```
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 2025`**
```
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 2025`**
||**`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 2025`**
|**`TRUSTEES`**|`Mrs R C F Owens (chairperson)`|
|---|---|
||`D J Knapman`|
||`P M de Voil`|
||`A W McPhail`|
||`Mrs J Hopkinson`|
||`Ms J S Gandee`|
||`J F Vick`|
||`D A P King`|
||`R Barrand`|
|**`COMPANY SECRETARY`**|`Dr E J Wolstenholme`|
||`B A M Vessey (appointed 1.7.25)`|
|**`EXECUTIVE`**|`Dr E J Wolstenholme (operational director and`|
||`administrator) (resigned 30.6.25)`|
||`B Vessey (operational director) (appointed 1.7.25)`|
||`C Burrows (deputy director and treasurer) (appointed`|
||`1.7.25)`|
||`Mrs G Currie (student co-ordinator) (post phased out`|
||`31.8.25)`|
|**`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`|
||`PayPal`|
```
Page 1
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025`**
```
The trustees who are also directorsof the charityfor the purposesof the CompaniesAct 2006, present their report with
the financialstatementsof the charityfor the year ended31 August2025.The trusteeshave adoptedthe provisions of
AccountingandReportingbyCharities:StatementofRecommendedPracticeapplicabletocharitiespreparing their
accountsinaccordancewiththeFinancialReportingStandardapplicableintheUKandRepublicofIreland(FRS 102)
(effective 1 January 2019).
```
## **`OBJECTIVES AND ACTIVITIES`**
## **`Objectives and aims`**
```
TheobjectiveistoadvancetheeducationofforeignstudentsintheUnitedKingdom,especiallybutnot necessarily
exclusively,studentsfromEasternEuropeattendingmemberschoolsoftheHeads'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 2024 to 2025 saw the involvementof 47 schools in the scholarshipprogrammewith the placement
of a totalof 68 scholarscomprising45 fullscholarsand23 reducedfee (partial)scholars.This demonstratedthat there
wasstillaninterestinthescholarshipprogrammesonthepartofschools,eveninthefaceoffinancialchallenges, at
that point, seemed likely to lie ahead.
```
```
Inmostcases,thescholarshipinterviewswereconductedincountrybymembersofourexecutiveteam and
experiencedvolunteers,many of whom are former heads or deputyheads. This is the preferredmethod when numbers
ofcandidatesjustifythis,andwhensecurityconsiderationsallow.TheadoptionofaHMCProjectsapplication portal
alloweddirectapplicationsfromcountrieswithouta localcoordinatorandtheseinterviewswere conducted remotely,
aswherethoseoftheUkrainiancandidatesforreasonsofsecurity,bothfortheinterviewersandthe candidates
themselves.
```
```
Page 2
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025`**
```
Thetablebelowgivesthecomparativenumberofscholarshipsawardedin2023,2024bycountryandincludes those
starting in September 2025.
```
||`2023-24`|`2023-24`|`2024-25`|`2024-25`||`2025-26`|
|---|---|---|---|---|---|---|
||`FS`|`RF`|`FS`|`RF`|`FS`|`RF`|
|`Alania`|`-`|`-`|`-`|`-`|`1`|`-`|
|`Armenia`|`3`|`4`|`3`|`1`|`2`|`2`|
|`Bosnia Herzegovina`|`3`|`2`|`2`|`-`|`-`|`1`|
|`Bulgaria`|`2`|`4`|`2`|`3`|`2`|`1`|
|`Czech Republic`|`2`|`2`|`3`|`1`|`1`|`1`|
|`Georgia`|`5`|`6`|`4`|`7`|`7`|`6`|
|`Croatia`|`1`|`-`|`-`|`-`|`-`|`-`|
|`Latvia`|`-`|`-`|`-`|`-`|`-`|`-`|
|`Moldova`|`4`|`1`|`5`|`2`|`3`|`5`|
|`Montenegro`|`5`|`1`|`2`|`3`|`4`|`2`|
|`North Macedonia`|`2`|`1`|`3`|`-`|`3`|`1`|
|`Romania`|`3`|`1`|`1`|`-`|`-`|`-`|
|`Serbia`|`5`|`1`|`4`|`1`|`5`|`1`|
|`Slovakia`|`4`|`3`|`3`|`4`|`2`|`6`|
|`Ukraine`|`7`|`2`|`13`|`1`|`11`|`2`|
|`Total`|`46`|`28`|`45`|`23`|`41`|`28`|
```
TheselectionofUkrainianscholarsthroughourinterviewswas,onceagain,supplementedbytakingafew additional
scholarsthroughthescholarshiporganisationUkraineGlobalScholars(UGS)whichplacesUkrainianscholars primarily
inschoolsintheUS.UGSoperatesitsownextendedselectionprocessandprovidesmentoringforits shortlisted
candidates.Theircriteriafor selectionalignscloselywiththoseof HMC Projectsandwe are satisfiedthatthe quality of
their selected candidates is assured.
```
```
The totalnumberof schoolsofferingscholarshipsthroughourmainprogramme,eitherfullor reducedfee or both, for
the academicyear 2024-25stoodat 44 and that for entry in 2025 has shown a significantreductionat 31. Undoubtedly
thisis,atleastinpart,duetothefinancialchallengesfacedbyindependentschoolsresultingfromthe policy
environment established by the incoming government.
```
||`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`||
|`2025-26`|`27`|`12`||
```
where FS and RF stand for full and reduced fee scholarships respectively.
```
```
Reducedfeescholarshipsareawardedtothoseveryableapplicants,whocouldnotbeawardedafull scholarship
simplyduetolackofavailabilityof placesandalsothoseforwhomannualparentalnetincomeexceedsour threshold
of £30,000.Reducedfee scholarstypicallypay between15% and 25% of full fees. The placementfee, paidby schools in
respect of each reducedfee scholar,has remainedthe same as last year at £1,250 and this is an essentialcomponent of
the income of the charity.
```
```
Page 3
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
## **`REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025`**
```
WiththediscontinuationoftheOrientationcourseinCambridgein2019andthenthedecisionthattolimitrisk the
supervisedhalf-termbreakswere not reinstatedpost-COVID,the trusteeshave been lookingfor some form of occasion
which wouldenablescholarsattendingdifferentschoolsto meet up. This has been achievedthroughthe establishment
ofannualScholars'Days:oneintheNorthandoneintheSouth.Thesehaveprovedtobepopularandsuccessful and
are generouslyhostedby two schools,normallytakingscholars.The first of these was run in 2022/23at Barnard Castle
School(BarnardCastle)andSt Swithun'sSchool(Winchester).In 2024/25the two scholars'dayswere kindlyhosted by
Durham Cathedral School (Durham) and Roedean School (Brighton). These are relatively low risk events.
```
```
InBulgaria,theCzechRepublic,Moldova,Slovakia,SerbiaandGeorgiawecontinuetooperatealongsidethe US
scholarshiporganisationASSISTforthepurposesofinterviewing.ThescholarshipexperienceofferedbyASSIST is
distinctlydifferentfromthatof HMCProjects,notleastbecausewithASSISTscholarsstudyintheUS forjustone year
andthenmustreturnhometocompletetheireducationtomatriculate.Thereareadvantagesinthis collaboration
which has been in place for many years.
```
```
WiththegenerousandexperiencedservicesofDavidHawkins(TheUniversityGuys)andhisteamofmentors, offered
probono,scholarscontinueto benefitfrom supplementaryadviceon universitychoices;for these the UK is simply not
anoption,purelyforreasonsofcostandthepaucityof,andcompetitionfor,scholarshipsorbursaries.Schools are
expertsinprovidingadviceonUKuniversitiesandmanycanprovidesomeguidanceonUSuniversities,however the
realityisthatmostofourscholarswillgoontostudyinEuropeanuniversities,manyoncoursesdeliveredin English.
Formost,returningtotheirhomecountrytostudyatuniversityisneitherasimplenorapopularrouteinto higher
education.InMarch,a webinarwasrunjointlybytheDirectorofHMCProjectsandDavidHawkins,principallyfor the
benefitofthoseinYear12,toexplainthechallengesofandopportunitiesforscholarssearchingfor suitable
universities.WiththeintroductionofascholarInstagramsite,wearenowaugmentingthisbysignpostingscholars to
European (and other) universities offering courses delivered in English.
```
## **`Financial developments`**
```
TheadministrationfeechargedtoscholarswhotookuptheirscholarshipattheirUKschoolinSeptember2023 was
publishedat £1,250for all fullscholars.However,thisfee was reducedto £1,000andwaivedentirelyfor scholars from
Ukraine.Forscholarsplacedin2024thefeewaspublishedat£1,000inourpublicityandinformation documents,
howeverthiswas reducedto £750forallfullscholars.Forthoseapplyingforscholarshipsto startin 2025,the fee was
setat£750totryandoffsetpartoftheincreaseintheChildStudentvisafeeandimmigrationhealth surcharge
imposedby the Home Office. To fund this reduction,both this year and next, HMC Projectswill for a perioddraw down
on its reserves.
```
```
Thecontinuedgenerosityofasmallnumberofalumnihasresultedinthereceiptoffurtherdonations,usuallyon a
monthlybasisthroughourPayPalaccount,andHMCProjectsisverygratefulforthese.Thetotalreceivedinto the
PayPalaccountfrom alumniduring2024-25was £1,650 from which £47 was deductedin PayPalfees. Very few of these
donationsattractGiftAidasthedonorsworkoutsidetheUKandarenotUKtaxpayers.Alldonationsareused to
provideadditionalsupportfor our scholarson a discretionarybasis to allow them to benefitfrom opportunitiesat their
schoolswhere family financialconstraintsmay not allow this. In this way donatedfunds will ensure that all our scholars
canmaximisetheiropportunities.Someschoolsgenerouslyabsorbadditionalcostsincurredbyscholars,not explicitly
includedin the scholarshiparrangement,butothersare unableto do so andthereforethisadditionalfinancial support
through the alumni fund can help to level up.
```
```
In additionto the giftsfrom alumni,a generousdonationof £2,500was receivedfrom M ClarksonWebbin September
2024tosupporttheUkrainianscholarsandtohelpoffsettheshortfallinincomeasaresultofwaiving the
administration fee for some students. This sum also qualifies for tax relief through Gift Aid.
```
```
The totalcost of insurancefor publicand professionalliabilityrose by just under3% from the previousyear and the fee
paid in 2024-25 was £1,564: an increase of £43 over that paid in 2023-24.The cover has remainedthe same as have the
declared risks.
```
```
Page 4
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2025
```
## **`ACHIEVEMENT AND PERFORMANCE`**
```
WiththeappointmentofanewDirectorinJuly2025,HMCProjectshavebothre-structuredtheExecutiveteam to
consistofajustaDirectorandDeputyDirector;andtransitionedtoaremunerationmodelbasedonemployment as
opposedtopaymentofanhonorariumtoself-employedconsultants.Thelatterchangebetterreflectsthe modus
operandiofHMCProjects,butdoescomewithadditionalcostsintermsofrunningapayroll,incometaxand NIC
payments and pension payments.
```
## **`FINANCIAL REVIEW`**
## **`Financial position`**
```
ThereservesoftheTrusthavedecreasedandatthecloseofthisfinancialyear(2024-25)thereservesamounted to
£274,936 compared to £280,916 at the end of the previous financial year.
```
```
Incomingresourceswere £66,897(2024 - £80,664).Prepaidfees and other prepaidincome amountedto £25,994 (2024
-£23,257).Resourcesexpendedwere£72,877(2024-£71,088).Netdeficitfortheyearwas£5,980(2024- £9,576
surplus).
```
## **`Reserves policy`**
```
Attheyearendthecharityholds£274,936(2024- £280,916)inreservesasunrestricted,andofthisfreereserves not
invested in fixed assets amount to £274,936 (2024 - £280,916).
```
```
Thepolicyofholdingasumofatleast50%oftheannualturnoverinreservehasbeenmaintained,indeed exceeded.
Thiscontingencysumdoesnotincludethefundsreceivedasdonations.FollowingtheclosureoftheCambridge &
Countiesaccount,thedistributionofallreservesissuchthatthedepositintheNatWestexceedsthesum guaranteed
underthetermsoftheFSAtowhichallthesebanksarebound.Thishasbeenjudgedtobea lowriskintheshort run
butisamattertobeaddressedin2025-26.Thisdistributionofreservesinvarioussavingsaccountsandbonds has
providedabetterreturninbankinterestthaninearlieryearswithincreasesininterestratespost-pandemic, though
thishasnowbeguntoreverse.Asstatedearlier,HMCProjectsisintheprocessofaphasedreductionin reserves,
havingreducedtheadministrationfeeforfullscholarstooffset,tosomedegree,theriseinthecostof visas.
Nevertheless,witheconomicuncertaintyandaUKgovernmentlesssympathetictoindependenteducation,itis only
prudenttomaintainanadequatelevelofreservesintheeventofasignificantreductioninthenumberof places
offered by schools.
```
## **`FUTURE PLANS`**
```
The HMC Projectsadministrationfee for all new fullscholarswill be set at £750 for 2025-26andhas been published at
as such in our promotional and guidance documents.
```
```
Groundworkundertakenduring2024-25meansthatfor2025-26wearepleasedtohavere-establisha country
coordinatorin Romaniaand for the first time will operatein Albania.The new onlineapplicationsystem does however
mean that we can accept applicationsfrom applicantsin appropriatecountries(e.g. Croatia)where we do not currently
have a coordinator.
```
```
Theonlineapplicationsoftwarehasbeenasuccessbothwithcoordinatorsandinterviewers.Thesystemnot only
facilitatesgatheringassociateddocumentsbutalsoenablespersonalisedcommunicationswithapplicants. This
commercial software package has an annually recurring cost.
```
```
Finally,after discussionwith the trustees,it was agreedthatfrom 2024-25the upperlimiton annualnet family income
abovewhichastudentisineligibletoapplyevenforareducedfeescholarshiphasbeenreducedfrom£80,000 to
£50,000inordertheensurethatonlyfamiliesonmodesttomiddleincomesareeligibletoapplyfora scholarship.
Alongsidethischange,HMCProjectsnowasksparentstosupplysupportingevidencetobackthestatement provided
via the Financial Declaration.
```
```
Page 5
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE
```
```
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2025
```
## **`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.
```
## **`Key management remuneration`**
```
The charityreimbursedexpenses totalling£4,625 (2024 - £6,067) in respect of grants and awards,orientation expenses,
executive expenses, interviewing expenses, publicity and software to 4 (2024 - 4) key management personnel.
```
```
In addition, consultancy fees were paid to key management personnel during the year, as follows:
Dr E J Wolstenholme £12,500 (2024 - £15,000)
```
```
S Leyshon £nil (2024 - £3,000)
C Burrows £6,666 (2024 - £8,000)
G Currie £2,000 (2024 - £3,000)
```
```
From 1 July2025the Executive(DirectorandDeputyDirector)were remuneratedas employees.The totalsum for that
period in salary, NI and NEST contributions amounted to £5,299.
```
```
Approved by order of the board of trustees on 7 November 2025 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 2025.
```
## **`Responsibilities and basis of report`**
```
Asthecharity'strusteesoftheCompany(andalsoitsdirectorsforthepurposesofcompanylaw)youare responsible
for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
```
```
Havingsatisfiedmyself thatthe accountsof the Companyare not requiredto be auditedunderPart 16 of the 2006 Act
and are eligiblefor 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 2025`**
|`2025`
`Unrestricted`
`fund`
`Notes`
`£`
**`INCOME AND ENDOWMENTS FROM`**
`Donations and legacies`
`5,781`
**`Charitable activities`**
`Scholar selection and placement`
`52,831`
`Investment income`
`2`
`8,285`
**`Total`**
`66,897`
**`EXPENDITURE ON`**
**`Charitable activities`**
`Scholar selection and placement`
`72,877`
**`NET INCOME/(EXPENDITURE)`**
`(5,980)`
**`RECONCILIATION OF FUNDS`**
`Total funds brought forward`
`280,916`
**`TOTAL FUNDS CARRIED FORWARD`**
`274,936`|`2024`
`Total`
`funds`
`£`
`3,987`
`70,255`
`6,422`|
|---|---|
||`80,664`|
||`71,088`|
||`9,576`
`271,340`|
||`280,916`|
```
The notes form part of these financial statements
```
```
Page 8
```
```
HMC PROJECTS IN CENTRAL AND EASTERN
EUROPE (REGISTERED NUMBER: 03636789)
```
## **`BALANCE SHEET 31 AUGUST 2025`**
|`2025`
`Unrestricted`
`fund`
`Notes`
`£`
**`CURRENT ASSETS`**
`Debtors`
`8`
`6,365`
`Cash at bank`
`301,138`
`307,503`
**`CREDITORS`**
`Amounts falling due within one year`
`9`
`(32,567)`
**`NET CURRENT ASSETS`**
`274,936`
**`TOTAL ASSETS LESS CURRENT LIABILITIES`**
`274,936`
**`NET ASSETS`**
`274,936`
**`FUNDS`**
`10`
`Unrestricted funds`
`274,936`
**`TOTAL FUNDS`**
`274,936`|`2024`
`Total`
`funds`
`£`
`5,441`
`300,910`
`306,351`
`(25,435)`
`280,916`
`280,916`
`280,916`
`280,916`
`280,916`|
|---|---|
```
The charitablecompanyis entitledto exemptionfrom auditunderSection477 of the CompaniesAct 2006for the year
ended 31 August 2025.
```
```
Themembershavenotrequiredthecompanytoobtainanauditofitsfinancialstatementsfortheyear ended
31 August 2025 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 2025`**
```
Thesefinancialstatementshavebeenpreparedinaccordancewiththeprovisionsapplicabletocharitable companies
subject to the small companies regime.
```
```
ThefinancialstatementswereapprovedbytheBoardofTrusteesandauthorisedforissueon7November2025 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 2025
```
## **`1. ACCOUNTING POLICIES`**
## **`Basis of preparing the financial statements`**
```
Thefinancialstatementsofthecharitablecompany,whichisapublicbenefitentityunderFRS102,have been
preparedin accordancewith the CharitiesSORP (FRS 102) 'Accountingand Reportingby Charities:Statement of
RecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththe Financial
ReportingStandardapplicableintheUK andRepublicof Ireland(FRS102)(effective1 January2019)', Financial
ReportingStandard102 'The FinancialReportingStandardapplicablein the UK 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.
```
```
Incomerecievedinrelationtostudentplacementsis deferredwhereitrelatestoa termorperiodtaking place
after the year end.
```
## **`Expenditure`**
```
Liabilitiesarerecognisedasexpenditureassoonasthereisalegalorconstructiveobligationcommitting the
charityto that expenditure,it is probablethat a transferof economicbenefitswill be requiredin settlement and
theamountoftheobligationcanbemeasuredreliably.Expenditureisaccountedforonanaccrualsbasis and
hasbeenclassifiedunderheadingsthataggregateallcostsrelatedtothecategory.Wherecostscannot be
directlyattributedtoparticularheadingstheyhavebeenallocatedtoactivitiesonabasisconsistentwith the
use of resources.
```
## **`Tangible fixed assets`**
```
Depreciationis providedatthefollowingannualratesinordertowriteoffeachassetoveritsestimated 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.
```
```
Restrictedfundscanonlybeusedforparticularrestrictedpurposeswithintheobjectsofthe 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.
```
## **`Pension costs and other post-retirement benefits`**
```
Thecharitablecompanyoperatesadefinedcontributionpensionscheme.Contributionspayableto the
charitablecompany'spensionscheme are chargedto the Statementof FinancialActivitiesin the periodto which
they relate.
```
```
continued...
```
```
Page 11
```
```
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```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025`**
## **`2. INVESTMENT INCOME`**
|**`INVESTMENT INCOME`**|||
|---|---|---|
||`2025`|`2024`|
||`£`|`£`|
|`Deposit account interest`|`8,285`|`6,422`|
## **`3. NET INCOME/(EXPENDITURE)`**
```
Net income/(expenditure) is stated after charging/(crediting):
```
||`2025`|`2024`|
|---|---|---|
||`£`|`£`|
|`Independent examiners' fee`|`1,956`|`1,860`|
|`Depreciation - owned assets`|`-`|`266`|
|`Surplus on disposal of fixed assets`|`(65)`|`-`|
## **`4. TRUSTEES' REMUNERATION AND BENEFITS`**
```
Therewerenotrustees'remunerationorotherbenefitsfortheyearended31August2025norforthe year
ended 31 August 2024.
```
## **`Trustees' expenses`**
```
The charity incurred expenses of £453 (2024 - £428) in respect of trustees' liability insurance.
```
```
In addition,the charityreimbursedexpensestotalling£3,086in respectof interviewingexpenses(2024 - £4,081
in respect of scholar days and interviewing expenses) to 4 (2024- 6) trustees.
```
## **`5. STAFF COSTS`**
```
The average monthly number of employees during the year was as follows:
```
|`The average monthly number of employees during the year was as follows:`|||
|---|---|---|
||`2025`|`2024`|
|`Scholar selection and placement`|`-`|`-`|
||||
```
No employees received emoluments in excess of £60,000.
```
## **`6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES`**
|**`COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES`**||
|---|---|
||`Unrestricted`|
||`fund`|
||`£`|
|**`INCOME AND ENDOWMENTS FROM`**||
|`Donations and legacies`|`3,987`|
|**`Charitable activities`**||
|`Scholar selection and placement`|`70,255`|
|`Investment income`|`6,422`|
|**`Total`**|`80,664`|
```
continued...
```
```
Page 12
```
```
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```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025`**
## **`6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued`**
|||||`Unrestricted`|
|---|---|---|---|---|
|||||`fund`|
|||||`£`|
||**`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`|
|**`7.`**|**`TANGIBLE FIXED ASSETS`**||||
|||`Fixtures`|||
|||`and`|`Computer`||
|||`fittings`|`equipment`|`Totals`|
|||`£`|`£`|`£`|
||**`COST`**||||
||`At 1 September 2024`|`1,728`|`1,856`|`3,584`|
||`Disposals`|`-`|`(1,058)`|`(1,058)`|
||`At 31 August 2025`|`1,728`|`798`|`2,526`|
||**`DEPRECIATION`**||||
||`At 1 September 2024`|`1,728`|`1,856`|`3,584`|
||`Eliminated on disposal`|`-`|`(1,058)`|`(1,058)`|
||`At 31 August 2025`|`1,728`|`798`|`2,526`|
||**`NET BOOK VALUE`**||||
||`At 31 August 2025`|`-`|`-`|`-`|
||`At 31 August 2024`|`-`|`-`|`-`|
```
continued...
```
```
Page 13
```
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```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025`**
## **`8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
|`Prepayments`
**`9.`**
**`CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
`Social security and other taxes`
`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 1.9.24`
`£`
`280,916`
`280,916`
`Incoming`
`resources`
`£`
`66,897`
`66,897`|`2025`
`2024`
`£`
`£`
`6,365`
`5,441`
`2025`
`2024`
`£`
`£`
`955`
`-`
`1,661`
`318`
`25,995`
`23,257`
`3,956`
`1,860`
`32,567`
`25,435`
`Net`
`movement`
`At`
`in funds`
`31.8.25`
`£`
`£`
`(5,980)`
`274,936`
`(5,980)`
`274,936`
`Resources`
`Movement`
`expended`
`in funds`
`£`
`£`
`(72,877)`
`(5,980)`
`(72,877)`
`(5,980)`|
|---|---|---|
```
continued...
```
```
Page 14
```
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```
## **`NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025`**
## **`10. MOVEMENT IN FUNDS - continued`**
## **`Comparatives for movement in funds`**
|**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**|`At 1.9.23`
`£`
`271,340`
`271,340`|`Net`
`movement`
`in funds`
`£`
`9,576`
`9,576`|`At`
`31.8.24`
`£`
`280,916`|
|---|---|---|---|
||||`280,916`|
```
Comparative net movement in funds, included in the above are as follows:
```
||`Incoming`|`Resources`|`Movement`|
|---|---|---|---|
||`resources`|`expended`|`in funds`|
||`£`|`£`|`£`|
|**`Unrestricted funds`**||||
|`General fund`|`80,664`|`(71,088)`|`9,576`|
|**`TOTAL FUNDS`**|`80,664`|`(71,088)`|`9,576`|
## **`11. RELATED PARTY DISCLOSURES`**
```
There were no related party transactions for the year ended 31 August 2025.
```
```
Page 15
```
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```
## **`DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025`**
||`2025`|`2024`|
|---|---|---|
||`£`|`£`|
|**`INCOME AND ENDOWMENTS`**|||
|**`Donations and legacies`**|||
|`Donations`|`4,151`|`3,987`|
|`Gift aid tax`|`1,630`|`-`|
||`5,781`|`3,987`|
|**`Investment income`**|||
|`Deposit account interest`|`8,285`|`6,422`|
|**`Charitable activities`**|||
|`Students (Bosnia)`|`1,500`|`3,000`|
|`Students (Bulgaria)`|`1,500`|`2,000`|
|`Students (Croatia)`|`-`|`1,000`|
|`Students (Czech Republic)`|`2,253`|`2,000`|
|`Students (Georgia)`|`3,000`|`5,000`|
|`Students (Moldova)`|`3,769`|`4,005`|
|`Students (Montenegro)`|`1,500`|`5,000`|
|`Students (Romania)`|`750`|`3,000`|
|`Students (Serbia)`|`3,000`|`5,000`|
|`Students (Slovakia)`|`2,250`|`4,000`|
|`Students (Armenia)`|`2,250`|`3,000`|
|`Students (North Macedonia)`|`2,250`|`2,000`|
|`Schools (students)`|`28,750`|`31,250`|
|`Scholarship application fees`|`59`|`-`|
||`52,831`|`70,255`|
|**`Total incoming resources`**|`66,897`|`80,664`|
|**`EXPENDITURE`**|||
|**`Charitable activities`**|||
|`Wages`|`5,271`|`-`|
|`Pensions`|`29`|`-`|
|`Insurance`|`1,558`|`1,506`|
|`Executive expenses`|`3,654`|`1,056`|
|`Grants and awards`|`1,054`|`1,378`|
|`Scholar days`|`617`|`745`|
|`Interviewing expenses`|`11,231`|`10,390`|
|`Agents fees`|`15,750`|`16,500`|
|`Carried forward`|`39,164`|`31,575`|
```
This page does not form part of the statutory financial statements
```
```
Page 16
```
```
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```
## **`DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025`**
||`2025`|`2024`|
|---|---|---|
||`£`|`£`|
|**`Charitable activities`**|||
|`Brought forward`|`39,164`|`31,575`|
|`Administration fees`|`23,166`|`29,000`|
|`Bank charges`|`245`|`258`|
|`Publicity`|`484`|`607`|
|`Software`|`6,329`|`6,202`|
|`Computer equipment`|`-`|`266`|
|`Loss on sale of tangible fixed assets`|`(65)`|`-`|
||`69,323`|`67,908`|
|**`Support costs`**|||
|**`Governance costs`**|||
|`Independent examiners' remuneration`|`1,956`|`1,860`|
|`Accountancy fees`|`98`|`-`|
|`Legal fees`|`1,500`|`1,320`|
||`3,554`|`3,180`|
|`Total resources expended`|`72,877`|`71,088`|
|**`Net (expenditure)/income`**|`(5,980)`|`9,576`|
```
This page does not form part of the statutory financial statements
```
```
Page 17
```