REGISTERED COMPANY NUMBER: 04297497 REGISTERED CHARITY NUMBER: 1090263
Report of the Trustees and
Audited Financial Statements
for the Year Ended 31 August 2020
for
IOL EDUCATIONAL TRUST (A COMPANY LIMITED BY GUARANTEE)
IOL EDUCATIONAL TRUST
Contents of the Financial Statements for the year ended 31 August 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 6 |
| Report of the Independent Auditors | 7 to 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 13 to 20 |
| Detailed Statement of Financial Activities | 21 to 22 |
IOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2020
The Trustees present their annual report together with the audited financial statements for the year ended 31 August 2020.
Objectives and activities
The Company is established with the purpose of promoting the teaching, learning and study of modern languages in pursuit of the advancement of educational learning and the dissemination of information, understanding and knowledge of all aspects of modern languages. In particular it determines standards and criteria requisite to the setting and holding of exams for learners of modern languages and professional linguists such that they attain recognition of their proficiency in one or more such languages.
Public benefit
The Trustees confirm that they have complied with the duty of section 4 of the Charities Act 2011 to have due regard to the Charities Commission's general guidance and supplementary advice on public benefit in determining the activities undertaken by the Trust for the advancement of education. The Trustees believe that they can demonstrate that they clearly meet the two key principles of public benefit namely:
Principle 1 There must be an identifiable benefit or benefits
1a It must be clear what the benefits are and
1b The benefits must be related to the aims
The Trustees consider that in fulfilling the main aim of the Trust, namely the advancement and development of education, teaching and qualifications in a range of 50+ languages, they are acting in accordance with the government plans to develop an education system that contributes fully to the nation's vocational skills, enabling holders of Trust qualifications to make a contribution to the field of languages in general, including public service interpreting and translation.
Principle 2 Benefits must be to the public or a section of the public.
2a The beneficiaries must be appropriate to the aims
2b Where the benefit is to a section of the public, the opportunity to benefit must not be restricted by geographical or other restrictions or by the ability to pay any fees
2c People in poverty must not be excluded from the opportunity to benefit
The Trust seeks to benefit the public by providing qualifications in modern languages, bilingual skills, public service interpreting, and translation in over fifty languages. It is recognised as an Awarding Organisation by the Office of Qualifications and Examinations Regulation (OFQUAL). Five of its qualifications have been accredited and are entered onto the National Qualifications Framework. The Diploma in Public Service Interpreting (DPSI) and the Diploma in Police Interpreting (DPI) qualifications are accepted for registration on the National Register of Public Service Interpreters (NRPSI) which is used by Public Service Organisations to access interpreters for legal, health and local government contexts.
The Trust's specific experience is in designing specialist accredited assessments to enable successful candidates to demonstrate fitness to practice in their chosen areas. Detailed examination specifications are provided so that course providers can develop and teach appropriate courses.
Fee income represents the only significant part of the Trust's income and the Trust works hard to ensure that fees are not an insurmountable barrier for potential beneficiaries. Despite financial pressures, the price increases are restricted to rates as near as possible to inflation, in order that access to the Trust's qualifications is as wide as possible.
Key financial performance indicators
CIOLQ's overall deficit has increased to £251k. This is due to costs incurred in a re-organisation with the loss of six posts, as well as loss in income from public services contracts. A Coronavirus 'bounceback loan' of £50k has been received and is on the balance sheet. It should be noted that CIOLQ has the clear ongoing support of CIOL, whose Council consider CIOLQ an important part of the overall CIOL Royal Charter purpose, offer and proposition to linguistics and language professionals.
Investment policy
The Trustee Directors decided that it is appropriate to hold any excess funds (cash balances vary with pulses of registration during the year) in high interest earning bank accounts.
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IOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2020
Review of the business
The context for the delivery of professional language qualifications changed dramatically this year with the onset of the Covid-19 pandemic in March. This disrupted planned face to face exam sessions which had to be deferred beyond the Financial year 2019/20 to November 2020, deferring some revenue streams. In response the Trust Board mandated a restructuring and redundancy programme to reduce costs, as well as the commissioning of an online platform to complement the use of Microsoft Teams in enabling online delivery of CIOLQ's key professional exams.
The Trust was successful in securing a further one year extension to one of its two major public service assessment contracts through to April 2022. Unfortunately the other major public service contract we had had was lost to another provider amplifying the need for restructuring and redundancy. The focus for 2021 is embedding the digital delivery of our flagship professional Interpreter and Translator exams and underpinning the delivery of our major public services contract with efficient online tools.
Principal funding sources
The funding of the Trust comes primarily from the exam entry fees levied. Expenditure in the year was spent principally on conducting the exams, with additional expenditure on Ofqual compliance and assurance activities such as Assessor training, updating policies, membership of professional bodies, alongside significant investment in our online delivery platforms.
Reserves policy
The Trust's reserve policy is to aim that it retains reserves equivalent to nine months' expenditure to reflect its legal and fiduciary obligations on a going concern basis. Account is also taken of the seasonal fluctuations in resource requirements and timings of exams through the year. The current level of reserves is believed to be sufficient.
The Trustees review the finances, budgets and expenditure against budgets as part of the effective stewardship of the Trust.
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IOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2020
Future plans
CIOLQ will continue to work alongside its associated professional body CIOL, to accredit, develop, support and represent linguists in line with its Strategic Plan. As the UK prepares to formally leave the EU, ensuring that there is a pipeline of linguists with the linguistic skills necessary in a global economy will remain a critical part of CIOL and CIOLQ's work.
Further investment in online delivery, alongside developing further professional qualifications, will ensure our qualifications are fit-for-purpose in a changing external environment. A greater online capability will also better enable us to respond to the needs of those who commission, contract and procure language services - including language service providers and public services as well as providing pathways for individual linguists to enter the profession. Our contracted services to government and other organisations will remain an important part of the CIOLQ portfolio.
Together with CIOL, CIOLQ will work to promote professionalism within the languages sector, to push for better recognition of the value of languages and to support a wide audience of learners on a pathway to build their language expertise. It will do this, and promote the teaching and study of modern languages, by:
a) Continuing to develop and deliver key qualifications (Diploma in Translation, the Diploma in Public Service Interpreting, the Diploma in Police Interpreting) as well as actively identifying opportunities for new related qualifications in response to market needs in the UK and overseas. It will do this within a new framework with clear entry points and career progression opportunities linked to qualifications.
b) Having the unique feature of providing such qualifications in the widest possible range of languages, currently approximately 50 different languages each year, and finding sustainable solutions for languages where demand is critical but numbers are low i.e. in public sector interpreting and translating.
c) Engaging at a national level to gain recognition of the need for consistent policy on languages, recognition for linguists and accreditation.
d) Developing partnerships to develop, deliver and promote our qualifications with academic institutions, grant awarding bodies, professional organizations, representatives of commerce and industry, and organisations with similar concerns and interests.
e) Responding to bespoke requirements for language assessment from education, business, government and the private sector.
f) Continuing to uphold rigorous standards across the whole portfolio of qualifications and assessments. Supporting learners, candidates and centres in all aspects of the teaching and learning of our qualifications in order to provide coherent 'pathways' to qualification for all language learners seeking accreditation, with identifiable routes of progression.
g) Working with the CIOL towards promoting chartership and wider recognition as the professional lead for languages and language professionals within the UK and for those who promote professionalism and bring candidates into the membership of the professional body.
Charity constitution
The IoL Educational Trust is a company limited by Guarantee (Registration No 04297497) and a Registered Charity (Charity Number 1090263). It is governed by its Memorandum and Articles dated 2 October 2001 as amended by Special Resolution dated 12 March 2009, Special Resolution dated 10 April 2015 and Special Resolution dated 10 April 2019. The latter Special Resolution updated the Aims and Objectives of the company, clarified the terms of office of Directors and recognised the addition of a new trading name, CIOL Qualifications, adopted on 12 February 2019.
The Board of Trustee Directors shall consist of at least five members, which will include the Chair of Council of the Chartered Institute of Linguists (ex officio), the maximum number shall be determined in a general meeting.
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IOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2020
Recruitment, training, induction and appointment of new trustees
The IoL Educational Trust acknowledges the importance of providing effective induction and training programmes for Trustees. The induction of Trustees includes governance training, an introduction to the organisation through a meeting with the Chair of the Board, Executive officers and the Director of Finance.
They receive copies of the Memorandum and Articles of Association, the most recent annual report, the current budget, management accounts, together with a copy of 'The Essential Trustee: What you need to know', produced by the Charity Commission and available online. They are also briefed on the strategy and activities of the Chartered Institute of Linguists. All Trustees are reminded to access online the most recent edition of the newsletter of the Charity Commission, which helps them to keep abreast of relevant issues and concerns. Trustees are invited to attend an externally conducted Trustee Training Course related to the responsibilities of Trustees.
Organisational structure
The charity has a Board of Trustee Directors. The Chief Executive reports to the Board. The Head of Qualifications is responsible for the running of all qualification and examination activities on a daily basis. There are three managers, responsible for different functional areas of work (Live Assessment, Development and Production, Client Services), who together deliver all aspects of examination administration. The Chief Executive consults closely with the Chair of Trustee Directors on all matters of future policy and provides updates of activities at each meeting of the Board. The day to day running of the examinations is left to staff, under the direction of the Head of Qualifications. Policy decisions are discussed at Board level.
Key management remuneration
The Trustees consider the Board of Directors, the Chief Executive and the Head of Qualifications to be the key management personnel of the charity in terms of controlling and operating the Trust on a day-to-day basis. Details of trustees' expenses and key management and Trustees’ remuneration are disclosed in Notes 8 and 9 of the accounts respectively.
The pay of senior staff is set at the market rate for the charity sector and is reviewed annually and as part of the budget setting process.
Related parties
The IoL Educational Trust is an associated charity of the Chartered Institute of Linguists. The Board of Trustee Directors includes the Chair of Council of the Chartered Institute of Linguists.
Risk management
The Trustee Directors monitor closely the viability of its exams in the light of the prevailing political and economic climate and produce an annual risk register. A risk management system is in place and reviewed by the Trustee Directors at each meeting of the Board.
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IOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2020
Registered Company number 04297497 (Not specified/Other)
Registered Charity number 1090263
Registered office
7th Floor 167 Fleet Street London EC4A 2EA
Trustees
Ms B S Holmes MBE Chair Prof. C Pountain Ms H J L Campbell Mr N Mair Ms J Wyburd Mr K Moffitt Ms J Gabler (ex-officio) Ms A Stevens (ex-officio)
Company Secretary Crossley Secretaries Limited
Auditors
Haines Watts New Derwent House 69-73 Theobalds Road London WC1X 8TA
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IOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2020
Statement of trustees' responsibilities
The trustees (who are also the directors of IOL Educational Trust 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).
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Auditors
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 15 April 2021 and signed on its behalf by:
Ms B S Holmes - Trustee
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Report of the Independent Auditors to the Members of IOL Educational Trust
Opinion
We have audited the financial statements of IOL Educational Trust (the 'charitable company') for the year ended 31 August 2020 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).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The directors' view on the impact of COVID-19 is disclosed in the accounting policies.
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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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Report of the Independent Auditors to the Members of IOL Educational Trust
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:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
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.
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.
Jonathan Moughton (Senior Statutory Auditor) for and on behalf of Haines Watts New Derwent House 69-73 Theobalds Road London WC1X 8TA Date: .............................................
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IOL EDUCATIONAL TRUST
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 August 2020
| Income and endowments from Donations and legacies Charitable activities Examinations Investment income Other income Total Expenditure on Charitable activities Examination costs Other Regular costs Exceptional costs Total NET INCOME/(EXPENDITURE) Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted fund Notes £ 2 51,188 4 952,790 3 274 75,996 1,080,248 5 759,487 521,291 50,733 ~~571,624 ~~6 571,624 1,331,111 (250,863) 135,836 (115,027) |
Restricted funds £ - - 400 - 400 - 400 400 - 10,000 10,000 |
2020 Total funds £ 51,188 952,790 674 75,996 1,080,648 759,487 572,024 1,331,511 (250,863) 145,836 (105,027) |
2019 Total funds £ 50,933 1,403,014 960 - 1,454,907 1,080,055 528,578 1,608,633 (153,726) 299,562 145,836 |
|---|---|---|---|---|
Continuing operations
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
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IOL EDUCATIONAL TRUST
Balance Sheet
31 August 2020
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| fund | funds | funds | funds | ||
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 11 | 14,779 | - | 14,779 | 23,756 |
| Current assets | |||||
| Debtors | 12 | 73,070 | - | 73,070 | 207,570 |
| Cash at bank | **190,401 ** | 10,000 | **200,401 ** | 235,567 | |
| 263,471 | 10,000 | 273,471 | 443,137 | ||
| Creditors | |||||
| Amounts falling due within one year | 13 | (343,277) | - | (343,277) | (321,057) |
| Net current assets/(liabilities) | **(79,806) ** | 10,000 | **(69,806) ** | 122,080 | |
| Total assets less current liabilities | (65,027) | 10,000 | (55,027) | 145,836 | |
| Creditors | |||||
| Amounts falling due after more than one year | 14 | (50,000) | - | (50,000) | - |
| NET ASSETS/(LIABILITIES) | (115,027) | 10,000 | (105,027) | 145,836 | |
| Funds | 16 | ||||
| Unrestricted funds | (115,027) | 135,836 | |||
| Restricted funds | 10,000 | 10,000 | |||
| Total funds | (105,027) | 145,836 |
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 15 April 2021 and were signed on its behalf by:
Ms B S Holmes - Trustee
The notes form part of these financial statements
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IOL EDUCATIONAL TRUST
Cash Flow Statement
for the year ended 31 August 2020
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(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 Net cash used in 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 |
2020 £ (82,849) (82,849) (2,991) 674 (2,317) 50,000 50,000 (35,166) 235,567 **200,401 ** |
2019 £ (169,427) (169,427) (7,764) 960 (6,804) - - (176,231) 411,798 235,567 |
|---|---|---|
The notes form part of these financial statements
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IOL EDUCATIONAL TRUST
Notes to the Cash Flow Statement for the year ended 31 August 2020
1. Reconciliation of net expenditure to net cash flow from operating activities
| Net expenditure for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Decrease/(increase) in debtors Increase in creditors Net cash provided by/(used in) operations |
2020 £ (250,863) 11,968 (674) 134,500 22,220 **(82,849) ** |
2019 £ (153,726) 13,293 (960) (126,642) 98,608 (169,427) |
|---|---|---|
2. Analysis of changes in net funds
| Analysis of changes in net funds | |||
|---|---|---|---|
| At 1/9/19 | Cash flow | At 31/8/20 | |
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | **235,567 ** | (35,166) | **200,401 ** |
| 235,567 | (35,166) | 200,401 | |
| Debt | |||
| Debts falling due after 1 year | - | (50,000) | (50,000) |
| - | (50,000) | (50,000) | |
| Total | **235,567 ** | (85,166) | **150,401 ** |
The notes form part of these financial statements
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements for the year ended 31 August 2020
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.
Going concern
The Trust is dependent on the continued support of the Chartered Institute of Linguists to ensure it is able to meet its debts as they fall due. The Council of the Chartered Institute of Linguists have confirmed their commitment to support the Trust financially for a period of at least twelve months from the signing of these accounts, which will enable the Trust to implement the new Investment and Development Plan to transform its services. Accordingly, the Trustees consider it appropriate to continue to adopt the going concern basis in preparing these financial statements.
Income
Incoming resources from charitable activities are 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.
Investment income arises from interest bearing bank accounts and is recognised on a receivable basis.
Donated services arise from the charity operating from 167 Fleet Street rent-free and are recognised on a receivable basis.
Government grants
Government grants are recognised in accordance with the accruals model. The charity received £75,996 of government grants in relation to the Coronavirus Job Retention Scheme relating to the year.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified as follows:
Examination costs comprising expenditure, including staff costs, directly attributable to the activity on an accruals basis. Where costs cannot be directly attributed they have been allocated to activities on a costs basis.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at the Headquarters.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Tangible fixed assets
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Computer equipment - 25% per annum on a straight line basis Database - 33% per annum on a straight line basis Fixtures & fittings - 25% per annum on a straight line basis
Taxation
The charity is exempt from corporation tax on its charitable activities.
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2020
1. Accounting policies - continued
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 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.
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
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.
Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the charitable company becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measure at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the charitable company's cash management.
Financial liabilities and equity instruments issued by the charitable company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the charitable company after deducting all of its liabilities. Equity instruments issued by the charitable company are recorded at the proceeds received, net of direct issue costs.
Apportionment of shared costs with the Chartered Institute of Linguists
The charitable company is based at the same premises as the Chartered Institute of Linguists and is charged a proportion of the shared costs based on occupancy. For the year ended 31 August 2020 the charitable company occupies 70% (2019: 70%) of the property and therefore is charged 70% (2019: 70%) of all shared costs.
2. Donations and legacies
| Donated facilities 3. Investment income Deposit account interest |
2020 £ 51,188 2020 £ 674 |
2019 £ 50,933 |
2019 £ 50,933 |
|---|---|---|---|
| 2019 £ 960 |
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2020
4. Income from charitable activities
| Activity Examination fees Examinations Centre fees Examinations Registration fees Examinations Appeals and re-marks Examinations |
2020 £ 905,589 25,579 4,600 17,022 952,790 |
2019 £ 1,343,478 35,042 5,098 19,396 1,403,014 |
|---|---|---|
5. Charitable activities costs
| Examination costs Support costs Other resources expended Other resources expended Net income/(expenditure) Net income/(expenditure) is stated after charging/(crediting): Auditors' remuneration Depreciation - owned assets |
Information Finance technology r £ £ 4,484 92,580 Governance Other costs £ £ 195,058 5,130 2020 £ 5,130 11,968 |
Direct Costs £ 759,487 Human ources £ 274,772 Totals £ 572,024 2019 £ 6,530 13,292 |
|
|---|---|---|---|
| es | |||
6. Support costs
7. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
8. Trustees' remuneration and benefits
Trustee directors received remuneration of £34 (2019: £272) in respect of examiner's fees during the year.
Trustees' expenses
Trustee directors were reimbursed £241 (2019: £1,407) for travel expenses in the year.
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2020
9. Staff costs
| Wages and salaries Social security costs Other pension costs |
2020 £ 609,397 34,134 37,147 680,678 |
2019 £ 571,915 39,957 37,086 |
|---|---|---|
| 648,958 |
The average monthly number of employees during the year was as follows:
| Examinations Admin |
2020 12 4 16 |
2019 13 4 17 |
|---|---|---|
No employees received emoluments in excess of £60,000.
The key management personnel of the charitable company comprise the Trustees, the Chief Executive and the Head of Qualifications. The total employee benefits of key management personnel chargeable to the Trust were £110,900 (2019: £92,600).
10. Comparatives for the statement of financial activities
| Unrestricted fund £ Income and endowments from Donations and legacies 50,933 Charitable activities Examinations 1,403,014 Investment income 560 Total 1,454,507 Expenditure on Charitable activities Examination costs 1,080,055 Other 528,178 Total 1,608,233 NET INCOME/(EXPENDITURE) (153,726) Reconciliation of funds Total funds brought forward 289,562 Total funds carried forward 135,836 |
Restricted funds £ - - 400 400 - 400 400 - 10,000 10,000 |
Total funds £ 50,933 1,403,014 960 1,454,907 1,080,055 528,578 1,608,633 (153,726) 299,562 145,836 |
|---|---|---|
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2020
11. Tangible fixed assets
| Fixtures Plant and and Computer machinery fittings equipment £ £ £ Cost At 1 September 2019 95,239 60,544 71,565 Additions 2,991 - - At 31 August 2020 98,230 60,544 71,565 Depreciation At 1 September 2019 91,199 49,543 62,850 Charge for year 2,676 3,737 5,555 At 31 August 2020 93,875 53,280 68,405 Net book value At 31 August 2020 4,355 7,264 3,160 At 31 August 2019 4,040 11,001 8,715 12. Debtors: amounts falling due within one year 2020 £ Trade debtors 7,144 Other debtors 14,819 Prepayments and accrued income 51,107 73,070 13. Creditors: amounts falling due within one year 2020 £ Trade creditors 20,260 Amounts owed to group undertakings - Social security and other taxes 67,925 Other creditors 29,412 Accrued expenses 225,680 343,277 |
Totals £ 227,348 2,991 230,339 203,592 11,968 215,560 14,779 23,756 2019 £ 148,007 17,123 42,440 207,570 2019 £ 22,603 104,684 20,888 6,644 166,238 321,057 |
|---|---|
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued
for the year ended 31 August 2020
| 14. Creditors: amounts falling due after more than one year Other loans (see note 15) 15. Loans An analysis of the maturity of loans is given below: Amounts falling between one and two years: Other loans - 1-2 years Amounts falling due between two and five years: Other loans - 2-5 years 16. Movement in funds Unrestricted funds General fund Restricted funds The Susan Tolman Award Fund The Simeon Potter Book Fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund Restricted funds The Susan Tolman Award Fund The Simeon Potter Book Fund TOTAL FUNDS |
At 1/9/19 £ 135,836 5,000 5,000 10,000 145,836 Incoming resources £ 1,080,248 200 200 400 1,080,648 |
2020 £ 50,000 2020 £ 10,000 40,000 Net movement in funds £ (250,863) - - - (250,863) Resources expended £ (1,331,111) (200) (200) (400) (1,331,511) |
2019 £ - 2019 £ - - At 31/8/20 £ (115,027) 5,000 5,000 10,000 (105,027) Movement in funds £ (250,863) - - - **(250,863) ** |
|---|---|---|---|
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2020
16. Movement in funds - continued
Comparatives for movement in funds
| Net movement At 1/9/18 in funds £ £ Unrestricted funds General fund 289,562 (153,726) Restricted funds The Susan Tolman Award Fund 5,000 - The Simeon Potter Book Fund 5,000 - 10,000 - TOTAL FUNDS 299,562 (153,726) Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 1,454,507 (1,608,233) Restricted funds The Susan Tolman Award Fund 200 (200) The Simeon Potter Book Fund 200 (200) 400 (400) TOTAL FUNDS 1,454,907 (1,608,633) A current year 12 months and prior year 12 months combined position is as follows: |
At 31/8/19 £ 135,836 5,000 5,000 10,000 145,836 Movement in funds £ (153,726) - - - (153,726) |
|---|---|
| Net | |||
|---|---|---|---|
| movement | |||
| At 1/9/18 | in funds | At 31/8/20 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 289,562 | (404,589) | (115,027) |
| Restricted funds | |||
| The Susan Tolman Award Fund | 5,000 | - | 5,000 |
| The Simeon Potter Book Fund | 5,000 | - | 5,000 |
| 10,000 | - | 10,000 | |
| TOTAL FUNDS | 299,562 | (404,589) | (105,027) |
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IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2020
16. Movement in funds - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds The Susan Tolman Award Fund The Simeon Potter Book Fund TOTAL FUNDS |
Incoming resources £ 2,534,755 400 400 800 2,535,555 |
Resources expended £ (2,939,344) (400) (400) (800) (2,940,144) |
Movement in funds £ (404,589) - - - (404,589) |
|---|---|---|---|
The Susan Tolman Continuing Professional Development Prize exists to provide a prize to the best DPSI candidate. During the year £200 (2019: £200) was awarded and is deemed to be the interest earned on the fund.
The Simeon Potter Award has been generously established and is awarded to the best CBS candidate. During the year £200 (2019: £200) was awarded and is deemed to be the interest earned on the fund.
17. Pension commitments
The charitable company offers a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company. The unpaid contributions included in other creditors at the balance sheet date amount to £12,748 (2019: £6,644).
18. Related party disclosures
The IOL Educational Trust is an associated charity of the Chartered Institute of Linguists which provides management and administration services to the Trust.
During the year, the Trust recharged administrative expenses of £7,678 (2019: £4,746) to the Chartered Institute of Linguists and paid costs of £369,764 (2019: £323,703). Recharges of £141,487 (2019: £213,926) were repaid to the Chartered Institute of Linguists. At the balance sheet date, the net amount owed by IOL Educational Trust to The Chartered Institute of Linguists was £16,664 (2019: £104,684).
19. Liability of members
The charitable company is limited by guarantee and has no share capital. in the event of the charitable company being wound-up, the liability in respect of the guarantee is limited to £1 per member of the charitable company during the time they are a member or within one year of ceasing to be a member, as stated in the Memorandum and Articles of Association.
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IOL EDUCATIONAL TRUST
Detailed Statement of Financial Activities for the year ended 31 August 2020
| Income and endowments Donations and legacies Donated facilities Investment income Deposit account interest Charitable activities Examination fees Centre fees Registration fees Appeals and re-marks Other income Furlough income Total incoming resources Expenditure Charitable activities Staff costs Social security Pensions Printing Marketing Other direct costs Cost of setting exams Examiners' fees & expenses Moderators' fees & expenses Co-ordinations Interlocutors' fees Support costs Finance Bank charges Information technology Telephone Repairs and renewals Human resources Wages Carried forward |
2020 £ 51,188 674 905,589 25,579 4,600 17,022 952,790 75,996 1,080,648 367,579 34,134 16,131 37,143 4,500 1,153 61,459 144,521 37,768 28,360 26,739 759,487 4,484 87,459 5,121 92,580 241,818 241,818 |
2019 £ 50,933 960 1,343,478 35,042 5,098 19,396 1,403,014 - 1,454,907 417,775 39,957 18,749 49,272 8,954 1,412 125,040 230,535 49,796 67,816 70,749 1,080,055 4,609 76,153 114 76,267 154,140 154,140 |
|---|---|---|
This page does not form part of the statutory financial statements
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IOL EDUCATIONAL TRUST
Detailed Statement of Financial Activities for the year ended 31 August 2020
| Human resources Brought forward Pensions Staff training and recruitment Other Rent & rates Repairs and renewals Postage and stationery General expenses Travel and subsistence Annual prize giving Accountancy fees Legal fees Plant and machinery Fixtures and fittings Computer equipment Governance costs Auditors' remuneration Total resources expended Net expenditure |
2020 £ 241,818 21,016 11,938 274,772 51,188 - 7,249 25,604 8,628 6,035 75,401 8,985 2,676 3,737 5,555 195,058 5,130 1,331,511 (250,863) |
2019 £ 154,140 18,337 13,475 185,952 50,933 8,769 28,423 43,435 19,145 6,026 79,910 5,286 2,011 3,348 7,934 255,220 6,530 1,608,633 (153,726) |
|---|---|---|
This page does not form part of the statutory financial statements
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