Company Regfstration No. 05356589 Charity Registration No. 1108516 The University of Chicago Booth School of Business Company limited by guarantee Annual report and financial statements for the year ended 30 June 2024
The University of Chicago Booth School of Business Annual report and financial statements for the year ended 30 June 2024 Contents Page Officers and profe55ional advisers Strategic and Dlre¢tors' Report Ststement of Dlre¢tors' responsibilities in respect of the annual report aDd the flnancial statements io Independent Auditor's report Statement of tloaneial activities 15 BalAnce sh¢et 16 Statement of cash flows 17 Note5 to the financial statements 18
The Unlverslty of Chicago Booth School of Business Officers and professional advisers Dlrectors K Baicker M V Rajan E Shanin Th¢ Directots are the trSte¢s of thc Charity foT Charitie5 Act putPOSC5. Registered office The University of Chicago Bth School of Busine55 One Bartholomew Close Barts Square London ECIA 7BL Website www.chicagobooth.edu Bankers HSBC plc I Canada Square Londo E145DX Unlted Kingdom SolicitOT I Company secretary Pinscnl Masons I Park Row Leeds West Yorkshire LSI SAB Auditor Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP Charity RegiStrad0.. Company Re8iStr*tion: 05356589 1108516
The University of Chicago Booth School of Business Strategie and Directors, Report Reference and admlnlstrltivt information The University of Chicago Booth School Of Business ('the Charityy is a subsidiary ofthe University of Chicago ('The University"). The College of Commerce and Politi¢s, prede¢essor to The University of Chicago Bootli School of Business. was originally founded by The Universiry in 1898 to provide Prnciical business instruction. The Charity is registered with the Charity Commi&%ion under Charity numb¢r 1108516. The r¢gisiered office of the Charity 15 listed on page I togeiher wi(h the pan?culars of (he Charity's professional advisers. The Charity is a Charitable company limiied by guarantee and is more cominonly known as"Chic&go Booih" Dlrectors And Charlty trustees The Charity Directors are also the Charity tnJst¢es. They have served in office thToughout the year. unless otheiwise state( and were as follows.. K Baicker K Taylor (Resigned August 2. 2024) E Shanin {Appoint¢d on Augusr 2. 2024) M V Rajan Assotiate Dean for Bootb Global Degree Programs and Executive Dirtetor. The Robert Rothman. '77 London Campus EliLabeth O'Neill Strueture, GoverDaMce and Management Governing Docunienl The Charity is governed by its Memorandum and Article5 of Association dated 3 February 25, arnend 28 February 2026. Recruibnenl 47nd Training ofDireciors The Memorandum and Articles ofAssocialion of the ChaTtty provide for the apintMen1 of Directors. who also aet as Irustces. The Ulliversily. which is the sole "member" of the Charity. is emp)wered io appoini ihe Directors. For Ihc fiscal year ended June 30, 20?4, the Charity has three DIrecr$, Madhav Rajan, Kaiherine Baicker. and Kimberly P Taylor. Professor Rajan is the George Prdit Shultz Professor oCAccouniing, and Dcan of the University of Chicago Booth School of Business ("Chicago Booth"}. In Professor Rajan's position as Dean of Chicago Booth, a pari of his responsibilities is the oversight of the EMBA campuses in Chicago, London: and Hong Kong. The second Director, PTofessor Katherine Baickcr. the Emmell Dedmon Professor at the University's Harris School or Public Policy 15 Provost at The tiniversity. As Provost of The Univcrsity, Professor Baicker oversees all aspects of The University's academic and research community. Professor Baicker's position as head of all of academic activities at The University provides the requisite qualifications to be a Director of the LDndon Charity. It is intended that one of the Directors of the Charity will be the UniveTsity's Provosl. The third Director is Kimberly P Taylor, Vice President and Generdl Counsel of The Univusity. Ms. Taylor's position as head of all legal affairs foT The University provides the requisi* qualifications to be a Director of the London Chariry. It is intended that one of the Directors of the Charity will be a senior member of the UniveTSity'S legal staff. On August 2, ?024, Ms.Taylor resigned as DiTector. as well a5 the University's Vice Pr¢sid¢nt and General Counsel. M5. Elizabeth Shanin was appointed Lnterim Vice President and General Counsel as well as appoin(ed one of the Charity's Directors. On appoinlment each trustee receives 8 copy of the England and Wales LTharity Lommi55ion's publi¢ation "I he essenttal tNslee.' whai you need to know. whal you need to do" and agrees io follow it. Trnining needs are assessed and Lnet as necessary.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Strueture* governance aDd management (continued) OpgaAisalionalMauageNiexl The primary active decision maker for the Charity's activities is Professor Rajan. one of the Directors. The primary activity of thc London Charity is as one of three WOTldwide Chicago Booth part-lime Executive Masters of Business Administration (EMBA) degree progrdTns. spccifically designed for cxpcri¢nre(L accomplishcd, and woiking business executive5. ITJ hib capacity as Dean of Chicago Booth. he has ovcrall responsibility for both full-time and part-lime MBA piograms and oversight of thc cntire business school faculty as well. Tbe Dean of Chicago B(M)th reports to the Prov05t, whose position is describ¢d above. The Provost TCPOrts to the President of Th¢ University. The Presidcnt is re5POT]sible to a host of Universi(y DirecloTS. The Associaie Dean of ihe Global Exccutive MBA Progrdm 15 rc5ponsible for carying out thc day-to-day affails of tlic Cbarily. The Associate Dean and her delegates can negoti&tc and execute on behalf of the Charity contracts for the purchase of goods or scrvices in the ordinary COUTSC of operdtions of the Charity subject to limitations imposed by tlie Direclors on the value of these contracts. The Associaie Dean can hir¢ employees. subject to the prior approval from the Dircclor5 for.8alaries, compcnsalion and benef1ts, Thc Associatc Dean can makc final dccisions on applications io be admilled to thc EMBA progrnm. The Directors consid¢r key managemenl per50nn¢l to be employed by the Universily of Chicago in the US, with global responsibilities, a portion of which includes ihe UK Ciiarity. Therefore. no key managemcnl personnel remuneration is discloscd wiihin the repofl. ObjecL aims, objectives and actlvllies Charitsble objecÉ.s Tlie Charity's objects, as set oul in 115 Memorandum and Articlc5 of Associa(ion. are ihe advancemenl of education, in parlicular (wiihout prejudice lo (hc generalily) through ihc provision ofeducation provided in the United Kingdom. ims and inlended impact The aim of the Charity is to advance scholarship and research ID the field of business and economics. The Chai'ity is an integral pan of th¢ University whose innovations in busine55 educaiion and path breaking research have produced ideas and leaders Ihai shape the world of business, bringing economic benefi to society. Ten Nobel laureates have been either currenl or former faculty inembers of Chicago Booth. ObjeLlivesfor iheyeor The main objectives of the Charity for the year ended 30 June 2024 were: (l } Continue lo recruit a highly qualified pool of applicants for our EMBA program. The re¢rui(ing environment has bccorne even morc challcnging and il will takc several ye&TS lo rebuild to a goal of ln average class sizc of 65-70. Thc reLTion suffers from cvncerns which impacl rccruilinL'.' wars in Ukraine and Israel, currency fluctualioT]S, inflalion, and ovcrall eTnploymeni security. Wc conliT]ue to deploy crcativc rEcruilinLy taclic5 initiatcd iyj recent years, and we continuc to make cosinetic changc5 to our offerings to incrca5c their markelplace appcal. {2) Continue to provide an increascd Icvcl of scholarship funding rcquld io atlract highly qualified sludents. The EMBA markrtplxr.e. is he.r.nming Inca1n8lY ¢ompeiilive on Ihe Kholarship front. with candidate5 oplinR ro eschew Booth for business progranis which &ppeal io them less. but which offer significantly niore funding. Historically. wc havc been able to countcr such wtential losscs with ROI arguments, but with thc scholarship amounts incrcasing dramatically, that is bccorning less viable. 13) Incrcase the quantity of, and registrations for. non-degr¢e programs including those that arc on a customi7.tA basis lo compaJ)ies wishing to pmvide trdining for groups of their employees. Incrcase ourengagement with Booth alumni and corporate partners to offer non-dcgTCC programs that are of mual interest to them and to our faculry. 14) Build on the development and delivery of online Executive Education programs toward the permanent expansion of the importance of ihese programs within our portfolio of program offerings.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) ObjeeL *ims. objectives and Aetlvities (eontinyed) ObjeL'tiveslor iheyeqr (conlinued) 15) Increase the amount of donated fi]nds and participation rates of alumni in fijnd-raising activities of the school from the European alu7nni base. (6) Improve ihe visibility of the Charity in Europe. the Middle East and Africa through marketing and public relation5. {7) Continue to monitor ihe students whose fee5 are by their employets and the extent lo which those fees are mel and lo review our guidance to sNdents on how to approach employ¢t3 to requesi fee support. (8) Consider ways in whi¢h we can bring the benefit of the Charity's educalional programs, faculty research and facilities to the widest possible range of people. within our available budget. The new Global Faculty in Residcllce Program that expands the faculty presence and accessibility in EMEA. We plan to Continue to build on this prograin. (91 Increase engagemenl with corporates and stskeholders in the region. with the inient of building the Booth brnnd in EMEA io support the dissemination of Booth knowledge and talenL I l O) Expand ihe aclivitics within the new, morc spaciou5 campus space by offering confercnce ccntrc services to the UK community and business school partners. This will enhance our visibility within the UK business community and provide ancillary income to the charity. strat1 to achieve iheperiod's objecÉives { l ) The Charity 5e¢ks io enrol students in our Ex¢cuiive MBA Program. To that end, il carries out marketing and promolional aclivities Ihrougliout EuTope. the Middle EasL and Africa. It a150 targets students from Latin ATncrica. Thesc activilies are supported by advcrtising campaigns onlin¢ (Ihrough L7T)kedln, for example) and in leading publications, search engine optimization. and direct marketing and public relations. The EMBA Program also benefits from the plcthora of ac(ivities held on the London campu5 which serve to boost awareness of Chicago Booth's presen¢e in London. As tuition fees do not llY coverthe operating costs of The University. The UniveTsity employs Siaff in Chicago and the UK to develop relalionships wilh alumni, including those with the financial means to donate funds to The University. {2) Our admissions criteria are sei to support the achievement of the objectives. We seek applicants who display impressive professional and personal tra¢k records and demonstrate academic prowess which aifirtns their ability to navigate Booth's academic rigor. Applicants are required to submit deiailed written appli¢ations. providing their acadeinic credentials, their career experience and objectives and, in some cases, assessiTrenttest results. Applications Inust be accompanied by letters of r¢¢ommendation from the applicant's manager and professional colleagues, and, when possible at Ihe lime of application, a letier of support from tlie applicant's einployer. Qualified applicanis are also interviewed. (31 Given the ongoing stat¢ of the EMEA market, it is incumbent upon us lo examine our EMBA offering and adjust lo render it inore flexible, resTlient, and markei appropriale. This entails c105e examination of program SirLlCture. curricular offerings, and career and leadership suppon. (4) We work closely wilh the Advancemeni team to be sure EMBA scholarships are on Ihcir fundraising agenda. This has yielded some recent success! Internally. we work with tight yield and funding iargeis, so as our yield improves so does our ability to offer scholarship5. (5) We Secure cuslomizcd, company specific non-degree pmgrams through a direcl sales sirategy. Wc offer open enrolmeni prob?rams on topics of inleresi io ihe business communi(y through adveriising and a variety of direci markcting tools.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Objec4 aim& ¢Jbjedivts and etivities (eontlnued) PriAeipdl 4eÉivities ofthe Jjear The Charity offers a part-time Executive MBA degree program for students. In addition. the Charity offer5 non-degree business edu¢a(ion CQUTses covering finance, marketing, operations. strategy. and leadership. As part of its on-going support for graduates of the Charity's EMBA wogram. grdduales are offered access lo career and leadership developinenl resources, coaching and opponunities to participate in networking cvenls. (e.g., faculty, alumni andlor external speakers held al the Chariiy's facility)- In the United Kingdom. the Charity held events during the year which were open to people not currenily sludents in our EMBA program, including the general public. These events included special lectUTes by faculty- Tncluding faculiy- in-residencc program - as well as conferences and roundiable events on Iopic5 of interest to the general public. Public Icctures cov¢r¢d diverse topics including the global economy, reimagining India's economic future. propelling growth and inipacl in Africa, and an economic outlook for the EMEA region. These evenls were conducted pryTnarily in-persoTJ wilh the opportuniry for networking aftcrwards. All of these ¢vents were free for our students and tncmbcrs of die generdl public. Other events were open io members of parnier organizalions including businesses and charities not directly ajfilialed with the Universiry. The events provided acce55 to our facilities. and in many cases the expertise of our faculry and staff. Events are promoted through partneroTganizations, on our website. andlorthrough direct emailing public relations social media campaigns. We offered our campus facilitie5 for use, at no c05t to wri, an eaucatsonal charity. in support of a range of teacher training days focused on primary and secondary schools across the LK Going fonvard we plan lo conlinue offering public acce55 lo key events throughout lh¢ year, leveraging faculty research and thought leadership and expanding the range of topics covered. Thc University supports an active research agenda through 14 research centres and has a tenure policy for faculty that relies heavily on ground-breakin¥ r¢scaTch. Rescarch is conducted in di1p1]neS such as economics. financc, and the behavioural science5. Our faculty are recognized globally for their contributsons to bodie5 of knowled¥e. Since ils incepiion, the University ha5 becn a distinctive ini¢ll¢ctual and educalional community. and ihe values tliat underpinned its establishTnent have been an imponani guide since that time. In addition, the Charity publTshcd exiensive inforniation on ils web51te and ihrough othcr publi(iions. This infonnaiion includes ihe rescarch undertaken by irs faculty. commeni and analysis of currenl iopics, and ni¢dia such as podcasts and vidcos sharing thoug?ht leadership on topics affeciing companies and organi721ions around the globe. Tliis infomiation is free and available lo ihe public. Review of aehlevements performance for the year Operafionolperformonce ofihe Charity During the year ihe EMBA program graduated it5 18Lb London-based class of swdents. During FY24, Aliiiiini of Chicago Booih. residing in the EMEA region. donated directly to the University of Chicago parent. in philanthropic support for fA¢ulry research. student seholaTships. and alumni and Lniv¢rsity progrdmming Ihroughoiit ourinternatioiial community. helping enrich tlie business community to which Chi¢ago Booih alwnni belong. As direct donations ro Chicago, tliese sums are not the responsibility of these (rusiees. 45 new Executive MBA EMEA Sdents enrolled in Sepieinber 2024. Tliis cla&s size represents a decrease froin the Sepleiiiber 2023 class of 46 students, r¢maining well below our targel of 60-75 enrollees. This n•v ¢labs size was restricted by the impaci of the curreni political and economic climale thToughout EMEA. In FY24, we delivered a multi-session non-degree Executiye Education program.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Review of achievements and performance for the year (eontlnued) Finoncial review resultsfor ihÈyé4r Tli¢ Charity finan¢ixl results mei cxpectations. however, conlinued to operate at a deficit. Both revenues and nel income were as expect¢d. albeit less than longer Icrm targets, prtmarily due lo lower EMBA student attendance. This is partially associated with the war in Ukraine. 15rael. and Olher gco-political cvcnts. The overdll loss of £8.965.692 in 2023-2024 wa5 more than the loss of £7.513.392 in 2022-2023 by £1.452.300. as reveiiues deLreased. and expenses decreas. Ovcrall rcvcnuc dccrca5ed by £1.457.781 from £8.577.936 to £7.] ?0,155, a decrease of 17 %. (I) EMBA program tuition revenue dccrcascd by £1,161,188. Tolal studeiits dccrcascd from an avcragc of123 studenls in FY23 to an averdge of l 00 shjdents in FY24, with lcss students in the incoming cohort. This avcragc docs refle¢1 a small component TepTesenting the rehjrn of some FY21 and FY22 students who deferred during the hcight of the pandemic and returned as in-perwn cla5s¢s r¢sumed for th¢ FY23 and FY24 fiscal years. 12) Conference Center Tevenue ine8$ed by a totsl of £321,473 a5 a Tesult of rnaTk¢ting effort5 beginning in FY23. (3) Executive Education revenue decwsed by a totsl £587,449 duc lo a f¢w recurring contrac15 that ended in FY23 and were not renewed. Overdll expenses decreased by £5.481 froin £16,091,328 to £16,085,847, a decre8se of 30/0. Expcnscs were generally down slightly iii FY24 compared with FY23. hoivever. currency gains in FY23. nol r¢p¢ated in FY24. miiigaied the impact of Ihe lower eXnseS. {1) A currency gain of £8.174 in FY24 compared with a currency gain of £514,979 in FY23 increased expense5 by £506.805. (2) Building renl and services fees incTeased by £57,754 due to the fiT5t full year of the lIa1 flai for ihe Faculty- in-Residence. (31 (41 Executive Educ&tion faculty costs decreased by £261.151 due to holding fewer programs. Teaching services and University overhead allocations decreased by £127.132 due io a combination of a geiierally lowered University allocation. plus the lower London swdent tuition which is one of the factors deten11ining the allocation OUnt. Two significant projects in FY23 were expensed. One foi th¢ ¢onsmi¢tion of a donor wall and insiallatlOD of classroom audio visual equipment No such projects were completed in FY24. Tliis resulted in £87.382 in expense savings. In FY24. th¢ Direrlor of Acadcmic Support Allocation was eliminated due to an organizational change. Tliis i'esulted in £69,838 savings. While the Charity Continues to opcratc at a dcficiL thc UniveIty remaTns fully committed to its primary mission of being a worldwide leader of higher education and acadcmic rcscarch and. morc spccifically. committed to continuing to provide the funding TequiTed io SUp)rt the London Charity. Th¢ London EMBA piogr2rn is an integral part of die business school's n¢twoTk of thrcc campuses, worldwide, for experienced business professionals seeking an advanced business degree. The University and Chicago Booth believe that the level of financial Ioss incurred by the London Charity is wcll worthwhile consTdering its valuable contribution toward th¢ mission of ihe global F_MFIA program, as well a5 The I IniYe.r%ity's hrnader elnhal ediirafinnal missinn Thp. l inivp.rsity hHs prrFvidvd a 1p.llrr nf 8iipr*nrt fnr thp. Charity. (51 161 The EMBA program is structured so Ihat it ronsi5ts of seven con.8ecutive quarters of ihree months each. Fir51 year students coniplete the firsi three quarters during a single fiscal year cycle, Sepiember io June. during which threelsevenths of the tuition fees are collected. During the Second fiscal year. the stydent completes ihe final four quarters. paying the remaining fourlseveT)ths of the tuition fee5.
The University of Chicago Booth School of Business Strategie and Directors, Report (continued) Revlew of achievements and perfomante for the year (eontlllued) Finaiicial review and resultsfor rheyeor (continiied) The Charity's financial position r¢fle¢ts a continued incre&se in accumulated deficit by £8,965,692 (2023.. £7,513,392). This was funded by an increase in Amounts Payable to Group Companies of £8.333.823 {2023.. £4.159,061) priinarily due to servi¢¢s pmvided by the Chicago parent and & decTease in Amounts Receivable from Group Companies of £1.038.876 (2023.. £2.468.141) primarily as repayment from previous c&sh transfers to a group company in Hong Kong. As a result, the cash position of the Charity remains very stsble. Re5ervespoliey The Chariry recognises the need to hold reserve5 to meet both its day-to-day and long-lern) obligations. Balanced against this is the need to deliver value lo its students thTough the provision of education. Since incepiion in 2005 the Charity has operdted a( a loss as we are focused primarily on the educational mission as part of the mission of the University as a whole and only secondarily on the specific financial model of the IA)ndon Charity as a sthndalone entity. Therefore, while the Charity's long tern) fJnan¢ial objective is to hold reserves suificieni lo meei the educaiion ¢on)mitinenis of our students, annual operating losses have resulted in the reported £63.579,401 (2023: £54,613,709) accuinulated deficil. The Chorily is financially supwrted in it5 day-to-day obligations ihrough its parent, The University. The Directors recognize ihal the Charity operales ai a significant deficit. li is importanl lo nole thai London is one part of the intemational EMBA program. Siiid¢n¢s from Hong Kong* and ChicagTO also study iii London duringT special SLssion weeks. while Londoll Siudenls travel io Cliicago and Hong Kono as wpell. During these sessions they interact with their inleiTraiion&l counierpans, which is a key component of enhancing the qualiry of their global EMBA education. The campuses are inteJTelated and interdependent. The finances of the programs are evaluated in combinaiion. The London campus is a strategic PaTt of the global mission of boih Chicago Booth and The Univer5ily of Chicago as a whole. Further. the UniveIty has a long-ierni iiiew of the importance of global scholarly interactton that benefit the University and Chicago Booth in ways that are not necessarily quantifiable in the short tenn, nordiir¢tly financially identified with its specific a¢tivilies in London. For example. overall fundraising may be enl)aiiced indirectly by the global reputation ofihe Llniversity. Faculty exposure to a global communily may enhance research opportunities and, in liirn research grdni opwJrtLiniiies. The University has boih the mission and the resources to support the LondoJ) Charity and is coinmitted to doing 50 on an indefinite basis. Fulureplans Key objeclives for the future are: l. Coi)tinue lo recruit a highly qualified pool of applicants for our EMBA program. The recruiting environmeni h&g become cvcn more challenging, and li will lake years io rebuild to an avera&Te Class size of 65-70. The reL7ion suffer5 from major concems which impaci recruiting= wars in Ukrain¢ and Israel which impact ihose countries and their nelg.hbourln& airspace, cUencY flucluatlOT15. inflation, and overdll employment security. We continue lo dcploy cr¢alive recruiting iactics initiaied in Tecent Ye, and we continue to make ee5 changes to our offeringys io increase their marketplace appeal. 2. Continue to provide an increased level of scholarship funding required to attrdct highly qualified sttjdents. The F.MRA marketplace 18 hecoming increasingly competitive on the scholarship fronL with candidaies opting to eschew Booth for business programs which appeal lo them less. but which offer si8nificanily niore funding. Historically. we have been able to counter such FM)tential losses wtth ROI argum¢nts, but with the scholarship amounts increasing draMatilly, that is becoming viable. 3. Convene a fa¢ulty-led comprehensive curr5culum review committee to assess multiple aspects of the cuent course program and make recommendations that will assure course work remains timely and relevant. This review process is conducted approximaiely every 5 years in keeping with Chicago Booth's leadership role in business edu¢ation.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Revlew of achievements and perform•n¢e for the yelr (CDntlnued) Fulureploiis (eonliAued) 4. Increase the amount of donated funds and participation r&tes of alumni in fvnd-raising activities of the school from the Europ¢8n alumni base. 5. Improve the visibility of the Clwity in Europe, the Middle East and Africa through matkeiing and public Telations. 6. Continue to expand ihe activities within the new. more spacious campus spaceby offering conference centre services lo thc UK cotnmuTJity and busin school pathe. This will enhance our visibility within the UK business community and providc ancillary income lo the charity. 7. Continuc to moniior the sludenls whose fees are met by thcir ¢rnploycr5 arld thc cxt¢nl lo which thosc fees are met and to rcvicw our guidance to students on how lo approach employers to request fee support. 8. Considcr way5 in which we can bring the benefil of th¢ Charity's cduc81ional prograrn5. faculty research and faciliiies to lh¢ widest possiblc rdngc of pcople, within our available budgel. The new Cjlobal Faculty in Residcnce Program that expandg the faculty prescnce and acce55ibility in EMEA was successfully launched in late FY23. We plan to continu¢ to build on this prograJn. 9. Incr¢ase ¢nLiagyeTn¢nl with corporate5. Strdtegic partners, and other stakeholders in ihe r¢gion, WTth ihc intent or building the Boorh brand in EMEA to support the di&semination of B(M)th knowledge and talent. l O. Explore the introduction ofaglobal trnck option for Booth's new M&ster in Management program. whereby students can opt to spend an academic quarter in London as part of their progrdm. Ri¥k MdMagemeAI The Directors hav¢ reviewed the major risk5 to which the Charity is exwsed. in conjunction with the overnll annual review of ihe risks and uncertainlies of Thc UnivcT5ity. The Dircctors arc content with le procedurel thai have been cstablishcd to mitigate those risks. The following risks arc tnanagcd by thc Charity.. Risk I: EMBA 5tudenl class size falliog below a level at which annual financial deficits become unacceptable for the programrn¢. Thi5 risk is mitigaied by maintaining a sutTici¢nt applicant pool to malniain class size5 between 65-70 students. The Cliarity is currcntly iTnplcmenling strategies lo meet the changing market environment. in order lo return (o enrolment class sizes within ihis targct Tangc. Risk 2= There is alway5 a risk of a change in the Universiry's view of the sLralegic importAnce of an international prcscnce. The risk is miligaied by rcgularly asscssing ihc Icvcl of Univcrsity support to assure long lern) funding or budgct dcficits. Risk 3.. Academic and staff losses thai might eTodc th¢ quality of instruction andlor the non-academic aspects of the studcnt cxp¢ri¢nce. Thc risk is miligated by reiaining and moniloring 5tatr thai ar¢ approprial¢ly qualified and trained to deliver ihe highesi level of scholarly inslnjclion and to uphold The University's slading a5 an elite Fn5titulion of liigher l¢arning in the UK and within the EuTopean cornmunily. Risk 4- Fraudulent. inappropriate or inefficient use ofresources. This risk is mitigal¢d by establisliing a7)d monitoring appropriate internal controls, including staff oversight and training. engaging appropriate third party accounlanis and independent auditors to assist in saf¢guarding the Charity's asscls. and maintaining appropriate levels of insurance coverage. Public benefit We have referred to the guidance contained In Ihe Charity Comtnis5ion. gerieral guidance on public benefil and guidance relating specifically to educational and fee-charging charilies when reviewing our aims and objeclives and in planning our future objeclives. In particulaT. the trustees consider how planned activities will contribute lo Ihe aims and objectives they have set.
The University of Chicago Booth School of Business Strategic and Directors, Report (continued) Diselosure of information to auditor The Directors who held office at the date of approval of this Strategic and Directors, Report confirn) thaL so far as they are each aware, there is no relevant audit information of which the Company's auditor is unaware. arLd each Director has taken all the steps that they ought to have taken a5 a Director to make themselves aware of any relevant audit inforniation and to estsblish that the Company's auditor is aware of that inforniation. Auditor Each of the persons who 15 a Director at the date of approval of this report confims that: so far as the Director5 are awar¢. there is no relevant audit informaiion of which the Company's auditor is unaware. and the Directors have taken all the steps that th¢y ought to have taken as a Directors in order lo make themselves aware of any relevant audit inforniation and to establish that the Company's auditor is aware of that information. The auditor, Moore Kingston Smith LLP has indicated their willingne&s to continue in office in accordance with Section 48) of the Companies Act 2006: a resolution conceming their appointment will be ped al the Annual General Meeting. This report was approved by the Board of Directors on. M V Rajan Director
The University of Chicago Booth School of Business Statement of Directors, responsibilities in respect of the trustees, annual report and the financial statements The Directors are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards. including Financial Reporting Standard 102.. The Finttncial Reporting Stondard applicable En thé UK and Republic ofJrelond (United Kinodom Gellerally Accepted Accounting Pi'actic¢). Cornpany law requires the Directors to prepare fin8n¢ial statements for eacb fmancial year. Under company law the Director5 Inust not approve the finaucial statements unless they are satisfied that they give a true and fair view of tbe state of affairs of the charitable company aDd of the inGQtning resources and application of iesources, including the income and expenditure, of thc charitable company for that period. In preparing these finan¢ial statements. the Directors are required to". 5ele¢l suitable accounting policies and then apply thcm ¢onsislently" observe the Tncrhods and principles in the Charities SORP. make judgeinents and accounting estiTTrale5 that are reasonable and prndent- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial staEements- and piepar¢ the financial staternents on the going concern basis unless it is inappropriate to presume that the company will continue in busines5. The Directors arc responsible for maintaining pioper accounting records wFLich disclose with reasonablc accuracy at any time the financial position of the chuitable company and enable them to ensure that the funCIal statements cornply with the Companies Act 2006. They arc also responsible for safeguarding rhe Sets of the chariiable compally and h¢nce for taking reasonable steps for the prcvcnlion and deteciion of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the corporate and financial infonnation included on the charitsble company's website. Legislation in the UK governing the preparation and dissemination of finan¢ial stateTnenls may differ from legislation in other jurisdictions. 10
The University of Chicago Booth School of Business Independent auditor's report to the members of The University of Chicago Booth School of Business Opinlon We have audited the financial staiemenls of The Universiry of Chicago Booth School of Business ('the company.) for the year ended 30 June 2024 which comprise the Siatement of Finallcial Activities, tbe Balance Sheet, the Cash Flow Statement and notes to the financial statements. including sigrLificatLt accounting policies. The financial Teporting framework that has been applied in their prepardtion is applicable law and United Kingdom Accounling Standards, including FRS 102 'The Financial Reporting Standard Applicable in the L.K and Republi¢ of Ireland, (United Kingdoin Generally Accepted Accounling Practice). In our opinion ihe financial statements: give a true and fair view of the state of the ¢haritsbl¢ ¢ompany's affairs as at 30 June 2024 and of its incoming resources and application of resour¢¢s. iiicluding its Income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounling Practice. and lJave been prepared in accordance with Ihc requireTheniS of Ihe Coinpanies Act ?006. Basis for opinion We condLlCted our audit in accordance with International Standards on Auditing IUK} (ISAS (UK)) and applicable law. Our responsibilities under those 5thndards are fvrther described in the Auditor's RestK)nsibilitie5 for the aiidit of the financial statements section of our report. We are independent of the charitable company in accordance wilh the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Stsndard. and we have fulfilled our other ethical responsibilities in accordance wirh these requirements. We believe that tlie audit evidence we have obtained is sufficieni and appropriatc to provide a basis for our opinion. Conclusions relArfng lo golng concern In auditing the financial statements, we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on tlie work we have perfornied, we have not identified any material uncerta7nlies relaitng to events or conditions Iliat. individually or collectively. may cast 5ignificani doubl on the charitsble company's ability to conlinue a going concem for a period of at leasl Iwelve monihs from when ihe financial ststements are authorised for issiie. Our rcsponsibilities 2nd the responsibilities of the trusLees with respect to going concern are described in Ihe relevanl sections ofthis report. Other information The oth¢r inforniation comprises the informalion included in ihc annual report. other than the financial 8talements and our auditor's repori thereon. The trustees are responsible for the other infomation contained wiihin the annual report. Our opinioi) on the financial sthiements does not ¢over the other inforniation and. except lo the extent othenvise explicitly stated in our reporL we do noi expres5 any fom) of assurdnce conclusion thereon. Our responsibiliry is to read the other inforn)ation and. in doing so. consideT whether the other inforniation 15 mateTially inconsistent with the financial statements or our knowledge obthined in the course of the audit or otherwise appears to be inaterially misstated. Jf we identify such matcrial inconsistencies or apparent material misstareinenls. we are required to deteiinine whether there is a mat18] misstst¢ment in the financial statements themselves. If, based on the work we have performed, we conclude thai there is a material missiatement of ihis Other inforniation. we are required to report Ihal fact. We have nothing to Tew)rt in this regard.
The University of Chicago Booth School of Business Independent auditor's report to the members of The University of Chicago Booth School of Business Oplnlons on other matters pr(stribed by the Companie5 Act 2006 In our opinion, bascd on the work undertaken in the course of the audit= the inforniation given in the strdtegic report and the trustees. annual rert for the financial year for which th¢ financial sts(ements are prepared is consistent with the financial statements; and thc strategic rcport and thc tDJ5tces' annuaI rcport ha%c been prcparcd in accordancc 1th applicable Icgal requirements. Matters on whlch we are requhrtd to report by exception In the light of the knowledge and understanding of the company and its envirotllnent obtained in the COUTse of the audit. we have not identified maierial misstatements in ihe strategic report or the trUses. annual report. We have nothing to report in reSpt of the following matiers whve the Companies Act 2006 requires US to repoii to you if, in our opinion.. adequate accounting Tecords have not been kept. or rett$ adequYAte for our audit have not been received from bran¢hes not visited by us- OT thc financial 51aternents are nol in agreemenl wilh the accounting records and returns. or certain disclosures of truste, remuneration specifled by law Are noi made: w¢ have not r¢c¢ived all the infonnation and explanations we require for our audiL Responsibilities of trnstees As explained more llY in the trustC¢5' rcsponsibilitics statclncnt, thc trustccs (who arc k150 thc diTCCtor5 of the charitable company for the purposes of company law) are responsible foi the preparation of thE financial statement5 for being satisfi¢d that th¢y give a true and fair vi¢w, and for such inremal control as the tNslees deiern)ine is neccssary to enable the preparation of fiDancAal StsteMlS that are free from material misstatem¢nL whether due lo fraud or eJror. In preparing the financial statements, the Irustees are re5pon5ible for a&%es5ing the charitsble company's abilily to continue as a going concern, disclosing, as applicabl¢. mailers r¢lai¢d to going concern and using the going Concern basis of accounting unless the trustees either intend io liquidate the charitable company or to cease operalions, or hav¢ no rcalistic alternative but to do 50. Auditor's Responsibilllles for the audit of the financial statements Our objectives are ro obthin reasonable a55urance about whether the financial ststements as a whole are free from material misstatement. whether due ro fraud or error, and to issue an audiiof's Teport that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audii conducted in accord8n¢¢ with ISAS (UK) will always detect a rnaierial misstatement when it exists. Misstatements can arise from fraud or etTor and are considered material if, individually OT in aggregate. they could reasonably be expected to influence the economic de¢isions of users taken on the basis of these fmancial sthtements. As part of an audit in accordance with ISAS (UK) we exercise professional judgement and maintain professional scepti¢ism throughout the audit. We also-. Identify and assess the risks of material misstatement of the financial statement& whether due to fraud or error. design and perfonn audit pro¢edur¢s responsive to those risks, and obiain audii evidence ihat is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a terial missiaiement resulting from fraud is liigher than for one Tesulting from error, as fraud may involve collusion. foTgery, intentional omission5. misrepr¢s¢ntation& or the override of intemal control. Obtain an understanding of internal ¢ontrol relevant lo the audit in order to design audit procedures that are appmpria(e in the circumstances, bul not for the purposes of expressing an opinion on th¢ eff¢cliveness of the charitable company's internal control. 12
The University of Chicago Booth School of Business Independent auditor's report to the members of The Unlversity of Chicago Booth School of Business Evaluate the appropriat¢n¢ss of accounling policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Concludc on thc appropTiaieness of the trustees. use of the going conccm basis of accouniing and, based on (he audit evidcnce Obtaine whether a material uncertainty cxists related io events or conditions that Inay cast significant doubt on the charitablc company's ability to continue as a going concern. If wc concludc that a material uncertainty exists. we are rcquircd to draw attcntion in our auditor's repot1 to the related disclosurcs in the financial statements or. if such disclosurcs arc inadequate, to modify our opinion. Our conclusions arc based on the audit evidence obtaincd up to thc datc of our auditor's reporL However. future cvcnts 01 conditions may cause the charitablc cornpany to ccase to continue as a going concern. Evaluale thc ovcrall prcscThtation. structUTe and con(enl of the financial sta1cmcn including thc disclosuTes, and wlictlicr thc financial 5taiements represeni the underlying trdnsactions and cvcnts in a TnaT]ner th&t achieves fair prcscntation. Wc comTfLunicate with those charged with govcrnancc rcgarding. among other matters. the planned scopc and timing of the audit and significant audit findings. including any significant deficiencies in internal control that wc idcntify during our audit. Explanation as to what extellt the audit wa$ considered capable of deteetimg irregulgritiw including fraud Irregularities, in¢luding fraud, are insLances of noTJ-compliancc with laws and regulations. We design procediires in line with our responsibilities, outlined aboiie, to delecl MaTial misstatements in respect of iegularl11e5. including fraud. The extent to which our PTocedures ar¢ ¢apable of deteciing irregularilies. including fraud TS detsiled b¢low. The objectives of our audil in respeci of frdud, are- to idenlify and assess the risks of maierial misslatemenl o( the rinancial statements due to frnud- to obtain sU1C]ent appropriate audit evid¢n¢e regarding ihe assessed risks of material misstsiement due to frdud. through designing and implemeniing appropriate responses to those assessed risk5. and ro respond appmpriately to instances of fraud or suspected ftaud identified during the audit. However, Ihe primary responsibility for the prth'eniion and detection of frdud rests wilh both managenient and those charged with gowernance of the charitable company. Our approach was as follows= We obtained an undcrstmnding of the legal and regulatory requirements applicable to (he charitable eompany and considered that the mosi significant are the Companies Act 2006. the Charities Act 2011. the Charity SORP, and UK financial reporting standards as issued by the Financial Rcporting Council. We obtaincd an undcrsiandiTiE ofhow the charlble company complic5 With ihcs¢ requirenienis by discussions with mana¥emcnt and those charged wilh governance. We assessed thc risk of malcrial misslateTnent of the financial slalcmcnl& including the risk of inaierial misstatCTncni duc lo fiaud 2nd how it might occur, by holding discussions With Management and those chargcd with governance. We inquircd of rnanagunent and those charged with governaDCC a5 to any known instsnces of non-compliance UI SUbV¥LILLi iiiiii-LviiipliatiLe with laws aiid iEgulations. Based on this undcrstanding. we designed specific appropriatc audit pC¢dUreS to identify instances of non- compliance with laws and regulations. This includcd making enquiries of management and ihosc chargcd with governance and obtairjing additTonal corrobordtivc cvidence as required. There are inherent limitations in thc audit prncedures described above. We are le55 likely to becoTne aware of instances of non-coinpliance with laws and reEulalions that are not closely related to cvcnts ond transactions rellected in the fiDancial statements. Also, the risk of not delecting a material mis5tateTneni due lo fraud is higheT than the risk of nol detecting one resulting froin error. as fraud may involve deliberaie concealinent by. for exainple. forgery or intenlional Tnisrepr¢sentations, or through collusTOn. 13
The University of Chicago Booth School of Business Independent auditor's report to the members of The UnRversity of Chicago Booth School of Business of our report This report is made solely to the charitable coMpanS members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audil work has been undenaken so that we might srate lo the company's members those matter5 we are required to state to them in an auditor'5 report and for no other Purpose. To the fullest extent perniitted by law, we do not accept or assume responsiTr>ility to any party other than the charitable company and charitable company's members as a body* for our audit work. for this reporl or for the opinions we have fornied. James Saunders (Senior Ststutory Auditor) for and on behalf of Moore Kingston Smith LLP. statOry Auditor 9 Appold Street London EC2A 2AP 12 March 2025 14
The University of Chicago Booth School of Business Statement of financial activities (including the income and expenditure account) for the year ended 30 June 2024 Unrestricted 2024 2023 Notes Ineome Charitable activities 7.E20,155 8,577,936 Total income 7,120.155 8.577,936 Expenditure on: Charitablc activities (16.085,847) 116,091,328) Total wendilure (16,085,847) (16.091,328) Net expendire and net movement in funds for the year (8.965.692) (7.513,392) Reconciliation of funds". Tott41 deficit on funds brought forward io 154.613,709) (47,100,317) Total defjcit of funds carried forward 10 (63,579,401 } (54.613,709) All ndS are unrestricied. The notes on pages 18 to 26 fonn part of these financial statements. 15
The University of Chicago Booth School of Business Balance sheet As at 30 June 2024 2024 2023 Flxed gssets Tangible assets 7.244,994 8,345,880 Current a&stts Debtors Cash at bank and in hand 2,655,530 3.628.849 1,056,208 440,196 3,711,7J8 4.069.045 Creditors: amouDts falling due witbin one yur (74.536,133) (67.028,634) Net eurrent Ilablllties (70.824,3951 (62,959,589) Total assets less current IiAbilities (63,579.40I) (54,613,709) Net Ilabllitles {63,i79.401) (i4,613,709) The funds of the Charity: Unrestricted deficit io (63.579.401) (54,613,709) All assets and liabilities relate to general unrestricted fvnd5. The notes on pages 18 to 26 forni part of these financial Statements. Approved by the Board of Directors on 2025 and signed on its behalf by: M V tiajan Company gIStratIon number: 05356589 16
The University of Chicago Booth School of Business Statement of cashflows For the year ended 30 June 2024 2024 2023 Notes Net Cash generated from operating activities Cash generated from opcrations Intcrc5t paid 12 934.516 274,260 (317,425) (317,915) Net cash generated fron{Sed in) opergting Ylctiviti 617,091 (43.655) Increasel{decrease) in cash 617.091 (43,655) Cash and cash equivalents at beEinning of year Effect of foreign exchange rate changes 440.196 (1,079) 486,677 (2,826) Cash and cash equivalents 91 the end of the year 13 ,056,208 440,196 17
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ended 30 June 2024 Aeeounting polities The following accouniing tx)licies have been applied consistently in dealing with itrms which arc considered marial in relation to the financial statements. Basis of preparation The finaT]cial 5tatcmcnts havc been prepared under the historic cosi basis of accounting, in accoTdance with Accounting and Rcponing by Charilics.. Ststement of Recommended Practice applicable lo charities prepaTing their financial statements in accordance with thc Financial R¢porting Standard applicablc in the UK and Rcpublic of Ireland (FRS 102) (effective l January 2019}- (Charities SORP (FRS 102)). tlic Financial Rcporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Thc financial statemenls are prepared in Sterling, which is the funclional currcncy of thc Charity. Monctary amounts in thesc financial statements are rounded io the nearest £1. Thc functional currency of The UniveTsity of Chic&go Booth Schijol of BuSLfic5S 15 considered to bc pounds slcrling because that is the currency of the primary economic envrronment in which ihc Charity opcralc5. Going concern Notwitlistanding n¢1 liabiliti¢s of £63.579,401 as at 30 June 2024 aT)d a 105s for the year then ended of £8.965,692, the financial ststements have been Prepared on a going ¢on¢¢rn basis which the directors consider to be appropriate as ihey have received written confirniation from rhe company's parent undertaking? Ihe University of Chicago. thai il will conlinuc io provide financial support to ihe company lo enable it to meet its liabilities as they fall due fora period of at least 12 months from the date of approval of theK finaT)cial statements and will not seek repayment of amounts OW to ti Itotslling £68.735.409 al 30 June 2024) during this Peri]. As with any charilable company placing reliance on other group erttities for financial 1PpOrt, the DirecloTS acknowledge that there can be no cerlainty ihat this support will Continue although. at the dalc of appToval of these financial statements, Ihey have no rean to believe that it will noi do so. Cons¢quenily, the Directors are confident that the charitable company will have sutricient funds lo continue to meet its liabilities as they fall due for ai leasi 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern ba51S. Fund accounting Unrestric(ed funds Are genernl funds thai aTe available for use at ihe Directors. discretion in furtherance of the objectives of the Charity. Income Fees receivable and charges foT services and use of premises are accounted for in the period in which the service is provided. Income is recognised wh¢y] thc rharity h&5 cntitlcmcnt lo the funds, any perforn)ance conditions attached to the income have been met. il is probable that thc incorn¢ will bc rcccivcd and thc aujount can be ¢a5ur¢d r¢liably. Donations r¢cciv8blc for thc generdl pury>oses of the Chartty are credited to Unrestricted Funds on receipt, or if earlier, when the Charity is Icgally cntitlcd to thc income and the amount can be measured reliably.
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ended 30 June 2024 Accounting polities (eontlnued) Expenditure Expenditure is accounted for on an accruals basis. The Charily is VAT registcrcd. The vast majoriry of its 5upplics #re exempt frorn VAT bcing thc provision of educlltion and thercfoTC thcrc is J)0 entitlement for the Charity to recover the VAT it incur5. Thc ch]ry generally posts all UK cost5 a5 gr055 50 the VAT ts an additional cost to the businc5s. Thc Charity also monitors its UK supplie5 to cnsurc that they fall within the exemption undcrthc Tclevani VAT legislatioTh. In addition, thc Charity occasionally receives supplies of scrvicc5 from non-UK suppliers and therefore has to account for thc Tcverse charge output VAT on its VAT retUTns. As the Charity is generally making only exempt supplic5 It Cannot recover this VAT and so is requircd, through its VAT rcturn, to make a payment to HMRC. Governancc costs comprise the costs of running the Charity. including strategic plavjning for its future dcvclopmcn( cxternal audit, any legal advicc for thc Charity DItOrS. and all the costs of cornplyiDg with onstiriOnal and statutory rcquircTfJCDts, such as the costs of Board and ComTnillcc meetings and of prepaTing ststutory a¢counts and satisfying public accountability. Operating luses Rentals payable under operating lease5 aTe charged to the SOFA on a straight-line basi5 over the lease temi. The benefit of any rent free perioits is spread evenly over the lease tenn. Pension schemes The Charity operales a defined contribution pension scheme. Contributions are charged to the SOFA as they becomc payable in occordance with the rules of thc scheme. Fixed assets capilaloI[0n and Yeplacemenl Cost relating to the fit out of the building. whith includes botb improyemenis and expenditure on rniture, fittings and equipment are capiialised and carTied in the balance sheer at cost less depreciation. A55ets are only capitslised where lh¢ are considered malerial or cosis for enhancemenls lo an existing asset. Deprecialion Depreciation is provided on all tAngible fixed assets from Ihe time they are kvailable for use at rate5 calculated to write off the cosi in equal instsiments over the e5timatcd lives of the hss¢ts. The rates of deprcciation 8re ks follows= Leasehold improvemenls Audio and visual equipment Cotnputer and telecommunications cquiplnertl FUrnIre, fixtures and equipmcnt over the tern) of the lease 200/0 per annum 200/0 per annum IOO/o to 201J/o P annu Cash st bank and in hand Cash at bank and in hand includes cash and shon-iern] highly liquid investments with a short maturity of thrce months or Ics5 from the date of acquisition or opening of the derKJsit or similaT account. Taxation The University of Chicago Booth School of Business is considcrcd lo pass the lesls set oul in ParagTraph I Schedule 6 Finance Aci 201 O and therefore IÉ meets the definition of a charitible company for UK corw>ratiorb tax purposes. Accordingly. the Charity is poteniially cxempi from taxation in respect of incoTn¢ or capitsl gains received within categories covered by Chapier 3 Part I I Corporation Tax Aci 2010 or Section 256 of the Taxation of Chargeable Gains Act 199? to the extent thal such income or gains ar¢ applied exclusively lo charitable purposes. 19
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ended 30 June 2024 Aceovntlng policies (continued) Foreign currencies Transactions in foreign currencies are reLorded ai the rate prevailing at the date of the transaction. Monetary assets and liabiliti¢s dcnominated in foreign currencies are translaled into Sierling at the year-cnd cxchange rdtes. All differences ar¢ takcn to thc siatcmcnl of financial activilie Financial instruments The ¢h0rity has elected to apply the provisions of Section I I 'Basic Financial InstruTnent5' and Section 12 'Other Financial In5trLunents Issues. of FRS 102 to all of its financial instnunents. Financial instrument5 are recogThised in the chariry's Balance Sheet when the charity becomes party io the contracnlal Provisions of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements. when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liablty simultaDeously. Trade debtors and creditor5 Trade and othcr debtors are recognised at the settlement amouni due aftci. any tradc discount offered. Prepayments are valued at the amount prcpaid net of any trdde discount5 dlle. Creditors are recognised whei'e the Charity has a present obligarion Tesulting from a past evcnt that will probably result in the transfer of fvnds to a third paTty and the amount due to settle ihe obligation can be measured or estimated reliably. Cr¢ditors are recogni5ed at their settlement amount after allowing for any trade discounts due. Critical ae¢ounting judgemeots and key sources of eslim#tion uneert*iDty In the application of the Charity's accounting policie5. which aTe described in note I, the Dire¢toys are required to make judgements. estimates and assumptions about the carying amounts of assets and liabilities thal al'e not readily apparent from otheT sources. The estimate5 and associated assumptions are based on historical expertence and other factors ihat are considered to be relevant. Actual results may differ from these esiimates. The estimates and underlying assumptions are reviewed on an ongoing b&sis. Revisions to accounting estima8 are recognised in the period in which the estimate is revised if the revision affects only that perio& or in the period of the revision and future periods if the revision affects both CUTrenl and future periods. The Direciors do not consider there are any Critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting )I]CleS 1]ed above. Income from charitable activities Income from chaTitsble activities comprises Nilion fees received from students on the degree Executive MBA programs and non-degree Executive Education programs. 20
The University of Chicago Booth School of Buslness Notes to the financial statements (continued) Year ended 30 June 2024 Charitable gctivitiei 2024 2023 Direct costs: Universily Education 2.572,627 3,105,708 Support Costs: Operaiing lease rentals- on land and buildings Interest on promissory loan note Foreign exchange gain5 Deprecialion Support stsff costs Other support costs (including governance costs) 3,566.516 3.270,963 317.425 317,915 (8,1741 (514,979) 1.100,886 1,100,886 1,837,095 1,728,984 6,699,472 7,081.851 Total expenditure 16,085,847 16.091.328 Governanee costs Audil services Accountancy 25.000 8,825 17250 8,250 33,825 25.500 Moore Kingston Smith only receivcd fees in rcspcct of Audit services. Total fees exclusive of VAT amounted to £25,00012023.. £17.250). Staff costs 2024 2023 Wages and salaries Social security costs Pension contributions 1.494.787 1.374.567 229.476 231230 112.832 123,187 1.837.095 1.728.984 The average number of employees in the period was 27 (2023= 26). No Directors or person5 connected with thern received any remuneration. other benefits or reimbursemeni ofexpenses from the Charity. Reinuneration is received from the Univ¢rsiry of Chicago in the US. No recharges are received from the University of Chicago as the prow>rtion of directors remunerdtion relating to the Chairty is inconsequential. The Directors consider key management personnel to be the dircctors and Eli28beth O'Neill and Starr Marcello who are employed by the University of Chicago in the US. with global responsibilities. a portion of which includes the UK Charity. Therefore. no key management personnel remuneration is disclosed. 21
The University of Chlcago Booth School of Business Iyotes to the financial statements (continued) Year ended 30 June 2024 5. Staff costs (eontinued) The number of higher paid employees was.. 2024 No. 2023 Employee benefits (excluding employer pension Contrib10s)= £60,000- £70,000 £70,000- £80,000 £80,000- £90,000 £90,000- £100,000 £ioo,000 - £i10,o £1 10.O(M) - £120,0(KI £120,0(M)- £130,0(KI £I30,0- £140.0(KY £1210,OIXI- £150.OIKI £170,000- £180,OIKI £190,000- £2(Ki,OIXI Tothl 13 10 6. Tanglble flxed assets Computer FurDiture, Audio and telecom- rtre5 Leasehold vtsual mullleatfions and improvements equipmeDI equlpment equlpment TotAI Cost At l July 2023 9,088,183 1.189,349 904.905 756,972 11.939,409 At 30 June 2024 9.088.183 1.189.349 904.905 756,972 11.939.409 Depreciation At 30 June 2023 Charge for the year 1.983,247 606.338 778.450 237.870 582.196 180.981 249,636 3.593,529 75.697 1.100,886 At 30 June 2024 2.589.585 1.016.320 763,177 325,333 4,694,415 N¢¢ book values At 30 Jun¢ 2024 6,498,598 173.029 143,90? 429.465 7,244.994 At 30 Juue 2023 7,104.936 410.899 322,709 507.336 8,345,880 22
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ended 30 June 2024 7. Debtors 2024 2023 Trade debtors Ainounts receivable from group companies Other debiors Prepayments and accrued income 285.206 .058.612 22.322 1.289.390 286,574 2.097,488 15,450 1229.337 2,655.530 3,628,849 8. Creditors: amounts falling due within one year 2024 2023 Fees received in advance (see note 9) Other creditors and accruals Arnounts payable to group companies 961,351 1.088,910 4,839.373 5.538,138 68,735,409 60,401.586 74,536.133 67,028,634 The intercompany balance due to the University of Chicago LS which amounts to £67.263,527 (2023= £60.401,586) has been included in creditor5 due itL less than one year. Included within thi5 balance is a proiTLiSSOry loan note amounting to £5,290,414 (2023-. £5,298,588), the loan is denominated in US dollars and the movement of £8.174 relates to 3 forei8n exchange gain in the year. Lnierest is also accruing on the loan at 60/0. The accThed interest included in amounis payable to group ¢oinpanies is £635,34012023: £317,915). The loan note is repayable on demand arKI The University of Chicago US has indicaied il is not intending to demand repayment in the foreseeable futurc. The remaining balance of £61.337.773 (2023= £54,789,895) relates primarily (o the operaiions of the Europe Campus and payables arising. from thc ongoing teaching and 5crvices a&eement and whilst the amount legally remains payable on demand il is considered ihai recov¢ry is nol expected by The University of Chicago US. The int¢r¢ompany bal8nce also includes amounts due to the University ofchicago Foundation in Hong Kong which amounts lo £1.471.88212023'. amount due from of £1.509.229). 23
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ellded 30 June 2024 'ees reteived in advance Stlents are Tequesled to make a sizeable dewsit towards their tuition fees in the spring priorto their firsl quarter session, £i.800 per student. Iii addition. son)e students n)ay liave paid the reniaindei. of tlie first quaitei. tyition. £16.220 by the end of June. Both amounts are taken into income with the ¢ommencement of the first quarterly session in September. Consequently, every year, at the end of th¢ fiscal y¢aT, there will be an advance fee payment li&bility on the books. In addition, many smdents are subsidised by th¢ir ¢mploy¢rs. Occasionally. we receive more than ftsur quarters of tyition fees paid al on¢ tim¢. This results in a few advance fee payments that may not be applied within a yeaT. Also, on occasion. a sNdent will tske a leave from the progrdm, after having paid, with the intent of continuing at a later date. This may also lead to advance fee payments applicable to more than one year in advance. 2024 2023 Within l year 961,351 1,088,910 The balance represents the accrued liability under the contracts. Th¢ mov¢ments during the year were: 2024 2023 Balance at l July Fees received in the year Amounis re¢ognised in the ¢ury¢nt year .088,910 1.191,549 760,259 785.863 (887,818) (888,502) Balance ai 30 June 961,351 1,088.910 io. Anatysls of eharltable deflelt 30 June 2023 30 June 2024 Income Expenditure Unrestricted general deficit (54,613,709) 7.120.155 (16.085,847) (63,579.401) 30 Julle 2022 30 June 2023 Income Expenditure Unrestricted general deficil (47,100,317) 8.577,936 (16.091,328) (54.613.709) 24
The University of Chicago Booth School of Business Notes to the financial statements (Continued) Year ended 30 June 2024 Operatlng lease eommltments At 30 June. Ihe Company had annual commitments under non-cancellable opeTating leases as follows: 2024 2023 Lgnd and buildings L#nd and bulldlDgs Other Totsl Other Total Leases which expire= Within one year Within two to five years Mor¢ than five years 3.974,654 14,652.099 3.974,654 3.995.366 14.652,099 15,695.011 22,792,154 1.425 3,996,791 15.695,011 22,792,154 18,626,753 18,626.753 42,48?,531 1,425 42.483,956 During 2019, 8 le was enier¢d into for a new campus buildtng. The inilial lease tenn is 15 years, commencing I st April 2019. 12 Reeoncililltion ol net expenditure lo net tash generated from operations 2024 2023 Net expenditure Non-op¢rating ¢&sh flows eliminatd: Finan¢¢ costs Depreciation charges added back Unrealised forcign CUTrency gains and losses Dccrease in debtors Increase in trade and other creditors Decre&8e in advance fee contracts (8.965.692) (7.513,392) 317.425 317.915 .100.886 1.100,886 1.079 228.563 973,319 2,957,394 7.635,058 3285,533 (127.559) (102,639) Iyet cAsh generated from operations 934.516 274,260 13. Analysis of change in net funds Exchange lJuty rgte 30 June 2023 Cash Flows movements 2024 440.196 614.933 1,079 1.056.208 (5298,588) 8.174 (5,290.414) (4.858.392) 9.253 (4.234,206) Cash Loans falling due within one year 614.933 25
The University of Chicago Booth School of Business Notes to the financial statements (continued) Year ended 30 June 2024 14. Related party transaetlons University of Chicago in the US is the parent of the Charity 'Chicago Booth, and, as such, is responsible for the appointmcnt of all managemcnVDircctors of Chicago Booth's London Campus, as well as providing thc necessary funding and a variety of support service5. 2024 2023 Opening balance l July balance due from the University of Chicago Foundation in Hong Kong Limited Repayment of prior campus fi]nding from Hong Kong Costs incurred on behalf of th¢ Hong Kong campus and r¢¢harg¢d 1.509.229 4.565.629 (3.095,909) (3.024.222) 114,798 132,178) Closing balance 30 June balance due (toyfrom the University of Chicago (1.471.882) 1.509,229 Foundation in Hong Kong Limited Opening balance l July owed to the University of Chicago Costs incurred on behalf of Charity by the US and T¢charged Teaching and services agreement Accrued interest costl(income) on build out loan Tuition income received in the US Foreign exchange restatement of build out loan due in USD as at 30 June Campus funding in relaiion io One Bariholomew campus 60.401,586 55.865.003 469,141 149,973 3.381,404 3.508,537 317.425 (12.795) (799.792) (1.078.187) (8,174) {203,249) 3.501.937 2.171,704 Closing balance 30 June owed to the University of Chicago 67,263,527 60,401,586 Amounts due from group undertaki7)gs also includes a balance of £1.058,612 (2023= £589.371} amount due lo group undertakings) due from the Universiry of Chicago Booth School of Business in Singapore. 15. Ultimate eontrolling undertaking Thc Dircctor5 corisidcT Thc University of Chicago, a company registered in Thc United State5 of Amcrica to be the ultimatc controlling und¢rtaking and is Ihc sniallc5t group con501idating th¢ rc5uIts of this company. Copics of the University's financial ststements are available upon request in writing to 5801 South Ellis AveTLUC. Chicago, Illinois 60637. USA. The Charity's accounts are consolidated inio the parent financial statements as part of the Booth School of Business figures. 26