```
REGISTERED COMPANY NUMBER: 03636789 (England and Wales)
REGISTERED CHARITY NUMBER: 1074491
```
## **`REPORT OF THE TRUSTEES AND`**
## **`UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024`**
## **`FOR`**
## **`HMC PROJECTS IN CENTRAL AND EASTERN EUROPE`**
```
Bright Brown Limited
Chartered Accountants
Exchange House
St. Cross Lane
Newport
Isle of Wight
PO30 5BZ
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024`**
||**`Page`**||
|---|---|---|
|**`Reference and Administrative Details`**|`1`||
|**`Report of the Trustees`**|`2 to`|`6`|
|**`Independent Examiner's Report`**|`7`||
|**`Statement of Financial Activities`**|`8`||
|**`Balance Sheet`**|`9 to`|`10`|
|**`Notes to the Financial Statements`**|`11 to`|`15`|
|**`Detailed Statement of Financial Activities`**|`16 to`|`17`|
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2024`**
|**`TRUSTEES`**|`Mrs R C F Owens (chairperson)`|
|---|---|
||`D J Knapman`|
||`D N Morrison (resigned 9.11.23)`|
||`P M de Voil`|
||`A W McPhail`|
||`Mrs J Hopkinson`|
||`W M Phelan (resigned 9.11.23)`|
||`Ms J S Gandee`|
||`J F Vick`|
||`A C Jackson (resigned 17.5.24)`|
||`D A P King (appointed 19.3.24)`|
||`R Barrand (appointed 19.3.24)`|
|**`COMPANY SECRETARY AND ADMINISTRATOR`**|`Dr E J Wolstenholme`|
|**`EXECUTIVE`**|`Dr E J Wolstenholme (operational director)`|
||`Rev S Leyshon (deputy director and student`|
||`co-ordinator) (resigned 30.11.23)`|
||`Mrs G Currie (student co-ordinator) (appointed`|
||`1.12.23)`|
||`C Burrows (administrator)`|
|**`REGISTERED OFFICE`**|`12 The Point`|
||`Rockingham Road`|
||`Market Harborough`|
||`Leicestershire`|
||`LE16 7QU`|
|**`REGISTERED COMPANY NUMBER`**|`03636789 (England and Wales)`|
|**`REGISTERED CHARITY NUMBER`**|`1074491`|
|**`INDEPENDENT EXAMINER`**|`Bright Brown Limited`|
||`Chartered Accountants`|
||`Exchange House`|
||`St Cross Lane`|
||`Newport`|
||`Isle of Wight`|
||`PO30 5BZ`|
|**`BANKERS`**|`National Westminster Bank plc, Cambridge`|
||`Santander plc`|
||`Nationwide plc`|
||`Cambridge & Counties Bank`|
||`PayPal`|
```
Page 1
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024
```
```
The trustees who are also directorsof the charityfor the purposes of the CompaniesAct 2006, present their report with
the financialstatementsof the charityfor the yearended31 August2024.The trusteeshaveadoptedthe provisions of
AccountingandReportingbyCharities:StatementofRecommendedPracticeapplicabletocharitiespreparing their
accountsinaccordancewiththeFinancialReportingStandardapplicableintheUKandRepublicofIreland(FRS 102)
(effective 1 January 2019).
```
## **`OBJECTIVES AND ACTIVITIES`**
## **`Objectives and aims`**
```
TheobjectiveistoadvancetheeducationofforeignstudentsintheUnitedKingdom,especiallybutnot necessarily
exclusively,studentsfrom EasternEurope attendingmember schools of the Heads' Conference(HMC), the Girls' Schools
Association (GSA) and the Boarding Schools' Association (BSA).
```
## **`Public benefit`**
```
ThetrusteeshavecompliedwiththeirdutytohavedueregardtotheCharityCommission'spublicbenefit guidance
when exercising any powers or duties to which the guidance is relevant.
```
## **`ACHIEVEMENT AND PERFORMANCE`**
## **`Charitable activities`**
```
The scholarshipyear 2023 to 2024 saw the involvementof 47 schools in the scholarshipprogrammewith the placement
of a total of 74 scholars comprising46 full scholarsand 28 reduced fee (partial)scholars.This demonstratesthat there is
stilla firm interestin the scholarshipprogrammeson the partof schools,even in the faceof financialchallenges which
lie ahead.
```
```
Interviewingin the countriesby our executiveteam and our team of experiencedvolunteers,many of whom are former
headsordeputyheads,tookplaceforthefirsttimeinseveralyears.Itisfeltthatthisisamoresatisfactoryway to
conduct the interviews when numbers of candidatesjustify this, and when security considerationsallow. For this reason,
remoteinterviewingwasconductedfortheCroatianandLatviancandidatesduetolownumbersandthe Ukrainian
candidates for reasons of security, both for the interviewers and the candidates themselves.
```
```
Thetablebelowgivesthecomparativenumberofscholarshipsawardedin2022,2023bycountryandalso includes
those starting in September 2024.
```
||`2022-23`|`2022-23`|`2023-24`|`2023-24`|`2024-25`|`2024-25`|
|---|---|---|---|---|---|---|
||`FS`|`RF`|`FS`|`RF`|`FS`|`RF`|
|`Armenia`|`2`|`5`|`3`|`4`|`3`|`1`|
|`Bosnia Herzegovina`|`5`|`1`|`3`|`2`|`2`|`-`|
|`Bulgaria`|`3`|`3`|`2`|`4`|`2`|`3`|
|`Czech Republic`|`3`|`4`|`2`|`2`|`3`|`1`|
|`Georgia`|`5`|`6`|`5`|`6`|`4`|`7`|
|`Croatia`|`1`|`-`|`1`|`-`|`-`|`-`|
|`Latvia`|`1`|`-`|`-`|`-`|`-`|`-`|
|`Moldova`|`4`|`5`|`4`|`1`|`5`|`2`|
|`Montenegro`|`4`|`1`|`5`|`1`|`2`|`3`|
|`North Macedonia`|`6`|`2`|`2`|`1`|`3`|`-`|
|`Romania`|`4`|`2`|`3`|`1`|`1`|`-`|
|`Serbia`|`5`|`2`|`5`|`1`|`4`|`1`|
|`Slovakia`|`5`|`3`|`4`|`3`|`3`|`4`|
|`Ukraine`|`5`|`3`|`7`|`2`|`13`|`1`|
|`Total`|`53`|`37`|`46`|`28`|`45`|`23`|
```
Page 2
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024
```
```
The number of applicantsin almost all the countries shows that interest in the scholarshipprogramme remains high with
the exceptionof Latvia and Croatia where numbers are low, continuinga trend there in recent years. In fact, numbers in
thetwoBalticcountrieshavedeclinedtozeroinEstoniaandalmostsoinLatvia.Assuch,HMCPoperationsin these
countries have been suspended.
```
```
TheselectionofUkrainianscholarsthroughourinterviewswas,onceagain,supplementedbytakingafew additional
scholars through the scholarshiporganisationUkraine Global Scholars(UGS) which places Ukrainianscholars primarily in
schoolsintheUS.UGSoperatesitsownextendedselectionprocessandprovidesmentoringforits shortlisted
candidates.Theircriteriafor selectionalignscloselywiththoseof HMC Projectsandwe are satisfiedthatthe quality of
theirselectedcandidatesisassured.Wehaveasmallnumberofschoolswhichspecificallywishtotakea Ukrainian
scholar.
```
```
Thetotalnumberof schoolsofferingscholarshipsthroughourmainprogramme,eitherfullor reducedfee or both, for
the academicyear 2023-24stood at 47 and that for entry in 2024 has shown a slight reductionat 44. It had been hoped
that many of the new schools taking Ukrainianstudentsthroughour appeal in 2022, promoted by HMC, would continue
to takescholarsbut the subsequenttake-uphas been quitesmall.This is probablymore due to the financial challenges
many were preparing to face with the prospect of a change of government which is now a reality.
```
||`FS`|`RF`||
|---|---|---|---|
|`2021-22`|`38`|`15`||
|`2022-23`|`38`|`18`|`Main programme`|
|`2022-23`|`33`|`n/a`|`Ukrainian appeal`|
|`2023-24`|`40`|`16`||
|`2024-25`|`35`|`15`||
```
where FS and RF stand for full and reduced fee scholarships respectively.
```
```
Reduced fee scholarshipsare awarded to those very able applicants,who could not be awarded a full scholarship simply
duetolackofavailabilityofplacesandalsothoseforwhomannualparentalnetincomeexceedsourthreshold of
£30,000.Reducedfeescholarstypicallypaybetween20%and25%offullfees.Theplacementfee,paidbyschools in
respect of each reduced fee scholar,has remained the same as last year at £1,250and this is an essentialcomponent of
the income of the charity.
```
```
WiththediscontinuationoftheOrientationcourseinCambridgein2019andthenthedecisionthattolimitrisk the
supervisedhalf-termbreakswere not reinstatedpost-COVID,the trusteeshave been lookingfor some form of occasion
whichwouldenablescholarsattendingdifferentschoolstomeetupphysicallyandhavetheopportunityto network.
ThishasbeenachievedthroughtheestablishmentofannualScholars'Days:oneintheNorthandoneinthe South.
Thesehaveprovedtobeverypopularandsuccessfulandaregenerouslyhostedbytwoschools,normally taking
scholars.Thefirstofthesewasrunin2022/23atBarnardCastleSchool(BarnardCastle)andStSwithun's School
(Winchester).In2023/24thetwoscholars'dayswerekindlyhostedbyHarrogateLadies'College(Harrogate)and St
George's College (Weybridge). These are relatively low risk events.
```
```
InBulgaria,theCzechRepublic,Moldova,Slovakia,SerbiaandGeorgiawecontinuetooperatealongsidethe US
scholarshiporganisationASSISTforthepurposesofinterviewing.ThescholarshipexperienceofferedbyASSIST is
distinctlydifferentfromthatofHMCProjects,notleastbecausewithASSISTscholarsstudyintheUS forjustone year
andthenmustreturnhometocompletetheireducationtomatriculate.Thereareadvantagesinthis collaboration
which has been in place for many years.
```
```
Page 3
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024
```
```
WiththegenerousandexperiencedservicesofDavidHawkins(TheUniversityGuys)andhisteamofmentors, offered
pro bono,scholarscontinueto benefitfrom supplementaryadviceon universitychoices;for thesethe UK is simply not
anoption,purelyforreasonsofcostandthepaucityof,andcompetitionfor,scholarshipsorbursaries.Schools are
expertsinprovidingadviceonUKuniversitiesandmanycanprovidesomeguidanceonUSuniversities,however the
reality is that most of our scholars will go on to study in Europeanuniversities,many on courses delivered in English. For
most,returningtotheirhomecountrytostudyatuniversityisneitherasimplenorapopularrouteinto higher
education.TheonlyexceptiontothisisthegenerousprovisionforUkrainianstudentswho,undertheUK government
arrangement,arecurrentlyentitledtohomefeestatusandaccesstostudentfinance;thisislinkedtotheHomes for
Ukraineprogramme.InMarch,awebinarisrunjointlybytheDirectorofHMCProjectsandDavidHawkins, principally
forthebenefitofthoseinYr12,toexplainthechallengesofandopportunitiesforscholarssearchingfor suitable
universities.
```
## **`Financial developments`**
```
TheadministrationfeechargedtoscholarswhotookuptheirscholarshipattheirUKschoolinSeptember2023 was
publishedat £1,250for all fullscholars.However,thisfee was reducedto £1,000andwaivedentirelyfor scholars from
Ukraine.Forscholarsplacedin2024thefeewaspublishedat£1,000inourpublicityandinformation documents,
however this was reduced to £750 for all full scholars. For those applyingfor scholarshipsto start in 2025, the fee will be
publishedat£750totryandoffsetpartof theincreaseintheChildStudentvisafee andimmigrationhealth surcharge
imposedbytheHomeOffice.Tofundthisreduction,boththisyearandnext,HMCProjectswilldrawdownon its
reserves. Such a drawdown is possible for a number of years but the trustees are aware that it is importantto establish a
longer term, sustainable level of fees to enable the organisation to break even in the future.
```
```
Thecontinuedgenerosityofasmallnumberofalumnihasresultedinthereceiptoffurtherdonations,usuallyon a
monthlybasisthroughourPayPalaccount,andHMCProjectsisverygratefulforthese.Thetotalreceivedinto the
PayPalaccountfrom alumni during 2023-24was £1,486from which £45 was deductedin PayPalfees. Very few of these
donationsattract Gift Aid as the donors work outside the UK and are not UK taxpayers.All donationsare used to provide
additionalsupportfor our scholarson a discretionarybasisto allow them to benefitfrom opportunitiesat their schools
wherefamilyfinancialconstraintsmaynotallowthis.Inthiswaydonatedfundswillensurethatallourscholars can
maximisetheiropportunities.Someschoolsgenerouslyabsorbadditionalcostsincurredbyscholars,not explicitly
includedin the scholarshiparrangement,butothersare unableto do so andthereforethisadditionalfinancial support
through the alumni fund can help to level up.
```
```
Inadditiontothegiftsfromalumni,agenerousdonationof£2,500wasreceivedfromMClarksonWebbin October
2023tosupporttheUkrainianscholarsandtohelpoffsettheshortfallinincomeasaresultofwaiving the
administration fee in their case. This sum also qualifies for tax relief through Gift Aid.
```
```
Thetotalcostofinsuranceforpublicandprofessionalliabilityrosebyaround7%fromthepreviousyearandthe fee
paidin2023-24was£1,521:anincreaseof£101overthatpaidin2022-23.Thecoverhasremainedthesameas have
the declared risks.
```
## **`FINANCIAL REVIEW`**
## **`Financial position`**
```
ThereservesoftheTrusthaveincreasedandatthecloseofthisfinancialyear(2023-24)thereservesamounted to
£280,916 compared to £271,340 at the end of the previous financial year.
```
```
Incomingresourceswere £80,664(2023 - £94,821).Prepaidfees and other prepaidincome amountedto £23,257 (2023
- £46,505). Resources expended were £71,088 (2023 - £70,620). Net surplus for the year was £9,576 (2023 - £24,201).
```
```
Page 4
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024
```
## **`FINANCIAL REVIEW`**
## **`Reserves policy`**
```
Attheyearendthecharityholds£280,916(2023- £271,340)inreservesasunrestricted,andofthisfreereserves not
invested in fixed assets amount to £280,916 (2023 - £271,074).
```
```
Thepolicyofholdingasumofatleast50%oftheannualturnoverinreservehasbeenmaintained,indeed exceeded.
This contingencysum does not includethe fundsreceivedas donations.The distributionof all reservesacross accounts
with four differentbanks has generallyensured that deposits should not exceed the sum guaranteedunder the terms of
theFSAtowhichallthesebanksarebound.Thisdistributionofreservesinvarioussavingsaccountsandbonds has
provideda betterreturnin bankinterestthanin recentyearswith the recentrises in interestratespost-pandemic. The
currentsurplusnot only enables HMC Projectsto absorbany relativelyminor operationaldeficit arisingfrom the effects
ofinflationbutalsotoreducetheadministrationfeeforfullscholarstooffset,tosomedegree,theriseinthecost of
visas. With such economic uncertaintyand a new government,apparentlyless sympatheticto independenteducation, it
is onlyprudentto maintainan adequatesurplusin the eventof a significantreductionin the numberof places offered
by schools and the subsequent overall deficit which HMC Projects would incur.
```
## **`FUTURE PLANS`**
```
The HMC Projectsadministrationfee for all new full scholarswill be set at £750for 2025-26andhas been published at
as such in our promotional and guidance documents.
```
```
OuroperationinCroatiawillceasefor2025withtheverylownumbersofapplicantsinthiscountry.Inaddition, our
coordinatorinRomaniahaswithdrawntheservicesofhiscompanyTinedeNoi.Intheabsenceofanysuggestionof a
futurecoordinatorinthiscountry,HMCProjectsis currentlylookingfora replacementindividualor organisation. With
thediscontinuationofapresenceinthetwoBalticcountries,EstoniaandLatvia,thisreducesthenumberof countries
where we are active to 11. The search for a suitablecoordinatorin Albaniaremains ongoing.The new online application
systemdoeshowevermeanthatwe canacceptapplicationsfrom applicantsin appropriatecountrieswhere we do not
currently have a coordinator.
```
```
The online applicationsoftware has been a success both with coordinatorsand interviewers. Feedback from both groups
has suggested refinementsto be made. The system not only facilitatesgatheringassociateddocumentsbut also enables
personalised communications with applicants. This commercial software package has an annually recurring cost.
```
```
TherecentchangesinpersonnelontheExecutiveandtheprematureresignationof thenew DeputyDirectorhave left
HMCProjectswiththeprospectofrecruitingnotonlyanewDeputyDirectorbut,withthecurrentDirector having
expressedhis intentionto stepdownin July2025,the searchis on for a new Directoras well. Workis ongoingto draw
up appropriatelybindingcontracts,treatingall members of the Executiveas employeesof HMC Projects,and to ensure
thatallappropriatepoliciesandtermsandconditionsofemploymentareinplace.Thisprocesshas necessitated
professional support and advice which has incurred a cost.
```
```
Finally,afterdiscussionwiththetrustees,ithasbeenagreedthattheupperlimitonannualnetfamilyincome above
whichastudentisineligibletoapplyevenforareducedfeescholarshiphasbeenreducedfrom£80,000to£50,000 in
order the ensure that only families on modest to middle incomes are eligible to apply for a scholarship.This is most likely
to impact on families from those countries with higher levels of GDP per capita.
```
## **`STRUCTURE, GOVERNANCE AND MANAGEMENT`**
## **`Governing document`**
```
Thecharityiscontrolledbyitsmemorandumandarticlesofassociationandconstitutesalimitedcompany,limited by
guarantee, as defined by the Companies Act 2006.
```
```
ThecharitywasestablishedtotakeovertheactivitiesoftheHMCForeignStudentsFund,acharitabletrust,and the
assets and liabilities of that trust were transferred to the charity on 30 April 1999 by way of a donation.
```
```
Page 5
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024`**
## **`STRUCTURE, GOVERNANCE AND MANAGEMENT`**
## **`Key management remuneration`**
```
The charityreimbursedexpenses totalling£6,067(2023 - £3,988)in respect of grants and awards,orientation expenses,
executive expenses, interviewing expenses, insurance, publicity and software to 4 (2023 - 4) key management personnel.
```
```
In addition, consultancy fees were paid to key management personnel during the year, as follows:
Dr E J Wolstenholme £15,000 (2023 - £15,000)
```
```
S Leyshon £3,000 (2023 - £3,000)
G Currie £3,000 (2023 - £nil)
C Burrows £8,000 (2023 - £8,000)
```
```
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
```
```
.........................................................................
```
```
Mrs R C F Owens - Trustee
```
```
Page 6
```
```
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`Independent examiner's report to the trustees of HMC Projects in Central and Eastern Europe ('the Company')`**
```
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2024.
```
## **`Responsibilities and basis of report`**
```
As the charity'strustees of the Company (and also its directors for the purposes of company law) you are responsible for
the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
```
```
Havingsatisfiedmyselfthatthe accountsof the Companyare not requiredto be auditedunderPart16 of the 2006 Act
and are eligible for independentexamination,I report in respect of my examinationof your charity'saccountsas carried
outunderSection145oftheCharitiesAct2011('the2011Act').IncarryingoutmyexaminationIhavefollowed the
Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
```
## **`Independent examiner's statement`**
```
Ihavecompletedmyexamination.Iconfirmthatnomattershavecometomyattentioninconnectionwith the
examination giving me cause to believe:
```
`1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or`
`2. the accounts do not accord with those records; or`
`3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or`
`4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).`
```
Ihavenoconcernsandhavecomeacrossnoothermattersinconnectionwiththeexaminationtowhich attention
should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
```
```
G Kelly
```
```
Bright Brown Limited
Chartered Accountants
Isle of Wight
```
```
Date: .............................................
```
```
Page 7
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024`**
|`2024`
`Unrestricted`
`fund`
`Notes`
`£`
**`INCOME AND ENDOWMENTS FROM`**
`Donations and legacies`
`3,987`
**`Charitable activities`**
`Scholar selection and placement`
`70,255`
`Investment income`
`2`
`6,422`
**`Total`**
`80,664`
**`EXPENDITURE ON`**
**`Charitable activities`**
`Scholar selection and placement`
`71,088`
**`NET INCOME`**
`9,576`
**`RECONCILIATION OF FUNDS`**
`Total funds brought forward`
`271,340`
**`TOTAL FUNDS CARRIED FORWARD`**
`280,916`|`2023`
`Total`
`funds`
`£`
`1,524`
`91,756`
`1,541`|
|---|---|
||`94,821`|
||`70,620`|
||`24,201`
`247,139`|
||`271,340`|
```
The notes form part of these financial statements
```
```
Page 8
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE (REGISTERED NUMBER: 03636789)
```
## **`BALANCE SHEET 31 AUGUST 2024`**
|`2024`
`Unrestricted`
`fund`
`Notes`
`£`
**`FIXED ASSETS`**
`Tangible assets`
`7`
`-`
**`CURRENT ASSETS`**
`Debtors`
`8`
`5,441`
`Cash at bank`
`300,910`
`306,351`
**`CREDITORS`**
`Amounts falling due within one year`
`9`
`(25,435)`
**`NET CURRENT ASSETS`**
`280,916`
**`TOTAL ASSETS LESS CURRENT LIABILITIES`**
`280,916`
**`NET ASSETS`**
`280,916`
**`FUNDS`**
`10`
`Unrestricted funds`
`280,916`
**`TOTAL FUNDS`**
`280,916`|`2023`
`Total`
`funds`
`£`
`266`
`5,452`
`314,047`|
|---|---|
||`319,499`
`(48,425)`|
||`271,074`|
||`271,340`|
||`271,340`|
||`271,340`|
||`271,340`|
```
The charitablecompanyis entitledto exemptionfrom auditunderSection477of the CompaniesAct2006for the year
ended 31 August 2024.
```
```
Themembershavenotrequiredthecompanytoobtainanauditofitsfinancialstatementsfortheyear ended
31 August 2024 in accordance with Section 476 of the Companies Act 2006.
```
```
The trustees acknowledge their responsibilities for
```
- `(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and`
- `(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.`
```
The notes form part of these financial statements
```
```
continued...
```
```
Page 9
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE (REGISTERED NUMBER: 03636789)
```
## **`BALANCE SHEET - continued 31 AUGUST 2024`**
```
Thesefinancialstatementshavebeenpreparedinaccordancewiththeprovisionsapplicabletocharitable companies
subject to the small companies regime.
```
```
ThefinancialstatementswereapprovedbytheBoardofTrusteesandauthorisedforissue on
............................................. and were signed on its behalf by:
```
```
.............................................
R C F Owens - Trustee
```
```
The notes form part of these financial statements
```
```
Page 10
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
```
## **`1. ACCOUNTING POLICIES`**
## **`Basis of preparing the financial statements`**
```
Thefinancialstatementsofthecharitablecompany,whichisapublicbenefitentityunderFRS102,have been
preparedin accordancewith the CharitiesSORP(FRS 102)'AccountingandReportingby Charities:Statement of
RecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththe Financial
ReportingStandardapplicableintheUKandRepublicofIreland(FRS102)(effective1 January2019)', Financial
ReportingStandard102'TheFinancialReportingStandardapplicablein theUK andRepublicof Ireland'and the
Companies Act 2006. The financial statements have been prepared under the historical cost convention.
```
## **`Income`**
```
All incomeis recognisedin the Statementof FinancialActivitiesonce the charityhas entitlementto the funds, it
is probable that the income will be received and the amount can be measured reliably.
```
```
Incomerecievedinrelationtostudentplacementsisdeferredwhereitrelatestoatermorperiodtaking place
after the year end.
```
## **`Expenditure`**
```
Liabilitiesarerecognisedasexpenditureassoonasthereisalegalorconstructiveobligationcommitting the
charityto that expenditure,it is probablethat a transferof economicbenefitswill be requiredin settlement and
the amount of the obligationcan be measured reliably. Expenditureis accountedfor on an accruals basis and has
beenclassifiedunderheadingsthataggregateallcostsrelatedtothecategory.Wherecostscannotbe directly
attributedtoparticularheadingstheyhavebeenallocatedtoactivitiesonabasisconsistentwiththeuse of
resources.
```
## **`Tangible fixed assets`**
```
Depreciationisprovidedatthefollowingannualratesinordertowriteoffeachassetoveritsestimated useful
life.
```
```
Fixtures and fittings- Straight line over 5 years
Computer equipment- Straight line over 3 years
```
## **`Taxation`**
```
The charity is exempt from corporation tax on its charitable activities.
```
## **`Fund accounting`**
```
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
```
```
Restricted funds can only be used for particularrestricted purposes within the objects of the charity. Restrictions
arise when specified by the donor or when funds are raised for particular restricted purposes.
```
```
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
```
```
continued...
```
```
Page 11
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024`**
## **`2. INVESTMENT INCOME`**
|**`INVESTMENT INCOME`**|||
|---|---|---|
||`2024`|`2023`|
||`£`|`£`|
|`Deposit account interest`|`6,422`|`1,541`|
## **`3. NET INCOME/(EXPENDITURE)`**
```
Net income/(expenditure) is stated after charging/(crediting):
```
||`2024`|`2023`|
|---|---|---|
||`£`|`£`|
|`Independent examiners' fee`|`1,860`|`1,770`|
|`Depreciation - owned assets`|`266`|`533`|
## **`4. TRUSTEES' REMUNERATION AND BENEFITS`**
```
Therewerenotrustees'remunerationorotherbenefitsfortheyearended31August2024norforthe year
ended 31 August 2023.
```
## **`Trustees' expenses`**
```
The charity incurred expenses of £428 (2023 - £387) in respect of trustees' liability insurance.
```
```
In addition,the charityreimbursed expenses totalling£4,081 in respect of orientationexpenses and interviewing
expenses (2023 - £6,861 in respect of interview costs) to 6 (2023 - 5) trustees.
```
## **`5. STAFF COSTS`**
```
The average monthly number of employees during the year was as follows:
```
||`2022`|`2021`|
|---|---|---|
||`-`|`-`|
||||
## **`6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES`**
|**`COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES`**||
|---|---|
||`Unrestricted`|
||`fund`|
||`£`|
|**`INCOME AND ENDOWMENTS FROM`**||
|`Donations and legacies`|`1,524`|
|**`Charitable activities`**||
|`Scholar selection and placement`|`91,756`|
|`Investment income`|`1,541`|
|**`Total`**|`94,821`|
## **`EXPENDITURE ON`**
```
continued...
```
```
Page 12
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024`**
## **`6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued`**
||`Unrestricted`|
|---|---|
||`fund`|
||`£`|
|**`Charitable activities`**||
|`Scholar selection and placement`|`70,620`|
|**`NET INCOME`**|`24,201`|
|**`RECONCILIATION OF FUNDS`**||
|`Total funds brought forward`|`247,139`|
|**`TOTAL FUNDS CARRIED FORWARD`**|`271,340`|
## **`7. TANGIBLE FIXED ASSETS`**
|`Fixtures`
`and`
`Computer`
`fittings`
`equipment`
`£`
`£`
**`COST`**
`At 1 September 2023 and 31 August 2024`
`1,728`
`1,856`
**`DEPRECIATION`**
`At 1 September 2023`
`1,728`
`1,590`
`Charge for year`
`-`
`266`
`At 31 August 2024`
`1,728`
`1,856`
**`NET BOOK VALUE`**
`At 31 August 2024`
`-`
`-`
`At 31 August 2023`
`-`
`266`|`Totals`
`£`
`3,584`|
|---|---|
||`3,318`
`266`|
||`3,584`|
||`-`|
||`266`|
```
continued...
```
```
Page 13
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024`**
## **`8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
|`Prepayments`
**`9.`**
**`CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
`Other creditors`
`Accrued income`
`Accrued expenses`
**`10.`**
**`MOVEMENT IN FUNDS`**
**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**
`Net movement in funds, included in the above are as follows:`
**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**|`At 1.9.23`
`£`
`271,340`
`271,340`
`Incoming`
`resources`
`£`
`80,664`
`80,664`|`2024`
`2023`
`£`
`£`
`5,441`
`5,452`
`2024`
`2023`
`£`
`£`
`318`
`-`
`23,257`
`46,505`
`1,860`
`1,920`
`25,435`
`48,425`
`Net`
`movement`
`At`
`in funds`
`31.8.24`
`£`
`£`
`9,576`
`280,916`
`9,576`
`280,916`
`Resources`
`Movement`
`expended`
`in funds`
`£`
`£`
`(71,088)`
`9,576`
`(71,088)`
`9,576`|
|---|---|---|
```
continued...
```
```
Page 14
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024`**
## **`10. MOVEMENT IN FUNDS - continued`**
## **`Comparatives for movement in funds`**
|**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**|`At 1.9.22`
`£`
`247,139`
`247,139`|`Net`
`movement`
`in funds`
`£`
`24,201`
`24,201`|`At`
`31.8.23`
`£`
`271,340`|
|---|---|---|---|
||||`271,340`|
```
Comparative net movement in funds, included in the above are as follows:
```
||`Incoming`|`Resources`|`Movement`|
|---|---|---|---|
||`resources`|`expended`|`in funds`|
||`£`|`£`|`£`|
|**`Unrestricted funds`**||||
|`General fund`|`94,821`|`(70,620)`|`24,201`|
|**`TOTAL FUNDS`**|`94,821`|`(70,620)`|`24,201`|
## **`11. RELATED PARTY DISCLOSURES`**
```
There were no related party transactions for the year ended 31 August 2024.
```
```
Page 15
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024`**
||`2024`|`2023`|
|---|---|---|
||`£`|`£`|
|**`INCOME AND ENDOWMENTS`**|||
|**`Donations and legacies`**|||
|`Donations`|`3,987`|`1,524`|
|**`Investment income`**|||
|`Deposit account interest`|`6,422`|`1,541`|
|**`Charitable activities`**|||
|`Students (Bosnia)`|`3,000`|`5,000`|
|`Students (Bulgaria)`|`2,000`|`3,000`|
|`Students (Croatia)`|`1,000`|`1,000`|
|`Students (Czech Republic)`|`2,000`|`3,000`|
|`Students (Georgia)`|`5,000`|`5,006`|
|`Students (Moldova)`|`4,005`|`4,000`|
|`Students (Montenegro)`|`5,000`|`4,000`|
|`Students (Romania)`|`3,000`|`4,000`|
|`Students (Serbia)`|`5,000`|`5,000`|
|`Students (Slovakia)`|`4,000`|`5,000`|
|`Students (Armenia)`|`3,000`|`2,000`|
|`Students (North Macedonia)`|`2,000`|`6,000`|
|`Students (Latvia)`|`-`|`1,000`|
|`Schools (students)`|`31,250`|`43,750`|
||`70,255`|`91,756`|
|**`Total incoming resources`**|`80,664`|`94,821`|
|**`EXPENDITURE`**|||
|**`Charitable activities`**|||
|`Insurance`|`1,506`|`1,400`|
|`Executive expenses`|`1,056`|`1,533`|
|`Grants and awards`|`1,378`|`1,075`|
|`Orientation expenses`|`745`|`1,502`|
|`Interviewing expenses`|`10,390`|`10,030`|
|`Working Group expenses`|`-`|`10`|
|`Agents fees`|`16,500`|`18,750`|
|`Administration fees`|`29,000`|`30,000`|
|`Bank charges`|`258`|`337`|
|`Publicity`|`607`|`-`|
|`Software`|`6,202`|`3,681`|
|`Carried forward`|`67,642`|`68,318`|
```
This page does not form part of the statutory financial statements
```
```
Page 16
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024`**
||`2024`|`2023`|
|---|---|---|
||`£`|`£`|
|**`Charitable activities`**|||
|`Brought forward`|`67,642`|`68,318`|
|`Computer equipment`|`266`|`532`|
||`67,908`|`68,850`|
|**`Support costs`**|||
|**`Governance costs`**|||
|`Independent examiners' remuneration`|`1,860`|`1,770`|
|`Legal fees`|`1,320`|`-`|
||`3,180`|`1,770`|
|`Total resources expended`|`71,088`|`70,620`|
|**`Net income`**|`9,576`|`24,201`|
```
This page does not form part of the statutory financial statements
```
```
Page 17
```