Ch4rity Registrx¢ioth No. IIW2321 Company RegFStratlon 03563 HULT tNrERNATIONAL BUSINESS SCHOOL LTD {a eompany limited by guarantee) Annual Rep)rt and Finaneial Statements For the year ended 31 July 2022
HULT INTERNATIONAL BUSINESS SCHOOL LTD {a company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEmErs 2021 CONTENTS Page Officers and profe85ion•l *dvisers Str8t¢gic report Trustees. report Ind¢pendent Auditor'$ Repbrt 10 Statement of activities (itycluding iDcome aTrd expend1 ac¢¥Junt) 14 Balance sheet 15 Cash flow ststement 16 Notes to the (ysh flow ststeme#t 17 Noie5 to tbe 1SnaNciBI st•temeDts
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guaralltee) ANNUAL REPORT AND FINAI¥CIAL STATEMENTS 2022 OFFICERS AND PROFESSIONAL ADVISERS CHARITY REGisfRATION NUMBER: 1092321 COMPAf4Y REGIsfRATiof4 NUMBER: 03(K15603 OFFICE FOR STUDEf4TS REGISTRATION NUMBER: 10003212 REGISfERED OFFICE 33-35 Commercial Road London EI ILD WEBsrrE ADDRESS www.hult.edu TRUSTEES D Bennett R Goonesena F Henriksson R Beltzer DEAN lan tgaI COMPANY SECRETARY Emilie Mccarthy BANKERS Lloyds TSB Bank PIC 2 Floor, 39 Threadncedl¢ Streei iA)ndon Eff2R 8AU AUDITOR Knox Cropper LLP 65 Leadenhall Stre London EC3A 2AD
HULT INTERNATIONAL BUSINESS SCHOOL LTD (8 Company limited by guarantee) STRATEGIC REPORT For the year ended 2022 OBJECTIVES AND AcfIviTIES The principal charitable obje¢llve of Huh Intrrnationai Busines5 SchCt (Ihe S¢hool-) is the provision of higher educatiottal courses. servie¢s and facilities ai university level. ITh particular. it aims to provide and promote.. undergraduate major pro masters degree program4 5cholarship5 for exceptionally w¢ll-qualified Sdents from all over the woAd SbJdy at the SclK>oI, thus rdising academic quality and exp¢ctatL0115.' and a ¢arin8 environmcnt lor th¢ pursuit of academic and experiential l¢arning living in central ndoll. The provisiort of higher educational wurses is conducted through the Sch(xyl. The long term objective is to lId a renowned wiiver5ity- CHANGE OF ACCOUThNG PERIOD In the prior period the accountirtg reference date w&s ¢han8ed to 3111 2021. hence making the compatxtive p¢riod for these financial Statements the 10 month$ ending 31Y July 2021. PLANS FOR FUTURE DEVEiA)PMENT Student numbers ar¢ back to Whe they were before COVltk19 lockdown Student enrolment and retention have thowtt strong results and th¢ School expects 10 continlte th¢ lTrcre in siudent intske in year5 to come. The board of directors have contrnuously monttored the simion in Ukraine and the impact for the business in regards to the financial slalemeNts and going ¢ODC¢rn. FINANCIAL REVIEW The final resuli of FY2022 wd5 a surplus of £0.9m {FY2021: surplus of £0.6ml for the School, which decreased the net liabilities to £IOm in FY2022 rM £10.9m in FY2021. The inrrrdse in the surplus between the periods is due to the change in the financial year shortened to 31 July during FY21. makin8 a 10 month finan¢ial period. The School received a donation under gift of £0.35m IFY2021.. £0.25ml during the financial peri¢xi. ACHIEVEMENT. PERFORMANCE AND KEY PERFORMANCES INDICATORS ("KPl$") The tSte¢S consider Siudenl numbets {latget of 5°h 5U5tainable long-tenn growth over a fJv¢-year cycle}, student satisfaction. as page 3. (targd tsf 4.0 and aVe) and diversity (whilst there 15 no current stipulated target for diversity. the trnstees consider Current diversity of the student body to excellent) to be key perfornionce indicatOT5. Student satlsfaaion is also tracked and dl faculties ar¢ ratd for ev¢ry ctsurse they teach creating the Faculty Evaluation score which is tracked and analysed after every module. Targdsare b&sedon a scale of the level of student sat15faction in surveys Carri OUL
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by gvarantee) STRATEGIC REPORT {eontinued) For the yegr ended 31 July 2022 ACHIEVEMENT, PERFORMANCE AND KEY PERFORMANCLS INDICATORS ("KPls") (contlnued) sruDEprf NUMBERS In FY2022 there wete 1,5 16 Students {FY2021.. 1,465), of whi¢h 833 s(arted (FY2021= 734) and 683 (FY2021.' 731) eontinued iheir Studies * the School. 2022 Intske New ReturDerJ 2021 Intak¢ New Retuniers UG EMBA 313 19 150 282 68 627 36 18 290 45 91 232 76 678 53 MIM Tot•1 833 683 734 731 STUDENT SATISFACTION The 5urv¢y question was"OveraJl. how $8ti5fied Were you with y(MJr studies? on 8 Scale from I to 5. 31 Juty 31 Jllly 21122 2021 UG EMBA MBA MIB MIM 4.00 4.33 4.12 3.79 4.56 3.74 3.71 DIVEIi8ITY FY2022 The School had 142 nionalitie5 enrolled at the S¢ho)l and out ofthe ts)tal l J16 strJdents 44Yti were female and 56°/ts male IFY2021.. 1,465 s(udents 44Vo were fcmal¢ arml 56Yo mal¢). PRINCIPAL RISKS AND UNCERTAIwfiES The truste¢s have txaMit) the major risks that the S¢11 fxes and have documented these in a risk regtster, which is updated on a periodic basLS. The School h&$ d¢veloped systems io monitor and Control ihese risk5 to mitigate any irnpa¢t that they may have on the S¢h(K)l in the futhre. Prior io COVID-19, the primary identified risk was reduced student numbers due to BrexiL should the UK visa njles ¢hange in the tre. Th¢ EK)ard continuously Montr9 thc regulatory environment and does no¢ see this risk as material. The covir>19 virus has had an impact on higher<du¢*ion 8lobaily but the School has 5uceessfully mitigated th¢ risk of material decrease in tnrolment and th¢ student numbers are now back to pre-covid levels. Moreover. the School 15 a cost plus entÉty with the educat)al revenue guaranteed by Hult International Business School, Inc. (the US charity), so il will always generdte a surplus and the US Charity has a stron8 fJnan¢ial position.
HULT INTERNATIONAL BUSINESS SCHOOL LTD
(a company limited by guarantee)
STRATEGIC REPORT (continued) For the year ended 31 July 2022
GOING CONCERN
The School made a surplus of £0.9m (FY2021: surplus of £0.6m) for the period ended 31 July 2022 reducing negative reserves to £I Om (from £10.9m in FY2021) in line with expectations. The charity has £20.3m (FY2021: £22.8m) of creditors. However, this includes £ 13.6m (FY2021: £ 14.8m) of creditors falling due after more than one year. The School has net current liabilities of £2.1 m (FY2020: £ 1.9m) and loans due after one year of£ 12.25m (FY2021: £13.Sm).
The 2015 loan agreement between the School and Hult International Business School AG includes terms that if the annual amortisation payment or interest payments would endanger the solvency of the School, the parties shall enter into discussions and agree on a reduced amortisation payment that may equal zero. The School services the loan with annual repayments of £250k and as of31 July 2021 the remaining loan balance was £12.Sm. During FY2022 additional £ 1 m repayment of loan was made during the year along with the annual repayment of £250k.
The charity is operating on cost-plus basis where the costs are recharged to Hult International Business School, Inc. (a US charity) with a mark-up on an arm's length basis. The US charity has strong financials and an excellent liquidity position, hence, the revenue risk for the charity is low.
The trustees have continued to prepare the financial statements on a going concern basis. Further details regarding the going concern basis can be found in the accounting policies (note 1 on page 14 to the financial statements).
Approved by the Board of Trustees and signed on behalfofthe Board
R Goonesena Trustee Date: b / I l t L /
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HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarantee) TRUSTEES, REPORT For the year ended 31 July 2022 The trustees have cknsen in accordance with section 414C (I l) of the Companies Act 2006 to selout in the cotnpany's strdlegic report the following which the tntte$ believe to k of strategic imTK>rtatJce. The kh(K)l is a company limited by 8uarat)tee and a re8iStered charity governed by its MeTnordThdum and Articles of Associaiion. The directors of the company (referred to as the Schwl in this reixjrt), are lis trustees for the purpose5 of chariiy law and throllghoui this rert are colle]VelY referred to as thc trustees. Th¢ trusttt5 present th¢ir report and f2¢1a1 statements for the peri(yJ enda 31 July 2022. STRUCTURE, GOVERNANCE AND MANAGEMENr Due to the charity being limited by guarantee. exh tsu¢¢ undertake5 to wntribute such amowii as may be required. not exceeding £l.O(K) each, io the charity's &ssets if it should be wound up while he or she is a trustee or within one year after he or she ceas¢s to be a tnte¢. The trusttts serve wtth(L remuneration. The Arti¢1¢5 of AssocÉation pVIde for mtation of thjstees. The trustees wl¥) servtd during ihe period and subsequently are noted on page l. The board of trustee$ hold fonnal meetithgs as reqIred discuss the perfomiance of the School, ¢oYering academic issues, student re¢ruitmenL 5tudenl retention and satisfa¢iion. finaneial perfomiart¢e. governance and other issues. The key management personnel ore the CEO and the Deans. Remuneration for tnanagement personnel i5 d¢tern)ined by current market cotmlitions. experience and sktlls. These budgeting items are approved by the IMTrard of trnstees. PLAJ¥S FOR FUTURE DEVELOPMENT Details of the plans for re developm¢ntS Can be found in the Strategic R¢EX on page 2. PRINCIPAL RISKS AND UNCERTAIKfiES Details of the prirtcipal risks and uncertsintics can b¢ found in the Strategic Report on page 3. TRUStEE APPOINTMENT, INDU10 AND TRAINING The method of appointment and retirement by rotstion of the trustees is setout in the charity's Articlesof Association. Trustee appointments ar¢ made b&8ed on the expertise atMI skills brought by the individua15 involved. The trustees receive further trainitjg trustee meelings as required. No induction training was required &s there were no new trusiee5 appointed ID ihe period. TRUSTEES, INDEMiYITIES The Charity has made qUlfyIng third party indemnity provisions for the benefit of its trustees which were made durin8 ihe period and remain in force at the d¢ of this repTrrt. TRUSTEES, RESPONSIBILITIES sfATEMENT The tru5tecs (who are also directors of the School for the purposes of ciNnp8ny law) are restrt)nsible for preparing the TTUStees' Annual Report and the financial statements in xcordanee with applicable law and United KingdtsTn Accounting Standards (United Kingdom Generally Arcwed Accoltnting Practice). in¢luding FRS 102"The FinaJ]cial RetK)rting Standard appliL¥ble in the UK and Republic of Ireland-. Comparty law requtres the trustees to Prepa financiaj statements foreach finan¢ia] period which give a true and fair view of the siaie of affair5 01 the charitable company and of the inc4>ming resource5 and application of resources. in¢ludin8 the income and expendiiure, of the charitable cotnpany for that period. In preparing these flnancial statements, the trustees are required to.. 5elcct suitable a¢¢ountin8 pTrliei¢s and then apply them consisieiitly- observe the methods and principles in the Charities SORP. make jud8rnents and esiimate5 that are r¢a9)nable and pn]denL state whether applicable UK Ac¢owiting Standards have been followed- and prepar¢ the finartcial statements on the going concem basis unl¢sS li is inappropriate to presume that the charitable company will continue in business.
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a eompany limited by guarantee) TRUSTEES, REPORT (continued) For ihe year ended 31 July 2022 TRUSTEES, RESPONSIBILITIES sfATEMEKf {coDtitived) The trllstees are resronsible for keeping adequate accounting rewrds thai disclose with re&sonable accuracy at any time the financial Posiiion of the charithble cornpany and enable them to ensure the financial siatetTrents comply with the Companie$ A¢1 2006. They are also resrMTrnsible for safcguarding ¢he assets of the charitable company and hence for taking reasonablt steps for Ihe prevention and detrction of fraud and other irregulariries. The ttiistees are resnsible for the mairttcnance atKI int¢grity of the corpornte and r]nancial infomjation included on the School's website. Ltgislation in ihe United KiThgdom governing the preparation and disseminalion of fJnan¢ial statements may differ from legislation in other Jl¢tionS. PUBLIC BENEFIT The trnstee5 have complied with their duty in section 4 of the Chartties Act 2011 io have due re8ard to Public Benefjt guidan¢e published by the Charity Commission. The irustee5 provide a public benefEt priwnarily by awarding Kholarships students WIM) would otherwise not be in a )sition to fund iheir studies. This academic year the School had 26 fiLII scholars. The ethos of awardin8 scholarships remains a high priority within the Insti110n and is aimed at sdertts with exceptional academic edue•ional qua]ities and those in financial need. Thc Scknol also conducts and disseminates res¢arth by its faculty. RESERVES POLICY The S¢hool currently ha5 negatÈve reseThe50f £IOm {FY2021: £10.9m). The trustees klieve th* the tletasset position will build up again and are confidetjt ihatthe SclMy)l is on track to make sutplu5es &$ it is a ¢ost-plu5 entity which will restore and build reserves to an adequate level. The reserves w)licy 1$ to reach a p)sitive net a55ets level of reserve with a long¢r-terTn objectiv¢ of having reserves equal to It le&%t ¢)ne year's costs &s an adequate re5erv¢s level. AUDITOR Each of the persons who is a trusttt at the date of approval of this annual report confimis that.. so far as the trustee is awar¢ there is no relevantaudit infornwion of whÉch the charity's auditor ts unaware.. the IStee h&s tsken all the steps that he ought to have as a trus to make himself aware of any relevant audit infortnalion and to estsblish that the eharity'5 auditor is aware of that infomiation. This ¢onfirmation is given and should be inlcrpreted in am)rdancc with the pmvi$ion5 of s418 of the Companies Act 2006. Approved by thc Trustees and signed on the behr R Goone5ena Trustee j 11 l ¥
HULT INTERNATIONAL BUSINESS SCHOOL LTD {a company limi¢ed by guarantee) ST ATEMENT OF CORPORATE GOVERNANCE AND INfERNAL CONTROL for the year ended 31 July 2022 This stsiement of Corporate Governance ar¥J Intrrnat Control covers the peri for the yearended 31 July 2022 and up io the date of approval of the financial ststements. GOVERNANCE The Tru5te¢s are lisied withiTr th¢ Offic¢r5 and Professional Advisers. The constitution of the board ensures that no tndividual dominates the decision-tnaking presS and thai it can exercise its re5ponsibiliiies independently from the management of the S¢hool. The iY)ards regulatory and stewardship respon$ibilrtie5 centr¢ ort ils role Is the ultimate legal authorrty and for safeguarding the Trust's assets. Tts fin8n¢ia] suslainabiliiy, and receiving assurdnce that ils System complies with the legal and regulatory obligatiotL5. including &s a Charity. and in respert of the Office for Students IOfSI. The board of directors $Chule to m¢ei a few times a year. Forniai agend4 pape]3 and rqx)rLs a supplied to the board in a timely manner prior the board meeiings. Briefings are a]so provided on an ad-ho¢ basis. Reports includ¢ overall financial perfonnance of the Tnjst together with other relevant information such as performance againsi targets. The tmmrd review and approve th¢ financial sthtements and a19) receive and consider r¢ports from regulators such the Ots. and monitors adhcrence with the continuing corlI10S of registration with the 015 and other legal and regulatory requirements. Minut¢s of board meetings are recordal and approv&J at the following meetin& The day-to-day management of Hult International Bu5ine5s S¢hool is undenaken by the President who is appointed by the TnJstr¢s. The President has delegated authority for f]nance. emph)ymenL and other operational mattet3. TRusfEFS' RESPONSIBILJTILS The Trustees are resw)nsible for tht prepaNKTrn of annuat rIn¢181 statements that provide a trne and fair vÈew of the stat¢ of affairs of the khLK)l &s * the ej of the fit)ancia] year and of the financial &tLVities during the year. In preparing th¢ financial staternents the Ttee$ are required to: select ac¢ounting lIcleS and apply them consÉ$tentty observe the methods and pri1p]eS in the Chariiies SORP make judgements and cstimates that ate re&%onable and prudenl str whether applicable UK a¢¢ountin8 Standatds have been followed. subjeci to any maierial departures disclosed and explained in tht financial si*ements prepare the fitwicial stsiemtnts on a goingcorKern basis unless it is inappropriate to presume that the eharity will continu¢ in busine55 The Trustees are restK)nsible for keeping proper accounltng records that disclose with reasonable accuracy of the fjnanctal p)sition of the S¢h(x)l at any lime and to ¢nsuTe that th¢ financial statements comply with relevant Statut¢s. It is aiso responsible for safeguarding theassets of ihe Sch(M)I taktng reasonable stepsto prev¢ntion atyj detection of fraud and other irregularities.
INTERNAL CONTROL The Trustees are re5Fonsibl¢ for maintaining a sound sy$¢em of lltternal control that suprtS the a¢hievement of policies, aims and objeciives. The SySTn of internal rontrol is designed to manage, rather th eliminate. th¢ risk of failure to achieve policits. aims and objeeiives thrDu8h ComLptso fraud. briry and other irregularities. It can th¢refore only provide rednable, but not abwlute, &ssuran¢e against mat¢rial misststement or loss. The system of internd control is bwl a continuous pl[esS d¢s]¢d to identify the Prln¢tp risk5 to th¢ achiev¢meni of policies, arm5 and obj¢¢tives- to evaluate the and exient of ih05e risks. and to manage them efficiently. effeciively, and economicalty. This process aCrdS with Ot5 guidance. The $ysiem uses a framework of regular management infomjation. minIstr]ve pro¢edures including 5e8regation of duties, and & system of delegatton and accountsbiltty. It include5= Comprehensive budgeting systerns with an budgetthat is reviewed and agrttd urATrn by the board of dIlor5 Regular reviews by the board of directors of periodic and annual financia] reports which indicate rinanciai perfomianee agn$t forecast Setting targets to me&sure fit)aJhcial and operntiond p¢rfonnance A clear approval and authori5ation process for expenditure5 The School's internal ronlrol sysiem is suptrtTrrted by a nlmiber of policie5. These include a Risk Register. an Anti-Bribery and Comiption Poliry, a me Slavery Act sthtetnenL comprehensive intml financial wlicies and regulaiions which detail financial contw15 and twthire5. The Trustees have the resnSibIlIty for reviewtng tht effectiveness of the systetn of infrrna] control and ensurtrtg that there is a sound appma¢h to confirffl that this framework is adopted and embedded consistently and effectively across each activity. The review of the effectiveness of the system is inf(Thed by. The work of extern audilors The work of senior managers w¢thin the organisation wkn have re5w>nstbility for the development and maintenance of the internal control framework which is [crted as needed by the Chief Financial Otc¢r to the governing tody. Comments made by the organisation's statements and re8ulatory inspections their managtTnent lettets and other r¢p)rts Regularly reviewing the approval and authorisation Pr to ensure its relevancy to the business operations and OTganisationa] Structure There are no Significant internal control weaknesses reportd forthe period. The trustees, who a also dIrtorS of the Sch(K)I for the purwTrse5 of company law. has delegated its day-to-day responsibility to the Presiden¢ as Accounthbk Officer, for reviewin8 the adequacy of the system of internal corttrol and makin8 any appropriate amendments. He is also re5tK>nsible for rew)rting to the tM)ard any Tnaterial weaknesses or breakdowns in intemal control. The day-daY res]x)nsibility for risk management and monitoring is assigned the Chief Financc Offic¢r arbd Program Presidents. The board of directors and the Accountable Officer eonfimi that after due enquiry and to the best of their knowledge, it is able to identify any materia] itregularity or improper use offu[S by theorganisation,ormaterial non-compliance with ternis ond conditions of fundiTh8 underthe School's financial regulation5. We ¢OTLfLrm that, during th¢ year to 31 July 2022 or sin¢e thc peri(Ml end tK) instances of tnaterial irregularity, impropriety or funding non-compliatlce have been discovered to date. If any su¢h in51ances ar¢ identified after the dat¢ of this statement will be notified to the Of5 in accordatKe with the Schwl's compliance obligations.
Approved by the Trustees and signed on their behalf
R Goonesena Trustee Date: [ ( I 2[/ ] 7,.. )_,,
Hult International Business School Limited
M. Lilley President Date: 6 / 12 / 2022
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarantee)Op'inioTh We have audited the financial stat¢m¢nts of Hult Inlernaiional Business School Ltd (the '¢haritsble ¢ompoffty'l forthe year ended 31 July 2022 wbich comprise the Statement of Financial Activities. the Balance SheeL Statement of Cash Flows and not¢s to ihe financial statements, including a summary of significanl acwullting w)licie5. The finan¢ial reporting framework that has been applÉ¢d in their preparation is applieable law and United Kingdom Accounting Standards, including Finaneial Reponing Standard 102 The FinopKial Rewrting Slapwlord tsppli¢oble in the UK ap Republic ofjrelondlunited Kingdom Generally Accept¢d Acwuniing Practiee). In ouropinion the financi s£tT-. give a true and fair view of the of the charttable company's affatr5 a5 at 31 July 2022 and of its income and expenditure for the year then ended. have been properly prepared in accordanee wtth United Kingdom Generally Ac¢ept¢d A¢¢ounting Practice,. hav¢ been ppared in accordance with ihe requ1MentS of the Companies Act 2006- where applicable. funds fiDm whatever source adminisred by the provider for specifie purposes have been prOrIY applied io those pur]K>ses and managed in accordancc wth relevant legislation. where applicable. fiLnd5 provided by the Ots and by Rtsearch England have been applied in accordan¢e with the relevant tenns and conditions; and meet the requirements of the Office for Student'$ Acwunts Di]r¢tion. We have nothing to report in respert of the following matter in relation to which th¢ Ot5 Accounts Direction requir¢s us to report to you if, in our opinion= the charitable company's grant aThd fee incornc. disclosed in note 18 these Financial Statements has been materially misstated. Basis of opinio 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 Auditor's responsibilities for the audit of the financial statements section of ollr rewbrt. We are indetndent ofthe Charitable company in accordan¢e with the eihical requirements that ar¢ Jylevant to our audit of the financial staternents in the UK, including the FRC'5 Ethical Standard. and w¢ have fulfilled our othff ethÈcal responsibilities in accordance with these requirefftellts. We believe that the audit ¢vid¢n¢e we haye obtsIn is sutTicieni appropriate to provide a basis for our opinion. ConclusioD5 relating to going toncern In auditing the financial ststements. we have concluded thatthetrustce5' Use ofthe going con¢em ba515 of accounting in the preparation of the ftnancial statements is appropriate. Based ot) the work we have perfonne¢ we have not identified any material uncertaintie5 relating to events tsr eonditions that. individually oreollectively, may cast SL8nificant doubt on the ¢hatitsble company's ability to ¢ontinue as a going Concern for a perM)d of * l¢asi tyvelve months from when the financial staternents are authorised for issue. 10
Our reswnsibilities and the responsibiliiies of the trustees with tespe¢t io going con¢ern art described in the relevant sections of this retM)n. Other infonnation The other infonnation comprises the information included in the annua] rer( othwthan the financial siatemerEts and our auditors, repon ihere<)n. The tnjstees are responsibl¢ for the other information. Our opinion on The financial stsIemet does cover th¢ other infomation we do not expres5 any fomi of a5sufdnee ¢onrlusion thereon. Our responsibility is to read theother inf0mtion and, tn doing so. wnsider whetheriheotheriTrfoThation is materially ineonsisient with the financial Statements or our knowl¢dg¢ obtained in the audit orotherwi5e appears to be materially misstated. 11 we iderttify such meriaJ inconsisiencies or apparenl material mis5tatemenis. we are required io deterrnine whether thtre is a material mi5Statem¢ni in the financi ststements thern5elves. If. based on the work we have perfornied. we conclude that there is a merial misstsiement of this other infomation, we are required to rqjort that facL We have nothing to r¢p)rt in this rwrd. OpinloN on other mitters pre5crilxd by the Comwtties Act 2W6 In our opinion, based on the work undertaken in the Course of the audit: the infortnation given in the tnLSt¢es' repor¢ whi¢h include5 the dirfftOT5' re[rt prepared for the purp05e5 of cornpany law, for the financial yr for whith the flltancmj sts1eTne[ ar¢ prtpared is consistent with the rinancial sthlements. aThJ the dir¢¢tors' rert included wthin the tnle¢s. rerA)rt has been prwar&l in e0rdanc¢ wilh applic4bl¢ legal r¢quirements. Mx¢ter5 on whicb Yle art rtquir¢d ¢0 report by ¢xeeptioD In tht light of th¢ k[wI¢de ond undeT5tsndingofthe charitabl¢ ¢ornpany and its environment obthitted in the course of the audit. we have not identifwj material misstsielnents in the directors. repKrt included within the Iru5tee$' report. We have noihing to report in rwect of the followin8 matt¢]¥ where the Companaes Ad 2006 require5 US to report to you if, in our opinion= adequate accounting records have not been kcpL or rthrns adequate for our alIt have not been rettived from brdn¢hes not Visited by us. or the flnancial siaiements are not in agreement with the acL¥>witing re(x)rds and returns" or certatn disc105ures of Injsrees. retnuneration specified by law are not made. or we have not received all the informaiion and explanations we require forour audit. or the tnjstees were not entitled to prepare the financial statements in aecordan¢e with the small companies regime and take advantage of the small companies. ex¢mptions in preparing the trustees. rekK)rt #nd from th requiremeni to prepare a strategic rewrL
RespoAslbilitie8 of TTUSt¢es As explained more fully in ihe Trustees. R¢snsIbilitIeS semen( the Trnstees (who are also the directors of the charitable cotnpany for the puryK)se5 of company law) are rewnsiblt for the preparation of the fjnancial 5tattments and for being satisfied that they give a trne and fair view. and ftr such inrnai control &5 the trnses detemine is necessary to enable the pparatIOn of finan¢ial statements 8re free from material misstatemen¢ whether due to fraud orerror. In preparing the financiaf statements. the trustees e r¢sw>nsibl¢ for assessing th¢ charitsble company's ability to continue as a going concern. dis¢losin& &$ applicable. tnatter5 relaied to going eonc¢rn and using the gotng concern basis of ae¢ounting unless the trvsiees either inta¥J to liquidate the company or to ¢¢we opeTation4 or have no realistic alternative but to do so. Auijltor's re5Wbn$ibilitles for the audit of the finncial sttements Our objectives ar¢ to obtain rewnable assurance whether th¢ financÈal statemenrs as a whole ar¢ ftte from material misslatemen¢ whether due to fraud or error, and to i5su¢ an auditor's report that includes our opinion. Reasonable assurance is a high level of &ssurane¢, bul 1$ not a guarnitee that an audit Conducted in accordance with ISAS IUKI will always deted a material misstaiement when ii e$ts. MisStat¢ments can arise from fraud or emTrr and are considered material if, individually or in the aggregate, they could reasonably be expe¢ted to Knfluen¢¢ the ¢¢onomic decisions of users taken on the basis of these finarKial statements. Irregularities, including fraud. are insthn¢es of mPlIanCe with laws and re8ulatLOttS. We design procedures in line with our responsibilities. Olrtlined above. to d¢teci mtrIal misstatetnents in resp¢¢t of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularitie& including fraud 15 detatled below.. The Charitsble Company is requir¢d tocornply with both company lawand¢haTity law 8nd certain conditions of Ot5 regisiration including ¢ompliance with the OFS, latest Accounts Direction and. based on our knowledge of their activities we identified that the legal requirement to accurnoly account for resiricted funds was of key si8nifi¢ance. We gained an understanding of the charitsble Company complied wilh its legal and regulatory frameworK including the requirement to properly account for r¢sth¢ted funds. through di5CUSsions with managem¢ni and a review of the documented lICIt& pr¢S and controls. The audit team, which 1$ experienced in the audtt of charitie5. considered the charitable cotnpany's susceptibility to material misstatement and IK>W traud may occur. Our ¢onsidtTalions included the risk of management override. We identified a risk over ¢offe¢t cut-off of revenue due from the parenl charity under the a8r¢emen¢ in respe¢r of costs incurred in the period. W¢ a sample of Costs and accruals deterinine correct Cut-off of recoverdble costs, as well recal¢ulating the revenu¢ attrutd at the year based on the agreement with th¢ parent Charity. Our approach was to check that all mtricted inme was pmperly identified and separaiely accounted for and to ¢nsthre only valid and appropriate expendttur¢ was charged to restri¢ted fund5. This in¢luded reviewin8 journal adjustsnents and unusual tr8n5actton& No restricted income was identifted. A furthcr description of our reswTrnsibilities for the audit of the fJnancia] staiernents is located on the Financial Reporting Council's website at.. Www.frcA)r8.uklaudirSrCSwnslbIII¢[e$. This description forms part of our auditor's report. Use of our report 12
This report is m8de solely to the chariiable company's m¢mbry &5 a tA)dy, in accordance with Chapter 3 of Part 16 of the Companie$ Aci 2006. Our audit work has been undertaken. so tha¢ we Thight stste th¢ ¢haritable company's metnber5 those mart¢rs we are required state to them in an auditor's report and for no other purpose. To the fullest extent perniitted by law, we do not a¢¢¢pt or &s5ume resp)nsibility to anyone other than the Charitable company and the charitable company's members as a iK>dy. for our audit wort ror this rew)rt or for the opinions we have fornied. Simon G(XMlridge Senior Statutory Auditor for and on behalf of Knox CropFr LLP Sratutory Audiior 65 Leadenhall Streei IIL 2022 London EC 13
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by gyarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 July 2022 Note Year ended 31 July 2022 10 months eThded 31 Jllly 2021 INCOME FROM: Donation$ 350,M) 250.000 Char¢table activities 14.839,899 11,209,805 TOTAL INCOME 15,189.899 11,459.805 EXPENDITURE ON: Ch8ritable aetivities 14.294,800 10.812,936 TOTAL ExPENDURE 14,294,800 10,812,936 NET INCOME FOR THE PERIOD 895.099 646,869 NET MOVEMENT Ir4 FUNDS 895,099 646.869 TOTAL UNREsfRicfED FUNDS BROUGHT FORWARD (10.911.173> (11,558,042) TOTAL UNRESTRJED FUNDS CARRIED FORWARD (10.016.075) 110,911.173) RECONCILIATION OF FUNDS: Total funds brought fon¥ard (10.911.174} (11,558.0421 Net movement in fvnds for the riod 895.(89 646,869 Totsl funds carried forward {10.016.0751 {10.911.1741 All in¢ome and expenditure derive from continuing op¥110. There are no other reL¥)gnised gain5 or losses other than da*d aiK)ve. 14
HULT INTERNATIONAL BUSINESS SCHOOL LTD
(a company limited by guarantee)
BALANCE SHEET As at 31 July 2022
| Note | |||
|---|---|---|---|
| 31 July | 31 July | ||
| 2022 | 2021 | ||
| £ | £ | ||
| FIXED ASSETS | |||
| Tangible assets | 9 | 5,660,603 | 5,771,883 |
| CURRENT ASSETS | |||
| Debtors | 10 | 972,507 | 417,103 |
| Cash at bank and in hand | 3,678,798 | 5,698,598 | |
| 4,651,305 | 6,115,701 | ||
| CREDITORS: amounts flling due within | |||
| one year | |||
| Creditors | 11 | (3,141,552) | (4,655,998) |
| Deferred income | 4 | (3,600,000) | (3,332,770) |
| (6,741,552) | (7,988,768) | ||
| NET CURRENT LIABILITIES | (2,090,247) | (1,873,067) | |
| TOTAL ASSETS LESS CURRENT | |||
| LIABILITIES | 3,570,356 | 3,898,816 | |
| CREDITORS: amounts falling due after | |||
| more than one year Provisions fr liabilities |
12 13 |
(12,250,000) (1,336,431) |
(13,500,000) (1,309,990) |
| NET LIABILITIES | (10,016,075) | (10,911,173) | |
| FUNDS | |||
| Defcit on unrestricted funds | (10,016,075) | (10,911,173) | |
| TOTAL FUNDS | (10,016,075) | (10,911,173) |
The financial statements of Hult International Business School Ltd, registered number No. 03005603, were approved by the Board of Trustees and authorised for issue on
Signed on behalf of the Board of Trustees
R Goonesena Trustee
15
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a compatty limited by guarantee) CASH FLOW STATEMENT For the year ended 31 July 2022 P4ote ended 111 moDth$ 31 July ended 31 2022 July 2021 Net ush oper•tiDE x¢tivltks 152.682 854.464 Cash flows from inwestlmg eiiwit Purchase of tangible fixed &ssets (760,713) (114.469) Net ¢Ash oufflow from investing ctivitieJ (760.713) (114,469) C•$h flows from ctivitiu Repayment of t)rmwin8S Interesi {1250.(KM)I 11.250.iYIOI {161.7691 1136.8771 ¢Ash outflow from finAncing activit (1,411,769) (1,386.8771 {docreseYMrtlSt In e•sh aDd tquivkmts (lo19,8) 1646.882) C*$h it Ixgiffjlli 0[d 5.698,598 6.345.480 C•sh #t thd of period 3.678,798 5.698.598 Cash and cash e4wlvalts CoMlSe of cash bank and iti hand. Cath equivalents (i& Th)t bank) for the 12 rnonths ended 31 July 2022 were £30.385 (year ended 31 July 2021.. £nil.) 16
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarantee) NOTES TO THE CASH FLOW STATEMENT For the year ended 31 Jyty 2022 I. RECONCILIATION OF SURPLUS FOR THE PERAOD TO NET CASH INFLOW FROM OPERATING AcfiviTIES Year ended 31 July 2022 10 month$ ended 31 July 2021 Nei surplus for the period Depreciation of thngible fixed assets Interest Decrease in d¢btor5 IDe¢reaseyIThcrease in creditor5 895.099 646.869 871.993 919,149 161.769 136,877 {555,4041 480,623 (1,220.7751 (1,329,054) C4sh gener*t¢d from opeT&tiDg •ctiwities 152.683 854,464 2. ANALYSIS OFCHANGES IN NET DEBT ADAlyS of ¢h#nge5 ID debt AS at l August 2021 Cashflows TraDsfer AS #t 31 July 2022 Cash 5.698,598 (1019,801) 3,678.798 Loans falling due withill ont year LoAn$ fallig due after mort ¢h•n one year (250.(KM)} 250.1)00 {250.(0) (250,0001 (13.500,(K>O) 750,¢KK) 250,000 {l2,500,0}} TOTAL 8051.402 019801 9 071.202 17
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a eompany limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 ACCOUNTING POLICIES Basis of 8ttounting The School, a public benefit eniity. is incOrrled in England and Wale5 a company limited by guarantee not having a share capital. There are four Trustees. Each tnt¢¢ has undertaken io ¢ontribute to the assets in the eventof a windingup a sum notexceding£l.Cl)O. The Chwity i$ a registered Charity. The re8is(¢red office is listed on page l. Th¢ financial sthtcments are prepared uTh4¢r the hi5toric41 wst convention, in a¢¢ordanc¢ with the Sthtement of Recommended Prd¢iice "Accounting and Rew>rting by Charities ISORP 20191- applicable to charities preparing their a¢¢ounts in acrdance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102), effective l January 2019. atKI th¢ CompatLieS Aci 2006. The principal a¢¢ountin8 p)li¢ie$ of the charity set out b¢k)w. Going conetrn At 31 July 2022, the Schwl has negative reserv¢s of £lthn. as expttted. The School made a surplus of £0.9m for th¢ period ended 31 July 2022 and will continue to have surplusts in future years. The School received a h)an in 2015 of £20m from Huh It)temational Business School AG to ¢nable it to make the payments reqUid by a Strategi¢ Alliance Agreement with Ashridge {Btsnar Law Memorial) Trust. The loan agreement between ihe Sehcx)l and Hult Int¢MlOal Business S¢h(K)I AG includes ierms that ifthe annual amortisation payrn¢nt {repayments of £250k p¢r annum) or inter¢si paytnents would endanger the solvency of the School, the partÉes shall enter into discwion5 arml agteeon a duCed amortisaiion payment that may equal zero. Th¢ long term loan from Hult International Business School AG rnatures in 2035. Considering the improved results that the SchTh)I has had in the lasi few year% the eXpeClOn is ¢hat the SchiM)I during the coming 13 years will be able io make w>sitiv¢ results and service the loan. During the period the Sch¢)ol hAS repaid £1.25 of the loan. Thanks to the strong liquidity tM)Sitton, the TnteeS decided FY2022 to make additional repayment of £lm of the loan wilh the benefits the inter¢M wst forthe charity. Given thai the liquidity position is maintaine(L the Trustee5 may in the futureoo to futther aelerate that loan repayment. The School has net current liabiliti¢sof £2.Im. FOrcts have been prepad and showthat liabilities can be settled a5 they fall due over at Ivdst the next 12 months. The School is operating on cost-plus basis where ail costs are recharged to Hull lllternational Business Sch¢y)I, Inc. with a mat*-up on an ann's length basis. Henc< the School will always generate sllrplus. The outbreak of COVllk19 virus has had an impact on hi8htr4dllcation globally. The board acknowledge5 the risk but dttms the owaiional disruption be limited as education is maintained aThd carried oui online until the campuses a opened. Subsequently educational revenue is continued. Having consid¢red thE aknve, the tn1¢¢5 believe li is msonable to ¢oniinue to adopt th¢ going ncern basis. Provisions Dilapidation ServeS are made to provide for the works required lo turn the Ivdsehold propertie5 to ihe stale found ai the Commencemeni of the tenns. The dilapidation eslimate is capÈtalized and is depreciated over the remaitjderof the lease and liabilitie5 are ed1trd with the fvll e#irnatcd amount adjusted by the annual inflation ae¢retiotL. Rt5erves The charity fftaintains unr¢strKtrd reserves as follows.. unTrIe1edreseES Unrestri¢ied reserves represe income which is expendable at the discretion of the trustees in the futtherance of the objectives of the charity. Such fvnds may be h¢ld in order to finance workin8 capjtal and capital investmenL
HULT IiYfERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarantee) OTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 ACCOUNTING POLICIES (eoD¢inMed) In¢ome Tumover 15 recogntsed on fees in respect of those s¢rvi¢es are delivered within the flnancial year being reported on a cost-plus basis at an arm'$ Icn8th. Fees re¢¢ived in advan¢e for servi¢es credited to deferred income. Donti0Tr5 Monetary donaiion5 are includd in full in the Stsiement of Financial Activities wheo Teceivable, provided there are no donor.imw)sed resthrtions as to the iitning of the reled expenditure, in whieh c&s¢ recognition is deferred until the 5pecifi¢ o)nditions have been meL Expenditure Expenditure ts recognised oncc there is a legal or LYTrnstwive obligation to make a payment lo a third party, it is probable that setslement will required and th¢ amount of the obligaiion caTh be MSUred T¢liably. Expenditure is chargrd on an aC£nlS basis. Costs are allocated to activities based on Wh they are dircctly attributable to. Expenditure is analysed by egOry lth¥een a numberofseparate heJin85 &S Ftr tte 5. T&ngibl¢ fixed assets And deprttiation Tangible fixed asscts are stated at cosl net of depreciation and any pVi%n for impaimient. Depreciation is calculated to write down th¢ cost less estimated sIdual value of all tsngible fixed asset5 by equal iostalments over their exFfCted wful liv¢s. The rates genernlly appltcable art.. tEasehold improvements Fixture5 and fJttit)gs Over the shorter of the life of the asset or the period of the lelse 3-5 ye8rs Office equipment 3-5 ye4rs Foreign f mcleS The rep)rting and nctIonal currency is sterling (GBP). Transa¢uons tn foreign ¢urrettci¢s are translated at the exchange rdte ruling ai the date of the transaction. Monelary assets and liabilitie5 in foreign currencies are translated at the ex¢hange rdte at the balance sheet date. Employee benefits eontributions to pension funds The charity ¢oDtributes to a defjned Contribution scheme for the F£n¢fit ofthe employees and the pension costs charged to the SOFA in the period repres¢ni the ntribUtiOnS payable to th¢ h¢m£ in respecl of the accounting period. i$ed assets L¢ases are regarded as operdting leases and the payments mk under them art charged to the SOFA on a straight-line basis over the lew ternl. 19
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarantee) NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 July 2022 ACCOUNTING POLICIES (eontlDu¢d) Financial instrnmeDts Financial &ss¢ts and finan¢ial liabilities recognised when the Company becomes a party to the contra¢tual pJK)visions of the instrumeni. All fJTrancial assets and liabilities are initially measured at transaction price {in¢luding transaction costs). The company only have financial &ssets and finath¢ial liabilities of a kind qualifi¢s as basic fjnancial instrumenis. Basic financial instwments are initially recognised at transaction vaille and subsequently measured at their settlement value. Conces¥ionary lo•ns Concessionary loans are Énttially measured ai the amouni received or paid. In subsequent years, the carrying amount of wncessionary loan5 is adjusted to reflect any accnt¢d inttrest payable or receivable. less any impaiTtnent loss. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATIOIY UNCERTAINTY ln the application of the Company'5 acewnting )Itel¢s, which a descrrkd in note l. the Trustees ar¢ required to make jud8emeni& t51imates and assumpiions th>ut th¢ Carrying amounts of assets and liabilities that are t readily apparent from other sources. The eslimates and a5soci•ed assumptions are based on historical experience and other fartors that are considered to be relevant. Actual results may differ from these estimates. The estimate5 and underlyingassumptions are reviewed on an orkgoingbosis. Revisions to accounting estimates re recognised in the period in which the e4imate is revised if the r¢vision affects only that Peri, or in th¢ period of the revision and fvwre periS if the revision affeds current and future periods. The Trustees do not consid¢r there are any critical judgements or sources of e5ttmation uncertainty requiring disclosure. INCOME FROM CHARITABLE ACTivrriES Nt¢ income from ch&rit8ble 8Ctivities 10 months ended 31 July 2021 Net Ineorne from cbaritAble activitie5 year etsded 31 July 2022 Income Edu¢ational Servitts 14,839,899 11,209.805 20
HULT INTERNATIONAL BUSINESS SCHOOL LTD {a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 DEFERRED INCOME Year ended 31 July 2022 10 months ended 31 July 2021 Educati(Trnal Services 3,6¢JO,O(X) 3.332.770 2022 2021 Balance as 8t l Augv Amount released its income Amount deferrrd in the peri(Ml (3J32.770) 13.565.865) 3.332.770 3.565,865 (3.600.(K>O) {3,332,7701 Balance at 3 1 July (3,600,IMJO} (3.332.770) EXPENDITURE OPI CHARITABLE ACTIVITIES Year eDded 31 July 2022 Direct eosts Support costs Totsl 2022 Edueaiion 5.115.945 9,178.555 14294,800 10 Jnonth5 ended 31 July 21121 Direct Support Total 2021 Edu¢a¢ion 4,277,467 6,535,469 10.812,936 YeY4r ended 31 July 2022 10 m(bnths ended 31 July 2021 Analysis of support eosts Establishment costs School administration costs Profe&sional Governance costs Other costs 4.808.064 4,025.855 3.772.108 2,036,546 183,912 179,404 27,2(Ml 25.200 387,571 266.964 9.178.555 6,535,469 21
HULT INTFRNATIONAL BUStNESS SCHOOL LTD (a compally limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 GOVERNANCE COSTS Yur ended 31 July 2022 l O months ended 31 July 2021 Audit fees 27200 26,700 II¥FORMATION REGARDING EMPinYEES Year ended 31 July 2022 r40 10 months ended 31 July 2021 The •verage nwmbtr of eOyeeS in period w*$ 95 67 Stsff costs during the p¢Ylod wtre: Wages and salaries Social se¢urity Costs Pension contribution 5,451.641 648.632 3,807,180 437,326 91,431 6,216,424 4.335,936 The number of employees whose emoluments. excludin8 pension contributions and employer's national insurdnce. including benefits in kind. were in excess 01£60,0(Ml were: Ye#r ended 31 July 2022 10 months ended 31 July 2021 No £60.0(K)- £69,999 £70,0(M)- £79.999 £80,O¢M)- £89.999 £90,0- £99,999 £ioo.(K)0- £199,999 £200,(K)0- £249.999 22
HULT tNTERNATIONAL BUSINESS SCHOOL LTD (a ¢ompany limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 1022 Sthior staff The Sch7 has given regard to the Trligher ¢dU10n senior staff remuneration ¢je, published by the Committee of Universtty Chairs when deierniining senior staff reTnuneratioii. The numkr of senior staff with a full-iime quivaleni IMSiC sa18ry over £l(4).¢MJ) per atmum on 31 July were.. Year ended 31 July 2022 10 months ended 31 July 2021 Nc* £1 00,000- £104.999 £105,000 - £109.999 £1 10,000 £114.999 £115.000-£119.999 £120.000- £124.999 £125 .000 - £129,999 £130 .000 - £134.999 £135.000 - £139,999 £140.000- £144,999 £145 ,(K)O- £149.999 £150,000- £154.999 £155.000-£159.999 £160.000- £164.999 £165.000- £ 169.999 £170,000- £174,999 £175,000- £179.999 £180.000- £184.999 £185.000 - £189.999 £190 ,000- £194.999 £195,000 - £199,999 £200,01)0- £204.999 The table alx)ve excludes. as per guidanc< stsff joined or left part-way through the year but who would have receÈved a salary in these baods in a full year . No member statTwer¢ on reduced pay such as for tnatcrnity or sickness leave that would othenvise be part of the atKFV¢ iable The President Stephen Hodges, totsl annual remunerwion is £556224 for the 10 month5 of his employment which terTninated on 31 May 2022. This repiesents the total annual remuneration paid by the School & A5hridge {Bonar law Memorial) TrusL Ashridge {Bonar Law Memorial) Trust w&s responsible for nding £183.972 and the School was responsible for funding £372.252. The breakdown of this totsl remuneration is as follows.. From Hult Int¢rnalional Busincs5 Sdw)ol Ltsl: - Base salary of £166.667. - A total amount of £5.(K>O has been ]d by the Provid in pension trIbutiOnS on behalf of the head of provider during the ytar. - No paym¢nts of dividend5 have been mwle. - PerfonaNclIatCd pay and other IM)nuses awarded of £21)0,000. 23
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 - A total •nount of £585 h&$ been paid by the provider in pynsion contributions as part of National Insutan¢e savings. - No other type of nefIts and remuneration have paid rnade to the head provider. - Hllli It)iemaiional Bustnes5 Sch(x)l Lid does r1 pn)vide ihe President private healthcare ben¢fiL From Ashridge (Bonar Law Memorial) Trust: - B&se salary of £83J33. - No paymenis have bttn paid in licu of pension contributions. - No payments of dividends have been mad¢. - Perforniance-related pay and other b(Muses of £ILKI.(KN). - No pay]nent made by th¢ PD)vider in pension ¢ontributioTL5 on behalfof the head of providerduring the year. - No payment made by the PTDVId in nSIOn contributÉons Is part of National Insurance savings. - No other type of benefit5 and rcmunerdtion have paid made to the head pn)vider. Ashridge (Bonar Law Memorial) TnLSt provided privat¢ health¢are bethefit to the President for a value of £639. The President Matthew Lilley $tarted on 1° June 2022 and his total annual remuneration is £33,962 for the 2 months of hi5 employmeni. This rePrents the total annual Temuneration paid by the SLhool & Ashridge (Bonar Law Memoriojl Tn1. Ashridge {Bonar Law Memorial) Trust was resp)nsible for funding £17.295 and the Sch(x>l was restx)n$ible for funding £16.667. The breakdowi of this totsl r¢muneraiion is as follows.. From Hult Internattonal BusInS Schwl d. - Ba8e salary of £16,667. - No payments have been paid in lieu ofpeThsM)n contributions. - No payments of dividends have been made. - No Performan¢e-related pay and other bonusts have b¢en awarded. -No paymentmade by the provider in pension ¢onthbution$on behalf ofthc head ofproviderduring the year. No payment made by the provider in pension contributions part of National Insurance savings . No othu type of benefit$ and MwIt¥a(io havt been paid to the head provider. - Hult International Business S¢hwl Ltd dots not provide to the President private h¢alth¢are benefit. Fmm Ashridge {Borw Law M¢mori81) Trust.. - Base Salary of £17.167. - No payments have been paid lieu of pension contributions. - No paym¢nts of dtvidends have been tnwje. - No Perfomiancc-related pay and other bonuses have been awarded. - No payrnent made by the provider in pension contributior150n ha]fofth¢ head ofprovider duriog the year. - No payment made by the pmider in pension contributions as part of National Insuran¢e saving5. - No other type of benefits and remuneration have been paid to the head provider. - Ashridge (Bonar Law Memorial) Trust provided priv¢ healthcare benefit to the President for a value of £128. The President's Salary is Set by the Trusiee& Process for judging perfonnaDce The President has an aonual performance teview meeting with the of directors to VieW and a55ess perfomian¢e again$[ objcctiv¢s and to discu objectives for the nexi year. 24
HUI.T INTERNATIONAL BUSINESS SCHOOL LTD (# company limited by guarantee) NOTES TO THE FtNANCIAL ST ATEMENTS For the year ended 31 July 2022 Approach and justification the Pre5idcnts remunerati The PTesiden¢'s salary É5 reviewcd annually and retle£ts the followin8= Market rate by size and MpleXity of inslTti]tion The scale and Complexity of the job . Comparisons with betKhmarks Ikrformance as measured against objtttives set by the tA)ard of dir¢¢tors Pay multiple The relationship betw¢en the President's remuneration and that for all other Staff is as follows l¢ombined r¢mun¢raiion of President betw¢cn thc s([ & Ashridge IBonar law Memorial) Twst): The curreni h¢ad of the providees b&sic salary is 6.1 times the m¢dian pay of sthff, where the median pay i5 calculattd on a full-time equivalent basis for the salaries ]d by the provideT ¢0 its 51aff. The current head of the provid&$ totsl remuneration is 5.6 limes the mediall total reTnuncTation of staff. • The outgoing head of the pwvid&s IMSiC salary 15 105 tirnes the median pay of staff, where the median is cal¢tslated on a full-time wuivalent basis for the salaries paid by the provider to its s¢aff. The outgoing htad of the providerfs total remuneration is 21.9 times the medjan total remuneration of staff. The pay multiple represents the President's pay divided by the median pay for all other staff at the'charitable company". on a full-tim¢ eqllivaleni basis. The median pay for all othtr stsff is calculated using pay data for all statywho are re4Uirtd be included in Real Time Infornation (R11) reporttng to HMRC (July 2022). All other staff is capturing staff employed by the Sch(xTrl. 25
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guydrantee) NOTES TO THE FINANCIAL ST ATEMENTS For the year ended 31 July 2022 NET INCOME FOR THE PERIOD Net incom¢ is ststed after charng. Year 10 months ended ended 31 July 31 July 2022 2021 Auditor'5 remulleratton Fees payable to the ¢hartty's audIr for the audil of the charity's financial siaiements Rental under operating le&s¢s Land and buildings Other Depreciation of tangible red &55ets Owned {note 9) 27.2( 26,700 2.393,723 24.81J) 2,078.784 17,683 871.993 919,149 TANGIBLE FIXED A&SETS Fixtsrts wip and leisehold rittings improvements IRa5ehold Office improwemeDts equipment Total Cost At l August 2021 Additions Disw>sals 11,523.906 1,106.582 114,558 327.464 5.520 9.100 5.520 12,636.008 760,71 2,966,396 637,053 2.633.412 At 31 July 2022 8,8.41 893,676 9,100 637.053 10.430.323 Depreciation At l August 2021 Charge for the perh)d Dtsposals 6J93,715 629.805 2.633.413 464,890 239.659 327,464 5.520 2.528 5,520 6,864.125 871.992 2.996,397 Ai 31 July 2022 4j.107 377.085 2.528 4,769,720 Net book value At l August 2021 5.130.191 641.692 5,771,883 At 31 July 2022 4.500.387 516591 6.572 637,053 5,660,603 26
HULT INTERNATIONAL BUSINESS SCHOOL LTD (a company limited by guarnntee) NOTF.S TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 DEBTORS 31 Juty 2022 31 July 2021 Trade debtors Arnounts owed from other Huh uThd¢rt2kin8S Other debtors Prepayments 1,639 30,602 350 384.512 564.513 4,737 403257 972507 417.103 All debtors due wtthin one Y #nd there is no int¢r¢st payoble on Amounts owed from Hult undertakin8S. CREDITORS: AMOUIYTS FALLING DUE WITHIN ONE YEAR 31 July 2022 31 July 2021 Trade ¢r¢dilOTS IA)ans owed to other Hult undertakings Amounts owed to other Hult undertakings Other Creditor5 A¢crua15 289,621 250.000 21,626 107272 2.473.033 701.901 250.OIK> 2,243,661 99,920 1.360.513 3,141,552 4,655.997 There L5 no interest payable on Amounts owa kn Hull w)dertakTngs. 27
HUI,T INTERNATIONAL BUSINESS SCHOOL LTD (a company limiled by guargntee) NOTES TO THF. FINANCIAL STATEMENTS For the year ended 31 July 2022 12. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR 31 July 2022 31 July 2021 Loans owed to other Hult undcrtakin85 I2.5C.0O0 13.500.000 Included within the aixTrve are amounts due as follows= 31 July 2012 31 July 21121 Between l and 2 years Between 2 and 5 years More thatt 5 years 250,000 250.000 750.000 750.000 11,500.000 12,500.000 12,500.000 13,5(11),000 £12.5m of the loan owed to other Hult undertakings is payable annua]ly in instalThents and bears interest at 125% from 28 January 2022 (2021: 1%). The loan is repayable by 29 Jartuary 2035. 13. PROVISIONS FOR LIABILITIES: FALLING MORE THAN ONE YEAR 31 Juty 2022 JI July 2021 Balance as at l ALt8USt Charged to SOFA 1,309,9 26,441 1288,355 21.635 Ban¢¢ as at 31 July 1.336.431 I J09,990 Provisions Consists of dilapidations on lethold improvements which will be aliSed at th£ end of the lease temi. 14. TAXATION The School is a registered chatity and ¢k>es not trade for tsx r)Se$. 11 is tt liable to 011 any surplus derived from Charitsble aciivities. 28
HULT INTERNATIONAL BUSINESS SCHOOL LTD (A company limited by guargntee) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022 Is. OPERATING LEASE COMMITMENTS Total fuwre minimum lease payments under non-cancellable operaling leases ar¢ as folk)ws.' Land Dd bllilding$ 31 July 31 July 2022 2021 Other 31 July 2021 31 July 2022 ises which fall due: In one year or less Between on¢ and yea Between Iwo and five years In more than five yeaTS 2,184,839 2.621.807 2.191.720 2,621,807 5.973J02 8,134,920 3.575J78 1,599,066 13,925,439 14,997,600 16. CONTROLLING PARTY The uliimate contsolling party is the Board of Trustees. The S¢]wl is a company limited by guarantee registered with UK'S Company Registry and a charity gIStered with the arIty Commissiort of England and Wales. so h&s no owner and it has an independent Board of Trusttts. In FY2021, £17,456 was paid to a twsi¢e's legal flmh for profts5ii)nal services (strictly subject to the effe¢tiv¢ management of tonflicts and with the apprvval of the Board of TTUStees). Nothin8 was patd in FY2022 (o the Twst¢¢s or their legal firms. 17. COMPARABILITY TOWARDS PREVIOUS PERIODS In 2021. the company dccided to change its fiscal year so th il ends 31st July instead of 30th September, better alÈ8nin8 the aceounts to theacademie year for Siydents. 2021 is the first llnpletnentllJ8 this chan8¢, and the ¢Y>mparative rIOd is therefort only 10 months ((ktober 2020 to July 20211. 18. DETAILS OF GILIr DISCLOSURE AND FEE INCOME The School does nol receive any grdnts. 29