Reg18tered number: 2198970 Charlty number: 1042523 EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2022 LUBBOCK FINE LLP Chart•red Accountants Pat8most•r Hous• 65 St Paul's Churchyard London EC4M 8AB
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company Llffllted By Guarantee) CONTENT8 Page Refernnce and Adrnlnl¥tratlvo D•tsll• of the crIty, Its TN•t••• and AdvlMr• Tru•tM•' R•port Ind•p•nd•nt Audltorn. R•port on lh• Flnanclal Stat•m•nt• 8tatsm•nt of Flnancw Actlvltl 10 B•l•n Sh••t 11 8t•l•m•nt ol Cuh Flo 12 Nol•• to th• Flnanclal 8tst•m•nt• 13-22
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company Llmlted By Guarnntee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES ANO ADVI3ER8 FOR THE YEAR ENDED 31 AUGUST 2022 Trust• Dr U Hoppe l R8demann Dr E Thorne Company regl•tsrod number 2198970 Charlty r•gl•t•rod numb•r 1042523 Regl•twed offl 89-71 Greot Ea8tem Streat London EC2A 3HU Prlnclpal OperAtlnq Offlr R 81118 Ind•p•nd•nt •udltorn Lubbod( Flne LLP Chartered Accountant Patemoster House 85 Sl Paul's Churchyard London EC4M BAB B•nk•r• Barclay8 8ank plc PO Box No 4578 155 Brompton Road London SV13 1XD Commerzbank 40300 Du68eldorf Gomany Page 1
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Gompany Llmited By Guorantee TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees present their annual report. which Includes the dlrectorfs report. together vAlh Ihe audited ffinancial statements of the Charity for the year from 1 September 202110 31 August 2022. The Annual Rgport serves the purposes of bolh a Truslees. report and a directors. report undar company law. The Twstees confirm that the Annual Report and financial slalemenls of the Charity Comply with the current slatulory requlremonts. the requirements of the Charitys govemlng document and the provlslon5 of Ihe Slatement of Recommended Practice ISORPI 8pplicable lo charities preparing their aGGounls In accordance wth the Flnandal Reporllng Standard applicable in the UK and Republic of Ireland {FRS102) leffecllve l January 2019). Slnce the Charity qu81ifi88 as small under section 382 of the Companies Act 2006, Ihe Strategic Report required of medlum and large companies under the Companies Act 2006 (Strategic R8POrt and Directors, Report) Regulations 2013 has been omlttad. Trustee Th8 Trustees who served the ch8rSty durfng the year were as follow8: Dr U Hoppe l Redemann Dr E Thorn8 ObJoctlv•• •nd Actlvltlos The alms and oblectlves for whlch th8 Charfty Is eslabllshed are the advancement of educatlon, 8sp8clally In business studies, and tralnSng for employment. This increases employdbility and ski118 in a future environment whero Such 8kill8 wlll be at o premlum. Th8 Charity, whan pursulng ils objective6, 8180 alms to 8UPPOrt Indlvldua18 who, out of lack of flnanclal me8n8 or other reasons, pol8nlially might not be able to benefit from th8 educational activiti88 provlded. The 8tralegies for achi8ving the college's aims and obltIVeS are to develop programme8 of education and vocaUonal training and d81iver them in e way Ihal enables them to parti¢ipate al the 8amè rne as galnlng 8xpert8nce at work or In further study elsewhere. Through 116 connections wth employers such 88 Commerzb8nk, Bank of Ntrw York and NeIon Assel Managemant the Charlty operates the Higher Education Vocational Traineeship scheme. For the lortheoming year the number of young people Tecruiled on to this programme has been 22 students in years One and two of the programme Ihlgher than in the previous year). 10 ere continuing onlo their lop-up Bachelor. This continue8 the record of healthy racrultrnenl on the progremrne for this type of programme in recent years, and the Scheme remains in a stablè conditlon. Thls long Blanding programme opens up the posslbility of a c8re8r in the financial services sector to local peopla vtho olherwse would not necessarily have ¢onsider8d such an option 18nd increasingly do not have the financial mean5 lo embark on a higher education ttiutsel- It 81$0 provide$ 8 strong boost to diversty in background of recruitment al the College. Local people, and ethnillY diverse Stsff, a evidenuy under-represented in the financial seNGe5 industy in the City of London and this aGtivty aims to address thi8 imbalance. The Charity also provid88 8ub8idised education for students take part in short courses which enhance their underslanding of rross ¢uttural issues, which is of growng importance for the country as we seek to display an outAvard facing irnage to the world post Bre1 and provide young people wtth the skills to compete globally. The funding these students receive is ¢onne¢led to the Erasmus Plus proiect, and this is still available in future. notsvilhslanding the UK'S departure from the European Union, through our official branch in Dublin. Student numbers have continued lo be affected by the pan4emi¢, and the inabllty of w)ung people lo travel to the College. This has been the key reason ft)r the cording of 8 defidl In the financial year lo 31 August 2022. though there is still 'pent up, demand for these cour¥es and we began lo yee ¥ retum of students to the College in the summer of 2022. These restrictions were predicted in Ihe forets$l budgets last year. and the College does expect sludenl numbers for short courses to grow in this wming year. The Charlty would normally also provide free short courses for the Brokerage, for more than 20 IrKal school pupils each year. These are young people who might otherwise not go into careers in the City, and are from local, derse and UnderprIleged backgrounds. Athough, once again, the pandemlc has taus&4 a suspenslon of thls offer, the Charlty VAII continue lo explore ways to reactivate that connection In the fvture. Page 2
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT {A company Llmlted By Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 In setllng the oblecllves and planning the gclNities of the Charity. the Trustees have given careful consideration to the Chorlly cmIsSIon,$ general guidance on public benefit. Porfomianco Demand for the Charitys programrnes {HNDICMLIDMLIBachelor programme8. DSMLIMBA programmes and PDPS IProfessional Development Programmesll has contlnued to be affected by the restrlctions Imposed due to the pandemic, and the Increased 108888 reflecl the withdraw81 of govemment support that Cushloned this Impacl during the lockdown p8riod of 2020-21. The financlal p8rfomiance for the year lo 31 August 2022. 18, however, 'low water mark, and the Ch8rfty18 confident that the 81tuation wlll be Improved In the nexl yaady annual finanal 8t8tements. Th1$ 19 because the Charltvs actlon8 to mitlgate the Impact of Brexlt and recover Its p08itlon follon9 the pandoml¢ ara going to bear fruit now that travel reslrlctbons have been lifted and recrullment on professlonal devolopmant programme8 h85 re8urned. These courses had already 81arted to resume in the 8ummer of 2022, and wlll contlnue to recover. There wlll be much hl9her c08ts due lo inflatlon and éxtemal rent In futur&, It must b8 not6d. 8011 11 b8 a struogle to gchleve 8n Immedlale relum to Ihe $urplus86 of pravSou8 ye8r8. The Vocallonal Tralnee 8chem8 saw a reductlcffi In numb6r8 recrulted In tho year to 31 Auoust 2022, but thbs Was a lernporary reductSon es employers odlusted to the Some extemal Maet forces. In the followlng flnancial y88r the Charlly has already di)ubled the number8 of Ilrst year recTuIts. Brexlt contlnue8 to be a negallve fsctor whlch 11 oulla8t the effects of tha pandemlc, bul ther6 remalns a dear demand for the Charws course8. The Charlty conllnues to benefft from a strong level ol reserve8 bullt up In prevlou8 years. and th18 once again att8819 io an excellent record of prudent financial rnanagement. The Charty contlnu&8 lo be well placed to bOUnd from 1ts1088es a8 Wa 886 8 gradual but clear recovery. FlnanGSal Rqvlow The CharSty recordad a deflclt of £293.736 In the financlal year ondlno 31 Augu8t 202212021- £136,929). The Charfly conllnu8s lo be prudently m8nageé. Total funds held by the Charfty as of 31 Augu8t 2022 are £1,382,905 (2021 - £1,676,641). The Charfty does not hold any ostrlcted fund8. In the pre-pandernlc era, the Charitys reserves pollcy wa8 to bulld up reserves equlvalent to tho value (h181orl¢ costs) of Its premlse9 plus haw the annual tumover. Th1$ w8s been an Important pollcy, as It ha5 enabled the Charity lo malntsin It8 operaOn9 durlng the fin•n¢ial dlfficultle¥ caused by the pandemlc. Currently. and going forward, the general alm of the Charity will be to rebuild its reserves in the medium temi. Plans for Futur• P•rfod• The outlook for 2022123 18 one where the Charity will aim to port a reduction in the defiul and work toward¥ breakeven, malntaining its finanual stability- The ¢0very has been slower than at first predicted, bul the figure5 reported in Ih88e annual statements are, as noted above, predicted to b8 the bottom of the curve leading to a much improved position In the next finoncial year. The reason for thls optimism is due to the Charitls actions to restructure during the period of the pandemic, with reduction In the number of staff. the retum of professional development programmes whi¢h has hlslori¢8lly a¢¢ounled for over 40% of the Chariws annual income land wthich had been re(luced to zero a¢tivlty during Ihe p8ndemicl and the continued optimisation of use of the Chariws physical assets. There will be an inc0$1llg of Ihe Charivs delivery of short courses through the branch in Out1n. The Chadty aims to work towards break even, but the situation will doubdegs be much improved in the next yearfy financlal statements. The overall aim remains to ensure that the services of the Charity continue to be relevant and serve the need$ of its beneficiarie¥. Page 3
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company Llmlted By Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Stru¢ture, Governance and Management The European College of Business and M8n8gement Incorporaled as a company limited by guaranlee on 26 November 1987 and regi81ered 88 8 charity on 1 December 1994. 11 is govemed by its memorandum and artlcles of assoclBtion. TheTr Is 8 Strong bond betsve8n the charity and the German Br6ll$h Chamber of Industy and Commerc8. The Chamber18 one of the maln supporters of the Charity 8nd has common board member8. The appoSntment of trustees Is regulated by the Charity8 Memorandum and Artldo8 of A660cl8tlon. The power of appointment of new Iruslees lie8 wllh the member8 and existing Board of TnJ8lees. New tru$lees are re¢ruiled based on thelT attrlbules and the requirements of the Charity, and are famillarlsed Nwth th6 work that the Charlty unéert8ke8 through meetlngs and dlscusslons wlth the Boaril of Trustee8 and olher employee5 of the Charlty- The Board of Trustees ffleets regularty durlng th8 year but delegates the day-to-day runnlno and management of the Charity lo the Prlnclpal Operating Offlcer (who Is the Dlrector and CEO). who meets wth the Chairrnan of the Board every month. Arrangernenls for Setting pay and remuner8tlon of key menagemenl personnel are declded upon by the Ch8imian 2nd the Prlnclp81 Operallng Officer, arKI general pdl¢y18 to Increase slaff remuneratlon to compensate for inflation plus a Small Incentlve Increase acAO8$ the board. The 8oard of Tru8tees regularty conduct8 a full le•W of tho molor rl8k8 to whl¢h the Charlty t8 exposed and ha8 e81ablished approprlate sy3tems to mitlgale thes0 r18ks. These rSsk$ and the related 8yBlem8 are rev58wed rogularly by the Board of Tru8te88, alongside any n8w d8ks to whlch the Ghoflty 1$ exposed. Stat•m•nt of Tru•l•••' R•fjponalblllti The Trusl8e8 (who aro also the dlrectors of the Charlty for tha wrposes of company law) are r88ponslble lor preparing the TnJstee8' Report and the financlal stalernents In accordance wllh 8pplic8ble law and Unlted Klngdom ACCOUnng Slandard¥ Iunlted Kingdom Generally Accepted Accountlng Practice). Company law requlres tho Trust8e$ to prepare fln8ncl818talem8nts for each finandal ye8r. Under company law th8 Trustee8 must not approve the fln8nclal 8latem8nts unless they are satisfied that they glve o true and falr view of the slate of affairs of the Ch8rhy and of It$ Incomlng re80urce8 and 8ppIic8tlon of re80urce¥, Indudlng It8 Inwme and expendllure, for that period. In preparlng the88 flnanclal 8talements. the TN8tee8 are requlred lo.. select 8uilabl8 accounting policies and then apply them consi8tenUy' observe the methods 8nd pdncipl83 of the Charilles SORP IFRS 102); make judgments and accounting esllmates th8t are reagonabl8 and prudent- Stale vthether Bpplicable UK Accountlng Stand8rd8 (FRS 102) have been followed, 8ublect to ony material departures dlsdosed and explalned In the flnancial statemenl8' prepare the finanrial staternents on the going concem basis unless11 is Inappropriate to presume that the Charfty wlll ccmlnue In busSn886. The Trustees are responslble for keeping 8dequate accountlng record8 that are sufflclent to Show and explaln the Chariws transactions and disclose with reasonable accuracy at any tlme the financial position of the Charlty and enable them to ensu that the finanryal ststemenl$ ¢omply vlth the Companles Act 2006. They are also responsible for safeguarding the assets of the Charity and hen¢e for taklng reasonable steps for the pyevention and detection of fraud and other irregularitie8. Page 4
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT {A company Lirnitsd By Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Dixlosure of Inforniation to Auditorn Each ol the persons who are Trustee8 at the time when this Tru$l¢e$' Report is approved has confirmed that.. so far as thot Trustee Is aware, there Is no relevant audlt Infom)atlon of whlch the ¢harW8 audttors are unaware, and that Trustee has taken all the steps that ought to have baen taken 88 8 Trustee in order to be aware of any relevanl audit Inforfflatkjn and lo establish that Ihe Charltys audllors are aware of that Informallon. In pr6padng thls report, th8 Tru8tees h8ve token 8dvanl8ge of the small componle8' exemplon prov(ded by 8eGtion 415A of the Companle8 Act 2006. f the member8 of the l)oard of Trusteos and 81gneLI their behalf by.. Dr U Hopp• Trustee Dale: Page 5
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company LSmlted by Guarnntefr) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT FOR THE YEAR ENDED 31 AUGUST 2022 Oplnlon Wa have audiled the financial statements of Europ8an College of Bu5ine55 and Management Ilhe 'ch8rrVI for the year ended 31 August 2022 which comprise the Stal8ment of Financial Activities, the Balance Sheet, the Slalement of Cash Flows and the relaled notes, induding a summary of significant accounting Oicies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom AG¢ounling Standards, including Financial Reporting Standard 102 'Th8 Financial Roporting Standard applicable In the UK and Rèpublic of Ireland, {United Kingdom Generally Accepted Accounts'ng Practice). In our oplnlon th8 finan¢S0l stat8mants'. give a true and fair view of the state of Ihe charft8ble compan¥s affalr5 as at 31 Augujl 2022 end of It8 incomlng resources and appllcation of resourGes. InGlu¢Jlng Its Income and expendllure for the year then 8nded', have been properfy pr6par8d In accordance wlth Unlted iangdom Generally Accepted Accounting PraGtice', and have been prepared In 8c¢ordanca wlth the requlr8m8nt8 of th8 Comp8nles Act 2006. B••ls for oplnlon We conducted our audlt in accordance with Intemallon81 Sl8nd8rd8 on Auditlng (UK) IIW {UK)) and 8ppllc8ble law. Our regponsibillties under those 8tandards are further (leJcrlbed In the Auditors, responslbilitle8 for tha audll of the financial glalement8 section of our report. We are independent of the charitable company in accoré#n¢e th the elhlcal requSrement9 that are relevant to our audlt of the flnandal staternents in the UnSled Klngdom, Includlng the Flnanclal Reporting Council'8 Elhlcal Standard, and we have fulfilled our other ethical responsibilltias In 8ccordance wllh these requlremenls. We believe that the audK 8dence we have obtalned18 ufficionl and approprfale lo provlde a ba818 for our opinlon. Conclu•lon• r•latlng to golng cOnM In auditing tho flnanclal s1olem6nts, we have conclu¢Jed that the Trustees. u8e of the golng ¢on¢em ba818 of accounting in the preparation of the financial ¥latements i¥ oppropdate. Based on the work we have perfonned, w• have nol Identlfied any materlal uncertalnlles r61allng to events or ¢ondition$ that, individually or collects'vely, may cast significant doubt on the charitable companl8 abllity to continue as a going concern for 8 period of at 188St twelv8 month8 from the flnan81 Jlatements are authorisod for issue. Our respon5ibilikne¥ and the respon$ibllitles of the Trustees vlth respect to golng concem are described In the relevant 5eGlions of this report. Page 6
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Llmlted by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BU81NESS AND MANAGEMENT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 Other infonnatlon The other infonnation comprises the infomiauon Included In the Annual Report other than th6 flnanrial statements and our Auditors. Report thareon. The Trustees are responsible for the olher Infom)aUon conlainad within the Annual Report. Our opinK)n on the financlal statements does not cover the other Information and. except lo the extent othenvise &xpli¢ltiy slated in our report, we do not express any fonn of assurance concluslon thereon. Our responsibillty is to read the other Information and, In dolng so, Gonslder wheth8r the other infomiation is materially in¢onsistsnt wth the flnancial statements or our knowledge obtalned In the course of the audll, or olhemse appears to be materially misstatad. If w& Idenllfy suth rnaterial Incon8iStend8s or apparent materlal mlsstatements, we are required lo determin8 whother thls giv8s rise lo a malerlal mlsstatement In th8 flnanclal statements themselves. If, ba8ed on the work we have perforned, we conclude that there18 a malerlal mlsstatemonl of this other inf0m1aQn, wo ara raqulred to report that fact. Wa have nothing to report In th18 regard. Oplnlon on oth•r m•tt•r• pr••¢rlb•d by th• Companloi Act 2006 In our opinlon, based on the work undertak8n in the course ol the audlt.. the informallon glven In the Trust888' Report for the financlal ar for whlch the financlal 8tatoments are prapared Is consistent hth the flnanclal 818lemenl8. the Tru8tees' Report has been prepared In accordance wllh applicable legal raqulrements. Matter• on whlch w• •r• r•qulr•d to r•port by •xcoPtlon In the Ilght of our knowlodgè and understanding of the ch8fltable company and 6t8 envlronment obtalned In tho course of the audll. w• havè not Idenlfled malerlal ml88tslem6nts in the Trustees, Report. W6 hav? nothlng to report tn respect of the followlng m8tters In relatlon to Comp8nl88 Act 2006 requlre8 U8 to report to you K, In our oplnlon.. adequata accounlng records have not been kept, or relums adequate for our audlt have not been received from branches not visited by us., or the finanGial 5talement8 are not In agreement wlth the 8ccounJng record8 and retum8,' or certaln dlsdosuTe8 of Trust8es' remuneration spe¢Mled by law are not made; or we have not received all the infomiation and axplanations we require for our audS1: or the Trustees were not entitled to prepare the finan¢ial $tslemerrts in accordance wth the sm811 ¢ompanloS ime and lake advantage of the small ¢ompanies' exemptions in preparlng the Trust888' Report and from the requirement to prepare a Str8t8glc Report. Rosponslbllltlas of trusts08 As explalned more fully In th8 Trusl885' R8sponslbllltles Stslement, Ihe Trustees (who are also the dlrectors of th8 charitable MpanY f(Y the purposes of company lawl are responsible for the weparallon of the flnanGi81 Statements and for being SasTIed that they glve a true and fair ew, and for such internal control 09 the Trustaes deterynine is necessary to enable the preparation of financial statements that are frèe from m8terial misstatoment, whether due to Iraud or error. In preparing the fin8na81 statements, the Trustees are rosponslble for 8ssesslng the charltable companvs 8bility lo continue as a going concem, discloslng. as applicable. matters related to going concem and using the going oncem basis of accounting unless the Trustees elther irrtend to liquidate the charitable company or to cease operalions, or have no realistic altemauve bul to do so. Page 7
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarnntee) INDEPENDENT AUDrroRS' REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINE88 AND MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 Audltors. rgsponslbilities for the audit of tho financial gtalements Our objedves are lo obtain reasonable assurance abjut whether the financial slalemenls a¥ a vtho18 ar8 fre& from material misstatement, wttelher du8 to fraud or error, And lo 18sue an Audilcys, Report that In¢ludeg our opinion. Reasonable assurance is a high level of assurancè, bul Is not a guarantee that an audit conducted In accordance with ISAS IUKI wlll always delecl a materi81 misstatement when it exists. Misstatements can arf8e from fraud or error and are considered materi81 if. individually or In the aggregate. they could rea80nably be expected lo influence the ec£0Mle d6clslons of users t8ken on the basls of those financial 8talemenls. Irregulxr11188, Indudlng fr8ud, are instancès ol non-compliance vmth laws and regulatlong. We de81gn procedure8 in line with our responsibililios, outlined above, lo delect material mls8tatemenl8 In re8pect of Irregularitles. Including fraud. In identifying and a$s8$81ng ri8k8 of material mlsstatement in re8pect of Irregularhle8, Indudlng fraud 2nd noncomplian¢e wlth laws and regulation8, we con8ldered th8 followlng: The nature of the sector and the Impact of Covid-19 on nnanaal and opeiallng perforrnan¢e and policies,. Enquiri65 of management, Including obtsinlng and revlewlng supportlng document•llon, con¢8mlng the charity's policies and procedure8 relating to.. SdentIfng, evaluatlno arKI complylng wllh la*B and regulaUon8 and whether they were Bware of any Instances of non-compli8nca', detectlng and re8ponding lo the r48k8 of fraud and vthethor Ihey have knowledge of any actual. Suspected or all8g8d fraud., and the Sntemal controls 88tabllshed to mltlg8te rfsk8 ralatad to fraud or non-compllance of 18w8 and regulation8; and D18CU8slon8 among the engaoemenl 18am regardlng how and where fraud mSghl occur in the finanoal 8talements and any poténtl81 indlcators of fraud. The engggemenl team Includes audit partner8 and staff who have oxtensive experience of worklng vMlh charitie8 in 8imllar 8aCtor8 and thi8 experience w88 relevarrt lo the d18cusslon Bbout where Iraud dsks might arlse. Wo 8180 oblalned an und8rslandlng of the 18g81 and regulatory frBmewofk that the chartty operal88 In, focusing on provisions of those laws and regulations that had dlrect effect on the detemilnalion of material amounts and dlsclosure8 In the financlal 8talem8nts. The kay laws and r8gul2tlons we con81dered in this conlext Included FRS 102, the Companie$ Act, the UK Charitie8 Act, Charftles SORP 2019 and the Higher Education SORP 2019. In addition. w8 considèred provlsions of other laws and regulations that do not hav8 a direct effect on the financ181 ststements bul ¢omp118nce which may be fundamental lo the charftys ability to operate or to avold a malarfal penalty. As 8 $It of these procedure8, we consldered th8 particular ar8a5 that were 5us¢eptlbl8 to m188t8tement due to ITregulaTlties, includlng fraud were In respecl of management overrfde. Ckjr procedure8 to respond lo risks identified included the following.. Rgviewing the financial statement di$¢losures and te8ting lo supporting documentauon to assess compliance th provlsion8 of relevant laws and regulations described as hawng a direct effect on the financial $tstements', Enquiring of man8gement conceming actual and potential liligalion and daims., Performlng analytical procedurès to Identlfy any unusual or unexpeGtsd relationships that may indicate risks of material misstatement due to fraud., Reading minutes of meetings of those charged wth goveman¢e', In addressing the risk of fraud through management override of controls.. assessing whether the judgements made in making accounting estimates are indiGative of a potential bias: and evaluatsng the rationale of ary significant transadions that are unusual or outside the nomial course of the charity's operatlons. Page 8
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Limitod by Guarant•e) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINE88 AND IANAGEMENT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 Because of the inh8r&nl limi18tion$ of an audit, there is a risk that we will not detect 811 irregularllle9. Including those leading lo a material misstatement in the financial statements or non-compli8n¢e wllh regulatlon. This risk incr8as8s the more that compliance yth a law or regulation is removed from the events and tran$acllon8 reflected in the finan¢ial 5tatemenls. as we V11 be less likely to becom8 aware of instsn¢as of non4cKnpllanrA. Th8 risk is also greater regarding irregularities occurring due to fraud rather than error. a8 fraud Involves Intentional ¢onGtsalment. lorgory. colluslon. om188ion or misr8presenl8tlon. A further description of our r88pon8lbllltle8 for the audlt of the finandal statements 18 located on the FSnancS81 Reporting Council's webslte at.. .frc.o .ukJauditorsres onslbllllles. Thls de8crfpllon fornis part of our Auditors. Report. Us• of our report Thls report18 mada 8016ly to tha charltabl8 compan18 m8mber8, a8 a body, In accordance vlth Chapter 3 of Part 16 of tha Compani65 Act 2006. Our 8udll work has been undertaken 80 that we mlght stale lo the charftablo companls members thos8 matters wo are requlr8d to 8ts1e to them in an Audltors, Report 8nd for no other purpo80. To tho fullest extent pemiltted by law, we do not •¢cepl or assume responslbllKy lo anyone other than the charitab18 company and Ks members, a8 a body, for audll work, for th18 report. or for tha oplnlon8 We have formed. Davld Ch•ndrn (S•nlor 8latutory Audltor) for and on behalf of Lubbock Fln• LLP Chartered Accountants Paternoster House 65 St Paul'8 Churchyard London EC4M 8AB Da18.. 16 February 2023 Page 9
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Cornpany Limited by Guarnnte•) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 AUGUST 2022 Tot•1 fvnd• 2022 Totsl funds 2021 Nota INCOME Tuition fees and education contracts Investment income 817.977 109 937.299 277 TOTAL INCOME 818,086 937.576 EXPENDITURE Charllable actlvltle5: Staff cogts Other oper8tlng expen888 Depreciation Interest and other flnance costs Loss on d18PO801 of flxed 888ets 809,880 449,952 46.642 5.348 696,054 328,136 43,406 8,162 747 TOTAL EXPENDITURE 1,111,822 1,074.505 (DEFICIrySURPLU8 FOR THE YEAR <293,736) (136,9291 RECONCILIATION OF RESERVES: Total ragerve8 brought foThYard Nel mov8menl in re$ep488 1.678.641 (293,736) 1.813,570 (136,929) TOTAL RESERVES CARRIED FORWARD 1.382.905 1,876,641 The Statement of Comprehen81ve Income Includes 811 galns 8nd108885 recognised in the year. All Income and expendltur8 In 2021 and 2022 related to unre8trbcted r88eNe8. All Items of Income and expenditur8 ralat8d to continulng actlvltles. The nole8 on pages 1310 22 fomi part of these financlal slatements. Page 10
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Limitod by Guarnntee) BALANCE SHEEr REGISTERED NUMBER: 2198970 AS AT 31 AUGUST 2022 2022 2021 NON4URRENT A88ETS Tangible fixed a88ets CURRENT A88ET8 1,062.980 1.073.168 Trade and other rec8lvable8 Cash and cash equlvalents 303,695 677,514 300,369 946,456 981.209 1,246,825 CdI10.- amount8 falllng dua wlthln one year 10 (661.284) (643.352) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 319,925 603,473 1,382,905 1,676,641 NET A88ET8 1,382,905 1,676,641 CHARI RE8ERVES Unrestrlcted reserves 13 1,382,905 1,676,641 TOTAL RE8ERVE8 1,382,905 1,676.641 The finAncial 8t8t8ment8 have been prepared in acu)rdance the prov181on8 appllcable to enlltias subjoct to the 8mall companles reglmo. Tho financlal ststern8nts were approved and author18ed for Issue the ru$lee6 and signed on Ihelr behalf by.. Or U Hopp• Tru6188 l Rod•mann Trustaa Date: Ii(I I The notes on pages 13 to 22 fomi part ol these finandal 8tat8ments. Page 11
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT {A Company Llmlted by Guarnnteo) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Cuh flow8 from oporatlng actlvltles Net cash (used inyproduced by operang 8¢tlvStles 16 (232.597) (210,6021 Cuh flo from Inv••llnq actlvltl•• Bank inlarnst rncelvable PUT89 of tanglble fixed 8888ts 109 (36,454) 277 128.309) N•1 u•h used In Inv•stlng aGtlvftl•i {36.345) (26,032) Ch•ng• In ¢a•h and ca•h equlvalents In the ymr Cash and cash gquivalent8 at the beglnnlng of Ihe year (268,942) 1236.634) 946,456 1.183,090 Cash and *h •qulval•nt• at the end ol th• y•ar 17 677,514 946,456 The not88 on poges 13 to 22 form part of th08e flnanclal 8tatemen18 Page 12
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Llmlted by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 ACCOUNTING POUCIES 1.1 Ba818 of preparatlon of flnanclal staternentl The fin8na81 slaternenls have been prep8red In 8¢cordance the Charlties SORP (FRS 102) - Acciyjnting and Reporting by Charities.. Statement of Recommended Practice applicable to charllie$ preparing th8lr accoun18 In accordence with the Flnancial Reporting Stand8rd applicable In the UK and Republic of Ireland IFRS 1021 leffeclive 1 J8nuary 20191, the Financial R6POrtlng Standard applic4ble In th8 UK and Republlc of Ireland IFRS 102). the Statement of Recommènded Practlce Accounllng for Further and Hher Educatbn (effective 1 January 2019) IFEIHE SORP 2019) ané the Companles Act 2006. Where differences arlse betsveen the Charities SORP {FRS 102) and the FEIHE SORP 2019 the FEIHE SORP take8 precedenca. Eurcyan Colleg8 of 8usin888 and Management meets tho definluon of a publlc benefft entity under FRS 102. Assets and li8blllties are initially recognlsed 81 hlstorlcal cost or transaction value unl888 otherwise stated In the relevant accountlng poll¢y. 1.2 Company 8tatu• Th8 Charlly Is a company Ilmiled by guarantee. The member8 of tha charitable Company are the Trustees n8med on page 1. In the event ol the Charity being wound up, th8 liobllity In respecl of the guarantee Is Ilmlted lo £10 per memb8r of the Charity. The reglstered offlce addre88 and prindpal place of busln88818 6&71 Gr08t Eastem StreeL London, EC2A 3HU. 1.3 R••orve• accountlng General fund8 are unr8gtrfct8d fund8 whlth are available for u88 al th8 dl8cretion of the Twstees In furtherance of th8 ganaral oble¢tives of the Charity and vthlch have not been d881gnated for olhar purpose8. Investmonl Sncom8, gains and108888 are allocated to th8 approprlate fvnd. 1A Incom• All income 18 recognlsed once the Charity has entitlemenl to the Income. tt 18 probable that the income wlll be recelved and tho amount of income receivable can be measurad rellably. Course fee$ and related incorne. net of dlr8Ct C4)8ts, are racogn18ed In the period In whlch tho coursè takes place. 1.5 Intoresl rgcolvablo Interest on funds held on deposlt 1$ included receNabl8 and the amount can be measu reliably by the chaty. th18 1$ normally upon notification of th& Interest paid or payable by the instituuon wlth whom the funds are deposited. 1.8 Exp8ndlluro Expendfture Is recognised once there Is a legal or constructlve obligatlon to Iransfer econcthic benefrt to a thlrd party, it 15 probable that a transfer of economic ben8ffts 11 be requiffjd in settlement and the amount of the d)ligation can be measured reliably. Charitable actimty costs incurred on the Charitys educational operations, Includlng 5UPPOrt costs and costs relating to Ihe govemance of the Charity apportioned to charitable actiwtle8. Page 13
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Llmlted by Guarante•) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 ACCOUNTING POLICIES ICONTINUEDI 1.8 Expendlturo (contInu) All axpendilure Is InGluslve of Irrecoverable VAT. other opar8tlng expenses represent those costs Sncurred dlrectty in support of expenditure ijn the objects of the Charity and Include project management and costs incurr8d In connection adminlslration of the Charity and compliance vrith constitutional and slatutory requirem8nts. 1.7 Tanglbl• flx•d a••frt• and depr•clallon Tangible fixed a888t6 are caffied al cost, net of depreciation and any provision for Impalmi6nl. 08pr8clalion Is not charged on freehold land. Depr8ciation is provided Bl ral08 cal101¢d to wrSte off the cost of fixed 88$8ts. 1888 Ihelr e8tlmaled resldual volue, over their expected u8eful IIv68 on Ihe followlng b3sl8'. DepreclaUon18 provided on the followlng b88es: Freehold property Equipment Property Improvements 2% 8tralght Ilne 20W30% reduclng balan¢e120% stralght line 5% Straight Ilne 1.8 Trado and oth•r r•c•lvables Trade and other debtors are recognised at Ihe setuernent arnounl after any trade d18count offered. Prepayments are valued at the arnount prepald nel of any trade discounis due. 1.9 Ca•h and c••h oqulv8lont• Cash and ca8h equivalents include8 ca8h and 8hort-lerffl highly liquid inve5trn9nts with a shcrft malurlty of Ihree months or lesB from dat8 of acquI8on or opening ol the deposit or $imllar account. 1.10 Llabllltlos and provl*lon• Llabilities are recognised there is an obligation at the Balance Sheet dale as a result of a pa8t event.11 Is probable that a transfer of econornic benefit wll be requiffjd In $8tUament, and the amount of Ihe $8tUement can be estlmated reliably. Liabilities are recognised at th? amount that the Charlty anticipates 11 wll pay to Settle the debt or the amount it ha5 received as advan¢ed payTh8nls for the goods or service$ It must prowde. 1.11 Flnanclal Instruments The Charbty only has financial assèts and flnanclal Ilabllitles of a kind that qU81ify as basic finanryal Instruments. Basic financial instruments are initially recognised at transacllon value and subsequenuy measured at their setuemenl value with thè axcaptlon of bank loans whlch are sUbseqUenY me88ured at 8morlised (>Jst using the effective Intsrest mothod. 1.12 P•nslon8 The Chadty operates a defined contribution pension scheme and the pension tharge rewesents the amounts payable by the Charity to the fund in Tesp8Gt of the year. Page 14
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A CoMnY Llmited by Guaranloe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 ACCOUNTING POUCIES {CONTINUEDI 1.13 Forelgn curr•ncie8 Monetary assets and liabilities denominated In forergn TrJrrenGl8s ara translated Into sterllno at rates of exchange ruling at tho balanc8 sh881 date. Transactions In foreign currancles ar6 translated Into 8terllng at the ral8 rullng on the date of the transaction. Exthange galns and1086e8 are recogni8ed In the Statement of Comprehen8lve Incom8 ANALY818 OF TurrioN FEES AND EDUCATION CONTRACTS 2022 2021 Course fee8 and related Income Discounts allowed Other1088 Other Income 790,222 (2,3471 1,080 29,022 824,654 (1.731) 1.080 113.296 817,977 937,299 INVESTMENT INCOME 2022 2021 Bank Interest r8calv8ble 109 109 2TI STAFF COSTS 2022 2021 Wage8 and salart8$ So¢i81 seGurity ry)sts Contribution to defined contr1trAon p6nslon schemes 531,712 61,846 16.322 603.083 72.219 20.753 609,880 696.055 Page 15
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Llmlted by Guarnntee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 8TAFF C08T81CONTINUED) Tha averdge number of persons 8mployed ty the Charity during Iha year wa8 as follows: 2022 No. 2021 No. Numb8r of L6Gturars Number administrallve slaff 10 10 15 17 The number of 8mploy8es wh086 omployee b8n8fits (excludlng ernployer pen8lon c08ts1 axcaeded £60.000 w88: 2022 2021 No. In the baThl £90,001- £1 ¢J),000 Non& of the Trustees reca6ved any romunerallon, bonefft8 In klnd or relmbJr8ement of expen8e8 durfng the yaar {2021- £nlll. Total remunerauon pakl to key managemant p8r80nnel was £114,215 (2021- £113.770). Page 16
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Llmlted by Guarantee) NOTE8 TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 OTHER OPERATING EXPENSES 2022 2021 Advertising Computer costs Accommc#JalSon External rent. rntes and water Cleanlng Repalrs and melntenance Insurance General 8xp8ns05 Travel Audltors remunerallon Consull8nGy Telephone Exam fees and as8o¢laled co#ts Printlng. po8tage and Btatlon Llghi and heat Staff tralnlng Legal and profe881onal fe Accountancy 28,225 10,806 22.183 12,470 1,465 31,719 18,956 14.869 17,324 3,724 13,545 9,090 42,538 20.863 22.450 17.512 4.778 45,538 9.600 11 135,514 13,847 41.748 17,040 4,875 3,188 18,693 11,183 109,080 7.851 28.136 12,600 2.717 1.731 10.559 10.117 449,952 328.136 INTEREST AND OTHER FINANCE COST8 2022 2021 Bank th8rge8 Forelgn currencylosg 3.597 1.751 4,924 1,238 5.348 8,162 Page 17
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Limited by Guarnntee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 NET INCOMING RESOURCESI{RE8OURCES EXPENDED 2022 2021 Audllors, remuneration - Audit Audilor8' r8muneratlon - (Xher Staff pen8ion contrlbutlons DepreCIaOn Exchange1058 9,600 420 16.322 46,642 1,751 8.700 390 20.753 43,406 1,238 TANGIBLE FIXED ASSETS Frn•hold Propgrty property Equlpment lfflprovement• Totsl Co•1 or valuatlon Al 1 September 2021 AddSllon• 1,302.872 125,461 7,257 423,311 29,197 1.851,844 38,464 Al 31 August 2022 1,302,872 132.718 452,508 1.888.098 D•pr•clatlon At 1 September 2021 Charge for th8 year 422,719 20,059 112,333 4.393 243.424 22.19) 778.478 46,642 At 31 August 2022 442,778 116,726 265,614 825,118 Nel book valu• At 31 Augu812022 860,094 15,992 186,894 1,062,980 Al 31 August 2021 880,153 13.128 179,887 1.073,168 Freehokj propety in¢lude& land wlth a o)st of £300,000 {2021- £300.OCQI on whith depre¢ialion is not provkled. Page 18
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Llmlted ty Guaranteè) NOTES TO THE FINANCIAL STATEMENT8 FOR THE YEAR ENDED 31 AUGUST 2022 TRADE AND OTHER RECEIVABLES 2022 2021 Trade receivables Other debtors Prepayments and accrued Income 2e7.081 263,311 32.324 37,058 303,695 300,369 10. CREDITORS: Amounts falllng du• wlthln one y••r 2022 2021 Trade credllor8 Other laxatlon and sodal 88curfty Other credltor8 Accruals and delorrad incom8 18,087 15,294 21,938 805,965 7,903 20,579 20,164 594.706 661,284 643,352 2022 2021 Deferred Incoma 811 September 2021 Resources deferred durfng the year Amounts released from prevlous pe0d$ 577,092 771,751 592,993 577,092 {577,092) <771,751 > 592,993 577,092 Deferred Incoma relat88 to tulllon fee Inc(8 recelved In advance lor courses due to commenea after 31 August 2022. A180 Included In defeffed Income Is rental In¢ome received in advanc8 of £28,29112021- £nill. 11. PENSION COMMITMENTS The Charity operates a deflned conlrfbubon pension scheme in respect of its employees. The 868ets of the 6Gheme are held separately from those of the Charity in a Separately administered fund. The penslon sts per the Statement of Comprehenslve In¢ome represent contributlons due from the ompany and amounted to £16,32212021- £20.7531. Page 19
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Llmitod by Guarnnteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 12. OPERATING LEASE COMMITMENTS At 31 August 2022 the Charfty had Gcffjmltments to make future minimum lease payments under non- cancellable operatlng leases as follows., 2022 2021 Not later than 1 year Later than 1 year and not later than S yearn 7,502 1,944 12,584 9,446 9,446 22,030 The totBI18a88 payment6 reco9nlsed as an oxpense were £12,58412021- £12,641). 13. STATEMENT OF RESERVE8 STATEMENT OF ResERVE8- CURRENT YEAR Balance at 1 8•ptsmber 2021 8alaTh at 31 AuguBI 2022 InGom• Exp•ndltur• Unr•strlded R•8•rv•i General R88anM8 1.876,641 818.086 {1.111,822) 1,382.905 STATEMENT OF RESERVES - PRIOR YEAR As r••tsl•d BJ1•rt at Balance at 31 August 2021 8•pt•mb•r A• rnstated 2020 Income Expendltur• Unrestrlctod R•8•r¥•8 General Re¥erve$ 1.813.570 937.576 {1,074.5051 1.676,641 Page 20
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Llmlted by Gu•ranl•e) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET AS8ET8 BETWEEN FUNDS - CURRENT YEAR 2022 Tanolble flxed 8888ts Current a88et8 Creditors due wlthin one year 1,062,980 981,209 (661.2841 1,382.905 15. ANALY818 OF NET ASSET8 BETWEEN FUNDS . PRIOR YEAR 2021 Tanglble flxed 888ets Current assets Cradilorn due wlthin ona year 1,073.168 1,246.825 1643,3521 1.676,641 RECONCILIATION OF NEf MOVEMENT IN FUND8 TO NeT CASH FLOW FROM OPERATING 16. ACTIVITIES 2022 2021 Net expendltur8 for the year (98 per Statom8nt of Finanaal ACtItIes) {293.736) (136.929) AdJu8tm•nts for. D8proclation charges Bank Interest recervable L0$5 on the sale of fixed assets Decreaselllncr8asel in debtors In¢reasel{deLYease) in credit 46,642 <109> 43.405 (2771 747 110,186 {227,7341 13,3291 17,935 N•t ¢uh u•ed In op•rntlng •ctrviti 1232,597) (210,602) Page 21
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A Company Lirnitsd by Guarnnte•) NOTES TO THE FINANCIAL STATEMENT8 FOR THE YEAR ENDED 31 AUGUST 2022 17. ANALYSIS OF CASH AND CASH EQUIVALENTS 2022 2021 Cash and cash equlvalonts 877,514 946,456 Total ¢a•h and ca•h •qufvahnts 677,514 946,456 18. ANALYSIS OF CHANGES IN NET DEBT 8•ptofflb•r At31 2021 C••h flows August 2022 Ca8h al bank and In hand 946,456 1288.9421 677,514 946,458 (268,942) 677,514 19. RELATED PARTY TRANSACTIONS A8 at 31 August 2022. an amount of £13,48712021- £20.164) w88 due lo ECBM Company Llmlted By Guarantee, a Gompany whlch ha8 common dlrectors. The amount 18 Intere¥t free, unsecured and repayable on demand. Thare were no other relaled paty transacUon8 noted during the year. 20. OMISSION OF STATEMENT OF CHANGES IN RESERVES Given that the only movement **l¢h would be showi on tho Ststement of Chanp8 In Re8erve8 Is the total ¢omprehenslve IDeficitllSurplu5 ghown in th8 Statement of Comprehen81ve Income. th18 pdmary financial statament hes been omitted. Page 22