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2023-07-31-accounts

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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

CONSOLIDATED REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

Company registered number: 2832875 Charity registered number: 1023384

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

CONTENTS Page
Chair and Chief Executive’s report 1
Trustees’ report 2 - 15
Independent Auditors’ report 16 – 18
Consolidated statement of financial activities 19
Consolidated balance sheet 20
Trust balance sheet 21
Consolidated cash flow statement 22
Notes to the consolidated financial statements 23 – 36

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

COMMON PURPOSE CHARITABLE TRUST

CHAIR AND CHIEF EXECUTIVE’S REPORT

YEAR ENDED 31 JULY 2023

1. Chair and Chief Executive’s report

This year has again been one of continuing uncertainty and disruption with war, economic and political difficulties and climate change all combining to highlight the fragility of the world in which we live and work. Whilst the impact of these issues varies by country, overall the challenges and need of acting as an effective and inspiring leader have never been greater.

For a social enterprise like Common Purpose this makes for a very difficult and challenging business and operating environment. At the same time, however, it means the relevance and need for what we offer has never been greater. This has been reflected in a growing demand for our services, albeit the delivery mechanisms and ways in which we now need to operate have changed post Covid as we continue to adapt to hybrid ways of working and delivering what we do in different ways.

The need for good leadership – of leaders who can operate across boundaries remains clear. This has further helped to drive the continued interest in our programmes, as organisations and participants alike recognise and understand that incisive, cross sector and intergenerational leadership are critical components in leaders being able to make a positive material difference.

The Common Purpose group and our staff have responded well to these challenges:

While the financial results for the year have been disappointing, due mainly to challenges facing our student business and the investment in Evolve Careers, our pipeline of work remains strong, and we remain committed to building our reserves back up to our target level over the next few years. The results also reflect other investments we have made to position Common Purpose as the best placed organisation to contribute to solving the challenges of leadership in the years ahead.

In terms of our non-financial objectives, the following highlight the good progress made during the year:

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COMMON PURPOSE CHARITABLE TRUST

CHAIR AND CHIEF EXECUTIVE’S REPORT

YEAR ENDED 31 JULY 2023

These results help demonstrate the quality of what we provide and the capabilities of our staff in being able to meet the needs of our clients.

Finally, the trustees appreciate that none of the above would have been possible without both the continued efforts and commitment of all our staff during the year, and also the input and help we receive from our many clients, supporters, advisory board members, licensees and all the other stakeholders with whom we interact. We thank everyone.

Signed: . DocuSigned by: David Grace DocuSignedE7AF27979AC74DA...| L U by: | G Adirupa Sengupta 378B34CBBEOF4DE... Chair Group Chief Executive Officer

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

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 2023 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. 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.

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

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

2. The role of the Trust

In addition to its own activities, the Trust oversees the activities carried out through its subsidiary organisations, and is mainly 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’.

3. 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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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

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:

4. Achievements and performance

As noted in the Chair and Chief Executive’s report above, the objectives for the year were formulated against a backdrop of uncertainty and the disruption of war, economic and political difficulties. Our plans included:

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

5. Plans for 2023/24

Our mix of in-person and online programmes is now well established, and we will continue to deliver under this model during the coming year.

Our core open programme, TCPP, will continue to run in most of our locations. We have significantly reframed our Global Leaders Programme (formerly called January) to keep it relevant and attractive to senior leaders; our ASEAN Leadership Programme (ALP) will also continue albeit at a more modest scale; and we have taken over running the Africa Venture (AV) programme from our South African licensee to scale it up and locate it more centrally in Africa. However, we will keep testing the two

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YEAR ENDED 31 JULY 2023

regional propositions – ALP and AV - as we take them to market and respond to relevant customer needs.

Following a very difficult year for our Global Student business, we have re-organised the business along geographic lines across the UK and Asia-Pacific (Singapore, Hong Kong and Australia), with the largest and more global universities sitting with our Global Partnerships team. Our expectations for 2023/24 are more modest than in the previous year, however we believe this new approach will better align our customers’ needs to more local teams and help support more effective delivery of our offering. We will also continue to develop programmes for university staff.

Our offering in EdTech will continue to develop. We created a new company, Common Purpose Evolve Careers Ltd, dedicated specifically to this new business. This company began trading on 1 August 2023. We anticipate growing revenue particularly in the second half of 2023/24 as the offering is refined and marketed internationally.

We have strengthened our relationship with the American Express Foundation and in 2023/24 will deliver Leadership Academies in Asia-Pac (out of Sydney/Australia), EMEA (out of London/the UK) and the Americans (out of New York/the US).

Our environment-related work is growing, and we are seeing firm interest from several large foundations to support our programmes. We expect to deliver some scale programmes on environmental leadership during 2023/24.

Our Global Partnerships team will continue to work closely with large multinational corporations to support their management and staff’s leadership journey.

6. Review of financial activities

Overview of financial position

Total income for the year 2022/23 was £5.5m (2021/22: £5.4m), slightly up the previous year. Income from all types of programmes increased except student programmes, which fell by 22% over the previous year. Unrestricted income was in line with 2021/22; restricted income rose by 11.7%. The maintenance of unrestricted revenue reflected both the more streamlined sales efforts of the organization, particularly with our larger global clients and a focused effort in UK open programmes, and also an increase level of funding from a key donor. The fall in student programmes reflected difficult economic conditions for universities around the world. The increase in restricted income showed our deepening engagement with key foundations who support our work and to whom we remain very grateful.

Expenditure was £6.2m (2021/22: £5.4m), an overall increase of 17% across both restricted and unrestricted costs. Regarding expenditure on unrestricted costs:

Whilst the group’s revenues therefore held up well for the year under review, the increase in expenditure has meant the group incurring a loss of £704.2k for the year (2021/22 surplus of £28.1k). This is a disappointing result, and the trustees recognise the need to ensure that as far as possible the group makes a return to surplus in the coming year. The net movement in unrestricted funds was a fall of £700.2k (2021/22: increase of £35k) and there was a small reduction in restricted funds of £4k (2021/22: fall of £7.3k).

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DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

Details of the results for the year are given in the Statement of Financial Activities on page 19.

Donated goods and services

CPCT benefits from significant support in kind locally and nationally to help keep expenditure to a minimum. The contribution made from donated goods and services has continued to fall following the Covid 19 pandemic and the move to online programmes. With the challenging economic conditions in the UK, it has become increasingly difficult to obtain hosted venues for our in-person programmes. Hosted office space was relinquished during the pandemic, and CPCT has only retained its leased head office in London. The value of donated goods and services in 2023 was £156k compared with £222.2k in 2021/22.

7. Performance and plans of individual subsidiaries

7.1. Common Purpose Limited

Objectives for the year

The key objectives for 2022/23 were:

Review of activities

a) UK Business Unit (UKBU) The Common Purpose Programme (TCPP) is a core element of the UKBU work. Initially a fully online programme, from March 2023 this became a blended programme (i.e., delivered real-time online and in-person) with two distinct cohorts, one for high potential leaders, the other for established senior leaders. We ran programmes for both cohorts twice a year, in the autumn and spring, and in three different geographies: London, Midlands and the South-West; the Northern Powerhouse; and Scotland and Northern Ireland.

TCPP programmes in 2022/23 involved 528 participants, in comparison to 522 participants on programmes in 2021/22. As part of our investment in developing the pipeline of under-represented leaders, full bursary places were given to 67 participants, with a particular emphasis on Black, Asian and Minority Ethnic participants. Most of these places are funded by Common Purpose itself but we would also like to thank Baillie Gifford and Creative Scotland for their ongoing support of bursary places in Scotland, Community First Yorkshire for its help in Yorkshire and Lloyds Banking Group.

Legacy programmes for young leaders continued to be an important part of the UKBU portfolio and in 2022/23 six programmes were delivered in six locations – Newcastle, Sunderland, Leeds, Birmingham, Bristol and Greater Manchester. This involved 293 young people aged 18-25. With the support of our local sponsors, we were able to offer programme places free-of-charge to all young people in those locations.

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YEAR ENDED 31 JULY 2023

The Bitesize product, which gives buyers a cost-effective way of testing our approach, continued to be very popular and provides an effective entry point for organizations into the wider customized offer. The UKBU also delivered customized programmes for a range of clients including PwC, The University of Edinburgh, Argyll, RSM, Glasgow Life, the Royal Pharmaceutical Society of Great Britain and Westminster City Council.

During 2022/23 the UK Business Unit also took over running Common Purpose’s flagship international Global Leaders programme, formerly January.

The P&G business unit is responsible for delivering customized programmes for large commercial organizations. In 2022/23, it ran programmes for four major international corporates. Programmes were mostly delivered in person at the request of clients, and were run in London, New York and Mumbai, with some online activity as well.

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.

The company made a profit in 2022/23 of £146.7k (2021/22: loss of £7.9k). The company’s turnover increased to £2,367.9k from £2,117.4k in 2021/22. Licence fee income fell by 8% reflecting lower revenues from three major licensees. Salary costs were 10% lower in 2022/23 than the previous year but delivery costs increased by over 60% reflecting the scale of the return to in-person delivery.

The salary cost to the company fell to £836k from £924k in 2021/22 as some natural attrition occurred and leavers were not immediately replaced. The company’s cost of delivering programmes increased to £662k from £404k in 2021/22. This cost is made up of programme delivery costs such as venue hire and staff travel (£166.5k compared to £66.8k in 2020/21) and the cost of using staff from the Common Purpose central delivery team (£495k compared to £337k in 2021/22).

Overhead costs fell by 25% to £153k from £190.9k following less reliance on outside consultants to help deliver programmes.

The company gifted £305k of its profits to the parent company, CPCT, during the year.

Plans for 2023/24

The company’s plans for the coming year are:

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7.2. Common Purpose Student Experiences Ltd

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

As set out in more detail in the plans for 2023/24 on page 8, from the start of 2023/24, no new business will be booked in the company other than for Australian universities.

Objectives for the year

During 2022/23 our priorities were to:

While we have continued to run our in-person programmes, difficult economic conditions for our client universities meant that the number of programmes we ran, and the number of students who attended our programmes, were lower than we wanted. As a result, the company was unable to maintain the level of surpluses of recent years and saw a loss across its in-person programme activities.

Financial review

The net movement in reserves for the year ended 31 July 2022 was a deficit of £697.6k (2021/22: surplus of £71.8k). As a result, fund balances fell to negative £130.9k at the end of the year compared to £566.7k positive at the end of the previous year.

Income totalled £853.9k (2021/22: £1,256.1k), a drop of 32% over the previous year. The fall was due to much harder trading conditions for the business as key client universities grappled with continued funding constraints. The charity received a donation of £16k to support development of the EdTech work.

Expenditure amounted to £1,551.5k, of which £1,222.6k was spent on programmes as part of the charitable mission (2021/22: total of £1,184.3k all on unrestricted programmes). £328.9k was spent on developing the new EdTech venture. Other cost increases related to the cost of delivering programmes, notably staff salaries and central support costs.

CPSE operates a branch in Australia to support clients in that country. Turnover in the branch for the year was AU $544.7k (2021/22: $974.8k) and it produced a surplus AU $36.6k (2021/22: £588k). The

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DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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branch’s results are incorporated in the figures of the Charity. As of 31 July 2023, the branch employed three full time staff.

Review of activities

In 2022/23, 4,948 students completed our programmes, 1,581 on asynchronous courses and 3,367 on inperson and synchronous virtual programmes.

We measure the students’ development of key leadership skills as the core metric of our programmes’ 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 5.5 across the year, showing the value the students place in their experience with us.

Common Purpose Evolve Careers (CPEC)

During 2022/23 CPSE also funded the new edtech business, including the costs of initial product development and exploring international market opportunities. A dedicated team was set up to develop a new product offering built around bridging the gap between education and the world of work.

The new offering will provide industry-driven on-demand learning experiences to equip young people with the tools to overcome common challenges, as well as providing them with unique access to global industry experts who offer invaluable insights into what employers truly value. The product offering has now been launched, with the development of an asynchronous online tool that helps young people identify their career wants and needs and introduces them to experts from organisations that helps inform their career pathways. The tool will be offered by CPEC clients to their students and young people and has already attracted interest and sales from several organisations in India, Africa, the UK and Australia.

During the year as the nature of the product offering emerged and developed, the directors concluded that it would be more appropriate to operate it through a for-profit entity. As a result, the business was transferred to a new entity, CPEC, with effect from 1 August 2023. CPEC has started to trade actively in 2023/24 for the ongoing financial and other benefit of the CPCT group

Plans for 2023/24

At the same time as the new online offering was moved into CPEC, management also decided to reorganise the legacy global student business along geographic lines. This will allow us to better meet local client needs and provide more tailored solutions for our client universities. Apart from the branch in Australia all other activity in the company will therefore wind down in 2023/24 as the relevant business has transferred to other group companies operating in our key geographies of the UK and Singapore. These companies will take over the client base and continue to operate the legacy student business. Our

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branch in Australia will continue to operate for the foreseeable future, as it addresses our Australian clients’ preference for a local entity to contract with.

7.3. Common Purpose Asia-Pacific Limited

Objectives for the year

CPAPL’s objectives for 2022/23 were built around deepening relationships with key donors and clients in Singapore and the wider region:

Review of activities

CPAPL made a loss in 2022/23 of SG $152k / £92.3k) (2021/22: loss of SG $1.7k / £0.9). The company’s turnover fell by 18%. Salary costs rose by 5% over 2021/22 but delivery costs fell by 14% because of lower programme delivery.

Following the successful tender in early 2022 with Yayasan MENDAKI (Council for the Development of Singapore Malay/Muslim Community), CPAPL began delivered the first of its programmes to assist individuals with education and training to improve their resilience and adaptability.

The ASEAN Leadership Programme continued to run, but attracting pre-pandemic numbers of participants was challenging. In response we returned to running an in-person programme, with a small cohort of participants. We also ran two further TCPPs in Singapore with 45 people attending. The company also continued to run customised programmes for major companies based in the region. Following the acquisition by the group of the Hong Kong licensee (Common Purpose Hong Kong Ltd, CPHK), the Asia-Pacific managing director took over business development responsibility for Hong Kong.

Plans for 2023/24

Under the leadership of a new board Chairman, we are re-invigorating our proposition in Singapore and the wider region. The primary objective in 2023/24 is to add more value to our customers and to also build back up the reserves of the company by:

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DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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YEAR ENDED 31 JULY 2023

7.4. Common Purpose Hong Kong Limited

The board of Common Purpose Limited decided in 2023 to buy shares of CPHK from its shareholder and director, Philip Niem, to bring the company under group ownership. The share purchase was completed on 4 August 2022. CPHK is a for-profit company that operates independently of the group’s charitable licensee in Hong Kong, the Common Purpose Charitable Foundation.

The Hong Kong economy has faced extremely challenging times over the last few years, and the board’s plan for CPHK is to maintain our presence in Hong Kong and utilise our presence there to support initiatives in the region and begin building up a viable local business now that economic conditions appear to be improving.

The company made a loss for the year to 31 July 2023 of HK $651.2k (£68.5k).

8. 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.

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:

The policy of the Trustees is to maintain a level of unrestricted reserves that would enable the group to meet ongoing liabilities in the event of serious interruption to income, recession or orderly wind-down of the company in the event of closure.

CPCT’s unrestricted reserve level is now set as a range. The lower end of the range is based on the output of a forward-looking 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-month time horizon, meaning that at any given time we aim to hold reserves to cover six months of our budgeted expenditure which is not covered by contracted or otherwise secured income.

The upper end of the range of reserves is a more qualitative assessment taking into account a potential worst-case scenario in the event of a sharp and unexpected economic downturn (the potential wind down costs of the organization). This assessment takes a more prudent approach to uncontracted income and

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YEAR ENDED 31 JULY 2023

assumes the Charity should hold sufficient unrestricted reserves to ensure it could weather such a downturn.

Based on the above, the unrestricted reserves target is in the range of £750k to £1m. The reduction compared with last year’s reserves target of £1.2m reflects the extent to which CPCT has already secured income for 2023/24 to meet its budgeted expenditure. The lower level provides six months’ cover of budgeted but not secured expenditure. The upper limit has been calculated to reflect approximately three months of the Charity’s costs. The trustees recognise that reserves at the balance sheet date are below the target range and are committed to ensuring that the level is brought within the target range as soon as practicable over the next few years.

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. In particular, management will be ensuring the reserves of CPSE return to positive as quickly as possible during 2023/24.

9. Business re-organizations

CPL completed the acquisition of Common Purpose Hong Kong Ltd, the Hong Kong based trading licensee of the group, in August 2022. The results for CPHK are included in this year’s consolidation.

During 2022/23, a dedicated team was set up to develop a new product offering built around bridging the gap between education and the world of work. As the product came close to finalization, the activity of the team was moved into a new entity owned by CPL (from 1 August 2023), Common Purpose Evolve Careers Ltd (CPEC). The new company will provide industry-driven on-demand learning experiences to equip young people with the tools to overcome common challenges, as well as providing them with unique access to global industry experts who offer invaluable insights into what employers truly value.

CPL still intends to acquire the shares of Civilia India Educational Programmes Pvt Ltd (CIEP). CIEP, based in Bangalore. This is an independently owned and operated licensee, and therefore outside the control of the group. The CPCT board’s view is that by purchasing CIEP it can bring its strategic and operational strength to help develop its offering in the fast-growing Indian market. While the process of buying the shares of CIEP began some time ago, we have been unable to complete the purchase due to regulatory considerations. The intention remains, however, to proceed with this purchase.

10. Reference and administrative details

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

11. 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

12. Trustees and directors

Lynna Chandra Mark Linder Jonathan Donner David Robinson David Grace (Chair) Shuvo Saha Sanjeev Gupta Janis Sanders Peter Kulloi Vandana Saxena Poria Albert Tucker (resigned 31 July 2023)

All served throughout the year ended 31 July 2023, unless otherwise indicated.

The group’s Chief Executive Officer is Adirupa Sengupta.

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13. 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.

b. Methods adopted for the recruitment and appointment of trustees

When board vacancies arise, the directors identify any skills or experience needs of the board. They utilize existing networks of suitably qualified people to approach as potential directors. Candidates are recommended to the board nominations committee, which reviews the recommendation and conducts interviews of candidates. 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.

We encourage people interested in becoming trustees to apply on our website.

All trustees are offered an induction, which is tailored to suit their individual requirements. Each new trustee receives an information pack as above 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.

d. 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.

14. Board sub-committees

a. Audit and Risk Committee

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

The ARC members are Jan Sanders (Chair) and Sanjeev Gupta, with the Group CEO and Finance Director/Group Company Secretary attending.

b. Nominations Committee

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

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15. 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 also 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 £996.2k (2021/22: £1,083k). 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 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.

16. 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:

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DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

17. Global economic conditions and going concern

In December 2023 the trustees formally reviewed an updated cash flow forecast to December 2024 for the group. Based on 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 difficult economic conditions persist across the markets where we operate and with our key clients. 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, as well as 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 during the last twelve months. While acknowledging that the Trust’s reserves have fallen over the last 12 months, the trustees believe that the level of reserves will return to a sufficient level in the coming year to meet the Charity’s needs. 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 adverse economic conditions.

18. 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.

14

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

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 15 December 2023.

(i  DocuSignedE7AF27979AC74DA... by: David Grace Trustee

(  D E61F20858E442C...ocuSigned by: Jan Sanders Trustee

15

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Trustonly 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 Chair and Chief Executive’s Report and 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:

16

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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 regulatory requirements of Charity and Company 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 Companies Act 2006 and the Charities Act 2011, payroll tax 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:

17

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

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 non-compliance. 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.

5 DocuSignedDB8AB2B244C8458... by: Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

22 December 2023 Date:

18

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

COMMON PURPOSE CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)

FOR THE YEAR ENDED 31 July 2023

Note
Income from
Donated goods and services
Charitable activities:
Open programmes
Student programmes
Grants
Customised programmes
Other Income
Other trading activities
Bank interest
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
156.4
0.0
156.4
1,068.2
0.0
1,068.2
837.9
0.0
837.9
520.5
1,247.3
1,767.8
1,356.8
0.0
1,356.8
91.1
0.0
91.1
209.7
0.0
209.7
0.0
0.0
0.0
2022/23
















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
142.9
0.0
142.9
84.4
0.0
84.4
0.0
0.0
0.0
2021/22
4,240.6
1,247.3
5,487.9
1,324.3
0.0
1,324.3
1,223.0
0.0
1,223.0
537.7
1,225.2
1,762.9
1,540.3
0.0
1,540.3
341.6
0.0
341.6		 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
4,966.9
1,225.2
6,192.1		 4,231.5
1,109.5
5,341.0
(726.3)
22.1
(704.2)
26.1
(26.1)
0.0
(700.2)
(4.0)
(704.2)
1,143.2
442.8
1,586.0		 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
443.0
438.8
881.8		 1,143.2
442.8
1,586.0

The accompanying notes on pages 23 to 36 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.

19

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2023

2023 2022
Note £000s £000s £000s £000s
FIXED ASSETS
Intangible fixed assets 7 27.4 29.6
Tangible fixed assets 8 36.8 41.3
64.2 70.9
CURRENT ASSETS
Debtors 9 1,258.5 1,700.2
Cash at bank and in hand 2,016.0 1,249.7
Total current assets 3,274.5 2,949.9
Creditors: amounts falling due
within one year 10 (2,210.2) (1,108.2)
Net current assets 1,064.3 1,841.7
LONG TERM LIABILITIES
Creditors: amounts falling due in more
than one year		 11 (246.7) (326.6)
Total long term liabilities (246.7) (326.6)
TOTAL ASSETS LESS LIABILITIES 881.8 1,586.0
RESERVES
Restricted funds 15 438.8 442.8
Unrestricted funds 14 443.0 1,143.2
881.8 1,586.0

The accompanying notes on pages 23 to 36 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 15 December 2023 and were signed below on its behalf by:

(i  E7AF27979AC74DA...DocuSigned by: (  D E61F20858E442C...ocuSigned by: David Grace Jan Sanders Trustee Trustee

20

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

BALANCE SHEET (TRUST ONLY)

AS AT 31 JULY 2023

2023 2022
Note £000s £000s £000s £000s
FIXED ASSETS
Tangible fixed assets 8 22.6 31.5
22.6 31.5
CURRENT ASSETS
Debtors 9 1,335.6 1,068.2
Cash at bank and in hand 1,857.6 1,056.2
Total current assets 3,193.2 2,124.4
Creditors: amounts falling due
within one year 10 (2,125.9) (945.4)
Net current assets 1,067.3 1,179.0
Creditors: amounts falling due in
more than one year		 11 (246.7) (326.7)
Net long-term liabilities (246.7) (326.7)
TOTAL ASSETS LESS
LIABILITIES		 843.2 883.8
RESERVES
Restricted funds 438.8 442.8
Unrestricted funds 404.3 441.0
843.2 883.8

The Common Purpose Charitable Trust made a loss before consolidation of £40.6k (2021/22: loss of £33.2k). CPL gifted £305k of its profits to CPCT during the year.

The accompanying notes on pages 23 to 36 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 15 December 2023 and were signed below on its behalf by:

(Zi  DocuSignedE7AF27979AC74DA...by: (  D E61F20858E442C...ocuSigned by: David Grace Jan Sanders Trustee Trustee

21

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED CASH FLOW STATEMENT

YEAR ENDED 31 JULY 2023

2023 2022
£000s £000s
Net cash inflow / (outflow) from operating activities 12 870.9 (1,061.9)
Capital expenditure
Payments to acquire tangible and intangible fixed assets (24.7) (51.0)
Increase / (decrease) in cash 766.3 (1,178.2)
Cash at bank and in hand at start of year 1,249.7 2,427.9
Cash at bank and in hand at end of year 2,016.0 1,249.7

The accompanying notes on pages 23 to 36 form part of the financial statements.

The balance of £2.016m cash at bank and in hand is made up as follows:

Cash at bank and in hand 2022
£000s
1,249.7
1,249.7		 Change in
year
2023
£000s
£000s
766.3
2,016.0
766.3
2,016.0
Group

22

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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 year 50%
Third quarter or beyond 0%

(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. This it reflects the timing of the work undertaken before programme delivery, which includes preparing curriculum, organising speakers, developing the programme structure, and logistics.

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

23

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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 is 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 Ltd, Common Purpose Student Experiences Ltd, Common Purpose Asia-Pacific Ltd and Common Purpose Hong Kong Ltd. Two subsidiaries, Common Purpose UK and Common Purpose International are no longer trading and were struck off in October 2023. The companies however were live as at 31 July 2023 and the balances on their accounts have been included in the consolidation. 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 trustees have had regard to a cash flow forecast covering a minimum period of 12 months from the date of approval of the accounts.

24

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

The trustees have reviewed the cash flow forecast, which shows the Trust staying cash flow positive for the next 12 months and 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

ET MOVEMENT IN FUNDS – Group and Trust
2023 2022
£000s £000s
The net movement in funds is arrived at after charging:
Depreciation and amortisation 31.5 51.3
Auditors’ remuneration for audit services 46.1 29.0
Auditors' remuneration for non-audit related services 7.1 6.7
Operating lease rentals - land and buildings 107.1 107.1
Operating lease rentals – equipment 0.0 30.4

25

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

3. STAFF NUMBERS AND EMOLUMENTS - Group and Trust

2023 2022
Number Number
The average number of persons employed by the group
during the year was:
Programme sales and delivery 75 71
Operational support 15 12
90 83
Staff costs £ £
Wages and salaries 3,156,649 3,020,645
Social security costs 307,039 285,289
Employer Pension Contribution 98,209 91,699
3,561,897 3,397,633
The number of employees whose emoluments for the year
fell within the following bands:
Number Number
£60,000 - £69,999 3 5
£70,000 - £79,999 4 2
£80,000 - £89,999 2 2
£90,000 - £99,999 1 0
£100,000 - £109,999 1 2
£140,000 - £149,999 0 1
£150,000 - £159,999 1 0
Total 12 12
Aggregate emoluments of the Senior Management Team
£ £
Salary 871,847 949,673
Social security costs 99,728 108,956
Pension 24,648 24,432
996,223 1,083,061

Termination payments of £32,340 were made during the year (2021/22: £12,000).

26

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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 2022/23 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.

4. RESULTS FROM COMMON PURPOSE CHARTIABLE TRUST TRADING SUBSIDIARIES

4a. RESULTS OF TRADING SUBSIDIARIES

As at the balance sheet date the group had three trading subsidiary companies: Common Purpose Limited (CPL), Common Purpose Hong Kong Ltd and Common Purpose Evolve Careers Ltd (CPEC). CPEC was established in July 2023 but did not begin trading until 1 August 2023.

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. CPHK and CPEC are wholly owned subsidiaries of CPL.

CPL 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		 2023
2022
£000s
£000s
2,559.5
2,117.4
(2,412.8)
(2,125.3)
Common Purpose Limited
146.7
(7.9)
41.6
39.4
528.0
943.6
(501.5)
(756.8)

CPHK was incorporated in December 2009 as a private limited company. CPL bought the 100% of the shares in the company for HK$2.00 on 4 August 2022. The company’s results for the period 4 August 2022 to 31 July 2023 are including in the CPCT group consolidation.

27

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

Income
Income from trading activities
Net cost recoveries from other group entities
Bank interest
Total income
Expenditure
Trading activities
Retained loss
Assets
Liabilities
Deficit on reserves		 2023
2023
HK $000s
£000s
99.8
10.5
244.5
25.8
0.6
0.1
344.9
36.4
(996.1)
(104.9)
(651.2)
(68.5)
339.3
35.7
(647.1)
(68.2)
(307.8)
(32.5)

4b. RESULTS OF CHARITABLE SUBSIDIARIES

As at the balance sheet date the group had one active UK charitable subsidiary, Common Purpose Student Experiences Limited (company no. 09526939) (CPSE), 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) were struck off in October 2023.

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

Two charitable subsidiaries of the group, Common Purpose UK and Common Purpose International existed at the year end and were both dissolved on 3 October 2023. Neither company traded during the year. At 31 July 2023, CPUK had liabilities of £284.2k and CPI assets of £90.6k. Both balances were intercompany and net out on consolidation.

28

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

Income
Income from charitable activities
Net cost recoveries from other group entities
Other income
Total income
Expenditure
Charitable activities
EdTech investment
Total expenditure
Net movement in funds
Assets
Liabilities
(Deficit) / surplus on reserves		 2023
2022
£000s
£000s
837.9
1,135.6
0.0
120.5
16.0
0.0
Common Purpose Student
Experiences Ltd
853.9
1,256.1
(1,222.6)
(1,184.3)
(328.9)
0.0
(1,551.5)
(1,184.3)
(697.6)
71.8
173.1
877.4
(304.0)
(310.7)
(130.9)
566.7

Common Purpose Asia Pacific Ltd

Income
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		 2023
2022
2023
2022
£000s
£000s
SG $000s
SG $000s
365.2
394.5
601.0
707.4
31.8
51.5
52.4
92.4
397.0
446.0
653.4
799.8
(489.4)
(446.9)
(805.3)
(801.5)
(92.4)
(0.9)
(151.9)
(1.7)
490.1
475.0
806.4
851.7
(448.4)
(352.5)
(737.9)
(632.1)
41.7
122.5
68.5
219.6

29

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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

No emoluments were paid during the year (2021/22: nil). Nil expenses were reimbursed to trustees (2021/22: nil).

6a. ANALYSIS OF EXPENDITURE

Open programmes
Student programmes
Grants
Customised programmes
Other trading activities		 Direct costs
Support Costs
Total 2023
£000s
£000s
£000s
908.3
416.0
1,324.3
682.1
540.9
1,223.0
1,551.2
211.7
1,762.9
1,011.9
528.4
1,540.3
224.5
117.1
341.6		 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
4,378.0
1,814.1
6,192.1
3,844.5
1,496.5
5,341.0

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
392.7
8.3
15.0
416.0
485.2
47.9
7.8
540.9
200.3
4.1
7.3
211.7
498.8
10.6
19.0
528.4
110.6
2.3
4.2
117.1
2023		 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
1,687.6
73.2
53.3
1,814.1
1,374.1
86.7
35.7
1,496.5

Support costs are apportioned on the basis of the percentage of each activity’s direct expenditure. Central services include 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.

30

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

7. INTANGIBLE FIXED ASSETS - GROUP

COST
At 1 August 2022
Additions
At 31 July 2023
AMORTISATION
At 1 August 2022
Charge for year
At 31 July 2023
NET BOOK VALUE
At 31 July 2023
At 31 July 2022		 Software Costs
£000s
62.8
5.8
68.6
35.5
9.3
44.8
23.8
27.3		 Group
Trademarks
£000s
8.2
0.0
8.2
3.8
0.8
4.6
3.6
4.4		 Investments
£000s
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0		 Total
£000s
71.0
5.8
76.8
39.3
10.1
49.4
27.4
31.7

31

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

8. TANGIBLE FIXED ASSETS – GROUP

COST
At 1 August 2022
Disposal
Additions
At 31 July 2023
DEPRECIATION
At 1 August 2022
Charge for year
At 31 July 2023
NET BOOK VALUE
At 31 July 2023
At 31 July 2022		 Leasehold
improvements
£000s
28.3
0.0
0.0
28.3
20.1
3.0
23.1
5.2
8.2		 Group
Computer
equipment
Total
£000s
£000s
94.9
123.2
0.0
0.0
18.9
18.9
113.8
142.1
63.9
84.0
18.3
21.3
82.2
105.3
31.6
36.8
31.0
39.2

Included in the above table are assets related to the parent charitable trust with a net book value of £22.6k (2021/22: £31.4k).

32

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

9. DEBTORS

Tuition fees and sponsorship income
Prepayments
Accrued income
Other debtors
Prepaid marketing material
Amounts due from group undertakings		 Group Trust
2023
2022
2023
2022
£000s
£000s
841.6
1,063.2
23.7
5.4
378.8
629.6
13.8
1.4
0.6
0.6
0.0
0.0		 £000s
£000s

158.8
150.3

26.1
14.2

40.7
154.3

0.0
0.0

0.0
0.0

1,110.0
749.4
1,258.5
1,700.2
1,335.6
1,068.2

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
2023
2022
2023
2022
£000s
£000s
837.4
613.5
96.4
223.5
1,276.4
271.2
0.0
0.0		 £000s
£000s

480.1
387.8

51.4
100.8

1,121.0
1.5

473.4
455.3
2,210.2
1,108.2
2,125.9
945.4

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. The balance of the loan as at 31 July 2023 was £246.7k.

Of the total loan repayable of £246.7k, an amount of £80k is due within one year. The remainder of the loan repayments are due more than one year from the balance sheet date.

33

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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

Net (decrease) / increase in funds
Depreciation and amortisation
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash inflow / (outflow) from operating activities		 2023
2022
£000s
£000s
(704.2)
28.1
31.4
51.3
441.7
(361.5)
1,102.0
(779.8)
870.9
(1,061.9)
Group

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

Cash at bank and in hand 2022
£000s
1,249.7
1,249.7		 Change in
year
2023
£000s
£000s
766.3
2,016.0
766.3
2,016.0
Group

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2023
Fixed assets
Current assets
Current liabilities
Long term liabilities
2022
Fixed assets
Current assets
Current liabilities
Long term liabilities		 Unrestricted
Funds
£000s
64.2
2,835.7
(2,210.2)
(246.7)
443.0
Unrestricted
Funds
£
70.9
2,507.1
(1,108.2)
(326.6)
1,143.2		 Restricted
Funds
Total Funds
£000s
£000s
0.0
64.2
438.8
3,274.5
0.0
(2,210.2)
0.0
(246.7)
438.8
881.8
Restricted
Funds
Total Funds
£
£
0.0
70.9
442.8
2,949.8
0.0
(1,108.2)
0.0
(326.6)
442.8
1,586.0

34

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

15. RESTRICTED FUNDS

2023
American Express Foundation
British Council Bangladesh
Creative Scotland
Crown Prince Foundation
Global Diversity Foundation
Grants for the development of Europe 101 programme
Grants for Women Emerging from Isolation programme
Anonymous donation for EdTech
MAVA Foundation
Newton-Khaledi Fund
Swiss Philanthropy Foundation
TOTAL
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		 Brought
forward
Income
Expenditure
Transfers /
gains
Carried
forward
107.5
1,098.2
881.6
324.1
0.0
19.8
19.8
0.0
0.0
16.3
16.3
0.0
0.0
29.9
0.0
29.9
0.0
13.0
0.0
13.0
2.6
34.8
34.2
3.2
38.9
40.3
63.1
16.1
0.0
16.0
16.0
0.0
293.8
(95.4)
172.3
(26.1)
0.0
0.0
7.0
0.7
6.3
0.0
67.4
21.2
46.2
442.8
1,247.3
1,225.2
(26.1)
438.8
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

The carried forward balance from the American Express Foundation represents the balance of income recognised in 2022/23 for a programme that was deferred from its original planned running date. These funds will be expended in 2023/24.

At the conclusion of the MAVA programme in October 2022, the MAVA foundation allowed Common Purpose to release an underspend (shown in Transfers in the table above) and apply it to a new environmental leaders’ programme. The underspend arose because of programme changes caused by pandemic in 2020, when inperson programmes could not be run and as a result, savings on delivery costs were made. The negative income is the result of income recognised in the previous year but not spent as expected in 2022/23 because of programme scope changes arising in part from the Covid pandemic.

35

DocuSign Envelope ID: 357822AE-E5F5-47BC-983B-D877943C9279

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

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		 2023
2022
Land and
buildings
Land and
buildings
£000s
£000s
196.3
303.4

The charity has no equipment leases (2022: nil)

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:

2023 2022
£000s £000s
Common Purpose Asia-Pacific Ltd 338.2 219.4
Common Purpose Ltd 322.4 237.1
Common Purpose UK 307.6 306.1
Common Purpose Customised Limited (12.0) (12.0)
Common Purpose Charitable Trust (922.7) (304.2)
Common Purpose International (89.9) (89.1)
Common Purpose Student Experiences Ltd 70.1 (357.5)
Common Purpose Hong Kong Ltd 0.0 0.0

36