CompaDy Registration No. 5356589 Charity Rcgistration 1108516 The UnAversfity of Chicago Booth Sebool of Business Comp4lly Ilmited by guaraDtee A•nu#l report aid flnaDciAI ltakments for the yeAr end¢d 30 JMn¢ 2022
The University of Chicago Booth School of Business Annual report and finaneigl statements for the year ended 30 June 2022 Contents Page Offlters ADd profem10th dvle S¢r#trylc and Dlrectors. R£port St•t¢meTht •fDlrtrtorJ' responilbllltl¢s l• re8ixrt of tht report the fiBDdl $tst¢nbemts IDdeptade•l AydIlol report 12 St*ttmtAt •ffln•llflAI •rtfvltl 16 BalArtee she 17 18 19
The University of Chicago Bootb School of Business Officers and professional advisers Dlreetors K'l aylor KYLee V Rajan The Dire¢tors ar¢ the tNslees of the ¢tlY for Chtriti&% Act PUTWJS Administrtlwe addrus q'he lJniveTSity of Chica80 Blh School ofBusineJ5 Onc Burtholomew Close Barts Squuc London ELIA 7BL Webslte www.chlLagooth.tU Rryls¢¢r¢d offlee One Bartholom¢w L103¢ Bahti Squar¢ London F.LIA7BL Ballkerj HSBC ple 8 L¥n4da Squar# l.un(lon F.14 5HQ Unlted KIDzdorn S•ll¢ttor I ComnY Telry Pinjeni Mdsons I Park Kow l.ceds West Yorkshire LSI SAB Audi¢or RSM UK Audit Ll.P 23 F8rringth)n Stree( London F.C4A 4AB Cbarity Reglstr8tlon: Cothp*ny Reg15tratlon: 5356589 1108516
The University of Chicago Booth School of Busin$ Strategic and Directors. Report Ref¢r¢¢¢ aud admini5trtlvt Informtlon I'he lJnivcr5ity of Chiugts Fl(K>th SclK)oI ()f Business (thCTh8rity"} subsidiary ofthe UnivcT5ity of Chica80{"The Uniyerbity"). The Colle8c of CommcTCC and Politics. predecc8sor ts) Th¢ Ljniversiiy ()f Chicago Booih School of Busin5, was originally foutKl¢d by The Universily in 1898 to provide practical busit)es$ instru¢tivn. Thc Charity is rL8is¢¢r¢d with ihc Charity Commissiort under Chariiy number 1108516. 'IILe re8iStera1 otTJce ufthe Ch4rily is listed on pag¢ l ts)gcthtt WFth the particuljrs orth¢ Charlty'spn)flOMttl ¥15¢T The Charity Is 8 Lhuritsble LM)mpany limitrd by guaTantec and is nmjre o)mm¢Mly knowt) AS fhicago Flooth" Dlreetori And eharlty trwttt4 ThL Churity Directors are alsTr th¢ CTharity tTUStrts. 'lThcy hav¢ s¢Tred in oific¢ throughoui the ye4r, Unl othm¥ise and weTC followJ: R Krosymer (Resigned on 15 July 20221 KYLC K'loylvr M V Kajan (Aptointed on 13 July 2022) Asso¢lat¢ Den, Exrtulive MBA Proirn Julie Mi)rton Slrue¢ure, GoweTnJLnce and M•n•getyen¢ Governlnz D•tl 'I'he Charity IS 8overned by its Memorandum Articlcs ofA&%wi¥tion 3 February 2¢N)5. Recn¢llmemond TMIRln olDlr¢don ThL Memor4ndum (j Anieles ofA&8oci&lion ofthe Charity pwvide for the appointhicnt of r)irecton, who a]x> %1 as Iru4tees.'fhi UniveThiiy which L5 the sole'mL'mb¢Y" orth¢ Chjrily. i¥ LYnpDWLY¢d kn pIn1 thc Dircctors. l.'or ¢hc fiseal yearended Jun¢ 30.2n22. Ih¢Chorsty has three l)irectOT5. Rsnddl Krouner, K# Y¢¢L Lee, and KimlKrly P T#ylur. Professor Krosier is the Nurni¥n R. Llobins ProfLwofF.conomic% and DLyuty Ikgn ofihe lJniv¢r5ity nf Chi80 lIth SL'hwl of Bu5incss I"Chicago I1?th.1. In PnTrf¢ssor Kr05ther's rA)sition Deputy I)ean ofchi Bwth, h¢ ov¢rsees ihL F.MRA campus¢s in Chi80, and Hon8 Kon8. Pmfessor Kros7ner's extsIv¢ experiencc Profwu)r. ot Chi¢480 Bwth. where he aiaivcly involved in ChiLU80 Bwth rxTrliLy %tlin8. providc5 thc rcquisiie qualif110n5 to be a DiTlor of thc l.ondon Lxeculivc MBA Program. (TrnL of the rryJms for which he ib 5)nsible The Univ¢ysity. Ji 15 inLend¢d thai un¢ ufth¢ DirecrS vf thc c.harity will bc the t)yty D¢Hn for Lx1[¥e MFIA {F.MBAI [Ko8T$I'ChI Elvxh. ThL second Dircctor. Profe&4)r Kg Ycc C Le< 18 thc r)avid Lee Shillin8law Distin8uishd Service l¥ofc5x¥r and is Provo8l #t The University. A5 Provosl of The UnivcYsity• PrOfer l.cc ovcr5ees all &8¢1$ of Th¢ Ilniwer4ity'5 acad¢mi¢ ¢iTrmmunity. Pn)fLYor Lee'5 rA)$ition as head of#ll vf lad¢mIC aclivilies at The Univer5ily pmvide8 thi r¢qiijsitc qualification5 10 bc a Dtrector ol th¢ ItsMknI 9(Ity. It 1$ intended one of th¢ DirKtots 01.the Chariiy will hL thc University's Prov05t. Thc third Direcior is Kimberly P Taylor. Vice Prtsident and CJenLYaJ Counsel of The University. l aylor'5 IX)5ilion 35 h¢ad of all Ic8al atrairs for Th¢Univmity pft)vid¢s' the requi5iie qualifi(lOn$t0 b¢a Direc1([he LonLknn Charity. It 15 intended thal one of the DIrIorS of the Charity will be a sentor memb¢r of the Universily'5 leyl staff. On appointmcnt cach truste¢ rciyives o w)y of thc F.ngland and Walcs Charity Commission's pJbli¢ation -Thc c55cntial ¢nJ¥t¢¢.' what Jou nttd to know. what you n1 to (kb- WMI #gre&s to follow IL Trainin8 ne&Js are &$9(%1 and met &$
The University of Chicago Booth School of Busine&s Strategie and Direclors, Report (continued) Strllrturn, tovenJnce and m•g•th¢•¢ leoffjilnwj) The prirnary active d¢cision maker for the arIty'S &tivitie5 is Pmfeswr Kros7mer, one of thc Dior5."[be London Ch#rily is one of three wwldwide Chicago Bwth part-lime Lxccuiive MBA pr(Trgrnm& $cIficallY dcsi8ned for ¢xp¢rienc¢d, accomplished, and Working bJ5illts5 ¢xe¢ulives. Professor Kro5 whil¢ primarily bj in Lhicugo. w&s on assi8nmeni in l.onthn. (x)rnpleLin8 a 28 month i¢rni, during the f15cal year ended June 30. 2022. Professor KrosTner reFQrts to th¢ Ikan of ('.hicugo Ilooth. wlK> h&s ov¢Trll rwx)n$ibiliiy for iKJih full-timc and part-iirne MIJA pro8raIns and oversi8h14)f the lIrt buSinS Sch)1 faculiy 85 wcll. Th¢ Dean (If chic80 FIth rew>rt5 to th¢ Provost. whose p051tion is descrid aknwe. The Pmvost rff4)rts the Prcsidtni ofThe University. The Presidcni is resnSible to a hosi of UnivcTsily t)iTrylors. TheA550ciat¢ Dean of the FJXlXUtivc MBA Pmgrgm is r¢swffisibl¢ forw1{1 thCdaY-t¢Y 4ffairsof th¢ CTharity. The Associuie I)ean and hw dLI¢¥es can nc8Oti¥le and executr on bchaifofthe Charily wntrllct5 for the purchos¢ of 8$ or vICeS in the ordin#ry ¢ourse of iJrfrd¢ion5 of the Charily subjeu to limithtiLTrrtb imp(IsLxl by the DireLwrs on thc value (Il. thcsL contracts. Th¢ Asstxiak I)rb hire crnpllry subjed tsTr ihe 4pprOV fmm ihL DircctOT5 for ]ri¢¥ G¢)mpettsAtivn pnd bcnefl"I'hc AssociM¢ Lyean cln make final dls1on50 appliulions &lmitted th¢ &."MHA pro¥ram. Objeet. #Ims. objeetiv¢i •ad a¢tlvl¢ks Charlioble otyeets 'IThL Charity's iJbjecL% as set Oui in its Mcmorandum arml Aru¢1¢5 of A&wci4tion. 8r¢ the &dv&nccment of cducation, in partiLul&r {Wit)ut prcjudic¢ WJ thL Btheraltty) thrwgh thc provision ofeduL4lion providoj in thc Unitrd Kin8dDm. AAm¥ 4ndlendedlty8c¢ 'I'he kLim of the Charity is 10 Advincc xholarship and repwch in the field ()fbusinLSS and ecorMi¢s. Th¢ (:hariiy 18 An intcwal pyrt (Trt'ih¢ lJniveryiiy whose injwvalions in busine&s etion #nd path brtaking rc5C4rch have rft>ducLxI idcas and leadLrJ Ih&t Shape th¢ world of bu4inrs5, bringin8 ecorKMnLC I¢fIts lo gxi¢ty. Nine Nobel laureaiL¥ huvc Tr either Lurrcni or fonnLr fa¢ulty Mrn1¢5 of Lhiwo LkM)th. ObJÉ¢ilveJfor iheyeur 'I'he m¥in {1¢£¢1 iTrl'thc LTharity for the y¢4raKIAI 30 Jw 2022 were: Continuc lo rttruit o highly wlified wol of applicants fw our P.ML4A rogram. Thc recruilin8 enviwnmwt remain5 challcn8in8 and it will 18ke severnl ycaT5 lo rcbuild clas5 S17£ of75. lnfrrn4tion&l Iiavel forour ¢AatT and For polLntial candidates LxJnlinu¢s to be curtai1. which rnean5 rwruiiing wntinue$ to br lar8cly via Loom. rurther, thL pandemic had ¥n imttha on many rtIal ¢ndidateS eaTter wurity. However, we will conlinuc ¢0 dcploy additional creativ¢ r¢¢nLiting ladi¢s iniliatcd this p&sL yedr, and w¢. hu to grow ihe si/L uf Ihe entLring Class OV the nexi few y¢8rs. W¢ will 01 wntinuc cxaminin8 thc fonnat of our otTwin¥ and our lon8er4emi markdin8 5tratc8i&% to align with market )ndItion 12) Increa5C thc quantity of regisiraiions for rK>n-degree program¥ in¢ludin8 those #re on a CU5Mized ba51.% to comp8ni¢s wishing to pTh>vidc tTainin8 for 8roups of their ¢mployce5. Increa5c our en8a8cmcTht with Booth alurnnt and wrp)rat¢ Fwinern io offcr prowm5 that are Ormu&l intcre51 to them and to vur fdcully. Arcelerdtc the &Ve1ment 4nd delivw ofonline Executive EdutIOn t0raMS during the dU10n of the pondemic and as In-rTn pro8ramminB and p&(iripaThl lrnvel arc cUrr(lY not an option. Build on the developmcnt and delivery of ¢)nlin¢ Ex¢¢u¢ivc l.Alucation progrdms toward thc Frtrn)an¢nt expansi(Trn of the imFx)rtsnce of these pro8ram$ wthin our [fOllO ofwogram offLYill85. Incrtrd5C the amvuni of (knnaied funds and particilon rates of 8lwnni in fun&r8ising aL*ivitie5 of the sch¢)ol from the Lumpcan alumni bw. Improve thc visibility of thc Chwity in Lurw the Mithjle LAst and Africa through marketin8 and public reldtions. (31 (41 15) {61
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Objrtt. aims. objeetfves and Aelfvltks (¢o*tlnwed) Objeclivesfop iheyeor (conlinmed) Continue to monitor ihe wc¢n(4ge of Audcnts wTrK)se fees are m¢t by their employers and thc extent to which IhDse fee5 are met¥nd to review our8ui(lan¢e Siudents on how to arvroach empioy¢ry w wquesi fee suprxirt. Lonsider ways in which we can brin8 ihc bUrit ofthe Charity's eilucaiional pmgram& faculty re5tarch Ond faeilit¢¢s io lh¢ wid1 p)ssiblc rangc of pIc. within our available budg¢¢. {9) Dwloy increasryl scholarship funds io i¥)niinuc io aitract highlYUallfl¢d s¢udenL& Pmvidc support for ren([Y-lntrOdecd fundrdssing pro8r8ms for s¢holaTships for F.MBA Program Irope.. hwo for wom¢n and onc for underrcprcxnted rn>norily 8Toutfj gnd th¢ 75th AJ1vcr5ry awar4 in addilion to gular merit s¢hol#rnhip¥. 110) Increa crtga8ttneni wilh corFKTrratcs and stskelKJl(kn in the ffgion. 11 I l Lxpand thc activities within th¢ n¢w, more sp¥i(ws rwnpus space by offerin8 conference l( 5erviccs io the LJK ¥ummunity and bu.%incss 5cIM)ol partners.-I'hiswill ¢nhan¢e ourvi5ibility wiihinthe UK business wmmuniLy and providc an¢ill&ry income kn iho charity. {8) SiroieRles M éehleve theperlod's objec11 ThL L'harily ¥¢¢k$ w ¢nrol sluden15 in vur cducational prv8ram5. To tho1 end. li ¢4rrics out markciing and pmmotionul aciivitiL% throu8h()ut F.un)[. thc Middle li¥st. and Alrich. 'lThe5c activitiC5 arc surv)rtd by 4dv¢ni$ing ¥#mpaign4 online IthnTrugh l.inkedln, for examplc). in leadin8 publications and sc4rch cn¥inc optiMilian, in gddiiii)n w dirLci myrkeung #nd public rel&tii>ns. Thc5c aaiviti&$ arc ¢xpressly desi8ned intrLMlucc pmyclive Students ynd local bu5ine&8 liyd¥rs its thc ul¥ll0nd1 pn)8r8ms al l.on(k)n wnpus.'ll)c CThurity cmploys LnndOn.lS.cd 5tsff. whose full.limLjubs are tth faiilithtL' Ihl dclivery of aLnIL TXO8r8ms.'lThis 1% Lm4bled by learns which supwrt thc academic proBrarn5. a campus-widc op¢raiion8 ieam, and also a tcam which provi(l¢s sUprn io appmximM.IY 3,3(Kl alumni and 26 Alumni organii.ation¥ in F.urope. Arri th¢ Mithjle IASL 'Ithis SUPTK>rt deepens ihe Chthriiy's r¢laiionship$ wilh olumrti tn the re¥iun and local business wmmunill which our alumni belong. tuilion f¢cs do fully ¢Trver th OPLYYtin8 Cosls uf Thc Univcr5ity.'I'hL UnivLrsiiy employs $ITIn Lhicago and thc IIK kn dcvclop re1lon51pS wilh alumni, including those with the financial rncans fvnds Ihe lJnivthity. Rccruitinb siud¢nL8 during thc f15¢al ytsr ended Junc 30. 2022 rcuuilin8 oGl¢ ¢h&llen8inB and requiTrd a unique
ppruttrth. Rcturnin8 to 8 class uf 75 is dl?dent only OUT recruLlin8 bui alw on the long-lcrn
r¢p¢r¢u81ions ol'ihc pandemic th¢ ¢wn()mic and ry>lill1 stsbilily of the LMFA rc8ion. IL is al incumh¢n¢ upon U8 lo cxamine our F.MHA offerin8 and just rder it more tlcxiblc arwj resilienl. Whilc r¢twilding to th ¢18$8 sitt or 73 will lake kVLYal yc4r5, we continuc to ¢xornin¢ the fom1 of our offering hnd our lon8cr-lenn marketin8 strot¢81¢S tu align with mrkd condilion5. Thi5 f&St year. whil¢ tyavcl sWd rc5umE wc continued to offer msny virtual evenL8. A$ travel ¢On¢inuvs tsi"nornJaliLe." we will abl¢ it) ulili7¢ Ihe campus and cla55 Visits rccruittn8 thcse are big draws. However, risin8 inflalion throu8lM)Ut th¢ r¢gion and vaH ¢urrcnLy fl¢tionS impacl cundidate5' atTrility io fund their 8ludics. and w)sI.pdeMIcj0b insCQJritiC5 rendercandidJlc5 ncrvou5 Y41x>ul laking limL off of work to pur8ue an MBA. UkY#in¢ And Russia havc bl 5tron8 markds for u5 in the P&8L bul with ihc TrCnl war in Ukrainc. enrolments. from iKTrib countries huveall but 5prd, and cvcn accc5sio Lonth>n for stuik.nts who rebide e&st of Ru55ia OT in nci8hlM)urinB countri¢5 is now dtffi¢ult and exnSIve the io re51ricid flight rout¢5. ChigO Ejooth Dcputy Dean Randall KTOVJ)¢riemFx>rnTiIy Tcbocatcd kn the IIK in Au8USt 2019 in orderto mvredIrrtIY ovcrsce the Chl.5 move to the ncw, iar8u c4mpus and i(J s¢ &$ amb&ssador for thc ych(K)l in the LMLA region. To hclp extKmd the s¢htx)I's brand awarffless in thL re8ion. Depuly Deat) Kmsither sp¢#ks rcgularly wilh mcmbcr5 of thc news medi41 to FxDvid¢ E(unmenlary ()n 8lobal markets and frequffltiy 8$ a modrraknror spker at media and industry ev1$. PrDfessor KrosznLT tsken an &(#ive 1¢ closely with thc Lon(kTrn supp)rn recrnirmtht businc5S development efforts aimed at re¢wiiin8 high-[)181 ¢8ndidat&% WIKY will be athjitive to the B(x>th o)mmunily and to all of the 1,5 PTograms. Durin8 the pandmi¢, we en5urcd the LYM]tinued &livuy of hi8h*ialily acadctnir in5truciion and CO<iCUlar en8agement despit¢ for¢ed iransition to ronoie instruction. This h&% served us wcll. ¢ven os we move back to thc
The University of Chicago Booth sch(1 of Business Strategic and Directors, Report (continued) Strotegle$ 10 tteleve iheperlod'& objetkn fcondN#edJ physiLal cla%room as our norm. We rmyw a skill¢d * virtual instruriion whith a]kyw5 us lo wograms with global rea¢h more readily. Uuradmissions criteria ore setto th¢ dthievement of the Objtt(iv. W¢ s(tk appli¢anL8 who di%play irnprL5&ive profc1Onal andlor personal track re£ord% and demonslrdte academic pn)we5s %thich affirnly their abili¢y to navigale lknoth'% A¢ad¢mi¢ rigor. Applicants arc TtyUiTtd submit d¢tsil¢d wriiien application& providin8 iheir academi¢ credeniiols &&$e&8meni ittt rL3uIL and explaining ihcir WLV ¢xrthet)c¢ objectivL¥. Applicaiions must be Lyompanieil by IterS of remMendation fmm the applicani's manager and pn)fe&sional wllLuguc5. and. when POS5ible at the lime of aA)lICl01). a Idr of Sup1 frnm the aNJlic4ni's employer. Qu#lifi¢d appli(t)ts are Also inlcTvlew. We have incrLll5cd the tXM)l of8eneral %hol4rship fund% to fvrthcr pand ihe tKM)l of TK>lLtial applinIs. In addition Iv rnLYit 5cholar%hips. we provide scholarships w8d¢d at women and unikrrcprcscnlcd Broups who would oth¢nvis¢ noi b¢ able tojoin thc pro8ram. and a 75th 8rfftiv¢rw award. We r¢ cuAomithl, compHny wific ry)n4e8rce pro8ram5 ihrough a dirttt sal¢% S¢rai¢. W¢ offeropcn enr01mLt progTam4 on topiLs of inieresi to th¢ twsiness LX)mmunity through 8dvert15in8 and g v4ricty of dir¢¢¢ markeiing t()(115. In l.'Y 22. the non-de8fL% marka slowly thrned 4nd w¢ werc &ble to deliver two pro8rgms. onc ¢uSiomi gnd onc mulii-sc%sI( opcn cnrolment pro8rwn. Prlnclprtl 4¢¥lvlrfeg ofiheye4r Thc ChaTLly otTLrs ¥ piirt-iimc I.¢¢11¢ MBA dwre ]xogram r( Sdts. In Ojilion. the Chorily off¢t% non4lc8rec bubiness eduLUtion courscs coverinB finAn¥e. mwkdin& 01&)()n5 ¥tr&tcsy. and lewJer5hip. A5 parl uf ils un-¥oin8 supp(?rt for graduates ul. thL. LIlty.$ LMBA rKvsram, 8raduaitt arc i)tTL¥ed acecss to C4reer and leadership dev¢lopment reiourc£5. coachin8 and Op[tnItieS parnicipaie in netwnrkin8 ¢Vts. {e.8. faculty alumni an(Vur eXt¢rn speaker5 hcld Bi thc Charity's fpLililyl. In the Ilniled King(k)m. the Charity4cld cvcnts during the ye4r whith wcr¢ OF¢n pp]e Mt crtlY uL(S in our F.MBA pmgram, inLluding thc Beneral bIle. Thesc ¢v¢nts in¢lud>J ¥p¢Lithl l¢aures by fa¢ul(y? WLII 45 confcrences and roundthbl¢ ¢v¢nis on tr)pic5 of inlcrcst the 8eneral publi¢. Th¢sc ¢venL8 were conduded in"pcrson, virtually. viu 7AN)m, ur in a blendaj fomi& irtcjuding Ix)ih in"peN)n and virtual ac¢¢8s. All of th&8¢ ¢v¢nts w¢rc tree ror vur students dl[ndIn8 on ihe evenl m#y h#¢ included a ty)minal char8c for C8tCTin8 lo member.% of ihL general public. Other eveThLs WLYe lo members of or8anir3tions includin¥ businL55LS and charitie% noi dire¢¢ly NITiliated wilh ihe University. lThe evenLs providtyj #c¢css our facililio3. and in many casc5 the experiise of our faLwlty and sthtT. Fvcnts arc prornoied thmu8h twlnuor88nitstion& on w¢bsitc, Hndlorthmugh direci emailin8 public relali()ns xKi#l mcdia mpaign5. 1.he ljnivwsity 8upw>8 an adive rc5carch agenda thnMJBh 13 reyearch wiiru ond h&8 a lthure ptsli¢y for rUltY that rc17 heavily on 8round-btYakinB rt8¢arth. Rer(h 15 conducted in disciplinc5 such a5 ttonomics, tinon¢¢, the behaviournl Scicn& Our faculiy gre rcc4)gnizoJ globlY for thcir contributions to IMMli&s of knowlcd8¢. Since 11$ inccption, the University ha5 b¢en a diuinaiwe inllLxwal #nd edUclonl (xmnmunity. and thc valuLS th&t undcTpinned its. u¢abli5hment hawe an imF¥)ffani 8uide since thal lime. In ad4iiion, Ihe Charity published cxten5ivc inforniation on itswebsitc and thwugh othtrpublicaiion5.'lThis information includLS the res&qrch undLYtsken by its faculiy IX)mmcnt and analysis of ¢UTTent iopics, and medi& such &$ >dCaSt5 nd videos sharing thou8ht leadership on wpi¢s affeding Lx>mpanie5 and or8anizAtian5 amund the globc. This infonnation is free and #vaildble io the public. Review of gehievemeThtS 8Trd perform*Aee for ¢bE ye4r Operorfomalperfornwnce ofiht unlrs1ty Durin8 th¢ y£u the LMBA program radUated its 10 Lonthn-b&sed cl&8s ofstudenis. During FY 22, 219 Alumni of Chica80 Elooth, residin8 in thE F.MF.A T¢gior4 donatcd a total of $1.438.395 directly io th¢ Univ¥r¥ily ol. Chicago parerTrL in philanthropic supp)rt for fallY ywrch. 5tudLYt 5cholar5hip5. and alumni and University pti)8ramming throughout our international communiiy. helping enrich the business community to which Chica80 &-K)Ih alumnt belong. A$ dire dO[tionS ts) Ctsic48o. these sums are not the responsibilily of these truste<%.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Review of achltvemeThts Dd ptrfornatttt for iht year {contlnued 0perallondlperfornjwe olthe Mniversity {co•Hlmued) During the pand¢mi¢. we en$uj the wntinued delivLYy of hi8huality athic InStru10n a¢Jd o)vcurricular enJJa¥emeni despiie forc¢xl ¢ran¥ition remotr instruction. This has servLxI us w¢ll. cvcm move back tv thc physical cla&sr(x)m our nonn. W¢ are skilld at virt41 inslruclion which alk)ws us olTer [08ramS with a 81obal rLYch more rcadily. .'Y 22 elYoTts resul1 in 53 highlysuajificd new Executive MBA EMEA students emrolling in Sewember 2022. Thi lass siz¢ r¢pr¢s¢nts u ¢onsid¥rable decrca5c from thc Au8ll 2021 classof65 SLU(knts. I'his new ¢lass particulllrly haTd hit by ihe impa¢t ot'ih¢ curreni T1111(¥1 al LorKJmic climate througlK>Ut I-'MF.A.'lTh¢ September 21122 h&$ stA)ng acadwnic Lredeniials wilh 58Y( holding an advaneed degr". th UVLYU8e. thl students have 12 years of work ¢xpLrienLY. 30 uiunlries are represented.. ofthe ¢la%5 idL'tllify l¢male. Durin¥ FY 22, Classes wLrL' taught in hybrid with the faculty in-wx>n bn IA)ndtsn. Thc number of lldcnts joining via 7wm dlxlined the year pr(Iwess¢J. CarL'¢r and leader8hip supwrt arc iMrrtant ¢omFN)n¢nLs t)f ihe cufficulum And studL'nts bcncfii from individual carccr and l¢ad¥rship Cubing Ilurin8 their lenure 4L% students and then lor life. Is alumni. This year, we inLrea%LYI &tudL'nl lo L)i.slingui%h¢xi F.xiKutiV¢S•itt.RcsiJ¢nc¢ (alumni SupplL'mLI the guidJnc¢ given by wa¢hLs1, whiLh W&1 VLYY wcII-rcceiveAI. cOrw)rC rL'lutiuns WLTC slrengihLyyj by &KTr)nlY conth¢ting cumpanics Nse awarencs5 (Trf our F.MHA and Lxe¢uLiv¢ FAIui&iion ptO8ranLS and IM)Stin8 educaiional ev¢nLs led by Uoiversiiy f%uliy an4J sthff vn lopics of interesi to the bu%in¢Js Lvmmunily. wvcrd8L of our 5tudLnLK alumni and faeuliy h&$ ¢onlinuttl bl a focus, Ind wc h¥vo ¢onlinu¢d in . ¢ngHg¢d wilh key corwratcs arwj stskeholders in this mark W¥ hav¥ MainIned a nuMr uf eoryx)rdle pantK'ryhipy thmpaniu u5 divLrsc as CIFI F.8ypi. SOCAR. #nd %uv4nnah Lnergy. WL a15V LM)ntinued our lonytanding relatic>nship with Ilrilish Amcricxn Bubincs5, Ihe Chamk'r rcommcr¢¢ in the IIK, and expared our relationship wilh th¢ Tlriiish Ch&mher of ti)mrncrcc. Wc partner lo boih yponsor #nd hoA a variciy ul. infomalive evenl% I1 prvgrams thioughoui thc YLW. In l.'Y 22, thc rrfm4e8rtt pro8r4hm 8lowly reiurnLxI and wc WLYC able to deliver ihL. fiN in-PLrwn ¢u%li)mittd pro8ram since the k'8inning ofthe p8tkJcmi¢. r.Kecutive L.ducalion 51aff did continuc kn cultivale Ihe rL.lationship$ wilh IIK. Lur()pc¥n Union, and Middl¥ F1¢M COMnic5 in ordty to rai% our visibility, connect with the mgrk¢l ond share ¢he wnsidLrable inlcllectual Lapiul of our fa¢ul¢y with thL business community. We¢(bn¢inucd io offcr our8ucce*sful open cnrolmeni pft)grym. thc Ae1Ced DevelTrpmcni Pru8Tam. which wnlinues to LJplure an in'mloal audience wilh mlL taking placc at th¢ l.ondon, Hong Kong and Chicogo cnmpusc5. Sessions WLre h¢ld in Chiw and Lth)n in FY22. Immever. sessions w¢r held in Hong Kong due tts restrictive Cnvll) rc8ulations. FIKAllclal ra¥ew resultsfor theyeor -rhe Lhiirity rc5ults fell Short ol. its financial objecliv¢s tiy the year. rel1ve io eXpthI10ns. and u)ntinud to operdl¢ ol n lkfirit. Both raenucs 8nd r1 income wtte le&5 th4n ¢xpLY¢ation5, lmarIlY duc lo lower F.MBA studenl al'naMnL, 4)nd a$Slat¢d with thc Wolon8 psnthmi¢. limiL8 on in-pep•n trKhin8. aT¥J thc dilTiculty of SIjent Iruv¢l t(1 London. 'I'he overall loss in 2021-2022 was 8reat¢r than the loss in 2020-2021 by £3,117.010, as muGh high¢r ExpSes far cxcccdcd the increase in rrvenuc. In addiiion tts illcrlw in expcn5es related to a partial return in-person ¢la$xs the enlily recogni£ed a £629.9)5 curT¢n¢y which for £1.079278 of thi5 incrcgse due lo the thng IJST), pritnarily the end of ihe year, compared with th¢ GBP.
The University of Chicago Booth School of Business Strategic and Directors. Report (continued) Revlew of achievtments and performftt¢ ¢lJt year (eontlnued) Flnondalrevlew dndrdwltsJortheyear (conlimtd) Overdll revL7hue increased by £1,778,741. {]) EMBA program rEv¢nue inCred by £1.3(rf).864. lothj inc¥eased from average of 95 studLXt5 in l.'Y 21 to an aver&%e of 124 sw&nts in FY 22. with morc U{knts in )th LX)hLTrrtk In FY 22. me Students in thc pro8r¥m t)k leave until in"pv50n Ifachin8 resumed. Thisaverd8e does refl¢¢t 41wMnlrcpr¢SertiIng th¢ return ot some Tr'y 21 students who deferred durin8 the hci8hi of the rthtthiic and rNurn¢d in)n clAssc5 rc5umed for most ofthe l.'Y 22 fi%al ycar. 121 Exrcutive £dUtiOn revcnue iThcrea8vJ by £477.877 with the rc5umption of a fcw selttt in-person programs. Ovcrnll cxpenses incrfwd by £4.895,751 RL Scrvrce5 l.ees. and Fa¢iliiiu Expen5 in¢rcasL'd by £829.819. VAI. orb Rcnt incre45cd by £495.52]. VA'I. i)n 'nI p#ymert¢s madc in ry 22 comtAred with a fr¢¢ r¢ni wod lor much of i.'Y 21. FJa5c rcnt for by 22 ci>mpar¢J wilh F'Y 21 w&% unuff1cd a5 free rent knefits 8morti4¢d over ihe life vf ¢hL ISC bClnIng irt 2(Jiy- Ih¢r¢f¢N¢ FY 21 FY 22 b8se reni expthsL is thL same. Incre45&1 of thc f4cillics. including sccurily. cleaniny. main¢¢nan¢e for the remainder uf th¢ LXPLmSe iTh¢rea4e. Lxc¥wiive F.ducation exrrtnses i1¢$¢d by £351.488 ussoriatrd with thc direLi pro8T&m Costs of the resumwj Try 22 in-peryon pm¥rum5. 131 CurrcnLy Ios5 of £629.995.wmpar£d with a Wrren 8hirt of£449,283 in FY 21. a£l.079.278 inu¢ itt ex[TrYL5. F.MLIA in8iruclor travcl eXpelL inu¢wd by £304,965 as 8 rtsult of th¢ r¢sumpiMm ofinstructur trav¢1 from Chicagn tv l.LTrndon. S(arrtrnvcl and businL3J m¢hl exp8¢$ inkYcd by £240,627 due ihc rc5UrnPtion of LN)th slarr Ir¥v¢l und business fflcals. 121 141 151 StudLmt h(Trt¢l gnd rm)grMm 5tssion fLwxI catrrirt8 cxpcrw¥ in£$¢41 by £R91.639 due w the suMption ofin. PCTyon cl&sses w¢ll &$ int¢rna(Ky)al iravcl S5 Wteks. Th¢ Teochin8 And Scrvices All()Lion fvorn th¢ Charity's pwrEni in LThicago inCTC8sed by £941.YIU. Thc b&8e curM¢y of Ihis Lxpense is IISD.. and thc ffllire allocoLiun is #ssLw¢d unnuylly year-end. Thc cxchangc rate i June 30. 2021 $1.38 £1 cOmpHrL with $1.21 ttr £1 al JunL 30, 2022. In addition, Ihc portiun of tl allocaLion r¢prc%ntin8 ihc fM¢ral University Services ¢hary¢ in¢r¢#s¢d du¢ to tK)ih an overall inLrLYsL in the levy t() FIth Jnd 8n in¢rea5c in thc Charity's rcvcnuc. thc factor usd to all1¢ th¢ Iw by R(th utbit. 161 Whil¢ the Charity continuL) lo operate JI ¥ lo. lh¢ Univer8iiy mnain5 ts)tsJly a)mmitied to its primary rnission of b¢ing a worldwidc l¢ad¢r of hi8hcr edUtIOn and academic 5arCh and, more Slfically commitied lo conlinuing lo pmvidL thl funding wuircd to SUp)rt the LATrnthn Lh8riry. The London LMLIA prograrn 15 an integral part of thc business s¢hool's network of three CaMs£s. worldwide. for expul¢nl busincss profcssionals seekin8 an advanccd business de8re¢. Th¢ Universiiy and CThica80 Booth believe thdt the level of fiThan¢ial loss in¢urrvJ by lh¢ Lonth>n Charity is wcll worthwhile cotssidcrin8 its valuable ntribUll0n toward the mission ofthe Blobo] FMBA pn>gram. a wcll a5 Thc lJniversity's bToadcr glo ¢thaLlon mi55ion. The Univtrsity has Provid 8 l¢ttcr of $upp)n for thc Chariiy. As part ofthiscommitrnenl. well &8 ¢viJentt ofits ongoing supp10fthe London Charily. the Univusity commiiied to a 15 ycar Ica5c Iwiih an 0Oion to ternlinaie in 10 y¢ar5) to the camw5 and cvrnrnitted substantial capitsl fund5 for a ¢u%iami7tx14)a¢e build•ut. Consequently, the nUre of th¢ pn)gram and the ¢j for custorn space has very lon8 terni implications for the Univmity'$ ]Thence in Lonik)n. By these aetiorL% th¢ lJniver8ity has indicated its full financial supporl for ¥ long ¢emi we5cnce of the program in Lon(k)n.
The Unlversity of Chicago Booth School of Business Strategic and Directors. Report (continued) Revkw of Ithlevtrnenty #nd ptrformn¢e ftsr tht ytr (eoTrtlnued) In&rtelal reklew andre.Fwltslorlheye&r (comiixued) In addition. there 15 Sl8nificoni SLLPP)rt fn)m our olumni 1&8c for thc IATrThdon pm8fdm. In Odob¢r. 2022 and in appre¢iAtion hi5 MBA education at the univeilY of ChiLXgO School ofBusine5s. Robo1 Roihman, '77. has made 8 sub.%¢aniial gift kn thc school supix)rt its l.onth)n ¢ampus opcrativns and its Global in ResidenL Pro8rAm. Rothm41n's e¥tLcmd career includ1 srmding signifilani iimc in Lhe United Kingdnm. In rcci>8nition ol'thi$ 8¢nerous gift, thc raMS will renamed the Robert RoLhman.'77. tA)nLknI cam$. The LM13A pro8ram is strydurnxl w that li n$15L of 5cven con5ttUtive quarters of thr¢¢ month$ Firnt ycBr students Lumpletc the fi quarKn during a $inglc fisLI ye4r cyclc. Scptcrnbcr June. durin8 which threeJs¢vthihs of ihe tui(ion ftts are collecled. During the seo)nd fiscal yw. thc 5tudcnt complete5 the fin41 four quarters, paying the r¢mainin8 four15evenths ofih¢ luiiion fe¢ A SLYondary activity of th¢ Chariiy is to wowide non-dcgrcc husincs5 Telaicd Lxecuiive LduL¥lion pnTrgrams. Some arc availableon an VIn Lrolment b£si& bui most are syibvided &5 CU5to¥n dLsigned tratnin8 for o varicty ofbusinNs&¥ anij assvLi&tions. 'lThesL yhork on¢-we¢k {or murL'I prvgrdms", eduLe bu%inLss profcs5ion&ls on a of busin¢s8- rcldLed iopiL¥. The% courses offer accc55 w the Chariiy's firsi 11¥ss i¢a¢hing and fililics fL)r si8nifJcandy lower fe than ihose ncccssarily charged for thc FMrt.lime de8ree PnTr8Tam. trIng l.'Y 22. ¥ tse1 numiT of PTogrAm% wcrL rttumed in wson. 'I'he Chtrit)Cs financial rA>silion reflts a con1inu ittLr¢ in the accumula[ Ik.fi¢ilof £8.901.437. This fundL4 by an inLTC&SC in ihc Am(Trunis Payable LO CJft)up Lvmwii¢s of £4,073,110 Erimarily duc 10 5erYice5 provi(kxl by th ChicJ¥o parent dccrcasc in Amounts Rc¢L'ivablc from Cjroup COmlC5 vf £4,035,559 primarily #s rLyaym¢nt fr()m previuu5 u¥h iTonsfers a 8roup CoMpY in Ilon8 Kong. As a re5uli the ¢&%h w%ition uf ihc Charily rernain¥ vcry stuble. Re.rveSPOlhcY Thcchariiy rcttbgniststhenttd ts) holdrLSLYvesto med IM)th itsday.ttrday and Iong.Icnn obli8ulions. Halanced a8ainst this 18 Ihe nL¥d t() deliver valuc ¢0 it5 s(nts throu8h th¢ provisi¢)n of edUclL)n. Sinc¢ inrcpiion in 21KJ5 the Chllrity OPLrai¢d aL # ILIYS S Wt are focuscd primarily on ihe educAiion41 missM)n as ofthe mis¥ivn uf thc Univcr%ily &5 A whole und only secon4l#rily on the $pecific financial mo(kl ofthe London Churity &S 8 $tsndalon¢ eniity. ThLrL'fvrL', whilc thc Charity's lon8 tcrm financi nbj¢¢iivc is to IM>ld r&rvc5 Sutlicicnl ¢0 mcet the educati(m ¢ommiim¢ni$ or otsr siudcnts, annual 0rating hov¢ resultoJ in the r4rd £47,098.424 aL%umulated deficit. Th¢ Charily 1$ rinanLially SUprted in it5. day-to4ay obligAtiuns ihrvugh ils pareni,'Ibe lJnivcr5ity. The I)irLtors r¥>8M1C that thc charity operales Jl # si8niti¢¥nt defi¢il. li is impDrtsnt tu Mtc that Lottd i& one part of th¥ int¢maiional l.'MFIA pr(Trgram. 8iudents from Hon8 Kong and Chira80 also study in Lonthn durin8 spc£ial SCSSiOn WL%ks. while Lond(Trn siu(J¥Yis travLI to Chica80 and Hon8 Kon8 &$ WLII. During lh s¢&sion.i they in¢cr# wilh Iheir inlL'rnatitsnal whirh is a key M}nLn1 of rnhaneing the quaii¢y of IhLir ¥lobal LMBA ducation. Thc campu8 arr infftlaied and InrdCrndCThl. lthe finance5 01. th¢ pr(Trgrom$ are evaluaiLxl in combination. lThe Lonth)n wnpys is o rOt¢S1r pHrt of thc global mi*sion ofknth C"hica80 B(x)th and 'fh¢ Llniw¢rsity ofchicdgo a5 a whole. Furthw. the lJniv¥Ysity has a long-ienn vicw of thc imFrf)rtance of 8lobal wholorly intcracti(>n thai benefii ihe Univcr5ily andChiLx¥o Bwih in ways tha¢ arr nOinSarIlY quanlifiable in thc 5knrt ierni, nor dillY rinat)¥ially idcntified with iLs srrtifjc actLWLlies in Lontk)n. Forexample, overdll fundrdising nlY be enhancj indircLtIy hy th¢ global repu¢4tion of thc lJniver%ily. F'aculty eXsu[C to a8lobal mmunity may enhance researLh opportunities and. in turn re8e9JLh gr#ni op[rtunitICs. Thc Universily h&8 trf)th thc mission and ihe Ur¢C5 to 511PPOrt the Lot)don Charity and is committed th)ing so an indefiniw b&sts.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Fulureplons Key i)bjeLlives for the fure {1) Continue Ye¢rnit o highty qualified of aN>licllnL% foroyr EMBA prograrn. The rmitlng environmffit remains ehallenging il will tskc several years io rebuild kn an aveTa8e ¥lw si2¢ of 75. While intrrnationul travcl far our stsff and for w)Olial candidat is now only SFrf)radically Lurlailed due to the pandemic, the regivn suffcr5 from other eoncerns which impact recruiling.. Ihc WQT in lJkrdin& currcncy fluctuations, infl1, overall cmploymcnt5tturity- However. we will continu¢ deploy a&Jilionul creutivc TCLYUlting ta¥rtics initiaied in recent years and we ho to 8row the SIorthe eniering Ilass over the nexi few yeArs. W will als() ¢oniinuc ex]nIng the format of oUroffLnB and our lon8er-temi marf(eung $traie8i&8 to Align with markei eondiiions. {2) InLf1¥5e the quanlity of 8nd r¢8istrations frff r¥M-rfkgrte progtams ine1J[m8 those that Sre on a customittd b¥is ¢0 ¢ompanie5 wrshin8 10 pnTrvide trdininB for gr(wps of th¢ir employrcs. 1TrLrc our cn¥a8cmcnl wilh B(K)th alumnb and cvriNKaic partncrs lo offer rK)nkn¢ pn)8rams that are of mutu&] intucsi kn ihun and I our fa¢ulty 131 13uild on thc devek)pm¢nt I1 Il¢liv¢ry of online LxutiWc FAlucation pro8Tams iowwryl ¢h¢ Fenn¥n¢nl cxpansion of the imFx)n8n¢e ofih¢ pr()8ram$ within our (]10 (>t'iYf)8ram olTcrin8S. {41 In¢re4q¢ thL amouni ofdon&ed dnd p¥rticipgtion raw orUmn1 in fund-raising LiVI11¢S ofthe 8choL)I from ih¢ Fun)tw alumni base. {3) Imprvve ihe visibility of thc thprily in LuftyN the Middk and Arri1 thTOU8h markcting and public relAtions. (6} Lonunue ts) mothilor the studenL8 whose f¢Ls grc m¢¢ by their employers and the cxtrnt whieh those fe&¥ llr md and ts) 'vieW our guidncc Sdents on ]K)w lo aryr0h empltJy¢Y¥ reque fee sup). 171 Con.8idcr way5 in which we cxn bring th¢ bcnefit of the Charily'5 alucalional pro8rams, laculiy resuT¢h facililies th¢ widc5t Ssible range of pty>ple. within our avwlable bud8cI. As p&rt of thc5c etTDr15, laun¢h our new alobal Faculty in R&sidence Pr()8r#m eXpd fxuliy prexnL and accLssibility in LMLA. 181 D¢ploy incre&%j 5cholar5hip funds io continue to irad highlyualifityJ yiuden. Prvvith sUprt for r¢nt]y-1ntrJu¢ed fundraisin8 pr()grarn8 for 5choiar5hip5 for LMBA Prtsgrwn F.ur0: for women, for uTLTl.presffld gmup5 and for thc 75th anniverswy awaT(l. in oddiiion io regulAr mcrii scholaT5hips. (91 InLrLY5e en8a¥Lmcnl wth wtA)rates gnd 3k01(r9 in the regloll. Wlth the intent of building the tknoth brand in l.'MF.A to SUPTX>rt ihe dissemin1on of Rty)th kMwled8e aTwJ thlcnL (101 F.xwd the aciivitiC5 wthin the new. more S10$ umtW$ 8poce by olTerin8 Lx)nfucncc ¢tre smices to Ihe UK community and bUsinS sch1 pArther5. This wll enhance our visibility within thc UK bu5ine5S ¢ommunily and prDvid¢ ancillary inrne to th¢ dwiiy. Rlsl Managemenl The Dir(ktor5 havc rcvicwed the rnajor risks to which the Charity is exw>5ed. in conjuTbciion with the (Trverall annual revi¢w vf thc risks and unttnoiniie$ ofThe Univer5iiy. Thc DITe¢T5 are conicnl with thc PToccdurcs that have ¢3tabli5hcd to mi(i8atc those risks.'The following risks managed by the Charity- Risk I: Student class 517.e fallin8 below a levol at whi¢h onnuat fin8n¢iAJ thficits unacceptsble for the pri)8rHmm¢. Thi5 ribk is mitiga*d by rnaintainin8 a sutTJcieni appliwi wK)l mainthin Cl sizes betwe¢n 75 and 88 5tudenls."I'hr Charity is Currffllly implernenting stTaie8ies to meet the thgnging market envin)nmenL in h) return to enrolmcnt ¢1oss sitts within this tar8d ran8& Risk 2.. Therc is always gl risk of a change in the Univetsity'5 vicw of the strate8lC LM[rtanC¢ of an international presence. The risk is miti82Led by regularly awssing the Irvel of University 5UPPOrt to Ure long tLYm funding or budBetdeficits. The Univ¢rsiiy affim4J its SUPP¥rtof the rnt k)catiOn of the Lxmpus and a5Wi¥t¢d long-terni Icase commitment.
The University of Chicago Booth School of Business Strategic and Directors. Report (continued) Rls mÈTnaKenJent(crthdJ Risk 3: AcddLmic and %taff105se5 that mi8ht the quality of instructn an¢Vor the non-academic 1$t$ of the 5tudenl extwcnce. The risk 15 mitigaled by rdainin8 And monitoring statT thai arc ar0[latelY qualified ind tiwned lu deliver the hi8hesf level of scholtlrly instruction and ts) uphold The UnivL75ity'5 5tHnding a5 gn ¢liw in31iiuiion of hi8hLT Icamin8 in the UK and within thc Furopean cijmrnunity. Risk 4: 1.raudul¢nt, in4¥rKopriatc or incificienl use of Ytwurcu.'lThi$ risk 15 rnltl8ad by establishing and monitsTrTing appTupriaLe int¢mal con¢rols including stslff oversight and irainin& eng#ing wropriatc thyTd party aceountsnL8 and indendent audiiors io assist in shfeBuardin8 the Ch8rity's and mainiainin8 appropriate l¢v¢ls of insurance c¥)vera8e. Pyblle beneflt We have ref¢rrwJ kn the Bui(knce conthirted in thc tharity Commission's genenl 8uidanee on h]le InCr11 and guidan¢¢ relin8 5pccifically lo eduL¥tional and rebBIng chariiies whcn revi¢wing our 9imJ objeciives And in plannin8 our futurc vbjcclivos. In rArticular. Ihe inL¢s Lx)nsider how plnCd activities will wn¢ribut¢ty the aims Ltnd objeclivcs thcy have sd. DlselwTAre of IwfornAilon to •wdllor I"he DireLtors who held (Trfficc at dat¢ of8ppn)v#l ofthis StrAtsBic aThJ Directors, ReFrf)n nfi thai, YA) far a5 ihcy arc cach aware. therc is no relev&ni audit rnformalion of which the Company's auditor 15 unawarL' und Lwh Dtreclor hu5 tJken all lh¢ s¢¢ps thai they ou8hi have thken a l)ircthr to make ¢hcmselves aw&rc vf rclcvanl alhdit infum)ation und to atsbli5h ih¥t th¢ Company's is aware of that inf(ymiAlion. Auditor F¢ of the per5W5 who is a DIrtOr at ih¢ da of4yoval of this reiKWt C4)nfimis that.. 91) far as ihe DirLYtors ar¢ awoff, there is no rclevani audit Inform ofwhich the ComrAny's audilor i unawarL.' and • th¢ DI)1¥ havt iakth ojl thc stCP5 thai they oughi to have thkcn a5 H Dircc(ors in ordff ¢0 rn4kc ihcmselv awor¢ of any rclcvant audil infonnatton and io eslablith th81 the Company's auditor is aware ofth#t inlormaiion. Thi5 confinn&rion 15 8ivu) thnd should be intcrwdcd in acc( with the provisio of $418 of the COmni¢S A¢1 2006. RSM IIK Audit LLP have¢xprwed thar williTrgnes8 to wniinue in office audilnrand a resolution ts) reapp)int them will be prowscd at ihe forth¢J)min8 Annual fien¢ral Medin8. ApprovLd by the Board of Dir(*r5 and 518n on behalfot'the BoArd K'laylor I Park Row Lceds Wesi Yorkshire LSI SAR March 1,2022 10
The University of Chicago Booth School of Business Statement of Directors, responsibilities in respect of the trustees, annual report and the financial statements Th¢ dircclorsaye Yeswnsible fOrprer1nB the Annual Rep)n and the fIn¢[al statcments in acLYTrrdanL%with applicable law athd regulations. Company law reouirc5 thc dircctors to prepare fth8nci statrnents for each financial yeAr. Under th41 law ihey huv re r¢quired io prLp#rc the financial stat¢m¢nts in accordantt with UK Accountin8 Standards and applicable law (UK CJ¢nerally Acc¢wed Accounting Pwuctice}. including FR$ 102 The Reporiing andardomI1CqbIe irt ilxp IIK and Republic oJJreldThl. lJnd¢r company law the dlrccl0 must noi ¥ppft)v¢ the financial 5thtemenis unless they are saiisfied th&i they give & true and tair viewvfthL Stale of affairsof the ¢harithblL ¢omwiy arml of rhc exctss o[exdItre OVLY incomc for th period. In prerAring th¢sL' fifjancwdl Statemen th¢ dIrC¢r$ are rcquiTL¥I to: select suitable accoutlting poli¢ies an¢J then apply thcm wisistendyt muke jud8em¢nis and es11m¥. are reasonable and prepare IhL financial slatern¢nLs on the 8OiII8 concern Unl it is ingpprowia* presume thal thc company will coniinu¢ in iSInesS. I£ dirLLknrs are r¢yp)nsibl¢ for kecpin8 eqUal¢ a¢couniing lh art s1¢Itl to Show Ond ¢xpl#in the chAfiiablL compjny's ir8nwuons disclose with rLOnable ocaya¢y &¢ any time thc financial EK)SitTron ot. ¢he Lhuriiahlccompany and en#bl¢ them en5urc thotthe finan¥i#l swemet)1s comply with theC<ympaniL Act 2(K)6. 'lThey Afc E41w Mwnsiblc for safc¥ugrdin8 the a55cts of the uxnwy and IKnc¢ for kIng reasonoble stcps forthc ryevenllun
nd detKtion of fraud and other irre8uloriti¢s.
1The dirttl0 are r¢sFKJn¥ible for the and intwily cor1¢ and firt&ncig1 infonnjlton in¢lud&J on thc Lharilahlc ¢ompany'8 websilL. Legi%lJtiorb in the IJK governing the and diTA%emin&tion of financial staiemenLs may dirfer from 1¢8islati(m in oihLT jurisdiclion5.
The University of Chicago Booth School of Business Independent auditor's report to the members of The University of Chicago Booth School of BusAness Opinion Wi have audit the financial Aatements of Th¢ Univcrsiry of Chic40 Bth School of Business (the 'charithblc ¢ompany'l for the year ended 30 June 2022 which comwise the Sijrtement of Finaniigl ActlVjliL, th¢ Bdlancc Sheei, ¢hc Ch l.'low Staiemeni and nnlts to the firtancial statemen1& inLludinb) si8nificant accoltnting wlicies. The fin2llcidl rcEK)rting framcwork th has tr¢n applie4J in their Ircpwaiion is applicable law and Ilnited Kingdom Aceountin8 S¢andards. inLludin8 FRS 102"The Financial Rep)rtit)gSthndardAw)licable in the UK a1 Republic of Ireland" Iunitcd Kin8dum (knerally AcLLyed Accountin8 PracLlttI. In ouropinion th¢ financial stattmcnts.. Bive a true fair viewofihe stateofthe chDritabl¢ wmpony'y Hffair8&s 8130 June 2022 and of IL8 inryJmin8 resA)urces and appli¢4cion of leu¢S irKludin8 its incornc and LXdIturt, for the ye4r then ended. have been rKoFvIy lY¢por in a¢Lw(lan¢e with Unid Kingthm G¢nern]ly Atterngj Attourtting PrllLicL: And hhve been Jryarcd in accordCe with the requirem£is of th¢ Comp4nics A¢¢ 2(X)6. B8sls for oplDIo• We conJu¢¢¢d (Trur audii in a¢o)rdgn(x with 1n1cmlOnh] SthndaAL4on AudilinB IIIK}{1SAs IIIK)) llnd 8ppliLablc law. Our rl's)1lll1& undLr Ihi)sC Standard5 are funh¢r in th¢ AudiN)r's r¢snsibIlitIeS for the audil uf thL financial $tulLThcnts 3cclion of our rew)rt. We arc indermd¢ni orth¢ ¢haTitabl¢ ¢x)mpany in a¢ttJrdaJce with Ihe Lthiblll requiremLI thii arc rcl¢v8ni io our audit ol'thc fiMncial statements in the IJK. includin8 the l.'RC's Lthical %tsn(turd and wi have fulfilled our othLr cthical rPonSIbl1111eS in )rdance with thosL' r&'4UiT¢mcn15. We b¢li¢v¢ that the oudii cviJ¢n¢¢ w¢ hav¢ Olin¢d is $uffi¢i¢J)t and prOpria1¢ lo wovide a for our opinion. Conclujlons relating to loi•% eon¢¢rn In #udiiin8 ihe financial statcmcnts. wc havc u>ncluded thut thc trusitt, use of ih¢ going oTrnc¢rn bqsis of accoun¢inB in ihe prLyHruiiOn of Ihe finartciaj %lai¢rnentS 15 aprrfopriaie. Basedon the work we h4v¢ kKrfornie4 we havenot iikntifial any maicrial unccrtainlitts relalin8 to eventsorconditions th, individually or lIe¢ll¢1y, moy signifi(¥nt th>ulA on the charithble eompany'8 ability continue &s g 8orn8 concem for d rr)l of ai le&st twelve munihs frvm when the financial Sthtrments arc 4uthvri%d for i&suc. Our TC¥rf)nsibilities and the rwrt)nsibilili¢s ofthe thLS¢ttS with ¥vin¥ (x)n¢¢m arc drKribrd in the relevani s¢¢tions ofthis rew)rt. Otber InformA¢lon The other infvmialion compri8¢S the infomiatii>n lnilud in thc Attnual RLyorl othcr ihan the finartcial 51alements' and our auditor's rerx)rt therLxJn. Thc IWS¢s are resrrf>nFiblc for thc othcr infornation conlaincd within the Annual ReFK>ri. Our opinion on th¢ fingncial $tal¢m¢nts rx)t Govcr thc othLT information and. cxccpi to the exienl othcrwisc expli¢iily slatcd in our Tel we th noi ¢xwess any forni of assur8nce conclusion thereort. Our r¢sFM)nsibility is to read the other inforntIon and. in thin8 S o)nsider whdherthe 9th inf¢)rniation is maierially inconsi5tcnt with the financial statLrynents or our knowledBe Ob&in in the L7)ur5¢ of the 4udii or (Trth¢tWiS¢ UPPEAfs ¢0 bL matLrially missts*d. Ifwc idcntify Such rna¢erial Inconsiscll7oraaTcnt matrri81 misst8t¢m¢nts. W¢ requir to demine whethEr this gives risc 10 a malerial rnisstatcment in thc financial sratements ihemselves. Ir. based on the work we hav¢ perfomi)I we o)nclude thar is mi&slatement ofthi5 other informaii¢)n. we are requir&1 to report that f4¢1. Wc havc tthin8 to rqK>rt in this regard. 12
The University of Chicago Booth School of Busiiiess Independent auditor's report to the members of The University of Chicago Booth School of Business Op•nions oll other m•lterg pr¢x¢rib¢d by ¢he CompAnies Aei 21NJ6 In our opinion. vn thc work Und¢rtsk in th¢ of thc audit-. th¢ inforniauon givffi in the stragi¢ arKI Dir¢¢*or%' Rqx)¢ which i]d&S the Directors. Rqxjrt and the Sirdie8i¢ R¢p()rt Nepared for the purp)ses of cOMnY law. for the fin&nciAI yegr for which the finan¢i&l staiemLnts ar¢ prepared is ron515tent wilh the financial ststemenL8: and Ihc l)ircctors' Rep)rt and th¢ Siralegi¢ RqKVt included within the Siratrgi¢ and DirwtOTS' Rewri hk¥ve en in e0rdance with 9pplibIC le8 rUirem. MAtten on whltb wo are requlred to report by exctption In (he light Lif the knowled8e an(1 und¢rswidin8 ufth¢ thaTithbl¢ comnY nd its envtronmeni obiainL%l irt ihc course orth¢ audiL we hthvc not idlIf)ed material mis$14¢¢miyiis in the DirLYts)rn' Rcw)rt or ihe Straie&i¢ R¢pon in¢lude4J wiihin the Straie8ic atml Dircclws, lierAJrL WL have noihinb7 to r¢port in Te4PCrt of the followin8 mattus wh¢r¢ th¢ Compgnia Acr 2006 requires u5 Iv rcp)rt to yvu if, in nur ()piniun:
dequa* acLY)untlll8 rwordshve nol b¢cn kepL or Tewrn5 thiuatc for ouraLMlit h8v¢ notbeen reeeived frum
bThnchL3 rK)I vi5iled by u4 or thc finan¢iAI S'1nCnIs are nol in 88rccmrnt with the a¢counlin8 AfMI rdurns. (jr in diJclosur¢s oftrustees, rL¥nuncrgtTron specified bylgw gre tKJi mad< WL huvc not receiv¢d all the infomiauon And cxplanwlions we require forourwdii. Resp0tt51blll¢le$ of tn15te Ay ¥xplain¢d tnLirL t'ully in the 8thtement of I rusi¢¢8' TnsIbIlitieS sei oul on IM8c I l. the Irustee4 (who are also the direLtoofthe charitabl¢¢ompany for ihc Prs(OrmpXnY l#wl ar¢ r¢4xJnsible for thr PTLpardlivn of ihe financiul Sla(Lrncnt5 and for Ing 5aiisfied that they give & irue arhd fair vicw. gnd for such it)t¢rnal contml &$ ihe trust ddcrmittL IS neCery tu (able the of financial slatemLmts th#t or¢ fTte from matLYial mi35tatrment. whethcr duc to fraud or ¢Yror. In pr¢pgrin8 ihe financial 5tatcmcnts, the arc r¢wn8ihle f(Ir asSC55in8 the chari&ble Lx>mpJny's ¥biliiy tn ci)ntinuc going Lx)nccrn, disc1lTr8. oppli¢¥ble, m4trs rclad kn going concern and u5in8 thc 80in8 concern b&%is (Trf accounting unllw the Lrusttts cithLY In1d io liquid#t¢ th¢ thur11¢ o)mp8ny orto ce operalion4. or hov¢ no rcalisiic aliemaliv¢ but In ikn s(). Audltor'j responsib111¢5es for the thudlt of the IlthMeil 514temeNts Our obj11¥t5 are ¢0 obtain reasonahll assurnnic thui whethcr thc financiDI staknents 45 8 whol¢ are free from moierixl mi55¢alcmenL whLthLT du¢ fraud tsr vror, and i55uc an auditor's rerrtTrrt ihat in¢lu(ks our opinion. R¥#5onablc a5suranc¥ is a hi8h level of wr¥n¢¢ is a Buaranice that an Eudil LX)nducted in acwrd8n¢¢ wilh ISA% {UKI will al% dctcct a rnalerial m1ssialcmLt when il exists. Mi55ts1rmcnts can ar1 fTOrn fraud or cm)T and arc con5idercd material if. individually or in thc a88re8ate. iw (XMLld rc&g)n8bly beexAcd to influcncc the¢noMIC decisions ut'us¢rs iaken un the basis of thc5c finCIal 5taiements. The exlent to tbe 4dIe was eoffj¥wJered up•bk of detettlng Irr¢¢uhrf¢k4 tldIng fri Irrcgularities are in8tances of non-complianrc with law5 and re8ulations. The objttliv¢5 of our audit are io vbthin sufficieni appropriatc audit evid¢n&x r¢g8rding compliancc with law5 and regulations that have a direcl efftct on thc d¢t¢rmination of m4t¢rial arnounts and disclosures in the financial stsmen¢s, to rfO) audit procLuiures lo help idcnlify instanc¢5 Qt. non.compliance with other laws and wulations thai may havr a mTiai efrecl on the financial 5tatcm¢nt4 and to re$pJnd appropriately lo idcniified or SUSFViql nonrfomplianrc with law5 and 8latIons identified durin8 the 8udil. 13
The University of Chicago Booth School of Business IndependeDt auditor's report to the members of The University of Chicago Booth School of Business Th¢ exteut to Ivhieh the audit ws t•Aildered txp•blt trfdetect•Nt irreg¥knrltles, IncludlnE fraud (¢ontlnued) In r¢laiion fraud, IhL objLYiives of our audit are 10 ideniify 8nd ass¢s$ thc risk thf rnatrri rnisstsrcmeni ofihe lindncial 5tatement5 duc to fraud, to ob(ain Sufficient appropr18 audi¢ evida)ce rvdaryjing thc &&s&kscd risks of material In155tal¢mtni due to frdud thmugh designing and hmplcmenlin8 aprmpriale re$Fse5 and r¢Snd appropriately lo fraud or su.spcctcd Iraud identifi¢J during the audiL Ilowever. il isth¢ wimary re4x)nsibility ofmana8cmcnLwith ih¢oer8ighiofthos¢ch&rged with 8ovcmanc£. io ensure that the enLiLy'S 0kxfloS are Conductal in aCcdan with thc w0visio of I#w8 und regulation8 and for th¢ prLvcntion and det¢Ltion of frnud. In identifying ond a&sessin8 risks of m4l¢Tial missthment in rcipECt of irrc8ularilie4 including fraud. the audit ¢n8agemeni M.. obthtned an undLY5widing ofthc nkturc of the 5ecior. includin8 the legal and regulary framework thai the charitsble Company in and huw the th8ritsbl¢ wmpany is ¢omplyinB with the lebul dnd Tc¥ulatory Iramcwork: irtquired uf mana8cm¢nL and thos¢ ¢harycd with 8()vcm8nc¢. aErfJut their own idwiifi¢ation and as5usmcnt ofthe risk5 of irrc8ulariti&% in¢ludinB any krM)wn yal, SUSFtttcd or allc8cd in5tanws of fraud,. di5CU38¢d mauers alx)ul n(-compli8nee whth laws a1 regul10ft and how fTaud mi8hi occur including &wssm¢nl of how and wh¢r¢ the finarKi&l statyyncnts moy SU5¢¢F4iblc to fraud. A8 u rLsult of lh¢ pru¢eduTCS we ojnsiikr the mosi 5i8nifiÉ¥ni laws and rt8ulaiions Ih#¢ have a dIrL impath thL rinancial stsLtcmcnL8 are l.'RS 102. Ch&riii&$ 81)RP IFRS 102). CompaniL% A¢% 21M)6. Chariii¢s Aa 21111. ¢hc churi(able ci)mrdny'$ governing doLwrncnL 1¢8i%Ja¢ion And Charities Iljmtcction and Social Inve¥un¢ntl A¢t 2016. We perfonnid #udii procedurL) to dc1 non-wmpli4n¢Ys which may havc a m8(eri#l impAei on IhL finan¢ial styiemenL% which includ¢xi r¢viewinB the finttncial stalcmenL% inLludin8 ihe Irustees. RL'port, rtynaining rI to ncw or unusual Irdnsuclions which may in a¢LxTrr¢Jancc with ihe 8ovemin¥ inspeciing L¥)rr¢spothdcrhce wlth IOLXI authorities arvj ¥W¥lulAS advice re¢¢ivtyJ from external advisors. I'h¢ mobt signifi¢#nt law5 arml Te8ul1OrL¥ thai havc an indirea impct on the financi81 slal¢m¢nts arc those in relation to th¥ IJK Cyeneral r)ata Protcciion ReJ3ul#tion ILIK Cr1)1). WL pKrfurnicd audit Prour to inquire of managemLY)¢ whdhtt thc charitable cornpany 15 in compli¥no wtih these law and rc8ulation5 and in5pectul ¢4)tf¢'4x)n(l¢n¢¢ wi¢h regulutory authoritiu. ThL audit en8¥8Lment i¢am 1d¢nLifiI th¢ risk of marw8iJncnt OVLYridc ofcontrol¥ wld inu)me r¢o)8niiion as thc arc&% whcre ihe linancial stalements w¢re mmi wcrAiblc to material mi551alement du¢ to fraud. Audit prts¢tyJurcs PCTIoTmed included but w¢r¢ rn)I limid io Ic51in8 manual journ&l cnlrics andoiher •dju$bn¢nis, ¢valuing ihc businL55 iionaje in re1ln to Sl8nifie4nL unus1 transaciions and tranwtion5 entw¢4 In ouiside the nthm)al tx)ur5c of bysinw, challenging judgrnLmls and cstimaw rwfmin8 Uny¢l¢&I rLwiew over inLX)mc. and pcrfomiing 8Ut)stsnliv¥ t of deLii15 over inrom¢ And deferrcd irKom¢. A further dcs¢ripiion tsfi)ur rcsponsibilities fL)r thc dudii ofthe findnti&l slytcrncnts is locad on Ihc Financial Rer)rtIng CuunLil's weh8ite Mt htt :IAwv/w.f .ykluditorsre5 onjibilities. Thi5 dwirAioll foTrnS Part of our audilor's rqjort. 14
The University of Chicago Booth School of Business Independent auditor's report to the members of The University of Chicago Booth School of Busin$ U$e of our report This T¢P¢)rt is made solely to the ¢h&ritable L¥)rnpJny's m¢Thttt& as a IM)dy. in &co)rthnce with Chapter 3 of Part 16 of the Comr4nies 2(MJ6. Our audit w(Nk h&s Ixen undtttsk¢n so we mi8hi statc to the charitsble compgny's mcmbers ihose matiers we are requtrd 10 5tste to them in an auditor's re[ #nd for no 4xher purrK>se. To lh¥ fullest exieni pcrmitt¢d by law. wc noi accw or wumc rtswJr)sibilily to anyoThc othcr than the charitabl¢ wmpany and the ¢h4ritable ¢ompany's memlxT5 a Ix. fvour aydit for this the opinions w¢ hgve forn)ed. NICTrIOI.AS SLADf)F.N {Senior Statutory Audilor) For and on b¢h•lfofRSM UK AUDIT LLP, Audkior Chartered ALrountants 25 arrIngdon Stree4 Londcm. EC4A 4AB Daic . 20 March 2023 15
The University of Chicago Booth School of Busintss Statement of financial activiti (including the income and expenditure account) for the year ended 30 June 2022 2(122 2021 N(trto Charitsblt a¢tfvltles 7.209211 5,430,470 7.209211 S,430.470 Expendllure OD: Charitsble aLlivili (16,112,541) (11214,8971 Tol4lw¢n41tyre (16,112J41) (11,214,897) N¢¢ ¢xt¢Trditurc for the yeor {8,Y03,3301 {5,784,4271 Retonelll•¢h)n of fvndi: Total deflelt futtdi brnryht fomrd 138,196.9871132,412,S601 Tot•1 d¢fi¢l¢ of ¢arrled forwlrd I47,1,317) {3¥.196.9871 All inLxTrme and expenditw¢ thriv¢ frnm LM)niinuin8 #]¥1¢5. Thcrc wcr¢ rea>8ntsed 8ginsor losses h¢r than listLxl Above the expthdilure for the y¢pr. All funds Are unr¢stri¢*d. Thc not¢s on po8es 19 to 26 fomi pt of these financial stat¢m¢nt& 16
The University of Chicago Booth School of Business Balance sheel As at 30 June 2022 2022 2021 Notes Flxed imets Tan8ible ets 9.446.706 10.520,406 Debts) Cash #t bank a[ in h8nd 6.586.243 10,413,345 486.677 673,190 7.072,921 11,086.535 Crtdotors." falllni due wlthln ot yer 163.620,0031 {J9,803,92111 Net cirre•t Illbllltks (56.547.082) (48,717,393) Tot•1 •sts lem t4rrethi Il•bllltld {47,1(M)J171 (38.196.987) liabllltles {47.1j]71 (38,196.987) The funds of the Cbrlty: Unrcstrict¢d dcfiri¢ 10 147,100,317) 138,196.9871 All 98s¢iq and liabilities relate 10 unrestrided fUn{der1¢1t). Thc notes on p#8¢5 19 to 26 forni p&rt of thcse financial 5tatrrn¢nls. ApFYoved by the B(th ofDir¢ctorson.M. wi...1.... 2023 and si8rtd th its bth•lfby'. K'laylor Compony r¢8iStralion nwnber: 5356589 17
The University of Chicago Booth School of Business Cash flow statement For the year ended 30 June 2022 2022 2021 Not J¥d olltflow fro optrxtlng •ctlvltltA 13 {161.4421 12J03.154) Net tmh outllow from IAvestlD8 ethttl Purchase ol"tan8Lble t1xl (25.072) {108.4691 1186J14} 12,411,623) Ch •Ad e•th ¢q¥fv4lent$ Ai b¢glnTrlwi of yur 673.191 3.084.813 and eqwfvaltnts at the end •f the yer 486,677 673,190 18
The University of Chicago Booth School of Business Notes to the financial ststements Year ended 30 June 2022 Ae¢owntln% pollclej Ibe followirb8 )Itting wli¢ies have been applied c4)nSi5tently in dealing with item5 which are Consjdcd mAterial in rclation kn the finmcial $¢aments. Bts of pnp4ratlon The financial s(&twnents have Frtcn prcpaTed under th¢ historic Cost b&si5 of ¥ccounling. in a¢¢ordance wilh AccouThtin8 and Repjrting by Charilies.. Stamenl of Recommended PraL1ir¢ applichble io charities prepartn their fiTwi¢ial statemcnts in a¢cordance wilh ihe l.'inancial RcrA)rtin8 %tandard applilable in ihe UK and Republic oflrelJndll.'RS lo2)(cffLivc l January 20191-{Charilies SORP{FRS 1021}, lh¢ FiDan¢ial Rew)rtin8 Stgndard appli¢#ble in the UK and Republic of I]d (FRS 10218nd the COMnieS A¢t 2(Kl6. 'I'hc functional curren¢y of 'lMe lJnivcrsity ofchica80 B(M)th S¢hoDI of Businc5s 1$ con$ideTtd tu be tx>und5 8tL'rling bccause th4l j5 Ihe curreno ofthc primary Ca)nom ¢nvironmenl in which the Chariiy vpcratcs. Golog toncern Notwith5tandin8 n¢¢ liabilitic5 of £47,1)1? at 30 Jwie 2022 ond * loss for year th¢n ¢nda of £¥,903.330, Ihe tInan¢i818thlLYnLts have beffi prcpsrcd on a Boin8 wnLvn isis which thc director5 Lx>ll5id¢r (u bc appropriaiL' for the following rcasonk The direc15 havc weptred ¢wh tlow fo&15 for a of 12 month$ from th¢ dal¢ of apkroval ofthL5C tinancial 8t#tLYn¢iiis whiLh Indile that. takin¥ #¢¢ouni of rrC tyji plausible lwnsid¢s. th¢ chariiablc compllny will haw¢ wtyicient funds, through fundin¥ Irum its immedia the lJnsver5ily L)fLhic480, 10 mcct 11$ liabilities w they fall duc for that peri(. Those fore¢&5 rCdenaenIun Ihc Univelsiiy ofLhicw seekin& rcpaymml of the amounts currcnily duc to ¢he group, whirh at JQ Junc 2022 amounted t(> £56 rnillio und PTvvidin8 athlilional finan¢i81 supp)n durin thet rIod it'nc¢doJ. 'IThL Universily ofchi¢y80 h&s indi¢awd its inicntion to continuL tu make available such funds by the ¢h2ritsble ¢x)mpony. and that it Mji inknd seek rLpYMLI of ihe amnts Ju¢ a( thL trAlance shed datr. for the pcriiwj vcrcd by lh¢ f(W¢sts. As with rh8riiable eDmpJny plucin8 reliancL un other 8N)up ¢niiii¢q (Of fin#nLidl thc dinxlors [m>wIjgi thui there can bc no ccrtllinly that thts 8iirv)rt will conlinue #lthough. Mi thedateof approval ofthese finan¥i¥l sthmenw they hav¥ Mi re&so io bclieve tht li will not th ¥0. Conwu¢ntly, the dire¢tor5 are confideni th the charitsble MpanY will hve yutTi¢i¢nt fund5 lo )ntinue to meet it¥ liJbiliiie5 a8 th¢y fall duc f(Trr al Ic&5t 12 mon(hs" fn)m th¢ d&¢ of approval of flncl1 sl8tmcn and thLYefore have pr¢pored thc finHnciHI 5ts1cmtnis on ¥ going ¢onc¢rn basi8. Fumd a¢eouniln¥ Unres¢riLt¢d funds arc 8enernl funds that ore available for usc at thc DITTs, di%TrAion in furthuancc of thc objt¢tiv¢s ofthe Charity. Intom¢ Fers rtccivable and char8&s seryic¢s and use of rlIst% are account for in the puiod ID whith thc 5crvice is pnividcd. Investment ino)m¢ reprÉ¥ents amounts Teccivcd intheye8r from bunk inicresi. Incomc 15 TLrognL5ed wh¢n the Charily is IC8lY entiil¢d to the in¢omc ¥nd the amounl can quantified with rnble accuratry. l)onations re¢eivablc for the 8erwdl tALrp)ses Charity arr LTediknl to Unrcstriaed Trund¥ on r¢¢¢ipl or if earlier when the Charity is le8ally enlitld w th¢ income and thr amount can bc qusntified with reAsonablc a¢¢wra¢y. 19
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ended 30 June 2022 Accountlng pollckn {eonilnued) Expendtturt F.xpcndilur¢ is accounied for on * accruals knis. The Lharity is VAT registued. The v&81 majorily of iLs supplic5 ar¢ ¢xany frthn VAT being thc (Y()Vi5ion of ¢thtiOn and th¢refore ¢herc is no entitlemeni for the Charity to recover th¢ VAT li incurs. The Chtrity generally p)sts all LJK o)sL8 as gross so the V A'l. ].% an addition CO the bSInesS. lkne ChLY also Mon1[S its UK supplies ensurc ihai th¢y f&ll within the cxcmplion und¢rihe relevant VAT Ic8islation. In Jdition. the Charity OCfdSiLinY411y reccive5 suppliesof services fmm non-IJK 8upplicrs and ihercftsTC has to aceount for th¥ r¢v¢rsL' ¢harge VAT on ILS VA'I" returns. AS th< Lharity is 8encrn]ly making only exiThpt supplie5 it c4nw¢ rLYov¢r thi$ VA'I. and so is required, through its VAT Teturn. lu mJLke d paymeTht Lo HMRC. CAov¢man¢¢ ¢osts ¢ompri5e the c05Ls of wnnin8 the LTrAriiy includin8 siratesic pl4nnin8 for its fu¢urv dcv¢lopmenL LXt¢mal audiL any le8al thi¢¢ for ihL CThwiiy Direciors. and all thc cosLs of ci>mplyin¥ with n4lilutional and sthtuiory rcqujremenw Such thc C05L8 Ot. ljoard ond Commiiiee mcctin85 and of preparing ststutory accounts and $8tisfyin8 public #¢countsbilily. Operatlng Rentals payablL undtt owulins le5 are char8LYI to th¢ Snl.'A A Straighi-line b&%1$ overth¢ Iw¢ t¢Tm.'lThe benefit ¢)funy reni fre¢ TilS is swead evenly ovcr the It tem. Pen$loth seheTn Thc Charity Op¢ra a definoj Wntribuil rslon s¢h¢mc. Contributions ¢harBed ihc SOFA as thcy bL'COrn¢ payable in a¢wrdan¢e with the rulLS of the schemc. Flxed Asjels capiluli.lalion undreplatYTheMt Cost rclolin8 10 th¢ fit oui of Ihe buildin8. which includ¢s improVeL% and cxpthdilure on furnitur4 rittin85 and wuipmcni arc capiialiscd and cwried in the balarK¢ she¢t at hists)ri¢4J cox. All other cxpcndilurc is fully cXrn5¢d in th¢ wi¢)d il is in¢urre4L Deprec'iulifjn i)epTc¢iation is pn)viikd on dl tsngible fixed &5scts from the Um¢ they are avwlable for al TBtC5 calculat¢xl to write off ihe com in cqual irh5talmcniS ower thc (Ylimgtcd livu of thc a$5cts. Thc rales of dLVLYia¢ion are lolluws: 1.¢85¢hold irnprovcmcnts Audio and visual cquiprncnt Cumputer and tclccommunications wuiwncDt Fumiiurv, fixtures and tqULprnLnl ovcr the temi of th¢ le¢ 20Y• annum 2(Ph per annum Iiph 10 20% pcr annum TAxAtlon The University of Chica80 R(rt)th School of Bu5irK5S 15 L%m5ithrcd the t¢st5 sd out in Paragraph I Srhdule 6 FinCe Act 2010 and thfftfvre i¢ meets the definition of a ch8ritabl¢ cOmpY for IJK eorrrf)rdtion tax purposts. Accordingly. th¢ CTharity is sxJtthli4lly cxempt fr[ laxaLivn in resp¢rtofinrom¢ OT gain5 received within cate8orios LU)VLYtd by Chapr 3 Part I l &rForation Tax Ad 2010 or 256 of thv Taxation of Char8e4ble &ins Aa 1992, the extfflt that such in>MC or 8ains are applits4 exGlusiv¢ly to ¢horiiablc purpL15CS. 20
The University of Chicago Booth School of Business Notes to the financiydl statements (continued) Year ended 30 June 2022 A¢countlrti pollcltJ (tontinlled) Foreiin curreneles Transactions in forci8n currcncies are recLKded the wevailin8 ai th¢ dat ofthe IrHn5&cbOtt. Monetary aSts and liabilitics denominated in foffign (aJrM¢ies ttrt tran51atcd inlo Styling ai the year-end ¢xchan8e dtes. All differences are to the SOTr A. Finauelal inatrnm¢Ats Finan¢io1 Ind liabiliti¢5 or¢ wni8ed whth the Llwity beuxnes g party lo th¢ coniraetual provisions of the instrurnLTL All financial assets and limbilities are initiajty mcwr•J at lrnnsaciion price (including iwisaaion 5131. Trldt debtors aAd credltors 'rrad¢ and other dcbtors Rrc reco8nisd At the Selllen amount duc gft¢r any trJ¢ discount offer&J. PT¢payments arc valued ai thc umi)unL prepaid of&ny di5counis due. cr¢dIr9 rec(Jgniqr41 where thc Charity has a p¥¥1 obligion rc5ultin8 from u p[ ¢veni thal will PTvbably resuli in thL trunsfer orrund¥ to tt ihird party and thc amount due ty) scul¢ thc obli¥alion can be me4sur¢d or esiimated rcliably. Creditors r¢¢ognised their 5Cttlement amount after allowin8 foraThy trwJ¢ Jiscounts due. Crltlt81 gCCOYntlng Ju•Jgemets kty T¢¢¥ of ¢s¢lAailofy uffjeeIftty In thL application nl'thc Lharity's aunting lIcI which are de5crtbul in Dotr I, the DirLxlor¥ are require lo muk¢judgement& Limates and assumwiotK$ 8trDut thc wing amount5 of&sseL¥ and lixbililicy ihal are not reudrly appartmi fromother s(Jurce5. Th¢cslim¢S andASSocICd &&wmptions are on hiM1)ri1 expericncc d other factsN¥ th consid¢r¢d relev¥nL results may differ from thc5Q LStImes. 'I'he cstimale5 and uthrlying &wmpiions arc miewcd on an on80ing b1. R¢wisions acc(Truntin8 e51imales Arc reco8nixxl in the wi1 in whi¢h ihe e5timaie i5 revised if th¢ rtyi$inn only that rI. OT in th¢ period ()f the Tevi.sion and fuiurc if thc r¢wisM)n alT<ts FKAh and futurt peN'ods. PrrJwi%loi outJtndln¥ debto Accounts rcccivable ar¢ ¢1j & ¢Slimakd reallble vgJu¢. Management r¢gularly a8sesseJ the gdcqu8¢y of thc fdlloWdn forth)ubLful iErounis. and halancc5arewrilten rjff wh¢n deemed uncullcctiblc. l.orthe fin¥n¢ial YLW 2022 a provision (Trf£207.218 has been offscl wirLs1 in(vm¢ on the basi5 Ihat thcse 8mounL8 &re rx)icniial f¢es extKLtd lo be rLUrned to the ltdffl. lThcorne from ¢hirftbl¢ divitle* Income from charitshle 8¢1iVitics comprixz tuition fe¢s r¢u?vvJ from sludffits on thc dc8ree I,xecutivc MIIA ProgrwY and n0tt41e8TV Ewutiv¢ Edu10 wo8rnrnJ. 21
The University of Chicago Booth School of BusiDess Notes to the financial statements (contlDued) Year ended 3ll June 2022 Exp¢ndhyre 2022 2021 Chxrltable a¢tlvltks University FAluiaiion Opcrmting le4sc rentAls- onlond and Iwildings IntrreA on womi55ury lo nole Forei8n excha< I05(s) tkpreciati 9,295270 3,473,09(1 330,110 629.995 1.098.712 5.IA)4,662 2.977.569 282,817 {449,283) I,)6,011 14,827,177 9,811.796 CoverDAn¢e 11• Audit services Accountsncy 27.750 162 22,(K)O 16,200 43,950 38,2(K) Staff ewts Wa8Ls and salsTie5 S(Kial security w¥L5 Pen$iort contributions 1.036.242 124.443 80,729 1.164.792 120.273 79.836 1241,414 ,364,901 Tot•1 eApendlture 16,112.541 11,214.897 Thc audii firn? only rec¢ivkryJ feu in respeaof AuditYa¥iL*K Totsj fe& exelusiveof VATWn(Trun ty £27,7JO 12021: £22.XI). "I'h¢ 8virag¢ number of employee5 in thc PLYi(xl w&s 23 {2021.. 21). No T)ir¢dors or persons Conn with th¥m r¢¢¢ived ony remuneraiivn, othcr E¢ncfi15 or rcimburx'mcnt of cxFKmscs fnjm the Charity. RemU.ln is rcccived from the Univ¢r5ity of C.hicaBo in ihe IIS. Thc Dircctors consider key rnana8em¢nt p¢ryonn¢l ts) be employed by th¢ Univwsity ofchi¢880 in thr U& with 8lobAI r&stx>nsibililie4 a ilOn ofwhith ineludes th¢ UK Charity. Thcrcforc. no key managem1 wmnel remunerntii)n 1$ di5closcd. The numberof hi8hcr pAid cmploye&% w&8: 2022 No. 2021 No. Taxabk emolUMLts bBnd: £60,IXX)- £70,IXM) £70,(X>I - £80,IMX) £80,1 - £,{x> £90.oai - £ioo,(XK) £iIMJ.OOi - £1 iO.IMX> £I10.UOl - £120.(KX> £130,001-£140. £170,IM)1-£190.1 £2¢X).(MJI - £3W,LKKI 22
The University of Chicago Booth School of Business Notes to the financial statements (eontinued) Year ended 30 June 2022 Tx8150• The Company is a Charity and a8 suth is not liablc UK inLY)m¢ or Qx)rtrnIlOn tax on Chitable &ctIVitL. T•nglble Ibxed Imtts Compvter Furnitwre. A•dio ¢¢lttom- IIAtures Leasehold lrnprovem¢nts equlpth)th¢ equipment equipment Total CNt or vluAIS0 At l July 2021 Additiuns 9,08&183 1.189.349 881,426 23,479 753,379 11.914.3J7 .593 25.072 AI 30 Jun¢ 2022 9.088.183 1,189J49 904.905 756.972 11.939.4U9 Deprecitlo AI 30 June 2021 Lharge the yL¥r 770,571 6(J.338 302.710 237,870 224.582 178.807 ,fI6¥ 1,J93,931 75.697 1.098,712 At 30 Jun¢ 2022 1.376.W9 540,580 403,389 171,765 2,492.643 Nrf book vlu AI 30 June 2022 7,711274 648.769 501.516 585207 9.446,766 At 30 Jun¢ 2021 .317.612 886,639 656,844 659,311 10,520,4U6 Deblo 21122 2021 Trade d¢Frtors Amounts rec¢ivabl¢ fn)m 8r(MtP LY)mpani her debiors Pr¢TMymenL8 Bnd 8wnul in¢¥)me 761.641 4,565,629 4,999 1253.975 699,IK)6 8.609.188 4.999 1.100.152 6,586243 10,413,345 Credltvn: thou#ts fAllln¥ dllt o•¢ yur 2022 2021 l.ees receiva tts advanL* (see tC g) Trade credi Othff crcditors and accruojs Amounts rAyable to 8roup ¢ompani&s 1.191.549 .021,407 ,693 4,699 6.177.235 6.608.4UII 56242 J25 52.169.414 63,620.5 59,803.928 23
The University of Chicago Booth School of Business Notes to the fjnancial stydtements (continued) Year ended 30 June 2022 Credlton: Imoutsts hlllng due withi• y¢•r (¢Mtinue4J) Th¢ entir¢ inlerc4)mpgny balan¢¢ duc to the lJnivcr5ily of Chica80 US thich amount5 to £55,865.(K>212021.. £Sl.791.892). Included within this 10¢¢ is A promisy)ry loan TK>te amouniing to £5.501.836 12021.. £4,830.329}on which inlerest isaccruinB at 6%. The Hrj irtirresi inrluded in the bAlance is £330.11012021= £303,157). 'I'he loan notc is rcpayable on demand 4nd Th¢ Uniwctsiiy of Chicago IJS ha8 indi¢aied il 15 not intending to dCrnd repayment in th¢ fores¢e8ble future. -llJe r¢m8inin¥ balance of £50,033,056 12021- £46,658.4061 lt¢s primarily to the orthiiuns of the FurorK Campu5 and payables 8risin8 from the on80ing teachin8 and servi¢¢s a¥r¢cment and whilsi the amount legally remains payable on demand il is u)nsidered that rte4)very Is not ryJ¢d¢d by"Ih¢ ljnivmity of LThiwio US. Ft¢s r¢e¢lved ID Mdvanee stUdls are re(w¢skd to mak¢4 si7Ablederknsiiwwllrd5th¢irwiiion fe¢5 in the Springprior their firsi quart¢r SCS8ion. £3,81M) w dudent. In addiiii>n. wmc Sludth¢s may have PAid the remainder vf thL first quJrtCT tuilion. £16.220 by the end ()f JunL. Floth omounts are tsken inw incom¢ with thc commencem1 ofthe firni quwlLTIy ssion in Sep¢embcr. Conscquenily1 e4ery YLW. 8t th¢ ¢nd of th¢ fisL¥l yw. there will be an odvan¢¢ fcc payment liability ih¢ tKx)ks. In thlition. mgny students Off subsidithj by their employers. Occasionally, we receive mnrc than four quarf¢rs of lull1( rc paid at one lime. 'Ihis results in a few advance fee p8ymettL$ thoi may n(A bL' llpplicd within year. A130, on o¥S1On, & stud1 will thke 8 le4v¢ fTiJm tho pro8TJm. ¥ftcr havin8 paid. with th¢ inni of coniinuin8 al 8 I#iLY d#tL'. This magy also Icad (L) lvancc fce YMents applicable lo more thaTh one y¢w in advarKc. 2022 2021 Within l ye8T ,191.549 1.021,407 The tolanee reprcsLts thc £rned liabilily urth th¢ ntrts. Th¢ movcmcnts during the Ye were.. 1022 2021 Bajance ai l July 1.'tts rcccivcd in the year Amounts Tccogniscd in thc current year 1,021.407 414,6911 ,160.765 916,966 19901>23) {310,257} Balance 1130 June .191.549 1.021.407 A##tysli of th*rltablt delldt 3• Jpne ZD21 30 June 2022 Exptlldlture (icncraj deficit (38,196,987) 7.209,211 I&1 10,648 147.098,4241 24
The University of Chicago Booth School of Business Notes to the financial stalements (continued) Year ended 30 June 2022 ii. Oper•tknE kas¢ eotymltnbets AI 30 June thr Company had annual eommilmcnts under non4c4ncc114ble Lwmtirtg lease5 as fol]ows'. 21122 2021 IADd aDd bulldlngs Lthd and bulldinp Total Other LeS which ¢xpirc: Within one year Within Iwo to flveyears MorL' five years 3,IX)7226 Is.628,) 26.373.778 I4,7 3,922,016 3.9¥>7.226 15,628.906 Is.628.) 26,373.778 3028 I.5 14,7 3.922.016 14.790 15,643,696 30.281.005 45,909,910 14,790 45.924.71)0 49.817,137 29,380 49,846,717 Durin8 2019, a Ic8se was cntcred inkn a ncwc4mtwJ lIding..[me iniiial leas¢ kn 1$ IS ycar%, ¢ommLn¢in8 l5t April 2019. 12. "rhc h&$ enieral In no 8UIMltte rIn8¢m¥. Reeonellltlott of nel ¢ip¢Trdh¥r¢ to Net ¢aslJ outllow fmTh tyerntlo 2022 2021 N¢t ¢xFndilure Non-operdtin8 ¢o$h flows eliminated.. r)crrtcialion ch8rB&S a(IdLYI Eock Decreaxllincrcase) in debi(K¥ Incru5c in lrnde and othLr mylitors Incrcllsc irt advance fec contracts (8.903,328} {5,784,427} 1,098,712 I,n96,031 3.827.101 11,031,8391 3.645932 1830.372 170,142 606,709 Net t*ih •utnow frnm optr•tlo (161.442) {2,303.1541 25
The University of Chicago Booth School of Business Notes to the financiydl statements (continued) Year ended 30 June 2022 l4. Related party ¢ranuctlo University of Chi¢480 in the US is the parntof the Chariiy'ChicHgo &x)th' on¢ as wch. is restmjnsible forthe aprK>inlM¢I of all rnana8emcnVDireciors of Chica80 Booth'$ t4)nthm Camws, well as provi4Jing the n¢sSary funding and a variety of sUPPJrt servi¢u. 2D22 2021 ing bance l July bolanc¢ duc from the lJnivLTsity of chi80 l.ourthion in Hong Kong l.imitcd R¥paymeni ofprivr campus fundin8 from HonB Kon8 Cosis iniurrtyj on behl.r the Hon8 Kon8 ¢wnpys rtdwged 8,fA)9,IB8 8.615,649 13.992.977) (SOJ82) (6.4611 Llosin8 bal¥n¢¢ 30 June bAlanc¢ due from the Univ¢rsity of Chi¢o80 Foundaiion 4.565.629 8.(rf)9.188 In Ilon8 Kong l.imit¢d Opming hlthnce l July owed to the lJniv¢rsily of Chicago Cos1% in¢urr¢d on behdfof LTharily by the US and r¢¢harg 'reachin& 8nd servitts tMent AccTUtd inLeresl costllinu)m¢) on build ¢)ut lown Tuilion inwm¢ rwciva in thL US Foreign exchun8e re5th1ement of build oui lowb in USD al 30 June CMpuS (undin8 In r¢lalion (kn¢ B8rtholornew ¢ampJs 51,791,892 51.24U.432 973298 1184.6401 3.329.073 2.3¥7,163 26,952 1929.7191 (1,052,554) 671,506 1598 J041 Closing balanc¢ 30 Jun¢ ow¢d to the Ilnivwjity of CThic480 55.865,IX)2 51,791.892 Amount5 du¢ ts) ¥ry)up undertaking$ alyA) includey A lIne¢Of £377.522 {2021: £377.5211 duc to thc Uni*ersÉly of Chica80 B(M)th School of Ily¥incss in SingaTX)ff. Is. uitlmate ¢ontrollini undtrtakln¥ "lThc J)ircctor5 C4)nsi(kr Th¢ University of Chica80, i eornpany re8iSterryJ in Thc l1n1 Siat&8 of Amcrica be th¢ Uliimate LM)ntrollin¥ undertaking. Copies olthc UnivLY5ity'% finan¢io1 swemeni% Y4vwl&blc uw)n rcque5t in wriiin8 to 5801 South Lllis Aveny¢. Chic980. Illinvis 6W7, USA. 'lTh¢ Charity's ocwunts arc ConlIda1 into the pam?1 finllniTh&l 5tat£ments &8 prl of the Sthool or BusinLsy. Subsequent events There havL bccn rLO adjuslin8vr nondIuStIn¥ CVCTts atlu the retrfiD8 da 26