OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-07-31-accounts

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST (A company limited by guarantee)

CONSOLIDATED REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

Company registered number: 2832875 Charity registered number: 1023384

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

CONTENTS Page
Chair’s report 1
Trustees’ report 2 - 16
Independent Auditors’ report 17 – 19
Consolidated statement of financial activities 20
Consolidated balance sheet 21
Trust balance sheet 22
Consolidated cash flow statement 23
Notes to the consolidated financial statements 24 – 37

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

The trustees of The Common Purpose Charitable Trust (“Common Purpose”, “the Trust” or “CPCT”) are pleased to present their group annual report together with the audited financial statements for the year ended 31 July 2021 which have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 and the Statement of Recommended Practice - Accounting and Reporting by Charities (Second Edition, effective 1 January 2019).

1. Chair’s report

This year will long be remembered for the continued impact of the Coronavirus pandemic and what has become a growing realisation of the importance of solving major issues facing the world, including social inequality, the effects of climate change and the role of the state.

In all these areas Common Purpose has a major role to play. The need for leaders who can operate across boundaries has never been greater. This has been reflected in the significant and continued demand for our programmes over the past year. Our Sky Blue initiative also addresses more directly the need for incisive, cross sector and intergenerational leadership in the area of climate change.

Common Purpose has been impacted by the pandemic in terms of our financial performance, albeit much less than we originally feared. Overall the financial performance for the year has been very credible, especially against the background of the many challenges we faced and the changes in ways of working and delivering our services that we necessarily had to make.

The way in which the organisation and our staff responded to these challenges has demonstrated a continued commitment to our purpose and core values. It also reflects a resilient and agile organisation which was able to quickly adapt. These attributes have helped safeguard the work of the charity and enabled the continued demand from our clients to be met. This year, over 11,000 attended a Common Purpose programme and the total number of alumni exceeded 100,000.

In the early months of 2020 and as this financial year started, our staff quickly transitioned to remote working. This largely continued throughout the year. At the same time, new and innovative ways of delivering our core programmes were designed and implemented. Although the pace of change and degree of innovation were both accelerated as a consequence of the pandemic, we believe we are now well placed for the future in terms of the relevance of our service offerings as well as the different ways in which we are now able to deliver our core training.

The impact we have had is well summarised in the reports from individual companies and business units within the group.

We can look back with pride on what has been achieved, not least due to the support, efforts and commitment of our staff, clients and all the other stakeholders with whom we interact - to all of whom the board offer our grateful thanks.

Finally, one of the reasons why Common Purpose was well placed to deal with the challenges of the pandemic was due to the long-standing efforts and commitment of Richard Charkin, my predecessor as Chair. Richard was Chair of Common Purpose for four years and retired from the board in 2020. Particular thanks are due to Richard.

1

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

2. About Common Purpose

CPCT is the parent company in a group structure. Much of the Trust’s activities are carried out through the subsidiary organisations:

CPCT licenses entities in a number of countries to deliver Common Purpose programmes in their respective countries. Summary information on each organisation and licensees is shown later in this report.

2

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

The Trust was established as a charity in 1989 and is registered with the Charity Commission under the Registered Charity number 1023384.

3. The role of the Trust

The Trust oversees the activities carried out through the subsidiary organisation, and is responsible for:

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

4. Our purpose and activities

The purpose of the charity is to drive social purpose and have a positive and sustained impact on the quality of leadership by:

The vision that shapes our work is to give people from the different sectors and backgrounds and generations the inspiration, skills and connections to become better leaders, both at work and in society. We run local and global programmes in cities across the world for thousands of leaders each year from over 100 countries across six continents.

The strategies we employ to achieve our aims and objectives are to:

5.

Achievements and performance

The objectives for the year were formulated during the COVID-19 crisis. Our plans included:

3

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

COVID-19 continued to affect our delivery model. We moved to fully online delivery in July 2020 with the launch of our new flagship programme, The Common Purpose Programme. We also created online offerings for a number of commercial clients, which were extremely well received. We did not deliver any in-person programmes during the year.

Our clients continued to support the organization throughout the year, and we saw growth in both repeat and new business. We are particularly grateful to our major donors who continued to support us during the pandemic.

The financial results are set out in the review of financial activities, paragraph 8 below. Details of the impact on individual companies of the group are given in the sections immediately following.

Despite the global pandemic, Common Purpose continued to deliver and expand its offering during the year. In all 11,490 people attended a Common Purpose programme during 2020/21, and we achieved a long held target of graduating 100,000 alumni in August 2021. Across our suite of offerings we reached:

Programme No. of participants
Open 852
Student 7,984
Customised 921
Grant-based 1,641

Our move to full online delivery of programmes – itself the result of the pandemic – allowed us a much broader reach globally, and we regularly had people from 114 countries on some of our programmes.

As part of our charitable mission, we offered over 2,000 scholarship or discounted places to participants during the year.

For more details visit our website: www.commonpurpose.org

6. Plans for 2021/22

We will continue to focus on delivering online programmes for the foreseeable future, until such time as client demand and an easing in COVID-19 restrictions around the world allow us to resume in-person delivery. That said, we see a model of blended, hybrid learning emerging as the world starts to return to normal.

The International business unit’s single goal next year is to build scale in the area of environmental leadership. This will include:

Our work on Diaspora will move to a new dedicated function within a different business unit.

American Express did not run a programme with us during the year but continued to support us, for which we are extremely grateful. Our work with MAVA scaled up as we moved to digital delivery. Student programmes have operated very successfully in online with support from our key university clients. Our plans include continuing to grow these programmes globally.

The disruption to our operations as a result of the COVID-19 crisis prompted the trustees to consider whether the group’s corporate structure was fit for purpose in the new business environment. The trustees approved a business re-organization which took place in February 2021, to simplify the structure and reduce the number of corporate entities. Full details of the re-organization are given in paragraph 11 below.

4

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

7. Performance and plans of individual subsidiaries

7.1. Common Purpose UK

The key areas of activity for CPUK during the year were open programmes, Legacy programmes and customised programmes run in the UK.

During the year in response to Covid 19, CPUK transitioned to running the group’s new online programme, The Common Purpose Programme (TCPP) both for emerging leaders and for senior leaders. This proved attractive to both repeat and new buyers. In 2020/21, CPUK ran TCPP in:

The programmes involved 535 participants, in comparison to 624 participants on the in-person programmes in cities in 2019/20. Full scholarship places were offered to 100 participants with a particular emphasis on investing in Black, Asian and Minority Ethnic participants.

Our place-based Legacy programme for young leaders continued to go from strength to strength – we ran seven programmes in five locations during the year involving 347 young people.

The company’s Bitesize product, which gives buyers a cost-effective way of testing our approach, proved to be an effective entry point for organizations into our wider customised offer. CPUK also delivered customised programmes for a range of clients, including the Co-operative Group, Skipton Building Society, the Legal Aid Agency and NHSX.

Common Purpose Customised Limited, CPUK’s trading subsidiary was dissolved on 6 April 2021.

As part of the group Trustees’ business re-organization in February 2021, activity in CPUK moved to the group’s trading subsidiary, Common Purpose Limited (CPL). The new structure has led to the creation of a UK business unit, focused on sales across our key markets and products. Programme delivery is now provided by a dedicated group delivery team, which supports four group business units. The change has already produced a clearer focus on customers’ needs and an increase in scale.

7.2. Common Purpose International

During the year the main areas of focus were:

  1. expanding our work with conservation leaders, including a new strand of online work to support them in managing through the pandemic

  2. running a pilot of our new online environmental programme, SkyBlue

  3. developing new diaspora programmes for Bangladeshi and Syrian leaders.

In addition to finding new areas of work and adapting our programmes to run online, in response to the pandemic, we significantly reduced the Charity’s costs. Measures taken included eliminating all business travel and saving on programme costs.

As part of the group Trustees’ business re-organization in February 2021, activity in CPI moved to the group’s parent, CPCT. The focus of this business unit will remain environmental programmes, with diaspora programmes moving to a different business unit.

7.3. Common Purpose Limited (formerly Common Purpose Global Customised Ltd)

Common Purpose Limited (“the company”) is a subsidiary of The Common Purpose Charitable Trust (“CPCT”). It changed its name from Common Purpose Global Customised Ltd on 19 January 2021.

5

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

Following a re-organization of the business activities of the group in February 2021, the company now has three areas of activity within the wider group: issuing licences to companies to sell and deliver Common Purpose programmes, a business unit focused on UK open and customised programmes (formerly part of Common Purpose UK) and a business unit covering open and customised programmes across Europe, the Middle East and South Asia.

a. Licensees

The company manages the licensing arrangements with the Common Purpose licensees, which in 2020/21 included Common Purpose UK, Common Purpose Asia Pacific Ltd, Common Purpose International and Common Purpose Student Experiences Ltd, together with Common Purpose licensees operating in Germany, Hong Kong, Hungary, Ireland, India, South Africa, Turkey and the United States. Common Purpose UK, Common Purpose Asia Pacific Ltd, Common Purpose International and Common Purpose Student Experiences Ltd are direct subsidiaries of Common Purpose Charitable Trust, which is the company’s ultimate parent company.

Licensees that are not part of the CPCT group run Common Purpose programmes in their respective countries. These include both open programmes and customised. The licence fee covers use of Common Purpose’s programmes and intellectual property, together with IT systems and services provided by a central Common Purpose team.

Common Purpose Customised Ltd, the trading subsidiary of Common Purpose UK was dissolved on 6 April 2021. Common Purpose Hungary did not trade during the period.

The company began the process of acquiring the shares of its Indian licensee, Civilia India Educational Programmes Pvt Ltd (CIEP) in May 2021. At the time of approving these accounts, the acquisition had not been completed.

b. UK programmes

Following the business re-organization in February 2021, the activities of Common Purpose UK were moved into CPL. these activities include online open programmes run across the UK, together with customised programmes delivered to UK corporates.

c. Europe, Middle East and South Asia (EMESA) The team formerly responsible for sales of customised work was expanded as part the business reorganization to focus on a wider geography. Since February is has covered sales and delivery to key global corporate clients, together with global open programmes (the flagship January programme, and The Common Purpose Programme in countries where the company doesn’t have a local sales presence). With the incorporation of CIEP into the group, the team’s remit was expanded to include business development in the South Asia region.

Objectives for the year

The key objectives for 2020/21 were to:

Review of activities

The company continued to provide services to its fellow subsidiaries set out above and to licensees in the UK, Ireland, Germany, Hong Kong, Hungary, South Africa, India, Turkey and the US.

It ran open programmes (principally the January global programme) together with customised programmes for commercial clients in the US, UK reaching 1,419 participants. The impact of COVID-19

6

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

resulted in the company moving its programmes fully online. We are incredibly grateful to our clients who stuck by us during the pandemic. Our programmes all shifted to online and as a result, the business continued to operate successfully and profitably.

Following the re-organization, the company began offering open programmes both in the UK and globally and these also contributed the successful outcome of the year.

7.4. Common Purpose Asia-Pacific Limited

The company began the year by completing delivery of its flagship ASEAN Leadership Programme. Customised work during the year included delivering major programmes for a number of regional organisations, with a large percentage of repeat business. As with other parts of Common Purpose, COVID-19 put a stop to in-person programmes after March 2021, however the company quickly moved its offering online and continued to deliver programmes. The July 2021 ASEAN Leadership Programme was delivered completely online.

The pandemic had an impact on our ability to recruit participants on to our global programmes including the ASEAN Leadership Programme. We had 24 participants on the 2020 programme and 22 on the 2021 programme (run in June/July).

Plans for 2021/22

2021/22 will be a year of building back for the company. We are responding to client demand for more locally based programmes by running The Common Purpose Programme in Singapore and the ASEAN region. As the impact of the pandemic starts to wane, we will again focus on activities at three levels:

7.5. Common Purpose Student Experiences Ltd

Common Purpose Student Experiences focuses on developing the next generation of inclusive leaders with Cultural Intelligence (CQ): the ability to cross boundaries and thrive in multiple cultures. We collaborate with universities to deliver our co-curricular leadership programmes. These programmes offer a cutting-edge CQ pedagogy with powerful experiential learning techniques, equipping students with CQ to thrive in the world today. They enable universities to complement existing offerings and meet key institutional objectives.

CPSE operates a branch in Australia to support clients in that country. Turnover for the year was AU $959k and surplus AU $763.5k (2019/20: turnover AU $813k and surplus AU $692.3k). The branch’s results are reflected in the figures of the parent company, CPSE. The branch employs two full time staff.

During 2020/21 our main priorities were:

7

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

To achieve this, we ran 27 in-person programmes before COVID-19 affected our operations, reaching 2,145 participants in nine countries. We also saw 388 students complete one of our asynchronous courses.

When COVID-19 made in-person programmes unviable, we quickly re-designed them to be deliverable purely online. In less than three months, we conceived, developed and delivered fully online programmes, demonstrating to our clients our speed of response to the unfolding situation with COVID19. Our agility and technical competence meant we were able to continue to deliver leadership programmes for our existing clients from March onwards and to offer online leadership programmes to new clients. As a result, from March to July this year we had 5,878 students completing online courses or programmes with us – 1,684 on asynchronous courses and a further 4,194 completing a live “real-time” online programme.

This represents a total across the year of 8,411 students completing a Common Purpose programme. Against this very difficult background, we have also been able to deliver a financial surplus for 2020/21.

Highlights for this period saw over 600 RMIT University students complete the online Global Leadership Forum Worldwide and over 330 students from Glasgow, Gloucestershire, Chicago and Pretoria Universities and Queen’s University Belfast complete the online Global Leadership Forum EMEA.

We have asked all of our participants to tell us whether the programme was good value for their time, rating their response on a scale of 1 to 6 (6 being excellent value for time and 1 being very poor). Our target is for 90%+ of participants to score our programmes as 5 or 6 – this was our student experience Key Performance Indicator (KPI) for 2020/21. The average KPI score across our programmes was 83%, a little lower than some previous years. We have reviewed Value for Time as a performance indicator and decided that it is not as useful a measure as we would like. External events over which we have no control (such as bad weather) can intervene to affect participants’ views. As a result, we are moving to KPIs based on the impact the programme has had on participants.

We also measure the students’ development of key leadership skills. Through attending our programmes, our participants reported that:

We combine these skills to measure two core competencies, aiming for an average response of 5 or more out of 6 for each across the year (6 being excellent development of the competency and 1 being very poor). Participants gave the following average scores, meaning we are pleased to have exceeded this target over the year across all competencies:

In addition, we now ask students if they would recommend the programme to others, again aiming for an average score of 5 or more out of 6 (6 being highly recommended). We are delighted to report an average score of 5.36 across the year, showing the value the students place in their experience with us.

We are especially pleased to see that student satisfaction and development of key leadership skills and competencies has been comparable, or higher, for our new online delivered programmes during COVID19 in relation to their previous in-person models.

8

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

Plans for 2021/22

Our plans for 2021/22 include:

8. Review of financial activities

Overview of financial position

Total income for the year 2020/21 was £4,374.7k (2019/20: £4,727.9k), representing a fall of 7.5% on the previous year. Income from open programmes fell by 33%, and grant income was lower by 13%, but other categories of programmes all showed increases in revenue over the previous year. Unrestricted income fell overall by just 2.7%; restricted income fell by 31.5%. The falls were attributable to the impact of COVID-19, together with a decision from a major funder not to run its programme with us in 2021, again due to COVID-19. Revenue from student programmes increased by just under 10%, and from customised programmes by 152%, reflecting the commitment of a major client to a large-scale programme. The Trust also saw revenue of £46.6k from grants under the UK government’s Coronavirus Job Retention Scheme, however the Charity finished claiming under the CJRS in January 2021.

The contribution made by donated goods and services continued to fall as it has in recent years. In 2020/21 it was £227.3k, 38.5% lower than the £369.4k of the previous year. Donated goods and services includes time offered by speaker and contributors, as well as programme venues, offices and other pro bono support provided by a number of organizations. Because we didn’t run in-person programmes after March 2021, donated services were not sought. Donated goods and services are recognized as both income and cost, and the effect is therefore overall neutral on the contribution to reserves.

Expenditure was £4,259.6k (2019/20: £4,996k), a reduction of 14.7%. This reduction reflected efforts to bring expenditure into line with the lower revenue referred to above, while maintaining headcount sufficient to ensure the future sustainability of the Trust. Looking at individual categories:

The net movement in overall funds for the year ended 31 July 2021 was a surplus of £115.1k (2019/20: deficit of £268.1k). The net movement in unrestricted funds was an increase of £441.1k (2019/20: reduction of £351.9k) and a reduction in restricted funds of £326k (2019/20: increase of £83.8k). Details of the results for the year are given in the Statement of Financial Activities on page 19.

9

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

Donated goods and services

We continued to receive significant support in kind locally and nationally to help keep expenditure in Common Purpose to a minimum. Generous support was received in kind from supporters who act as advisors, speakers, contributors and hosts on the course days. Such valuable contribution enables Common Purpose to run the high quality and range of courses currently in operation as well as enabling Common Purpose to offer bursary and part bursary places on our courses. During 2020/21, donated goods and services amounted to £227.3k compared with £369.4 in 2019/20. We gratefully acknowledge the support of the many organisations that donated their services during the year.

Results for the trading subsidiary of Common Purpose Charitable Trust

Common Purpose Limited (formerly Common Purpose Global Customised Ltd) made a profit of £358.6k for the year (2019/20: loss of £3.1k). The income of the trading subsidiary (which comprises licence fee income and fees from both open programmes and customised work) rose to £1,743.1k from £564.2k in 2019/20. The improvement in the financial results for CPL reflect the positive outcomes of the business re-organization which took place in February 2021. This is covered further in paragraph 10 below.

It is the intention of the directors of CPL to gift aid positive reserves to the group.

Intercompany guarantee

CPUK has an intercompany debtor balances with: CPSE for £223k, CPI for £13.1k and CPL for £126.6k. In light of CPUK’s negative reserve balance and the fact that it is no longer actively trading following the business re-organization, CPCT has provided guarantees to these companies to meet the sums CPUK owes.

9. Reserves policy

CPCT holds reserves to ensure the stability of its mission, programmes, employment, and ongoing operations of the organization. Reserves are that part of CPCT’s unrestricted funds that are freely available to spend on any of the charity’s purposes. Reserves provide a source of internal funds for organizational priorities such as new programmes, curriculum development and international expansion.

CPCT intends to meet its operational and strategic objectives by maintaining reserves at a level that allows it to carry on and develop its activities in line with its charitable objectives and strategy, while not holding excessive reserves that would limit the amount spent on achieving those objectives.

The Trustees of CPCT are responsible for setting and monitoring the level of reserves for the CPCT group and for approving this policy. The Trustees are also responsible for approving the use of reserves for investment in new programmes or initiatives.

CPCT’s total reserves are made up of:

CPCT has calculated that an appropriate level of unrestricted reserve for the organization, based on the risk to income, is £1,200,000. At the end of 2021/22, the group is budgeted to hold £1,352k of unrestricted reserve. This is £135k higher than the level required to provide a minimum of six months’ cover for the business. The trustees however are happy to hold reserves slightly in excess during the period of economic uncertainty associated with COVID-19. Should this contingency not be required, the excess funds will be used for future business growth.

10

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

It is also the Trustees’ policy that all companies within the CPCT group should hold positive unrestricted reserves. Where a company has negative reserves, the board will take appropriate remedial action to return the reserves to positive.

The level of reserves is reported each month in line with the monthly accounts preparation. The level of unrestricted and restricted reserves is reported to each board meeting with the group balance sheet.

CPCT has adopted a risk-based approach to determining its reserves, utilising a model that allocates a risk weighting to unrestricted income and costs. In the model, income is assessed on certainty and stability, to produce a reliability score. Costs are assessed on the impact of reducing them, their priority to the organisation and the source of funding, to produce an expenditure commitment score. Income and expenditure lines are given a red / amber / green rating. The reserves figure is based on the red and amber results. CPCT has chosen a six months’ time horizon, meaning that we aim to hold reserves to cover six months of trading.

To compare the results of this model, a worst case scenario was also prepared. This scenario involves an orderly wind down of the business, with an assumption that no debtors pay and we receive no new cash to support the business. Staff are paid their contractual notice period. Under this scenario, CPCT would need reserves of £2m to liquidate the company.

The make up across the group is:

CPCT
CP International
CP Limited
CPUK
CP Student Experiences Ltd
CP Asia-Pacific Ltd
Total reserves		 Total
Unrestricted
Restricted		 Total
Unrestricted
Restricted		 Total
Unrestricted
Restricted
917.0
90.0
234.0
(276.9)
494.9
98.9		 469.4
87.5
234.0
(276.9)
494.9
98.9		 447.6
2.5
0.0
0.0
0.0
0.0
1,557.9
1,107.8
450.1

10. Business re-organization in February 2021

In February 2021, the Trust moved to simplify its corporate structure by:

The purpose of the business restructure was to:

The core activities of both CPUK and CPI have not changed but now sit within larger teams with stronger support networks for business development and programme delivery. The trustees expect to

11

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

see similar or larger revenue from each new team, with a lower cost base as resources are shared between teams within CPL and CPCT.

In addition to these changes, a new dedicated team for programme delivery was created, which is responsible for scheduling, preparing and delivering programmes across the UK, EMESA, Students and Asia Pacific business units.

CPL is also in the process of acquiring the shares of Civilia India Educational Programmes Pvt Ltd (CIEP). CIEP has until now been an independently owned and operated licensee based in Bangalore, and therefore outside the control of the group. However the board wishes to regularize the shareholder structure – these are currently two individuals – and bring together the business development capability of the wider group to build a stronger presence in the Indian market. CIEP will be a subsidiary of CPL. The results for CIEP between the acquisition in May and the end of the group’s financial year have not been consolidated in this report as the acquisition has not yet been completed and CPL’s ownership has not yet been formally finalized by the Reserve Bank of India.

11. Reference and administrative details

Charity number: 1023384 Company number: 2832875 Registered office: Monmouth House, 38 – 40 Artillery Lane, London E1 7LS

12. Advisers

Auditors: Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG Bankers: National Westminster, 250 Regent Street, London W1B 3BN Solicitors: Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square London E1 6PW

13. Trustees and directors

Lynna Chandra Mark Linder Richard Charkin (resigned 26 Nov 2020) Vandana Saxena Poria Jonathan Donner David Robinson David Grace (Chair) Shuvo Saha Sanjeev Gupta Janis Sanders Peter Kulloi Albert Tucker Lauren Le Franc

All served throughout the year ended 31 July 2021, unless otherwise indicated.

The group’s Chief Executive Officer is Adirupa Sengupta.

14. Structure, governance and management

a. Governing Document and Constitution

The Common Purpose Charitable Trust is a company limited by guarantee with charitable status. The governing documents of the Trust are its Memorandum and Articles of Association.

Methods adopted for the recruitment and appointment of trustees

We encourage people interested in becoming trustees to apply on our website. When vacancies arise, the nominations committee draws up criteria, considers applications, conducts interviews of candidates and recommends appointments. Prospective trustees are briefed on the nature and work of the organisation, invited to meet the board and the executive and, if the board approves, appointed at the next board meeting. Appointments are ratified at the following annual general meeting.

12

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

All trustees are offered an induction, which is tailored to suit their individual requirements. Each new trustee receives an information pack which informs them of their role, the management structure and the policies and systems in place. New trustees are invited to attend a course day to see Common Purpose in action, as well as participating in other Common Purpose events.

c. Directors’ insurance and indemnities

The trustees have the benefit of the indemnity provisions contained in the Trust’s Articles of Association, and the Trust has maintained throughout the year directors’ and officers’ liability insurance for the benefit of the Trust, the directors and its officers.

15. Board sub-committees

The Audit and Risk Committee (ARC) meets regularly to review and advise the board on all financial and risk matters as they relate to the group. ARC formally met seven times during the year and held a further nine calls during the height of the pandemic. Areas of review included:

ARC members are Jan Sanders (Chair) and Sanjeev Gupta (appointed Nov 2020), with the Group CEO and Finance Director/Group Company Secretary attending. David Grace, formerly the chair of ARC resigned from the committee when he was appointed group Chair. The ARC meets monthly and as required.

b. Nominations Committee

The Nominations Committee meets periodically to discuss matters to do with board appointments and succession. Its members include Jonathan Donner and Vandana Saxena Poria.

16. Organisational structure and decision making

The trustees of The Common Purpose Charitable Trust meet quarterly to review the direction and performance of the organisation. They set and agree the strategy to ensure that the organisation meets its aims.

The Chief Executive is responsible for the leadership of the organisation. The trustees review the progress of the strategic objectives of the companies within the group and act to safeguard the organisation’s independence and brands.

The trustees set the salary of the Group Chief Executive Officer, who is delegated to set the salaries of senior management. These are benchmarked against average management salaries for the sector. The aggregate emoluments of the key management personnel were £1,141.2k (2019/20: £1,273k).

Support costs are run centrally and recovered from revenue generating business units. In each local area in which Common Purpose operates, a Local Advisory Group is set up, the chair of which is appointed by the chair of the trustees. The group is made up of local leaders from the public, private and voluntary sectors. The Local Advisory Group ensures that participant groups are diverse and

13

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

reflect the make-up of the local area. The names of members of all Local Advisory Groups are published on the Common Purpose website.

Local Advisory Groups are advisory only. They have no legal, financial, or managerial responsibility for Common Purpose. They are not representative bodies either. All Advisory Group members attend as individuals in a voluntary and unpaid capacity, which they are invited to take on in their personal, rather than professional, roles.

If any issue arises at Advisory Group meetings which conflicts with their professional role, members exclude themselves from that section of the discussion.

17. Risk Review Statement

The trustees have established a regular risk assessment which identifies the major foreseeable risks faced by the Trust, assessing their likelihood and impact, and as appropriate, implementing measures to mitigate these risks. The trustees regularly review a detailed risk register which identifies the major risks to which the Trust is exposed. The risk register assigns a likelihood and impact score to each identified risk, and assigns both management and board responsibility for oversight. The scores are then assigned a colour (red, amber, green) with the most serious risks being closely monitored.

Major risks discussed and addressed at board level include:

18. Impact of COVID-19 (Coronavirus)

The trustees have approved these accounts at a time when the economic uncertainty because of the coronavirus, COVID-19 continues. With the introduction of virus control measures around the world since early March 2021, and in common with most other organisations, the Trust was forced to curtail its inperson programmes and refocus its activities on online programmes. All Common Purpose programmes were moved online from July 2020, and it is expected that programmes will continue online for the foreseeable future, until the governments relax the restrictions related to the pandemic.

The Trust took advantage of the government employment support schemes in the UK and Singapore:

The Trust successfully applied for a loan of £400,000 under the UK government’s Coronavirus Business Interruption Loan scheme. The funds were received in August 2021. The trustees have determined that to hold the funds as a contingency planning measure in case of a slower than expected recovery.

In November 2021 the trustees formally reviewed an updated cash flow forecast to December 2022 for the group as a whole. On the basis of the assumptions made by management this showed the Trust remaining cash flow positive throughout the period.

The trustees recognize, however, that given the current uncertain situation with COVID-19 any forecast of future activity levels and thus cash flow is inherently uncertain. The key uncertainty is the extent to

14

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

which uncontracted income will be realised while COVID-19 restrictions apply. To protect this income, we continue to stay very close to our clients.

The trustees believe, however, that notwithstanding the inherent uncertainties that currently exist, the strength of the Trust’s underlying business and management’s ongoing relationships with key donors and clients and the actions being taken to mitigate expected reduced activity levels (as mentioned above) mean that the Trust remains financially sustainable and will remain a going concern for at least the next twelve months from the date of approval of these accounts.

The trustees will continue to actively monitor staff levels and operational costs and take such steps as they consider necessary to help ensure these remain in line with reduced activity levels and income, also taking into account the Trust’s proposed utilisation of the assistance being provided by the UK and Singapore governments.

The Trust has no investments or other assets that have been significantly impaired as a result of COVID19. The Trust’s reserves have recovered during 2020/21, The trustees have reviewed and updated the Trust’s reserves policy to reflect COVID-19, as well as the risk register and other actions that need to be taken to reflect the current situation.

19. Statement of trustees’ responsibilities

The trustees, who are also the directors and members of The Common Purpose Charitable Trust for the purposes of company law, are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable Trust and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable Trust for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable Trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable Trust and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

A resolution re-appointing Haysmacintyre LLP will be proposed at the AGM in accordance with S485 of the Companies Act 2006.

15

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

In preparing this report the trustees have taken advantage of the exemptions available to small companies (including the exemption from preparing a strategic report).

Signed by order of the Board of Trustees on 25 November 2021.

 David Grace Trustee

 Jan Sanders Trustee

16

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

Opinion

We have audited the financial statements of Common Purpose Charitable Trust for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Trust-only Balance Sheet, the Consolidated Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

17

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 15 and 16, 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, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent 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 the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the

18

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, payroll taxes and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries or the manipulation of accounting judgements and estimates. Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the 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 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 charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Harper (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG

28 February 2022 Date:

19

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account)

FOR THE YEAR ENDED 31 JULY 2021

Note
Income from
Donated goods and services
Charitable activities:
Open programmes
Student programmes
Grants
Customised programmes
Payments received for staff furlough
Other Income
Other trading activities
Total
Expenditure on
Charitable activities:
Open programmes
Student programmes
Grant-based programmes
Customised programmes
Other trading activities
Total
6
Net (expenditure) / income
Transfers between funds
Net movement in funds
Fund balances brought forward
as at 1 August
Fund balances carried forward
as at 31 July		 Unrestricted
Restricted
Total funds
Funds
Funds
£000s
£000s
£000s
227.3
0.0
227.3
734.5
0.0
734.5
981.9
0.0
981.9
444.8
516.4
961.2
1,239.9
0.0
1,239.9
46.6
0.0
46.6
108.5
0.0
108.5
74.8
0.0
74.8
2020/21		 Note







 Unrestricted
Restricted
Total funds
Funds
Funds
£000s
£000s
£000s
369.4
0.0
369.4
1,099.6
0.0
1,099.6
897.7
0.0
897.7
356.0
753.7
1,109.6
494.3
0.0
494.3
145.9
0.0
145.9
0.0
0.0
0.0
611.3
0.0
611.3
2019/20
3,858.3
516.4
4,374.7
895.6
0.0
895.6
875.0
0.0
875.0
384.4
812.4
1,196.8
1,107.2
0.0
1,107.2
185.0
0.0
185.0






0.0




 3,974.2
753.7
4,727.9
1,278.6
2.1
1,280.7
1,094.4
0.0
1,094.4
394.3
394.9
789.1
681.6
272.9
954.5
877.2
0.0
877.2
3,447.2
812.4
4,259.6		 4,326.1
669.9
4,996.0
411.1
(296.0)
115.1
30.0
(30.0)
0.0
441.1
(326.0)
115.1
666.7
776.1
1,442.8		 (351.9)
83.7
(268.1)
7.5
(7.5)
0.0
(344.4)
76.3
(268.1)
1,011.1
699.9
1,711.0
1,107.8
450.1
1,557.9		 666.7
776.1
1,442.9

The accompanying notes on pages 24 to 37 form part of the financial statements.

All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities.

.

20

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2021

Note
FIXED ASSETS
Intangible fixed assets
7
Tangible fixed assets
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
Total current assets
Creditors: amounts falling due
within one year
10
LONG TERM LIABILITIES
Creditors: amounts falling due in more
than one year
11
TOTAL ASSETS LESS LIABILITIES
RESERVES
Restricted funds
15
Unrestricted funds
14
Net current assets
Total long term liabilities		 £000s
£000s
£000s
£000s
37.6
41.7
41.7
65.3
79.3
107.0
1,338.7
947.1
2,427.9
1,056.3
3,766.6
2,003.4
(1,888.0)
(667.5)
1,878.6
1,335.9
(400.0)
(400.0)
1,557.9
1,442.9
450.1
776.2
1,107.8
666.7
1,557.9
1,442.9
2020
2021
3,766.6
(1,888.0)
(400.0)

The accompanying notes on pages 24 to 37 form part of the financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Board of Trustees on 26 November 2021 and were signed below on its behalf by:



David Grace

Trustee

 Jan Sanders Trustee

21

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

BALANCE SHEET (TRUST ONLY)

AS AT 31 JULY 2021

2021 2020
Note £000s £000s £000s £000s
FIXED ASSETS
Tangible fixed assets 8 40.2 48.1
40.2 48.1
CURRENT ASSETS
Debtors 9 637.9 683.5
Cash at bank and in hand 2,280.3 753.9
Total current assets 2,918.2 1,437.4
Creditors: amounts falling due
within one year 10 (1,641.4) (517.4)
Net current assets 1,276.8 920.0
Creditors: amounts falling due in more
than one year		 11 (400.0) 0.0
Net long term liabilities (400.0) 0.0
TOTAL ASSETS LESS LIABILITIES 917.0 968.1
RESERVES
Restricted funds 446.9 777.0
Unrestricted funds 470.1 191.1
917.0 968.1

The Common Purpose Charitable Trust made a loss before consolidation of £332.3k (2019/20: loss of £369.1k).

The accompanying notes on pages 24 to 37 form part of the financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Board of Trustees on 25 November 2021 and were signed below on its behalf by:



David Grace

Trustee



Jan Sanders Trustee

22

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED CASH FLOW STATEMENT

YEAR ENDED 31 JULY 2021

2021 2020
£000s £000s
Net cash inflow / (outflow) from operating
activities		 12 417.5 (47.2)
Returns on investments and servicing of finance
Interest received 0.0 0.0
Capital expenditure
Payments
to acquire tangible and intangible fixed
assets		 (3.9) (30.1)
Increase / (decrease) in cash 1,371.6 (77.3)
Cash at bank and in hand at start of year 1,056.2 1,133.5
Cash at bank and in hand at end of year 2,427.9 1,056.2

The accompanying notes on pages 24 to 37 form part of the financial statements.

The balance of £2,427.9k cash at bank and in hand is made up as follows:

Cash
Bank overdraft utilised
Total		 2020/21
2019/20
£000s
£000s
£2,427.9
£1,214.3
£0.0
£(158.1)
£2,427.9
£1,056.2

23

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES

Common Purpose Charitable Trust is a charitable company limited by guarantee. Further details are shown in section 15 of the Trustees’ Annual Report.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable Trust is a public benefit entity for the purposes of FRS 102 and therefore the Trust also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP, Second Edition, effective 1 January 2019), the Companies Act 2006 and the Charities Act 2011, and Regulations made thereunder.

(a) Financial instruments

The Trust and group hold only basic financial instruments which are initially recognised at cost or transaction, and do not require subsequent adjustment to fair value.

(b) Revenue recognition

In the view of the trustees in applying the accounting policies adopted, judgement was required in relation to recognition of accrued income.

Programme delivery date % of contracted
amount
First quarter of the following financial year 75%
Second quarter of the following financial 50%
year

(c) Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the trustees in furtherance of the general charitable objectives.

Restricted funds are funds subject to specific restricted conditions imposed by the donors.

(d) Income

Income represents the total income receivable during the year comprising fees from open programmes, student programmes, customised programmes, as well as grants for large international projects, bank interest and other income.

Income and expenditure related to open courses is matched and any surplus on a course is recognised in the accounting year in which it arises. Course deficits are recognised as soon as anticipated. Income is fully recognised on commencement of courses including those that cease after the year end as no refunds are given once a course has commenced and hence full entitlement to the income occurs on commencement.

Income and expenditure related to student and customised programmes is matched and any surplus on a course is recognised in the accounting year in which it arises. Due to the nature of the programmes, income is partially based on the services rendered within the financial year. Where a client makes a legally binding commitment to purchase a customised programme, but the programme is not running until the next financial year, income in accrued as per not 1(b) above.

In prior years, grant income was recognized in its entirety at the time it is received as long as there were no conditions that prevented recognition. This income was held as restricted income until such time as programme delivery costs were incurred.

24

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

Following a review with the Audit and Risk Committee and the group’s auditors, it was agreed that in line with the FRS 102 Charities SORP, where donors imposed timelines in relation to delivery of their programmes, income should be deferred rather than recognized in the year of receipt, as this represents a precondition set by the donor. We have therefore adopted this principal for any grants received that meet this condition.

Where Common Purpose has been donated facilities, amounts are included in income at the estimated value to the Trust of the donated facilities with an equal and opposite amount being included in expenditure.

(e) Expenditure

Expenditure is charged to the Statement of Financial Activities on an accruals basis.

Direct costs are charged to the appropriate category of charitable activity along with appropriate allocation of support costs, which are defined as those costs which are necessary to deliver the charitable activity but do not constitute its output. Support costs include governance costs. More detail as to the method of their allocation is given in note 6b to the accounts.

Governance costs are those non charitable costs which are necessary for the general running of the Trust and include items such as constitutional costs, trustee costs and audit fees along with an allocation of support costs.

(f) Depreciation and amortisation

Depreciation is calculated on a monthly basis so as to write off the cost of tangible fixed assets over their expected useful economic lives. The principal annual rates and bases used for this purpose are:

Leasehold improvements 10% straight line Computer equipment 33% straight line

Amortisation on trademarks is calculated on an annual basis over ten years. Amortisation on software costs are calculated on an annual basis over three years. Amortisation of software with a perpetual licence is calculated on an annual basis of ten years.

(g) Leased assets

Payments under operating leases are charged to the Statement of Financial Activities.

(h) Basis of consolidation

The group financial statements consolidate the financial statements of The Common Purpose Charitable Trust, Common Purpose UK, Common Purpose International, Common Purpose Ltd, Common Purpose Student Experiences Ltd and Common Purpose Asia-Pacific Ltd. The financial statements of CPSE’s branch in Australia are consolidated into the accounts of CPSE. No statement of financial activities is presented for The Common Purpose Charitable Trust as provided by section 408 of the Companies Act 2006.

(i) Foreign currency translation

Transactions denominated in in foreign currencies are initially translated into sterling at the exchange rate at the transaction date. Monetary items are retranslated at the balance sheet date and the resulting differences are reflected in the Statement of Financial Activities.

(j) Going concern

The accounts are approved during a period where the impacts of COVID-19 continue to be felt in Common Purpose’s business. The Trust’s response has been to reforecast its cash flow in light of

25

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

COVID-19. This forecast shows the Trust staying cash flow positive for the next 12 months despite the impact on income during the 2020/21 financial year. The trustees have also made use of funding and other support facilities available to it, including UK government initiatives around employment and lending support. The trustees believe therefore that the Trust has sufficient resources to continue its activities for the foreseeable future. They consider that any uncertainties over the Trust’s financial viability are manageable. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

2. NET MOVEMENT IN FUNDS - Group and Trust

NET MOVEMENT IN FUNDS - Group and Trust
2021 2020
£000s £000s
The net movement in funds is arrived at after charging:
Depreciation and amortisation 31.5 50.4
Auditors’ remuneration for audit services 31.9 41.8
Auditors' remuneration for non-audit related services 3.3 1.6
Operating lease rentals - land and buildings 107.1 106.1
Operating lease rentals – equipment 30.4 30.4

26

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

3. STAFF NUMBERS AND EMOLUMENTS - Group and Trust

2021 2020
Number Number
The average number of persons employed by the group
during the year was:
Programme sales and delivery 59 47
Operational support 16 21
75 68
Staff costs £ £
Wages and salaries 2,714,651 2,728,307
Social security costs 286,575 263,240
Employer Pension Contribution 74,041 62,961
3,075,266 3,054,508
The number of employees whose emoluments for the year
fell within the following bands:
Number Number
£60,000 - £69,999 3 2
£70,000 - £79,999 2 1
£80,000 - £89,999 2 3
£90,000 - £99,999 1 1
£100,000 - £109,999 0 0
£110,000 - £119,999 2 0
Over £130,000 1 1
Total 11 8
Aggregate emoluments of the Senior Management Team
£ £
Salary 994,512 1,123,458
Social security costs 113,702 119,988
Pension 32,975 29,569
1,141,189 1,273,015

No termination payments were made during the year.

The senior management team includes those employees who report directly to the CEO, made up of the heads of business units and support teams. During 2020/21 the senior management team consisted of ten people in CPCT, one in CPUK (moved to CPCT in February 2021) and one in CPAPL. Employer pension contributions relate to defined contribution arrangements only and these are charged to expenditure as they fall due.

27

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

4. RESULTS FROM COMMON PURPOSE CHARTIABLE TRUST TRADING SUBSIDIARIES

Until April 2021, the group had two trading subsidiary companies:

The results and net assets of CPL are shown below:

Profit and loss account
Turnover
Administrative expenses
Interest paid
Retained profit / (loss)
Balance sheet
Fixed assets
Current assets
Current liabilities
Long term liabilities
Surplus / (Deficit) on reserves		 2021
2020
£
£
1,743.1
564.2
(1,384.5)
(564.7)
0.0
(2.6)
Common Purpose Limited
358.6
(3.1)
30.9
37.9
757.6
199.0
(554.5)
(253.6)
0.0
(107.7)
234.0
(124.5)

28

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

4a. RESULTS OF CHARITABLE SUBSIDIARIES

The Common Purpose Charitable Trust has three UK charitable subsidiaries, Common Purpose UK (company no. 03556983, charity no. 1023384), Common Purpose International (company no. 03207453, charity no. 1056573) and Common Purpose Student Experiences Limited (company no. 09526939), together with a subsidiary in Singapore (Common Purpose Asia Pacific Ltd).

As part of the business re-organization, trading in both CPUK and CPI was moved to other group companies with effect from 1 February (refer paragraphs 7.1, 7.2, 7.3 and 10 in the Report of the Trustees above)

Common Purpose Student Experiences also operated a branch of an overseas company in Australia. These results are consolidated with those of CPSE.

Common Purpose UK Common Purpose UK Common Purpose
International		 Common Purpose
International
2021 2020 2021 2020
Income £000s £000s £000s £000s
Income from donated goods and services 145.4 346.0 0.0 0.0
Income from charitable activities 371.5 1,099.9 111.8 122.5
Net
cost
recoveries
entities		 from other group 117.9 144.0 88.9 129.6
Total income 634.8 1,590.0 200.7 252.1
Expenditure
Charitable activities 710.0 1,694.8 217.5 338.3
Net movement in funds (75.2) (104.9) (16.8) (86.2)
Surplus covenanted to CPCT 0.0 0.0 0.0
Assets 128.5 197.6 91.2 111.1
Liabilities (405.4) (399.3) (1.2) (4.3)
Net funds (276.9) (201.7) 90.0 106.8

29

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

Common Purpose Student Common Purpose Student
Experiences Ltd
2021 2020
Income £000s £000s
Income from charitable activities 1,017.6 609.8
Net cost recoveries from other group 12.8 345.3
entities
Total income 1,030.4 955.2
Expenditure
Charitable activities 789.6 873.2
Net movement in funds 240.8 82.0
Surplus covenanted to CPCT 0.0
Assets 711.6 444.5
Liabilities (216.7) (190.4)
Net funds 494.9 254.1
Common Purpose Asia Pacific Ltd
2021 2020 2021 2020
Income £000s £000s SG $000s SG $000s
Grant from Common
Trust		 Purpose Charitable 0.0 0.0 0.0 0.0
Income
from
activities		 charitable and trading 170.9 514.4 311.4 918.1
Net
cost
recoveries
entities		 from other group 63.1 162.4 115.0 289.9
Total income 234.0 676.8 426.4 1,207.9
Expenditure
Charitable activities 279.9 749.0 510.1 1,336.8
Net movement in funds (45.9) (72.2) (83.7) (128.9)
Assets 198.3 260.4 424.7 464.7
Liabilities (99.6) (89.5) (203.4) (159.7)
Net funds 98.6 170.9 221.3 305.0

30

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

5. TRUSTEES’ REMUNERATION AND REIMBURSED EXPENSES (Group and Trust)

No emoluments were paid during the year (2019/20: nil). Nil expenses were reimbursed to trustees (2019/20: nil).

6a. ANALYSIS OF EXPENDITURE

Open programmes
Student programmes
Grants
Customised programmes
Other trading activities		 Direct costs
Support Costs
Total 2021
£000s
£000s
£000s
603.6
250.4
854.0
538.4
334.8
873.1
959.8
236.1
1,196.0
686.4
425.3
1,111.7
146.4
78.4
224.8		 Direct costs
Support Costs
Total 2020
£000s
£000s
£000s

914.4
364.2
1,278.6

797.0
297.4
1,094.4

816.9
246.9
1,063.8

517.8
163.7
681.5

626.5
250.7
877.2
2,934.6
1,325.0
4,259.6
3,672.6
1,323.0
4,995.6

6b. ANALYSIS OF SUPPORT COSTS

Open programmes
Student programmes
Grants
Customised programmes
Other trading activities		 Central support
costs
Licence fee
Governance
Total
£000s
£000s
£000s
£000s
199.7
43.6
7.1
250.4
266.9
58.3
9.6
334.8
172.9
58.9
4.3
236.1
339.2
74.0
12.1
425.3
62.5
13.6
2.3
78.4
2021		 Central
support costs
Licence fee
Governance
Total
£000s
£000s
£000s
£000s

294.7
56.7
12.8
364.2

240.7
46.3
10.4
297.4

197.6
45.2
4.1
246.9

132.5
25.5
5.7
163.7

202.9
39.1
8.8
250.7
2020
1,041.2
248.4
35.4
1,325.0
1,068.3
212.8
41.8
1,323.0

Support costs are apportioned on the basis of the percentage of each activity’s direct expenditure. Central services includes Finance, HR, Marketing and Operational support. Support costs are fully recovered from business units.

31

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

7. INTANGIBLE FIXED ASSETS - GROUP

COST
At 1 August 2020
Additions
At 31 July 2021
AMORTISATION
At 1 August 2020
Charge for year
At 31 July 2021
NET BOOK VALUE
At 31 July 2021
At 1 August 2020		 Software
Costs
£000s
243.2
0.0
243.2
208.0
5.8
213.8		 Group
Trademarks
£000s
41.2
0.0
41.2
34.7
1.3
36.0		 Investments
£000s
0.0
3.0
3.0
0.0
0.0
0.0		 Total
£000s
284.4
3.0
287.4
242.7
7.1
249.8
29.4
35.2		 5.2
6.6		 3.0
0.0		 37.6
41.7

32

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

8. TANGIBLE FIXED ASSETS – GROUP

COST
At 1 August 2020
Disposal
Additions
At 31 July 2021
DEPRECIATION
At 1 August 2020
Disposal
Charge for year
At 31 July 2021
NET BOOK VALUE
At 31 July 2021
At 1 August 2020		 Leasehold
improvements
£000s
161.3
0.0
0.9
162.1
147.9
0.0
2.9
150.8
11.3
13.4		 Group
Computer
equipment
Total
£000s
£000s
1,362.5
1,523.8
0.0
0.0
0.0
0.9
1,362.5
1,524.6
1,310.6
1,458.5
0.0
0.0
21.5
24.4
1,332.1
1,482.9
30.4
41.7
51.9
65.3

Included in the above table are assets related to the parent charitable trust with a net book value of £40.2k (2019/20: £48.1k).

33

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

9. DEBTORS

DEBTORS
Tuition fees and sponsorship income
Prepayments
Accrued income
Other debtors
Prepaid marketing material
Amounts due from group undertakings
Loans to group companies		 Group Trust
2021
2020
£000s
£000s
752.1
452.8
(5.0)
17.6
588.4
476.1
0.0
0.0
0.5
0.6
2.7
0.0
0.0
0.0		 2021
2020
£000s
£000s

126.3
131.7

5.1
20.7

164.3
210.0

0.0
29.2

0.0
0.0

234.5
184.3

107.7
107.7
1,338.7
947.1
637.9
683.5

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Overdraft
Sundry creditors and accruals
Other taxes and social security
Deferred income
Amounts due to group undertakings		 Group Trust
2021
2020
£000s
£000s
0.0
158.1
403.0
283.2
225.7
208.6
1,259.3
175.6
0.0
0.0		 2021
2020
£000s
£000s

0.0
140.2

234.7
246.3

108.5
65.7

1,012.4
0.0

285.8
55.4
1,888.0
825.6
1,641.4
507.7

Deferred income relates to work due to be undertaken in the coming year. The brought forward deferred income has been released in full into the current year’s Statement of Financial Activities.

11. LOAN UNDER THE CORONAVIRUS BUSINESS INTERRUPTION LOANS (CBIL) SCHEME

In August 2020, CPCT received a loan under the CBIL Scheme for £400,000. The loan is repayable over six years. Repayments on the loan began in August 2021. The trustees have decided to maintain the loan for the foreseeable future as a liquidity buffer. The Audit and Risk Committee reviews the Charity’s cash position every three months to determine whether the loan can be partially or fully repaid.

34

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

12. RECONCILIATION OF OPERATING SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net increase / (decrease) in funds
Interest received
Disposal of tangible fixed assets
Depreciation and amortisation
Loan funds incoming
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash inflow / (outflow) from operating activities		 2021
2020
£000s
£000s
115.1
(268.1)
0.0
0.0
0.0
0.0
31.5
50.4
(400.0)
0.0
(391.5)
366.5
1,062.5
(195.9)
417.5
(47.2)
Group

13. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS DURING THE YEAR

Cash at bank and in hand 2020
£000s
1,056.2
1,056.2		 Change in
year
2021
£000s
£000s
1,371.7
2,427.9
1,371.7
2,427.9
Group

35

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2021
Fixed assets
Current assets
Current liabilities
Long term liabilities
2020
Fixed assets
Current assets
Current liabilities		 Unrestricted
Funds
Restricted
Funds
£000s
£000s
79.3
0.0
3,316.5
450.1
(1,888.0)
0.0
(400.0)
0.0
1,107.8
450.1
Unrestricted
Funds
Restricted
Funds
£
£
107.1
0.0
1,385.3
776.1
(825.6)
0.0
666.8
776.1		 Total Funds
£000s
79.3
3,766.6
(1,888.0)
(400.0)
1,557.9
Total Funds
£
107.1
2,161.5
(825.6)
1,443.0

15. RESTRICTED FUNDS

15. RESTRICTED FUNDS
2021
American Express Foundation
Asfari Foundation
Islamic Relief Worldwide
British Council Bangladesh
MAVA Foundation
Women Emerging from Isolation
Creative Scotland
Grants for the development of UK101 project
TOTAL
2020
American Express Foundation
Asfari Foundation
British Council Pakistan
British Council Bangladesh
Penny Appeal
MAVA Foundation
Women Emerging from Isolation
Grants for the development of UK101 project
TOTAL		 Brought
forward
Income
Expenditure
Transfers /
gains
Carried
forward
21.7
0.0
0.0
(21.7)
(0.0)
7.5
0.0
7.5
0.0
0.0
0.0
32.0
21.9
(10.0)
0.0
0.0
34.4
11.9
(20.0)
2.5
647.1
378.7
649.4
0.0
376.3
28.5
9.0
0.1
(37.5)
0.0
0.0
9.0
9.0
0.0
0.0
71.3
0.0
0.0
0.0
71.3
776.1
463.1
699.8
(89.2)
450.1
Brought
forward
Income
Expenditure
Transfers /
gains
Carried
forward
249.8
0.0
228.1
0.0
21.7
15.1
0.0
0.1
(7.5)
7.5
8.7
0.0
8.7
0.0
0.0
0.0
20.0
20.0
0.0
0.0
0.0
5.0
5.0
0.0
0.0
351.6
912.1
616.7
0.0
647.1
0.0
28.7
0.2
0.0
28.5
73.5
2.2
0.0
71.3
698.7
965.9
880.9
(7.5)
776.1

36

DocuSign Envelope ID: E5752295-72F2-4BB3-8ABE-FEF37689BD3F

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

16. OPERATING LEASE COMMITMENTS – LESS THAN FIVE YEARS

The Trust is committed to making the following minimum annual rental payments in respect of leases expiring:

Within:
more than one year and less than 5 years
Within:
more than one year and less 5 years		 2021
2020
Land and
buildings
Land and
buildings
£000s
£000s
321.3
428.4
2021
2020
Equipment
Equipment
£000s
£000s
0
0

17. RELATED PARTY TRANSACTIONS

During the year, no directors or management made related party transactions. There were no other related party transactions in the year. One director declared a related party transaction in the previous year (2019/20).

Companies within the CPCT group routinely enter into transactions with other group companies. These transactions are to pay for staff engaged from other group entities, and to provide funding for programme costs where programmes were being delivered by a different group entity. Net inter-group debtor and creditor balances as at year end were as follows:

Common Purpose Asia-Pacific Ltd
Common Purpose Ltd
Common Purpose UK
Common Purpose Customised Limited
Common Purpose Charitable Trust
Common Purpose International
Common Purpose Student Experiences Ltd
Net intercompany debtor / (creditor) balance		 2021
2020
£000s
£000s
68.7
0.5
51.3
211.1
264.6
244.1
(12.0)
(12.0)
51.1
(283.0)
(77.6)
(54.9)
(343.4)
(116.5)
2.7
(10.7)

37