R8gistgred number.. 2198970 Charlty number.. 1042523 EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020 LU88OCK FINE LLP Chartered Accountants Patèrnoster House 65 St Paul's Churchyard London EC4M 8AB
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company Limited By Guaranto81 CONTENTS Page Reference and Administrative Details of the Charity, its Trustees and Adviser8 Trustees. Report Independent Auditors. Report on the Financial Statements Statement of Flnancial Actlvltles Balance Sheet 10 Statement of Cash Flows Notes to the Financial Statements
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company Limited By Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020 Trustees Or U Hoppe l Redemann Dr E Thorne Company registered number 2198970 Charity registered number 1042523 Registered office 69-71 Great Eastern Street London EC2A 3HU Principal Operating Officer R Bills Independent auditors Lubbock Fine LLP Chartered Accountants Palemosler House 65 Sl Paul's Churchyard London EC4M 8AB Bankers Barclays Bank plc PO Box No 4578 155 Bromplon Road London SW3 1XD Cornmerzbank 40300 Dusseldorf Germany Page 1
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company Limitèd By Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2020 The Trustees presenl their annual report, which include5 the director's report. together with Ihe audited financial statements ol the Charity lor the year from 1 Septembèr 2019 10 31 August 2020 The Annual Report serves the purposes of both a Trustees, report and a directors, report under company law The Trustee5 confirm that the Annual Report and financial Statements of the Char11y comply with the current statutory requirements, the requirements of the Charity's governin9 document and the provisions ol the Statement of Recommended Practice ISORPI applicable lo charitie5 preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffeclive 1 January 20191. Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companie5 under the Companies Act 2006 Islralegic Report and Directors. Report) Regulations 2013 has been omitted. Trustees The Trustees who served the charity during the year were as follows. Dr U Hoppe l Redemann Dr E Thorne Objectives and Activities The aims and objectives for which the Charity is establishèd are the advancement of educ81ion, especially In business studies, and training for emplDymenl This Increases employability and skills In a future environment where such skills will be at a premiLJm The Charity, when pursuing ils objectives, also aims to support Individuals who, out of lack of financial means or other reasons. potentially might not be able lo benefit from the educational activities provided The 51rategies for achieving the college'5 aim5 and objectives are lo develop programmes of education and Vocational training and deliver them in a way that enables them to participate al the same time as gaining experience at work or In further study elsewhere. Through ils connections with the Brokerage and employers such as Comrnerzbank, Newton Asset Management, Ruffer LLP and Slate Street Bank the Charity operates the Higher Education Vocational Traineeship scheme. For the forthcoming year the nurnber ol young people recruited on lo this programme has been 31 students In years one and two ol the prograrnme and 11 continuing onto their top-up Bachelor. This continues the record ol healthy recruitment on the programme lor this type of programme in recent years, and the scheme is going from strength lo strength. This long standing prograrllme opens up the possibility of a career in the financial Services secloi lo local people who otherwise would not necessarily have considered such an option land Increasingly do not have the financial means lo embark Dn a higher education course). It also provides a strong boost to diversity in backgroun(J of recruilmefjl al the College. Local people, and ethnically diverse staff, are evidently under- represenled In the financial services industry In the City Df London and this activity aims to address this imbalance. Tuition has been maintained on these progiammes during the pandemic IhrDugh a mixture ol on-line and in person 5essiOnS. The Charity also piovide5 sub5id15ed education for 51udenls who take part in short course5 which ellhance their understanding of cross-cullural issues, which is of growing Importance lor the country as we seek lo display an outward-facing image to the World and provide young people with the skills lo compete globally Numbers 8re down on the previous year for short courses IPDP5 IProfe5siorial Development Programmesl as they are lermedl with activity buoyant until the Covid pandemic in January 2020, bul no activity since then Ljnlil the end ol the Iinancial year, due to the situation that has affected the entire economy. The Charity continues to offer free short courses for the Brokerage, for more than 20 local School pupils, bul again this ha5 been held In suspension due lo the effects of the pandemic These are young people who might otherwise not go into careers In the City and are from local, diverse and underprivileged backgrounds In selling the objeGlive5 and planning the activities of the Charity, the Trustees have givèn careful consideratio lo the Charity Commission's general guidance on public benefit Page 2
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company Limitèd By GuarantÈel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Performance Demand for the Charily's prograrnrnes IHNDICMLIDMLIBachelor programmes and DSMLIMBA programme51 has been very good with the Vocational Trainee scheme continuing to achieve good numbers In partlCLJlar. However, due lo the pandemic PDPS have had lo be suspended. This Is the issue leading to much of the loss In income lor the past financial year Brexit continues lo cast a shadow Df Ljncertainly across business edLJcalion. bul there has not been a signilicanl effect on income. As reported In previou5 statements, because of the bellelils of a lower poundleuro exchange rale. there has actually been a posltive financial effe¢l This is only a short term advantage, because the situation between the EU and the UK with regards lo Brexit is still developing. To reslale what was known before - the College Is prepared for sub51anlial shocks and has had to cope with such an event In the past financial year. Expenditure continues lo be monitored and controlled and reserves maintained as a prudent response to this shock The Charity has undergone an unforeseen loss due to the pandemic especially. bul continues lo be well placed lo rebound when conditions Improve and can survive the current conditions due lo 115 very good Iinancial managemenl Financial Review The Charity recorded a deficit 01 £319,886 In the financial year ending 31 August 2020, a5 opposed to a SLJrplus 01 £144,055 2019. The losses were In major part due lo the pandemic and the suspension of all professional development short courses after January 2020. As these courses are at least 400/0 ol our usual income, the effect has been 5ubslanlial. Total funds held by the Charity as of 31 August 2020 are £1,849,43712019 - £2.169.3231. The charity doe5 not hold any reslricled funds. As mentioned in Ihe previous section and in last year's slalements, the exit of Ihe UK from the European Union presents ¢ha11enges which still canllol be lully seen. bul al the rnomenl the immediate effect of IDwering the slerlingleuro exchange rate has continued to be of benefit lo the Charity. The Charily's reserves policy Is lo build up lover the next 5 years) reserves which are equivalent lo the value Ihisloric costs) of ils premises plus half the annual turnover This will be used If the charity encounters financial difficulties In Ihe future. Plans for Future Periods The outlook for 2020121 is one where the Charity will continue to report a Ireducedl loss bul maintain Ils financial slabilily. The Charity remains Confident that It Can weather the storms affecting all sectors al the moment The effects of Brexit and the pandemi¢ especi8lly will be fell in the coming year as well and the Charity again will expect a loss, thoLJgh a smaller one than the present reported figLJres We do have the intention lo maintain a sound financial position in the coming financial year, as the balance sheet and bank balance are expected to remain in a healthy position. The overall aim Is ID ensure that the services ol the Charity continue to be relevant and serve the needs of Ils beneficiaries The UK left the European Union In January 2020, and il remains the case that this will adversely affecl the ability of the Charity to allract numbers on PDP courses la mainstay of the College's activities) It Is for this reason that the Charity needs lo hold a sizeable bank balance as the prospects of a 'hard Brexit, could be fundamentally damaging to the Charity in the future In order lo ensure the future running ol the PDP courses post-Brexit, a separate bul similar organisation IECBM CLGI has been established In the Republic of Ireland Thi5 require(S the use of lime by staff employed by the Charity, and since this new organisation has similar aiffls lo the Charity, these activities were carried out pro bono. Page 3
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company Limited By GuarantÈel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDEO 31 AUGUST 2020 Structure, Governance and Management The European College ol Business and Management InGorporaled as a company limited by guarantee on 26 November 1987 and registered as a charity on 1 December 1994. 11 Is governed by ils memorandum and articles of association There Is a strong bond between the charity and the German British Chamber of Industry and Cornmerce. The Chamber Is one ol the main supporters of the Charity and has common board members. The appointment ol Iru51ee5 15 regulated by the Charity'5 Memorandurn and Articles of Association. The power of appointment ol new trustees lies with the members and existing Board of Trustees. New trustees are recruited based on their allribules and the reqLJiretnenls of the Charity. and are familiarised with the work that the Charity undertakes through meetings and discussions with the Board Df Trustees and other employees of the Charily The Board of TrLJslees meet5 regLJlzrly during the year bul delegates the day-to-day running and management of the Charily to the Principal Operating Officer (who Is the Director and CEO), who rneels with the Chairman of the Board every month. Arrangements for setting pay and remuneration of key management personnel are decided upon by the Chairman and the Principal Operating Officer, and general policy Is lo increase staff remuneration lo compensate for Inflation plLJS a small Incentive Increase across the board. The Board of Trustee5 regularly conducts a full review of the major risks lo which the Charily is exposed and has established appropriate systems to mitigate these risks. These risks and the related systems are reviewed regularly by the Board of Trustees. alongside any new risks to which the Charity Is exposed. Statement of Trustees, Responsibilities The Trustees (who are also the director5 of the Charity for the purpose5 of Gompany lawl are responsible IDr preparing the Trustees, Report and the financial slalemen15 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) Company law requires the Trustees to prepare financial slalemenls 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 lair view ol the stale of affair5 01 the Charity and ol ils incotning resouice5 and application ol resources, InclLJding Its income and expenditure, for that period In preparing these financial slalemenls, the Trustees are required lo select suitable accoLJnting policies and then apply them conslslently., observe the methods and principles ol the Charities SORP IFRS 1021" rnake judgments and a¢¢ourtling eslimales that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been IDllowed. subject to any rnaterial parture5 disclosed and explained In the financial statements, prepare the financial 51alemenls on the going concern basis unless Il Is Inappropriate to presLJme that the Charity will continue In business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy al any 11me the financial p0511ion of the Charity and enable them to ensure thal the Iinancial statements comply with the Companie5 Act 2006. They are also responsible lor safeguarding the asse15 01 the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 4
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company Limited By Guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Disclosure of Information to Auditors Each of the persons who are Trustees al the time when this Tivslees. Report is approved has CDnfirmed that. so far as that TIu51ee is aware, there 15 no relevant audit information of which the chanty's audf(ors are unaware, and that Trustee has taken all the steps that ought lo have been taken as a Truslee in order ID be aware of any relevant audit Information and lo establish that the charity's aLJditDrs are aware of that information. In preparing this report. the Trustees have taken advantage of the small companies, exemption provided by section 415A ol the Companies Act 2006. Approved by der th members of the board ol Trustees and signed on their behalf by.. Dr U Hoppe Trustee Dale: Page 5
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company LimitÈd by Guarantèel INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT FOR THE YEAR ENDED 31 AUGUST 2020 Opinion We have aLJdited the financial slalemenls of European College of BLJsiness and Management Ilhe 'charity'l for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Slalemenl of Cash Flows and the related notes, including a sumrnary Df 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 Praclicel. In our opinion the financial statements.. give a true and fair view of the slate of the charitable company's affairs as al 31 August 2020 and ol Ils incoming resources and application ol resources, Including Its Income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepled Accounling Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit In accordance with International Standards on ALJditing IUKI IISAS IUKII and applicable law Our responsibilities under those standards are further described In the Auditors. responsibilitie5 lor the audit ol the financial stalements secliDn of our report We are Independent of the charitable company In accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the United Kingdom, including the Financial Reporting Council's Ethical Standard. and we have lullilled our other ethical responsibilities In accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provitje a basis for our opinion Conclusions Telaling to going concern We have nothing lo report in respect of the following mallers in relation lo which the ISAS IUKI require us lo report lo you where.. the Truslee5' use of the going concern basis of aceounling in the preparation of the financial slalemenls is not appropriate, or the Trustee5 have not disclosed in the financial slalement5 any identified material uncertaintie5 that may cast 51gnilicanl doubl about the charitable company'5 ability lo continue lo adopt the going concern basi5 of accounting lor a period of at least twelve months from the dale when the financ¢al statements are authorised for Issue. Page 6
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Gompany Limited by Guarantee) INDEPENOENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Other information The Trustees are sponsible for the other information The other information comprises the information included In the Annual Report. other than the financial slalemenls and our Auditors, Report Ihereon. Our opinion on the financial slalemenls does nDt cover the other Information and, except to the extent otherwise explicitly slated in our report. we do not express any form ol assurance conclusion Ihereon In Gonneclion with our audit of the financial slalemenls, our responsibility Is lo read the other Information and. In doing 50, consider whether the other Information Is materially Inconsistent with the financial slalemenls or our knowledge oblained In the aLJdit or olhepwise appears lo be materially misslaled. If we idenlfy such material inconsistencie5 or apparent material mis51atements, we are required lo determine whether there is a material mis51alemenl In the financial 51atemen15 or a material misstatement ol the other Information. If, based on the work we have performed, we conclude th21 there Is a material misstatement of this other information, we ale required lo report that fact We have nothing lo report in this regard. Opinion on other matters prescribed by the Companiès Act 2006 In our opinion, b85ed on the work undertaken in the cOue of the audit. the Information given in the Tiustees. Report for the financial year lor which the financial slaternents are prepared 15 corisislenl with the financial statements. the Trustees, Report ttas been prepared In accordance with applicable legal reqLJiremenls Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and ils environment Dbtained in the course of the audit. we have not identified material tnisslalernen15 in the Trustees, Report Vve have nothing lo report In respect of the following matters in relation lo which Companies Acl 2006 requires us lo report lo you if, In our opinion.. adequate accoLJnling records have not been kept, or returns adequale lor our audit have not been receivèd from branches not visitèd by u$.. or the linan¢i81 slalemenls are not in agreement with the accounting records and returns". or certain disclosures of Trustees. remuneration Specified by law are not made, or we have not received all the Information and explanations we require lor our audit, Dr the Tru51ees were not enlilled lo prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement lo prepare a Slralegi¢ Report. Page 7
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Responsibilitie5 of trustees As explained more fLJlly in the Trustees, Responsibilities Statement the Trustees (who are also the directors of the charitable company for the purpose5 of cotnpany lawl are responsible for the preparation of the financial statements and lor being satisfied that they give a true and lair view and for such internal control as the TrLJStees determine is necessary to enable the preparation Df financia5 statements that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability lo continue a5 a going cOnrn, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless Ihe Trustees either Intend lo liquidate the charitable company Dr to cease operations, or have no realistic allernalive bul lo do 50. Auditors. responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance aboLJt whether the financial statements as a whole are free from material mis51alement. whether due lo fraud or error, and lo Issue an ALJditors' Report that in¢ludes our opinion Reasonable assurance Is a high level of assurance, bul Is not a guarantee that an audit conducted i accordance with ISAS IUKI will always delect a material misstatement when il exists. Misslalements can arise from fraud or error and are considered material If, individually or In the aggregate, they could reasonably be expected lo Influence the economic decisions of users taken on the bas15 of these financial slalemenls. A further description of our responsibilities lor the audit of the financial slatements is located on the Financial Reporting Council's website at" w4w.frc.o .ukJaudilofSfes onsibililies This description forms part of our Auditors, Report. Use ofour report This report is made Solely ID the charitable companys mernbers. a5 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 stale to the charitable company's members those mallers we are rèquired lo slate lo them In an Auditors, Report and for no other purpose. To the fLillesl extent permitted by law. we do not accept or assume respon5ibilily lo anyone other than the charitable company and 115 members, as a body, lor our audit work, lor this report, or for the opinions we have formed. David Chandra (Senior Statutory Auditor) for and on Dehalf of Lubbock Fine LLP Chartered AccoLJntanls Palernosler House 65 St Paul's Churchyard London EC4M 8A8 Date.. 24 May 2021 P8ge 8
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 AUGUST 2020 Total fund$ 2020 Total funds 2019 Note INCOME Tuition lees and education contracts Investment Income 1,304,594 1.878 2.030,444 2,879 TOTAL INCOME EXPENDITURE Charitable activities Staff Costs Other operating expenses Depreciation Interest and Other finance costs 1,306,472 2.033,323 791,801 767,108 43.767 23.682 765.489 1,077.585 43,556 2,638 TOTAL EXPENDITURE 1,626,358 1,889,268 DEFICITIISURPLUS FOR THE YEAR RECONCILIATION OF RESERVES: Total reserves brought forward Net movement In reserves 1319.8861 144,055 2,169,323 1319,8861 2.025,268 144,055 TOTAL RESERVES CARRIED FORWARO 1,849,437 2.169,323 The Slalemenl of Comprehensive Income includes all gains and losses reclwnised in the year. All income and expenditure In 2020 and 2019 related to Ljnrestricted reserves All item5 of incorne and expenditure related lo conlinuling aclivilies. The notes on pages 12 10 21 forrn p8rt of these financial statements Page 9
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) REGISTERED NUMBER: 2198970 BALANCE SHEET FOR THE YEAR ENOED 31 AUGUST 2020 2020 2019 Note NON-CURRENT ASSETS Tangible fixed assets CURRENT ASSETS 1,091.010 1,132,408 Trade and other receivables 410,556 1,183090 575,023 1,407,719 Cash and cash equivalents 1,593.646 1,982,742 Creditors". amounts falling due within one year 10 1832.0391 1945,1071 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 761.607 1.037,635 1,852.617 2.170,043 Creditors. amounts falling due after more than one year 13,1801 17201 NET ASSETS 1,849.437 2,169,323 CHARITY RESERVES Unreslricled reserves 14 1,849.437 2.169,323 TOTAL RESERVES 1,849,437 2,169 323 The financial statements have been prepared in accordance with the provisions applicable lo enlilies subject lo the small cornpanies regime. The nanc I slalernenls were approved and aulhorised for Issue b eTru ees signed on their behalf by.. l Redemann Tru¥lee Dr U Hoppe Trustee Dale- (L[oc Iii The notes on pages 12 to 21 form part of these financial statements. Page 10
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020 2020 2019 Note Cash flows from operating activities Nel cash (used inllproduced by operating activities 17 1222,2591 292,266 Cash flows from invèsting activities Purchase of tangible fixed assets 12,370} 122,0061 Nel cash used in investing activities 12,3701 122,0061 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 1224.6291 1.407.719 270.260 1.137.459 Cash and cash equivalents at the end of the year 1,183.090 1.407,719 The notes on pages 12 10 21 form part of these financial slalemenls Page 11
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial slalewellls have been prepared In accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities Slalemenl of RecowTnended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK end Republic ol Ireland IFRS 1021, the Statement ol Recommended Practice Accounting for Further and Higher Education leffeclive 1 January 20191 IFEIHE SORP 20191 and the Companies Act 2006. Where differences arise between the Charitie5 SORP IFRS 1021 and the FEIHE SORP 2019 the FEIHE SORP takes precedence. European College ol Business and Management meets the definition of a public benefit entity Ljnder FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise slated In the relevant accounting policy. 1.2 Company status The Charity is a company lirlliled by guarantee The Members of the charitable company 8re the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee Is limited to £10 per member of the Charity The registered office address and principal place of business is 69-71 Great Eastern Street. London, EC2A 3HU. 1.3 Reserves accounting General fLJnds are Ljnreslricted funds which are 8vailable for use al the discretion of the TrLJslees in furtherance ol the general objectives of the Charity and which have not been designated for other purposes. Investment incorne, gains and losse5 are allocated lo the appropriale fund. 1.4 Income All income 15 recognised once the Charity has enlillemenl lo the income. Il Is probable that the income will be received and the amount of income receivable can be measured reliably. Course fees and related income, nel of dirèct costs, are recognised In the period in which the course lakes place. 1.5 Interest receivable Interest on funds held on deposit Is included when receivable and the amount can be measured reliably by the Charity-, thi5 Is normally upon nolilicalion of Ihe interest paid or payable by the in51itution with whom the funds are deposited. 1.6 Expenditure Expenditure 15 recognised once there Is a legal or constructive obligation lo transfer economic benefit lo a third party. It is probable that a transfer ol economic benefits will be required In settlemenl and the amount of the obligation can be measured reliably. Charitable activity costs Incurred on the Charrty's educational operations, Including support costs and costs relating to the governance of the Charity apportioned lo charitable activities. Page 12
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limitèd by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 ACCOUNTING POLICIES ICONTINUEDI 1.6 Expenditure ICONTINUEDI All expenditure Is Inclusive ol Irrecoverable VAT. Other operating expense5 represent those costs incurred directly in support of expenditure on the objects Of the Charity and Include project management and costs Incurred In connection with adminislralion of the Charity ancj compliance w11h constilulional and slalutory requirements 1.7 Tangible fixed assets and depreciation Tangible fixed assets are carried al cost, net of depreciation and any provision for impairment. Depreciation Is not Charged on freehold Iznd. Depreciation is provided al rates calculated lo write off the cost ol fixed assets, less their estimated rè$idu81 value. over their expected useful lives on the following basis.. DeprlatIOn is provided on the following bases. FreehDld property Equipment Property Improvements 20/0 straight line 20 /ll130 /0 redLJcing balance1200/¢ 51raight line 5°/0 straight line 1.8 Trade and other receSvables Trade and other debtors are recognised al the settlement amount after any trade discount offered Prepayments are valued at the arnounl prepaid nel ol any trade discounts due 1.9 Cash and cash equivalents Cash and cash equivalen15 includes cash and short-term highly liquid investments with a short malurily of three months or less from the dale of acquis11ion or opening of the deposit or similar account. 1.10 Liabilitie5 and provisions Liabilities are recognised when there Is an obligation al the Balance Sheet dale as a result ol a pasl event. 1t 15 probable that a transfer of economic benefit will be required In Settlement. and the amount of the selllemenl Gan be eslimaled reliably Liabilities are recognised at the arnounl that the Charity anlicipales Il will pay lo sellle the debt or the amounl it has received a5 advanced payments for the goods or services it mLJSt provide 1.11 Financial instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsèquently measured at their settlement value with the exception ol bank loans which are subsequenlly measured al arllortlsed cost using the effective Intest method 1.12 Pensions The Charity operates a defined conlribLJlion pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect Df the year. Page 13
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 ACCOUNTING POLICIES ICONTINUEDI 1.13 Foreign currències Monetary assets and liabilitie5 denominated in foreign currencies are translated into sterling at rates of exchange ruling al the balance sheet dale TransaclioT15 In foreign currencies are translated Into sterling at the rate ruling on the date of the transaction. Exchange gaias and105ses are recognised In the Slalement ol Comprehensive Income ANALYSIS OF TUITION FEES AND EDUCATION CONTRACTS 2020 2019 Course fees and related Income Discounts allowed 1.254.715 13,0321 1.050 51,861 1,979,730 11.4671 710 Olhei fee5 Other Income 51.471 1,304,594 2.030,444 INVESTMENT INCOME 2020 2019 B8nk interest receivable 1,878 2,879 1,878 2,879 STAFF COSTS 2020 2019 Wages and Salaries Social security costs Contribution lo defined contribution pen510n 5cheme5 703.183 69,794 18.824 678,464 70.509 16,516 791,801 765.489 Page 14
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 STAFF COSTS (CONTINUED} The average number of persons employed by the Charity during the year was as follows". 2020 2019 No. Number ol Lecturers Number adminislralive staff The number ol employees whose employee benefits (excluding employer pension costs) exceeded £6D.000 waB". 2020 No. 2019 In the band £90.001- £100,000 None of the Trustees rèceived any remuneration, benefits In kind or reimbLJrsemenl ol expenses during the year12019 - £nill. Total muneration paid lo key management personnel was £113,791 12019 £111,0991 Page 15
EUROPEAN COLLEGE OF 8USINESS AND MANAGEMENT IA Company Lirnited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 OTHER OPERATING EXPENSES 2020 2019 Advertising Computer costs Accomodalion External rent, rates and water Cleaning Repairs and maintenance Insurance General expenses Travel 101,574 16.152 129,259 49.921 24,597 20.297 17.533 6.136 72.785 7.501 193,829 10.530 63,436 14,270 5,412 5,250 4,789 13,568 10,270 85,233 15,479 386,325 58,176 26,623 21,527 16,023 7,828 97,112 8,700 216,692 6,504 56,622 ALJdilors remuneration Consultancy Telephone Exam lees and associated costs Printing, PDStage and slalionery Light and heal Bad debts Staff training Legal and professional fee5 Accountancy 8,649 13,224 7.978 15.252 10,408 767,109 1.077.585 INTEREST AND OTHER FINANCE COSTS 2020 2019 Bank charges Foreign currency loss I Igainl 6,816 16,867 11.214 18.5761 23,683 2,638 Page 16
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 NET INCOMING RESOURCESIIRESOURCES EXPENDEDI 2020 2019 Deprec181ion of tangible fixed assets." owned by the charity Auditors. remuneration Audit 43.765 6,000 1.500 18,824 16,867 43,556 7,200 1,500 16,516 18,5761 Auditors. remuneration Other Staff pension conlfibulions Exchange Igainl I loss TANGIBLE FIXED ASSETS Freehold Property property Equipment improvements Total COST OR VALUATION Al 1 September 2019 Additions 1 ,302,872 124.099 2,367 401,485 1,828456 2.367 Al 31 August 2020 1.302,872 126,466 401,485 1,830,823 DEPRECIATION Al 1 September 2019 Chafge for the year 382,607 20.057 110,166 3,634 203,275 20,074 S96,048 43,765 At 31 August 2020 402,864 113,800 223,349 739,813 NET BOOK VALUE At 31 August 2020 900,208 12,666 178,136 1,091,01D Al 31 August 2019 920,265 13,933 198,210 1,132,408 Freehold property includes land with a cost of £300,000 12019 - £300,000) on which depreciation is not provided Page 17
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 TRADE AND OTHER RECEIVABLES 2020 2019 Trade receivables 360.828 510,850 285 63,888 Other debtors Prepayments and accrued income 10474 39,254 410 556 575.023 CREDITORS: Amounts falllng due within one year 2020 2019 Trade creditors Other taxation and social security Accruals and deferred Income 14,011 19,890 798, 138 50,973 20,261 873,873 832,039 945,107 2020 2019 Deferred Income at 1 September 2019 Resources deferred during the year Amounts released from previoLJS periods 845,774 735,884 1845,7741 957,256 845.774 1957,2561 735 884 845.774 Deferred income relates to tuition fee income receNed In advance for courses due lo commence after 31 August 2020. 11. CREDITORS: Amounts falling due after more than one year 2020 2019 Accruals and deferred income 3.180 720 Page 18
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limitad by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 12. PENSION COMMITMENTS The Charity Dperates a defined contribLJtion pension scheme in respect of Its employees. The as5els of ltte scheme are held separately from those of the Charity In a separately administered fund The pension costs per the Statement ol Comprehensive Income represent contributions due from the company and amounled lo £18,82412019 - £16,5161 13. OPERATING LEASE COMMITMENTS Al 31 August 2020 the Charity had commitments lo make future minimum lease payments un¢Jer non- CanlIable operating leases as IDIIows 2020 2019 Not later than 1 year Later than 1 year 8nd not later than 5 years 2,819 7,297 2.819 10.117 10,116 12.936 The total lease paymen15 recognised as an expense were £2,81912019 - £3,5761_ 14. STATEMENT OF RESERVES STATEMENT OF RESERVES- CURRENT YEAR Balance at 1 September 2019 Balance at 31 August 2020 Income Expenditure Unrestricted Reserves General Reserves 2,169,323 1,306.472 11.626,3581 1,849,437 STATEMENT OF RESERVES- PRIOR YEAR Balance at Balance at 31 August 2019 September 2018 Income Expenditure Unrestricted Reservès General Reserves 2,025.268 2,033,323 11,889.2681 2.169.323 Page 19
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR 2020 Tangible fixed assets CLJrrent assets 1,091,010 1.593,646 1832,0391 13.1801 Creditors due within one year Creditors due in more than one yoar 1.849,437 ANALYSIS OF NET ASSETS BETWEEN FUNDS- PRIOR YEAR 2019 Tangible fixed assets Current assets 1,132.408 1.982,742 1945,1071 17201 Creditors due within one year Creditors due in more than one year 2.169,323 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 17. ACTIVITIES 2020 2019 Nel incomelexpendilure for the period las per Slalemenl of Fsnancial Activiliesl 1319.8861 144,055 ADJUSTMENTS FOR: Depreciation charges Decrease in debtors Decrease In creditors 43.767 164,468 1110.6D81 43,556 252,074 1147.4191 NET CASH PROVIDED BYIIUSED INI OPERATING ACTIVITIES 1222.2591 292,266 Page 20
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 18. ANALYSIS OF CASH AND CASH EQUIVALENT¢ 2020 2019 Cash and cash equivalents 1,183,090 1,407,719 TOTAL CASH AND CASH EQUIVALENTS 1,183,090 1.407,719 19. ANALYSIS OF CHANGES IN NET DEBT At1 September At31 2019 Cash flows August 2020 Cash al bank and in hand 1.407,719 1224,6291 1,183,090 1,407,719 1224,6291 1,183,090 20. RELATED PARTY TRANSACTIONS As at 31 August 2020, an amounl of £10,474 12019 £nill was due from ECBM Company Limited By Guarantee, a cornpany which has common directors. The amount 15 Interest free. unsecLJred and repayable. There were no other related party IransacliDns noted dunng the year 21. OMISSION OF STATEMENT OF CHANGES IN RESERVES Given that the only movement which would be shown on the Slalemenl of Changes In Reserves is the total comprehensive (Deficilllsurplus shown In the Statement of Comprehensive Income, this primary financial slalemenl has been owitted Page 21