Registered number: 2198970 Charlty number: 1042523 EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2024 LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB
EUROPEAN COLLEGE OF BUSINESS AND MANAGEME[ {A company limited by Guarantee CONTENTS Page ReferenGc and Administrative Details of the Charlty. Its Tru8tee8 and Adviaera Trustees. Report Independent Auditors. Report on the Financlal Statemenls ststement of Financial Activities 10 Balance Sheet 11 statement of Cash Flows 12 Notes to the Financial Statements 13-24
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024 Trustees Dr U Hoppe l Rgdomann Dr E Thome Company registered number 2198970 Charity registered number 1042523 Registered office 69-71 Great Easiem Street London EC24 3HU Principal Operating Officer R Bills {Resigned on 15th October 2024) C Heming (Appointed 15th October 2024) Independent auditors Lubblxk Fine LLP Chartered Accountants Paternostef House 65 St Paul's CNurcnyar(I London EC4M 8AB Bankers Bardays Bank plc PO Box No 4578 155 Brompton Road London SW3 1XD Commeobank 40300 Dusseldorf Germany Page 1
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees present their annual report, which indudes the direGtorfs report. together with the audited financial slatem@.nts nf thp. e.h2rify for the year from 1 September 2023 to 31 August 2024. The Annual Report setves the purposes of both a Trustees. report and a ¢Jirectors' retKrt under company law. The Truslees confirm that the Annual Report and financial statements of the Charity comply wth the current stalutory requirements, the requirements of the Charitys goveming document and the provisions of the Statement of Recommended Practice (SORP) applicable to charitses preparing their accounts in accordan wÉth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Aci 26 (Strategic Report and D1CtOrS, 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 Activitles The aims and objectives for which the Chanty is estsblished remain unchanged, are the adVanrnent of education. especially in business studies. and training for employment This increases employability and skills in a future environment where such skills wi51 be at a premium. The Charity, when pursuing its objective5, also aims to support individuals who. out of lack of financial means or other reasons. potentially might not be able to benefit from the educational activib'es provided. The strategies ft)r achieving Ihe college's aims and objectives are to develop programmes of education and vocational training and deliver them in a way that enables them to participate at the same time as gaining experience at work or in further study elsewhere. Through its connections Wth employers such as CommerLbank. Bank of New York and Newton Asset Management. the Charity operates the Higher Educatson Vocational Traineeship scheme. For the year in question, the number of young people recruited on to this programme was 26 students in years one and of the programme (again higher than in Ihe previou5 year). 7 conb'nued onto their top-up Bachelor. For the coming academic year, there will be fewer recruits to the programme and therefore fewer on programme overa51 (16 students) but almost a 100% increase in those going on to the BA Top-up phase (13 students). This continues the fecord of healthy numbers on the programme in rent years, and the scheme rernains in a stsble condition. This programme opens up the possibility of a career in the financial serViS sector to local people who otherwise would not nesSarilY have considered such an Option (and increasingly do not have the financial means to embark on a higher education course)- It also provides a strong boost to diversity in background of rectuitment at the College. Local people. and ethnically diverse staff, are evidently under-represented in the finanual services industry in the City of London atKI this activity aims to address this imbalance. The Charity also provides subsidised education for students vtho tske part in short courses which enhance their understanding of cross-cultural issues. which is of growing Importan for Ihe country as we seek to display an ouiward facing image to Ihe world, providing young people wth the skills to compete globally. The Charity continues to offer this opportunity through our official branth in Dublin. There a viable viable numbers for these courses and we are hoping for an inuease in recruiiment in the coming academic and financial year. In setting the objectives and planning the adlvrties of the Charity, the Trustees have given careful consideration to the Charity Commission's general guidan on public benefit. Page 2
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT {A company limited by Guarantee) TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Performance Demand for the Charitys programmes {HNDICMUAMUBachelrx programmes. DSMIMBA programmes and PDPS (Professional Developmenl Programmesl) has stabilised, though numbers of new students was reduced in comparison lo the previous year_ Despite this. due to the revaluation of the propety owned by the college.which has been reclassified as an investment property due to its pending sale, a Surplus was achieved during the year. There have been higher (sts due to inflakn.on and extemal rent. and this is Still reflected in the financial figures. However. the College still remains in a solvent and viable positr.on_ The College is in the final stages of completin9 the Sale of its London premises in order to release capital.. for the future viability and indeed expansion of the services provided. The Charity continues to benefft from a strong level of reserve5 buiit up in previous years. and noiwlhstanding the pressures of the pandemic and Brexit, these extemal shocks have been able to be managed due to prudent financial management_ The Charity will gain a considerable boost to its In(rne once the premises are sold, and will be in a very good position to improve and recover its finanaal posib"on. Financial Review The Charity recorded a surplus of £2.483,205 in the finanaal year ending 31 August 2024 {2023 - Deficit of £205,836). The Charity continues to be pmdenlly managed. Total funds held by the Charity as of 31 August 2024 are £3.660.274 (2023 - £1,177,069). The charity does not hold any restricted funds. In the pre-pandemic era. the Charitls reseives policy vras to build up reserves equivalent to the value {historic costs) of its premises plus half the annual tumover. This has been an importarrt policy, as it has enabled Ihe Charity to maintain its operations dunng the fjnancial difficulkn.es caused by the pandemic. Currently. and going forward. the general aim of the Charity will be to rebuild its reserves in the medium temi when it is in a position to do so. notably through the sale of the premises ¢)wned as freehold in the coming financial year, and the leaseback of suitable space in order to continue ils OFerations. Plans for Future Periods The outlook for 2024125 is one where the losses of the last finanual year should be stabilised and we are aiming for an irllproved position. though predicting an operabng deficit The overall aim remains to ensure that the services of the Charity conb'nue to be relevant and setve the needs of its benefiaries, and we have no doubt that we can successfully do so. The College, as noted above has disposing of its property in Great Eastem Street in order to leaseback and eventually move to smaller premises and free up capital. This is to ensure that the College remains a going concem for the foreseeable fLrture. Page 3
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 structure, Governance and Management The European College of Business and Management incorwrated as a company limited by guarantee on 26 November 1987 and registered as a charity on 1 December 1994. 11 is govemed by tts memorandurn and articles of ass(Kiation. There is a strong bond belween the charity and the German British Chamber of Industry and Commer. The Chamber is one of the main supporters of the Charity and has climmon board members. The appointment of trustees is regulated by the Charitvs Memorandum and Arbcles of Association. The power of appoinlment of new trustees lies wth the members and existing Board of Trustee5. New trustees are recruited based on their attributes and the requirements of the Charbty, and are familiarised wth the work that the Charity undertakes through meetings and discussions with the Board of Trustees and other employees of the Chartty. The Board of Tnjstees meets regulady during the year but delegates the day-to-day running and management of the Charity to the Principal Operating Officer (who is the Director and CEO), who meets with the Chairman of the Board every month. Arrangernents for setting pay and remuneration of key management perscnnel a decided pon by the Chairman and the Principal Operating Officer, and general policy is lo increase staff remuneration to cornpensate for inflation plus a small incentive increase across the board. The Board of Trustees gUlarlY conducts a full review of the major risks to which the Charity is exposed and has established appropriate systems to mits.gate these risks. These risks and the related 5y5tems 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 purposes of company lawl are responsible for preparing the Trustees. Report and the financial statements in accofdance wtth applicable law and United Kingdom Acwunting Standards {United lfjngdom Generally Apted Accounting Practice). Company law requires the Trustees to prepare financtal statements for each financial year. Under company law the Trustees must not approve the finanaal statements unless they are sat15fied that they give a true and fair view of the state of affairs of the Charity and of rts incoming resources and application of resources, induding its income and expenditure, for that period. In preparing these financsal statements. the Trustees are required to. select suitable accounting policies and then apply them consistenlly. observe the methods and principles of the Chantse5 SORP {FRS 1021: make judgments an(i accounting estimales that are reasonable and prudent: state whether applicable UK Accounkn'ng Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financtal statements- prepare the finanaal statements on the going concern basis unless il is inappropriate to presume that the Charity will continue in business. The Truslees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disdose wth asonable atturacy at any time the financial positson of the Charity 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 Charity and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 4
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarante•) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Disclosu of Infonnation to Auditors Each of the persons who are Trustccs at th¢ tim¢ when this Trustees, Report IS approved h83 Gonfirmed that.. so far as that Trustee is aware. there is no relevant audit infonnabon of which the charitys auditors are unawarè, and Ilidt Trustee has taken all the steps thai ought to have Deen taKen as a Trustee in order to be aware of any relevant audit infomation and to establish that the chariWs auditors are awarp. nf thAt infnrmAtion In preparing this report, the Trustees have taken advanta9¢ of the small companies. exeiiiplioii p1uv1tjd by seaion 41 SA ot Ihe Lompanies Act 2006. App rd of the members of the board of Trustees and signed on their behalf by: Dr U Hoppe Trustee Date.. 6 L(_ Iolr Page 5
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT FOR THE YEAR ENDED 31 AUGUST 2024 Opinion We have au¢Jited Ihe finanaal statements of European College of Business and Management (the 'charity') for the year ended 31 August 2024 which comprlse the Statemenl of Financial Activities, the Balan Sheet, the statement of Cash Flows and the related notes, including a 5umrnary of significant accounb'ng policies. The financial reporting frarnework Ihat has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Finanual Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Apted Accounting Practi} In our opinion the finanaal statement5= give a true and fair view of the state of the charitable companls affairs as at 31 August 2024 and of its incoming resources and application of resour. induding tts in(me and expenditure for the year then have been properfy prepared in aCrdarKe with Untied lfjngdom Generally Accepted Accounting Practi., and have been prepared in accordan with the requirements of the C(Nnpanies Acl 2006. Basls for opinion We conducted our audit in accordan with Inlemats'onal Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for Ihe audit of the financial statements section of our pOrl We are independent of Ihe charitable company in accordance wth the ethical requirements that are relevant to our audit of the financsal statements in the United Kingdom, induding the Finallcial Reporting Council's Ethical Standard. and we have fulfilled OLtr other ethical responsibilities in accordan wth Ihese requirements. We believe that the audit evidence we have obtained is suffiaent and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financtal statements, we have conduded 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 condib.ons that, individually or collecb"vely, may cast significant doubt on the tharitable companls ability to continue as a going cOnM for a penod of at least Iwelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibil.eS of Ihe Trustees vlth respect to going Conr are described in the relevant sections of this report. Page 6
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA company limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEfiiBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Other Infom?atlon The other information comprises the information induded in the Annual Report other than the financial statements and our Auditors, Report thereon_ The Trustees are responsible for the other information contained within Ihe Annual Report. Our opinion on the finanual statements does not Ver the other information and, except to the extent othewse expliciuy stated in our report, we do not express any form of assuran conclusion thereon. Our responsibility is to read Ihe other information and, in doing so. consider whether the olher information is materially inconsistent wth the financial statements or our knowfedge obtained in the course of the audit, or otherwise appears to be materially rnisstated. If we identify such material inconsistenaes or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the finanaal statements themselves. If, based on the work we have perfomed. we condude that there is a material misstatement of this other information. we are required to report that fad. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on Ihe work undertaken in the course of the audiL the informab'on given in the Trustees, Report for the finanu21 year for which IhÈ finanr.i31 statp.mont£ Arp. prepared is consistent with the finanaal statements. the Trustees. Report has been prepared in accordan with app1[ble legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in Ihe course of the audi{ we have not identified material misstatements in the Tru5tees' Report. We have nothing to report in respect ol the fdlobmng matters in relation to which Companies Act 201b requires us to report to you if, in our opinion: adequate accounbng records have not been kept. or retums adequate for our audit have not been reiVed from branches not visited by us-, or the finanaal statements are not in agreement with the accounting record5 and retums,. or certain disclosures of Tru5tees' remuneration specified by law are not made.. or we have not reiVed all the information and explanations we require for our audit- or the Trustees were not entiued to prepare the financial statements in accordan with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Page 7
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMEP {A company limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Respon51bllltle5 Df trustee5 As explained more fully in the Trustees. ResponSi.11.eS Statement, 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 intemal control as the Trustees detemiine is neSSary to enable the preparab'on of financial stalement5 that are free frorn material misstatement. whether due to fraud or error. In preparing the finanoal statements, the Trustees are responsible for assessing the charitable companVs ability to continue as a going concem. dIlOSIng. as appli12ble. matters related to going concern and using the going concern basis of accounting unless the Trustses either intend to liquidate the charitable company or to cease operations. or have no realistic alternative bul lo do so. Auditors, responsibilities for the audit of the financial statements Our objective5 are to obtain reasonable assurnnce aboui whether Ihe financial statements as a whole are free from material misstaternent, whether due to fraud or error. and lo issue an Auditors, Report that includes our opinion. Reasonable assuran is a high level of assuran. bLrt is not a guarantee Ihat an audrt conducted in accordance with ISAS (UK) wll always detect a material misstatement when it exists. Misstatements can arise from frau¢J or error anu are considerea mater1ai if, Indlvtaually or In the aggregate, Ihey Gould reasonatsly Oe expected to influence the economic decisions of users tsken on the basis of these finanaal statements. Irregularities, induding fraud, are InStanS of non-ts)mpliance with laws and regulations. We design procedures in line with our responsibilits"es. outlined above, to detect material misststements in respect of irregularttres, including fraud. In identifying and assessing risks of malerial misslatement in respect of irregularities. induding fraud and non- compliance with laws and regulations. we cOndered the following" Enquiries of management, induding obtaining and revil1ng supporbng documentation. concerning the charity's policies and ProdureS relatFng to= identifying. evaluating and complying wth laws and regulations and whether they were aware of any instan$ of non-complian. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud- and the intemal controls established to mikn.gate risks retated to fraud or non-compliance of laws and gulations., and Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potenlial indicators of fraud. The engagement team indudes staff who have extensive experien of working with charities in similar sectors and this experience was relevant to the discussion about where fraud risks might anse. We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had dired effect on the detemiination of material amounts and disclosures in the financial statements. The key laws and regulalions we considered in this context induded FRS 102. the Companies Act. the UK Charib'es Act. Charities SORP 2019 and the Higher Edutstion SORP 2019. In addition, we considered provisit)ns of other laws and regulatsons that do not have a direct effect on the rinancial statements but Complian with which may be fundamenlal to the charitys ability to operate or to avoid a material penalty. Page 8
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company Ilmited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 As a result of these pmrp.diirA.s. we crinsidered the partiajlar areas that were sugceptible to misstaternont due to irregularities. including fraud were in respect of revenue recognition and management override. OLtr procedures to respond to risks identsfied induded the followng= Reviewing Ihe financial stalement disdosures and testing to supporting documentation to assess complian th provisions of relevant laws and regulations described as hawng a direct effect on the financial statements., Enquiring of management GonMing actual and potentr.al lib'gation and claims- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud- Reading minutes of meetings of those charged [h governan. Performing proof in total lo fomi an expectab.on of income and comparing to actual income and vouching a sample of students from intake lists to the general ledger to venfy completeness of income.. In addressing the risk of fraud through management override of controls.. assessing whether the judgements made in making accounting estimates are indicative of a potenb.al bias.- and evaluating the rationale of any significant transactions that are unusua or outside the nomial course of the charity's operations. Because of the inherent limitations of an audit. there is a nsk Ihat we wtll not detect all irregularitie5, induding those leading to a material misststement in the financtal statement5 or non-complian wth regulabon. This risk increases the rn0 that compliancc with 8 law or regulation 13 removed from the even15 and Iransaclioiis reflected in the financial statements, as we will be less likely to become aware of instances of non-complian. The risk is also greater regarding irregularities ocojrring due to fraud rather than error. as fraud involves intentional COnalment, forgery, collusion. omission or m¢spreSenta"0n. A further descrtption of our responsibilities for the audit of the ffinancial statements 15 located on the Financial Reporting Counal's website at". www.trc.o .uklauditorsres Auditors, Report. nsibilities. This description forms part of our Use of OUT report This report is made solely to the charitable companys members. as a body. in accordan wth Chapter 3 of Part 76 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable companls members those matters we are required to state to them in an Auditors. Report and for no other purpose. To the tullest extent pennitted by law. Y do not accept or assume responsibility to anyone other than the charitable company and its members. as a body, for our audit work, for this feport. or for the opinions we have formed. Hazra Patel (Senior Ststutory Auditor) for and on behalf of Lubbock Flne LLP Chartered Acojuntants Paternoster House 85 St Paul's Churchyard London EC4M 8AB 11 March 2025 Date. Page 9
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT IA Company Limited by Guarantee) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 AUGUST 2024 Total funds 2024 Total funds 2023 Note INCOME Tuition fees and educalion contracts 893,531 1.295.442 Investment Income 75,563 1,784 Donations and legaaes 2,173 TOTAL INCOME 971.287 1.297,226 EXPENOITURE Charitable activib'es= Staff costs 580.285 545,576 Other operab.ng expenses 679,304 897.382 Depreciation 13.725 46,335 Interest and other finance costs 9.655 11.991 Loss on disposal of fixed assets 1.579 1,778 TOTAL EXPENDITURE 1.284.548 1,503,062 NET MOVEMENT IN FUNDS BEFORE OTHER RECOGNISED GAINSI{LOSSES): (313,281) {205,836) OTHER RECOGNISED GAINSILOSSES Gains on revaluation of investment propety 2.796,486 SURPLUSI{DEFICIT) FOR THE YEAR 2.483,205 1205,8361 RECONCILIATION OF RESERVES: Total reserves brought forward 1.177,C69 1.382,905 Net movement in reserves 2,483,205 (205,836) TOTAL RESERVES CARRIED FORWARD 3,660,274 1,177.069 The Statement of Comprehensive Income includes all gains and losses recognised in the year. All income and expenditure in 2023 and 2024 related to unrestricted reserves. All items of income and expenditure related to continuing activitses. The notes on pages 13 to 24 form part of these financial statements. Page 10
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT {A company limited by Guaranto9) REGISTERED NUMBER: 2198970 BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note NON-CURRENT ASSETS Tangible fixed assets Investment propety 12.093 3.800,000 1 n?0.355 10 3,812,093 1,020,355 CURRENT ASSETS Trade and other reivableS Cash and $h equivalents 304.775 244.869 321,564 561,301 549.644 882.865 Creditors.. amounts falling due wthin ore year 12 (701.463} (726, 151} NET CURRENT LIABILITIES IASSETS TOTAL ASSETS LESS CURRENT LIABILITIES (151.8191 156,714 3.660,274 1,177,069 NET ASSETS 3,660,274 1,177,CE9 CHARITY RESERVES Unrestricted reserves 16 3.660.274 1.177,069 TOTAL RESERVES 3.660.274 1,177,{9 The financial statements have been prepared in accordan wryth the provisions applicable to entities subject to the small companies regime. The finanaal statements wefe approved and authorised for issue Trustees and Signed on their behalf by.. oppe Trustee l Redemann Trustee Date_. r£. 29 2J- The notes on pages 13 to 2 form part of these finanaal statements. Page11
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Note Cash flows from operating activities Net cash (used in)Iproduced by operating activits'es 18 1381,439) 1112,509) Cash flows from investing activities Investment income reivable Purchase of tangible fixed assets 75,563 (10,556) 1,784 15,488) Net cash provided byl(used inl investing activities 65,007 (3,704) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year (316,432) {116,2131 677,514 561,301 Cash and cash equivalents at the end of the year 19 244.869 561,301 The notes on pages 13 10 24 fonn part of these ffinancial statements Page 12
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have teen prepared in ac£ordance Vth the Charities SORP {FRS 1021- Accounting and Reporting by Chanties- Statement of Recommended Practice applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) {effecknve 1 JanLtary 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice Accounting for Further and Higher Education (effective 1 January 20191 (FEIHE SORP 2019) and the Companies Ad 2006. Where dIfferenS arise between the Charities SORP (FRS 102) and the FEIHE SORP 2019 the FEIHE SORP tskes preceden. European College of Business and Management meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inilially recognised at historical cost or transaction value unless otherwise stated in the relevant aLuunttng policy. 1.2 Company status The Charity is a LmpanY limited by guarantee. The members of the charitable company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the g1fft2fAntp.e is limited to £10 mèmber of the Charity. The registered Offi address and principal pla of business is 69-71 Great Eastern Street, London, EC2A 3HU. 1.3 Reserves 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. Investment income, gains and losses are dlctated to the appropriate fund. 1.4 Income All income is recognised once the Charity has entitlement to the income, it is probable that the income will be reiVed and the amount of income receivable can be measured reliably. Course fees and related income, net of direct $ts, are CogniSed in the period in which the course takes place. 1.5 Interest receivable Interest on funds held on deposit is induded when re[Vable and the amount can be measured reliably by the Charity.. this is normally upon notification of Ihe interest paid or payable by the institution wth whom the funds are deposited. 1.6 Expenditure Expenditure is recognised once there is a legal or construcbve obligation lo transfer enoMIC benefit to a third paty, it is probable that a transfer of economic benefits wll be required in settlement and the amount of the obligab'on can be measufed reliably. Page 13
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES {CONTINUED) 1.6 Expenditure {continued) Charitable activity costs incuffed on the Charitys educalional operations, including support costs and costs relating to the governanc£ of the Charity apportioned to charitable activitses. All expenditure is inclusive of irrecoverable VAT. Other operating expenses represent those costs incurred directly in support of expenditure on the objects of the Charity and indude project management and costs incurred in connection with administration of the Charity and cnmpIian wllh constitutional and statutory requirements. 1.7 Tangible fixed assets and depreciation Tangible fixed assets are carried at cost. net of depreciation and any provision for impaimient. Depreaation is not charged on freehold larvj. Depreciation is provided at rates calculated to write off the cost of fixe(i assets. less their eskn"mated residual value. over their expected useful lives on the following basis.. Depreaation is provided on the folEowFng bases". Freehold propety Equipment Propety improvemerrts 2% straight line 2/30.10 reducing balance120Wo straight line 5% straight line 1.8 Investment property Investment propety is carried at fair value detemiined annually by the trustees and derived from Ihe current open market, adjusted if necessary f( any differen in the nature, location or condition of the specific asseL No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income. 1.9 Trade and other recelvables Trade and other debtors a recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.10 Cash and cash equivalents Cash and cash equivalents includes cash and short-term highly liquid inveslments with a short malufity of three months or less from the date of acqui51tion or opening of the deposit or similar account. 1.11 Liabilities and provisTons Liabililies are recognised when the is an oblatIon at the Balants Sheet date as a result of a past event. it is probable that a transfer of economic benefit wll be required in setuement, and the amount of the settlement can be estimated reliably. Liabilities are COgnIsed at the amount that the Charity antiapates it wll pay to settle the debl or the amount it has received as adVand payments for the goods or services it must provide. Page 14
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMEP (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES {CONTINUED 1.12 Financial instruments The Chartty only has financi81 assets and finanaal liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsequently measured at their settlement value with the exception of bank loans which are sub5eqLtently measured at amorbsed cost u&ng the effective interest method. 1.13 Pensions The Charity operates a defined contrtbutson pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year. 1.14 Foreign CUrnCle$ Monetary assets and liabilities denominated in foretgn currenaes are translated into sterling at rates of exchange ruling al the balan sh1 date. Transactions in foreign currencies are translated into sterfing at the rale ruling on the date of the transaction. Exchange gains and losses are CogniSed in the Statement of Comprehensive Income. ANALYSIS OF TUITION FEES AND EDUCATION CONTRACTS 2024 2023 Course fees and related income Discounts allowed Other fees Other Income 884,091 (332) 1,155 8.617 1.238,441 12.0841 1,110 57,975 893,531 1.295,442 INVESTMENT INCOME 2024 2023 Bank interest receivable Rental inwme 3.741 71,822 1.784 75.563 1,784 Page 15
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMEpirs FOR THE YEAR ENDED 31 AUGUST 2024 INCOME FROM DONATIONS AND LEGACIES 2024 2023 Gifts in kind 2,173 STAFF COSTS 2024 2023 Wages and salaries Social security costs Contribution to defined contribution pension sthemes 513.176 51.163 15,946 481,449 49,232 14,895 580,285 545,576 The average number of persons employed by the Charity during the year was as follows.. 2024 No. 2023 No. Number of Lecturers Number of Administrative slaff 14 13 The number of employees whose emptoyee beneffts (exduding employer pension u)stsl exeded £60.000 was. 2024 2023 No. In the band £60,001- £70.aoo In the band £90,001 - £100,000 In ihe band £300,001- £110.000 None of the Trustees received any remuneratson. beneffts in kind or reimbursement of expenses during the year (2023 - £nill. Total remuneration paid to key management personnel VAS £120.35512023 - £113,919). Page 16
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 OTHER OPERATING EXPENSES 2024 2023 Advertising Computer costs Accommodation Exiernal rent, rates and water Cleaning Repairs and maintenan Insuran General expenses Travel Auditors remuneration Consultancy Telephone Exam fees and assoaated costs P¥inting, poslage and stationery Light and heat Bad debts staff training Legal and professional fees Accountan 27,752 25.433 59.371 135,549 25.337 20,819 21,653 6,268 46.920 15,600 153,447 14,889 55.926 18,130 11,923 10.633 2,813 12,288 14,553 57,779 21,612 231.999 140,840 24,554 27,453 21,462 6,613 65,528 10.500 170,084 13,215 50,370 8,060 9.933 1,506 24.484 11,390 679,3iJ4 897.382 INTEREST AND OTHER FINANCE COSTS 2024 2023 Bank charges Foreign currency loss 4,907 4.748 4,435 7,556 9.655 11,991 Page 17
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 NET INCOMING RESOURCESI{RESOURCES EXPENDED) 2024 2023 Auditors. remuneration - Audit 12,600 600 15,946 13,725 4,748 10,500 480 14,895 46,335 7,556 Auditors, remuneration - Other staff pension contributions Depreciation Exchange loss Page 18
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company Ilmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 TANGIBLE FIXED ASSETS Freehold Property property Equipment Improvements Total Cost or valuation At 1 September 2023 Additions Disposals Transfer to investment property 1.302.872 66,813 3,327 (1.974) (7.660} 455,208 7.229 1,824,893 10,556 (1,974) 1462,437) {1.772,9691 (1,302.872) At 31 August 2024 60,506 60,508 Depreciation At 1 September 2023 Charge lor the year On diBpostsl Transfer to investment propety 462,836 5,014 53.451 3.017 288,251 5,694 804,538 13,725 (3951 1769.4551 (467,850) (7.660) (293.9451 At 31 August 2024 48.413 48,413 Net book value At 31 August 2024 12,093 12.093 At 31 August 2023 840.036 13,362 166,957 1,020,355 During the year. the Trustees made the decision to sell the freehold property at 69-71 Great Eastem Street, London. The net book value of the freehold propety of £835.022 and propety improvement5 of £168.492, tolalling £1,003,514 have therefore been redassified to Investment property and revalued to it's open market value of £3.8m at the year end. The sale of the propety was completed on 18 November 2024 for consideration of £3.8m. Page 19
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company Ilmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. INVESTMENT PROPERTY Investment property Valuation Transfer from tangible fixed assets Surplus on revaluation 1,003,514 2.796.486 Al 31 August 2024 3,800,000 Ouring the year, the Tnjstees made the decision to sell the freehold propety at 69-71 Great Eastem Street. London. The net book value of the freehold propety of £835.022 and propety improvetnents of £168.492. totalling £1.003.514 have therefore been fedassifted to Investment propety and revalued to irs open market value of £3.8m al the year end. The sale of the propety was completed on 18 November 2024 for consideration of £3.8m. The investment propety was valued at 31 August 2024 by the Trustees on an open market basis. 11. TRADE AND OTHER RECEIVABLES 2024 2023 Trade re1Vable5 Other debtors Prepayments and accrued income 221,762 5,786 77,227 282,632 8.622 30,310 304.775 321,564 Page 20
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT {A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 12. CREDITORS: Amounts falling due Mthin one year 2024 2023 Trade creditors Other taxation and social security Other creditors Accruals and deferred income 33,651 17,096 20.702 630.014 157.645 14,817 25,498 528,191 701,463 726,151 2024 2023 Deferred income at 1 September 2023 Resources defeTred during the year Amounts released from prevUS periods 511.878 474.978 1511.8781 592,993 511.878 (592.993} 474.978 511,878 Deferred income relates to tuilion fee IncMe received in advan for courses due to commence after 31 August 2024. Also induded in deferred income is rental income reiVed in advan of £nil (2023 £24.2601. 13. PENSION COMMITMENTS The Charty operates a defined contribution pension scheme in respect of its employees. The assets of the scheme are held separately from those of the Charity in a Separately administered fund. The pension costs per the Statement of Comprehensive Income represent contrtbutions due from the company and amounted 10 £15.946 (2023- £14.895). 14. OPERATING LEASE COMMITMENTS At 31 August 2024 the Charity had commitments to make future minimum lease payments under nor cancellable operating leases as follows-. 2024 2023 Nol later than 1 year The total lease payments recognised as an expense were £14,825 {2023- £7,502). Page 21
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. OPERATING LEASE - LESSOR As at 31 August 2024 the ti)tsl of the Charitys future minimum lease reiptS under non-CanlIab]e operating leases ds.. 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years 2,199 46.228 26.083 2.199 72.311 During the year, Ihe Charity received rent from leasing out three floors of its propety. However, at the year end only one floor ma[ned with a lease obligations in pla. 16. STATEMENT OF RESERVES STATEMENT OF RE3eRVES - CURRENT YEAR Balance at I September 2023 Balance at Gainsl 31 August IL05ses) 2024 Income Expenditure Unrestricted Reserves General Reserves 1.177.C69 971.267 {1,284,548} 2.796.486 3,660,274 STATEMENT OF RESERVES - PRIOR YEAR Balance at 1 September 2022 Balance at 31 August 2023 Income Expenditure Unrestrlcted Reserves General Reserves 1,382.905 1,297.226 11.503,062) 1,177,IX9 Page 22
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS- CURRENT PERIOD Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Investment property Current assets Creditors due within one year 12,093 12,093 3.800,000 3,800,000 549.644 549,644 (701,4631 (701,4631 Total 3,660,274 3.660,274 ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR PERIOD Unrestrlcted funds 2023 Total funds 2023 Tangible fixed asset5 Cuirent assets Creditors due within one year 1,020.355 882.865 {726,151) 1.020.355 882.865 {726, 151) Total 1.177,069 1,177,£9 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 18. ACTIVITIES 2024 2023 Net expenditure for the period {as per Statement of Financial Activities) (313,2811 (205,836) Adjustments for: Depreciation charges Investment income re1vable Loss on the sale of fixed assets Decreasel(increase) in debtors (Decreasellincrease in creditors 13,725 {75.563) 1,579 16.790 124.689) 46,335 {1,784) 1.779 {17,8701 64.867 Net cash used in operatlng activities 1381,439) 1112,509) Page 23
EUROPEAN COLLEGE OF BUSINESS AND MANAGEMENT (A company limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 19. ANALYSIS OF CASH AND CASH EQUIVALENTS 2024 2023 Cash and cash equivalents 244,869 561,301 Total cash and cash equivalents 244,869 561,301 20. ANALYSIS OF CHANGES IN NET DEBT At1 September At31 2023 Cash flows August 2024 Cash at bank and in hand 561,301 {316,432) 244,869 561.301 {316,432) 244,869 21. RELATED PARTY TRANSACTIONS As at 31 August 2024. an amount of £11.765 (21Y23 - £13.7371 was due to ECBM Company Limited By Guarantee, a company which has common directors. The amounl is interest free, unsecured and repayable on demand. There were no other related party transactions noled during Ihe year. 22. OMISSION OF STATEMENT OF CHANGES IN RESERVES Given that the only movement which would be shown on the Statement of Changes in Reserves is the total comprehensive Deficit shown in the Statement of Comprehensive Income, this primary financial statement has been omitted. 23. POST BALANCE SHEET EVENTS On the 18 November 2024 the investment pyopety held by the charity was sold for £3.800,000. The char(ty will o)ntinue to operate from the property a Sale and leasebad( arrangemenl. Page 24