2020-08-31-accounts - Eci Schools

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ECI SCHOOLS

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Company No. 08109626 Charity No. 1150171

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

ECI SCHOOLS

Contents	Page
Reference and Administrative details	1
Trustees’ Report	2 - 12
Independent Auditors’ Report	11 – 12
Statement of Financial Activities	13
Balance Sheet	14
Cash Flow Statement	15
Notes to the Financial Statements	16 – 26

ECI SCHOOLS REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2020

Status	The organisation is a charitable company limited by guarantee, incorporated
	on 18 June 2012 and registered as a charity on 13 December 2012.
Governing Document	The company was established under Memorandum and Articles which
	established the objects and powers of the charitable company.
Company Number	08109626
Charity Number	1150171
Registered Office	24 Greville Street, London EC1N 8SS
Trustees	C Charleson Chairman
	J Aarnaes Vice-Chairman
	S Nabholz Treasurer
	M Medved Krajnovic
	A Monga
	N Crush
	D Al Fadhli
	T Kelley
	Dr Christy Brown (appointed 5/5/2020)
	Nisanart Dharmageisirattana (appointed 5/5/2020)
	Pascale Hertay (appointed 5/5/2020)
	K Chohan was appointed as the clerk to the board of Trustees (appointed
	31/03/2020), the Interim CEO of the charitable company (appointed
	25/07/2020), and the charity correspondent.
	K Ruth resigned as CEO and the clerk to the board of Trustees on
	31/03/2020
Bankers	Lloyd’s Bank 3rd Floor, 125 London Wall, London, EC2Y 5AJ
Auditors	Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG
Solicitors	Bates, Wells & Braithwaite LLP, 10 Queen Street Place, London EC4R 1BE
Accountants	JS2 Ltd, One Crown Square, Church Street East, Woking GU21 6HR

ECI SCHOOLS REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their report and the audited financial statements for the year ended 31 August 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Status & History

ECI Schools was incorporated as a company limited by guarantee in England in June 2012, following notice to members of the European Council of International Schools (a 501(c)(3) Delaware corporation) at its November 2011 AGM in Lisbon (Portugal) that the Council would restructure in order to adopt the most advantageous legal status for streamlined and efficient operations in the United Kingdom. The by-laws for the charitable company were passed at the November 2012 AGM for the European Council of International Schools in Nice (France), and the manner of the restructuring was confirmed. ECI Schools was successfully registered with the UK Charity Commission less than one month later, on 13 December 2012. Resolutions to enter into a transfer agreement effective 31 March 2013 were signed by the boards of both ECI Schools and ECIS on 22 March 2013. The transfer agreement admitted all Members of ECIS to membership of the UK charity, and set out the terms of the acquisition of all assets of ECIS by ECI Schools, which will continue to trade as ECIS. ECI School’s constitution is contained in its Memorandum and Articles of Association.

Organisational Structure

ECI School’s board of trustees establishes a framework for the organisation, with the day-to-day operation and management delegated to the CEO Kam Chohan.

There are eleven trustees, who consist of the official representatives of Member Schools; six of whom are elected by the Members (“Elected Trustees”) at a general meeting or via electronic proxy, and three of whom are appointed by the trustees (“Appointed Trustees”).

An Elected Trustee shall retire from office at the third annual general meeting following the annual general meeting at which he or she began service but may stand for re-election for a second three-year term in accordance with any policy which the trustees may decide.

Any trustee may propose (a) candidate(s) for the Appointed Trustees. Appointment of Appointed Trustees shall be by secret ballot and by simple majority of the trustees, with the new Appointed Trustee(s) to be announced to the membership at the ECI Schools annual general meeting (AGM), which is attached to the Leadership Conference. An Appointed Trustee shall serve a 3-year term in office and may be re-appointed for a second 3- year term in accordance with any policy which the trustees may decide.

Trustees are responsible for the management of the charitable company’s business.

All members of the board of trustees give their time voluntarily and receive no benefits from the charitable company, apart from the private benefits that are accorded to all Members.

The ECI Schools board of trustees follows the ECI Schools’ Standards of Conduct and Governance Policies to ensure that trustees fulfil their role according to high ethical standards, and to ensure that those actual or perceived conflicts of interest are properly managed.

Together with the Governance Committee, the Chair of the board of trustees is responsible for the induction of any new trustee which involves awareness of a trustee’s responsibilities, governing document(s), administrative procedures, history, and philosophical approaches of the charitable company. The new trustees receive an induction pack for ECI Schools which includes the Induction Manual (introduction to ECI Schools), Articles of Association, Board Policy Manual, UK Corporate Governance Code, Charity Commission Guidance for Trustees, Declaration of Interest narrative and forms, and copies of the minutes from the two previous board meetings.

ECI SCHOOLS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Sub-Committees and Task Forces

The board of trustees has formed three sub-committees: the Executive Committee, Governance Committee, and Finance Committee. Other sub-committees are formed ad-hoc, as are task forces.

The role of the Executive Committee is to advise the CEO and oversee the functions of the organisation. The Executive Committee consists of the officer positions of Chair, Vice-Chair, and Treasurer of the board of trustees. With the resignation of the CEO, K Ruth in March 2020, K Chohan was brought in as interim CEO and had worked closely with K Ruth on a handover of responsibilities to ensure a smooth transition.

The role of the Governance Committee is, in collaboration with the executive director, to identify individuals whose skills and expertise can positively affect the organisation, as well as to oversee the ongoing education of board members in the practice of charity governance. The Governance Committee consists of up to three members, one of whom should be an officer.

The role of the Finance Committee is to review all finances in collaboration with the senior management team, as well as to consider operational risk and to review the audited accounts.

Remuneration of Key Management

The pay of key management (CEO) and all staff is reviewed annually and normally increased in accordance with average earnings to reflect a cost of living adjustment. In view of the nature of the charity, the pay is benchmarked against pay levels in other charities with principal offices in London.

Risk & Corporate Governance Matters

ECI Schools places strong reliance on the risk analysis and the control environment operated by ECI Schools. In addition, ECI Schools maintains a risk register that details the major risks the organisation faces and identifies the controls in place to mitigate those risks. The register also covers compliance requirements and internal control procedures, as well as investment risk.

The major risks that ECI Schools faces are (1) the failure to renew and recruit membership in order to achieve the membership target and (2) the failure of one or more of its major conferences. Several actions are in place to minimise these risks.

The risk register is kept under review on an on-going basis by the senior management team of ECI Schools and is formally reviewed on at least an annual basis by the board of trustees. It is recognised that a risk management system can only seek to manage, rather than eliminate, factors that impact on the ability to achieve business objectives and can provide only reasonable assurance against material misstatement or loss.

ECIS has a formal risk management process through which the major risks to which the organisation may be exposed and has ranked these by likelihood and impact, culminating in a risk control document which is updated on a regular basis by the senior management team, and shared with the Board of Trustees. All significant risks, together with current mitigation actions, are reviewed regularly throughout the year by the trustees. The trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level.

ECI SCHOOLS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The principal risks and uncertainties identified by the charity are as follows:

Risk	Mitigation
1. Failure to renew and recruit membership in order to achieve the membership target	Annual membership plan with targets, scheduled debtor follow-up, weekly reporting. Continuous improvement of membership offer.
2. Failure of key conferences	Risk has been mitigated by no expensive hotel contracts. As delivery is all virtual, expenses are substantially lower.
3. Disruption of business due to event (geopolitical, natural, cyber, etc.)	Disaster recovery and business continuity plan in place
4. Membership and/or funding loss due to our affiliative relationship with US State Department, and any geopolitical consequences of US actions around the world.	Clarification of our relationship with the US State Department (affiliation only, for educational funding purposes); This relationship has been galvanised this year by inviting Christy Brown to join the ECIS board

Covid-19

As a result of the worldwide outbreak coronavirus (Covid-19) pandemic the CEO put in place contingency measures to try and minimise the impact on the Charity and Group. The priority was to keep staff safe so ECIS quickly moved to set up staff to be able to work remotely before the Government imposed a lockdown. This has continued and staff are still working from home and this is likely to continue until April 2021. All events are virtual and will continue to be so for 2021. This has been successful and proved that ECIS has the capability to adapt quickly and meet their customers’ needs in what continues to be a fast changing and unprecedented time. The CEO meets regularly and keeps the finance committee and board up to date. During this difficult period for schools ECIS have provided webinars and kept in touch with schools providing PD in a new format, including Admissions Week, Virtual Middle Leader Courses, regular meetings with schools.

Professional Indemnity Insurance

Professional indemnity insurance provides insurance cover for charity trustees against claims that may arise from their legitimate actions as trustees. As a matter of law, charities require authority to purchase this type of insurance. In the case of ECI Schools, that authority is obtained from its governing document, the articles of association.

Trustees’ Responsibilities in the Preparation of Financial Statements

The trustees, who are also the directors of ECI Schools for the purposes of company law, are responsible for preparing the trustees’ annual 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 which give a true and fair view of the state of affairs of the charitable company and group, and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

ECI SCHOOLS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with Companies Acts 2006. They are also responsible for safeguarding the assets of the charitable company and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from the legislation in other jurisdictions.

OBJECTIVES AND ACTIVITIES

Charitable Objectives

The charitable objectives for which the charitable company was established are set down in the governing document as follows:

The advancement of education for the public benefit, in particular but not exclusively, by promoting and facilitating best practice and high standards in teaching and international education.

Charitable Activities

ECI Schools has referred to the guidance contained in the Charity Commission’s guidance on public benefit when reviewing its aims and objectives in planning future activities. In particular, trustees consider that planned activities contribute to the overall aims and objectives of the charitable company.

ECI Schools will continue to focus the aims of ECI Schools in order to build and widen the membership base, increase member satisfaction, and increase the offerings available to Members.

Key activities will focus on recruiting new Members, retaining existing Members, expanding and improving the services offered to existing and potential Members, whilst nurturing Members’ involvement with professional learning in both digital and in-person formats.

Our main activities and whom we aim to help are described below in the section of this report on Achievements and Performance. All our activities focus on supporting our mission and charitable objective for the advancement of international education and are undertaken to further our charitable purpose for the public benefit.

Public Benefit

The trustees have taken the Charity Commission’s specific guidance on public benefit (contained within the document “The Advancement of Education for the Public Benefit”) into consideration in preparing their statements on public benefit contained within this trustees’ annual report.

Benefits & Beneficiaries

In accordance with its charitable objectives, the charitable company aims to transform lives through international education. All our charitable activities focus on enabling this transformation through professional learning, research, advisory, advocacy, and funding programmes (grants, fellowships).

The charitable company’s primary beneficiaries are therefore its member schools (425 member schools, 35,000+ teachers, 290,000+ students), as well as the full community of international schools (11,000+ schools; 500,000+ teachers, administrators, and governors; and 5+ million pupils), as identified by ISC Research (2019), many of whom access ECIS products and services as non-members.

In return for providing financial support, Members receive many benefits in the form of child protection and governance training (online), reduced pricing for ECI Schools conferences and services, as well as funding (grants and fellowships).

ECI SCHOOLS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Trustees’ Assessment of Public Benefit

In order to determine whether the charity has fulfilled its charitable objectives for public benefit, the trustees gather evidence of the success of the charitable company’s activities.

Grant Making Policy

ECIS University Scholarship (Bursary)

The ECIS University Scholarship provides up to £10,000 for first-year university studies anywhere in the world and is available to students (graduates/leavers) from Level 3 member schools, who must submit an application and be evaluated (and selected) by the Selection Committee. The award is up to £10,000 awarded to the successful candidate, and paid directly to the university, subject to university confirmation of enrolment, accompanied by a fees invoice.

ECIS Research Fellowship

The research fellowship is a grant that provides recognition and financial incentives to a recipient for their work toward the advancement of international education via an academic route. A stipend of up to £5,000 is available, following successful application and selection.

Relationships with Related Parties

ECI Schools is related to the European Council of International Schools, Inc. (known as “ECIS Inc.”, DBA – Doing Business As – Educational Collaborative for International Schools), a company incorporated in the State of Delaware in the United States of America and registered as a foreign company with Companies House in the United Kingdom under company number FC008297.

ECIS, Inc is a 100% subsidiary undertaking of ECI Schools, and the members of the board of directors of ECIS are the members of the board of trustees of ECI Schools.

The purpose of the subsidiary is to transform lives through international education. The subsidiary is exclusively educational and scientific in character. It is also non-profit orientated, with no part of its net income to benefit any private shareholders.

Representation on Other Bodies

The Executive Director of ECI Schools is a member of the advisory board for the NEOM project in Saudi Arabia; the founding member of the International Task Force on Child Protection.

ACHIEVEMENTS AND PERFORMANCE

Review of Activities FY20

Conferences (Events)

Prior to the global crisis ECIS had hosted a Student Support conference in Luxembourg that had sold out in October 2019 and an Admissions Conference in Nice. Due to the global pandemic, we switched from our faceto-face conference in Madrid in 2020 to an online virtual conference, with over 900 delegates attending. In May 2020, we delivered our first virtual Early Childhood conference, with over 500 delegates. We quickly realised that a more flexible approach was necessary, and many of our schools wanted to attend sessions spread over a longer period of time rather than try to attend a full 2-day conference online. So, we pivoted again, and offered Admission Month in October 2021. In 2021 we will be offering our Multilingual Learning in International Education (MLIE) conference over a week, and our very popular Physical Education conference over a month. We understand and see the evidence of online fatigue and wish to provide the PD our schools need in a format suited to the current pressures being faced.

International Teacher Certificate (ITC)

This certificate is now fully revised and relaunched and offered as part of the membership package for L2 and L3 school members.

ECI SCHOOLS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENTS AND PERFORMANCE (continued)

Middle Leader Certificate (MLC)

The MLC provides training in six areas specific to the formation of middle leaders: culture of leadership, building and leading teams, curricular design and leadership, assessment and leadership, leading professional learning, and managing finances and resources. Participants have up to two years to complete four of the six courses, with one compulsory course (Culture of Leadership), in order to receive the certificate. Since the launch of these courses 546 participants have completed. Before the lockdown we delivered 4 courses face to face. We will in January be relaunching the courses as a virtual learning opportunity, we have 2 bookings already. This course series is sustainable, given the constant need to train and develop middle leaders, especially with an eye to future school leaders.

Total registrations (all courses and conferences) for FY20: 8,394

Collaboration - Organisations and Educational Associations

ECI Schools believe that collaboration with other organisations and educational associations encourages sharing of knowledge and discussion of effective practices in education. We networked extensively with other like-minded organisations including, but not limited to:

Council of International Schools
Middle States Association of Schools & Colleges
New England Association of Schools & Colleges
Western Association of Schools & Colleges
The College Board
Association for the Advancement of International Education
International Baccalaureate
Duke of Edinburgh International Award
Academy of International School Heads
International Schools Services
East Asia Regional Council of Overseas Schools
Central and Eastern European Schools Association
Mediterranean Association of International Schools
Near East South Asia Council of Overseas Schools
Association of American Schools in South America
Tri-Association (Central America, Colombia, Caribbean, Mexico)
The Association of International Schools of India
Nordic Network
Alliance for International Education
Swiss Group of International Schools
Association of German International Schools
Dutch International Secondary Schools
Dutch International Primary Schools
National Association of Independent Schools
Council of British International Schools
Friends Council on Education
Canadian Accredited Independent Schools

Publications

Online ‘Insightful’ magazine, 42,000+ contacts in digital form. We are enjoying quality submissions to this publication.

ECIS Smart Brief , a weekly digital news brief with articles relating to educational topics worldwide, continues to be well-read. Typical readership is 9,000+ per week.

ECI SCHOOLS

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

INDICATORS, MILESTONES & BENCHMARKS

The ECIS Board of Trustees completed a Strategy Retreat at the beginning of FY20 (October 2019) to identify key indicators and associated responsibilities for FY20 and beyond. We will also offer a survey to the membership, relative to our value proposition, to ensure that we are offering what the membership find to be of value. We have cut costs and ECIS continues to attract new members and training continues to sell regardless of the global crisis being faced.

FINANCIAL REVIEW

Financial Outcome of Activities & Events

For FY20, ECI Schools, together with its subsidiary ECIS Inc, took in revenues of £1,438,602 (2019: £1,787,094 and had expenses of £1,388,315 (2019: £1,906,861) resulting in a surplus of £50,287 (2019: £119,767 deficit).

Membership growth of £90,570 with 43 new members coming on board
The robust controls in place meant that there were no cashflow issues even with the cancellation or move to online of various conferences
Child Protection Online Course sales £17,924
Virtual Leadership Conference income £158,946 with over 900 virtual delegates
Admissions Conference in Nice income £53,791 with 102 delegates
Student Support Conference in Luxembourg income £59,964, 162 delegates. Conference was sold out.
• Virtual Childhood Conference income £56,687 with over 500 delegates

With guidance from JS2, our accountants since late summer 2018 the trustees and senior management team have instituted a number of enhanced internal controls and put into place robust budgetary monitoring systems, among other actions. We have analysed any and all risk elements, and have mitigated against risk, going forward, in significant ways that make us feel appropriately confident about the future.

Trustees have reviewed Cash Flow and budgets, going forward, and feel that the organisation remains a going concern. This is due to the measures put in place for all contracts to be reviewed and agreed by SLT and board members, accountability for events team around any overspends, events team cannot sanction payments without Deputy CEO full agreement. The robust measures are in place for review of all expenses. Deviation from the budget for expenses will not be permitted. The robust structure can be demonstrated as a surplus was made for FY20 in comparison to the deficit made in FY19 and a further surplus is forecast for FY21.

Reserves Policy

ECI Schools total funds as at 31 August 2020 totalled a positive of £19,779 (2019: negative reserves of £30,508). All funds as at 31 August were unrestricted. Excluding amounts tied up in tangible fixed assets, unrestricted funds were a positive of £10,487 (2019: negative reserves of £42,671).

ECI Schools policy is to maintain free reserves of four (4) months of operating costs. Free reserves are unrestricted, undesignated funds not tied up in fixed assets. The Board of Trustees reviews the reserves annually. With the improved financial performance through FY20, the continued goal for FY21-22 is to rebuild cash reserves, with the robust controls and monitoring systems now in place.

Given the negative reserves position at the end of FY19, the target was to eliminate the negative position and finish FY20 with minimum positive reserves (including amounts tied up in tangible fixed assets) of £10,000, due to a forecast £40,000 surplus for the year which has been met and exceeded. Building on, the next objective is to attain the equivalent of one month’s operating costs (payroll and general overheads), or £92,000. Our current financial modelling, based on similar budgets to FY20, projects the attainment of that figure in FY21 operations. It should be noted that, during FY21, the Finance Committee will engage in further modelling, informed by additional revenue generation opportunities we are already working on, with the objective of returning to our policy level of four months of operating costs, or £368,000, no later than FY24. Central to our modelling is the rigorous containment of events costs, which is where the majority of our risk lies, therefore necessitating enhanced risk management methodology, as well.

ECI SCHOOLS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW (continued)

Investments Policy

ECI Schools is reliant on membership subscriptions and fees for its learning and development products, services, and activities. Any investment assets are held as reserves. Investment is concentrated in real assets (cash). These real assets (cash) are held to provide financial security and liquidity, in case of requirement at short notice.

Our reserves are held with Lloyd’s in FY20. Our policy allows for investment in other assets, though since 2013, the Charity has maintained a strictly liquid position, and has no plans to alter this in the immediate future.

FUNDRAISING

We are mindful of the code issued by the Fundraising regulator. We did not use any third parties in our fundraising activities and no complaints were received in the year.

PLANS FOR FUTURE PERIODS

We are now seen as market leaders for Child Protection training and plan to partner with NEASC who already recognise our Child Protection training, they will recommend ECIS training if necessary, during schools accreditations visits. We are also working with ICMEC delivering specialised training to our schools, this has been oversubscribed for every session

We began to realise the full effects of this membership shift during FY19, with an uptick in overall membership. Membership continues to grow, The Trustees believe these to be excellent indicators of future growth and stability. The new CEO Kam Chohan has a strong business and educational background.

COVID 19 posed a significant threat to ECIS. ECIS, very quickly, responded by implementing a virtual conference platform and switched to an online conference; all other associations have cancelled conferences. ECIS was, therefore, able to serve its target clients whilst reducing the exposure to COVID 19. We have successfully completed our Annual Leadership Conference and Early Childhood conference, the virtual conferences were well attended, initial feedback has been extremely positive. The virtual ticket including registration for entire teams and sixty days access to the conference, this has proved popular with schools. The profit improved as virtual conference are significantly cheaper to run.

In view of the virtual conference, moving forward we will be moving to a model of more virtual conferences, we will work to eliminate the risk in our events vertical.

There will be a focus on membership growth, the new membership and partnerships are proving popular and the board are also helping with selling to their networks, the previous 2 years membership sales have been the highest recorded in ECIS history.

The plans for the European Council of International Schools, Inc a subsidiary of ECIS is for the company to be made dormant as there will be no activity going through it after the year end and therefore the decision may be to close it down in the near future.

Our Presence in the International Schools Sector

The period through 2021 is likely to continue to present economic and political challenges, but also presents new opportunities, perhaps outside of our more traditional markets, for learning products and services. Central and South America, for example, represent an important opportunity for ECIS, given our Spanish-language products, such as Child Protection training. The Middle East and Southeast Asia also represent strong opportunities for us. The continued wrangling over Brexit contributes to uncertainty around the strength of the Pound Sterling, and so we must be mindful of the role that Foreign Exchange rates (F/X rates) will play in our financial forecasts and models, going forward (we have accounts in Euro and USD, as well).

The Charity has now reviewed its business model around conferences and made significant adjustments. We stated last year that we expected our events/conferences portfolio to look different within the next two to three years, and that has come to pass in FY20.

ECI SCHOOLS

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

PLANS FOR FUTURE PERIODS (continued)

We anticipate further growth in our digital courses and have planned to increase the number of offerings available from FY21 onward, annually.

Additionally, we will be re-launching our consultancy services (put on hiatus in 2015-16), with a highly-structured and risk-managed approach, and this offering will enhance our services available to the sector. It will be called ECIS Global Advisory in partnership with EnRusk.

Statement as to Disclosure of Information to the Auditor

The Trustees at the date of approval of this annual report confirm that, so far as each of them is aware, there is no relevant audit information of which the charity’s auditor is unaware, and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

This report was approved by the Trustees on 19th January 2021 and signed on their behalf by:

................................. Trustee

C Charleson, Chair, ECIS Board of Trustees

INDEPENDENT AUDIT REPORT FOR THE MEMBERS OF ECI SCHOOLS FOR THE YEAR ENDED 31 AUGUST 2020

Opinion

We have audited the financial statements of ECI Schools for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Balance Sheet, Consolidated Cash Flow Statement and notes to the financial statements, 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:

give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 August 2020 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 4, 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 group’s and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 auditor’s 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.

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 auditor’s report.

Emphasis of matter

We draw attention to Note 2 on page 16 of the financial statements which discloses the premise upon which the charity has prepared its financial statements by applying the going concern assumption. Our audit opinion is not modified in respect of this matter.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

INDEPENDENT AUDIT REPORT FOR THE MEMBERS OF ECI SCHOOLS FOR THE YEAR ENDED 31 AUGUST 2020

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group or the parent charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent charitable company; or
the charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
the directors were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Use of this report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kathryn Burton (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date: 29 January 2021

ECI SCHOOLS

Company No: 08109626

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(including consolidated income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2020

		Total	Total
		2020	2019
	Notes	£	£
INCOME FROM:
Charitable activities
Advancement of education	3	1,426,299	1,786,019
Other trading activities	9	12,303	1,075
		---------------------	---------------------
Total income		1,438,602	1,787,094
EXPENDITURE FROM:
Charitable activities
Advancement of education	4	1,379,392	1,874,806
Trading costs	9	8,923	32,055
		---------------------	---------------------
Total expenditure		1,388,315	1,906,861
Net expenditure	8	50,287	(119,767)
		--------------------	--------------------
Net movement in funds		50,287	(119,767)
RECONCILIATION OF FUNDS
Funds brought forward		(30,508)	89,259
		-----------------------	-----------------------
Funds at 31 August 2020		19,779	(30,508)
		===========	===========

The notes on pages 16-26 form part of these financial statements.

The statement of financial activities includes all gains and losses recognised in the year.

All funds in both years are unrestricted.

All activities noted above were from continued operations.

ECI SCHOOLS BALANCE SHEET

Company No: 08109626

AT 31 AUGUST 2020

		2020	2020	2019	2019
	Notes	Group	Charity	Group	Charity
		£	£	£	£
FIXED ASSETS
Tangible assets	11	9,292	9,292	12,163	12,163
CURRENT ASSETS
Debtors	12	447,462	444,410	494,619	552,969
Short term deposits and cash in hand		441,438	438,473	370,611	309,624
		------------------------	------------------------	------------------------	------------------------
		888,900	882,883	865,230	862,593
CURRENT LIABILITIES
CREDITORS: amounts falling due
within one year	13	(878,413)	(878,413)	(907,901)	(907,901)
		------------------------	---------------------	------------------------	---------------------
NET CURRENT ASSETS		10,487	4,470	(42,671)	(45,308)
		----------------------	----------------------	----------------------	----------------------
NET ASSETS		19,779	13,762	(30,508)	(33,145)
		==========	==========	==========	==========
FUNDS
Unrestricted funds
General funds	17	19,779	13,762	(30,508)	(33,145)
		----------------------	----------------------	----------------------	----------------------
TOTAL FUNDS		19,779	13,762	(30,508)	(33,145)
		==========	==========	==========	==========

The surplus of the parent Charity for the year was £46,907 (2019: £88,787 deficit).

Approved by the Trustees and authorised for their issue on 19th January 2021 and signed on their behalf by:

................................. Trustee

C Charleson, Chair, ECIS Board of Trustees

The notes on pages 16-26 form part of these financial statements.

ECI SCHOOLS

Company No: 08109626

CONSOLIDATED STATEMENT OF CASH FLOWS

AT 31 AUGUST 2020

		2020	2019
	Note	Group	Group
		£	£
Cash flows from operating activities:
Net cash provided by/(used in) operating	19	70,827	61,618
activities
		----------------------	----------------------
Change in cash and cash equivalents in		70,827	61,618
the reporting period
Cash and cash equivalents at the
beginning of the reporting period		370,611	308,993
		----------------------	----------------------
TOTAL CASH AND CASH EQUIVALENTS
AT THE END OF THE YEAR	20	441,438	370,611
		==========	==========

The notes on pages 16-26 form part of these financial statements

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. GENERAL INFORMATION

The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 08109626) and a charity registered in England and Wales (charity number: 1150171). The Charity’s registered office address is 24 Greville Street, London, EC1N 8SS.

2. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)) Second Edition effective 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

ECI Schools 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 note(s).

Preparation of accounts on a going concern basis

At 31[st] August 2020, the charity has unrestricted funds totalling £19,779 having made a surplus in the year of £50,287. The accounts have been prepared on a going concern which the Trustees believe to be appropriate on the basis of their review of budgets and cash flow forecasts prepared for a period of 12 months from the date these accounts were approved. The Trustees have agreed appropriate steps to monitor the ongoing financial position of the charity, under its revised strategy, will be able to start to rebuild reserves over the next 3 to 4 years.

ECI Schools had funds at the year end of £13,762 (Group £19,779) and has positive cash balances of £438,473 (Group £441,438). The accounts have been prepared on a going concern basis as the Trustees believe it to be appropriate as the charity has implemented a number of cost savings and reworked its strategy and on the basis of its forecasted income and expenditure and cashflow income for the period to June 2022, it is comfortable that it will continue to build up reserves and remain in this position and have positive cashflows so that it is able to meet its liabilities as they fall due.

As a result of the worldwide outbreak coronavirus (Covid-19) pandemic that occurred in the year the senior management team (SMT) put in place contingency measures to try and minimise the impact on the Charity and Group. The priority was to keep staff safe so ECIS quickly moved to set up staff to be able to work remotely before the Government imposed a lockdown. ECIS had a number of events that were due to take place in Europe with 500 registered delegates attending training and events and so it acted quickly to implement a virtual conference platform and switch some events to online only and postpone others to later dates, whilst other similar associations cancelled their conferences entirely. Our SMT worked hard to try to reduce the impact by staying in regular contact with schools, attendees and the venues to prevent a large number of cancellations, promoting the additional benefits that would be on offer as a result of the conferences being virtual. This was a great success and proved that ECIS has the capability to adapt quickly and meet their customers’ needs in what was a fast changing and unprecedented time.

ECIS has gone through a major restructure and is on target to rebuild reserves. We have restructured the HR vertical in line with business needs and future plans with the SLT reduced to one person.

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

The events vertical has also been redesigned to eliminate high cost venues but instead run conferences at member school sites. Membership has become a main focus and new membership acquisitions is tracking very well. These are the figures for the last 18 months, even with a global recession we are growing rapidly.

Year	NumberofSchools	Income
1/9/2019 – 31/8/2020	43	£90,570
1/9/2020– 1/1/2021	20	£58,554

Group financial statements

The financial statements consolidate the results of activities of both ECI Schools and its wholly owned subsidiary undertaking, European Council of International Schools, Inc. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The surplus of the parent charity was £46,907 (2019: £88,787 deficit).

Significant judgments and sources estimation uncertainty

In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. The Trustees consider the following item to be an area subject to estimation and judgement:

Depreciation:

The useful economic lives of tangible fixed assets are based on management’s judgement and experience. When management identifies that the useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted retrospectively.

Although tangible fixed assists are significant, variances between actual and estimated useful economic lives will not have a material impact on the operating results. Historically, no changes have been required.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Income recognition

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

Membership income is only recognised when the invoice is paid and so will be deferred until such time that it is paid or deemed to be a bad debt.

Events income is recognised when the event occurs and as such any income received before is deferred until that time.

Income from charitable activities

Income from charitable activities is recognised as earned as the related services are provided. Income from other trading activities is recognised as earned as the related goods are provided.

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognized when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Investment income

Investment income is recognised on an accruals basis once the amounts can be measured reliably.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity heading:

• Advancement of Education

Grants payable are payments made to third parties. They are accounted for when the Trustees have agreed to pay the grant.

Support costs have been allocated between governance costs and other support costs. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice.

Governance and support costs have been apportioned between all activities based on staff costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Operating leases

Rental charges are charged on a straight line basis over the life of the lease.

Fixed assets

Fixed assets are stated at cost or deemed cost (donated valuation at estimated fair value) less accumulated depreciation and impairment losses.

Depreciation is calculated to write off the costs of the fixed asset by equal instalments as follows, all straight line:

Furniture, fittings and equipment

over 3 to 10 years straight line

Financial instruments

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

Debtors and creditors

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure.

Funds

General funds comprise the accumulated surplus or deficit from the Statement of Financial Activities which is not restricted nor designated funds. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

Designated funds comprise funds that have been set aside at the discretion of the Trustees for specific purposes. The purpose and use of the designated unrestricted funds are set out in the notes to the accounts.

Restricted income funds comprise unexpended balances of donations and grants held in trust to be applied for specific purposes.

Employee benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Pension scheme

ECI Schools operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of ECI Schools in an independently administered fund. The pensions costs charged in the financial statements represent the contributions payable during the year.

Foreign currency translation

The charities functional and presentation currency is pound sterling. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the Statement of Financial Activities.

Legal status

ECI Schools is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

3. INCOME FROM CHARITABLE ACTIVITIES

	2020	2019
	£	£
Membership fees	777,721	702,092
Conferences	393,547	760,288
Consultancy services	23,105	50,150
Grant income	220,778	213,769
Other direct activity income	11,149	59,720
	---------------------	---------------------
	1,426,300	1,786,019
	==========	==========

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

4. EXPENDITURE ON CHARITABLE ACTIVITIES

2020	Direct	Other	Grants	Support	2020
	Staff costs	Costs	payable	costs	Total
	£	£	£	£	£
Learning	590,399	410,258	-	256,821	1,257,478
Research	32,983	-	-	14,348	47,331
Advocacy	32,983	842	-	14,347	48,172
Funding	3,298	12,428	9,250	1,435	26,411
	----------------------	----------------------	----------------------	----------------------	----------------------
	659,663	423,528	9,250	286,951	1,379,392
	==========	==========	==========	=========	=========
2019	Direct	Other	Grants	Support	2019
	Staff costs	Costs	payable	costs	Total
	£	£	£	£	£
Learning	635,008	836,288	-	263,164	1,734,460
Research	35,475	-	-	14,702	50,177
Advocacy	35,475	1,495	-	14,702	51,672
Funding	3,548	33,479	-	1,470	38,497
	----------------------	----------------------	----------------------	----------------------	----------------------
	709,506	871,262	-	294,038	1,874,806
	==========	==========	==========	==========	==========

Direct staff costs include a recharge from European Council of International Schools, Inc of £302,891 (2019: £47,828) which do not form part of staff costs as shown in note 10.

5. GRANTS PAYABLE

Grants paid to institutions in the year ended 31 August 2020 include:


Grants paid to institutions in the year ended 31 August 2020 include:	2020	2019
	Total	Total
	£	£
Royal Holloway University of London - Tuition Fee UG FT	9,250	-
	---------------------	---------------------
	9,250	-
	==========	==========
No grants were paid to individuals (2019: none)

6. SUPPORT COSTS

2020					2020
	Learning	Research	Advocacy	Funding	Total
	£	£	£	£	£
Governance	83,651	4,673	4,673	467	93,464
Building	26,482	1,479	1,479	148	29,588
Office	106,256	5,936	5,936	594	118,722
Professional	9,398	525	525	53	10,501
Other	31,034	1,735	1,734	173	34,676
	----------------------	----------------------	----------------------	----------------------	----------------------
	256,821	14,348	14,347	1,435	286,951
	==========	==========	==========	==========	==========

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

6. SUPPORT COSTS (continued)

7.

8.

2019					2019
	Learning	Research	Advocacy	Funding	Total
	£	£	£	£	£
Governance	72,013	4,023	4,023	402	80,461
Building	27,428	1,532	1,532	153	30,645
Office	100,841	5,634	5,634	563	112,672
Professional	28,533	1,594	1,594	159	31,880
Other	34,349	1,919	1,919	193	38,380
	----------------------	----------------------	----------------------	----------------------	----------------------
	263,164	14,702	14,702	1,470	294,038
	==========	==========	==========	==========	==========
GOVERNANCE COSTS INCLUDE:
				2020	2019
				£	£
Audit and accountancy fees				59,700	57,625
Trustee expenses				12,903	8,526
Other costs				20,861	14,311
				---------------------	---------------------
				93,464	80,462
				==========	==========
NET EXPENDITURE FOR THE YEAR:
				2020	2019
				£	£
This is stated after charging/crediting
Auditors remuneration (excluding VAT):
Audit				12,500	11,500
Other services				750	575
Under-accrual re. prior year				5,040	-
Expenses reimbursed to Trustees				12,903	8,526
Operating leases:				26,756	28,256
Depreciation				2,871	4,412
				=========	=========

In 2019/20 no Trustee received any remuneration or pension. (2019: none)

6 Trustees were either reimbursed or expenses were paid on their behalf of £12,902 principally on travel to the main conferences held during the year. (2019: 6 Trustees were either reimbursed or expenses were paid on their behalf of £8,526).

Trustee Indemnity insurance was taken out at a cost of £1,239 (2019: £984).

9. SUBSIDIARY

ECI Schools is related to the European Council of International Schools, Inc (known as “ECIS”), a company incorporated in the State of Delaware in the United States of America and registered as a foreign company with Companies House in the United Kingdom under company number FC008297. ECIS is a 100% subsidiary undertaking of ECI Schools and the members of the board of directors of ECIS are the members of the board of Trustees of ECI Schools.

The purpose of the subsidiary is to be the leading collaborative global network, promoting and supporting the ideas and best practices of international education. The subsidiary is exclusively educational and scientific in character. It is also non-profit orientated, with no part of its net income giving rise to a benefit to any private shareholder.

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

9. SUBSIDIARY (continued)

Annual financial statements for this subsidiary company are filed with the Registrar of Companies for England and Wales and are publicly available. The accounting reference date of the subsidiary is 30th June. The subsidiaries results for the 12 months to 30 June are shown below:

	2020	2019
	£	£
Turnover	357,329	1,075
Administration expenses	(353,949)	(32,056)
	---------------------	---------------------
Profit / (Loss) for the year	3,380	(30,981)
	=========	=========
Current assets	6,017	71,233
Current liabilities	-	(68,595)
	---------------------	---------------------
Total assets	6,017	2,638
	=========	=========
Retained earnings b/fwd.	2,637	33,618
	---------------------	---------------------
Retained earnings c/fwd.	6,017	2,637
	=========	=========

The amounts owed to ECI Schools at 31 August 2020 was £Nil (2019: £73,174).

10.

STAFF COSTS AND NUMBERS
	2020	2019
	£	£
Staff costs were as follows:
Salaries and wages	302,946	551,573
Social security costs	31,052	73,723
Pension contributions	17,947	25,849
Healthcare costs	4,827	10,533
	---------------------	---------------------
	356,772	661,678
	==========	==========
	2020	2019
	Number	Number
The number of employees whose emoluments for the
year fell within the following bands were:
£60,001 - £70,000	-	1
£70,001 - £80,000	-	1
£80,001 - £90,000	2	-
£210,001 - £220,000	-	1
	=========	=========

Employer pensions for employees whose emoluments were above £60,000 were £8,000 (2019: £13,912).

The total employee benefits of the key management personnel of the Group which includes the Trustees who were not remunerated during the year and the senior management team were £189,451 (2019: £414,730).

ECI SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

10. STAFF COSTS AND NUMBERS (continued)

	2020	2019
	Number	Number
The average number of employees based on head count during
the year was as follows:
Charitable activities	4	5
Support	2	4
	---------------------	---------------------
	6	9
	==========	==========

11. FIXED ASSETS (GROUP AND CHARITY)

FIXED ASSETS (GROUP AND CHARITY)
	Total Furniture,
	fittings &
	Equipment
	£
Cost
At 1 September 2019	89,528
Additions	-
Disposals	(58,909)
	---------------------
Balance at 31 August 2020	30,619
	---------------------
Accumulated depreciation
At 1 September 2019	77,365
Charge for the year	2,871
Disposals	(58,909)
	---------------------
Balance at 31 August 2020	21,327
	---------------------
Net Book Value
Carried forward at 31 August 2020	9,292
	=========
Brought forward at 1 September 2019	12,163
	=========

12. DEBTORS: amounts falling due within one year

		2020		2019
	Group	Charity	Group	Charity
	£	£	£	£
Trade debtors	362,831	362,831	317,860	307,615
Amounts due from European Council of	-	-	-	73,174
International schools, Inc.
Other debtors	39,725	36,673	91,359	86,780
Prepayments and accrued income	44,906	44,906	85,400	85,400
	---------------------	---------------------	---------------------	---------------------
	447,462	444,410	494,619	552,969
	==========	==========	==========	==========

ECI SCHOOLS

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

13. CREDITORS: amounts falling due within one year

			2020	2019	2019
		Group	Charity	Group	Charity
		£	£	£	£
	Trade creditors	75,571	75,571	47,809	47,809
	Other Taxation and Social Security	7,631	7,631	9,715	9,715
	Other creditors	4,471	4,471	18,555	18,555
	Accruals	21,931	21,931	23,856	23,856
	Deferred income (see note 14)	768,809	768,809	807,966	807,966
		---------------------	---------------------	---------------------	---------------------
		878,413	878,413	907,901	907,901
		==========	==========	==========	==========
14.	ANALYSIS OF DEFERRED INCOME
				2020	2019
	Group and Charity			£	£
	Deferred income at 1 September			807,966	772,345
	Applied during the year			768,809	807,966
	Released during the year			(807,966)	(772,345)
				---------------------	---------------------
	Deferred income at 31 August			768,809	807,966
				==========	==========

Deferred income includes membership income for future financial years totalling £729,448 and income is deferred because it relates to the membership periods from 01 September 2020 – 31 August 2022.

15. OPERATING LEASE COMMITMENTS - CHARITY AND GROUP

As at 31 August 2020 the charity had annual commitments under non-cancellable operating leases as follows:

	Equipment	Equipment		Land and	buildings
	2020	2019		2020	2019
	£’000	£’000		£’000	£’000
Leases which expire:
Within one year	-	3,561		18,600	25,920
Within two to five years	-		-	-	-
	=========	=========		=========	=========

16. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS


	General	Total	General	Total
	Funds	Funds	Funds	Funds
	£	£	£	£
Fixed assets	9,292	9,292	12,163	12,163
Current assets	888,900	888,900	865,230	865,230
Current liabilities	(878,413)	(878,413)	(907,901)	(907,901)
	---------------------	---------------------	---------------------	---------------------
Net assets at 31 August	19,779	19,779	(30,508)	(30,508)
	==========	==========	==========	==========

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

17. STATEMENT OF FUNDS

	Balance				Balance
1	September				31 August
	2019	Income	Expenditure	Transfers	2020
	£	£	£	£	£
General funds	(30,508)	1,438,602	(1,388,315)	-	19,779
	----------------------	----------------------	----------------------	----------------------	----------------------
Charity & Group total	(30,508)	1,438,602	(1,388,315)	-	19,779
	==========	==========	==========	==========	==========
STATEMENT OF FUNDS (Prior year)
	Balance				Balance
1	September				31 August
	2018	Income	Expenditure	Transfers	2019
	£	£	£	£	£
General funds	89,259	1,787,094	(1,906,861)	-	(30,508)
	----------------------	----------------------	----------------------	----------------------	----------------------
Charity & Group total	89,259	1,787,094	(1,906,861)	-	(30,508)
	==========	==========	==========	==========	==========
TAXATION
The charity is exempt from	corporation tax	as all its income is charitable		and is applied for	charitable
purpose. The charity is not	exempt from VAT which is included with the expenses to which it relates on
the Statement of Financial Activities.
RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM OPERATING ACTIVITIES
				2020	2019
				Group	Group
				£	£
Net (expenditure) for the reporting period				50,287	(119,767)
(as per the Statement of Financial Activities)
Add back depreciation charge				2,871	4,412
Decrease in debtors				47,157	276,522
(Decrease)/Increase in creditors				(29,488)	(99,549)
				----------------------	----------------------
Net cash/(used in) operating activities				70,827	61,618
				==========	==========
ANALYSIS OF CASH AND	CASH EQUIVALENTS
		2020		2019
		Group	Charity	Group	Charity
		£	£	£	£
Cash at bank and in hand		441,438	438,473	370,611	309,624
		=========	=========	==========	==========

18. TAXATION

19. RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM OPERATING ACTIVITIES

20. ANALYSIS OF CASH AND CASH EQUIVALENTS

ECI SCHOOLS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2020

21. POST BALANCE SHEET EVENTS

Since the year end, restrictions were still in place due the worldwide outbreak of the Covid-19 pandemic with further lockdowns imposed in November 2020 and January 2021 in the UK. ECIS continued its operations that has already been adapted from the previous lockdown and focused on membership renewals for the next financial year which has seen many members paying promptly and new members coming onboard meaning that ECIS is building its cash reserves with guaranteed income for the next financial year as lockdown measures hopefully begin to ease.

There are no other post balance sheet events that have taken place up to the date the accounts have been approved.

22. RELATED PARTIES

There were no related party transactions in the year or last year, except for transactions with its subsidiary ECI Inc disclosed above.