OpenCharities

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

2021-04-30-accounts

Charity Number: 1025387 Company Number: 2837809

Bader International Study Centre

Trustees’ report and financial statements

For the year ended 30 April 2021

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 APRIL 2021

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 2
Trustees’ Report (including Strategic Report) 3-11
Independent Auditor’s Report to the Members of Bader International Study Centre 12-14
Consolidated Statement of Financial Activities 15
Consolidated Balance Sheet 16
Charity Balance Sheet 17
Consolidated Statement of Cash Flows 18
Notes to the Financial Statements 19-32

1

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

Trustees

J Purvis K Fountain A Boggs J Knowles R Luce-Kapler P Deane

Company registered number

2837809

Charity registered number

1025387

Registered office

Herstmonceux Castle, Hailsham, BN27 1RN

Company Secretary

L Stewart (resigned 24 November 2020) R Coupland (appointed 25 November 2020)

Independent auditor

Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG

Bankers

National Westminster Bank Plc, 1 High Street, Hailsham, East Sussex, BN27 1AJ

Solicitors

Farrer & Co, 66 Lincolns Inn Fields, London, WC2A 3LH

2

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

The trustees of the Bader International Study Centre (BISC) hereby present their Annual Report, together with the audited financial statements for the year ended 30 April 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Legal constitution

The company was established on 15 July 1993 by Queen’s University (Canada) as a company limited by guarantee (no. 2837809) in England and Wales and registered as a charity with the Charity Commission (no. 1025387). It is governed by its Memorandum and Articles of Association dated 15 July 2003 and amended by a resolution passed on 2 December 2003.

Directors and Trustees

For company law purposes, the trustees are also directors of the company/charity. As at 30 April 2020, there were six trustees – four trustees’ resident in the United Kingdom, one trustee resident in Canada and one trustee representing Queen’s University (Canada). The trustees who served during the year or have been appointed subsequently were:

J Purvis K Fountain A Boggs J Knowles Rebecca Luce-Kapler P Deane

No trustee has any interest in the share capital of any group undertaking or received any remuneration from the charity during the current or preceding year.

Day to day management of the charity during the year was delegated to a management team comprising the ViceProvost/Executive Director (Hugh Horton), the Director of Finance & Assets (Valerie Lee), the Academic Director (Christian Lloyd), the Enterprise Director (Julie Ryan), the Director of Student & Enrolment Services (Ria Bourne) and the Director of Corporate Development (Duncan Adams).

Trustee appointment and training

The trustees have the power at any time to appoint any person to fill a casual vacancy or as an addition to the existing trustee members, provided that the total number of trustee members shall not at any time exceed the number fixed in accordance with the Articles of Association.

One third of the trustees retires by rotation each year and may stand for re-election. Further details are set out in the Articles of Association.

When a person is considered for the position of trustee at BISC, that person is approached and given an opportunity to look at and discuss the history, the current goals, and objectives, as well as the future aspirations of the BISC. The rules that govern the trustees of a charity in the UK are explained and he/she is provided with the guidelines set by the Charity Commission.

The potential trustee is also given the opportunity to look at the previous and present balance sheets of the charity, and the modus operandi of the BISC and its subsidiary company, Herstmonceux Castle Enterprises Limited, is explained.

3

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

At the earliest opportunity the (potential) trustee is invited to the BISC to meet the senior administration team on site to get a clearer picture of the day-to-day workings of the charity.

OBJECTIVES AND ACTIVITIES

Objectives of the charity

The principal objective of the charity is to contribute to and enhance international education and research through its role as an academic meeting-place for students, scholars and professionals from around the world – a place where people of different nationalities may learn and work together for both collective and public benefit.

Structurally, the Bader International Study Centre is an integral component of Queen’s University’s wide-ranging international programmes. To achieve this objective, the charity is developing and providing:

• A varied offering of academic programmes for undergraduate and post-baccalaureate students, and academics whose interests are oriented towards the United Kingdom, Europe, and wider global issues.

Activities during the year

Activities during the year included:

• Commissioning of Financial Services Event Review Report and Recommendations on BISC Corporate Development and start of implementing recommendations from these reviews.

• Campus capital and improvement plan in place and initiated, with significant renovations to the student halls of residence.

Performance against objectives

Strategic Goal Priority
(Low,
Medium
High)		 Midpoint
Deliverables
(milestones or
timelines to
demonstrate you
are on track)		 Delivery Date Indicators of
Success
Ensure that BISC is positioned to
support the University’s
international plan		 High -member of IAU
Self-Study group;
--have agreed
with Vice Provost
(International)
those BISC staff
who will sit on
sub-groups
-engaged with
SDG committee
to ensure BISC
data is included		 March 2021 –
expect to have
clearer picture of
role of BISC in
international
strategy once the
bulk of meetings
take place;
April – June 2021:
review Case for
Support for BISC
based on		 BISC becomes a
central support
of Queen’s
international
strategy

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

within university
submission
-workshops with
BISC faculty to
review research
support
structures has
taken place		 international
strategy and
support of SDGs
March 2021 –
BISC faculty
research support
program
restructured
taking faculty
input and BISC
research goals
into account
Reorganize staffing to improve
service delivery to BISC and HCE
stakeholders		 Medium -new caterers in
place;
-business case in
place for key
services
(transport,
reception) and HR
process
underway;
New Science Co-
ordinator hired,
job descriptions
for other key
posts (research
co-ordinator,
professional
development co-
ordinator)
complete		 March 2021:
Catering,
BISC/HCE
restructure
planning
complete – new
hires to be
completed once
there is a solid
timeline for
students to be
onsite
June 2021: begin
hiring process for
Research Co-
ordinator position
once
international
strategyis clear.		 Staffing
restructure leads
to higher
productivity in
BISC operations;
higher visitor
and student
satisfaction;
stronger
research and
teaching metrics
Develop new academic
programming focussed on the
internationalization of the study
body and in maximizing the use
of BISC facilities		 Medium -draft Certificate
proposal
complete;
funding in place
to hire a co-
ordinator to
shepherd the
certificate
through QUQAP
approval process
-engaged external
contractor to
review BISC
marketing in UK
and to identify
local academic
partners for
customised
academic
programming		 March 2021:
QUQAP
application
process
proceeding;
market survey
proceeding
Dec 2021:
Certificate
through QUQAP
approval process,
recruitment of
students to begin
March 2021: UK
marketing
strategy for
customised
programs in place		 Certificate
operating with
significant
international
student
enrolment
(targets to be
defined once
market survey
determines
demand)
Customised
academic
programs
operating onsite
and producing
new revenue
stream to BISC
Align BISC’s teaching and
learning to Queen’s Equity,
Diversity,Inclusion and		 Medium -Relaunched the
Vice Provost’s
Committee on		 November 2020:
BISC EDII
committee in		 Increase in
accessibility of
BISCprograms

5

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

Indigeneity (EDII) objectives and
the Declaration of commitment
to address systemic racism		 Equity, Diversity,
Indigeneity and
Inclusion, e
charged with
focussing on
developing
recommendations
for the
embedding of
EDII within the
BISC academic
and Student
Services
programming;
reviewing our
current
scholarship
offerings with a
view to increasing
accessibility to
BISC for students
from lower
income and
equity seeking
groups.
-Faculty
Professional
Development Co-
ordinator to focus
on EDII initiatives,
in order to align
BISC’s teaching
and learning to
Queen’s EDII
objectives: focus
to be on
decolonisation of
the curriculum
and
indigenisation
initiatives.
-workshop
sessions for
faculty during the
Winter Term
2021.		 place
March 2020: BISC
awards budget
defined with
strategy to
increase
accessibility to
BISC from equity
seeking groups		 Student services
and academic
programming in
place that
emphasises EDII
priorities
Continued management of
pandemic operations:
maintaining student enrolments
and student satisfaction, and
planning for a safe return of
students to the BISC campus		 High -Retention rate of
90%; met about
67% of original
(non-pandemic)
enrolment target
-high student
satisfaction levels
and effective		 January 2021 –
winter term
launched
successfully
March 2021 –
plans in place for
Summer Term		 Maintaining
enrolment
levels; student
satisfaction;
faculty and staff
morale
A safe return by

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

academic and
student service
programs in place
online
-HCE revenues
above forecast;
safe return of
visitors to Estate		 TBD – reopen
BISC campus
Feb 2021
(regulations
permitting) –
reopen site to day
visitors; tearoom
provision inplace		 BISC students to
campus in
September 2021
Restart HCE
commercial
operations in
June 2021
Implement recommendations of
the HCE Financial Services Event
Review Report		 High -Report
completed and
ready for HCE
Board review and
approval		 -March 2021 –
Key
recommendations
on pricing levels
completed
-June 2021 – HCE
financial
templates in use
for event budget
planning		 Increase in
profitability of
HCE commercial
operations
Price guides in
place for
external sales
and marketing

Public benefit

The trustees continue to have regard to the guidance on public benefit published by the Charity Commission and are committed to maintaining and improving access to the courses run by the Charity, irrespective of background and financial means. The year under review was exceptional in that because students only undertook on-line courses, it was not possible to award any bursaries as the cost of the on-line course an in -person provision. In the previous year BISC awarded bursaries, and other awards, to the value of £118,653. The BISC would also usually support its public benefit role via student engagement in the local community with students undertaking volunteer placements and activities, including fundraising for various charities, participation in events under the aegis of local charity groups, such as Vitality Villages.

In normal years, the BISC Concurrent Education program places student teachers in local primary and secondary schools where they assist teachers with tasks such as group learning and literacy. In addition, BISC faculty would usually host various public lectures and concerts throughout the year in addition to taking part in the annual National Garden Scheme, opening our gardens, and donating the income to charity.

Remuneration of Key Management Personnel

Remuneration of key management personnel is set by the board of trustees. Factors considered include the responsibilities of the post, local and regional comparative salaries and comparative salaries paid to other members of staff.

FINANCIAL RESULTS AND RESERVES

Financial and risk management objectives and policies

The international nature of its activities means that the BISC is exposed to risks beyond those which affect similar institutions operating solely within the United Kingdom. The trustees and management continually monitor these risks with the objective of minimising them and mitigating their effect. Periodic formal risk assessments are carried out in conjunction with Queen’s University in addition to the BISC creating its own Risk register of key risks. More informal assessments are also carried out by management at the BISC on a frequent and regular

7

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

basis.

The key financial objective is to maintain financial viability through a strong system of financial and management controls and enrolment of sufficiently high numbers of students to cover normal running costs and allow for investment in maintenance and improvement of the infrastructure of the site. A budget is prepared annually and approved by the trustees. During the year, regular financial information is provided to budget holders and to the trustees, and the budget set at the beginning of the year is revised as student numbers are confirmed, with corrective action taken where necessary.

Principal risks and uncertainties

The principal risk facing the organisation is the ongoing Covid-19 pandemic albeit the vaccination program is well underway in both the UK and Canada. In March 2020, when the World Health Organization declared the spread of COVID-19 to be a global pandemic, this led to governments worldwide to enact emergency measures to combat the spread of the virus, including travel restrictions between and within the UK and Canada, barring gathering of people and requirements to stay at home. These measures impacted the operations of the University and resulted in the closure of physical premises of all postsecondary institutions. These closures remained in place for the whole of the 2020-21 academic year.

Our risk mitigation in terms of Covid-19 involved the provision of an online academic program for Fall and Winter 2020. Student recruitment numbers remained reasonably strong, with a Fall 2020 cohort of 105 first year students recruited against a target of 135. Online registrations for the Winter and Summer Terms of 2021 met or exceeded targets, whilst recruiting for a return to in-person teaching in September 2022 has yielded 118 students to date on a target of 135. The University will repeat the previous year’s successful inaugural offering of online modules directly to the Queen’s University Kingston campus population, supplementing our regular enrolment numbers. In terms of mitigating Covid-19 risk for our staff and visitors we have strengthened our health and safety policies including signage and hand washing around site in addition to creating a working from home policy for our staff. At the same time, we have entered a new contract with our catering provider; and have carried out an assessment of corporate development opportunities. Recommendations from this assessment will be carried out through 2021-22. The Trustees believe there are no financial issues that cannot be mitigated via the support of its parent company Queen’s University, Canada which is able to provide access to sufficient liquid resources.

Whilst the extent of Covid-19 on the University’s business and financial and operational performance were uncertain during the 2020-21 academic year, with the return of students to campus in September 2021 we are optimistic that most of this risk is now behind us.

Outside of Covid-19, the key risk to the charity is a sudden or persistent decline in income causing the BISC to cease to be financially viable; meeting student enrolment targets is key to the achievement of a strong financial position. We mitigate this risk through the continuous review of our academic programming and recruitment strategies and have been implementing the recommendations of both the Queen’s University Enrolment Task Force Report and External Education Quality Committee.

Our income is also strongly dependent on the exchange rate between the Canadian Dollar and the UK Pound Sterling. We mitigate this risk by monitoring of the exchange rate and making prudent assumptions on rates of exchange when setting budgets.

The BISC is charged with maintaining and improving a high-profile asset, Herstmonceux Castle, an important historical site in East Sussex. Herstmonceux Castle is also one of the highest profile capital assets associated with Queen’s University. We have mitigated this risk through appropriate health and safety policies, the development of a capital plan and undertaking a detailed condition survey of the site, to maintain the integrity of the campus infrastructure.

8

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

A new risk around the uncertainty of Brexit and its impact on the UK economy, including the value of sterling against the Canadian Dollar, possible but unknown changes to visa regulations, was highlighted as a key risk within our risk register work. We will continue to monitor the situation and consider any possible mitigations including, in conjunction with Queens, our parent company, hedging to mitigate fluctuations in exchange rates. We do not believe the BISC is unique in facing this risk.

Financial results

The financial results for the year show a deficit of £1,839,176 (2020: £5,173,605 surplus). The 2021 figures include the positive impact of £283,400 arising from the revaluation of investment property- excluding the revaluation, the results show a deficit of £2,122,576. The deficit largely arises due to the impacts of the COVID-19 pandemic on enrolment numbers and loss of residential income from students, who continued to study fully online throughout the financial year.

The prior year surplus of £5,173,605 included the positive impact of the write off the loan from Queen’s University of £5,433,443 and the cash injection from Queen’s University of £589,268. Excluding the loan write off and cash injection, the underlying results in 2020 would have been a deficit of £849,106.

The trustees have reviewed the balances of the BISC and noted unrestricted funds of £12,667,625 (2020: £14,524,801). This is represented by £13,339,524 tied up in fixed assets (2019: £13,208,801), and net current liabilities of £712,587 (2020: net assets of £1,317,312).

The subsidiary, Herstmonceux Castle Enterprises Limited, made a loss during the year of £168,748 (2020: £4,052 profit) and ended the year with net liabilities of £138,612 (2020: net asset of £30,890).

Reserves policy

Queen’s University continues to fully support the activities of the BISC including providing cash injections to cover cashflow shortages resulting from the pandemic. This support continues into the 2022 financial year.

In the light of the exceptional year and the fact that support from the parent company is available, the reserves policy has not yet been reviewed.

Going concern

Management has assessed the going concern assumptions and believes there are no issues given the University has access to sufficient liquid resources via its parent company Queen’s University, Canada.

They continue to adopt the going concern basis of accounting in preparing the financial statements.

9

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

FUTURE PLANS

The immediate priority has been managing the return of students and staff to campus in September 2021 alongside the ongoing impact of the COVID-19 epidemic. We are also managing a new catering contract from September 2021. . Student recruitment numbers remain reasonably strong, with a Fall 2021 cohort of 118 first year students recruited on a target of 135. In addition, the University has offered the BISC 100 online modules directly to the Queen’s University Kingston campus students, supplementing our regular enrolment numbers.

Priorities for 2021-22 include:

• Engagement in the Principal and Vice Chancellor-led International Planning process, ensuring that the BISC is front and centre, in development of the Queen’s International Plan.

HERSTMONCEUX CASTLE ENTERPRISES LIMITED

The charity’s wholly owned trading subsidiary carries out the general day to day running of the Gardens and Grounds of Herstmonceux Castle, together with ancillary operations such as weddings and conferences. The subsidiary company donates its profits to the charity each year under the United Kingdom gift aid procedures. Details of this are shown in the notes to the financial statements.

10

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee) TRUSTEES’ REPORT (INCLUDING STRATEGIC REPORT) FOR THE YEAR ENDED 30 APRIL 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Bader International Study Centre for the purposes of company law) are responsible for preparing the Trustees’ Report (including the Group Strategic 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, of the charitable group for that period. In preparing these financial statements the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are trustees at the time when this Trustees’ Report is approved has confirmed that:

• that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any information needed by the charitable group’s auditor in connection with preparing its report and to establish that the charitable group’s auditor is aware of that information.

Auditor

Haysmacintyre LLP have completed their 3 -year term as auditors of the company and in line with best practice, the re-tender of the audit provision will be proposed at the forthcoming Annual General Meeting.

This report, incorporating the Group Strategic Report, was approved by the trustees, in their capacity as company directors, on 3 December 2021 and signed on their behalf by:

J Purvis

Trustee

11

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BADER INTERNATIONAL STUDY CENTRE

Opinion

We have audited the financial statements of Bader International Study Centre for the year ended 30 April 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cashflows 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:

12

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BADER INTERNATIONAL STUDY CENTRE

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 strategic report and 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 11, 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 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 Charity law, employment law and health and safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered other factors such as the Companies Act 2006, the Charities Act 2011, income tax, 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 concluded that the risk was low. Audit procedures performed by the engagement team included:

Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

13

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BADER INTERNATIONAL STUDY CENTRE

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.

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

Date: 3 December 2021

14

BADER INTERNATIONAL STUDY CENTRE (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account) FOR THE YEAR ENDED 30 APRIL 2021

Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
Note £ £ £ £
Income from:
Donations 745,279 - 745,279 6,564,057
Charitable activities 446,360 85,671 532,031 3,392,963
Commercial trading operations 181,824 - 181,824 536,777
Investments 3 99,290 - 99,290 126,080
Other 289,995 - 289,995 121,171
-------------------- -------------------- -------------------- --------------------
Total income 1,762,748 85,671 1,848,419 10,741,048
---------------------- ------------------ ---------------------- ----------------------
Expenditure on:
Raising funds
Commercial trading operations 236,486 - 236,486 520,954
Charitable activities:
Academic costs 4 1,583,351 67,671 1,651,022 3,048,891
Premises costs 5 2,075,859 - 2,075,859 2,025,402
Loss on disposal of fixed assets 137 - 137 751
---------------------- ------------------ ---------------------- ----------------------
Total expenditure: 3,895,833 67,671 3,963,504 5,595,998
---------------------- ------------------ ---------------------- ----------------------
Revaluation of investment property 10 283,400 - 283,400 -
---------------------- ------------------ ---------------------- ----------------------
Net (expenditure)/income (1,849,685) 18,000 (1,831,685) 5,145,050
Exchange (losses)/gains (7,491) - (7,491) 28,555
---------------------- ------------------ ---------------------- ----------------------
Net movement in funds for the year (1,857,176) 18,000 (1,839,176) 5,173,605
Total funds at 1 May 2020 14,524,801 1,312 14,526,113 9,352,508
---------------------- ------------------ ---------------------- ----------------------
Total funds at 30 April 2021 12,667,625 19,312 12,686,937 14,526,113
=========== ========= =========== ===========

All activities relate to continuing operations.

The total figures for 2020 include restricted academic costs of £48,025 and restricted income from charitable activities of £48,025. All income and other expenditure was unrestricted.

The notes on pages 19 to 32 form part of these financial statements.

15

BADER INTERNATIONAL STUDY CENTRE Registered number: 2837809 (A Company Limited by Guarantee)

CONSOLIDATED BALANCE SHEET

AS AT 30 APRIL 2021

2021 2020
Note £ £ £ £
Fixed assets:
Tangible assets 9 11,030,524 11,123,201
Investment property 10 2,369,000 2,085,600
-------------------- --------------------
13,399,524 13,208,801
Current assets:
Stocks 11,723 22,615
Debtors 11 84,614 194,305
Cash at bank 702,893 1,933,480
---------------------- ----------------------
799,230 2,150,400
Creditors:amounts falling due within
one year 12 (1,511,817) (833,088)
---------------------- ----------------------
Net current (liabilities)/assets (712,587) 1,317,312
------------------ ------------------
Total assets less current liabilities 12,686,937 14,526,113
------------------ ------------------
Net assets 12,686,937 14,526,113
=========== ===========
Charity funds
Restricted funds 13 19,312 1,312
Unrestricted funds:
General funds 13 11,942,617 13,799,793
Designated funds 13 725,008 725,008
-------------------- --------------------
Total funds 12,686,937 14,526,113
=========== ===========

The financial statements were approved by the trustees on 3 December 2021 and signed on their behalf, by:

J Purvis Trustee

The notes on pages 19 to 32 form part of these financial statements

16

BADER INTERNATIONAL STUDY CENTRE Registered number: 2837809 (A Company Limited by Guarantee)

CHARITY BALANCE SHEET

AS AT 30 APRIL 2021

2021 2020
Note £ £ £ £
Fixed assets:
Tangible fixed assets 9 10,982,161 11,111,042
Investment property 10 2,369,000 2,085,600
Investments 10 10,000 10,000
-------------------- --------------------
13,361,161 13,206,642
Current assets:
Stock 9,676 15,732
Debtors 11 430,345 372,367
Cash at bank 465,232 1,675,873
------------------ ------------------
905,253 2,063,972
Creditors:amounts falling due within
one year 12 (1,430,864) (765,391)
---------------------- ----------------------
Net current (liabilities)/assets (525,611) 1,298,581
------------------ ------------------
Total assets less current liabilities 12,835,550 14,505,223
------------------ ------------------
Net assets 12,835,550 14,505,223
=========== ===========
Charity funds
Restricted funds 19,312 1,312
Unrestricted funds
General funds 12,091,230 13,778,903
Designated funds 725,008 725,008
-------------------- --------------------
Total funds 12,835,550 14,505,223
=========== ===========

The financial statements were approved by the trustees on 3 December 2021 and signed on their behalf, by:

J Purvis Trustee

The notes on pages 19 to 32 form part of these financial statements

17

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 APRIL 2021

2021 2020
£ £
Cash flows from operating activities
Net (expenditure)/income (1,839,176) 5,173,605
Adjustments for:
Loss on disposal of fixed assets 137 667
Gain on revaluation of investment property (283,400) -
Dividends and interest received (99,290) (126,080)
Depreciation 193,948 182,911
Decrease in stocks 10,892 8,116
Decrease in debtors 109,691 2,914
Increase/(decrease) in creditors 678,729 (236,158)
----------------------- -----------------------
Net cash (used in)/provided by operating activities (1,228,469) 5,005,975
Cash flows from investing activities
Dividends and interest received 99,290 126,080
Purchase of property, plant and equipment (101,638) (108,250)
Disposal of property, plant and equipment 230 83
------------------------- ----------------------- -
Net cash (used in)/provided by investing activities (2,118) 17,913
Cash flows from financing activities:
Repayments of borrowing - (5,633,905)
------------------------ ------------------------
Decrease in cash in the year (1,230,587) (610,017)
Cash and cash equivalents at the start of the year 1,933,480 2,543,497
------------------------ ------------------------
Cash and cash equivalents at the end of the year 702,893 1,933,480
============ ============

18

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021

1. Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) – (Charities SORP (FRS 102)) and the Companies Act 2006.

The Charity meets the definition of a public benefit entity under FRS 102.

The financial statements have been prepared on a going concern basis. Annual budgets are prepared and approved by the Board of Trustees. Monitoring of the budget is undertaken via a review of monthly management accounts and meetings with budget holders as well as financial reports provided at twice yearly Board meetings. Forecast numbers compared to budget are prepared and submitted to Queen’s University, the Bader International Study Centre parent company throughout the year. Forecast numbers are also included in papers submitted to the Bader International study Centre Board.

1.2 Basis of consolidation

The financial statements consolidate the accounts of Bader International Study Centre and Herstmonceux Castle Enterprises Limited.

The charity has availed itself of Paragraph 3(3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity’s activities. No separate Statement of Financial Activities has been presented for the charity alone as permitted by Section 408 of the Companies Act 2006 and the SORP. The charity’s deficit, before consolidation, was £1,669,673 (2020: surplus of £5,297,393). The charity’s income, before consolidation was £1,689,849 (2020 - £10,353,859)

1.3 Going concern

The Trustees have reviewed their forecasts for the foreseeable future, these include considerations of the impact of COVID-19 on the Group. The Trustees consider that the Group will have adequate resources to continue to fund their activities for the foreseeable future, and as such there is no material uncertainty relating to going concern. They believe the going concern basis of accounting is appropriate for these financial statements. The Trustees have obtained confirmation from Queen’s University of their on-going support.

1.4 Income

All income is included in the Statement of Financial Activities when the charity has entitlement to the funds, probability of receipt and the amount can be measured with sufficient reliability.

Income from charitable activities consist of tuition fees for the provision of education. Tuition fees are recognised as income in the year courses are held. Donations and investment income are recognised when receivable. Other income is recognised at point of sale or when the service has been provided.

Income from commercial trading operations includes the total income of the wholly-owned subsidiary, Herstmonceux Castle Enterprises Limited. All other income is recognised when receivable.

19

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

1. Accounting Policies (continued)

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Academic costs comprise costs directly related to the charitable activity of education. This includes costs of staff directly related to the academic activity, travel, supplies and other academic costs.

Premises costs include all expenditure directly related to the general upkeep of the facilities. This includes costs of staff directly related to upkeep, supplies, utilities and costs associated with fees and renewals.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity.

Expenditure on commercial trading operations included the total expenditure of the wholly-owned subsidiary, Herstmonceux Castle Enterprises Limited.

Fundraising costs comprise costs incurred in inducing people and organisations to contribute financially to the charity’s work.

Termination benefits are accounted for on an accrual basis and in line with FRS102.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets costing more than £2,500 are capitalised and included at cost including any incidental expenses of acquisition.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Renovations - 30 years
Plant and machinery - 5 years
Fixtures and fittings - 5 years
Motor vehicles - 3 years
Computers - 3 years

On 24 April 1996 the charity paid £9,500,000 for its land and buildings. Due to its unique nature, Herstmonceux Castle has not been depreciated. The asset is an historic castle originally constructed in 1441 and the asset therefore has a very long useful life. Any depreciation charge, and the accumulated depreciation, would therefore be immaterial. Given that the remaining useful economic life is more than 50 years, an annual impairment review is undertaken by the trustees.

20

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

1. Accounting Policies (continued)

1.7 Investments

The charity’s investment in its subsidiary trading company is accounted for at cost on the charity balance sheet. The net assets, funds and financial activity of the trading subsidiary are consolidated in the consolidated Balance Sheet and the consolidated Statement of Financial Activities.

Investment properties are valued at the fair value as at the reporting date.

1.8 Leasing

Rentals under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

1.9 Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the SOFA.

1.10 Value added tax

The charity is exempt from levying value added tax on most services it provides, as these are largely educational in nature. For this reason it is unable to fully recover value added tax which it suffers on goods and services purchased. The subsidiary trading company operates value added tax on a normal basis. Irrecoverable value added tax is included in the appropriate heading in the Statement of Financial Activities.

1.11 Pensions

The charity operated a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

1.12 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction, except for tuition and residence fees, which are translated at the agreed budgeted exchange rate. Exchange gains and losses are recognised in the Statements of Financial Activities.

1.13 Judgement and estimation

Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key areas open to judgement and estimation include depreciation (based on the expected useful economic lives of assets) and valuation of investment property assets (based on market based assumptions).

21

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

1. Accounting Policies (continued)

1.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.15 Status of Company

The charity is a private company limited by guarantee. Each member has a potential liability not exceeding one pound. The directors of the charity constitute trustees for Charities Act purposes. Bader International Study Centre is also a registered charity in accordance with the Charities Act 2011. The registered office is Herstmonceux Castle, Hailsham, East Sussex, BN27 1RN.

2. Taxation

The company is a registered charity and is thus potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied exclusively to charitable purposes.

3. Investment income

Total Total
funds funds
2021 2020
£ £
Rents and other similar charges 98,813 122,128
Bank deposit interest 477 3,952
----------------- -----------------
99,290 126,080
========= =========

22

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

4. Academic costs

Total Total
funds funds
2021 2020
£ £
Direct staff costs 876,505 1,087,320
External staff costs 389,140 638,788
Student awards - 118,653
Food and supplies 3,136 275,680
Musicians in residence (restricted) 67,671 48,025
Laundry 1,171 16,876
Academic supplies 14,956 37,022
Equipment 29,618 77,217
Travelling 10,050 288,656
Student activities 5,504 34,103
Irrecoverable VAT 31,310 78,364
Administration costs (note 6) 178,519 268,982
Depreciation 32,196 51,705
Utilities 1,803 2,579
Housekeeping Supplies 9,443 23,758
Repairs and Renewals - 1,163
------------------------ ------------------------
1,651,022 3,048,891
============ ============

5. Premises costs

Total Total
funds funds
2021 2020
£ £
Direct staff costs 437,650 487,438
Housekeeping supplies - 247
Utilities 317,446 321,468
Equipment 23,828 41,967
Repairs and renewals 144,430 284,839
Irrecoverable VAT 46,480 66,354
Administration costs (note 6) 949,126 675,145
Depreciation 149,486 124,827
Travelling 7,355 18,215
External Staff Costs 58 4,902
------------------------ ------------------------
2,075,859 2,025,402
============ ============

23

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

6. Administration costs allocation

Administration costs allocation
Academic Premises Total
Costs Costs 2021
£ £ £
Direct staff costs 153,219 824,650 977,869
Telephone and fax 4,502 11,771 16,273
Printing, postage and stationery 98 2,030 2,128
Staff training 2,347 3,150 5,497
Professional fees - 100,715 100,715
Bank charges 136 1,652 1,788
Computer supplies 12,876 - 12,876
General expenses 5,341 4,908 10,249
Donations - 250 250
-------------------------------- ------------------------------- --------------------------------
178,519 949,126 1,127,645
================ ================ ================
Academic Premises Total
Costs Costs 2020
£ £ £
Direct staff costs 226,919 569,569 796,488
Telephone and fax 3,987 11,561 15,548
Printing, postage and stationery 2,724 9,777 12,501
Staff training 2,684 5,687 8,371
Professional fees 202 73,507 73,709
Bank charges 18 1,050 1,068
Computer supplies 12,651 - 12,561
Bad debts 19,797 3,994 23,791
General expenses -------------------------------- ------------------------------- --------------------------------
268,982 675,145 944,127
================ ================ ================

7. Net income

This is stated after charging:

Total Total
funds funds
2021 2020
£ £
Depreciation of tangible fixed assets:
- owned by the charitable group 193,948 182,911
Auditor’s remuneration – group 15,075 14,500
Auditor’s remuneration – non-audit services 1,400 1,350
================ ===============

24

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

8. Staff costs

The average monthly number of employees during the year was as follows:

2021 2020
No No.
The average number of employees during the year was: 83 104
================ ================
The number of higher paid employees was: 2021 2020
No. No.
In the band:
£60,001 - £70,000 1 -
£70,001 - £80,000 - 1
£80,001 - £90,000 2 1
£120,001 - £130,000 1 -
£130,001 - £140,000 - 1
================ ================

The aggregate pension contributions made by the charity on behalf of higher paid staff was £13,476 (2020 - £11,267). The number of higher paid staff accruing benefits in defined contribution schemes was 3 (2020 – 2).

The total employee benefits received by the key management personnel of the charity were £533,340 (2020 - £516,045).

Total redundancy and termination payments were £94,368 (2020: £60,961).

No remuneration or expenses were paid to the trustees during the year. Indemnity insurance is purchased for the trustees and this cost is borne by Queen’s University.

Total Total
funds funds
2021 2020
£ £
Employee costs:
Wages and salaries 2,043,626 2,238,626
Social security costs 158,981 162,302
Pension costs 51,362 50,429
Staff Benefits 57,374 58,041
------------------------------- -----------------------------
Total 2,311,343 2,509,398
================ ===============

External costs:

The group contracts out all of its catering activities to a specialist catering company in order to provide the necessary expertise in this area. The costs in the year for the group of such services amounted to £155,083 (2020: £445,476).

25

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

9.
Freehold Plant & Motor Fixtures &
Property Machinery Vehicles Fittings Total
£ £ £ £ £
Charity
Cost
At 1 May 2020 12,074,303 57,033 23,829 590,412 12,745,577
Additions 2,100 - 8,895 41,350 52,345
Disposals - (9,834) (2,545) (26,230) (38,609)
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
At 30 April 2021 12,076,403 47,199 30,179 605,532 12,759,313
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
Depreciation
At 1 May 2020 1,065,882 53,135 23,462 492,056 1,634,535
Charge for the year 128,227 1,949 2,965 47,718 180,859
Disposals - (9,834) (2,178) (26,230) (38,242)
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
At 30 April 2021 1,194,109 45,250 24,249 513,544 1,777,152
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
Net book value
At 30 April 2021 10,882,294 1,949 5,930 91,988 10,982,161
============= ============= ============= ============= =============
At 30 April 2020 11,008,421 3,898 367 98,356 11,111,042
============= ============= ============= ============= =============

26

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

9.
Freehold Plant & Motor Fixtures &
Property Machinery Vehicles Fittings Total
£ £ £ £ £
Group
Cost
At 1 May 2020 12,074,303 151,911 23,829 604,870 12,854,913
Additions 2,100 3,447 8,895 87,196 101,638
Disposals - (14,339) (2,545) (31,880) (48,764)
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
At 30 April 2021 12,076,403 141,019 30,179 660,186 12,907,787
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
Depreciation
At 1 May 2020 1,065,881 136,213 23,462 506,156 1,731,712
Charge for the year 128,227 5,749 2,965 57,007 193,948
Disposals - (14,339) (2,178) (31,880) (48,397)
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
At 30 April 2021 1,194,108 127,623 24,249 531,283 1,877,263
------------------------- ------------------------- ------------------------- ------------------------- -------------------------
Net book value
At 30 April 2021 10,882,295 13,396 5,930 128,903 11,030,524
============= ============= ============= ============= =============
At 30 April 2020 11,008,422 15,698 367 98,714 11,123,201
============= ============= ============= ============= =============

10. Investments

Rented land

The charity owns areas of arable land and pasture which do not form part of its operational assets, but which are let out as farmland and generate rental income. The land is held in the accounts at fair value as follows:

Fair value 2021 2020
£ £
At 1 May 2020 2,085,600 2,085,600
Revaluation 283,400 -
-------------------- --------------------
At 30 April 2021 2,369,000 2,085,600
========== ==========

The fair value is based upon a formal report and valuation as at 15 September 2020, prepared in accordance with the RICS valuation Global Standards 2017 and where relevant the previous RICS Valuation Professional Standards UK January 2014/15 (the red book) and the International Valuation 2017 Standards (IVS). There are no restrictions placed upon the land or the income generated from it. The Trustees are satisfied that there has been no change in fair value in the intervening period.

27

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

Equity

The charity has an investment in subsidiary – its holding of 100% of the issued share capital of £10,000 £1 ordinary shares in its subsidiary trading company, Herstmonceux Castle Enterprises Limited which is incorporated in England and Wales, company registration number 02902475.

The aggregate value of capital and reserves and the result for this undertaking for the financial year are as follows:

Capital and Loss for
reserves the year
Herstmonceux Castle Enterprises Limited (138,612) 168,748
========= =========
Debtors Group Charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 3,896 32,068 1,181 30,493
Amounts owed by group undertakings - - 352,043 197,124
Other debtors 4,461 2,183 4,461 2,183
Prepayments and accrued income 76,257 160,054 72,660 142,567
-------------------------------- ------------------------------- -------------------------------- --------------------------------
84,614 194,305 430,345 372,367
================ ================ ================ ================

11. Debtors

12. Creditors:

Creditors:
Amounts falling due within one year Group Charity
2021 2020 2021 2020
£ £ £ £
Trade creditors 98,129 132,921 78,869 129,200
Other taxation and social security 1,115 8,973 1,115 8,973
Accruals and deferred income 203,385 280,903 141,692 216,927
Amounts owed to group undertakings 1,209,188 410,291 1,209,188 410,291
-------------------------------- ------------------------------- -------------------------------- --------------------------------
1,511,817 833,088 1,430,864 765,391
================ ================ ================ ================

28

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

13. Consolidated Statement of funds – year ended 30 April 2021

Brought Transfers Gains/ Carried
forward Income Expenditure In/out (losses) forward
£ £ £ £ £ £
Designated funds
Strategic initiatives 725,008 - - - - 725,008
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
725,008 - - - - 725,008
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
General funds
General fund 11,789,291 1,580,924 (3,659,347) - (7,493) 9,703,375
Non charitable trading funds
- HCE 264,903 181,824 (236,486) 2 210,243
Revaluation reserve 1,745,599 - - - 283,400 2,028,999
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
13,799,793 1,762,748 (3,895,833) - 275,909 11,942,617
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total unrestricted funds 14,524,801 1,762,748 (3,895,833) - 275,909 12,667,625
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Restricted funds
Musicians in residence 1,312 49,705 (49,705) - - 1,312
Innovation Fund - 3,475 (3,475) - - -
University of Waterloo - 14,491 (14,491) - - -
Bader donation - 18,000 - - - 18,000
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total Restricted Funds 1,312 85,671 (67,671) - - 19,312
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total funds 14,526,113 1,848,419 (3,963,504) - 275,909 12,686,937
============ ============ ============ ============ ============ ============

The designated fund for student experience enhancement represents those funds designated by the trustees for expenditure to enhance the students experience at the BISC.

The designated fund for capital upkeep represents those funds designated by the trustees for capital repairs or replacements which may be required to maintain the asset base.

The designated fund for strategic initiatives represents those funds designated by the trustees for strategic initiatives which cannot be managed within the annual operating budget.

The designated fund for student wellbeing represents those funds designated by the trustees to cover any liability for student medical costs which may fall on the charity.

The general reserve fund represents those funds which are unrestricted and not designated for other purposes.

The restricted fund for musicians in residence is restricted for use in that specific programme.

29

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

13. Statement of funds (continued)

Consolidated Statement of funds – year ended 30 April 2020

Brought Transfers Gains/ Carried
forward Income Expenditure In/out (losses) forward
£ £ £ £ £ £
Designated funds
Student experience
enhancement
fund 3,992 - (3,992) - - -
Capital upkeep 187,736 - (187,736) - - -
Strategic initiatives 725,008 - - - - 725,008
Student wellbeing 15,000 - (15,000) - - -
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
931,736 - (206,728) - - 725,008
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
General funds
General fund 6,424,781 10,156,246 (4,820,290) - 28,555 11,789,291
Non charitable trading funds -
- HCE 249,080 536,777 (520,955) - 264,903
Revaluation reserve 1,745,599 - - - - 1,745,599
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
8,419,460 10,693,023 (5,341,245) - 28,555 13,799,793
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total unrestricted funds 9,351,196 10,693,023 (5,547,973) - 28,555 14,524,801
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Restricted funds
Musicians in residence 1,312 48,025 (48,025) - - 1,312
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
1,312 48,025 (48,025) - - 1,312
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total funds 9,352,508 10,741,048 (5,595,998) - 28,555 14,526,113
============ ============ ============ ============ ============ ============

30

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

14. Consolidated Analysis of net assets between funds

Unrestricted Restricted Total
funds funds funds
2021 2021 2021
£ £ £
Tangible fixed assets 11,030,524 - 11,030,524
Investment property 2,369,000 - 2,369,000
Current assets 779,918 19,312 799,230
Creditors due within one year (1,511,817) - (1,511,817)
Creditors due in more than one year - - -
-------------------------------- ------------------------------- --------------------------------
12,667,625 19,312 12,686,938
================ ================ ================
Unrestricted Restricted Total
funds funds funds
2020 2020 2020
£ £ £
Tangible fixed assets 11,123,201 - 11,123,201
Investment property 2,085,600 - 2,085,600
Current assets 2,149,088 1,312 2,150,400
Creditors due within one year (833,088) - (833,088)
Creditors due in more than one year - - -
-------------------------------- ------------------------------- --------------------------------
14,524,801 1,312 14,526,113
================ ================ ================

15. Ultimate parent undertaking

The charity is a subsidiary undertaking of Queen’s University at Kingston (Canada) incorporated in Canada. The largest group in which the results of the charity are consolidated is that headed by Queen’s University at Kingston (Canada), incorporated in Canada. The consolidated accounts of this university are available to the public and may be obtained from Queen’s University, Kingston, Ontario, Canada. No other group accounts include the result of this charity.

16. Related party transactions

During the year the charity received income of £446,267 (2020: £3,309,401) from Queen’s University relating to tuition and residence fees. A further £745,279 (2020: £6,564,057) was received as grants and donations from Queen’s. Total expenditure of £251,718 (2020: £251,358) was payable to Queen’s to cover costs incurred by Queen’s on the charity’s behalf. At the balance sheet date £1,209,188 (2020: £410,291) was owed to Queen’s University.

During the year a distribution of £754 (2020: £128,452) was received from Herstmonceux Castle Enterprises Limited. Other recharges of £152,038 (2020: £164,305) were made between Bader International Study Centre and Herstmonceux Castle Enterprises Limited. Recharges of £37,915 (2020: £49,971) were made between Herstmonceux Castle Enterprises Limited and Bader International Study Centre. At the balance sheet date £352,043 (2020: £197,124) was due from Herstmonceux Castle Enterprises Limited.

31

BADER INTERNATIONAL STUDY CENTRE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

In light of the emergence and spread of the coronavirus (COVID-19) prior to year-end, no adjustments have been made in the in the year ended 30 April 2020 to reflect the impact of the pandemic. The Trustees are monitoring the situation very closely to assess the potential impact on its operations.

The Trustees have prepared forecasts to plan for the above, including any reasonably foreseeable mitigating factors, and they are comfortable that the Group can continue to operate as a going concern for the foreseeable future.

32