REGISTERED COMPANY NUMBER: 04297497 REGISTERED CHARITY NUMBER: 1090263
Report of the Trustees and Audited Financial Statements for the Year Ended 31 August 2021
: for IOL EDUCATIONAL TRUST (A COMPANY LIMITED BY GUARANTEE)
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{OL EDUCATIONAL TRUST
Contents of the Financial Statements for the year ended 341 August 2021
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| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 7 |
| Statement of Financial Activities | 8 | ||
| Balance Sheet | 9 | ||
| Cash Flow Statement | 10 | ||
| Notes to the Cash Flow Statement | 11 | ||
| Notes to the Financial Statements | 12 | to | 19 |
| DetailedStatementofFinancialActivitles | 20 | to | 21 |
J1OL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2021
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The Trustees present their annual report together with the audited financial statements for the year ended 34 August 2021.
Objectives and activities
Objectives and alms
The Company is established with the purpose of promoting the teaching, learning and study of modern languages in pursuit of the advancement of educational tearning 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
ta 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.
Achievement and performance Key financlal performance Indicators
CIOLQ's final operating surplus was £2.9k. CIOLQ hasa letter of ongoing financial support from The Chartered Institute of Linguists (CIOL) with access to additional cash and investment reserves as needed. CIOL Council consider CIOLQ an essential part of delivering CIOL's Royal Charter objects and wider purpose.
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JOL EDUCATIONAL TRUST
Report of the Trustees for the year ended 31 August 2021
Achievement and performance
Review of the business
This year CIOLQ has returned to operating surplus, by exiting non-core activities and investing in the core portfolio of professional translation and interpreter qualifications, which are now being successfully offered wholly online.
CIOLQ worked closely alongside its associated professional body CIOL, to support pathways which accredit, develop, support and represent professional linguists in line with a shared strategic plan. Ensuring that there is a pipeline of qualified Janguage professionals with the linguistic skills necessary to support UK public services, education and to enable the UK and other countries to prosper and thrive in a global economy, will remain a critical part of CIOL and CIOLQ's work going forward in line with CtOL's Royal Charter.
Financial review
Principai funding sources
CIOLQ's funding comes primarily from exam fees. Expenditure in the year was principaily related to the development, online delivery, assessment and marking of exams; with additional expenditure on ongoing Ofqual compliance, quality and assurance activities such as Assessor training, updating policies eic.
Reserves policy
The CIOLQ Educational Trust Board (ETB) has agreed a Red, Amber, Green Reserves and Investment Policy based on holding sufficient cash to cover seasonal fluctuations in cash balances, caused by inflows of fees and outflows of third-party costs. CIOLQ exited 2020/21 in the Amber Zone where the organisation is committed to and able to hold a minimum cash reserve of c£150k and can make modest investments in systems, process improvements and capability. However, in the Amber Zone any growth in permanent staffing is capped, until consistent ongoing operating surpluses are achieved moving the organisation into the Green Zone.
Future plans
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Further investment in online delivery, alongside further developing and extending the scope and range of professional qualifications offered, will ensure CIOLQ's qualifications are fit-for-purpose in a changing external environment. CIOLQ's greater online delivery capability developed in 2020/21, will also better enable the organisation to respond to the future needs of those who commission, contract and procure language services - including commercial Language Service Providers and Government and public services, as well as providing more pathways for individual linguists to enter the profession.
Together with CIOL, ClOLQ will continue to work to promote professionalism within the languages sector; to push for better recognition of qualifications and the value of professional linguists as well advocating for the wider educational, social and cultural value of languages to support the wider audience of learners and potential future exam candidates.
Structure, governance and management
Charity constitution
The loL Educational Trust (loLET), trading as CIOL Qualifications (CIOLQ), was set up as a company by the Institute of Linguists in 2001, {t is the Associated Charity of CIOL and is registered as a charitable company limited by Guarantee (Registration No 04297497) with a Memorandum and Articles of Association. The loL Educational Trust is a Registered Charity (Charity Number 1090263).
The members of loLET are appointed annually by the Council of CIOL and normally comprise the CIOL Council members. CIOL Council members confirm by signature their acceptance of appointment. A register of members is maintained by CIOL.
CIOL Council members appoint ETB Directors. Appointment of the ETB normally takes place annually at the IoLET AGM. The Educational Trust Board shall consist of at least five members, which will include the Chair of Council of the Chartered Institute of Linguists (ex officio).
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Recruitment and appointment of new trustees
CIOLQ acknowledges the importance of providing effective induction and training for ETB Members. Their induction includes participation in an annual joint CIOL/CIOLQ Strategy Awayday, regular ‘sounding boards’ on strategy and futures, comprehensive briefing documents on policies and strategy, and induction through online meetings with the Chief Executive and Chair of ETB, the Head of Qualifications & Responsible Officer and the Executive Officer.
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IOL EDUCATIONAL TRUST
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Report of the Trustees for the year ended 31 August 2021
Structure, governance and management
Organisational structure
The CIOLQ Education Trust Board (ETB) is responsible for the strategic direction of CIOL Qualifications (CIOLQ). The ETB is accountable for the ongoing quality and compliance of CIOLQ's Ofqual, QIW and CCEA regulated qualifications and the regulatory responsibilities which come with that regulation. The ETB monitors the performance of qualifications and advises on quality and standards issues, development matters, qualification reviews and other non-reguiated assessment activities. The ETB may challenge and guide the Chief Executive and Head of Qualifications & Responsible Officer in all, and any aspects of the qualifications offered by CIOLQ and Is responsible for the good use of CIOLQ resources and the execution of CIOLQs objectives.
Key management remuneration
The ETB consider the Chief Executive and the Head of Qualifications to be the key management personnel of the charity in terms of controlling and operating CIOLQ on a day-to-day basis. Details of ETB members expenses and key management remuneration are disclosed in Notes 8 and 9 of the accounts respectively.
The pay of senior staff is set at with reference to the prevailing rates for the Charity, Education, Awarding Organisation and Membership sectors and is reviewed annually as part of the budget setting process.
Related parties
The toL Educational Trust is an associated charity of the Chartered Institute of Linguists. The Educational Trust Board (ETB) includes the Chair of Council of the Chartered Institute of Linguists.
Risk management
The ETB monitors closely the performance and delivery of exams in the light of the prevailing market, economic, and political and social context and reviews a risk register on a six-monthly basis. CIOLQ'’s successful move to wholly online delivery and remote working in the 2020/21 financial year has significantly mitigated the risks associated with the ongoing pandemic, which so gravely affected the organisation in 2019/20. At the same time, it has transformed the market opportunity for the CIOLQ and its professional language qualifications looking forwards.
Reference and administrative detalls
Registered Company number 04297497 (Not specified/Other)
Registered Charity number 1090263
Registered office 7th Floor
167 Fleet Street London EC4A 2EA
| Educational Trust Board | Members |
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| Bernardette Hoimes MBE | Chair |
| Judith Gabler | Ex-officio (Chair Chartered Institute of Linguists) |
| Anne Stevens | Ex-officio (Quality Standards Board) |
| Nick Mair | Trustee Director |
| Keith Moffitt | Trustee Director |
| Jocelyn Wyburd | Trustee Director |
| Silvia Colaiacomo | Co-opted |
| Claudia Lindner | Co-opted |
| Hugh Morgan | Co-opted |
| AnetteSchroeder-Rossell | Co-opted |
Company Secretary
Crossley Secretaries Limited
Auditors
Haines Watts Chartered Accountants and Statutory Auditor New Derwent House . 69-73 Theobalds Road London WC1X 8TA
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IOL EDUCATIONAL TRUST
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Report of the Trustees for the year ended 31 August 2021
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; - make judgements and estimates that are reasonable and prudent; - 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 responsibie 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 reievant 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 themseives 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 1.03 March 2022 and signed on its behalf by:
MsBSHolmesMBE-Trustee
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Report of the Independent Auditors to the Members of
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IOL Educational Trust
Opinion
We have audited the financial statements of JOL Educational Trust (the ‘charitable company’) for the year ended 31 August 2021 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 Generaily Accepted Accounting Practice).
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In our opinion the financiat statements: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 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 - 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
in auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any materlai uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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 Director's view on the impact of COVID-19 is disclosed within the accounting policles note.
Other Information
The trustees are responsible for the other Information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: - 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 - the Report of the Trustees has been prepared in accordance with applicable !egal requirements.
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Report of the Independent Auditors to the Members of
IOL Educational Trust
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7 A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting 7 Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent 7 Auditors.
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.
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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: - 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 - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - 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 contro! as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect ail irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk Increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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Report of the Independent Auditors to the Members of {OL Educational Trust
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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 taw, 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.
Jane ia (Senior Statutory Auditor) for and on behalf of Haines Watts Chartered Accountants and Statutory Auditor New Derwent House 69-73 Theobalds Road London WC1X 8TA Date: G3J2a.
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IOL EDUCATIONAL TRUST
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 314 August 2021
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|2021|2020|
|Unrestricted|Restricted|Total|Total|
|fund|funds|funds|funds|
|Notes|£|£|£|£|
|Income|and|endowments|from|
|Donations|and|legacies|2|52,724|-|§2,724|51,188|
|Charitable|activities|4|
|Examinations|4,083, 164|-|1,083,164|952,790|
|Investment|income|3|24|-|24|674|
|Other|income|13,755|-|13,755|75,996|
|Total|1,149,667|-|4,149,687|1,080,648|
|Expenditure|on|
|Charitable|activities|5|
|Examination|costs|696,767|-|696,767|753,487|
|Other|449,961|-|449,961|572,024|
|Tota!|1,146,728|-|1,146,728|1,331,514|
|NET|INCOME/(EXPENDITURE)}|2,939|-|2,939|(250,863)|
|Reconciliation|of|funds|
|Total funds|brought forward|(115,027)|10,000|(105,027)|145,836|
|Total funds|carried forward|(112,088)|10,006|(102,088)|(105,027)|
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Contlnuing operations All income and expenditure has arisen from continuing activities.
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The notes form part of these financial statements Page 8
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IOL EDUCATIONAL TRUST
Balance Sheet 31 August 2021
| 2021 | 2020 | ||||
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| Unrestricted fund |
Restricted funds |
Total funds |
Total funds |
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| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 11 | 9,564 | ~ | 9,564 | 14,779 |
| Current assets | |||||
| Debtors Cash atbank |
42 | 35,082 181,826 |
- 10,000 |
35,082 191,826 |
73,070 200,401 |
| 216,908 | 40,000 | 226,908 | 273,471 | ||
| Creditors | |||||
| Amounts falling duewithinoneyear | 13 | (288,560) | - | (288,560) | (343,277) |
| Net currentassets/(liabilities) | (71,652) | 10,000 | (61,652) | (69,806) | |
| Total assets less current liabilities | (62,088) | 10,000 | (52,088) | (55,027) | |
| Creditors Amounts falling due aftermorethanoneyear |
14 | (50,000) | - | (50,000) | (50,000) |
| NETASSETS/(LIABILITIES) | (112,088) | 40,000 | (102,088) | (105,027) | |
| Funds | 16 | ||||
| Unrestricted funds | (112,088) | (115,027) | |||
| Restricted funds | 10,000 | 10,000 | |||
| Totalfunds | (102,088) | (105,027) |
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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 3.March .2022............ and were signed on its behalf by:
B S HolmesMBE - Trustee
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The notes form part of these financial statements Page 9
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IOL EDUCATIONAL TRUST
Cash Flow Statement for the year ended 314 August 2021
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|2021|2020|
|Notes|£|£|
|Cash|flows|from|operating|activities|
|Cash|generated|from|operations|4|(4,369)|(82,849)|
|Net cash|used|in|operating|activities|(4,369)|(82,849)|
|Cash|flows|from|investing|actlvities|
|Purchase|of tangible|fixed|assets|(4,230)|(2,994)|
|Interest|received|24|674|
|Net cash|used|in|investing|activities|(4,208)|(2,317)|
|Cash|flows|from|financing|activities|
|New|loans|in year|-|50,000|
|Net|cash|provided|by|financing|activities|-|50,000|
|Change|in|cash|and|cash|equivalents|In|
|the|reporting|period|(8,575)|(35,166)|
|Cash|and|cash|equivalents|at the|
|beginning|of the|reporting|period|200,401|235,567|
|Cash|and|cash|equivalents|at the end|of|
|the reporting|period|491,826|200,401|
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The notes form part of these financial statements
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IOL EDUCATIONAL TRUST
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Notes to the Cash Flow Statement for the year ended 31 August 2021
- Reconcillation of net Income/(expenditure) to net cash flow from operating activities
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|---|---|---|---|---|---|---|
|2021|2020|
|£|£|
|Net|Income/(expenditure)|for the|reporting|period|(as|per the|
|Statement|of|Financial|Activities)|2,939|(250,863)|
|Adjustments|for:|
|Depreciation|charges|9,445|11,968|
|Interest|received|(24)|(674)|
|Decrease|in|debtors|37,988|134,500|
|(Decrease)/increase|in creditors|(64,717)|22,220|
|Net|cash|used|in|operations|(4,369}|(82,849)|
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Analysis of changes In net funds
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|---|---|---|---|---|---|---|---|---|
|At|1/9/20|Cash|flow|At|31/8/21|
|£|£|£|
|Net|cash|
|Cash|at|bank|200,401|(8,575)|191,826|
|200,401|(8,575)|191,826|
|Debt|
|Debts|falling|due|after|1|year|(50,000)|-|(50,000)|
|(50,000)|-|(50,000}|
|Total|150,401|(8,575)|141,826|
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IOL EDUCATIONAL TRUST
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Notes to the Financlal Statements for the year ended 31 August 2021
- Accounting policies
Basls 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. Accordingly, the Trustees consider it appropriate to continue to adopt the going concern basis in preparing these financial statements.
Significant judgements and estimates The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.
Revenue for provision of services is recognised when it is probable that an economic benefit will flow to the entity and the revenue and costs can be reliably measured. The Trust provide translator exams, the date of revenue recognition should be the date that the exam has taken place.
Costs are to be recognised at the date the service is provided, not the date of the invoice or payment. Accrued expenses are based on this.
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 wili be received and the amount can be measured reliably.
Investment income arises from interest bearing bank accounts and is recognised on a recelvabSe basis.
Donated services arise from the charity operating from 167 Fleet Street rent-free and are recognised on a receivable basis.
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 attrioutable to the activity on an accruals basis. Where costs cannot be directly attributed they have been aliocated to activities on a costs basis.
Support costs are those costs Incurred directly in support of expenditure on the objects of the charity and inciude 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:
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1OL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2021
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- Accounting policies - continued
TangjJble fixed assets
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.
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. Contributlons 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 partly 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.
Financiai 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 2021 the charitable company occupies 50% (2020: 70%) of the property and therefore is charged 50% (2020: 70%) of all shared costs.
Government grants
Government grants are recognised in accordance with the accruals model. The company received government grants in relation to the Coronavirus Job Retention Scheme relating to the year which is included in other operating income.
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Page 13
1OL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2021
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: : :
:
| 2. | Donations and legacies | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| £ | £ | ||||
| Donated facilities | 52,724 | 51,188 | |||
| 3. | Investment Income | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Depositaccount interest | 24 | 674 | |||
| 4, | Income from charitable activities | ||||
| 2021 | 2020 | ||||
| Examination fees | Activity Examinations |
£ 965,699 |
£ 905,589 |
||
| Centrefees | Examinations | 99,660 | 25,579 | ||
| Registration fees | Examinations | 450 | 4,600 | ||
| Appeals and re-marks | Examinations | 17,355 | 17,022 | ||
| 1,083,164 | 952,790 | ||||
| 5, | Charitabie activities costs | ||||
| Direct | |||||
| Costs | |||||
| £ | |||||
| Examination costs | 696,767 | ||||
| 6. | Support costs | ||||
| Information | |||||
| Management £ |
Finance £ |
technology £ |
|||
| Other resources expended | 916 | 9,289 | 74,007 | ||
| Human | Governance | ||||
| resources | Other | costs | Totals | ||
| £ | £ | £ | £ | ||
| Other resources expended | 213,838 | 146,751 | 5,160 | 449,961 | |
| 7. | Net Income/{expenditure) | ||||
| Net income/(expenditure) is stated after charging/(crediting): | |||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Auditors’ remuneration | 5,160 | 5,130 | |||
| Depreciation-ownedassets | 9,445 | 41,968 |
Page 14
IOL EDUCATIONAL TRUST
:
:
;
:
Notes to the Financial Statements - continued for the year ended 31 August 2021
8. Trustees’ remuneration and benefits
Trustee directors received remuneration of £34 (2020: £34) in respect of examiner's fees during the year.
Trustees’ expenses
Trustee directors were reimbursed ENil (2020: £241) for travel expenses in the year.
9. Staff costs
| Staff costs | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Wages and salaries Social securitycosts Other pensioncosts |
483,046 31,673 34,980 |
609,397 34,134 37,147 |
| 549,699 | 680,678 | |
| Theaveragemonthly number ofemployees during the yearwas as follows: | ||
| 2021 | 2020 | |
| Examinations Admin |
10 2 |
12 4 |
| 12 | 16 |
No employees received emoluments in excess of £60,000.
The key management personnel of the charitable company comprise the Chief Executive and the Head of Qualifications and Responsible Officer. The total employee benefits of key management personnel chargeable to the Trust were £124,032 (2020: £110,900).
10. Comparatives for the statement of financial activities
| Comparativesfor the statementthe statementstatementof financial activitiesactivities | |||
|---|---|---|---|
| Comparatives for the statementthe statementstatement of financial activitiesactivities | Unrestricted fund |
Restricted funds |
Total funds |
| £ | £ | £ | |
| Income and endowments from | |||
| Donations and legacies | 51,188 | - | 51,188 |
| Charitable actlvities | |||
| Examinations | 952,790 | - | 962,790 |
| Investment income | 274 | 400 | 674 |
| Other income | 75,996 | - | 75,996 |
| Total | 4,080,248 | 400 | 1,080,648 |
| Expenditure on | |||
| Charitable activities | |||
| Examination costs | 759,487 | - | 759,487 |
| Other | 571,624 | 400 | 572,024 |
| Total | 1,334,111 | 400 | 1,331,511 |
| NETINCOME/EXPENDITURE) | (250,863) | - | (250,863) |
Page 15
Notes to the Financial Statements - continued for the year ended 31 August 2021
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IOL EDUCATIONAL TRUST
| 10. | Comparatives forthe statement offinancial activities - continued Unrestricted fund |
Comparatives forthe statement offinancial activities - continued Unrestricted fund |
Comparatives forthe statement offinancial activities - continued Unrestricted fund |
Restricted funds |
Total funds |
|---|---|---|---|---|---|
| £ | £ | £ | |||
| Reconciliation offunds | |||||
| Total funds broughtforward | ) | 135,836 | 10,000 | 145,836 | |
| Total funds carriedforward | (115,027) | 10,000 | (105,027) | ||
| 11. | Tangible fixed assets | ||||
| Fixtures | |||||
| Plantand | and | Computer | |||
| machinery £ |
fittings £ |
equipment £ |
Totals £ |
||
| Cost | |||||
| At 1 September 2020 | 98,230 | 60,544 | 71,565 | 230,339 | |
| Additions | - | 480 | 3,750 | 4,230 | |
| At 31 August 2021 | 98,230 | 61,024 | 75,315 | 234,569 | |
| Depreclation | |||||
| At 1 September 2020 | 93,875 | 53,280 | 68,405 | 215,560 | |
| Charge foryear | 2,863 | 3,537 | 3,045 | 9,445 | |
| At 34 August 2021 | 96,738 | 56,817 | 71,450 | 225,005 | |
| Net book value | |||||
| At 31 August 2021 | 1,492 | 4,207 | 3,865 | 9,564 | |
| At 31 August 2020 | 4,355 | 7,264 | 3,160 | 14,779 | |
| 12. | Debtors: amounts falling duewithin one year | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Trade debtors | 7,655 | 7,144 | |||
| Other debtors | 163 | 14,819 | |||
| Prepayments and accrued income | 27,264 | 51,107 | |||
| 35,082 | 73,070 |
Page 16
1IOL EDUCATIONAL TRUST
: : : : : :
Notes to the Financial Statements - continued for the year ended 31 August 2021
13. Creditors: amounts falling due within one year
| 13. | Creditors: amounts falling due within one year | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Trade creditors | 25,713 | 20,260 | ||
| Social securityand other taxes Other creditors |
42,097 457,786 |
67,925 29,412 |
||
| Accrued expenses | 92,964 | 225,680 | ||
| 288,560 | 343,277 | |||
| 14. | Creditors: amounts falling due after morethan one year | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Other loans (see note 15) | 50,000 | 50,000 | ||
| 15. | Loans | |||
| An analysis ofthe maturity ofloans is given below: | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Amounts falling between one and two years: | ||||
| Other loans - 1-2 years | 10,000 | 10,000 | ||
| Amounts falling due between two and fiveyears: Other loans - 2-5 years |
40,000 | 40,000 | ||
| 16. | Movement in funds | |||
| Net | ||||
| movement | ||||
| At 1/9/20 | in funds | At 31/8/21 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | (115,027) | 2,939 | (142,088) | |
| Restricted funds | ||||
| The Susan Tolman Award Fund | 5,000 | - | 5,000 | |
| TheSimeon Potter Book Fund | 5,000 | - | 5,000 | |
| 16,000 | - | 40,000 | ||
| TOTALFUNDS | (105,027) | 2,939 | (402,088) | |
| Netmovement in funds, included in the above areas follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 1,148,667 | (1,146,728) | 2,939 | |
| TOTALFUNDS | 1,149,667 | (1,146,728) | 2,939 |
Page 17
IOL EDUCATIONAL TRUST
Notes to the Financial Statements - continued for the year ended 31 August 2021
: : : =: : :
:
46. Movement in funds - continued
Comparatives for movement In funds
----- Start of picture text -----
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Net|
|movement|
|At|1/9/49|in|funds|At|31/8/20|
|£|£|£|
|Unrestricted|funds|
|General|fund|135,836|(250,863)|(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|145,836|’|(250,863)|(105,027)|
|Comparative|net movement|in|funds,|included|in|the above are as|follows:|
|Incoming|Resources|Movement|
|resources|expended|In|funds|
|£|£|£|
|Unrestricted|funds|
|General|fund|41,080,248|(1,331,141)|(250,863)|
|Restricted|funds|
|The|Susan|Tolman Award|Fund|200|(200)|-|
|The|Simeon|Potter|Book|Fund|200|(200)|-|
|400|(400)|-|
|TOTAL FUNDS|1,080,648|(1,331,511)|(250,863)|
|A|current year|12|months|and|prior year|12 months|combined|position|is|as|follows:|
|Net|
|movement|
|At|1/9/19|in|funds|At|31/8/24|
|£|£|£|
|Unrestricted|funds|
|General|fund|135,836|(247,924)|(412,088)|
|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|145,836|(247,924)|(102,088)|
----- End of picture text -----
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IOL EDUCATIONAL TRUST
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Notes to the Financial Statements - continued for the year ended 31 August 2021
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:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 2,229,915 | (2,477,839) | (247,924) |
| Restricted funds | |||
| The Susan Tolman Award Fund | 200 | (200) | - |
| The Simeon Potter Book Fund | 200 | (200) | - |
| 400 | (400) | - | |
| TOTALFUNDS | 2,230,315 | (2,478,239) | (247,924) |
The Susan Tolman Continuing Professional Development Prize exists to provide a prize to the best DPSI candidate. During the year £Nil (2020: £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 £Nil (2020: £200) was awarded and is deemed to be the interest earned on the fund.
17. Employee benefit obligations
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 £5,535 (2020: £12,748).
18. Related party disciosures
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 £21,810 (2020: £7,678) to the Chartered Institute of Linguists and paid costs of £64,917 (2020: £369,764). Recharges of £100,270 (2020: £141,487) 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 £152,251 (2020: £16,664).
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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Detailed Statement of Financial Activities for the year ended 31 August 2021
| 2024 | 2020 | |
|---|---|---|
| £ | £ | |
| Income and endowments | ||
| Donations and legacles Donated facilities |
62,724 | 51,188 |
| Investment Income | ||
| Deposit account interest | 24 | 674 |
| Charitable activitles | ||
| Examination fees | 965,699 | 905,589 |
| Centre fees | 99,660 | 25,579 |
| Registration fees | 450 | 4,600 |
| Appeals and re-marks | 17,355 | 17,022 |
| 1,083,164 | 952,790 | |
| Other income | ||
| Furlough income | 13,755 | 75,996 |
| Total Incoming resources | 1,149,667 | 1,080,648 |
| Expenditure | ||
| Charitable activities | ||
| Staff costs | 289,509 | 367 579 |
| Social security | 31,673 | 34,134 |
| Pensions Printing Marketing Other direct costs |
14,979 45,606 2,225 4,869 |
16,131 37,143 4,500 4,153 |
| Costofsettingexams Examiners’ fees & expenses Moderators’ fees & expenses |
97,166 166,309 28,475 |
61,459 144,521 37,768 |
| Co-ordinators Interlocutors' fees |
(1,184) 60,140 |
28,360 26,739 |
| 696,767 | 759,487 | |
| Support costs Management Insurance |
916 | - |
| Finance | ||
| Bankcharges | 9,289 | 4,484 |
| Information technology | ||
| Telephone Repairsand renewals |
70,479 3,528 |
87,459 5,121 |
| 74,007 | 92,580 | |
| Human resources | ||
| Wages Carriedforward |
193,537 193,537 |
241,818 241,818 |
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1OL EDUCATIONAL TRUST
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Detailed Statement of Financial Activities for the year ended 31 August 2021
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Human resources | |||
| Brought forward Pensions Staff training and recruitment |
193,537 20,001 300 |
241,818 21,016 41,938 |
|
| 213,838 | 274,772 | ||
| Other | |||
| Rent & rates | 52,724 | 54,188 | |
| Postage and stationery | 405 | 7,249 | |
| General expenses | 19,467 | 25,604 | |
| Travel and subsistence | 244 | 8,628 | |
| Annual! prize giving Accountancy fees |
4,823 61,709 |
6,035 75,401 |
|
| Legalfees | 934 | 8,985 | |
| Plant and machinery | 2,863 | 2,676 | |
| Fixtures and fittings Computer equipment |
3,537 3,045 |
3,737 5,555 |
|
| 146,754 | 195,058 | ||
| Governance costs | |||
| Auditors’ remuneration | 5,160 | 5,130 | |
| Total resources expended | : | 1,146,728 | 1,331,511 |
| Netincome/(expenditure) | 2,939 | (250,863) |
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Page 21
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