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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 03166809 (England and Wales) REGISTERED CHARITY NUMBER: 1070440

Report of the Trustees and

Financial Statements

for the Year Ended 31 March 2023

for EIL UK

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

EIL UK

Contents of the Financial Statements for the Year Ended 31 March 2023

Page
Report of the Trustees 1 to 12
Report of the Independent Auditors 13 to 15
Statement of Financial Activities 16
Balance Sheet 17 to 18
Cash Flow Statement 19
Notes to the Cash Flow Statement 20
Notes to the Financial Statements 21 to 32

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The advancement of education in the culture, circumstances and way of life of people of different nations, races and creeds.

Our Vision

A more tolerant and understanding world.

Our Mission

We bring people together to develop lasting understanding across communities, borders and ideological divides.

What we do

Since 1936, the charity has provided intercultural learning opportunities to create a more peaceful, tolerant and understanding world.

Our cultural immersion programmes include study abroad, family homestays, group educational programmes, training and language courses.

We are working in a challenging environment where the Covid-19 pandemic and changes to UK visas introduced in 2022 continue to impact on the delivery of programmes. Despite operational difficulties, we are pleased to report that we are starting to see our programmes recover. This is largely due to the efforts of EIL staff and volunteers, including our hosts, who managed to deliver high quality intercultural learning experiences that enriched the lives of everyone involved.

Our Values

In all we do, we seek to:

Be inclusive - welcome people from all backgrounds and provide a tailored and personal
service, reflecting diversity and promoting tolerance;
Be inclusive - work as one team with a shared passion and enthusiasm for what we do,
and collaborate with partners and communities in the spirit of mutual
benefit and with respect;
Be responsive - listen and adapt to meet individual needs, and respond in agile and
creative ways to meet challenges;
Aim for excellence - create high quality enriching experiences with the power to shape people's
lives, continue to learn and innovate to advance good practice and seek to
be the best we can be in everything we do;
Strive for sustainability - be forward-thinking, active contributors to the future health of the planet
and recognise that experiential learning and global citizenship unlock
leadership qualities that are essential to help solve international
challenges.

Page 1

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

OBJECTIVES AND ACTIVITIES

An international network

As a founder member of Federation EIL (FEIL), we continue to support the global network of not-for-profit organisations dedicated to intercultural experiential learning. Federation EIL is one of the oldest and most established hosting organisations in the world. In 1989 the United Nations Secretary General awarded Federation EIL Peace Messenger status.

EIL UK is a significant contributor to the association and remains fully supportive of its aims, ideals and objectives. Collaboration and joint-working practices with Federation partners serve to strengthen all organisations, advance good practice and reinforce the shared mission and vision.

In November 2022 we participated in the Federation's annual General Assembly (GA) in Frankfurt, Germany. Work has continued on the development of a Certification Scheme to advance global practitioner standards and good practice for organisations in the international exchange sector. We continue to contribute actively to this important and pioneering initiative.

Public benefit

The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

EIL UK enriches and transforms lives by giving people from different countries and cultures immersive opportunities to get to know each other and develop a deeper understanding of how they see the world and their cultural differences and similarities. By living as a member of the host family, participants and hosts develop lasting friendships through the charity's structured inter-cultural learning programmes. It is this deeper understanding and appreciation of different cultures that breaks down barriers between people, fosters tolerance and respect for other perceptions and viewpoints and provides participants with a range of intercultural competencies.

Our programmes offer individuals and groups the chance to participate in cultural learning and communitybased projects that improve the wellbeing and environment of people in the UK and beyond.

THE COVID-19 PANDEMIC - IMPACT AND MITIGATION

The pandemic first impacted on the charity in March 2020 when the UK, along with many countries, went into lockdown. The effects continue to impact on the charity's activities and the timescales for recovery. We are pleased to report that in 2022-23 all of our programme activity increased, with the exception of ESC training which declined as volunteer projects started to wind down in anticipation of the UK's withdrawal from the EU's Erasmus+ programme.

This year there was no financial support from the Job Retention Scheme, which supported us in previous years. As planned, the charity drew on its reserves for a third year to supplement the funds generated by our charitable activities. In addition, and as reported in our previous Annual Accounts 2021-22, we applied for and secured a loan of £120,000 from the Government-backed Recovery Loan Scheme. The additional funds have provided the organisation with security while our programmes continue to recover, and we expand our charitable activities.

The introduction of the new four-year Strategic Plan has helped us focus our resources on priority activities. We will continue to rebuild our programmes so that we can strengthen the resilience of the organisation and our capacity to withstand and respond to future global events.

Page 2

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

ACHIEVEMENT AND PERFORMANCE

1. OUR PROGRAMMES

Overall, the recovery of our programmes is going well but it is taking longer than expected. Despite challenges, this year our participant numbers were exactly 600, as a result of increased programme activity.

Homestays and HOST UK

In 2022-23 we delivered homestays for 292 participants:

We would like to express our gratitude and recognise the amazing support we have received from our network of dedicated volunteer hosts who open their hearts and homes to visitors from across the world, sharing their lives, exploring cultures and offering friendship.

In addition, we would like to thank our partners and Subscribing Institutions along with our wonderful volunteer Coordinators and Regional Organisers for their ongoing commitment towards supporting participants, hosts and EIL.

Study Abroad

This year demand increased for our Study Abroad Programmes which we introduced last year in response to UK visa changes in January 2021 (which forced us to abandon our Academic Year Programme). We have restructured our activities to offer shorter high-quality programmes and we were very pleased to deliver formal education programmes to a total of 36 students.

Over the academic year 2022-23 we welcomed:

This year we re-started our 'outbound' programme. In addition to receiving 26x 'inbound' students, we were delighted that an 18-year-old student was accepted to study in Japan for a year.

This programme was a great success and has opened the door for future outbound students. Our partner organisation in Japan was so impressed with the success of this pioneering programme, it has been extended to other colleges and marketed to other countries.

Cultural Groups

After a two-year absence, we were delighted to welcome back Cultural Groups of both university and high school students. We hosted 47 participants over the year. The number of cultural groups remains low and the conflict in Ukraine has deterred group organisers from returning to Europe.

Awareness and Training

As an ESC sending organisation, we supported 3 volunteers on overseas volunteering projects in Malta and Spain.

Our contract with the ESC National Agency, British Council and Ecorys, to deliver the training and evaluation cycle (TEC) for ESC volunteers expires when the UK's involvement in the European Solidarity Corps (ESC) ends on 31st December 2023. Despite project closures and the dwindling number of volunteer arrivals, our pool of freelance trainers delivered online trainings of the highest quality to 212 participants (compared to 390 in 2022-23). We would like to take this opportunity to thank our trainers for their ongoing commitment to ESC training.

Page 3

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

ACHIEVEMENT AND PERFORMANCE

2. HOSTING

The immersive experience of living as a part of the family is a key feature of our programmes. It has a high impact on both participants and the host family because it leads to a huge increase in the understanding of different cultures that opens up career and life opportunities. Many homestays lead to life-long international friendships that enrich lifetimes and generations.

As at 31st March 2023, we had 788 registered hosts and an additional 204 inactive and paused host households. Our hosts range from couples to single-person households, and we welcome hosts from all walks of life. We continued our commitment to develop a host network that reflects the diversity of communities in the UK today.

Our strategy is to:

3. OUR IMPACT

In normal times we measure our impact by the number of participants and host families involved in our programmes, the number of training places taken up by volunteers and the quality of the feedback we receive from everyone involved in homestays. However, we know that our programmes impact on a far greater number of people including the relatives and friends of host families, schools, business environments and communities whose lives are touched by contact with international visitors. We are pleased that, for another year, our programmes were well received and had a positive impact on the participants.

Our people

The success of our programmes is dependent on the people who participate in them and lend their support. We are grateful to:

Page 4

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

ACHIEVEMENT AND PERFORMANCE

LOOKING TO THE FUTURE

Over the next year we will continue to work towards our five key strategic objectives (developed in 2021-22) which are to:

In 2023-24, our key goals are to:

In conclusion, 2022-23 has been another challenging year. We are fortunate that, with the support of our staff and volunteers, we have been able to change and adapt as we continue our journey towards post-pandemic recovery. During 2023-24 we look forward to more growth and extending cultural learning opportunities for people of all ages. In a turbulent world, our role in bringing people together to deepen mutual understanding remains as important as ever.

FINANCIAL REVIEW

Overview

Although programme activity increased and generated 57% higher income than in 2021-22, the recovery from COVID travel restrictions was slower than expected. Interest rates on the new Barclays loan taken out in July 2022 (noted as a post Balance Sheet event in last year's accounts) increased unexpectedly in Autumn 2022, with travel and office costs also affected by the wider financial environment. These additional costs reduced our net income which, combined with the lack of grant assistance, resulted in an end-of-year deficit of £38,641.

As anticipated, the overall end-of-year position was improved by the increased value of the properties at 287 Worcester Road. The asset at 287 Worcester Road, Malvern, Elphick House and Sterling Lodge, was revalued at £400,000 which was an increase of £60,000 from the previous value of £340,000. The asset is shown as a designated sum in our accounts. Further information on the revaluation 'gain' can be found at Note 13.

Income

Our two main sources of income were:

Expenditure

Staffing costs formed the majority of our expenditure, although posts were left vacant for as long as possible without impacting operations. We continued the careful management of our expenditure throughout the year.

Page 5

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

FINANCIAL REVIEW

Investments

Under its memorandum and articles of association, the charity has the power to invest in any way the trustees wish. The trustees, having regard to liquidity requirements, to the cash flow involved in operating programmes and to the reserves policy, have maintained a policy of keeping available funds in accessible accounts. When funds have allowed, the trustees have sought to achieve a rate of interest that matches or exceeds inflation as measured by the retail prices index.

Reserves policy

It is the policy of the charity to hold reserves in its unrestricted funds that have not yet been committed or designated for any particular purpose. The trustees set aside these free reserves to protect the future operations of the charity from the effects of any unforeseen variations in its income streams.

By 31 March 2023, the charity's reserves were significantly depleted, as anticipated. This demonstrated the need for the support provided by the Recovery Loan Scheme.

As at 31 March 2023, reserves in the charity's unrestricted funds amounted to £434,165 (compared to £466,256 at 31 March 2022) of which £31,447 were free reserves (compared to £122,560 at 31 March 2022).

Free reserves are reserves which do not include restricted funds, endowment funds of £25,000 or funds tied up in the fixed assets. As at 31 March 2023 the free reserves represented under 2 months' operating costs.

In September 2023 trustees reviewed the charity's reserves policy in line with their policy of good financial management practice and continued their policy to work towards achieving a level of reserves equivalent to a minimum of six months (compared to four months the year before) of gross revenue expenditure with a target level of nine months' gross expenditure (compared to six months the year before). The Board recognises that it is likely to take some time to achieve the target level of reserves.

Through our reserves policy, we recognise and mitigate against two key risks to the charity's future operations:

Looking forward to 2023-24 trustees anticipated the need to grow programme activity and agreed to resource fundraising activities to minimise any further withdrawals from the charity's reserves.

In 2023-24 we have already increased our programme activity and income and continue to control our costs. The Board has agreed that a small sum from reserves will be used to support a deficit budget for 2023-24 while the organisation invests for the future. It remains our intention to restore the reserves to the target level over future years.

Page 6

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

FINANCIAL REVIEW

Fundraising

This year we did not have the support of the government's Job Retention Scheme. We have worked hard to enable the charity to retain its skilled staff and have made a start on increasing the income we receive from donations and grants. Fundraising activities included:

Alongside fundraising directly for EIL UK, a number of businesses supported the charity with help in kind which was greatly appreciated. Support was also provided by the Department of International Trade in the form of specialist advice.

The trustees would like to express their gratitude to the charitable trusts, businesses and individual donors who supported the charity in 2022-23.

Going concern

The financial statements have been prepared on a going concern basis as 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. Programme income increased substantially in Q1 and Q2 of 2023-24 compared to the previous year which give confidence that the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Plans are in place to control and reduce costs, should that prove necessary, and, if necessary, release additional income from the charity's assets.

STRUCTURE, GOVERNANCE AND MANAGEMENT Legal status and governing document

EIL UK (also known as EIL) is a registered charity in England and Wales and company limited by guarantee, governed by its Memorandum and Articles of Association dated 22nd February 1996, as amended by special resolutions dated: 27th June 1998; 16th November 2013; and 21st December 2020.

The liability of the trustees, as members, is limited to £1.

The trustees of the charity are directors of the company and are referred to as trustees throughout this report.

The process to register EIL UK with the Office of the Scottish Charity Regulator (OSCR) is underway and we have submitted an Expression of Intent to confirm that the charity wishes to apply to The Charity Commission for Northern Ireland to register once the process reopens.

Page 7

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Appointment of trustees and induction

There is a requirement for one third of trustees to retire by rotation. If their number is not three or a multiple of three, the number nearest to one third shall retire from office. A new Trustee may be appointed either by the Company at a General Meeting or by written resolution signed by a majority of the members of the Company.

When trustee vacancies occur, nominations for new trustees are received from the charity's stakeholders and are considered against the specific requirements that have been identified for the vacancy. The Board has the power to co-opt trustees, but any trustees appointed by the Board are put forward for reappointment by the members at the next Annual General Meeting.

On appointment, new trustees receive a detailed information pack on both their role as a trustee and on the charity. They are invited to attend a trustees' meeting before formally being invited to accept the position. All trustees are invited and encouraged to visit the charity's offices and take part in various aspects of the charity's work to increase their understanding of the charity's work and impact.

In 2022-2023 we welcomed three new trustees. Karen Canham was appointed to the Board in September and was re-appointed by the charity's members in December. In addition, the charity's members appointed Steve Baylis and Laura Spencer at the AGM held on 3 December 2022.

Members

EIL UK has appointed members. The members appoint trustees, and all appointed trustees are members. The Memorandum and Articles allows for thirty members. All members agree to contribute £1 in the event of the charity having to be wound up.

As at 31 March 2023, there were seventeen serving members (compared to eleven on 31 March 2022) in addition to the six trustees named in this report. The members were: R Begley, B Coker, S Edgar, V Fogarty, R Godwin, M Hancox, C Hyde, R MacDonald, M Matthews, G McKeown, D Myers, S Preece, J Shaw, R Tilley, E Tilley, C Tweddell and B Worrall.

Organisation

The Board of Trustees oversees the work of the charity and meets at least four times a year. In 2022-23 the Board met in person. By prior agreement, some meetings were conducted online or as 'hybrid' sessions.

The Chief Executive is responsible for the day-to-day operations of the charity with delegated powers, approved by trustees.

Conflict of interest

The trustees have full regard to any perceived and actual conflict of interest that exists or may arise. They review conflicts on a regular basis and at the start of each Board, committee and working group meeting. Trustees with a declared, identified or apparent conflict of interest are required to leave Trustee meetings so that any issues may be considered in full, and decisions taken in the charity's sole interests.

Related parties and cooperation with other organisations

None of the trustees receive remuneration from their work with the charity. Any connection between a trustee or senior manager with a third-party contractor must be disclosed to the full Board of Trustees. In 2022-23, there were no related party transactions.

Page 8

EIL UK (Registered number: 03166809)

Report of the Trustees

for the Year Ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Board of Trustees and the Chief Executive comprise the key management personnel of the charity.

Trustees determine the charity's strategic direction and delegate to the Chief Executive the management, administration, organisation and operations of the charity on a day-to-day basis. All trustees give of their time freely and none received remuneration during the year.

The appointment of Co-Chairs

At the board meeting held on 2nd December 2022, the Board:

Committees and working groups

In Spring 2023, the Board reviewed the four committees created in 2021 for Governance, Finance, Nominations and Safeguarding. Following the review, the Board agreed that:

Trustee training

A training programme for trustees is under way and will continue to support the development of individual trustees and the Board as a whole.

Pay policy for senior staff

The pay of senior staff is reviewed annually and, where appropriate, increased.

Key management remuneration

The Chief Executive's pay is reviewed annually and, where appropriate, increased in line with increases awarded to all staff. The trustees regularly benchmark the pay of the Chief Executive and managers against levels of pay in other charities of similar size and complexity.

Page 9

EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Trustees take a proactive approach to the management of risks. The charity maintains a Risk Register which identifies the principal risks and uncertainties facing the charity and documents the policies, systems and procedures which help to mitigate exposure to and the impacts of risks. Trustees review and assess the Risk Register on a regular basis to take account of changes, consider new risks and to update mitigating actions.

The lasting effects of the Covid-19 pandemic and the war in Ukraine have impacted on the charity. The trustees have monitored the risks. The financial risks have been managed through regular reviews of available funds and the reserves.

The other major risk to the charity is that associated with safeguarding children, young people and vulnerable adults. The safeguarding risks are managed through regular monitoring of the charity's safeguarding standards and practices alongside reviews of our policies and procedures. We seek opportunities to benchmark our safeguarding against good practice elsewhere. We continue to carry out safeguarding checks on our hosts and renew them as appropriate.

In 2022-23, we had no reportable safeguarding incidents. Safeguarding standards are managed through our Safeguarding policies, systems and procedures which include participants, host family households and everyone involved in the delivery of EIL UK programmes. We thank our school partners and our Independent Listener for supporting student safeguarding and wellbeing.

As reported last year, the changes to immigration rules and visa arrangements for incoming students following BREXIT are a significant risk for the charity. The lack of access to European funding for multi-national initiatives, reciprocal international exchange activities, changes to the 'free movement' rights within the EU and restricting international student attendance at state-funded UK high schools to a maximum of six months without the benefit of qualifications both restrict UK and European citizens' access to multi-national learning opportunities and provide significant threats to the charity's programmes.

The impact of the COVID-19 pandemic remains another major risk. Infections are a risk to the health and the wellbeing of hosts and applicants, programme cancellations and reputational risks. We continue to adapt our programmes so that we can re-build our programme activities until they are closer to (or exceed) our former levels of success and financial security.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 03166809 (England and Wales)

Registered Charity number

1070440

Registered office

17 Graham Road Great Malvern Worcestershire WR14 2HR

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EIL UK (Registered number: 03166809)

Report of the Trustees for the Year Ended 31 March 2023

Trustees

S Backhouse S P Baylis (appointed 2.12.22) K M Canham (appointed 3.9.22) K Dance S C G Kuenssberg (resigned 31.10.22) S Lange (resigned 19.1.23) D M Myers (resigned 23.3.23) M E Pellew J Shaw (resigned 8.11.22) L J Spencer (appointed 2.12.22)

Chief Executive

K M Davis

Auditors

Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of EIL UK for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

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

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EIL UK (Registered number: 03166809)

Report of the Trustees

for the Year Ended 31 March 2023

AUDITORS

The auditors, Locke Williams Associates LLP, have indicated their willingness to continue in office. In accordance with good practice, EIL will conduct a tender for the provision of auditor services in preparation for the appointment of the auditor at the charity's Annual General Meeting in December 2022.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 1 December 2023 and signed on its behalf by:

S Backhouse - Trustee

Page 12

Report of the Independent Auditors to the Members of EIL UK (Registered number: 03166809)

Opinion

We have audited the financial statements of EIL UK (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

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Report of the Independent Auditors to the Members of EIL UK (Registered number: 03166809)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

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

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, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our 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 a Report of the Independent Auditors 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.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to these risks, 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 by, for example, forgery or intentional misrepresentations, or through collusion.

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Report of the Independent Auditors to the Members of EIL UK (Registered number: 03166809)

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of third parties where appropriate.

There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and checking the authorisation of expenditure as part of our substantive testing, using analytical review to identify any significant or unusual transactions and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

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

David Williams (Senior Statutory Auditor) for and on behalf of Locke Williams Associates LLP Chartered Accountants Registered Auditors c/o Blackthorn House St Pauls Square Birmingham West Midlands B3 1RL

Date: .............................................

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EIL UK

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 March 2023

Unrestricted
funds
Notes
£
INCOME AND
ENDOWMENTS FROM
Donations and legacies
2
345
Charitable activities
4
Homestays
14,760
HOST UK
21,103
Study Abroad
184,953
Cultural Groups
45,015
Awareness & Training
81,493
Outbound
5,580
Investment income
3
27,652
Other income
42
Total
380,943
EXPENDITURE ON
Charitable activities
5
Homestays
27,852
HOST UK
45,007
Study Abroad
241,080
Cultural Groups
55,263
Awareness & Training
95,660
Outbound
6,750
Other
-
Total
473,034
Net gains on investments
60,000
NET
INCOME/(EXPENDITURE)
(32,091)
RECONCILIATION OF
FUNDS
Total funds brought forward
466,256
TOTAL FUNDS CARRIED
FORWARD
434,165		 Restricted
Endowment
funds
fund
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,542
-
-
-
-
-
-
-
-
-
8
-
6,550
-
-
-
(6,550)
-
11,148
25,000
4,598
25,000		 31.3.23
Total
funds
£
345
14,760
21,103
184,953
45,015
81,493
5,580
27,652
42
380,943
27,852
51,549
241,080
55,263
95,660
6,750
8
479,584
60,000
(38,641)
502,404
463,763		 31.3.22
Total
funds
£
28,259
329
12,237
72,355
819
137,651
1,547
27,985
-
281,182
28,903
10,067
116,536
42,171
162,415
1,046
-
361,138
-
(79,956)
582,360
502,404

The notes form part of these financial statements

Page 16

EIL UK (Registered number: 03166809)

Balance Sheet 31 March 2023

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
12
2,718
Investment property
13
400,000
402,718
CURRENT ASSETS
Debtors
14
49,525
Cash at bank and in hand
176,172
225,697
CREDITORS
Amounts falling due within
one year
15
(107,583)
NET CURRENT ASSETS
118,114
TOTAL ASSETS LESS
CURRENT LIABILITIES
520,832
CREDITORS
Amounts falling due after
more than one year
16
(86,667)
NET ASSETS
434,165
FUNDS
20
Unrestricted funds:
General fund
Property fund
Restricted funds:
Victoria League in Scotland
Tanner Trust
QA Higher Education
Chevening Secretariat
Endowment funds:
Marie Benson-Stott Scholarship
TOTAL FUNDS		 Restricted
Endowment
funds
fund
£
£
-
-
-
-
-
-
-
-
4,598
25,000
4,598
25,000
-
-
4,598
25,000
4,598
25,000
-
-
4,598
25,000		 31.3.23
Total
funds
£
2,718
400,000
402,718
49,525
205,770
255,295
(107,583)
147,712
550,430
(86,667)
463,763
34,165
400,000
434,165
1,458
2,000
1,140
-
4,598
25,000
463,763		 31.3.22
Total
funds
£
3,696
340,000
343,696
68,083
128,100
196,183
(37,475)
158,708
502,404
-
502,404
126,256
340,000
466,256
8,000
2,000
1,140
8
11,148
25,000
502,404

The notes form part of these financial statements

Page 17

EIL UK (Registered number: 03166809)

Balance Sheet - continued 31 March 2023

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 1 December 2023 and were signed on its behalf by:

S Backhouse - Trustee

The notes form part of these financial statements

Page 18

EIL UK

Cash Flow Statement

for the Year Ended 31 March
Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2023
31.3.23
£
(28,099)
(28,099)
(900)
2
(898)
120,000
(13,333)
106,667
77,670
128,100
205,770		 31.3.22
£
(43,404)
(43,404)
(1,196)
-
(1,196)
-
-
-
(44,600)
172,700
128,100

The notes form part of these financial statements

Page 19

EIL UK

Notes to the Cash Flow Statement for the Year Ended 31 March 2023

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
31.3.23 31.3.22
£ £
Net expenditure for the reporting period (as per the Statement
of Financial Activities) (38,641) (79,956)
Adjustments for:
Depreciation charges 1,878 3,312
(Gains)/losses on investments (60,000) -
Interest received (2) -
Decrease in debtors 18,558 51,987
Increase/(decrease) in creditors 50,108 (18,747)
Net cash used in operations **(28,099) ** (43,404)
ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 128,100 77,670 205,770
128,100 77,670 205,770
Debt
Debts falling due within 1 year - (20,000) (20,000)
Debts falling due after 1 year - (86,667) (86,667)
- (106,667) (106,667)
Total 128,100 (28,997) 99,103

2. ANALYSIS OF CHANGES IN NET FUNDS

The notes form part of these financial statements

Page 20

EIL UK

Notes to the Financial Statements for the Year Ended 31 March 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The presentation currency of the financial statements is the Pound Sterling (£).

Critical accounting judgements and key sources of estimation uncertainty

In preparing the financial statements, the trustees are required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

The key estimations used in these financial statements include:

Investment property - The trustees have revalued the property to fair value at the year end. In doing so, they have considered the last professional valuation undertaken in May 2023 and the current condition and occupation of the property.

The trustees consider that there are no significant areas of key judgement or estimation uncertainty other than those identified in the accounting policies below.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing.

No amount is included in the financial statements for volunteer time in line with the Charities SORP (FRS102). Further detail is given in the Trustees' Annual Report.

Programme income includes charges made to participants or sponsoring bodies for programmes run throughout the year and is recognised when entitlement has occurred.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Allocation and apportionment of costs

Expenditure on charitable activities includes:

Page 21

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

1. ACCOUNTING POLICIES - continued

Allocation and apportionment of costs

Where costs can not be directly attributed to particular activities, they have been allocated on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 25% on cost Computer equipment - 33% on cost

It is the policy of the charity to treat any capital expenditure items costing £500 and over as tangible fixed assets with depreciation applied as above. Items costing less than £500 are recognised within the Statement of Financial Activities in the year they are incurred. In exceptional circumstances, items costing less or more than £500 may qualify to be included or excluded from the Fixed Asset Register.

Investment property

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in 'net gains / (losses) on investments' in the Statement of Financial Activities.

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment funds represent those assets which must be held permanently by the charity. Income arising on the endowment fund can be used in accordance with the restrictions placed on the endowment.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 22

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

1. ACCOUNTING POLICIES - continued

Debtors

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for twelve months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
31.3.23 31.3.22
£ £
Donations 345 6,395
Grants - 21,864
345 28,259
Grants received, included in the above, are as follows:
31.3.23 31.3.22
£ £
Victoria League in Scotland - 5,000
HMRC Coronavirus Job Retention Scheme - 16,864
- 21,864

Page 23

EIL UK

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

3. INVESTMENT INCOME

Rents received
Deposit account interest
INCOME FROM CHARITABLE ACTIVITIES
Activity
Incoming programme
Homestays
Incoming programme
HOST UK
Incoming programme
Study Abroad
Incoming programme
Cultural Groups
Incoming programme
Awareness & Training
Outbound programme
Outbound		 31.3.23
£
27,650
2
27,652
31.3.23
£
14,760
21,103
184,953
45,015
81,493
5,580
**352,904 **		 31.3.22
£
27,985
-
27,985
31.3.22
£
329
12,237
72,355
819
137,651
1,547
224,938

4. INCOME FROM CHARITABLE ACTIVITIES

5. CHARITABLE ACTIVITIES COSTS

Homestays

HOST UK

Study Abroad

Cultural Groups

Awareness & Training

Outbound		 Direct
Costs (see
note 6)
£
20,835

42,262

159,508

35,392

59,914

4,293
322,206		 Support
costs (see
note 7)
£
7,017
10,709
81,572
19,871
35,746
2,457
157,370		 Totals
£
27,852
52,971
241,080
55,263
95,660
6,750
479,576

Page 24

EIL UK

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

6. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Incoming programme expenses		 31.3.23
£
106,146
216,060
322,206		 31.3.22
£
110,771
118,465
229,236

There has been a change in the allocation of costs, primarily around the allocation of staff costs directly to programmes for non-programme managers, which impacts the comparison between years. The change is designed to improve accuracy.

7. SUPPORT COSTS

Management
£
Homestays
5,276
HOST UK
7,659
Study Abroad
65,149
Cultural Groups
15,827
Awareness & Training
28,613
Outbound
1,960
**124,484 **		 Governance
Finance
costs
£
£
392
1,349
560
2,489
4,119
12,303
1,195
2,849
2,163
4,970
148
349
8,577
24,309		 Totals
£
7,017
10,708
81,571
19,871
35,746
**2,457 **
157,370

In addition to the changes in note 6 which affect the allocation between direct and support costs, there have been some changes in the composition of these categories to better reflect costs. Governance costs now include those related to the running of trustee board meetings and part of the Chief Executive’s employment costs.

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.3.23 31.3.22
£ £
Auditors' remuneration 3,540 3,340
Depreciation - owned assets 1,878 3,312
Hire of plant and machinery 1,258 3,856
Other operating leases 7,500 7,500

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

During the year ended 31 March 2023 1 trustee (2022 - nil) was directly reimbursed £222 for expenses incurred.

Page 25

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

10. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 31.3.23
£
157,668
10,555
8,432
176,655		 31.3.22
£
157,065
12,532
7,592
177,189

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


Direct charitable work
Administration		 31.3.23

5
1
6		 31.3.22
5
2
7

No employees received emoluments in excess of £60,000.

The total amount of employee benefits received by key management personnel is £47,500 (2022 - £45,500). The charity considers its key management personnel comprises the Chief Executive.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
23,259
Charitable activities
Homestays
329
HOST UK
12,237
Study Abroad
72,355
Cultural Groups
819
Awareness & Training
137,651
Outbound
1,547
Investment income
27,985
Total
276,182
EXPENDITURE ON
Charitable activities
Homestays
28,903
HOST UK
8,067
Study Abroad
116,536
Programme expenditure
-
Cultural Groups
42,171
Awareness & Training
162,415
Outbound
1,046
Total
359,138
NET INCOME/(EXPENDITURE)
(82,956)		 Restricted
Endowment
funds
fund
£
£
5,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000
-
-
-
2,000
-
-
-
-
-
-
-
-
-
-
-
2,000
-
3,000
-		 Total
funds
£
28,259
329
12,237
72,355
819
137,651
1,547
27,985
281,182
28,903
10,067
116,536
-
42,171
162,415
1,046
361,138
(79,956)

Page 26

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Unrestricted
funds
£
RECONCILIATION OF FUNDS
Total funds brought forward
549,212
TOTAL FUNDS CARRIED FORWARD
466,256
12.
TANGIBLE FIXED ASSETS
COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
13.
INVESTMENT PROPERTY
FAIR VALUE
At 1 April 2022
Revaluation
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
The investment property is freehold.
Fair value at 31 March 2023 is represented by:
Valuation in 2023
Cost		 Restricted
Endowment
funds
fund
£
£
8,148
25,000
11,148
25,000
Fixtures
and
Computer
fittings
equipment
£
£
17,605
25,831
-
900
17,605
26,731
14,716
25,024
1,114
764
15,830
25,788
1,775
943
2,889
807		 Total
funds
£
582,360
502,404
Totals
£
43,436
900
44,336
39,740
1,878
41,618
2,718
3,696
£
340,000
60,000
400,000
400,000
340,000
£
60,000
340,000
400,000		 Total
funds
£
582,360
502,404

Page 27

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

13. INVESTMENT PROPERTY - continued

The investment property was last subject to an independent professional valuation at 18 May 2023 and the trustees consider the valuation provided to be appropriate as at 31 March 2023. The valuation was undertaken by Ian Humphries B.Sc.(Est.Man.) FRICS. The methods and significant assumptions used to ascertain the fair value of £400,000 are as follows:

The valuation is at a 'Fair Value' defined as 'The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date'.

The price that would be achieved is based on the income generated by the investment, which at the valuation date was £27,185pa and with the expectation of a net return on investment of around 7%.

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23 31.3.22
£ £
Trade debtors 27,084 53,711
Other debtors 4,315 3,524
Accrued income 9,402 9,379
Prepayments 8,724 1,469
49,525 68,083

Included in other debtors is an amount of $5,325 (2022 $5,325) which is held as a deposit by the Federation EIL.

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 17)
Trade creditors
Social security and other taxes
Other creditors
Deferred income
Accrued expenses		 31.3.23
£
20,000
19,786
4,034
3,477
42,728
17,558
107,583		 31.3.22
£
-
12,564
5,191
484
6,153
13,083
37,475

Deferred Income

Balance as at 1 April
Released in the year
Deferrals in the year
Balance as at 31 March		 31.3.20
£
6,153
(6,153)
42,728
**42,728 **		 31.3.22
£
2,522
(2,522)
6,153
6,153

Income under contractual arrangements is deferred where it is subject to the performance of certain terms or conditions. Where these have not been met at the balance sheet date, the income is not recognised in the statement of financial activities.

Income from property rentals is deferred where this is demanded and received in advance of the period of let.

Page 28

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.23
£
Bank loans (see note 17)
86,667
17.
LOANS
An analysis of the maturity of loans is given below:
31.3.23
£
Amounts falling due within one year on demand:
Bank loans
20,000
Amounts falling due between two and five years:
Bank loans
86,667
The bank loan was taken out under the Governments Recovery Loan Scheme.
18.
LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.23
£
Within one year
772
Between one and five years
-
772
19.
SECURED DEBTS
The following secured debts are included within creditors:
31.3.23
£
Bank loans
**106,667 **		 31.3.22
£
-
31.3.22
£
-
-
31.3.22
£
1,030
772
1,802
31.3.22
£
-

The charity has provided a fixed and floating charge over its assets and undertakings, as security for its bank loan.

Page 29

EIL UK

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

20. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Property fund
Restricted funds
Victoria League in Scotland
Tanner Trust
QA Higher Education
Chevening Secretariat
Endowment funds
Marie Benson-Stott Scholarship
TOTAL FUNDS		 At 1.4.22
£
126,256
340,000
466,256
8,000
2,000
1,140
8
11,148
25,000
**502,404 **		 Net
movement
in funds
£
(92,091)
60,000
(32,091)
(6,542)
-
-
(8)
(6,550)
-
(38,641)		 At
31.3.23
£
34,165
400,000
434,165
1,458
2,000
1,140
-
4,598
25,000
463,763

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Property fund
Restricted funds
Victoria League in Scotland
Chevening Secretariat
TOTAL FUNDS		 Incoming
resources
£
380,943
-
380,943
-
-
-
380,943		 Resources
expended
£
(473,034)
-
(473,034)
(6,542)
(8)
(6,550)
(479,584)		 Gains and
Movement
losses
in funds
£
£
-
(92,091)
60,000
60,000
60,000
(32,091)
-
(6,542)
-
(8)
-
(6,550)
60,000
(38,641)

Page 30

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Property fund
Restricted funds
Victoria League in Scotland
Tanner Trust
QA Higher Education
Chevening Secretariat
Endowment funds
Marie Benson-Stott Scholarship
TOTAL FUNDS		 At 1.4.21
£
209,212
340,000
549,212
5,000
2,000
1,140
8
8,148
25,000
582,360		 Net
movement
in funds
£
(82,956)
-
(82,956)
3,000
-
-
-
3,000
-
(79,956)		 At
31.3.22
£
126,256
340,000
466,256
8,000
2,000
1,140
8
11,148
25,000
502,404

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Victoria League in Scotland
TOTAL FUNDS		 Incoming
resources
£
276,182
5,000
281,182		 Resources
Movement
expended
in funds
£
£
(359,138)
(82,956)
(2,000)
3,000
(361,138)
(79,956)

The balance on the unrestricted general fund has arisen from accumulated surpluses and is held for the general purposes of the charity. The fund is considered by the Trustees to be sufficient for the charity's needs.

The balance on the designated property fund arose from the transfer of the investment property following the closure of an associated trust and is being held or investment purposes to generate income.

The Marie Benson-Stott Scholarship fund has been established by way of a legacy granted to E I L, from which an income is to be generated. The income from this endowment is to be used to support the promotion of international living through homestays, for students at the University of Worcester.

Funding from the Victoria League Scotland is comprised of two grants, with the first being for online cultural exchanges. The second grant is for the promotion of Scottish culture and way of life to international students studying at British universities through the provision of bursaries for day visits and weekend stays with hosts.

The Tanner Trust fund is established to facilitate and support HOST UK volunteers and their integration into EIL UK.

Page 31

EIL UK

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

21. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £8,432 (2022 £7,592). £5,401 remains unpaid at 31 March 2023 (2022 £4,317), of which £3,951 is being held pending the provision of pension scheme details by a former employee (2022 £3,951).

22. CONTINGENT LIABILITIES

EIL UK contracts in advance for certain programmes. Should EIL UK be unable to fulfil those contracts, it could be liable to meet claims for breach of contract. The cost of any such claims is unquantifiable.

23. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

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