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2022-07-31-accounts

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

CONSOLIDATED REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

Company registered number: 2832875 Charity registered number: 1023384

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

CONTENTS Page
Chair’s report 1
Trustees’ report 2 - 14
Independent Auditors’ report 15 – 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19
Trust balance sheet 20
Consolidated cash flow statement 21
Notes to the consolidated financial statements 22 – 36

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

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 2022 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 we have had to operate in a world facing many challenges - the continuing COVID-19 pandemic, the war in Ukraine, rising inflation, the energy crisis, disruption of supply chains and the issue of climate change. These factors have combined to create the most difficult business and operating environment for many years.

This has all brought into even sharper focus both the need for Common Purpose and also the value of what we provide. The need for leaders who can operate across boundaries has never been greater. This continues to manifest itself in the significant and continued demand for our programmes, as funding organisations and participants understand that incisive, cross sector and intergenerational leadership can make a material difference.

At the same time, the extent of these challenges has required as to further adapt how we manage the business and continue to grow and develop what we do. 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.

Against this background our strategy has continued to serve us well. We have successfully innovated by designing new products in response to the needs of the market and especially looked at our strategy and resource base. The objectives we set ourselves last year have also been largely met.

Our strategy reflects what our clients, participants and other stakeholders say will help them not just to survive but to thrive as they prepare for the future. On the following pages we have set out some of the key achievements of each company and each business unit within the group.

We have made significant progress in meeting our core objectives. In particular:

These actions have helped both strengthen the quality of what we provide and the capabilities of our staff in being able to meet the needs of our clients.

This year we have also continued to adapt our ways of working as we adjust following the pandemic, for example, by allowing staff to adopt flexible or hybrid working options. We have also sought to provide remuneration packages which are competitive in the sector and markets in which we operate and to develop a culture which inspires, builds creativity and provides resilience in the face of difficult business conditions.

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

This year our financial performance has been to return a surplus of £28k. While our retained profit for the year is lower than last year, we consider our reserves remain at an appropriate level for the organization at £1,586k.

Finally, a thank you from all the trustees for the continued efforts and commitment of all our staff during the year, and to our clients and all the other stakeholders with whom we interact for their ongoing financial and other support without which we could not succeed.

Signed: David Grace Adirupa Sengupta Chair, CPCT Group Chief Executive Officer

2. About Common Purpose

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

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

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

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

In addition to its own activities, the Trust oversees the activities carried out through its subsidiary organisations, 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 Trust is to drive social purpose and have a positive and sustained impact on the quality of leadership by:

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

The vision that shapes our work is to give people from different sectors, 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 amidst continuing uncertainty in relation to the impacts of the global COVID-19 pandemic. Our plans included:

The impacts of COVID-19 started to ameliorate during the year. Based on client demand, we began to offer in-person programmes again during the second half of the year. While our main open programmes (The Common Purpose Programme) remained fully online, other programmes saw a more mixed take up of in-person offerings, particularly in the final few months of the financial year.

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

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

6. Plans for 2022/23

We currently expect to continue to deliver a mix of online and in-person programmes during the coming year, with interest in blended, hybrid learning emerging as the impact of the COVID pandemic continues to wane and acceptance of online learning grows.

Our core open programme, TCPP, will continue to run in most of our geographies. The two global senior leaders’ programmes, January and ASEAN Leadership Programme, will also continue. While these programmes were run very successfully during 2020/21, we saw lower demand for places as participants were looking for more local offerings.

We expect our Student programmes to increasingly move back to in-person from online, and we are expecting to start delivering programmes for university staff in addition to those for students.

We have decided to explore whether Common Purpose should develop an offering in education technology. This initiative will be developed to minimal viable product stage during the first half of 2022/23, after which we will decide whether to take it to market. Preliminary interest from clients suggests this will be a welcome offering.

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

We intend to deliver further American Express Leadership Academies but will be working closely with the American Express Foundation on re-scoping and re-designing these to continue to attract participants from as wide a field as possible.

Our work with MAVA will end in October 2022 as the fund is wound up. We expect to continue to focus on environment-related work, some of which we expect to emerge from our long association with MAVA. After a year of piloting a new environmental programme, we will also continue to develop our SkyBlue programme focused on environmental leadership.

7. Performance and plans of individual subsidiaries

7.1. Common Purpose Limited

Objectives for the year

The key objectives for 2021/22 were to:

Review of activities

a) UK Business Unit

The UK business unit ran TCPP, its online programme for emerging leaders and senior leaders a total of 12 times during the year. Although it was run fully online, cohorts on programmes were drawn from three broad geographic areas: London, the Midlands and the South-West; the Northern Powerhouse; and Scotland and Northern Ireland.

The programmes reached 529 participants, in comparison to 535 participants on the online programmes in 2020/21. Full bursary places were offered to 100 participants with a particular emphasis on investing in Black, Asian and Minority Ethnic participants.

The UK business unit’s place-based Legacy programme for young leaders continued to go from strength to strength, running seven programmes in five locations during the year involving 347 young people.

The Bitesize product, which gives buyers a cost-effective way of testing our approach, continued to provide an effective entry point for organizations into the wider customized offer. The UK business unit also delivered customized programmes for a range of clients, including Bradford City Council, Newcastle Hospitals, Asthma and Lung Foundation UK, the Scottish Government, Newcastle University, the Environment Agency.

b) EMESA

The EMESA business unit is responsible for delivering customized programmes for large commercial organizations, together with the flagship January global programme. In 2021/22, it reached 1,419 participants. The company continued to deliver most of its programmes online, however in response to customer demand, in-person programmes began to make a come-back in the second half of the year.

c) IT and Support

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.

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

The company made a loss in 2021/22 of £7.9k (2020/21: profit of £358.6k). The company’s turnover increased significantly to £2,117.4k from £1,743k in 2020/21, but salary and delivery costs also increased, more than offsetting the increase in revenue. The results reflect the impact of the business reorganization in January 2021, where with income and costs from CPUK started to be booked in the company from February 2021.

The company’s loss for the year marks a small setback for the business but reflects disappointing sales in the January programme and lower than budgeted revenue from large corporates.

The UK business unit saw a strong positive result on open programmes, however income from customized programmes was 20% below budget.

The salary cost to the company rose to £924k from £525k in 2020/21 due to including a full year of salary for the UK team (in 2020/21, only six months was booked in the company). The company’s cost of delivering programmes increased to £404k from £357.4k in 2020/21. This cost is made up of programme delivery costs such as venue hire and staff travel (£66.8k compared to £18k in 2020/21) and the cost of using staff from the central delivery team (£180.4k compared to £115.6k in 2020/21).

Overhead costs increased by 37% to £190.9 from £120.7k as travel increased towards the end of the year and the company met the costs of staff in India who moved under this business unit.

The company repaid the outstanding balance in November 2021 of the loan provided by its parent in 2016.

Plans for 2022/23

The company will continue to focus on its existing key areas:

7.2. 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.

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

Objectives for the year

The key objectives for 2021/22 were to:

Review of activities

The pandemic continued to impact programming in different ways, times and locations across the whole financial year. At the start of the financial year on 1 August 2021, we were planning an increasing number of in-person programmes for UK universities to take place in the autumn term and either side of Christmas. The arrival of the Omicron variant meant that we had to pivot these programmes back to digital delivery. Given the innovation we had driven in the financial year, we were well-placed to make these adjustments and continue to support our clients and their students. The continued COVID restrictions in Australia and Hong Kong meant that we continued to deliver online in these countries for most of the financial year, with only a few opportunities to run parts of programmes in-person.

As conditions eased during the northern hemisphere spring of 2022, we were able to plan the return of our in-person outbound programmes for the summer and were very pleased to see those go through to successful delivery. We took UK students to Bangalore and Istanbul, and South Korean students to the UK, as well as being able to run a range of in-person programmes for students in the UK.

We were able again this year to continue to innovate, giving us the flexibility to offer in-person and online programmes, and ensuring that large numbers of students were able to benefit from our programmes. Across the year 6,552 students completed our programmes, 2,407 on asynchronous courses, 3,766 on synchronous online programmes and 379 on synchronous in-person programmes.

Against continuing difficult and volatile economic conditions, we have also been able to deliver a financial surplus for 2021/22.

We measure the students’ development of key leadership skills as the core metric of our programme’s success and efficacy. 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 5.31 across the year, showing the value the students place in their experience with us.

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DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

Plans for 2022/23

The company will to focus on its existing key areas:

In addition to this ongoing work, the board decided in 2022 to invest in a new online offering to stay current and meet increased client demand. It will also allow the Charity to access large new markets with great appetite for leadership development, including Africa and the Indian sub-continent.

7.3. Common Purpose Asia-Pacific Limited

Objectives for the year

CPAPL’s main objective for 2021/22 was to return the company to surplus following the financial impact of COVID the previous year. This was to be achieved by diversifying its funding sources and offering programmes more tailored to the local market.

Review of activities

CPAPL’s highlight of 2021/22 was tendering successfully for a grant from Yayasan MENDAKI (Council for the Development of Singapore Malay/Muslim Community). MENDAKI assists students and individuals with education and training to improve their resilience and adaptability. We were awarded a three-year grant to provide leadership training under one of MENDAKI’S programmes.

The ASEAN Leadership Programme ran once again but with lower numbers than we would ideally have liked (12 compared to 22 in 2021). The programme was run in person in 2021/22, having been run online the previous year. CPAPL also ran its first TCPP in Singapore with 13 people attending. The company ran customised programmes for six major companies.

Plans for 2022/23

We are continuing to deepen our relationships in Singapore and beyond. Having brought the company back from its loss in the previous year, the coming year will be one of rebuilding our reserves to ensure the continued viability of the company. With regard to programmes, we will continue to focus on:

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DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

  1. Review of financial activities

Overview of financial position

Total income for the year 2021/22 was £5,369.1k (2020/21: £4,374.7k), representing an increase of 22.7% on the previous year. Income from all types of programmes increased except customised programmes, which fell by 4% over the previous year. Unrestricted income increased by 10.6%; restricted income by 113.4%. The increases in revenue reflected both the more streamlined sales efforts of the organization, plus a return to a full annual grant from a key donor after a hiatus during the COVID pandemic.

The contribution made from donated goods and services remained broadly in line with 2020/21 (£222.2k against £227.3k in 2020/21). Donated goods and services include time offered by speaker and contributors, as well as programme venues, offices and other pro bono support provided by several organizations. 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 £5,431k (2020/21: £4,259.6k), an overall increase of 25% across both restricted and unrestricted cost. Regarding expenditure on unrestricted costs:

The net movement in overall funds for the year ended 31 July 2022 was a surplus of £28.1k (2020/21: surplus of £115.1k). The net movement in unrestricted funds was an increase of £35k (2020/21: increase of £441k) and a reduction in restricted funds of £7.3k (2020/21: fall of £326k. Details of the results for the year are given in the Statement of Financial Activities on page 19.

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 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 more bursary and part bursary places on our courses. During 2021/22, donated goods and services amounted to £222.2k compared with £227.3 in 2020/21. We gratefully acknowledge the support of the many organisations that donated their services during the year.

Intercompany guarantee

As mentioned above, it is the intention of the trustees to close CPUK during the 2022/23 financial year. CPUK has intercompany debtor balances with: CPSE for £175.6k, CPI for £13.1k and CPL for £288.5k. CPCT has provided guarantees to these companies to meet the sums CPUK owes and during 2022/23, the balances will be repaid, with no overall impact on the consolidated financial position of the group.

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 Trust’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 might limit the amount available to be spent on achieving those objectives.

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COMMON PURPOSE CHARITABLE TRUST

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YEAR ENDED 31 JULY 2022

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, unrestricted reserve was slightly below this level at £1,143.2k. The trustees to do no consider this to be an issue and unrestricted reserves are budgeted to exceed £1,200k in 2022/23.

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 Charity’s UK subsidiary, Common Purpose UK, held negative reserves at the end of 2021/22. The trustees decided in 2020/21 that there was little realistic chance of returning CPUK to positive reserves, and therefore made the decision to cease activity in the company and transfer its business to another company within the group (CPL).

The level of reserves is reported each month in line with the monthly accounts’ preparation. The level of unrestricted and restricted reserves is also 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.

The make-up of reserves as at 31 July 2022 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
883.8
90.6
226.1
(278.3)
561.2
102.6		 441.0
90.6
226.1
(278.3)
561.2
102.6		 442.8
0.0
0.0
0.0
0.0
0.0
1,586.0
1,143.2
442.8

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

10. Business re-organizations

At the time of preparing the 2020/21 accounts, CPL was in the process of acquiring the shares of Civilia India Educational Programmes Pvt Ltd (CIEP). CIEP, based in Bangalore, has previously been an independently owned and operated licensee, and therefore outside the control of the group. The CPCT board’s wish is to regularize the shareholding structure both of CIEP and our licensee in Hong Kong (Common Purpose Hong Kong Ltd, CPHK). While the process of buying the shares of CIEP began in 2020/21, we have been unable to complete the purchase due to regulatory considerations. The intention is, however, to proceed with this purchase.

CPHK was brought into the group on 4 August 2022.

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 Jonathan Donner Vandana Saxena Poria David Grace (Chair) David Robinson Sanjeev Gupta Shuvo Saha Peter Kulloi Janis Sanders Lauren Le Franc (resigned 25 Nov 2021) Albert Tucker

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

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.

b. Policies and procedures for the induction of trustees

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

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

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 convened nine times during the year. Areas of review included:

ARC members are Jan Sanders (Chair) and Sanjeev Gupta, with the Group CEO and Finance Director/Group Company Secretary attending. 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 £1,077k (2020/21: £1,141.2k). Key management personnel includes heads of five business units and four support teams (Operations, Finance, Marketing and IT). Support costs are incurred 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 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 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

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YEAR ENDED 31 JULY 2022

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 Audit and Risk Committee regularly reviews the 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, and the appropriate mitigation strategy and actions for each risk, being closely monitored. The risk register is also presented to the board semiannually.

Major risks discussed and addressed at board level include:

18. Global economic conditions and impact of COVID-19 (Coronavirus)

The trustees have approved these accounts during a time of both global and UK economic uncertainty. While the impacts of COVID-19 appear to be significantly reduced, global inflation and energy security is creating highly uncertain economic conditions.

In November 2022 the trustees formally reviewed an updated cash flow forecast to December 2023 for the group. 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 global economic situation any forecast of future activity levels and thus cash flow is inherently uncertain. The key uncertainty is the extent to which uncontracted income will be realised while the threat of recession hangs over many of our key markets. 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 any unforeseen reduction in activity levels, 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.

The Trust has no investments or other assets that have been significantly impaired as a result either of COVID-19 or general economic conditions. The Trust’s reserves have remained stable during 2021/22. The trustees regularly review and update the Trust’s reserves policy and risk register to mitigate and manage as far as practicable the impacts of the current economic situation.

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2022

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.

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 23 December 2022.

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

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

14

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

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 2022 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.

Opinions on other matters prescribed by the Companies Act 2006

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

15

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

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 page 14, 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 Company and Charity Law applicable in England and Wales, 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 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:

16

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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) For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date: 23 December 2022

17

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

COMMON PURPOSE CHARITABLE TRUST

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

FOR THE YEAR ENDED 31 JULY 2022

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
222.2
0.0
222.2
951.1
0.0
951.1
1,096.2
0.0
1,096.2
579.5
1,102.2
1,681.7
1,190.6
0.0
1,190.6
0.0
0.0
0.0
142.9
0.0
142.9
84.4
0.0
84.4
2021/22






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
4,266.9
1,102.2
5,369.1
1,150.8
0.0
1,150.8
1,115.0
0.0
1,115.0
539.2
1,109.5
1,648.7
1,170.2
0.0
1,170.2
256.3
0.0
256.3










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
4,231.5
1,109.5
5,341.0		 3,447.2
812.4
4,259.6
35.4
(7.3)
28.1
0.0
0.0
0.0
35.4
(7.3)
28.1
1,107.8
450.1
1,557.9		 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
1,143.2
442.8
1,586.0		 1,107.8
450.1
1,557.9

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.

.

18

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2022

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
29.6
37.6
41.3
41.7
70.9
79.3
1,700.2
1,338.7
1,249.7
2,427.9
2,949.9
3,766.6
(1,108.2)
(1,888.0)
1,841.7
1,878.6
(326.6)
(400.0)
(326.6)
(400.0)
1,586.0
1,557.9
442.8
450.1
1,143.2
1,107.8
1,586.0
1,557.9
2021
2022
2,949.9
(1,108.2)
(326.6)

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 23 December 2022 and were signed below on its behalf by:

 David Grace Trustee  Jan Sanders Trustee

19

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

BALANCE SHEET (TRUST ONLY)

AS AT 31 JULY 2022

2022 2021
Note £000s £000s £000s £000s
FIXED ASSETS
Tangible fixed assets 8 31.5 40.2
31.5 40.2
CURRENT ASSETS
Debtors 9 1,068.2 637.9
Cash at bank and in hand 1,056.2 2,280.3
Total current assets 2,124.4 2,918.2
Creditors: amounts falling due
within one year 10 (945.4) (1,641.4)
Net current assets 1,179.0 1,276.8
Creditors: amounts falling due in more
than one year		 11 (326.7) (400.0)
Net long term liabilities (326.7) (400.0)
TOTAL ASSETS LESS LIABILITIES 883.8 917.0
RESERVES
Restricted funds 442.0 446.9
Unrestricted funds 441.8 470.1
883.8 917.0

The Common Purpose Charitable Trust made a loss before consolidation of £33.2k (2020/21: loss of £332.3k).

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 23 December 2022 and were signed below on its behalf by:

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

David Grace Trustee

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

20

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED CASH FLOW STATEMENT

YEAR ENDED 31 JULY 2022

2022 2021
£000s £000s
Net cash (outflow) / inflow from operating activities 12 (1,061.9) 417.5
Returns on investments and servicing of finance
Interest received 0.0 0.0
Capital expenditure
Payments to acquire tangible and intangible fixed assets (51.0) (3.9)
(Decrease) / increase in cash (1,178.2) 1,371.7
Cash at bank and in hand at start of year 2,427.9 1,056.2
Cash at bank and in hand at end of year 1,249.7 2,427.9

The accompanying notes on pages 22 to 37 form part of the financial statements.

The balance of £1,249.7k cash at bank and in hand is made up as follows:

Cash
Bank overdraft utilised
Total		 2021/22
2020/21
£000s
£000s
1,337.7
2,427.9
(88.0)
0.0
£1,249.7
£2,427.9

21

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

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 value, 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 is required in relation to recognition of accrued income. The Trust accrues income on the following basis where it is contracted in one financial year, but the programme is being delivered in the following financial year:

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 of the Trust.

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 note 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.

22

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

In line with FRS 102 Charities SORP, where donors impose timelines in relation to delivery of their programmes, restricted income is deferred rather than recognized in the year of receipt, as this represents a precondition set by the donor. It also better matches income to the period of expenditure to which is relates.

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 audit and professional services fees.

(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 prepared on a going concern basis which assumes that the Charity will continue in business for the foreseeable future and, in assessing the Charity’s viability as going concern, the directors have had regard to a minimum period of 12 months from the date of approval of the accounts.

23

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

The accounts are approved during a period where the long-term economic and social impacts of the coronavirus COVID-19 appear to be lessening. However, the conflict in Ukraine, higher global energy prices and increasing inflation, particularly in the UK, have all contributed to great business uncertainty as the year draws to a close.

This cash flow forecast is review by the trustees and shows the Trust staying cash flow positive for the next 12 months. The trustees believe therefore that the Charity has sufficient resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. In making this assessment, the trustees have not identified any material uncertainties

2. NET MOVEMENT IN FUNDS – Group and Trust

The net movement in funds is arrived at after charging:
Depreciation and amortisation
Auditors’ remuneration for audit services
Auditors' remuneration for non-audit related services
Operating lease rentals - land and buildings
Operating lease rentals – equipment		 2022
2021
£000s
£000s
51.3
31.5
29.0
31.9
6.7
3.3
107.1
107.1
30.4
30.4

24

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

3. STAFF NUMBERS AND EMOLUMENTS - Group and Trust

2022 2021
Number Number
The average number of persons employed by the group
during the year was:
Programme sales and delivery 71 59
Operational support 12 16
83 75
Staff costs £ £
Wages and salaries 3,020,645 2,714,651
Social security costs 285,289 286,575
Employer Pension Contribution 91,699 74,041
3,397,633 3,075,267
The number of employees whose emoluments for the year
fell within the following bands:
Number Number
£60,000 - £69,999 5 3
£70,000 - £79,999 2 2
£80,000 - £89,999 2 2
£90,000 - £99,999 0 1
£100,000 - £109,999 2 0
£110,000 - £119,999 0 2
Over £130,000 1 1
Total 12 11
Aggregate emoluments of the Senior Management Team
£ £
Salary 949,673 994,512
Social security costs 108,956 113,702
Pension 24,432 32,975
1,083,061 1,141,189

Termination payments of £12,000 were made during the year (2020/21: none).

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 2021/22 the senior management team consisted of ten people employed by CPCT, and one employed by CPAPL. Employer pension contributions relate to defined contribution arrangements only and these are charged to expenditure as they fall due.

25

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

4. RESULTS FROM COMMON PURPOSE CHARTIABLE TRUST TRADING SUBSIDIARIES

4a. RESULTS OF TRADING SUBSIDIARY

The group has a trading subsidiary company, Common Purpose Limited. CPL is a wholly owned subsidiary of The Common Purpose Charitable Trust and is incorporated in the UK. It manages licensing arrangements, the provision of services to the Common Purpose licensees, the group’s commercially based work and open programmes in the UK.

The company was incorporated in July 2013 and became active on 1 August 2015 when its business was transferred from Common Purpose Customised Ltd. It covenants its taxable profits to The Common Purpose Charitable Trust.

Profit and loss account
Turnover
Administrative expenses
Retained profit / (loss)
Balance sheet
Fixed assets
Current assets
Current liabilities
Surplus / (Deficit) on reserves		 2022
2021
£
£
2,117.4
1,743.0
(2,125.3)
(1,384.5)
Common Purpose Limited
(7.9)
358.5
39.4
30.9
943.6
757.6
(756.8)
(554.5)
226.2
234.0

4b. RESULTS OF CHARITABLE SUBSIDIARIES

The Common Purpose Charitable Trust has one active UK charitable subsidiary, Common Purpose Student Experiences Limited (company no. 09526939), together with a subsidiary in Singapore (Common Purpose Asia Pacific Ltd). Its two other UK subsidiaries, Common Purpose UK (company no. 03556983, charity no. 1023384) and Common Purpose International (company no. 03207453, charity no. 1056573) are no longer actively operating. The negative reserves of CPUK will be eliminated during the new financial year, and the surplus reserves of CPI gifted to the parent Trust.

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

26

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

Income
Income from charitable activities
Net cost recoveries from other group entities
Total income
Expenditure
Charitable activities
Net deficit
Surplus covenanted to CPCT
Assets
Liabilities
Net funds
Income
Income from charitable activities
Net cost recoveries from other group entities
Total income
Expenditure
Charitable activities
Net movement in funds
Surplus covenanted to CPCT
Assets
Liabilities
Net funds		 2022
2021
£000s
£000s
0.0
371.5
0.0
117.9
0.0
489.4
7.3
710.0
(7.3)
(220.6)
0.0
0.0
7.4
128.5
(291.6)
(405.4)
(284.2)
(276.9)
Common Purpose UK
2022
2021
£000s
£000s
8.0
111.8
0.0
88.9
Common Purpose
International
8.0
200.7
7.4
217.5
0.6
(16.8)
0.0
90.6
91.2
0.0
(1.2)
90.6
90.0

27

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

Income
Income from charitable activities
Net cost recoveries from other group entities
Total income
Expenditure
Charitable activities
Net movement in funds
Surplus covenanted to CPCT
Assets
Liabilities
Net funds		 2022
2021
£000s
£000s
1,135.6
1,017.6
120.5
12.8
Common Purpose Student
Experiences Ltd
1,256.1
1,030.4
(1,184.3)
(789.6)
71.8
240.8
0.0
877.4
711.6
(310.7)
(216.7)
566.7
494.9
Income
Grant from Common Purpose Charitable Trust
Income from charitable and trading activities
Net cost recoveries from other group entities
Total income
Expenditure
Charitable activities
Net movement in funds
Assets
Liabilities
Net funds
Common Purpose		 2022
2021
2022
2021
£000s
£000s
SG $000s
SG $000s
0.0
0.0
0.0
0.0
394.5
174.5
707.4
311.4
51.5
64.4
92.4
115.0
446.0
238.9
799.8
426.4
(446.9)
(285.8)
(801.5)
(510.1)
(0.9)
(46.9)
(1.7)
(83.7)
475.0
238.0
851.7
424.7
(352.5)
(114.0)
(632.1)
(203.4)
122.5
124.0
219.6
221.3
Asia Pacific Ltd

28

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

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

No emoluments were paid during the year (2020/21: nil). Nil expenses were reimbursed to trustees (2020/21: nil).

6a. ANALYSIS OF EXPENDITURE

Open programmes
Student programmes
Grants
Customised programmes
Other trading activities		 Direct costs
Support Costs
Total 2022
£000s
£000s
£000s
822.2
328.6
1,150.8
736.2
378.8
1,115.0
1,349.5
299.2
1,648.7
758.9
411.3
1,170.2
177.7
78.6
256.3		 Direct costs
Support Costs
Total 2021
£000s
£000s
£000s

604.4
250.9
855.3

539.5
335.5
875.0

960.3
236.5
1,196.8

683.6
423.6
1,107.2

146.7
78.6
225.3
3,844.5
1,496.5
5,341.0
2,934.5
1,325.1
4,259.6

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
299.8
20.4
8.4
328.6
345.6
23.5
9.7
378.8
281.7
12.4
5.1
299.2
375.3
25.5
10.5
411.3
71.7
4.9
2.0
78.6
2022		 Central
support costs
Licence fee
Governance
Total
£000s
£000s
£000s
£000s

200.1
43.7
7.2
251.0

267.5
58.4
9.6
335.5

173.2
59.0
4.3
236.5

337.7
73.7
12.1
423.5

62.6
13.7
2.3
78.6
2021
1,374.1
86.7
35.7
1,496.5
1,041.1
248.5
35.5
1,325.1

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.

Licence fee represents the charge to licensees for using the group’s intellectual property and IT services. This figure reduced in 2021/22 because of moving the UK business out of a separate licensee (CPUK) into CPL, the company that raises the licence fee.

29

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

7. INTANGIBLE FIXED ASSETS - GROUP

COST
At 1 August 2021
Fully amortized to date
Additions
At 31 July 2022
AMORTISATION
At 1 August 2021
Fully amoritized to date
Charge for year
At 31 July 2022
NET BOOK VALUE
At 31 July 2022
At 31 July 2021		 Software
Costs
£000s
99.1
(33.0)
0.0
66.1
65.0
(33.0)
6.6
38.6		 Group
Trademarks
£000s
182.9
(182.4)
4.8
5.3
184.1
(182.4)
1.6
3.3		 Investments
£000s
3.0
0.0
0.0
3.0
0.0
0.0
3.0
3.0		 Total
£000s
285.0
(215.4)
4.8
74.4
249.1
(215.4)
11.2
44.9
27.6
34.2		 2.0
(1.2)		 0.0
3.0		 29.6
36.0

30

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

8. TANGIBLE FIXED ASSETS – GROUP

COST
At 1 August 2021
Disposal
Fully depreciated to date
Additions
At 31 July 2022
DEPRECIATION
At 1 August 2021
Fully depreciated to date
Charge for year
At 31 July 2022
NET BOOK VALUE
At 31 July 2022
At 31 July 2021		 Leasehold
improvements
£000s
28.3
0.0
0.0
0.0
28.3
17.0
0.0
3.0
20.0
8.3
11.3		 Group
Computer
equipment
Total
£000s
£000s
99.7
128.0
0.0
0.0
(88.7)
(88.7)
46.2
46.2
57.2
85.5
75.8
92.8
(88.7)
(88.7)
37.1
40.1
24.2
44.2
33.0
41.3
23.9
35.2

Included in the above table are assets related to the parent charitable trust with a net book value of £31.4k (2020/21: £40.2k).

31

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

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
2022
2021
£000s
£000s
1,063.2
752.1
5.4
(5.0)
629.6
588.4
1.44
2.7
0.6
0.5
0.0
0.0
0.0
0.0		 2022
2021
£000s
£000s

150.3
126.3
14.2
5.1

154.3
164.3

0.0
0.0

0.0
0.0

749.4
234.5

0.0
107.7
1,700.2
1,338.7
1,068.2
637.9

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Sundry creditors and accruals
Other taxes and social security
Deferred income
Amounts due to group undertakings		 Group Trust
2022
2021
£000s
£000s
613.5
403.0
223.5
225.7
271.2
1,259.3
0.0
0.0		 2022
2021
£000s
£000s

387.8
234.7

100.8
108.5

1.5
1,012.4

455.3
285.8
1,108.2
1,888.0
945.4
1,641.4

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.

32

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

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

Net increase / (decrease) in funds
Depreciation and amortisation
Loan funds incoming
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash (outflow) / inflow from operating activities		 2022
2021
£000s
£000s
28.1
115.1
51.3
31.5
0.0
(400.0)
(361.5)
(391.5)
(779.8)
1,062.5
(1,061.8)
417.6
Group

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

Cash at bank and in
hand		 2021
£000s
2,427.9
2,427.9		 Group
Change in
year
£000s
(1,178.2)
(1,178.2)		 2022
£000s
1,249.7
1,249.7

33

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2022
Fixed assets
Current assets
Current liabilities
Long term liabilities
2021
Fixed assets
Current assets
Current liabilities
Long term liabilities		 Unrestricted
Funds
£000s
70.8
2,507.2
(1,108.2)
(326.6)
1,143.2
Unrestricted
Funds
£
79.3
3,316.5
(1,888.0)
(400.0)
1,107.8		 Restricted
Funds
Total Funds
£000s
£000s
0.0
70.8
442.8
2,950.0
0.0
(1,108.2)
0.0
(326.6)
442.8
1,586.0
Restricted
Funds
Total Funds
£
£
0.0
79.3
450.1
3,766.6
0.0
(1,888.0)
0.0
(400.0)
450.1
1,557.9

34

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

15. RESTRICTED FUNDS

15.RESTRICTED FUNDS
2022
American Express Foundation
Baillie Gifford
British Council Bangladesh
Creative Scotland
Grants for the development of Europe 101 programme
Grants for the development of UK 101 programme
Grants for Women Emerging from Isolation programme
Heffner Rosenwald Foundation
Islamic Relief Worldwide
MAVA Foundation
TOTAL
2021
American Express Foundation
Asfari Foundation
Islamic Relief Worldwide
British Council Bangladesh
MAVA Foundation
Grants for Women Emerging from Isolation
Creative Scotland
Grants for the development of UK 101 programme
TOTAL		 Brought
forward
Income
Expenditure
Transfers /
gains
Carried
forward
(0.0)
586.7
479.2
107.5
0.0
54.0
54.0
0.0
2.5
54.3
56.8
0.0
0.0
10.0
10.0
0.0
0.0
31.1
28.5
2.6
71.3
0.0
71.3
0.0
0.0
65.5
26.6
38.9
0.0
100.3
100.3
0.0
0.0
8.0
8.0
0.0
376.3
417.9
500.4
293.8
450.1
1,327.8
1,335.1
0.0
442.8
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

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:

2022 2021
Land and Land and
buildings buildings
Within: £000s £000s
more than one year and less than 5 years 303.4 321.3

17. RELATED PARTY TRANSACTIONS

During the year, no directors or management entered into any related party transactions. There were no other related party transactions in the year.

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:

35

DocuSign Envelope ID: 6D2274C4-D180-4822-A545-868F77F7D2C2

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

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		 2022
2021
£000s
£000s
219.4
66.0
237.1
51.3
306.1
273.6
(12.0)
(12.0)
(304.2)
42.1
(89.1)
(77.6)
(357.5)
(343.4)
0.0
0.0

36