioning of the remuneration package;
w base salaries and increases;
w annual and long-term incentive/bonus arrangements; and
w the relevant targets for performance related schemes and pension arrangements.

COUNCIL MEMBERS AND RELATED PARTIES

TCL is related to Trinity Laban Conservatoire of Music and Dance (“TL”) because TCL has a specific power in its Articles of Association to subscribe to, and aid, the interests of TL and gives financial support by way of unconditional donations that are financed from surpluses after taking into account the reserve requirements of TCL. On 2 January 2019, TCL entered into an agreement for the provision of financial support for TL to give TL more certainty with respect to its intention to continue to give significantly to TL, subject to affordability. Although related charities, TCL and TL are not associated companies under the Companies Act.

Trinity College London | Company No 2683033 | Charity No 1014792

APPOINTMENT OF COUNCIL MEMBERS AND TERMS OF APPOINTMENT

Council Members are appointed by the Council. All Council Members are involved in the appointment of nominated individuals to the Council. When considering selection, the Council has regard to skills, any specialist knowledge requirements and diversity of experience. Newly appointed Council Members are briefed on their legal obligations under charity and company law, the content of the Articles of Association, the governing structure of TCL, the business plan and the recent financial performance of TCL. On appointment, all Council Members commit to a Code of Conduct and are also made familiar with the Charity Governance Code.

Council Members are updated regularly on their legal obligations and are also encouraged to attend appropriate events in order to facilitate the undertaking of their role.

Under the Articles of Association, each Council Member shall retire from office on the third anniversary of the commencement of his/her term of office. Retiring Council Members may be reappointed for a further two terms of three years but the reappointment of a Council Member who has served a period of three or more terms will be subject to annual review by the Council and further reappointments will be for one year at a time. Such one-year appointments may be made in one or more successive years.

James Mullan and Michael Saunders were appointed for a one-year term with effect from 7 April 2023.

Having served over nine years in office, Dr Geoffrey Copland CBE resigned with effect from 4 May 2023. The Council, management, staff and all those involved with Trinity College London would like to put on record their sincere appreciation for the guidance, support and commitment that Dr Geoffrey Copland provided in his varying Audit Committee and Council roles over many years.

SUBSIDIARY UNDERTAKINGS

TCL beneficially owns 100% of the issued share capital of Trinity College London (India) Private Ltd, a company incorporated in India. The company provides services in respect of the provision of examinations in that country.

TCL beneficially owns 49% of the issued share capital of Trinity London (Thailand) Ltd, a company incorporated in Thailand. The company is dormant. The investment was made in order to facilitate the provision of examinations in that country.

TCL beneficially owns 100% of the issued share capital of Trinity College London (HK) Ltd, a company incorporated in Hong Kong. The company provides services in respect of the provision of examinations in that country.

TCL owns 100% of the issued share capital of Trinity College London Enterprises Ltd, a company incorporated in England & Wales. The company is currently dormant.

TCL owns 100% of the issued share capital of Trinity College London SELT Ltd, a company incorporated in England & Wales that primarily provides services in respect of the provision of Secure English Language Test (SELT) examinations in the United Kingdom.

TCL owns 100% of the issued share capital of Trinity College London Press Ltd, a company incorporated in England & Wales that provides publishing services.

Trinity College London | Company No 2683033 | Charity No 1014792

TCL beneficially owns 100% of the issued share capital of Trinity College London (Italy) S R L, a company incorporated in Italy. The company provides services in respect of the provision of examinations in that country.

TCL beneficially owns 100% of the Fundación Trinity College London Espana, a not-for-profit company incorporated in Spain. The company is dormant.

TCL beneficially owns 100% of Trinity College London Spain SLU, a company incorporated in Spain.

TCL owns 100% of the issued share capital of Trinity College London (New Zealand) Limited, a company incorporated in New Zealand. The company was previously dormant.

Trinity College London (HK) Ltd owns 100% of Shengyi Culture Consulting (Beijing) Co Ltd, a company incorporated in China. The company was incorporated in June 2022. The company provides services in respect of the provision of examinations in that country.

OBJECTIVES AND ACTIVITIES

The objective of TCL is to advance education for the public benefit, in particular but without limitation, by promoting education, instruction and educational assessment in:

w Performing and creative arts; and

w Language and communication.

The objective is pursued primarily through the provision of examinations, assessments, consultancy, training and the publication of relevant materials. TCL maintains a close association with TL and at the same time exploits opportunities for the fullest development of all TCL’s educational services.

TCL’s examinations are conducted in registered examination centres (schools, private and public centres, workplaces etc) in the UK and approximately 50 countries internationally. TCL is regulated by the Office of Qualifications and Examinations Regulation, the Council for Curriculum, Examinations and Assessment in Northern Ireland and Qualifications Wales and relevant qualifications are recognised within the UK Regulated Qualifications Framework (“RQF’). TCL is in contact with education authorities around the world to promote the currency of its qualifications internationally. TCL’s staff set academic standards, write specifications, syllabuses and examinations, devise marking schemes and verify standards, process entries, administer the worldwide examination programme, and issue certificates and diplomas.

An important part of TCL’s activities is the provision of resource materials for music, drama and English language, together with supporting media, for study, appreciation and teaching. In collaboration with the Arts Council England (“ACE”), TCL also runs the Arts Award, which is a nationally recognised qualification based around any arts or media activity that inspires young people to grow their arts and leadership talents. It is a qualification with five levels and is open to all children and young people up to the age of 25. There are no entry requirements, no time limits for completing the award and no set rules about how to present the final work. Promotional activity for the Arts Award is aimed, in particular, at children and young adults from disadvantaged backgrounds.

Strategic Report

ACHIEVEMENTS AND PERFORMANCE

Following the challenging circumstances of the 2021/22 and previous financial years, Trinity’s income grew by 6.5% to £43m in 2022/23. This was still well short of pre-pandemic levels, but as much of this revenue was derived through our new digital offers, coupled with a limited return to

Trinity College London | Company No 2683033 | Charity No 1014792

“in the room” face-to-face examining in less than a dozen countries, it can be viewed as steady progress. Although the financial statements show a deficit for the financial year, preparatory measures have been implemented to ensure profitable future years, such as digital enhancements, new product development and a reconstituted Executive team.

Through the year, Trinity started to develop and embed its five strategic pillars throughout the organisation and offer. These five pillars are People, Operational Excellence, Protecting the Core, Market Transformation and Product Innovation.

PEOPLE

This was a year of establishing strong foundations upon which to build our longer-term People and Culture plan.

We launched “Your Voice Matters”, our first colleague opinion survey, to better understand engagement across Trinity and identify what we can do to create a more positive and inclusive workplace. The survey was supported by focus groups to gain more insight into the rich feedback we received and led to positive changes in our recruitment process, our internal communications planning, and a greater focus on employee recognition through our “Shout Out” programme. We also launched introductory training on Equality, Diversion & Inclusion for all colleagues to ensure a consistent understanding of what it means to be an inclusive organisation.

We continued to improve HR processes with the launch of a new HR information system which has enabled the automation of some core processes to improve efficiency whilst also giving greater transparency on key people metrics.

OPERATIONAL EXCELLENCE

Throughout the year, we focused on laying the foundations for future improvements, however some tangible results were achieved in year. We introduced a new customer facing platform (CX) to improve the experience which in time will support all of our varied customer channels to market as well as upgraded our telephony systems, allowing more tailored and quicker customer support. We also enhanced our IT and Data security position by starting the process of gaining ISO27001 accreditation.

PROTECTING THE CORE

Trinity remained resolutely committed to Protecting the Core of our business, while also diligently advancing our mission to protect and leverage our prestigious reputation as the global standard and trusted voice for Music, Drama, and English Language assessment.

This period bore witness to our dedication to delivering an expansive continuous improvement agenda within our SELT business unit, which aimed to enhance the overall customer experience, bolster our market presence, introduce and refine additional products and services, and expand our test point network to offer greater geo-convenience to our valued customers.

Furthermore, our commitment to digital transformation played a pivotal role in this journey. We recognised the importance of embracing digital innovations to not only streamline our operations but also to enhance accessibility and convenience for our stakeholders.

MARKET TRANSFORMATION

An assessment of our international offer was undertaken. Through this process the difficult decision of discontinuing the legacy in-person face-to-face exams, with the associated air and ground travel impact, was made. Whilst we continue to offer in-person face-to-face exams in some major markets, the majority of our existing geographies will only be serviced by our digital and video-conference offer.

Using our subsidiary in Spain, we have taken positive steps to change our in-country structure and profile. This is expected to be completed over the next 12 months.

Trinity College London | Company No 2683033 | Charity No 1014792

PRODUCT INNOVATION

We successfully embedded key components of the organisation and infrastructure that will support Trinity’s digital transformation over the coming months and years. This included establishing a new product management structure with a dedicated Chief Product Officer, implementing a new, scalable system for Digital Grade and Diploma exams; further development of a digital four-skills English language exam and creating a new digital submission platform, vastly simplifying and streamlining the process for candidates, parents and teachers.

The Council also wishes to thank the senior management, staff, the network of representatives and the panels of examiners for their hard work under trying circumstances.

FINANCIAL REVIEW

Income of £43,417,000 (2022: £40,744,000) was recorded during the year to 31 March 2023. Although the Coronavirus pandemic continued to have an effect on the operational and financial performance of TCL, revenue increased reflecting the positive impact of the new digital offerings.

Expenditure was £45,086,000 (2022: £41,138,000), including total donations payable of £500,000 (2022: £l,000,000). TCL has a fixed cost base of the market subsidiaries, SELT, and the head office/central functions that were managed to ensure they were as lean as possible whilst still providing an acceptable service. The management made the decision not to award any employee bonuses for the financial year.

During the period, the Council resolved, in light of the level of reserves and subject to the cash flow position, to pay donations totalling £500,000 (2022: £l,000,000) to TL and £nil (2022: £nil) to other third parties. This sum has been included in expenditure above.

The net deficit for the year, after donations paid, was (£1,669,000) (2022: (£394,000)).

PUBLIC BENEFIT

In setting strategic goals and planning activities, the Council has given careful consideration to the Charity Commission’s guidance on the public benefit. TCL’s primary objective is to advance education for the public benefit. This is achieved mainly through its broad suite of assessments, examinations and moderations in the Performing and Creative Arts and English Language. TCL’s philosophy of assessment is based on a combination of technical skills and communication, often demonstrated through one-on-one assessment and specifications and syllabuses designed to give students a broad education in the subject while achieving measurable progress. Evidence from teachers and candidates indicates that the skills gained in preparing to meet the standards set by TCL provide successful candidates with a range of technical and soft skills in communication, as well as greater self-confidence.

In addition, TCL provides teacher support and training, for example for Teachers of English for Speakers of Other Languages (TESOL), classroom teachers in Music and Arts Award advisers, as well as for teachers and examination centres in countries less familiar with arts and language assessment. TCL also runs workshops for teachers and provides them with numerous useful free resources on its Virtual Learning Environment. TCL has contracts with government departments and agencies extending assessments and/or training into new areas supporting wider initiatives for the public benefit.

TCL undertakes research and development in the appraisal of performance and communication skills and in the measurement of creativity, which highlights the importance of good communication and creativity for society as well as for individuals. It has also created a corpus of words spoken by learners in recordings of TCL’s Graded Exams in Spoken English for research purposes in collaboration with the University of Lancaster. TCL is an active member of associations in the Performing Arts and English Language which are committed to improving education and assessment.

Trinity College London | Company No 2683033 | Charity No 1014792

TCL runs a Language Access Fund to provide grants of up to £250 per candidate or £2000 per group of candidates to support the cost of English language learning and exams for candidates in the UK and Ireland. The Fund is targeted at applicants who experience barriers to accessing training and qualifications due to socio-economic or race inequalities, settlement status, or special needs or disabilities. In March 2022, it launched a special round of the Fund to support Ukrainians. Some 22 applications were successful (having been marked and assessed by a team of Trinity volunteers) and some £40K has now been distributed to 385 adults and children from the Ukraine. In addition, TCL donated free bespoke versions of the Trinity GESE preparation App to charities supporting Ukrainian refugees and co-ordinated with charities and schools to provide free reading books for young learners.

Historically, TCL has generated surpluses that have enabled donations to be paid to other educational charities, notably to Trinity Laban, or in support of educational needs, which in turn have supported student bursaries, scholarships or the further development of higher education, as well as recovery of educational activities in areas where TCL operates that have suffered major natural disasters. During the period, TCL made donations of £500,000 to TL.

RESERVES POLICY

It is TCL’s policy to maintain reserves that will permit it to maintain and grow its activities for the purpose of enhancing over time its ability to meet its charitable objectives. To that end, the Council seeks to ensure that there are sufficient net current assets to support working capital with reserves to meet current liabilities, and to afford reasonable protection to the company in the context of current and anticipated levels of activity, commitments, risks and exposures to specific markets.

Group cash balances at the balance sheet date stood at £8,093,000 (2022: £11,586,000). Group unrestricted general reserves at the balance sheet date stood at £11,975,000 (2022: £12,757,000).

During the year TCL, has invested a further £2,806,000 (2022: £2,246,000) in the administration and operating IT system for the long-term benefit of the group which has been covered by cash income. The free reserves of TCL (ie, unrestricted funds excluding designated reserves and fixed assets) are £3,430,000 (2022: £6,333,000). TCL considers this position satisfactory in light of the decision to wholly own rather than lease, under long term operating contracts, the administrative and operating support infrastructure. The policy over the five-year business planning cycle is for the free reserves to remain a net surplus.

The funding for new products, the capital investment spends, and the cash call for the donation are decisions made based upon TCL being able to meet its current obligations, having regard to the existing and projected performance.

The benefits of the investment in the administration and operating system are now being realised and accordingly depreciation is charged to SOFA. Spend on operational infrastructure was required to further the charitable objectives and to allow the growth in activity envisaged in the strategic plan for the long term. Accordingly, the Council considers the ongoing liquidity and financial position to be healthy and appropriate.

DONATIONS POLICY

Council seeks to optimise charitable donations in a way consistent with the stated reserves policy and subject to there being sufficient cash and liquid assets available to support TCL’s ongoing business.

During the financial year 2022/23 neither TCL nor its subsidiaries have made any political donations.

Trinity College London | Company No 2683033 | Charity No 1014792

PLANS FOR FUTURE PERIODS

We will continue to focus on driving our five key strategic pillars:

People

We will continue our journey towards a more inclusive and transparent workplace. We’re focused on ensuring all leaders are equipped with the skills to engage and motivate their teams and equipping all colleagues to develop to their full potential with a strong focus on learning and development initiatives that will support Trinity’s future focus. We will continue to amplify our colleague “voice” through “Your Voice Matters” and implement further initiatives to make Trinity an engaging and positive workplace for all.

Operational Excellence

We will continue to focus on customer service and security, with the intent to achieve the ISO27001 accreditation on a much broader scale and add to the customer journeys offered through the CX platform. In order to reduce our carbon footprint and give customers a quicker turnaround and more choice, we will start to move to digital rather than paper certificate offer by default. This is expected to be implemented in the UK market initially and then onto a rolling programme across our international markets.

Protecting the Core

We will continue our emphasis on social value, elevated customer support, and deepened community engagement; all integral aspects of bringing our mission to life. Through innovative and accessible products to support the educational needs of our diverse customer base and attract new audiences, we will solidify our position as the global standard and trusted voice in Music, Drama, and English Language assessment.

Market Transformation

We will continue to expand our offer geographically, allowing more international learners access to our digital products and related complementary materials. We will implement a global payment provider partner to simplify and standardise the customer journey, allowing more flexibility with payment options. We will continue the use of subsidiaries to enhance our offer in strategic markets.

Product Innovation

We will continue our digital transformation by harnessing cutting-edge technology to craft solutions supporting educators and learners that are not only impactful but also accessible to all. This will include partnering with dynamic start-ups, beginning with the launch of a learning application to be called Skill Up!, designed to develop English language skills for young learners. We will work with leading academic researchers in the field of machine learning and artificial intelligence to develop new services for music teachers enabling them to connect with their students and engage with Trinity levelled repertoire in ways never before possible. We will use generative AI tools to launch an experimental service for English language teachers that will enable them to create their own lesson plans aligned to the Trinity ISE and GESE syllabi. These programmes, amongst others, are a cornerstone of Trinity’s commitment to supporting and enabling our teachers across the globe and investing in frontier technologies.

Trinity College London | Company No 2683033 | Charity No 1014792

RISK MANAGEMENT

The Council is responsible for overseeing the management of the risks faced by TCL and is supported in this responsibility by the Audit Committee. A comprehensive review is carried out annually, on the basis of which detailed plans and budgets are approved for the following year.

The Council has assessed the major risks to which TCL is exposed, those related to the operations and financing of TCL, exposure to foreign currency movements, competition from new digital products, cybercrime and the protection of TCL’s name and reputation. The Council is satisfied that systems are in place to mitigate exposure to the major risks. A risk register and risk management framework is reviewed regularly and formally approved annually. The Chief Executive Officer has been delegated to manage these risks on a day-to-day basis, putting in place systems and procedures to limit the impact on TCL if any of those risks should materialise. Key risks include:

w Global Pandemic — controlled through digitising the product offer, recruiting more international examiners and enhanced financial reporting;
w Currency fluctuations — managed through hedging contracts and natural hedging;
w Changing political and competitive landscape — controlled through the development of alternative markets and products; and
w Cybercrime and security — mitigated through technical security controls and operational procedures.

FOREIGN EXCHANGE RISK

TCL operates across the world and is exposed to movements in foreign currencies affecting TCL’s financial result and the value of TCL equity. Foreign exchange risk arises because the amount of local currency paid or received for transactions denominated in foreign currencies may vary due to changes in exchange rates and because the foreign currency denominated financial statements of the TCL’s foreign subsidiaries may vary upon consolidation into the sterling denominated TCL Group Financial Statements. Foreign exchange risks arise primarily on transactions that are denominated in EUR, USD and INR.

In managing its exposure regarding the fluctuation in foreign currency exchange rates, TCL has entered into currency forward contracts. These agreements generally include the exchange of one currency against another currency at a future date. TCL adopts a policy of considering hedging for future net cash flows from exam income.

LIQUIDITY RISK

Liquidity risk is the risk that TCL will not be able to meet its financial obligations as they fall due. TCL’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to TCL’s reputation. There are processes in place to monitor cash flows in order to minimise liquidity risk and use bank deposits to gain interest from the money that is not immediately required. Investment income for 2022/23 was £2,000 (2021/22: £5,000).

Trinity College London | Company No 2683033 | Charity No 1014792

GOING CONCERN

The financial statements are drawn up on the going concern basis, which assumes the group will continue in operational existence for at least 12 months from the date of the signing of the accounts.

The Audit Committee scrutinises TCL’s finances, internal controls, risk management and compliance and reports its findings to the Council.

Current forecasts show that TCL will return to pre-pandemic levels of income within eighteen months of the date of signing of these financial statements. TCL will continue to drive digital products, improve efficiencies and build sustainable profits. Further details can be found in note 1.1b.

This report constitutes the Strategic Report and the Directors Report required under the Companies Act 2006.

SUSTAINABILITY AND CARBON REPORTING

TCL is reporting energy and carbon emissions in compliance with The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

Under changes introduced by the 2018 Regulations, large unquoted companies and large LLPs are obliged to report their UK energy use and associated greenhouse gas emissions as a minimum relating to gas, electricity and transport fuel, as well as an intensity ratio and information relating to energy efficiency action, through their annual reports.

Emissions and energy use data for the period 1 April 2022 to 31 March 2023.

Year to 31 March 2023	Year to 31 March 2022
Total electricity use 223,197 kWh Total gas use 125,734 kWh Total transport fuel 573,920 kWh Total energy use (all sources) 922,851 kWh Total carbon emissions (electricity) 65 tCO2e Total carbon emissions (gas) 27 tCO2e Total carbon emissions (transport fuel) 189 tCO2e Total carbon emissions (other sources) 11 tCO2e Total carbon emissions 292 tCO2e Total estate size 17,908 sq ft Carbon intensity ratio 16.30 kg/CO2e per sq ft	228,959 kWh
	64,333 kWh
	384,112 kWh
	677,404 kWh
	67 tCO2e
	14 tCO2e
	127 tCO2e
	12 tCO2e
	220 tCO2e
	17,908 sq ft
	12.28 kg/CO2e per sq ft

The emissions data above includes well to tank (WTT) and transmission and distribution (T&D) information.

WTT accounts for the upstream emissions associated with extraction, refining and transportation of raw fuel sources prior to combustion (gas, fuel) or for use in the generation of electricity.

T&D accounts for the emissions associated with grid energy loss which occurs in getting the electricity from the powerplant to the final user.

Trinity College London | Company No 2683033 | Charity No 1014792

REPORTING METHODOLOGY

The Energy Saving Opportunity Scheme (ESOS) methodology (as specified in “Complying with the ESOS version 6”, published by the Environment Agency, 21.01.21) is used in conjunction with Government greenhouse gas (GHG) reporting conversion factors.

For carbon-only related matters, the Streamline Energy & Carbon Reporting (SECR) methodology as specified in “Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting and greenhouse gas reporting” was used in conjunction with Government GHG reporting conversion factors.

ENERGY EFFICIENCY ACTION TAKEN

TCL is committed to responsible carbon management and will practise energy efficiency throughout the organisation, where-ever it is cost-effective. Climate change is recognised as one of the most serious environmental challenges currently threatening the global community and TCL has a role to play in reducing greenhouse gas emissions.

TCL has also continued with the following policies to increase the energy efficiency of the business in both the current year and future years:

w Maintained remote working. This will continue to be reviewed; and

w Continued encouragement of video conferencing
w Further digitalisation of our product offer
w Limiting the number of countries that we deliver in-person face-to-face exams

COMPLIANCE WITH TRUSTEES’ DUTIES UNDER SECTION 172(2) COMPANIES ACT 2006

Trustees must act in the way they consider, in good faith, would be most likely to promote TCL’s success in achieving its charitable purpose. As mentioned on page 5, in doing so the Trustees delegate day-to-day management and decision-making for the operational management of the group to senior management, which comprises the Chief Executive and Senior Executives. Senior management are required to pursue TCL’s strategic vision and ensure that activities are carried out in compliance with agreed plans and policies. The Trustees receive updates on TCL’s performance at each Council meeting.

In carrying out their duties, the Trustees have regard (amongst other matters) to:

The likely consequences of any decision in the long term

As stated on page 7, management has set primary objectives. These objectives and their implications were regularly considered and applied by the Council and management in their decision-making to ensure the long-term viability of TCL. In particular, under Plans for Future Periods, as noted on page 11, TCL embarked on a rapid programme of digitisation of its products and systems to enable their continued delivery around the world during the pandemic. Senior management is now seeking to extend these changes in TCL’s offer to provide greater choice for the existing customer base (whose expectations around the use of digital are changing) and reach new audiences.

Trinity College London | Company No 2683033 | Charity No 1014792

The interests of the Charity’s employees

As noted, a primary objective of TCL during the pandemic has been to keep our staff safe. This has involved a working-from-home option (even outside of lockdowns), providing Covid-safe office working environments and access to an Employee Assistance Programme to support mental health and wellbeing. We are also committed to developing a high performing and nimble culture that reflects the high standards that we promote and enables our people to develop to their full potential. As part of this process, we are creating an equality, diversity and inclusion (EDI) strategy that enables people to bring their true self to work and allows them to develop and grow in a diverse and inclusive environment that is free from discrimination. We are also reviewing our organisational design to ensure it allows for appropriate delegation and quick but considered decision-making.

TCL works with Culture Amp to carry out our employee engagement surveys. This enables us to guarantee complete anonymity and provide an excellent experience. We have just completed our ‘Your Voice Matters Survey’ for 2023 and are in the process of analysing the results which will be used to shape our future priorities.

The need to foster the charity’s business relationships with suppliers, customers and others

Our network of national and area representatives, along with other local partnership organisations, is of the utmost importance to our work worldwide. Whilst respecting the arm’s length nature of these relationships, we strive to collaborate with them where possible, including through consultation, piloting of new products and the promotion of greater transparency between us by regular information sharing about customer demand and the company’s strategic direction.

In our SELT business we have introduced a programme of local community ambassadors. These individuals are respected members of their communities who can act as ‘trusted voices’. This programme helps us to understand the particular needs of different communities and thereby provide better customer care. We also offer free ‘English for Employability’ webinars for our SELT customers post-test. TCL runs workshops and training events for teachers, so that they can learn about and/or engage with our products. We also collaborate with government agencies providing teacher training and/or seeking to promote 21st century skills in their curricula.

TCL is involved in a continuous dialogue with its examiners and customers, who provide feedback from the delivery of assessments. Examiners undertake standardisation training regularly, which allows for such feedback to be incorporated into our offer where appropriate.

TCL makes all suppliers, staff and contractors aware of relevant policies and procedures in place, (including on Modern Slavery, Whistleblowing, Reporting Malpractice, Conflicts of Interest and Safeguarding and Child Protection) and seeks to ensure that these policies are followed. TCL approached a sample of suppliers in the current year to confirm their compliance with the Modern Slavery Act 2015 and has instigated a new supplier contract management system, which includes a database of all existing suppliers and contracts.

Finally, at the heart of our provision is our recognised status with the UK regulatory bodies, Ofqual in England, Qualifications Wales and CCEA Regulation in Northern Ireland. We must at all times maintain compliance with their Conditions of Recognition in order to offer regulated qualifications, whilst also demonstrating continual improvement. Throughout the pandemic we continued to work closely with each regulator to explore and agree changes to our qualifications’ assessments and the regulatory framework that supports our provision, in order to mitigate the risk of learners being unable to achieve their qualification and progress.

Trinity College London | Company No 2683033 | Charity No 1014792

The impact of the charity’s operations on the community and the environment

TCL’s broad product offer allows us to interact and help learners and communities across different educational streams. With TCL’s approach of focusing on supporting the development of communicative and transferable English language skills, our English language qualifications help communities integrate with wider society. For example, our Skills for Life qualifications are designed to aid progression and access into mainstream education and employment paths where English language skills are a requirement. Our Secure English Language Tests (SELTs), taken in the UK, are approved for applications to UKVI for visas, UK visa renewal, British Citizenship, Settlement and Leave to Remain.

TCL is committed in its strategic plan to promoting sustainability by reducing the impact of its activities on the environment. We continue to increase the size and reach of our international panel of local examiners and develop and promote the use of digital products as an alternative to in-person exams. Both initiatives are reducing our carbon footprint significantly. Other initiatives being pursued include the adoption of hybrid working for staff (a combination of home-based and office working) that reduces staff travel, the promotion of paperless working where possible and a reduction in the use of plastics and water. Social value is embedded within TCLs SELT’s offer with ‘Energy Champions’ at each test point and a focus on using SMEs, where possible.

Maintaining a reputation for high standards of business conduct

As we strive to achieve our strategic goals, we lead by example by demonstrating in all areas the same values that we wish to see in the people we work with and those we aim to influence.

For example, our values and the behaviours we want to see, including our commitment to safeguarding and EDI, are embedded in our staff recruitment, induction and appraisal procedures. We also have policies and procedures on Anti-Bribery and Corruption and Modern Slavery, which are shared with our suppliers and incorporated into our contracts where appropriate. TCL provides regular training to our staff in these areas.

The need to act fairly between members of the charity

This criterion has little or no application to TCL because the Trustees are the sole members of the charitable company, and the charitable company is not run in the interests of the members but in performance of the charitable company’s objectives.

By order of the Council

Mark Damazer, CBE Chairman

20[th] December 2023

Trinity College London | Company No 2683033 | Charity No 1014792

Statement of responsibilities of the Trustees of Trinity College London in respect of the Trustees’ annual report and the financial statements

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law they have are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group’s excess of income over expenditure for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to:

w select suitable accounting policies and then apply them consistently;

w make judgements and estimates that are reasonable and prudent;
w state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
w assess the group’s and the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
w use the going concern basis of accounting unless they either intend to liquidate the group or the charitable company or to cease operations or have no realistic alternative but to do so.

The Trustees are responsible for keeping adequate and proper accounting records that are sufficient to show and explain the parent charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DISCLOSURE OF INFORMATION TO AUDITOR

The Trustees who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the charitable company’s auditor is unaware and each Trustee has taken all the steps that he/she ought to have taken to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

By order of the Council

Mark Damazer, CBE Chairman

20[th] December 2023

Trinity College London | Company No 2683033 | Charity No 1014792

Independent Auditor’s Report to the Members of Trinity College London

OPINION

We have audited the financial statements of Trinity College London (“the charitable company”) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities; consolidated and company balance sheets, consolidated cash flow statement and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

w give a true and fair view of the state of the Group's and Charitable company’s affairs as at 31 March 2023 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended;
w have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and
w have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

GOING CONCERN

The Trustees have approved the financial statements on the going concern basis as they do not intend to liquidate the group or charitable company or to cease its operations, and as they have concluded that the group and charitable company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the trustees’ conclusions, we considered the inherent risks to the group’s business model and analysed how those risks might affect the group and charitable company’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

w we consider that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; and
w we have not identified and concur with the trustees’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable company’s ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the group and charitable company will continue in operation.

Trinity College London | Company No 2683033 | Charity No 1014792

FRAUD AND BREACHES OF LAWS AND REGULATIONS — ABILITY TO DETECT

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”), we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

w Enquiring of management and inspection of policy documentation as to the group and charitable company’s high-level policies and procedures to prevent and detect fraud.
w Reading minutes for the Council, Audit Committee and Remuneration Committee meetings.
w Using analytical procedures to identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that examination and publication income is recorded in the incorrect accounting period, and the risk that management may be in a position to make inappropriate accounting entries.

We did not identify any additional fraud risks.

We performed procedures including:

w Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included revenue or cash journals posted to unusual account combinations.
w Agreeing a sample of income transactions recorded and cash receipts around the year end to supporting documentation.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with management (as required by auditing standards). We discussed with management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

The group and charitable company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies’ legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Whilst the group and charitable company are subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.

Trinity College London | Company No 2683033 | Charity No 1014792

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

TRUSTEES’ REPORT

The Trustees are responsible for the other information, which comprises of the Report of the Council Members and Strategic Report. Our opinion on the financial statements does not cover the Trustees' report and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the trustees’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

w we have not identified material misstatements in the trustees’ report;
w in our opinion the information given in the Report of the Council Members and Strategic Report for the financial year, is consistent with the financial statements; and
w in our opinion that report has been prepared in accordance with the Companies Act 2006.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

Under the Companies Act 2006 we are required to report to you if, in our opinion:

w the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or
w the charitable company financial statements are not in agreement with the accounting records and returns; or
w certain disclosures of trustees’ remuneration specified by law are not made; or
w we have not received all the information and explanations we require for our audit; We have nothing to report in these respects.

TRUSTEES’ RESPONSIBILITIES

As explained more fully in their statement set out on page 17, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the group and charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the group or charitable company or to cease operations, or have no realistic alternative but to do so.

Trinity College London | Company No 2683033 | Charity No 1014792

AUDITOR’S RESPONSIBILITIES

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

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/ auditorsresponsibilities.

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES

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

Jessica Hargreaves (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

15 Canada Square, London E14 5GL 22 December 2023

Trinity College London | Company No 2683033 | Charity No 1014792

Consolidated Statement of Financial Activities for the year ended 31 March 2023 (including income and expenditure account)

Income Note	Unrestricted General Funds 2023 £’000	Restricted Funds 2023 £’000	Total Funds 2023 £’000	Total Funds 2022 £’000
Income from Charitable activities Examination fees Publication income Other income Investment income	41,173 1,989 253 2	— — — —	41,173 1,989 253 2	38,654
				1,889
				196
				5
Total income 2	43,417	—	43,417	40,744
Expenditure
Expenditure on Charitable activities Provision of examinations & training 3 Production of Publications 3 Donations 3,4	(43,736) (900) (500)	(6) - -	(43,742) (900) (500)	(39,018)
				(1,120)
				(1,000)
Total expenditure	(45,136)	(6)	(45,142)	(41,138)
Net income/(expenditure) 8 Transfer to reserves of gains/ (losses) on foreign exchange hedging contracts	(1,719) 881	(6) -	(1,725) 881	(394)
				(309)
Net movement in funds	(838)	(6)	(844)	(703)
Reconciliation of funds
Fund balances as at 1 April 2022 24	12,757	72	12,829	13,532
Fund balances as at 31st March 2023 24	11,919	66	11,985	12,829

There were no gains or losses other than those reported above. – The notes on pages 26 44 form part of these financial statements.

Trinity College London | Company No 2683033 | Charity No 1014792

Consolidated and Company Balance Sheets as at 31 March 2023

Note	Consolidated 2023 £’000	Consolidated 2022 £’000	Company 2023 £’000	Company 2022 £’000
Fixed assets Intangible assets 9 Tangible assets 10 Investments 11	3,844 4,667 -	3,226 3,163 -	3,616 4,632 3,423	2,998
				3,089
				3,423
	8,511	6,389	11,671	9,510
Current assets
Stocks 12 Debtors 13 Cash at bank and in hand 14	553 6,711 8,093	472 5,823 11,586	81 7,669 6,848	51
				8,636
				9,127
	15,357	17,881	14,598	17,814
Creditors: Amounts falling due within one year 15	(9,993)	(9,585)	(10,082)	(9,724)
Net current assets	5,364	8,296	4,516	8,090
Total assets less current liabilities	13,875	14,685	16,187	17,600
Creditors: Amounts falling due after one year 16	— (1,890)	(4) (1,852)	— (1,722)	(4)
Provisions 17				(1,852)
Net assets	11,985	12,829	14,465	15,744
Funds
Unrestricted general funds 24 Restricted funds 24 Foreign exchange hedging reserves	11,158 66 761	12,877 72 (120)	13,638 66 761	15,792
				72
				(120)
Total Funds	11,985	12,829	14,465	15,744

The Council have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011.

The financial statements were approved by the Council on 20[th] December 2023 and signed on its behalf by:

Mark Damazer, CBE Chairman

Pete Mobbs

Chief Financial Officer

– The notes on pages 26 44 form part of these financial statements.

Trinity College London | Company No 2683033 | Charity No 1014792

Consolidated Cash Flow Statement for the year ended 31 March 2023 Note 2023 £’000 2023 £’000 2022 £’000 2022 £’000	Consolidated Cash Flow Statement for the year ended 31 March 2023 Note 2023 £’000 2023 £’000 2022 £’000 2022 £’000	Consolidated Cash Flow Statement for the year ended 31 March 2023 Note 2023 £’000 2023 £’000 2022 £’000 2022 £’000	Consolidated Cash Flow Statement for the year ended 31 March 2023 Note 2023 £’000 2023 £’000 2022 £’000 2022 £’000	Consolidated Cash Flow Statement for the year ended 31 March 2023 Note 2023 £’000 2023 £’000 2022 £’000 2022 £’000
Cash provided by operating activities 18 Investing activities Interest Received Purchase of tangible assets (net) - Others Purchase of intangible assets (net) - Others	2 (2,816) (877)	198	5 (2,120) (1,138)	1,730
Cash used in investing activities		(3,691)		(3,253)
Financing activities Increase in share capital Donations - from Restricted Funds Cash provided by financing activities Increase/(decrease) in cash and cash equivalents in the year Cash acquired with subsidiary	— —	— (3,493) —	— —

				—
				(1,523)
				—
Cash and cash equivalents at the beginning of the year		11,586		13,109
Total cash and cash equivalents at the end of the year		8,093		11,586

ANALYSIS OF CHANGES IN NET DEBT

Neither TCL nor its subsidiaries have obtained any borrowings or utilised any bank over-draft facilities during the financial year 2022–23.

– The notes on pages 25 44 form part of these financial statements.

Trinity College London | Company No 2683033 | Charity No 1014792

Notes to the Financial Statements for the year ended 31 March 2023

1 PRINCIPAL ACCOUNTING POLICIES

The financial statements relate to the year ended 31 March 2023.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements:

1.1A BASIS OF PREPARATION AND CONSOLIDATION

The financial statements have been prepared in accordance with Financial Reporting Standard (FRS 102) applicable in UK and Republic of Ireland and in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (Charities SORP FRS 102, effective 1 January 2015).

Trinity College London (“TCL”) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The consolidated statement of financial activities and balance sheet include the financial results of the Charity (Trinity College London) and its trading subsidiaries, details of which are included in note 11 to these financial statements.

A separate Statement of Financial Activities, or income and expenditure account, has not been presented for the Charity in accordance with Section 408 of the Companies Act 2006. The Charity adopts the FRS 102 exemption from preparing a standalone cash flow statement for the Charity.

1.1B GOING CONCERN

The financial statements are drawn up on a going concern basis, which assumes the Group will continue in operational existence for the at least 12 months from the date of approval of these financial statements. The Charity’s activities, together with the factors likely to affect its future development, performance and position are set out in the Council Members’ Report on pages – 3 18. The financial position of the Charity, its cash flows and liquidity position are described in the – primary financial statements on pages 23 25. In addition, notes 1 to 26 in the financial statements include: the Charity’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities and its exposure to credit risk and liquidity risk.

The Charity has contracts with a number of customers and suppliers across different geographic regions and industries. In order to enhance the customer experience and improve internal efficiencies, TCL continues to invest in improving the administration and operational system as well as enhancing the digital product suite. TCL has no debt and funds all investments through retained profits and cash balances. Consolidated cash balances as at 31 March 2023 were £8,093k (2022: £11,586) and the UK companies continue to be profitable.

As can be observed through the previous and current financial year, the cost base can be proactively adjusted and restricted to ensure appropriate returns. Therefore, as a consequence, the Council members believe that the Charity is well placed to manage its financial and operational risks successfully despite the continuing uncertain economic outlook.

Trinity College London | Company No 2683033 | Charity No 1014792

With an existing digital offer now in place, and more internationally based examiners, Trinity’s offer is now more resilient and diverse than when the Coronavirus pandemic started. Due to this broadened offer and leaner cost base, it is expected that Trinity will return to surplus in 2023/24 despite the ongoing effects from the pandemic and continue to grow in subsequent financial years. In our consideration for the going concern of the organisation we have considered the longterm effects of Covid and built those into our projections going forward.

The Council members therefore have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for at least 12 months from the date of the signing of the accounts. No material uncertainties that cast significant doubt about the ability of the group to continue as a going concern have been identified by the Council members. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.2 FUND ACCOUNTING

The general fund is an unrestricted fund which is available for use at the discretion of the Council in furtherance of the general objectives of the TCL. Designated funds, when arising, are unrestricted funds which are available for use for specific purposes identified by the Council.

Restricted funds are available for use only for the specific purpose specified by the donor or grantor. These include funds to establish a bursary for students of the Communicative Arts.

1.3 INCOME

Income is included in the statement of financial activities (SOFA) when TCL is legally entitled to the income, it is probable that the income will be received, and the amount can be quantified with reasonable accuracy.

Examination and training income represents fees earned in respect of examinations taken and training provided during the period and are recognised as arising when the examination or training has taken place. Income excludes invoices raised at the balance sheet date in respect of examinations to be taken after the year end. Such fees are shown under creditors in the balance sheet as deferred income.

Sales of publications are recognised at the date the sale arises and is invoiced.

1.4 EXPENDITURE AND SUPPORT COSTS Expenditure is accounted for on an accruals basis and recognised once there is a legal or constructive obligation to make a payment to a third party, probable that settlement will be required, and the amount of the obligation can be reliably measured. The irrecoverable element of VAT is included with the item of expense to which it relates. Accruals are raised at the year-end, subject to a de minimis of £1,000 per invoice.

Costs which are directly attributable to charitable activities are recorded against those activities. Costs which are not directly attributable to charitable activities, and which are not governance costs are termed support costs. Support costs are allocated on a basis consistent with the use of service departmental resources and apportioned to the respective charitable activity.

1.5 GOVERNANCE

Governance costs include those costs associated with meeting the constitutional and statutory requirements of TCL and include audit fees and costs linked to the strategic management of TCL. Governance costs are allocated to charitable activities based on the activities’ total direct costs.

Trinity College London | Company No 2683033 | Charity No 1014792

1.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are stated at historical cost, less accumulated depreciation and any recognised impairment loss.

Depreciation is provided evenly on cost to write off fixed assets (over £2,000) to their estimated residual values over their expected useful lives. Where there is evidence of impairment, fixed assets are written down to recoverable amount. The principal annual rates are:

Furniture, fittings & equipment

Computer equipment & Software

4 years 3 years

Computerised operational and administration 7 years (from initial release date) system

Leasehold improvements over the primary lease term

Computer software has been categorised as tangible to the extent that it is so integral to other tangible assets that separating the software is not possible.

Where a tangible asset has been acquired to deliver a specific and designated project which may have a term less than the above period, the asset is depreciated over the shorter of the life of the project and the useful life of the asset.

Disposal of assets, if any, are authorised by the Chief Financial Officer.

1.7 INTANGIBLE ASSETS

Intangible fixed assets are stated at historical cost and amortisation is provided on all intangible fixed assets on a straight-line basis.

Development costs are amortised over the anticipated life of the first syllabus produced, which is expected to be 5 years.

Goodwill, being the excess of the purchase price of acquisitions over the fair value of the net assets acquired, is capitalised in accordance with FRS102 and amortised over its estimated useful economic life. Amortisation is restricted to the life of any services or contractual terms where these are related to the goodwill arising. Goodwill is only recognised in the Group.

1.8 STOCKS

Stocks of publications and work in progress are stated at the lower of cost, using weighted average cost method, and net realisable value.

1.9 FOREIGN CURRENCIES

Transactions in foreign currency are translated at the exchange rate ruling at the date of the transaction. Foreign currency gains and losses are recognised in the SOFA.

Examination fees earned in foreign currency are translated at the prevailing exchange rate at the date of the invoice raised. TCL recognises its foreign currency transactions and derivatives in accordance with FRS 102.

Furthermore, TCL enters into forward currency exchange contracts to hedge its exposure to foreign exchange fluctuations on future income. The realised gains and losses are accounted in the SOFA and unrealised gains and losses are accounted in the foreign exchange reserves.

Trinity College London | Company No 2683033 | Charity No 1014792

1.10 TAXATION

TCL is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, TCL is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that all such income or gains are applied exclusively for charitable purposes.

1.11 PENSION SCHEME

TCL provides defined contributions towards individual employees’ Personal Pension Plans, which are charged to the SOFA as incurred.

1.12 LEASED ASSETS

Rentals payable under operating leases are charged to the SOFA on a straight-line basis over the life of the lease.

1.13 INVESTMENTS

Investments in shares of group undertakings are recorded at cost less provision for permanent diminution in value in the individual balance sheet of TCL.

1.14 DEBTORS AND INCOMPLETE EXAMINATIONS

a) Recoverability of debts

Outstanding debts are reviewed for recoverability according to age and specific circumstances. Provision is made to the extent that debts are deemed to be irrecoverable.

b) Income

An invoice for the examination fee is raised from the TOL system when the examination booking date is confirmed. When this is in advance of the examination date, the examination fee is held in the balance sheet as deferred income. Examination fees are transferred to SOFA at the date the examination arises.

1.15 JUDGEMENTS AND ESTIMATES

In determining the carrying amounts of certain assets and liabilities TCL makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. TCL’s estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. Further information about key assumptions concerning the future is another key source of estimation.

GOODWILL IMPAIRMENT

An annual assessment is made as to whether the current carrying value of goodwill is impaired.

PROVISIONS FOR LIABILITIES AND CHARGES

TCL has recognised provisions for an amount of £1,833,798 (2022: £1,851,747) related to legal obligations and other exposures. The provisions represent the best estimate of the risks, but the final amount required is subject to uncertainty.

Trinity College London | Company No 2683033 | Charity No 1014792

CONTINGENT LIABILITIES

Contingent liabilities are possible obligations whose existence will be confirmed by uncertain future events that are not wholly within the control of the TCL. Contingent liabilities also include obligations that are not recognised because their amount cannot be measured reliably or because settlement is not probable. A contingent liability is not recognised in the statement of financial position. However, unless the possibility of an outflow of economic resources is remote, a contingent liability is disclosed in the notes.

No contingent liabilities existed as at 31 March 2023.

2 ANALYSIS OF INCOME

2 ANALYSIS OF INCOME
2023 £’000	2022 £’000
United Kingdom 25,139 Rest of Europe, Middle East & Africa 8,973 Rest of World 9,303	24,394
	8,422
	7,923
43,415 Interest receivable 2	40,739
	5
Total income 43,417	40,744

3 ANALYSIS OF CHARITABLE EXPENDITURE

2023 Activities Undertaken Directly £’000	2023 Support Costs £’000	2023 Governance Costs £’000	2023 Total £’000	2022 Total £’000
Provision of examinations 31,902 Production of publications 897 Donations 500	11,717 (4) -	123 7 -	43,742 900 500	39,018
				1,120
				1,000
Total costs expended 33,299	11,713	130	45,142	41,138

The allocation of the costs of support activities to charitable activities and governance is set out in note 5 and 6 below.

4 DONATIONS

4 DONATIONS
	2023	2022
	£’000	£’000
Donations payable to TL	500	1,000
	500	1,000

Trinity College London | Company No 2683033 | Charity No 1014792

5 GOVERNANCE COSTS

5 GOVERNANCE COSTS
2023 £’000	2022 £’000
Statutory Audit fees 87 Internal Audit fees 43	57
	133
130	190

Fees for tax advisory services for 2022/23 were £19,480 (2022: £62,031). All fees quoted are exclusive of VAT.

6 ALLOCATION OF SUPPORT COSTS

6 ALLOCATION OF SUPPORT COSTS
2023 £’000	2022 £’000
Executive Office 2,013 HR & Corporate Services 3,431 IT 2,731 Delivery 86 Finance 2,705 Communications 751 Publications (4)	1,317
	3,484
	2,323
	72
	791
	653
	488
11,713	9,128

The basis of cost allocation used is by departmental activity.

7 STAFF COSTS

The average number of employees calculated on a full time equivalent basis was:

						2023				2022
						No				No
Employees						370				325

The staff costs in respect of the above employees were:

The staff costs in respect of the above employees were:
2023 £’000	2022 £’000
Wages and salaries 14,816 Social security costs 1,595 Pension contributions 1,019	13,985
	1,275
	992
Total costs expended 17,430	16,252

Trinity College London | Company No 2683033 | Charity No 1014792

The number of employees whose emoluments exceeded £60,000 were as follows:

The number of employees whose emoluments exceeded £60,000 were as follows:
2023 £’000	2022 £’000
60,001 – 70,000 18 70,001 – 80,000 10 80,001 – 90,000 8 90,001 – 100,000 4 100,001 – 110,000 5 110,001 – 120,000 6 120,001 – 130,000 1 130,001 – 140,000 3 140,001 – 150,000 1 150,001 – 160,000 1 160,001 – 170,000 — 170,001 – 180,000 1 190,001 – 200,000 1 230,001 – 240,000 1 240,001 – 250,000 — 310,001 – 320,000 1 360,001 – 370,000 —	10
	13
	3
	3
	5
	3
	3
	2
	—
	1
	1
	2
	—
	-
	1
	—
	1
61	48

TCL made contributions of £461,708 (2022: £388,184) to the pension plans of 61 (2022: 48) employees during the period whose emoluments exceeded £60,000. The disclosure above has been computed aggregating the emoluments of all employees for the year ended 31 March 2023.

Redundancy & termination payments made to staff and charged to Statement of Financial Activities during the year totalled £578,740 (2022: £251,928).

Total employee benefits of the key management personnel of TCL and the group as detailed under the Reference and Administrative details were £1,916,009 (2022: £1,130,211).

None of the Council Members, who are regarded as Directors, received any remuneration for services as a Director during the year. No expenses were reimbursed to Council Members (2022: £0).

Trinity College London | Company No 2683033 | Charity No 1014792

8 NET INCOME

Net income is stated after charging/(crediting):

8 NET INCOME Net income is stated after charging/(crediting):
2023 £’000	2022 £’000
Depreciation 1,311 Amortisation of development costs & goodwill 261 Lease of land and buildings (including service charge) 3,270 Audit of these financial statements 87 Amounts received by auditor and their associates in respect of: Other services relating to taxation — advisory basis 39 Foreign exchange losses/(gains) (61)	1,110
	197
	3,405
	57
	38
	(143)

9A INTANGIBLE FIXED ASSETS (GROUP)

Development Costs £’000	Goodwill £’000	Total costs £’000
Cost As at 1 April 2022 5,125 Additions 1,413 Disposals/write-offs (534)	1,880 — —	7,005
		1,413
		(534)
At 31 March 2023 6,004	1,880	7,884
Amortisation As at 1 April 2022 1,889 Charge for the year 261 Disposals —	1,880 — —	3,779
		261
		—
At 31 March 2023 2,160	1,880	4,040
Net book value At 31 March 2023 3,844	—	3,844
At 31 March 2022 3,226	—	3,226

Trinity College London | Company No 2683033 | Charity No 1014792

9B INTANGIBLE FIXED ASSETS (COMPANY)

																				Development costs
																				£’000
Cost As at 1 April 2022																				4,071
Additions																				1,616
Disposals/write-offs																				(535)
At 31 March 2023																				5,152
Amortisation As at 1 April 2022																				1,073
Charge for the year																				463
Disposals																				-
At 31 March 2023																				1,536
Net book value At 31 March 2023																				3,616
At 31 March 2022																				2,998

Assets to the value of £427,000, in both the company and the group, were written-off during the year related to a project that was no longer considered viable.

10A TANGIBLE FIXED ASSETS (GROUP)

Fixtures & Fittings £’000	Other Equipment £’000	Computer Equipment £’000	Computer System £’000	Leasehold Property & Improv’s £’000	2022 Total £’000
Cost As at 1 April 2022 582 Additions 3 Disposals/write- offs —	281 13 —	1,809 12 —	13,587 2,895 (89)	995 (19) —	17,254
					2,904
					(89)
At 31 March 2023 585	294	1,821	16,393	976	20,069
Depreciation As at 1 April 2022 544 Charge for the year 8 Disposals —	281 — —	1,740 44 —	10,645 1,223 —	881 36 —	14,091
					1,311
					—
At 31 March 2023 552	281	1,784	11,868	917	15,402
Net Book Value At 31 March 2023 33	13	37	4,525	59	4,667
At 31 March 2022 38	—	69	2,942	114	3,163

Trinity College London | Company No 2683033 | Charity No 1014792

10B TANGIBLE FIXED ASSETS (COMPANY)

Fixtures & Fittings £’000	Other Equipment £’000	Computer Equipment £’000	Computer System £’000	Leasehold Property & Improv’s £’000	2022 Total £’000
Cost As at 1 April 2022 465 Additions — Disposals/write- offs	274 13 —	1,691 — —	13,586 2,895 (89)	943 35 —	16,959
					2,943
					(89)
At 31 March 2023 465	287	1,691	16,392	978	19,813
Depreciation As at 1 April 2022 450 Charge for the year 3 Disposals —	273 — —	1,625 42 —	10,648 1,223 —	874 43	13,870
					1,311
					—
At 31 March 2023 453	273	1,667	11,871	917	15,181
Net Book Value At 31 March 2023 12	14	24	4,521	61	4,632
At 31 March 2022 15	1	66	2,938	69	3,089

Assets to the value of £89,000, in both the company and the group, were written-off during the year related to a project that was no longer considered viable.

11 INVESTMENTS

The movements in investments during the year were as follows:

														Company
														investments in
														subsidiary
														undertakings
														£’000
Cost As at 1 April 2022														3,423
Additions														—
At 31 March 2023														3,423

Trinity College London | Company No 2683033 | Charity No 1014792

At 31 March 2023, investment in subsidiary undertakings comprised:

Principal Activity	Country of Incorporation	Beneficial interest
Trinity College London India Private Limited Examination services Trinity London (Thailand) Limited Dormant Trinity College London Enterprises Limited Non-trading Trinity College London SELT Limited Examination services Trinity College London Press Limited Music publication Trinity College London (Italy) S.R.L. Examination services Trinity College London (HK) Limited Examination services Fundación Trinity College London Espana Dormant Trinity College London Spain SLU Examination services Trinity College London (New Zealand) Limited Examination services Shengyi Culture Consulting (Beijing) Co Limited Examination services	India Thailand United Kingdom United Kingdom United Kingdom Italy Hong Kong Spain Spain New Zealand China	100%
		49%
		100%
		100%
		100%
		100%
		100%
		100%
		100%
		100%
		100%

Trinity College London India Private Limited

All shares of Trinity College London India Private Limited are held by Trinity College London and the CEO as a nominee shareholder.

Trinity London (Thailand) Limited

TCL owns 49% of the issued share capital of Trinity London (Thailand) Ltd, a company incorporated in Thailand. The remaining shares are held for the benefit of TCL in a nominee account.

Trinity College London Enterprises Limited

Trinity College London Enterprises Limited is a wholly owned subsidiary of TCL incorporated in September 2012.

Trinity College London SELT Limited

Trinity College London SELT Limited is a wholly owned subsidiary of TCL that was acquired in February 2015.

Trinity College London | Company No 2683033 | Charity No 1014792

Trinity College London Press Limited

Trinity College London Press Limited is a wholly owned subsidiary of TCL that began trading on 1 April 2016.

Trinity College London (Italy) S.R.L.

Trinity College London (Italy) S.R.L. is a wholly owned subsidiary of TCL that was acquired on 16 October 2017.

Trinity College London (HK) Limited

Trinity College London (HK) Limited is a wholly owned subsidiary of TCL that began trading on 29 August 2019.

Fundación Trinity College London Espana

Fundación Trinity College London Espana is a not-for-profit company that was incorporated on 28 February 2020, registered as a Fundación on 28 June 2022, and is beneficially owned by TCL.

Trinity College London Spain SLU

Trinity College London Spain SLU is a company that was incorporated on 7 July 2022 and is beneficially owned by TCL.

Trinity College London (New Zealand) Limited

Trinity College London (New Zealand) Limited is a company that was incorporated on 21 December 2020 and is a wholly owned subsidiary of TCL.

Shengyi Culture Consulting (Beijing) Co Limited

Shengyi Culture Consulting (Beijing) Co Limited is a company that was incorporated on 24 June 2022 and is a wholly owned subsidiary of Trinity College London (HK) Limited.

The net assets of the subsidiary companies at the balance sheet date are:

The net assets of the subsidiary companies at the balance sheet date are:
2023 £’000	2022 £’000
Trinity College London India Private Limited 197 Trinity London (Thailand) Limited — Trinity College London Enterprises Limited — Trinity College London SELT Limited 82 Trinity College London Press Limited 4 Trinity College London (Italy) S.R.L. 604 Trinity College London (HK) Limited 7 Fundación Trinity College London Espana 25 Trinity College London Spain SLU 5 Trinity College London (New Zealand) Limited 3 Shengyi Culture Consulting (Beijing) Co Limited 6	197
	—
	—
	82
	4
	604
	7
	25
	5
	3
	—

These are subsidiaries of the company under the definition of FRS 102.

Trinity College London | Company No 2683033 | Charity No 1014792

12 STOCK

12 STOCK
Group 2023 £’000	Group 2022 £’000	Company 2023 £’000	Company 2022 £’000
Publications and material stock 553	472	81	51
13 DEBTORS Group 2023 £’000	Group 2022 £’000	Company 2023 £’000	Company 2022 £’000
Trade debtors 2,356 Value added taxation 48 Due from related party - Funds held at third party 1,244 Other debtors 765 Gain on foreign exchange contracts 761 Prepayment and deferred expenses 1,544 Accrued income (7)	2,672 54 - 735 482 (120) 1,745 255	2,033 48 1,826 1,244 246 761 1,519 (8)	2,439
			54
			3,438
			757
			144
			(120)
			1,689
			235
6,711	5,823	7,669	8,636

Due from related party for TCL includes a loan balance of £1,507,902 (2022: £2,000,000) from a subsidiary that is receivable after more than one year. The reduction in the loan balance reflects the impact of over-paid gift-aid that has been offset against the long-term intercompany loan receivable.

14 CASH AT BANK AND IN HAND

14 CASH AT BANK AND IN HAND
Group 2023 £’000	Group 2022 £’000	Company 2023 £’000	Company 2022 £’000
Bank balances held in United Kingdom 5,045 Bank balances held overseas 3,048	9,841 1,745	4,159 2,689	7,696
			1,431
8,093	11,586	6,848	9,127

Trinity College London | Company No 2683033 | Charity No 1014792

15 CREDITORS-AMOUNTS FALLING DUE WITHIN ONE YEAR

Group 2023 £’000	Group 2022 £’000	Company 2023 £’000	Company 2022 £’000
Trade creditors 1,440 Taxation and social security 457 Related parties — Other creditors 317 Accrued expenses 1,576 Deferred income 6,203	1,397 446 — 216 2,179 5,347	1,233 374 857 (30) 1,445 6,203	1,444
			369
			703
			1
			1,860
			5,347
9,993	9,585	10,082	9,724

All deferred income relates to examination invoices raised in advance of the examination delivery date. In accordance with TCL’s income recognition policy, all amounts deferred in 2021/22 in respect of examinations taken place in 2022/23 have now been recognised in the Statement of Financial Activities.

16 CREDITORS-AMOUNTS FALLING DUE AFTER ONE YEAR

	Group	Group	Company	Company
	2023	2022	2023	2022
	£’000	£’000	£’000	£’000
Deferred expenses: rent free period	—	4	-	4
	—	4	-	4

A rent-free period was negotiated at the beginning of the new leases for office spaces in Blue Fin and Croydon. The aggregate sum amount saved through this rent-free period was £42,080 which is being amortised over the term of the leases.

17 PROVISIONS

17 PROVISIONS
Group Balance 1 April 2022 £’000	Utilised £’000	Additions £’000	Balance 31 March 2023 £’000
Dilapidation provisions 571 Restructuring provisions 412 Other provisions 869	- (412) -	1 - 449	572
			-
			1,318
1,852	(412)	450	1,890

Trinity College London | Company No 2683033 | Charity No 1014792

Company Balance 1 April 2022 £’000	Utilised £’000	Additions £’000	Balance 31 March 2023 £’000
Dilapidation provisions 571 Restructuring provisions 412 Other provisions 869	— (412) —	1 — 281	572
			—
			1,150
1,852	(412)	282	1,722

The dilapidation provision relates to the estimated costs that will be incurred to restore the leased assets to their original condition at the end of the lease.

The restructuring provision relates to various projects which will enhance the operational excellence and product innovation offered by the business.

The other provision relates to on-going organisational review.

The amounts provided represent the best estimate of the expenditure which may arise.

18 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2023 £’000	2022 £’000
Net income (1,725) Interest receivable (2) Depreciation of tangible assets 1,311 Amortisation of development costs & goodwill 261 Foreign exchange hedging 881 (Increase)/decrease in stocks (81) (Increase)/decrease in debtors (889) (Increase)/decrease in creditors 442	(394)
	(5)
	1,110
	(197)
	(309)
	(33)
	(87)
	1,645
Net cash flow from operating activities 198	1,730

19 ANALYSIS OF CHANGES IN GROUP CASH AND CASH EQUIVALENT BALANCES

2023 £’000	2022 £’000
Net bank and cash balances at beginning of year 11,586 Net decrease in bank and cash balances (3,493)	13,109
	(1,523)
Net bank and cash balance at the end of the year 8,093	11,586

Trinity College London | Company No 2683033 | Charity No 1014792

20 FINANCIAL COMMITMENTS

The annual commitment and total future minimum payments under an operating lease is analysed according to the period in which the lease expires as follows:

Land & Buildings 2023 £’000 2022 £’000	Land & Buildings 2023 £’000 2022 £’000	2023 £’000	Other 2022 £’000	Total future minimum lease Payments 2023 £’000 2022 £’000	Total future minimum lease Payments 2023 £’000 2022 £’000
Commitments < 1 year 1,646 Commitments 1–5 years 421 Commitments > 5 years —	1,770 1,312 —	6 16 —	5 2 —	1,652 437 —	1,775
					1,314
					—
2,067	3,082	22	7	2,089	3,089

Lease payments in the year amounted to £2,767,242 (2022: £2,843,566).

21 FINANCIAL INSTRUMENTS

The group receives a large percentage of its revenue in foreign currencies and covers this risk by using forward currency contracts.

As at the year end, the group had commitments outstanding in respect of forward foreign exchange contracts (primarily Sterling: Euros) amounting to £17,375,786 (2022: £9,257,708).

£880,854 was the movement in the fair value of fixed currency contracts (2022: £308,695).

These contracts have settlement dates beyond the year end. Currency favourable reserves of £761,088 (2022: £119,766 adverse) were recognised in the Statement of Financial Activities following the application of fair valuation at the year end. Of this sum, there is a favourable reserve £378,751 relating to contracts crystallising after more than one year (2022: £nil).

22 GUARANTEE BY COUNCIL MEMBERS In the event of a winding up or dissolution of the charitable company, under the terms of the guarantee, the liability of each Council Member shall be limited to £1.

Trinity College London | Company No 2683033 | Charity No 1014792

23 RELATED PARTY TRANSACTIONS

During the period the following payments were paid to Members of the TCL Council (being the Directors of the Group).

Directors of the Group).	Directors of the Group).
		2023 £ 2022 £
Reimbursement of expenses to 0 (2022: 0) Members			— —
TCL conducted other transactions with its subsidiaries as follows: 2023 £’000 Service Fees 2022 £’000 Service Fees		2023 £’000 Outstanding Balance	2023 £’000 Outstanding Balance
Trinity College London SELT 1,152 Trinity London (Thailand) Limited — Trinity College London Press (38) Trinity College London Enterprises — Trinity College London India Pvt Ltd 800 Trinity College London (Italy) S.R.L. 1,337 Trinity College London (HK) Limited 31 Fundación Trinity College London Espana — Trinity College London Spain SLU 246 Trinity College London (New Zealand) Limited 55	1,383 — (37) — 631 1,218 130 — 48 80	(157) — 1,781 — (114) (559) 29 25 (23) (4)	(104)
			—
			3,399
			—
			(90)
			(488)
			3
			25
			9
			(20)

These amounts receivable by TCL relate to the provision of examination services and were made at arm’s length. The subsidiaries will continue to provide the services for the foreseeable future.

At the year-end, the net balance due to TCL from the subsidiaries totalled £968,521 (2022: £2,733,657).

During the year, the Council resolved to pay donations totalling £500,000 (2022: £1,000,000) to TL. A total amount of £500,000 cash was paid during the year. At 31 March 2023 £nil (2022: £nil) remained outstanding.

Trinity College London | Company No 2683033 | Charity No 1014792

24A GROUP FUNDS — MOVEMENT IN THE YEAR

24A GROUP FUNDS — MOVEMENT IN	THE YEAR
Balance 1 April 2022 £’000	Income 2023 £’000	Expense 2023 £’000	Donations/ transfers 2023 £’000	Balance 31 March 2023 £’000
General funds — general funds 12,842 General funds — designated funds 35 Restricted funds 72 Foreign exchange hedging reserve (120)	43,417 - - 881	(44,636) - (6) -	(500) - - -	11,123
				35
				66
				761
12,829	44,298	(44,642)	(500)	11,985
24B GROUP FUNDS — MOVEMENTS IN THE PRIOR YEAR Balance 1 April 2021 £’000 Income 2022 £’000 Expense 2022 £’000			Donations/ transfers 2022 £’000	Balance 31 March 2022 £’000
General funds — general funds 13,262 General funds — designated funds — Restricted funds 81 Foreign exchange hedging reserve 189	40,744 — — (309)	(40,129) — (9) —	(1,035) 35 — —	12,842
				35
				72
				(120)
13,532	40,435	(40,138)	(1,000)	12,829
24C CHARITY FUNDS — MOVEMENTS IN THE YEAR Balance 1 April 2022 £’000 Income 2023 £’000 Expense 2023 £’000			Donations/ transfers 2023 £’000	Balance 31 March 2023 £’000
General funds — general funds 15,757 General funds — designated funds 35 Restricted funds 72 Foreign exchange hedging reserve (120)	41,380 - - 881	(43,034) - (6) -	(500) - - -	13,603
				35
				66
				761
15,744	42,261	(43,040)	(500)	14,465

Trinity College London | Company No 2683033 | Charity No 1014792

24D CHARITY FUNDS — MOVEMENTS IN THE PRIOR YEAR

Balance 1 April 2021 £’000	Income 2022 £’000	Expense 2022 £’000	Donations/ transfers 2022 £’000	Balance 31 March 2022 £’000
General funds — general funds 16,289 General funds — designated funds - Restricted funds 81 Foreign exchange hedging reserve 189	39,725 - - (309)	(39,222) - (9) -	(1,035) 35 - -	15,757
				35
				72
				(120)
16,559	39,416	(39,231)	(1,000)	15,744

25 ANALYSIS OF FUNDS

The group’s net assets belong to the various funds at 31 March 2023 as follows:

Fixed & intangible assets £’000	Current assets £’000	Current liabilities £’000	Long Term liabilities £’000	Net assets £’000
General funds 8,511 Restricted funds — Charles Tyler Smith — Restricted funds — Joy Cicely Wise —	15,291 16 50	(9,993) — —	(1,890) — —	11,919
				16
				50
8,511	15,357	(9,993)	(1,890)	11,985

The Charles Tyler Smith Award is restricted for the purposes of supporting and developing individual staff business qualities.

The Joy Cicely Wise bequest restricts the use of £50,000 to establishing a bursary for students of the Communicative Arts and to promote clarity of speech through drama, oratory, poetry or verse.

26 POST BALANCE SHEET EVENTS

There were no post balance sheet events at the time of signing these accounts.

2023-03-31-accounts

Trinity College London (A company limited by guarantee) Company number 2683033 Charity number 1014792 Report and Financial Statement for the year ended 31 March 2023

Contents

Report of the Council Members for the year ended 31 March 2023

Reference and administrative details

Structure, governance and management

GOVERNING DOCUMENT

ORGANISATION

COUNCIL MEMBERS AND RELATED PARTIES

APPOINTMENT OF COUNCIL MEMBERS AND TERMS OF APPOINTMENT

SUBSIDIARY UNDERTAKINGS

OBJECTIVES AND ACTIVITIES

Strategic Report

ACHIEVEMENTS AND PERFORMANCE

PEOPLE

OPERATIONAL EXCELLENCE

PROTECTING THE CORE

MARKET TRANSFORMATION

PRODUCT INNOVATION

FINANCIAL REVIEW

PUBLIC BENEFIT

RESERVES POLICY

DONATIONS POLICY

PLANS FOR FUTURE PERIODS

People

Operational Excellence

Protecting the Core

Market Transformation

Product Innovation

RISK MANAGEMENT

FOREIGN EXCHANGE RISK

LIQUIDITY RISK

GOING CONCERN

SUSTAINABILITY AND CARBON REPORTING

REPORTING METHODOLOGY

ENERGY EFFICIENCY ACTION TAKEN

COMPLIANCE WITH TRUSTEES’ DUTIES UNDER SECTION 172(2) COMPANIES ACT 2006

The likely consequences of any decision in the long term

The interests of the Charity’s employees

The need to foster the charity’s business relationships with suppliers, customers and others

The impact of the charity’s operations on the community and the environment

Maintaining a reputation for high standards of business conduct

The need to act fairly between members of the charity

Statement of responsibilities of the Trustees of Trinity College London in respect of the Trustees’ annual report and the financial statements

DISCLOSURE OF INFORMATION TO AUDITOR

Independent Auditor’s Report to the Members of Trinity College London

OPINION

BASIS FOR OPINION

GOING CONCERN

FRAUD AND BREACHES OF LAWS AND REGULATIONS — ABILITY TO DETECT

Identifying and responding to risks of material misstatement due to fraud

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

Context of the ability of the audit to detect fraud or breaches of law or regulation

TRUSTEES’ REPORT

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

TRUSTEES’ RESPONSIBILITIES

AUDITOR’S RESPONSIBILITIES

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES

Jessica Hargreaves (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

Consolidated Statement of Financial Activities for the year ended 31 March 2023 (including income and expenditure account)

Consolidated and Company Balance Sheets as at 31 March 2023

Pete Mobbs

ANALYSIS OF CHANGES IN NET DEBT

Notes to the Financial Statements for the year ended 31 March 2023

1 PRINCIPAL ACCOUNTING POLICIES

1.1A BASIS OF PREPARATION AND CONSOLIDATION

1.1B GOING CONCERN

1.2 FUND ACCOUNTING

1.3 INCOME

1.5 GOVERNANCE

1.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

1.7 INTANGIBLE ASSETS

1.8 STOCKS

1.9 FOREIGN CURRENCIES

1.10 TAXATION

1.11 PENSION SCHEME

1.12 LEASED ASSETS

1.13 INVESTMENTS

1.14 DEBTORS AND INCOMPLETE EXAMINATIONS