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← The Institute Of Commercial Management Limited

2024-06-30-accounts

Company registration number: 3031779 Charity registration number: 1045370

The Institute of Commercial Management

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 30 June 2024

Harney & Co Limited Registered Auditors and Chartered Certified Accountants 21 Market Place Blandford Forum Dorset DT11 7AF

The Institute of Commercial Management

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 7
Independent Auditors' Report 8 to 11
Consolidated Statement of Financial Activities 12
Consolidated Balance Sheet 13
Balance Sheet 14
Consolidated Statement of Cash Flows 15
Notes to the Financial Statements 16 to 28
The Institute of Commercial Management
Reference and Administrative Details
Trustees J Caithness
C George
Secretary A F C Somerville-Ford
Key staff A F C Somerville-Ford, CEO
T Barlow
Charity Registration Number 1045370
Company Registration Number 3031779
Registered Office ICM House
Yeoman Road
Ringwood
Hampshire
BH24 3FA
Auditor Harney & Co Limited
Registered Auditors and Chartered Certified Accountants
21 Market Place
Blandford Forum
Dorset
DT11 7AF
Bankers National Westminster Bank
Ground Floor
Link House
Poole
BH15 1LD

Page 1

The Institute of Commercial Management

Trustees' Report

The trustees, who are directors for the purposes of company law, present their annual Report together with the Consolidated financial statements and auditors' report of the charitable company for the year ended 30 June 2024. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Charitable company and of the group.

Objectives and activities

Objects and aims

The Institute of Commercial Management (ICM) is an Awarding Organisation and Examining Board. ICM’s global services include the design, development, and award of qualifications.

ICM is recognised by Ofqual, the Regulator for Qualifications in England. Recognition number RN6016.

ICM offers affordable and fit for purpose qualifications to meet the demand of employers internationally in the following areas: Accounting and Finance; Business and Management; Commercial and Project Management; Computer Science and Cyber Security; Cosmetology; Entrepreneurship and Enterprise; Event Management; Film and TV Production; Health and Safety; Hospitality Management; Human Resource Management; Journalism; Management Studies; Maritime; Marketing and Sales; Office Management; Purchasing and Supply Management; STEM; Tourism.

Up to 278 approved teaching centres across 35 countries deliver tuition in 260 qualifications most of which are examined 4 times a year. The Charity's Trustees are from both business and academic backgrounds and the team of Examiners are sourced from CIEA. ICM has a strong reputation internationally and is known for offering affordable qualifications which prepare learners for the workplace.

As set out in the Memorandum and Articles of Association, the objectives and activities of ICM are: “To advance the education of the public by the preparation, validation, accreditation, conduct and administration of tests, examinations and other systems of assessing and recording academic or other achievement.” (As detailed in the ICM Governance Manual).

The main activities undertaken in relation to these purposes are the design, delivery and award of fit for purpose qualifications to meet the demand of employers and learners globally. The process incorporates the preparation of question papers and mark schemes, the assessment of learner’s skills and knowledge and issuance of awards to acknowledge achievement.

Developments in 2023 and 2024 included the launch of a new suite of Business short courses, a Level 2 Competency Based Qualifications (CBQ) in Cosmetology and 4 new CBQs in Hospitality. Developments underway for a Q4 2024 launch include new CBQs in Teacher Training, Health and Safety, a Level 3 Diploma in Cosmetology and a suite of new Business qualifications for the RQF.

Ongoing plans and objectives are to continue to partner with the Department for Business and Trade who are supporting ICM to expand into new markets including Vietnam, the Caribbean, the Middle East and additional parts of West Africa. The development and launch of new Level 3, 4 and 5 Business qualifications in Q4 2024 are part of ICMs strategy to expand the scope of recognition within the RQF to be offered in England. The planned appointment of further in-country marketing consultants with a background in education will enable ICM to continue with its objectives to expand into new markets.

Page 2

The Institute of Commercial Management

Trustees' Report

Public benefit

The Trustees have given due regard to public benefit when planning the charity’s activities, in accordance with the Charities Commission’s Guidance on Public Benefit. This report sets out our activities, achievements, and performance during the year, which are directly related to the objects and purposes for which the charity exists. The charity achieves its principal objects and purposes through offering affordable and relevant qualifications that meet the demands of its approved teaching centres and learners and the needs of employers. These benefits are directly related to the aims of the charity and are fully compliant with the Charity Commission Principals on Public Benefit.

An initiative instigated in 2017 and completed successfully in September 2019 to achieve recognition status with Ofqual, the regulator for qualifications in England, has further provided public confidence in ICM qualifications, provided the opportunity for centres to offer qualifications eligible for Government funding and enabled ICM to continue to serve the market whilst satisfying its charitable commitments.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

ICM achieves its aim of delivering high quality and affordable qualifications that are accessible to all learners through contracting with approved teaching centres. The approved centres deliver tuition as guided by the qualification specification, register their learners as ICM Student Members and prepare them for the assessments which are administered by ICM. Feedback from learners is positive in the way ICM qualifications provide a currency for them to secure favourable employment or to provide a pathway to further education. The following quotes were provided by ICM approved teaching centres following surveys conducted by ICM.

Positive comments about ICM:

• "Qualifications are diverse, and Learners have an opportunity to choose a qualification of their choice, the qualifications cover many sectors of the economy."

Areas for development:

The introduction of CBQs has addressed the balance between theory and practice and the recently launched qualifications in computer science and the planned launch of Level 1 and 2 qualifications in Digital Skills in Q4 2024 will address the computer literacy request. The planned ICM eAcademy in 2025 will aim to blend traditional learning with online learning and in Kenya and Zimbabwe ICM have reinvested in the community by offering a resource centre in the capital cities for the teaching of staff and learners. In addition, ICM continue to make text books available to learners in Myanmar via the British Council library in Yangon and Mandalay. The Kenyan Government are driving the move to skills based qualifications assessed through competency and ICM are leading this initiative with them.

Page 3

The Institute of Commercial Management

Trustees' Report

ICMs portfolio consists of 35 professional qualifications comprised of 240 units covering the following areas: Accounting and Finance; Business and Management; Commercial and Project Management; Computer Science and Cyber Security; Cosmetology; Entrepreneurship and Entertprise; Event Management; Film and TV Production; Health and Safety; Hospitality Management; Human Resource Management; Journalism; Maritime; Marketing and Sales; Office Management; Purchasing and Supply Management; STEM; Tourism. ICMs fiscal year runs to 30th June and its main souces of income are from Examination fees, and annual Student Membership fees, the charity does not collect donations or conduct fundraising activities.

The most significant develpment is the further inclusion of CBQs to the portfolio of qualifications which assess practical skills in order to close the global skills gap. The CBQs enable ICM to support learners who are assessed with practical skills rather than the traditional examination. The continents ICM operate in are Africa, Asia, North America and Europe. Historically, the African continent has seen the highest trend of ICM students and the Caribbean is a focus for 2025. The development of further CBQs in Q4 2024 include the highly demanded Digital Skills and a suite of new Business diplomas for the RQF to be offered in England. A new fully automated IT system is being developed for launch in 2025 to streamline the interface for ICM Approved Centres.

Key non-financial performance indicators

When assessing the success of ICM for the reporting period, Trustees use the following success criteria: the number of countries offering ICM’s qualifications; the number of approved centres offering ICM’s qualifications; the number of ICM’s qualifications in demand; and the relative pricing of ICM’s products as compared with other UK Boards operating internationally.

For the reporting period ending 30th June 2024, ICM saw a small reduction in the number of approved centres from 296 to 278 and the number of markets increased from 33 to 35 with the addition of Qatar and Switzerland and a strong partnership with the Department for Business and Trade is expected to see ICM expanding into further new markets in 2025 including the Caribbean. The number of qualifications offered increased from 250 to 260 as a result of the new qualifications developed. The pricing of ICM’s qualifications remained the lowest of UK boards operating internationally despite the increase in September 2022. The cost of living crisis has affected student’s financial ability to register for ICM qualifications and this is expected to continue through 2025 but anecdotal information is that teaching centres continue to see students gradually return to the classrooms. ICM’s team of country coordinators provide regular updates on the status of their region in order that ICM trustees and management team can assess each situation and adapt accordingly. The various financial savings and efficiencies made throughout 2024 and the launch of newly developed qualifications lead the Trustees to consider ICM as a going concern for the future.

Financial review

A net surplus for the year ending 30th June 2024 was £16,081 (including a revaluation gain of £25,000 on an investment property) compared to a net deficit of -£25,405 in the previous year.

During the Trustee meetings throughout 2023 and 2024, the Board discussed ICMs financial situation, taking into accunt the ongoing cost of living crisis. Operational efficiencies gained financial savings enabling ICM to continue to fund its operation throughout the year and to project growth in 2025.

The launch of the new CBQs has contributed to income in 2024 and the partnership with the Department for Business and Trade is anticipated to yield new income streams from 2025.

The financial forecast shows a steady recovery with income levels increasing as a result of economies strengthening in Africa as tourism continues to return to post-pandemic levels and with the introduction of new qualifications globally. The financial situation is reviewed at each Trustee meeting in order to adapt ICMs strategy as necessary.

Page 4

The Institute of Commercial Management

Trustees' Report

Policy on reserves

The Charitable group has developed a reserves policy where all funds are unrestricted. At the year-end total unrestricted funds for the group were £797,654 (2023: £781,573, as restated) and for the charity total unrestricted funds were in deficit by £546,913 (2023: £537,994, as restated).

As explained in the sections above the financial forecast shows a steady recovery with income levels expected to increase throughout 2025 and into 2026. The unrestricted fund deficit is therefore considered temporary and is expected to be gradually reduced and removed in future years as income levels stabilise.

The charity's reserve policy considers the following:

  1. the nature of incoming funds.

  2. the Charity's risk management policy and procedure.

  3. future budgets and future projects or spending plans that cannot be met from the income of a single year.

  4. Charities Commission reserves factsheet CC19.

Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered the uncertainty relating to the cost-of-living crisis and the impact on the charity's operations and financials in the short to medium term. In the opinion of the trustees, the charity has sufficient funds to continue to meet its financial commitments and to pay its liabilities as they fall due for the foreseeable future and therefore the financial statements have been prepared on a going concern basis.

The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is expected to be sufficient, together with the level of reserves held and the coronavirus funding received, for the charity to be able to continue as a going concern.

Structure, governance and management

Nature of governing document

ICM was incorporated as a private company limited by guarantee without share capital on 10th March 1995 and its governing document, the Memorandum and Articles of Association, state the nature of ICMs objectives and activities.

ICM governance is set out in the ‘ICM Governance Manual’ which documents the role and duties of the ICM Trustee Board and all other ICM boards, committees and panels. The manual includes the ICM organisational chart displaying the reporting structure up to the Board of Trustees.

Recruitment and appointment of trustees

The Trustees are comprised of people with a background of accounting and education. Senior officers attend Trustee meetings and are from a background of business, education, operations, our overseas country representatives, and a representative member of staff. Recruitment of Trustees is an ongoing activity and is conducted through the ICM website. Applicants follow the ICM recruitment policy which includes interview, consulting references and completion of the conflict of interest declaration. New Trustees receive an induction from the CEO and Chairman in respect of ICMs processes, practices and procedures. Training assigned to them is tracked through the ICM learner management system.

ICM benefits society through its objective of: “To advance the education of the public by the preparation, validation, accreditation, conduct and administration of tests, examinations and other systems of assessing and recording academic or other achievement.” ICM has been successful in this objective having provided accessible and affordable qualification for 4 decades which can be considered to be a benchmark in itself. Trustees meet at least twice a year but often quarterly to review ICMs progress against its objectives, to approve future strategy and to review financial stability.

Page 5

The Institute of Commercial Management

Trustees' Report

Risks

ICM operates in some countries which are considered high risk including parts of Africa, Asia, and the Caribbean. Risks associated with these countries include: political instability; currency fluctuation and hyperinflation; money laundering, corruption and fraud; terrorism.

These risks could affect learner’s ability to attend tuition and to register for ICM examinations and affect the financial performance of ICM. To mitigate these risks, ICM employ a local representative (Business Development and Delivery Consultants) in each country who monitor the political and financial situation and work directly with approved teaching centres and learners. Handbooks and policies in place with all members of staff, document the requirements for reporting risks and threats to ICM, for reporting of suspected bribery and corruption, fraud, malpractice and maladministration, and any issue that could be considered a risk. A log of all threats to best practice is maintained and reviewed at each management meeting and items escalated to Trustees as necessary.

All risks identified are documented on the ICM Risk Management Policy and Procedure and discussed with the Trustees at each trustee meeting.

The Covid-19 pandemic has been the most significant risk to ICM, and the situation was monitored and managed through adapted assessments and financial management initiatives to secure the future of ICM.

Cyber security is an ever-increasing risk to all businesses and ICM employ a third-party company who provide training to all ICM members of staff including testing staff on their ability to identify cyber security attacks.

An adapted assessment, Remote Assignments, introduced in September 2020 has provided ICM with a method of continuing to assess learners through a significant time of disruption such as a pandemic or coup.

Should any risk lead to the potential for a threat to ICMs future income, a review of the costs and further remedial action will be initiated.

Financial instruments

Objectives and policies

The group's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the group’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The group does not use derivative financial instruments for speculative purposes.

Cash flow risk

The group’s activities could potentially expose it to the financial risks of changes in foreign currency, exchange rates and interest rates. The group invoices in GB Sterling to mitigate these exposures. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The group’s principal financial assets are bank balances and cash, trade and other receivables. The group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term and short-term debt finance.

Page 6

The Institute of Commercial Management

Trustees' Report

Statement of trustees' responsibilities

The trustees (who are also the directors of The Institute of Commercial Management for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland."

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Harney & Co Limited as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the trustees of the charity on 28 March 2025 and signed on its behalf by:

......................................... A F C Somerville-Ford CEO and Company secretary

Page 7

The Institute of Commercial Management

Independent Auditor's Report to the Members of The Institute of Commercial Management

Opinion

We have audited the financial statements of The Institute of Commercial Management (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charity Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 8

The Institute of Commercial Management

Independent Auditor's Report to the Members of The Institute of Commercial Management

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company, and its environment, obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities (set out on page 7), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 9

The Institute of Commercial Management

Independent Auditor's Report to the Members of The Institute of Commercial Management

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements. We also considered potential financial or other pressures, opportunity, and motivations for fraud. As part of this discussion, we identified the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations and how management monitor these processes. We also addressed the risk of management override of internal controls including review and testing journals, key estimates and judgements to evaluation whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

As part of the audit planning, we gained an understanding of the legal and regulatory framework applicable to the Charitable company. We gained an understanding of the Charitable company and the sector in which the Charitable company operates as part of this assessment to identify the key laws and regulations affecting the Charitable company. As part of this we reviewed the Charitable company’s website for an indication of any regulations in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity Commission legislation, Health and Safety regulations and the General Data Protection Regulation (“GDPR”). We also considered the laws and regulations impacting on the preparation of the financial statements including Charities Act 2011 and Charities SORP (FRS 102).

We discussed with management with regards to compliance with the above laws and regulations and how compliance is monitored and discussed policies and procedures in place to mitigate non-compliance. We also identified the individuals responsible for ensuring that the Charitable company complies with laws and regulations and deals with reporting any issues if they arise. We assessed the risk of any non-compliance with laws and regulations on the Charitable company’s ability to continue to operate and the risk of material misstatement to the financial statements.

Based on the understanding gained, we designed audit procedures to identify non-compliance with identified laws and regulations.

Our tests involved:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 10

The Institute of Commercial Management

Independent Auditor's Report to the Members of The Institute of Commercial Management

Use of our report

This report is made solely to the charitable parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Stephen J Harney (Senior Statutory Auditor) For and on behalf of Harney & Co Limited, Statutory Auditor

21 Market Place Blandford Forum Dorset DT11 7AF

28 March 2025

Page 11

The Institute of Commercial Management

Consolidated Statement of Financial Activities for the Year Ended 30 June 2024 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Charitable activities
3
Investment income
4
Rental income
5
Total income
Expenditure on:
Charitable activities
6
Governance costs
7
Other expenditure
8
Total expenditure
Gains/losses on investment assets
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 2024
£
1,192,920
4,626
26,400
1,223,946
(1,228,530)
(27,608)
23,273
(1,232,865)
25,000
16,081
16,081
781,573
797,654		 2023
As restated
£
1,289,629
4,603
26,400
1,320,632
(1,303,381)
(22,295)
(20,361)
(1,346,037)
-
(25,405)
(25,405)
806,978
781,573

All of the group's activities derive from continuing operations during the above two periods.

All funds are unrestricted, and no funds have been designated to any specific activity or expenditure.

The notes on pages 16 to 28 form an integral part of these financial statements. Page 12

The Institute of Commercial Management

(Registration number: 3031779) Consolidated Balance Sheet as at 30 June 2024

Note
Fixed assets
Tangible assets
14
Investments
Current assets
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the group:
Unrestricted income funds
Unrestricted funds
Total funds
23		 2024
£
40,232
565,000
605,232
594,883
9,124
604,007
(352,359)
251,648
856,880
(59,226)
797,654
797,654
797,654		 2023
As restated
£
24,887
540,000
564,887
591,806
13,053
604,859
(288,173)
316,686
881,573
(100,000)
781,573
781,573
781,573

The financial statements on pages 12 to 28 was approved by the trustees, and authorised for issue on 28 March 2025 and signed on their behalf by:

......................................... J Caithness Trustee

The notes on pages 16 to 28 form an integral part of these financial statements. Page 13

The Institute of Commercial Management

(Registration number: 3031779) Balance Sheet as at 30 June 2024

Note
Fixed assets
Tangible assets
14
Current assets
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net liabilities
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
23		 2024
£
40,232
537,553
6,974
544,527
(1,072,446)
(527,919)
(487,687)
(59,226)
(546,913)
(546,913)
(546,913)		 2023
As restated
£
24,887
534,475
12,847
547,322
(1,010,203)
(462,881)
(437,994)
(100,000)
(537,994)
(537,994)
(537,994)

The financial statements on pages 12 to 28 were approved by the trustees, and authorised for issue on 28 March 2025 and signed on their behalf by:

......................................... J Caithness Trustee

The notes on pages 16 to 28 form an integral part of these financial statements. Page 14

The Institute of Commercial Management

Consolidated Statement of Cash Flows for the Year Ended 30 June 2024

Note
Cash flows from operating activities
Net cash expenditure
Adjustments to cash flows from non-cash items
Unwinding of below market rate loan
8
Depreciation
9
Investment income
4
Working capital adjustments
Decrease in debtors
16
Increase in creditors
18
(Decrease)/increase in deferred income
18
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
4
Purchase of tangible fixed assets
14
Sale of tangible fixed assets
6
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
19
Repayment of capital element of finance leases and HP contracts
20
Net cash flows from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 July
17
Cash and cash equivalents at 30 June		 2024
£
(8,919)
(23,273)
11,013
(4,626)
(25,805)
20,196
41,646
(2,827)
33,210
4,626
(26,358)
-
(21,732)
(30,000)
14,593
(15,407)
(3,929)
13,053
9,124		 2023
As restated
£
(25,405)
20,361
8,296
(4,603)
(1,351)
7,431
6,938
25,011
38,029
4,603
(2,360)
1,933
4,176
(48,255)
-
(48,255)
(6,050)
19,103
13,053

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 16 to 28 form an integral part of these financial statements. Page 15

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

These financial statements were authorised for issue by the trustees on 28 March 2025.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 - Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the UK Generally Accepted Practice as it applies from January 2015.

Basis of preparation

The Institute of Commercial Management meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are prepared in sterling which is the functional currency of ther charity, and rounded to the nearest £1.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 30 June 2024.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a deficit for the financial year of £8,918 (2023: deficit of £25,405, as restated).

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Accounting policies of subsidiaries are consistency with the policies adopted by the group.

Page 16

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

At the year end, total unrestricted funds of the Charitable company were in deficit by £546,913 (2023: £537,994). As explained in the financial review, the financial forecast shows a steady recovery. As a consequent the fund deficit is considered to be temporary and is expected to be gradually reduced and eliminated in future years as income levels stabilise. The Consolidated position is in surplus in the amount of £797,654 (2023: £781,573)

The trustees recognise a ‘not at market term’ loan, made to a connected party, at Discounted Present Value. The gain/(loss) each year is included in the SOFA. In the current year this amounted to a gain of £23,274 as the discounting is unwound and an expense in 2023 of £20,361 due to an increase in interest rates used in the discounting, The impact on the overall results for the year is significant and should be taken into account when assessing the underlying performance of the charity.

Income and endowments

All income is recognised in the Statement of Financial Activities (SOFA) once the charity has legal entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. Charitable activities represent examination and registration fees attributable to the period covered by the accounts and are recognised on the accruals basis. Fees received in respect of future periods are carried forward as deferred income in creditors. Income from trading activities, including activities to raise money for the charity, is received in exchange for supplying goods and services in order to raise funds.

Grants receivable

A grant that becomes receivable as compensation for expenses already incurred is recognised in the Statement of Financial Activiies in the same period in which the related expense is incurred.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. Such income is deferred when it is specifically only be used in future accounting periods; or there are conditions which must be met before the charity has unconditional entitlement to the income.

Investment income

Investment income is accounted for on the basis of the amount receivable for the period on an accruals basis.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 17

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Cost includes cost directly attributable to making the asset capable of operating as intended.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Office and computer equipment 25% reducing balance
Plant and equipment 25% reducing balance

Investment properties

Freehold land and buildings which are held primarily for either rental income or capital appreciation are included of fair value.

Unrealised gains or losses represnting the movement in market values during the year are credited or charged to the Statement of Financial Activities and are based on the market value at the year end.

Trade debtors

Trade debtors are recognised initially and subsequently measured at the transaction price less any provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Loans

Below market rate loans are measured at net present value of future cash flows, using relevant bank of England interest rates, with movement in the valuations being recognised in the Statement of Financial Activities.

Page 18

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially and subsequently measured at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. Exchange differences are recognised in the Statement of Financial Activities in the period in which they arise.

Fund structure

General unrestricted funds comprise the accumulated surplus or deficit derived from the income and expenditure account and which have not been designated for other purposes. They are available for use at the discretion of the Trustees in the furtherance of the general objectives of the group.

As at the year end there were no restricted nor designated funds.

Hire purchase and finance leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under finance leases are capitalised in the balance sheet as tangible fixed assets and are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a reducing balance basis over the shorter of the useful life of the asset and the lease term. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. Lease payments are charged to the Statement of Financial Activities and are apportioned between finance costs and the reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

The interest element of the rental obligation is charged to the Statement of Financial Activities over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Page 19

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Pensions and other post retirement obligations

The Charity contributes to an auto-enrolment pension scheme for all employees and contributions payable are charged to the Statement of Financial Activities in the period in which the fall due.

Financial instruments

Classification

The group has not entered into any complex financial instruments. Financial assets and financial liabilities are recognised when the group becomes party to the contractual provisions of the instrument. They are classified according to the substance of the contractual arrangements entered into. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

3 Income from charitable activities

3
Income from charitable activities
Exam and registration fees
4
Investment income
Loan interest receivable
5
Other income
Rental income
6
Expenditure on charitable activities
Salaries and wages
Staff NIC (Employers)
Staff pensions (Defined contribution)
Staff training
Staff welfare
Recruitment expenses
Rent and rates
Light, heat and power
Insurance
Repairs and maintenance
Telephone and fax
Computer software and maintenance costs		 2024
£
1,192,920
2024
£
4,626
4,626
2024
£
26,400
2024
£
611,868
51,011
9,573
3,296
6,707
538
77,302
7,536
936
1,959
5,645
55,117		 2023
£
1,289,629
2023
£
4,603
4,603
2023
£
26,400
2023
£
639,430
46,550
9,928
2,384
4,723
510
80,567
5,493
2,179
2,346
9,216
45,233

Page 20

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Printing, postage and stationery
Courier services
Trade and professional journals
Examination and course expenses
Trade subscriptions
Lease of motor vehicles
Sundry expenses
Cleaning
Motor expenses
Travel and subsistence
Advertising
Staff entertaining (allowable for tax)
Consultancy fees
Legal and professional fees
Bad debts written off
Bank charges
Bank interest payable
Loan interest
Other interest payable
Hire purchase interest
Foreign currency (gains)/losses
Depreciation of office equipment on finance
Depreciation
Allocated support costs		 2024
£
13,231
22,087
1,108
246,635
3,474
12,112
797
9,589
1,841
12,233
18,615
1,468
20,684
1,350
-
3,129
19
4,041
13,180
436
1
3,598
7,414
-
1,228,530		 2023
£
19,995
26,979
1,386
279,612
3,090
9,312
561
11,473
2,394
2,480
21,972
1,993
16,801
1,441
30,677
4,710
-
7,352
2,271
-
93
-
8,297
1,933
1,303,381

7 Analysis of governance and support costs

Governance costs

Governance costs
Audit fees
Audit of the financial statements
Other fees paid to auditors		 2024
£
9,850
17,758
27,608		 2023
£
16,650
5,645
22,295

Page 21

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

8 Other expenditure

Note
Unwinding of below market rate loan
24		 2024
£
(23,273)
(23,273)		 2023
As restated
£
20,361
20,361

9 Net incoming/outgoing resources

Net outgoing resources for the year include:

Audit fees
Other non-audit services
Depreciation of fixed assets		 2024
£
9,850
17,758
11,013		 2023
£
16,650
5,645
8,297

10 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

11 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Staff pensions		 2024
£
611,868
51,011
9,573
672,452		 2023
£
639,430
46,550
9,929
695,909

The monthly average number of persons (including senior management / leadership team) employed by the group during the year was as follows:

Examiners
Core staff (administration)		 2024
No
13
15
28		 2023
No
11
15
26

Page 22

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

The average number of examiners comprises 3 months with 30 over a base average of 4 persons employed, reflecting the 3/4 exam sittings per year.

Of the above staff 15 (2023: 15) Core staff and 8 (2023: 7) Examiners participated in the Defined Contribution Pension Scheme, and employer contributions to the employee pension scheme for the year totalled £9,573 (2023: £9,929).

The total employee benefits of the key management personnel of the group were £2,578 (2023: £1,145).

The chief executive officer, as the highest paid member of staff, received benefits (including salary and benefits in kind) totalling £151,429 (2023: £121,145). One other key member of staff received salary and benefits in excess of £60,000 amounting to £111,969 (2023: £84,667).

12 Auditors' remuneration

Audit of the financial statements
Other fees to auditors
All other non-audit services		 2024
£
9,850
17,758		 2023
£
16,650
5,645

13 Taxation

The group is a registered charity and is therefore exempt from taxation.

14 Tangible fixed assets

Group
Cost
At 1 July 2023
Additions
At 30 June 2024
Depreciation
At 1 July 2023
Charge for the year
At 30 June 2024
Net book value
At 30 June 2024
At 30 June 2023		 Office
equipment
£
223,327
26,358
249,685
200,239
10,563
210,802
38,883
23,088		 Plant and
Machinery
£
5,689
-
5,689
3,890
450
4,340
1,349
1,799		 Total
£
229,016
26,358
255,374
204,129
11,013
215,142
40,232
24,887

All of the above Tangible fixed assets are held in the Charity and therefore the Group Tangible fixed asset note also represents the Charity Tangible fixed asset note.

Page 23

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes £17,990 (2023: £nil) in respect of assets held under finance leases and hire purchase contracts.

15 Fixed asset investments

Group
Investment properties		 2024
£
565,000		 2023
£
540,000

Investments properties were revalued in the year, increasing the total value of the properties in the amount of £25,000 to reflect market valuations at the year end. The historic cost of the properties in 2015 was £718,461 with previous impairments amounting to £178,461 being taken to the profit and loss account.

The fair value of investment properties is undertaken by the trustees, based on consultation with independent property agents who hold relevant professional qualifications and have experience in the location and class of property being valued.

The above comprises 2 freehold investment properties that are both owned by the subsidiary, ICM Examining Services Limited. The Charity does not directly own any investment property.

Charity

Subsidiaries

ICM Examining Services Limited is a private company incorporated in England and Wales, Company number 02928935, limited by guarantee without share capital. The subsidiary is controlled by The Institute of Commercial Management.

The principal activity of the subsidiary is that of owning and managing investment properties. The subsidiary company transfers all of its surplus income to the charity, there is therefore no taxable profits and no corporation tax liability arising. Net assets of the subsidiary amounted to £1,344,567 (2023: £1,319,567).

16 Debtors

Note
Trade debtors
Loan to ICM
Property Services Ltd
24
Prepayments		 Group
2024
£
2023
As restated
£
4,566
14,134
582,290
568,350
8,027
9,322
594,883
591,806		 Charity
2024
£
2023
As restated
£
4,566
14,134
524,960
511,019
8,027
9,322
537,553
534,475		 Charity
2024
£
2023
As restated
£
4,566
14,134
524,960
511,019
8,027
9,322
537,553
534,475
534,475

The loan granted to ICM Property Services Limited of £524,960 (2023: £511,019 as restated) included above from the Charity is measured at net present value of future cash flows using relevant Bank of England interest rates, and is due for payment in over 5 years (as set out in the referenced Related Party note). The balance amounting to £57,330 (2023: £57,330) is owed to the subsidiary ICM Examining Services by ICM Property Services Limited is measured at transaction price and is due on demand.

Page 24

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

17 Cash and cash equivalents

17 Cash and cash equivalents
Cash on hand
Cash at bank		 Group
2024
£
2023
£
616
658
8,508
12,395
9,124
13,053		 Charity
2024
£
2023
£
616
658
6,358
12,189
6,974
12,847
12,847

18 Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other loans
Hire purchase and finance leases
Due to group undertakings
Other taxation and social security
Trustees current accounts
Other creditors
Accruals
Deferred income		 Group
2024
£
2023
£
50,000
50,000
43,745
23,794
20,000
-
5,367
-
-
1
81,424
37,391
23
12,172
23,569
6,581
16,685
43,861
111,546
114,373
352,359
288,173		 Charity
2024
£
2023
£
50,000
50,000
38,123
23,794
20,000
-
5,367
-
740,701
743,173
81,424
37,391
-
-
11,420
6,581
13,865
34,891
111,546
114,373
1,072,446
1,010,203		 Charity
2024
£
2023
£
50,000
50,000
38,123
23,794
20,000
-
5,367
-
740,701
743,173
81,424
37,391
-
-
11,420
6,581
13,865
34,891
111,546
114,373
1,072,446
1,010,203
1,010,203

Deferred income

Deferred income included above represents income received for examinations not yet undertaken, the amount deferred represents fees received within the year to be released once the examination date passes. All of the deferred income bought forward was released to income during the year.

19 Creditors: amounts falling due after one year

Bank loans
Hire purchase and finance leases		 Group
2024
£
2023
£
50,000
100,000
9,226
-
59,226
100,000		 Charity
2024
£
2023
£
50,000
100,000
9,226
-
59,226
100,000		 Charity
2024
£
2023
£
50,000
100,000
9,226
-
59,226
100,000
100,000

Bank borrowings

The Coronavirus Business Interruption Loan Scheme (“CBILS”) loan was interest free for 12 months and then repayable over 60 months with an interest rate of 2.71% above base rate. Repayments are due in monthly instalments of £4,166.66 with the final instalment is due on 15 June 2026. The carrying amount at the year end is £100,000 (2023: £150,000).

Page 25

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

20 Obligations under leases and hire purchase contracts

The total value of future minimum lease payments was as follows:

Within one year
In two to five years		 Group
2024
£
5,367
9,226
14,593		 Charity
2024
£
5,367
9,226
14,593

21 Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £9,573 (2023: £9,929). There were no contributions payable to the scheme at the year end.

22 Commitments

Operating lease commitments

The Charity has a contractural operating lease commitment of £68,970 per annum, terminating on 01/04/2031. The total amount of other financial commitments not provided in the financial statements was £465,548 (2023: £534,518).

23 Funds

Group

Unrestricted funds
General
Unrestricted funds
General		 Balance at 1
July 2023
As restated
£
Incoming
resources
£
Resources
expended
£
Other
recognised
gains/(losses)
£
Balance at
30 June
2024
£
781,573
1,223,946
(1,232,865)
25,000
797,654
Balance at 1
July 2022
£
Incoming
resources
£
Resources
expended
£
Balance at 30
June 2023
As restated
£
806,978
1,320,632
(1,346,037)
781,573		 Balance at
30 June
2024
£
797,654

Page 26

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

Charity

Unrestricted funds
General
Unrestricted funds
General		 Balance at 1
July 2023
As restated
£
(537,994)
Balance at 1
July 2022
£
(512,589)		 Incoming
resources
£
1,220,860
Incoming
resources
£
1,317,435		 Resources
expended
£
(1,229,779)
Resources
expended
£
(1,342,840)		 Balance at 30
June 2024
£
(546,913)
Balance at 30
June 2023
As restated
£
(537,994)

Analysis of net assets between funds and analysis of net funds

There are no seperate funds operated within the Charitable company and therefore no analysis between funds presented. All funds are unrestricted and there are no designated funds.

Restatement of comparatives

The comparatives have been restated to correct an error in the value of the unwinding of below market value rate loan. This was previously shown in the accounts to 30 June 2023 as £124,323. An error of £103,962 has come to light and consequently the undwinding of below market value rate loanas at 30 June 2023 has been restated to £20,361. This restatement has impacted on the Income and Net movement in funds disclosed in the SOFA and on the Total funds carried forward as at 30 June 2023 in the same amount.

24 Related party transactions

Group

During the year the group made the following related party transactions:

ICM Property Services Limited

ICM Property Services Limited is related as Adair Ford (Company Secretary of the Charity, and director of ICM Examining Services Limited), is the controlling director and shareholder of ICM Property Services Limited.

In 2015 a loan of £892,000 was made to ICM Property Services Limited for the land purchase and construction of ICM House, Yeoman Road, Ringwood, BH24 3FA. The loan term was revised in 2022 so that repayments do not commence until April 2032. The interest rate being applied to the loan is fixed at 0.50% per annum. Interest income for the year amounted to £4,626 (2023: £4,603). Rent of £68,970 per annum is paid to ICM Property Services Limited as set out in note 21. The loan balance is included at net present value of future cash flows, and during the year the unwinding of the below market rate loan discount amounted to £23,273 (2023: -£20,361 as restated). At the balance sheet date the amount due from ICM Property Services Limited was £582,290 (2023: £568,349).

Page 27

The Institute of Commercial Management

Notes to the Financial Statements for the Year Ended 30 June 2024

The Late Dr Alistair Ford

The Late Dr Alistair Ford is related to Adair Ford.

During the year the balance of £12,149 has been moved to other creditors and is owed to the Estate of the Late Dr Alistair Ford. At the balance sheet date the amount due to The Late Dr Alistair Ford was £12,149 (2023: £12,149).

Charity

During the year the charity made the following related party transactions:

ICM Examining Services Limited

ICM Examining Services Limited is a controlled subsidiary of the Charity.

During the year net transfers were made between the Charity and ICM Examining Services Limited of £2,472 (2023: £441). At the balance sheet date the amount due from ICM Examining Services Limited was £740,701 (2023: £743,172).

ICM Property Services Limited

ICM Property Services Limited is related as Adair Ford (Company Secretary of the Charity, and director of ICM Examining Services Limited), is the controlling director and shareholder of ICM Property Services Limited.

In 2015 a loan of £892,000 was made to ICM Property Services Limited for the land purchase and construction of ICM House, Yeoman Road, Ringwood, BH24 3FA. The loan term was revised in 2022 so that repayments do not commence until April 2032. The interest rate being applied to the loan is fixed at 0.50% per annum. Interest income for the year amounted to £4,626 (2023: £4,603). Rent of £68,970 per annum is paid to ICM Property Services Limited as set out in note 21.

The loan balance is included at net present value of future cash flows, and during the year the unwinding of the below market rate loan discount amounted to £23,273 (2023: -£20,361 as restated). At the balance sheet date the amount due from ICM Property Services Limited was £524,961 (2023: £511,019).

Page 28