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2023-06-30-accounts

Registered number: 06776342 Charity number: 1127386

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 7
Independent auditors' report on the financial statements 8 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 24

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2023

Trustees Thaimur Changezi (resigned 19 December 2022)
Matthew Costello
Andrea Smith
Nicole Bien (appointed 19 December 2022)
Company registered
number
06776342
Charity registered
number
1127386
Registered office
Peterson House
Malthouse Avenue
Cardiff Gate
Cardiff
CF23 8GL
Independent auditors
Bishop Fleming LLP
Chartered Accountants
10 Temple Back
Bristol
BS1 6FL
Solicitors
Wither Bergman LLP
16 Old Bailey
London
EC4M 7EG

Page 1

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2023

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 July 2022 to 30 June 2023.

The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The charity has charitable objects that reflect the charitable purposes of the IB. These are the advancement of education by:

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

The Charity works with governments, international philanthropical organisations, and other donors to develop partnerships and initiatives to create a more diverse and inclusive IB community, enabling more students to experience and benefit from an IB education, regardless of personal circumstances.

c. Activities undertaken to achieve objectives

In 2022 and 2023, the Charity continued to focus its activities on progressing its strategic goal by the constant continuation of existing projects with the Japanese government through its Ministry of Education, Culture, Sports, Science, and Technology (MEXT), and the Dual Language Diploma Programme with the Republic of South Korea.

Page 2

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Objectives and activities (CONTINUED)

d. Grant-making policies

The Fund has established its grant making policy to achieve its objects for the public benefit by promoting programmes of education for students at different levels within schools for authorised schools in all countries. We review the grant making policy regularly to ensure that it reflects the charity's objects and thereby advances public benefit.

The Fund invites applications for grants from schools experiencing temporary financial challenges of schools are demonstrably increasing access to IB programmes. More information can be found at http://www.ibo.org/become-an-ib-school/support-services-from-the-ib/ib-grants/.

e. Main activities undertaken to further the Company's purposes for the public benefit

In addition to the activities for the continued partnership with MEXT and the Republic of South Korea, the charity also continued to provide short-term grants for schools experiencing temporary financial challenges or schools that are demonstrably increasing access to the IB programmes.

Achievements and performance

a. Review of activities

The key operational activities for the charity for the year were:

Dual Language Diploma Programme: Japan

Dual Language Diploma Programme: Korea

b. Information on fundraising practices

The Fund's ultimate parent company, International Baccalaureate Organisation, performs fundraising activities on behalf of the Charity. The organisation does not have a fundraising department per se, but has teams within its Schools Office, whose aim it is to increase accessibility to IB programmes. Those teams work with Governments and other philanthropic organisations to create and manage projects to increase the IB footprint within the given jurisdiction.

Page 3

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Achievements and performance (CONTINUED)

c. Investment policy and objectives

The policy which the Trustees will apply in relation to surplus cash is risk averse, in accordance with the policy adopted by the IB. Deposits are maintained as cash or, where Management consider possible, low risk fixed term deposits rather than equities or any other investments that are subject to capital fluctuations. During both 2023 and 2022, no interest was earned on deposits.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The Trustees aim to build up and maintain three reserves in unrestricted funds at a level which equates to approximately three months of unrestricted charitable expenditure. The Trustees consider that this provides sufficient funds to respond to grant applications and incur project spend for a sufficient period in the event of an unexpected decrease in donation income. All governance costs and costs incurred in generating funds are paid for by the IB on behalf of the Charity, and hence the Trustees are able to respond quickly to any changes in donation income. The Trustees will review the situation annually to ensure that the policy adopted by the Trustees protect the Charity from any significant event that would impact on its financial position.

The current level of unrestricted reserves at 30 June 2023, is USD797,264 (2022: USD929,148) all of which can be defined as free reserves. The reserves have arisen due to significant donations which have increased the charities reserves. The Trustees have decided to utilise this over a number of years to maximise the benefit to the recipients of the Charity's funds.

The restricted reserve at 30 June 2023 totalled USD951,350 (2022: USD878,964) and will continue to be utilised in line with the restrictions specified by the donors.

Structure, governance and management

a. Constitution

International Baccalaureate Fund (UK) is a private company limited by guarantee which was registered in the United Kingdom on 18 December 2008, and is governed by its Memorandum and Articles of Association dated 18 December 2008 (that contain an asset lock for charitable purposes, and a bar on distribution of dividends). The company was registered as a Charity on the 6 January 2009.

Page 4

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Structure, governance and management (CONTINUED)

b. Methods of appointment or election of Trustees

Under the Articles of Association, the Trustees of the charity, who act as Directors for the purposes of company law, are appointed by the International Baccalaureate Organisation (“the IB”). The minimum number of Trustees is three; there is no maximum. Current Trustees are listed on page 1. In keeping with the election of fund Trustee requirements as found in the Articles of Association of the IB Fund UK, Trustees are appointed by the members for a term, not exceeding three years. A retiring Trustee may be appointed by the members with no limit on the number of times a Trustee may be re-appointed. No formal provision exists in the Articles of Association for the IB Fund UK regarding the rotation of members. During the year under review, all Trustees of the IB Fund UK were also employees of the IB, including the current Director General.

c. Organisational structure and decision-making policies

The Trustees have delegated the day-to-day management of operations to IB employees appointed as Fund Managers. To facilitate effective operations, the Fund Managers have delegated authority within the terms of the delegation approved by the Trustees for operational matters, including finance, employments and related activities.

d. Policies adopted for the induction and training of Trustees

On joining, Trustees are given a document ‘Introductory Operational Guide for the Board of International Baccalaureate Organisation (UK) Limited’, last updated on the 5 February 2010. In addition, Trustees are invited to Board induction activities for all entities of the IB. On-going training will then be provided in consultation with each Trustee. The Board will review the status of Trustees on an on-going basis and they will recommend the rotation of Trustees as the Board sees fit based on the Board assessment of the organisation changes. None of the Trustees received any remuneration or other benefits from the Charity.

The Donations Policy of the IB governs the acceptance of all gifts that are received by IB Fund UK. All gifts are further reported to the Trustees by management. The above-mentioned governance processes ensure that the activities undertaken by the Charity comply with the purposes of the Charity and meet fiduciary and statutory requirements in the UK. Donation decisions are made by the staff of IB, and are reported to the Trustees during the board meetings

e. Risk management and Internal Control

The Trustees confirm that, on a yearly basis, major risks to which the charity is exposed, as identified by the Trustees, are reviewed, and that systems have been established to manage those risks. This has been done in consultation with the IB, with the activities, an operation of the Charity included as part of a comprehensive risk framework adopted by the IB.

Identified potential risks include the non-compliance with legal & taxation requirements, foreign exchange exposure, individual fund balances in deficit, and IT system failures. Internal controls are designed to provide reasonable, but not absolute, insurance against material, misstatement or loss and include:

Page 5

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Plans for future periods

Current plans are for the continuation of the existing projects for:

Dual Language Diploma Programme: Japan

Dual Language Diploma Programme: Korea

Small companies Note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 41 SA of the Companies Act 2006.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Page 6

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

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

Andrea Smith

Trustee

Date: 24 January 2024

Type text here

Page 7

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERNATIONAL BACCALAUREATE FUND (UK)

OPINION

We have audited the financial statements of International Baccalaureate Fund (UK) (the 'charitable company') for the year ended 30 June 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

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

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 8

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERNATIONAL BACCALAUREATE FUND (UK) (CONTINUED)

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 9

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERNATIONAL BACCALAUREATE FUND (UK) (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011, Charity SORP 2019, FRS 102 and the terms and conditions attaching to material grants received by the Charity. In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or avoid a material penalty. These included data protection regulations, health and safety regulations and employment legislation.

Our procedures to respond to risks identified included the following:

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.

We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and

Page 10

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTERNATIONAL BACCALAUREATE FUND (UK) (CONTINUED)

regulations throughout the audit.

As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in financial statements or non-compliance with regulation, will be detected by us. The risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one off error, as this may involve intentional concealment, forgery, collusion, omission or misrepresentation.

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

USE OF OUR REPORT

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

David Butler FCA DChA Bishop Fleming LLP Chartered Accountants Statutory Auditors 10 Temple Back Bristol BS1 6FL

Date: 31 January 2024

Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 11

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2023

Note
Income from:
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
USD
1,592,397
-
1,592,397
1,520,011
1,520,011
72,386
878,964
72,386
951,350		 Unrestricted
funds
2023
USD
-
72,485
72,485
204,369
204,369
(131,884)
929,148
(131,884)
797,264		 Total
funds
2023
USD
1,592,397
72,485
1,664,882
1,724,380
1,724,380
(59,498)
1,808,112
(59,498)
1,748,614		 Total
funds
2022
USD
1,125,105
-
1,125,105
1,242,777
1,242,777
(117,672)
1,925,784
(117,672)
1,808,112

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 24 form part of these financial statements.

Page 12

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:06776342

BALANCE SHEET AS AT 30 JUNE 2023

2023 2023 2022 2022
Note USD USD
Current Assets
- -
Current assets
Cash at bank and in hand 4,894,287 4,327,660
4,894,287 4,327,660
Creditors: amounts falling due within one
year 9 (642,376) (684,401)
Net current assets 4,251,911 3,643,259
Total assets less current liabilities 4,251,911 3,643,259
Creditors: amounts falling due after more
than one year 10 (2,503,297) (1,835,147)
Net assets excluding pension asset 1,748,614 1,808,112
Total net assets 1,748,614 1,808,112
Charity funds
Restricted funds 11 951,350 878,964
Unrestricted funds 11 797,264 929,148
Total funds 1,748,614 1,808,112

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: Andrea Smith eS Trustee Date: 24 January 2024

The notes on pages 15 to 24 form part of these financial statements.

Page 13

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

Cash flows from operating activities
Net cash provided/(used) in operating activities
Cash flows from investing activities
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 15 to 24 form part of these financial statements		 2023
USD
566,627
-
-
566,627
4,327,660
4,894,287		 2022
USD
(1,309,920)
-
-
(1,309,920)
5,637,580
4,327,660

Page 14

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1. GENERAL INFORMATION

International Baccalaureate Fund (UK) is a private company limited by guarantee registered in England and Wales, company number 6776342 and a registered Charity, charity number 1127386. Its registered office is Perterson House, Malthouse Avenue, Cardiff Gate, Cardiff, CF23 8GL.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

International Baccalaureate Fund (UK) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The presentational currency of the financial statements is USD which is the functional currency of the charity. The financial statements are rounded to the nearest $. The financial information relates to the year ended 30 June 2023 and the comparative information relates to the year ended 30 June 2022.

2.2 GOING CONCERN

The financial statements are prepared on a going concern basis, on the expectation of continued growth in charity donations in the future which lead to the Trustees to consider that there are no material uncertainities about the entity's ability to continue.

2.3 INCOME

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Where there is a clear indication that a donation has been provided on the basis of future activities being carried out, the charity has recognised income on an accruals basis. The donation will first be recorded as a liability on the balance sheet and subsequently released to incoming resources in line with completion of agreed activities.

Donated services are recognised as both income and expenditure in the year to which they relate. The balance relates to the audit and accounts preparation fee being donated by the IB.

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Page 15

INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES (continued)

2.4 EXPENDITURE (CONTINUED)

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

The charity makes grants to schools at the discretion of an IB Grant Selection Committee. Grants payable are charged in the year where the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure where the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.5 TAXATION

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.6 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.7 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

2.8 FINANCIAL INSTRUMENTS

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.9 FUND ACCOUNTING

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

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

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

A key area of judgement in these financial statements is the recognition of income, which requires judgements to be made regarding whether or not there are performance conditions included within the grants being received. This then determines whether income is recognised upfront when received or whether it is deferred and released when the performance conditions are met.

There is also estimation uncertainty regarding the reliability of the estimate of the amount to be received and whether any bad debt provision should be recognised in respect of slow paying grantors.

4. INCOME FROM CHARITABLE ACTIVITIES

MEXT- Japanese Government
Japanese Government
German Government
Republic of South Korea
JF Research Grant
MEXT- Japanese Government
Japanese Government
German Government
Republic of South Korea		 Restricted
funds
2023
USD
31,446
562,738
40,835
635,596
321,782
1,592,397
Restricted
funds
2022
USD
391,025
31,877
27,048
675,155
1,125,105		 Total
funds
2023
USD
31,446
562,738
40,835
635,596
321,782
1,592,397
Total
funds
2022
USD
391,025
31,877
27,048
675,155
1,125,105

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

5. INVESTMENT INCOME

Unrestricted Total Total
funds funds funds
2023 2023 2022
USD USD USD
Investment income 72,485 72,485 -

6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

German Fund
Japanese Dual Language DP
Japanese Grant
South Korean Dual Language DP
Other
IB Grant
JF Research Grant
German Fund
Japanese Dual Language DP
Japanese Grant
South Korean Dual Language DP
Other
IB Grant		 Restricted
funds
2023
Unrestricted
funds
2023
USD
USD
64,654
-
523,538
-
88,131
-
635,596
-
-
4,519
-
199,850
208,092
-
1,520,011
204,369
Restricted
funds
2022
Unrestricted
funds
2022
USD
USD
39,327
-
391,025
-
17,989
-
675,155
-
-
3,166
-
116,115
1,123,496
119,281		 Total
2023
USD
64,654
523,538
88,131
635,596
4,519
199,850
208,092
1,724,380
Total
2022
USD
39,327
391,025
17,989
675,155
3,166
116,115
1,242,777

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

7. AUDITORS' REMUNERATION
2023 2022
USD USD
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 15,250 14,335
Fees payable to the Company's auditor in respect of:
All non-audit services not included above - 1,650

8. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2022 - USDNIL). During the year ended 30 June 2023, no Trustee expenses have been incurred (2022 - USDNIL).

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Amounts owed to group undertakings
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Accruals and deferred income		 2023
USD
642,376
2023
USD
2,503,297		 2022
USD
684,401
2022
USD
1,835,147

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

11. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
General Fund
Designated Fund
IB Grant
RESTRICTED FUNDS
AIM Malaysian Government
German Fund
Japanese Dual Language DP
Japanese Grant
MYP: The Next Chapter
South Korean Dual Language
DP
JF Research Grant
TOTAL OF FUNDS		 Balance at 1
July 2022
USD
789,997
79,383
59,768
929,148
211,597
24,023
-
184,856
445,338
13,150
-
878,964
1,808,112		 Income
USD
72,485
-
-
72,485
-
40,835
562,738
31,446
-
635,596
321,782
1,592,397
1,664,882		 Expenditure
USD
(4,519)
-
(199,850)
(204,369)
-
(64,654)
(523,538)
(88,131)
-
(635,596)
(208,092)
(1,520,011)
(1,724,380)		 Transfers
in/out
USD
(199,850)
-
199,850
-
-
-
-
-
-
-
-
-
-		 Balance at
30 June
2023
USD
658,113
79,383
59,768
797,264
211,597
204
39,200
128,171
445,338
13,150
113,690
951,350
1,748,614

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

11. STATEMENT OF FUNDS (CONTINUED)

Description of funds

General fund comprises the amounts freely available for the charity spend.

Designated Fund comprises amounts transferred from the General Restricted Fund to be spent as decided upon by the trustees.

IB Grant fund is a fund designated by the Trustees to which amounts are transferred from the general fund in order that grants may be awarded to schools.

AIM Malaysian Government This is a fund to support the establishment and development of IB schools in Malayasia. The project has been successfully completed and remaining funds will be used for professional development for qualifying Malaysian schools.

German Fund This is a fund for the development and translation expenses for German as a response language. This fund is considered to be a restricted fund by Trustees and so has been moved from unrestricted funds.

Japanese Dual Language DP This is a donation for the MEXT Japanese government with the goal to translate, teach & assess selected subjects in the IB Diploma Programme in Japanese; to enable schools in Japan to participate in the project; to translate key IB Diploma Programme documents; to build the IB capacity in Japan by growing the number of IB educators, and to train examiners.

Japanese Grant This is a fund for the further development of IB capacity in Japan.

MYP: The Next Chapter This is a fund to support the development of the Middle Year Programme. Management are looking for suitable MYP assessment system developments for this fund.

South Korean Dual Language DP This is a donation for the Republic of South Korea with the goal to translate, teach & assess selected subjects in the IB Diploma Programme in Korean; to enable schools in Korea to participate in the project; to translate key IB Diploma Programme documents; to build the IB capacity in Korea by growing the number of IB educators, and to train examiners.

JF Research Grant To build the foundation for a vision of wellbeing in global education in a postpandemic era, where wellbeing is not only a system reaction to crisis, but the core of the international education ecosystem, with a clear definition and more solid evidence-based approach.

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

11. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

Balance at
Balance at 30 June
1 July 2021 Income Expenditure
2022
USD USD USD
USD
UNRESTRICTED FUNDS
General Fund 909,278 - (3,166)
789,997
Designated Fund 79,383 - - 79,383
IB Grant 59,768 - (116,115)
59,768
1,048,429 - (119,281)
929,148
RESTRICTED FUNDS
AIM Malaysian Government 211,597 - - 211,597
German Fund 36,302 27,048 (39,327)
24,023
Japanese Dual Language DP - 391,025 (391,025)
-
Japanese Grant 170,968 31,877 - 202,845
MYP: The Next Chapter 445,338 - (17,989)
427,349
South Korean Dual Language DP 13,150 675,155 (675,155)
13,150
877,355 1,125,105 (1,123,496)
878,964
TOTAL OF FUNDS 1,925,784 1,125,105 (1,242,777)
1,808,112
ANALYSIS OF NET ASSETS BETWEEN FUNDS
ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
Restricted Unrestricted
Total
funds funds
funds
2023 2023
2023
USD USD
USD
Current assets 4,097,023 797,264
4,894,287
Creditors due within one year (642,376) - (642,376)
Creditors due in more than one year (2,503,297) - (2,503,297)
TOTAL 951,350 797,264
1,748,614

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

12.
ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Restricted
funds
2022
USD
Current assets
929,148
Creditors due within one year
-
Creditors due in more than one year
-
TOTAL
929,148
13.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net expenditure for the year (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Increase/(decrease) in creditors
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
14.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 Unrestricted
funds
2022
Total
funds
2022
USD
USD
3,398,512
4,327,660
(684,401)
(684,401)
(1,835,147)
(1,835,147)
878,964
1,808,112
FROM OPERATING
2023
2022
USD
USD
(59,498)
(117,672)
626,125
(1,192,248)
566,627
(1,309,920)
2023
2022
USD
USD
4,894,287
4,327,660
4,894,287
4,327,660

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INTERNATIONAL BACCALAUREATE FUND (UK) (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

15. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand At 1 July
2022
USD
4,327,660
4,327,660		 Cash flows
USD
566,627
566,627		 At 30 June
2023
USD
4,894,287
4,894,287

16. RELATED PARTY TRANSACTIONS

The Charity’s ultimate parent company is International Baccalaureate Organization (IBO), an independent non-profit-making foundation registered in Switzerland, registered number CHE-107.025.266. It is governed by a Board of Governors. The Board may contain between 9 and 11 members at any one time, currently there are 11. Consolidated financial statements can be obtained from Rue du Pré-de-la-Bichette 1, CH-1202 Genève, Switzerland. IBO is deemed to exercise control as it has the right to appoint or remove a majority of the board of IB Fund (UK).

In his position as Director General of the IB, Olli-Pekka Heinonen attends all the meetings of the Board of Governors of the IB, and sits of the Board of Trustees of the Charity.

The Charity’s Audit and preparation of the year end financial statement fees of USD15,250 (2022: USD14,335 for audit and USD1,690 for preparation of the year end financial statements) are recognised as a donation from the IB.

Grants payable totalling USD642,376 (2022: USD684,401) are due to International Baccalaureate Organization. This entity makes project expense payments on behalf of the Charity which are subsequently reimbursed.

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