Company Registration Number 05889034 (England and Wales) Charity Registration Number 1117883
Company Limited by Guarantee Annual Report and Financial Statements
For The Year Ended 31 July 2021
LONDON COLLEGE OF BUSINESS STUDIES ANNUAL REPORT AND FINANCIAL STATEMENT CONTENTS
| Page | |
|---|---|
| Company information | 3 |
| Trustees’ Report | 4 |
| Independent Examiner’s Report | 7 |
| Statement of Financial Activities | 8 |
| Cash Flow Statement | 9 |
| Statement of financial position | 10 |
| Notes to the accounts | 11 |
| Detailed profit and loss account | 13 |
1
LONDON COLLEGE OF BUSINESS STUDIES COMPANY INFORMATION FOR THE YEAR ENDED 31 JULY 2021
Trustees
Mr Mansoor Ahmad Saad Mr Ahmad Ayyaz Shakir Mr Ahmad Sarfaraz Yasir
Company Number Registered Charity Number Registered Office
05889034 (England and Wales)
1117883
277 Cranbrook Road Ilford IG1 4TG United Kingdom
Solicitors
Stone King Solicitors 16 St John’s Lane London EC1M 4BS
2
LONDON COLLEGE OF BUSINESS STUDIES (COMPANY NUMBER: 05889034 ENGLAND & WALES) CHARITY NUMBER 1117883 TRUSTEES’ REPORT
The Trustees present their report together with the financial statements of the charity for the period ended 31 July 2021.
The Board of Trustees considers the charity in a reasonable position to continue its activities during the coming year and that the charity assets are adequate to fulfil its obligations.
Trustees
The following Trustees held office during the whole of the period:
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Mr Mansoor Ahmad Saad
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Mr Ahmad Ayyaz Shakir
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Mr Ahmad Sarfaraz Yasir
Nature of governing document and constitution of the charity
Memorandum and Articles of Association Incorporated on 27 July 2006 as amended by special resolution dated September 2006 and January 2007.
Objectives and Activities of the Charity
Objects of the charity as set out in its governing document.
The Objects of the Charity are to advance education by provision of courses to home and international students.
The charity’s main objectives for the year;
- 1 Delivering Higher Education at Higher National Diploma Level 2 Technical and Vocational Education 3 Adult and Other education and training 4 Consultancy to Higher Education Sector
3
Review of charitable activities 2020-21
The whole of the financial year was full of challenges for the College due to the risks and obstacles posed by COVID 19. However, due to the use of technology, the College was able to minimise the risks faced and adjust to the requirements as set out by the UK Government. The welfare of it learners, their progress and achievement are of upmost importance to the College. All learners remaining on the programmes were already acquainted to the online learning that had initiated during the financial as well as the academic year as they are both aligned together. Importantly, understanding the challenges posed to lecturers and learners due to the nature of online classes and learning, the College ensured that additional steps were taken to support the staff, learners and the entire teaching process. It was ensured that the classes were delivered without compromise to any quality and standards fundamentals, enabling the College to uphold quality assurance in its programmes.
For its Pearson Higher National in Business programme, the College continued to give importance to the adherence of regulatory requirements set by the statutory stakeholders, while improvising on implementing improved and learner friendly ways of enhancing overall learner experience. This was evident through the leaner achievement. All learners remaining on the programme were able to pass and achieve their qualifications successfully. With all the cohorts and groups of learners having completed their studies at the College, the College was able to obtain a pass rate of over 90% for its HN in Business programme. The academic performance of the learners and the College’s academic staff was commendable as majority of the learners on the programme, were able to achieve the qualification, showing successful outcomes for College’s objectives for learners. This, once again, reflects the value for money that the College is creating for its learners. The external examiner from Pearson expressed confidence in College’s academic functions and allowed for all certificates to be claimed. Following on from its rigorous approaches to quality and standards in the provision of education and training in the preceding year, the College continued to sturdily maintain these through the various processes and functions that it has developed over time with a strong commitment to continuous improvement. Qualified and competent teaching and administrative staff members continued as a part of the team in order to allow the College to fulfil its objectives and establish a concrete base for goal congruence. As a part of its quality assurance mechanisms, the College reviewed all its policies, Committee Structure and its functions to ensure a fit for purpose and value adding mechanism was in place to deliver desired objects.
Improvement and quality assurance are at the core of College’s objectives and it is committed to its goal of continuous improvement. The College’s quality and standards were positively conformed through external quality assurance processes such as the Awarding Body, Pearson and Matrix. The College was able to successfully pass it annual Academic Management Review conducted by Pearson and was also able to satisfy Matrix regarding its annual progress towards the Information, Advice and Guidance mechanism available for its learners.
College’s application for registration with the Office for Students (OfS) remains pending and is being dealt by the Office for Students (OfS) on a priority basis. We expect to have a positive outcome soon. The delay in the College application has undoubtedly caused an effect on College’s plans related to Higher National programmes as the College was unable to recruit further learners expecting to draw student loans to fund their studies. Despite this the College has received great amount of interest from learners due to its good reputation among the student market. However, once again, external factors that are out of College’s control, contributed to the alteration in College’s operational plans and financial outlook. However, the College continued with its strategy of the implementation of a multi-income generating business model in order to be prepared to tackle with any contingencies that may materialise as a result of unexpected or unforeseen events or circumstances. That is why it continued to focus on the other business activities, such as short training courses and professional development and training programmes, simultaneously to the designated programmes. The College currently has registration with CISCO and Palo Alto for its networking courses. This demonstrates College’s ability to sustain without over reliance on other bodies, as it has done so over the years. College’s activities related to 2020-21 have also involved the strengthening of its operational and strategic effectiveness and control in order to effectively, efficiently and economically fulfil its purpose and objectives. The College has thoroughly reviewed and managed all the different types of operational and strategic risks that it is exposed to and has continued to sustain and maintain its operations. The College will continue to use all endeavours in order to ensure the delivery of good quality services and benefits to the community and the establishment of growth and prosperity.
4
Public Benefit
The Trustees have considered the Charity Commission’s guidance on public benefit when reviewing the aim and objectives and in planning future activities. The Trustees are mindful that they need to consider and explain how the charity fulfils its charitable object and confers appreciable public benefit. They consider that effectively all the operations of the charity tend towards that end, for example;
• London College of Business Studies is a UK online centre and therefore anyone who wishes to use the College’s computer facilities can do so, free of charge.
• Educating and training the public is beneficial to improving the society, especially learners from nontraditional routes and disadvantaged backgrounds
• London College of Business Studies offers scholarships and discounts to students who are financially unable to pay their fee, but are exceptionally good students.
Revenue Generation
The charity has received all the income as fee from education and training provided.
Decision Making
Decisions and strategic direction are formulated by the Trustees together with the Senior Management Team.
Risk
The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that the systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. A Risk Profiling Document is maintained in order to determine, evaluate and manage all risks associated to the organisation.
To mitigate against any financial misappropriation, Trustees and accounting staff regularly monitor and supervise the financial affairs of the charity.
Financial Review
The college has produced 12 months account. The income attributable for the period ended 31st July 2021 is £289,609 which is less than the preceding year due to no additional recruitment on the designated HE programmes. In addition to the income from the HE learners remaining on the programme, the College also generated additional income through its short training courses. The College has once again seen a successive financial gain in this year after being in surplus in the previous financial period. This is another positive sign as despite the College not being able to operate at its full potential and capacity, it was able to sustain financially with the view of moving forward with no compromise of the quality of the operations.
Reserve Policy
The Trustees consider holding reserves amounting to approximately at least three months’ average expenditure. The free reserve ensures the charity does not need to obtain overdraft facilities during the year. Additionally, in line with its plans for growth, development and enhancement of learning, the College may also plan systematic holding of additional reserves in order reinvest these for the said objectives.
Transactions and Financial Position
The financial statements are set out on pages 8 to 12. The financial statements have been prepared implementing the 2014 Revision of the Statements of Recommended Practice (SORP) for Accounting and Reporting by charities issued by the Charity Commission for England and Wales (effective January 2015) and in accordance with the Financial Reporting Standard for the Smaller Entities (effective April 2008). As stated in the introduction of this report, the Trustees consider the financial performance by the Charity during the year to have been satisfactory.
5
Specific changes in Fixed Assets
Changes in fixed assets are shown in detail in the notes to the accounts.
Share Capital
The company is limited by guarantee and therefore has no share capital.
Recruitment of Trustees
London College of Business Studies adheres to maintain a good strategy to recruit its trustees. Trustees have the responsibilities to seek and induct the applicants in order to find the best and suitable candidate who will be an asset to the charity in its establishment and growth.
Accounting Policies
The accounting policies adopted by the charity are detailed in Note 1 to the financial statements. There have been no changes to the accounting policies during the period.
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the report and accounts in accordance with applicable law and regulations.
Company law requires the Trustees to prepare accounts for each financial year. Under that law, the Trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Small company provisions
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Signed on behalf of the Board of Trustees
............................................................................ Mr Mansoor Ahmad Saad Trustee Approved by the board on: 31 May 2022
6
Independent examiner's report on the accounts
Report to the Trustees of: London College of Business Studies On Accounts for the year ended: 31 July 2021 Charity No: 1117883 Set out on pages: 8 to 12
I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31/07/2021.
Responsibilities and basis of report
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
The charity’s gross income exceeded £250,000 and the firm is qualified to undertake the examination by being a qualified member of Institute of Financial Accountants (IFA).
I have completed my examination. In addition to the accounts, I have also reviewed the Trustees’ report. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
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the accounting records were not kept in accordance with section 130 of the Charities Act; or
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the accounts did not accord with the accounting records; or
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the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signature Name: Muhammad Masood, ACCA Date 31[st] May 2022
AHEA Accountants and Business Advisors 45 Chester Road London E7 8QT
7
LONDON COLLEGE OF BUSINESS STUDIES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021
| Income Cost of Generating Income Gross Income Resources Expended Operating Income Income from ordinary activities before taxation Tax on income from ordinary activities Net incoming resources/ (deficit) |
2021 £ 289,609 (6,500) 283,109 (278,917) 4,192 4,192 - 4,192 |
2020 £ 493,492 (31,660) |
|---|---|---|
| 461,832 (450,785) |
||
| 11,047 | ||
| 11,047 - |
||
| 11,047 |
8
LONDON COLLEGE OF BUSINESS STUDIES CASH FLOW STATEMENT FOR THE PERIOD FROM 01/08/2020 TO 31/07/2021
| Cash generated from operations Operating Surplus/ (deficit) Reconciliation to cash generated from operations: Depreciation Amortisation of goodwill (Increase)/decrease in debtors Increase/ (Decrease) in creditors Cash from other sources Proceeds from sale of tangible fixed assets Application of cash Purchase of tangible/ intangible fixed assets Financing Activities Proceeds from non-current loan Outflows from financing activities Net increase / (decrease) in cash Cash at bank and in hand less overdrafts at 01 August Cash at bank and in hand less overdrafts at 31 July Consisting of: Cash at bank and in hand |
2021 £ 4,192 34,158 - (75,058) 12,052 (24,656) - - (56,650) - (1,459) (82,765) 328,989 246,224 246,224 |
2020 £ 11,047 26,661 - 72,833 4,252 |
|---|---|---|
| 114,793 | ||
| - | ||
| - | ||
| - | ||
| - | ||
| 100,000 | ||
| 214,793 114,196 |
||
| 328,989 | ||
| 328,989 |
9
LONDON COLLEGE OF BUSINESS STUDIES STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2021
| Notes Fixed assets Tangible assets 4 Current assets Debtors 5 Cash at bank and in hand Creditors: amounts falling due within one year 6 Net current assets Net assets Long term Liabilities, Capital and reserves 7 Long term liabilities Unrestricted Funds Total funds |
2021 £ 102,475 176,560 246,224 422,784 (19,494) 403,290 505,765 98,541 407,224 505,765 |
2020 £ 79,983 101,502 328,989 |
|---|---|---|
| 430,491 (7,442) |
||
| 423,049 | ||
| 503,032 | ||
| 100,000 403,032 |
||
| 503,032 |
For the year ending 31 July 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities.
Approved by the Board on 31 May 2022.
Mr Mansoor Ahmad Saad Director/ Trustee
10
LONDON COLLEGE OF BUSINESS STUDIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021
1. Statutory information
London College of Business Studies is a private company, limited by guarantee (registration number 05889034), registered charity (1117883) in England and Wales. The registered office is 277 Cranbrook Road, Ilford, IG1 4TG, United Kingdom.
2. Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
3. Accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
Basis of preparation
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
Presentation currency
The accounts are presented in £ sterling.
Tangible fixed assets and depreciation
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
| Plant & machinery | 25% |
|---|---|
| Fixtures & fittings | 25% |
| Computer equipment | 25% |
| Other tangible fixed assets | 25% |
| 4. Tangible fixed assets Cost or valuation At 1 August 2020 Additions At 31 July 2021 Depreciation At 1 August 2020 Charge for the year At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020 5. Debtors 2021 £ Trade debtors 176,560 |
Fixtures & fittings £ At cost 168,590 56,650 |
|---|---|
| 225,240 | |
| 88,607 34,158 |
|
| 122,765 | |
| 102,475 | |
| 79,983 | |
| 2020 £ 101,502 |
11
LONDON COLLEGE OF BUSINESS STUDIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021
| 6. Creditors: amounts falling due within one year Trade creditors 7. Creditors: amounts falling due after one year Bank Loan |
2021 £ 19,494 2021 £ 98,541 |
2020 £ 7,442 |
|---|---|---|
| 2020 £ 100,000 |
8. Average number of employees
During the year the average number of employees was 9 (2020: 13).
12
LONDON COLLEGE OF BUSINESS STUDIES DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021
| Turnover Fees Cost of sales Commissions payable Gross Income Administrative expenses Wages and salaries Staff training and welfare Travel and subsistence Entertaining Rent Rates Light and heat Cleaning Telephone and fax Stationery and printing Information and publications Subscriptions Bank and finance charges Software Repairs and maintenance Depreciation Sundry expenses Accountancy fees Consultancy fees Advertising and PR Other legal, professional and insurance charges Operating Income Net surplus on ordinary activities before taxation |
2021 £ 289,609 6,500 283,109 88,167 1,137 25 - 125,000 1,322 8054 838 2331 103 - 1,414 208 5448 246 34,158 - 6,700 - 2125 1,641 278,917 4,192 4,192 |
2020 £ 493,492 |
|---|---|---|
| 31,660 | ||
| 461,832 | ||
| 143,545 8,560 700 5,930 109,297 1,917 5,044 15,522 2,435 16,140 15,487 14,827 - 12,937 4,614 26,661 300 11,050 11,590 17,365 26,864 |
||
| 450,785 | ||
| 11,047 | ||
| 11,047 |
13