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2024-08-31-accounts

Registered number: 04297497 Charity number: 1090263

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 4
Trustees' responsibilities statement 5
Independent auditors' report on the financial statements 6 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 28

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024

Trustees H J Morgan, Chair (Appointed 25 April 2024) M A Cazzoli, Vice Chair (Appointed 25 April 2024) S Doswell, Chair of CIOL Council S Colaiacomo, Trustee C Lindner, Trustee A S Rossell, Trustee Y Vercher, Trustee (Appointed 25 April 2024) N Mair, Trustee Director (Retired 25 April 2024) J Wyburd, Former Chair (Retired 25 April 2024)

Company registered number 04297497 Charity registered number 1090263 Registered office Star House Star Hill Rochester ME11UX Company secretary TC Kent Limited Independent auditors Cooper Parry Group Limited Statutory Auditor New Derwent House 69-73 Theobalds Road Holborn London WC1X 8TA

Page 1

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2024

Objectives and activities

Aims and objectives of the charitable company

The IoL Educational Trust (IoLET) is the associated charitable company of the Chartered Institute of Linguists and has the charitable object of:

The promotion of the teaching and study of modern languages and of cognate educational subjects and in or towards the advancement of educational learning, and the dissemination of knowledge of, modern languages in all their aspects, and in particular the determining of standards and criteria and the setting and holding of examinations for students of modern languages and other persons desiring to attain recognition of their proficiency in one or more of such languages.

Review of the business

IoLET has generated an operating deficit of £108k in the 2023/24 financial year, following a surplus after exceptional items. Demand for qualifications remains lower than in prior years for the key public service interpreting and translation qualifications which enable and support the pipeline of qualified language professionals, but significant cost savings and efficiencies have reduced IoLET’s deficit considerably.

CIOL Council has voted to support and underwrite financially the delivery of qualifications for the financial year 2023/24 (as it did in 2022/23) which continues to underpin the charitable company. CIOL’s Council considers the professional qualifications that are delivered in its name to be a vital part of delivering the mission and public benefit of the Chartered Institute of Linguists, in supporting and qualifying linguists to the highest standards of professional and linguistic competence.

In this wider endeavour, qualifications and membership work together to support the pathways which accredit, develop, support and represent professional linguists. A key part of CIOL’s Royal Charter is ensuring that there is a pipeline of qualified language 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.

Key financial performance indicators

IoLET’s final operating deficit was £108k. As above IoLET has a letter of ongoing financial support from CIOL which gave access to additional cash and investment reserves to support the ongoing provision of high-quality language qualifications in 2023/24. CIOL Council consider the provision of professional language qualifications a key part of delivering CIOL’s Royal Charter objects and wider purpose.

Financial review

Principal funding sources

IoLET’s funding comes primarily from exam fees. Expenditure in the year was principally related to the development, production, online delivery, assessment and marking of exams, with additional expenditure on ongoing Ofqual compliance, quality and assurance activities such as Assessment Associate (AA) training, policy development and update etc.

Reserves policy

IoLET has a Reserves & 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. CIOL Council has approved the use of CIOL’s cash balances and reserves to support IoLET as needed.

Page 2

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

Future plans

With the degree-level Certificate in Translation (CertTrans) now established in the UK and international marketplace, CIOL now has a benchmark professional qualification for early career linguists, alongside the longstanding master’s level Diploma in Translation (DipTrans) and the UK-orientated Diploma in Public Service Interpreting (DPSI). To this, CIOL added Language Level Assessments and Certified English in 2023, as assessments of spoken language skills which draw on approaches successfully used in major government contracts.

Cost savings, increased productivity and systems improvements mean that if market conditions improve and candidate numbers increase, IoLET will see improved financial performance. IoLET’s cost base is transformed versus prior years and unrecognisable from the cost base pre-pandemic.

As part of the Chartered Institute of Linguists’ wider mission CIOL Qualifications continue to underpin professionalism within the languages sector; to provide the routes to qualifications that underpin the value of professional linguists as well as the wider educational, social and cultural infrastructure of languages, which supports learners to become future exam candidates and successful linguists. For this reason, the Chartered Institute of Linguists is committed to their ongoing support.

Structure, governance and management Charity constitution

In 2001 the Educational Trust became a charitable company (called initially the Institute of Linguists Educational Trust and then, with the grant of Charter, the name was changed to IoL Educational Trust (IoLET). It 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 IoL Educational Trust is a Registered Charity (Charity Number 1090263).

The members of IoLET are appointed annually by the Council of CIOL and normally comprise the CIOL Council members themselves. CIOL Council members confirm by signature their acceptance of appointment. A register of members is maintained by CIOL.

CIOL Council members appoint Trustee Directors to form the Educational Trust Board (ETB). Appointment of the ETB normally takes place annually at the IoLET AGM. The ETB comprises at least five members, which includes ex officio the Chair of Council of the Chartered Institute of Linguists who periodically appoint a Chair of ETB from their number.

Recruitment, training, induction and appointment of new Trustee Directors

CIOL recognises the importance of providing effective induction and training for members of the ETB. Their induction includes participation in an annual joint CIOL/CIOL Qualifications Strategy Awayday, regular ‘sounding boards’ on strategy and futures, comprehensive briefing documents on policies and performance and induction through online meetings with the Chief Executive and Chair of ETB, the Head of Qualifications & Responsible Officer and the Executive Officer.

Organisational structure

The ETB is responsible for the overall strategy, sustainability and performance of IoLET and is accountable for the ongoing quality and compliance of registered qualifications with Ofqual, QiW and CCEA regulations and with the range of regulatory responsibilities that come with that.

The ETB monitors the performance of qualifications and advises on quality and standards issues, development matters, reviews and on wider CIOL work in standards and other non-regulated assessment activities.

The ETB supports, challenges and guides the Chief Executive and Head of Qualifications & Responsible Officer in all aspects of the development and delivery of qualifications and work in standards and

Page 3

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

assessment delivered though IoLET and is responsible for the good use of resources in line with the IoLET Memorandum and Articles of Association.

Key management remuneration

The ETB consider the Chief Executive and the Head of Qualifications to be the key management personnel of IoLET. The pay of senior staff is set 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 IoL Educational Trust is the associated charity of the Chartered Institute of Linguists. The ETB includes the Chair of Council of the Chartered Institute of Linguists.

Risk management

The ETB closely monitors the performance and delivery of exams in the light of the prevailing market, economic, and political and social context and reviews a full risk register on a six-monthly basis. CIOL’s successful move to wholly online delivery and remote working during the pandemic significantly mitigated the costs and risks associated with face-to-face and physical exam delivery.

Approved by order of the members of the board of Trustees on and signed on their behalf by:

................................................

H.J. Morgan (Chair)

Page 4

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees on and signed on its behalf by:

................................................

H.J. Morgan Chair

Page 5

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT 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 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 6

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IOL EDUCATIONAL TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon.

The Trustees are responsible for the other information contained within the Annual report.

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.

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 course of 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, 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.

Page 7

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IOL EDUCATIONAL TRUST (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 an Auditors' report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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 focused 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 and UK tax legislation. 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. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all 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. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

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

Page 8

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IOL EDUCATIONAL TRUST (CONTINUED)

Use of our report

This report is made solely to the charitable Company's members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Cooper Parry Group Limited

Jane Wills (Statutory auditor) New Derwent House 69-73 Theobalds Road Holborn London WC1X 8TA

Date:

Cooper Parry Group Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 9

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024

Note
Income from:
Donated Services
2
Examinations
3
Investment income
4
Exceptional item
5
Total income
Expenditure on:
Charitable activities:
6
Examination costs
. Other charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2024
£
-
-
-
-
-
-
-
-
-
10,000
-
10,000		 Unrestricted
funds
2024
£
73,195
392,905
610
127,215
593,925
402,637
172,566
575,203
18,722
(68,676)
18,722
(49,954)		 Total
funds
2024
£
73,195
392,905
610
127,215
593,925
402,637
172,566
575,203
18,722
(58,676)
18,722
(39,954)		 Total
funds
2023
£
-
454,892
311
-
455,203
425,780
(390,969)
34,811
420,392
(479,068)
420,392
(58,676)

Continuing operations

All income and expenditure has arisen from continuing activities.

Page 10

IOL EDUCATIONAL TRUST (A company limited by guarantee) REGISTERED NUMBER: 04297497

BALANCE SHEET AS AT 31 AUGUST 2024

2024 2024 2023 2023
Note £ £
Fixed assets
Tangible assets 10 218 954
218 954
Current assets
Debtors 11 6,452 10,006
Cash at bank and in hand 33,790 25,024
40,242 35,030
Creditors: amounts falling due within one
year 12 (70,432) (75,309)
Net current liabilities (30,190) (40,279)
Total assets less current liabilities (29,972) (39,325)
Creditors: amounts falling due after more
than one year 13 (9,982) (19,351)
Net liabilities excluding pension asset (39,954) (58,676)
Total net assets (39,954) (58,676)
Charity funds
Restricted funds 14 10,000 10,000
Unrestricted funds 14 (49,954) (68,676)
Total funds (39,954) (58,676)

The financial statements were approved and authorised for issue by the Trustees on Complete section and signed on their behalf by:

................................................

H.J. Morgan Chair

Page 11

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Interest received
Net cash provided by investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22		 2024
£
17,526
-
610
610
(9,369)
(9,369)
8,767
25,024
33,791		 2023
£
(45,804)
387
311
698
(9,998)
(9,998)
(55,104)
80,128
25,024

Page 12

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. Accounting policies

1.1 Basis of preparation of 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.

1.2 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.

1.3 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 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.

1.4 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.

Page 13

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. Accounting policies (continued)

1.5 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.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Database - 33% per annum on a straight line basis Computer equipment - 25% per annum on a straight line basis

1.7 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.8 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.

Page 14

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. Accounting policies (continued)

1.9 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.

1.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.11 Donated Services

The charity receives donated services from supporting company, including shared overheads and staff costs. These are recognised as income in the financial statements at the fair value of the resources provided. Corresponding expenses are recorded to reflect the use of these services, ensuring a true and fair view of the charity's financial position in compliance with FRS102 SORP.

Page 15

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

2. Donated Services

Unrestricted
funds
2024
£
Donations
Overheads
27,550
Staff salaries costs
45,645
Donated Services
73,195		 Total
funds
2024
£
27,550
45,645
73,195		 Total
funds
2023
£
-
-
-

3. Income from charitable activities

Unrestricted
funds
2024
£
Examination fees
384,582
Centre fees
-
Registration fees
8,323
392,905
Unrestricted
funds
2023
£
Examination fees
393,782
Centre fees
56,145
Registration fees
4,965
454,892		 Total
funds
2024
£
384,582
-
8,323
392,905
Total
funds
2023
£
393,782
56,145
4,965
454,892

Page 16

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

4. Investment income

Deposit account interest
Deposit account interest
5.
Exceptional item
CIOL Donated Support
6.
Analysis of expenditure on charitable activities
Summary by fund type		 Unrestricted
funds
2024
£
127,215		 Unrestricted
funds
2024
£
610
Unrestricted
funds
2023
£
311
Total
funds
2024
£
127,215		 Total
funds
2024
£
610
Total
funds
2023
£
311
Total
funds
2023
£
-
Unrestricted
funds
2024
£
Direct costs
403,717
Support costs
171,486
575,203		 Total
2024
£
403,717
171,486
575,203

Page 17

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

6. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Unrestricted
funds
2023
£
Direct costs
425,780
Support costs
(390,969)
34,811		 Total
2023
£
425,780
(390,969)
34,811

7. Analysis of expenditure by activities

Direct costs
Support costs
Direct costs
Support costs		 Activities
undertaken
directly
2024
£
403,717
-
403,717
Activities
undertaken
directly
2023
£
425,780
-
425,780		 Support
costs
2024
£
-
171,486
171,486
Support
costs
2023
£
-
(390,969)
(390,969)		 Total
funds
2024
£
403,717
171,486
575,203
Total
funds
2023
£
425,780
(390,969)
34,811

Page 18

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff salaries
Social security
Pensions
Printing
Marketing
Cost of setting exams
Examiners' fees & expenses
Moderators' fees & expenses
Interlocutors' fees		 Activities
2024
£
232,020
19,095
18,334
270
464
86,115
28,894
14,446
4,079
403,717		 Total
funds
2024
£
232,020
19,095
18,334
270
464
86,115
28,894
14,446
4,079
403,717
Staff salaries
Social security
Pensions
Printing
Marketing
Cost of setting exams
Examiners' fees & expenses
Moderators' fees & expenses
Interlocutors' fees		 Activities
2023
£
213,129
25,371
8,496
9,808
17,330
86,479
36,347
23,079
5,741
425,780		 Total
funds
2023
£
213,129
25,371
8,496
9,808
17,330
86,479
36,347
23,079
5,741
425,780

Page 19

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Insurance
Sundries
Bank charges
Telephone
Postage & Stationery
General expenses
Consultancy fees
Accountancy fees
Plant and machinery
Computer equipment
Auditors' remuneration
Overhead staff salaries		 Activities
2024
£
485
1,334
7,633
28,212
90
28,685
238
49,800
71
666
8,627
45,645
171,486		 Total
funds
2024
£
485
1,334
7,633
28,212
90
28,685
238
49,800
71
666
8,627
45,645
171,486

Page 20

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

7. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Hire of plant and machinery
Insurance
Sundries
Management fee
Bank charges
Telephone
Wages
Social security
Pensions
Postage and stationery
General expenses
Consultancy fees
Annual prize giving
Accountancy fees
Fixtures and fittings
Computer equipment
Auditors' remuneration
Intercompany loan write off		 Activities
2023
£
624
682
1,991
183,779
9,227
27,107
63,662
7,578
12,196
973
1,933
2,500
597
55,282
524
1,606
7,921
(769,151)
(390,969)		 Total
funds
2023
£
624
682
1,991
183,779
9,227
27,107
63,662
7,578
12,196
973
1,933
2,500
597
55,282
524
1,606
7,921
(769,151
(390,969

8. Staff costs

The average number of persons employed by the Company during the year was as follows:

2024 2023
No. No.
Employees 5 9

No employee received remuneration amounting to more than £60,000 in either year.

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 £129,911 (2023: £117,144).

Page 21

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 August 2024, no Trustee expenses have been incurred (2023 - £NIL).

10. Tangible fixed assets

Cost or valuation
At 1 September 2023
At 31 August 2024
Depreciation
At 1 September 2023
Charge for the year
At 31 August 2024
Net book value
At 31 August 2024
At 31 August 2023
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Computer
equipment
£
4,338
4,338
3,491
666
4,157
181
847		 Plant and
machinery
£
98,446
98,446
98,339
70
98,409
37
107
2024
£
395
-
6,057
6,452		 Total
£
102,784
102,784
101,830
736
102,566
218
954
2023
£
-
1,020
8,986
10,006

11. Debtors

Page 22

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

12. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
13.
Creditors: Amounts falling due after more than one year
Other loans		 2024
£
10,649
598
5,365
3,707
50,113
70,432
2024
£
9,982		 2023
£
10,649
285
6,875
4,070
53,430
75,309
2023
£
19,351

Page 23

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

14. Statement of funds

Statement of funds - current year

Unrestricted funds
Reserves
Restricted funds
The Susan Tolman Award Fund
The Simeon Potter Book Fund
Total of funds		 Balance at 1
September
2023
£
(68,676)
5,000
5,000
10,000
(58,676)		 Income
£
520,730
-
-
-
520,730		 Expenditure
£
(502,008)
-
-
-
(502,008)		 Balance at
31 August
2024
£
(49,954)
5,000
5,000
10,000
(39,954)

Page 24

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
The Susan Tolman Award Fund
The Simeon Potter Book Fund
Total of funds		 Balance at
1
September
2022
£
(489,068)
5,000
5,000
10,000
(479,068)		 Transfers
in/out
£
420,392
-
-
-
420,392		 Balance at
31 August
2023
£
(68,676)
5,000
5,000
10,000
(58,676)

15. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 1
September
2023
£
(68,676)
10,000
(58,676)		 Income
£
520,730
-
520,730		 Expenditure
£
(502,008)
-
(502,008)		 Balance at
31 August
2024
£
(49,954)
10,000
(39,954)

Page 25

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

15. Summary of funds (continued)

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1
September
2022
£
(489,068)
10,000
(479,068)		 Transfers
in/out
£
420,392
-
420,392		 Balance at
31 August
2023
£
(68,676)
10,000
(58,676)

16. Summary of funds - continued

The Susan Tolman Continuing Professional Development Prize exists to provide a prize to the best DPSI candidate. During the year £nil (2023: £nil) 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 (2023: £nil) was awarded and is deemed to be the interest earned on the fund.

17. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2024
Unrestricted
funds
2024
£
£
-
218
10,000
30,242
-
(70,432)
-
(9,982)
10,000
(49,954)		 Total
funds
2024
£
218
40,242
(70,432)
(9,982)
(39,954)

Page 26

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
-
954
10,000
25,030
-
(75,309)
-
(19,351)
10,000
(68,676)		 Total
funds
2023
£
954
35,030
(75,309)
(19,351)
(58,676)

18. 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 £2,923 (2022: £3,370).

19. Related party disclosures

During the year, the Chartered Institute of Linguists (an associated company) fully wrote off the remaining balance as a donation. This included the total amount owed by the charity for management charges and loans, amounting to £127,215.

20. 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.

Page 27

IOL EDUCATIONAL TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease / (increase) in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1
September
2023
£
Cash at bank and in hand
25,024
Debt due within 1 year
(10,649)
Debt due after 1 year
(19,351)
(4,976)		 2024
2023
£
£
18,722
420,392
737
2,130
(610)
(311)
3,554
14,494
(4,877)
(482,509)
17,526
(45,804)
2024
2023
£
£
33,791
25,024
33,791
25,024
Cash flows
At 31
August 2024
£
£
8,766
33,790
-
(10,649)
9,369
(9,982)
18,135
13,159

Page 28