Lycée International de Londres Annual Report and Financial Statements 31 August 2023 Cl￿pary iThited ty Gwantee RryLStratK)n PthJrT*)Er iM)33139 (ErylaTrJ arKI W8le51 Chwty Regth*"on Numter 1160719 11111 *AD45JSJF• 2910512024 COMPANIES HOUSE Contents Reports Reference and admini8tr*ive detai15 of the school and its 9ovemors and advisers Independent auditor's ￿port 13 Accounts St*ement offinancial thities 17 Balance sheel 18 St*etrent of cash fb￿S 19 Principal accounting policies Notes to the accounts 20 24 Lycée Intemational de Londres Reference and administrative detsils of the school. its govemors and advlsers Governo r A Vaissié (Chair) rs J Banks Oughourlian r L Bouvard rs J Camblin r E Caradec rs E de Fonlaubert r K Laurson r B Michaud r M Penrose Clerk to the Governo s C Diedreich rs M Rabaté Add Forty Lane 99LY Company registration numbe 033139 {EngLqnd and Wa￿) Charity Reghtration numbe 160719 Chief Operating Office r L BatLrt Audito uzzacott LLP 30 Woc*J Street ondon C2V 6DL Banke SBC 93- 599 Fulhan Road ulham ondon SUA Soli¢ito tone King LLP 6 Sl John's Lane ondon C1M4BS Lycée International de Londres Governors. report 31 August 2023 The governors present theirannual rewrt and audited aceounls for the year ended 31 August 2023. The report has been prepar&J in xcordance with Part 8 the Charities Act 2011 and constitutes a directors. report the purpose of company legisfation. The financial statements have been prePa￿d in accordance wrf(h the accounting policies set out on page$ 20 to 23 therein and comply with the charitable company's Memorandum and Articles OfAsscciat￿n. applicable laws and AccountirvJ and Reporting by Charrties.. Statement of RecommerKled Practi¢e applvble lo chants'es preparirrfJ Iheir accounts in accordance with the Financial Rewrting Standard applicable in the Unrted KIn￿10M ard Republ￿ of Ireland IFRS 1021. GOVERNANCE, STRUCTURE AND MANAGEMENT Governance The chantsbFe company. which is governed by a memorandum aThJ arbcles of association, was in¢0￿1rated as a company on 9 May 2014 and reg6teBJ as a charity on 2 March 2015. Governor5 The govemor5 who ser￿￿ during the year and up to the date of Signing the xcounts were a5 folh)ws." rs J Banks Ou r L Bouvard. rs J Camblin Mr E Carade¢ Mrs E de Fonlaubert Mr K Laurson. Mr B Michaud Mr M Penrose r A Vaissié houdkgn. 'Member of Fin￿Ce CcAnmittee No govemor or peison connected wlh a govemor recer4ed any benefit from ef(her means lesled bursaries or scholwships awarded to our pupAs. Govemots. responslblllties statement The govemors are required to prepa￿ a Iruslees. reiNNt and ￿)uTrts for each financial year in accordance with appluble W and United Kingdom Accounling Standards (United Kingdom Generalty Accepted A¢counling pr￿t￿) Ihal give a true and fair view of the stale of affairs ofthe school and of its incoming resources and application of resources forthe year. In preparirwj &counts giving a true and fair view. the &Kivemors should follow best prxlice and.. select surtobk wiunling poliues and then appty them con5iStenlty.' Lycée International de Londres Governors, report 31 August 2023 GOVERNANCE, STRUCTURE AND MANAGEMENT {continuedl Governors. responsibilities staternent Iconlinued) + observe the rnelhLyJs and princip￿$ in Accounting and Reporting by CharrtY&s'. Ststement of Recnmmended Practice applKable lo tharities preparing theiraccounts in accordan wrth the Financial Repo￿.ng Stsndard applrable to the Unite(l Kirydom and Republic of Ireland IFRS 1021. make judgements and estimates that are reasonable and prudent: stste whether appltcable Unfted Kingdom Accounting Standards have been folltjwed. subject lo any m*rial departures d￿loSed and explained in the accounts". and • prepare the accounts on the going concern ba515 Un￿$$ it 15 inappmpriate lo presume that the school will continue in operation. The governo￿ are responsible for keeping proper accounting records which disck)se wrth reasonable accuracy at any lime the financral position of the school. They also have responsibilty for safeguarding the assets of the school and for taking reasonable steps to prevent and detect fraLMI and other irregularib"es. Recruitment and training of governoTS All governors have been allccated areas of responsibility, whith, where p055ible, are in accordance wrth their ski115 and eXPer￿nCe. Stone King refreshed and updated training for the govemors to erbsure Ihe rO￿S and respon5ibililies of the govemors were understood in February and March 2018. In addrtion. all govemors are invited lo attend reguLar safeguarding training to help in¢rease the understanding and awaTene5s of safeguarding practices In a $¢hcKsI setting. The most recent safeguarding training for govemors was in December 2023 and January 2024. The Governo￿ attended training in strategic planning in September 2019.They are also provided wrth informal￿n about addit*Jnal training opportunities as infOrMat￿n becomes available. Key management pernonnel The govemors consider that they, together wrth the Senior Leadership Team comprise the key managem￿1 of Ihe charityl and are in charge of directing and controlling ié. The Senior Leadef5hip Team i8 respC￿sIble for njnning and operating the charity on a day4￿aY basis. R￿UneratIOn for members of the SenKJr Leayership Te￿ is set based on the corryjetrtive mawket rate for compafatNe fo￿ requiring a similar skill set and experience in order for the individual to be successful. Salaries are revwed annually by the govemofs in line wilh the polt¢ies ofthe School and the contrxts of emplOy￿nt Oryanlsational management The details of the Current g0￿morS and dirertors. and IIKJSe who hekl off￿ during the year are set out on page The direclofs, are Ihe Charty Trust￿ for the p￿￿O$e$ of the Charities Ad 2011, oversee the operations of the Chanty. Ful-lime paid errpbyees undertake the day-ltrday management of the School. The Board of Govemots n*els on average onee every months or per schc4)I term to discuss the affairs of the Charty as a whole. l Head ofschool. Chief Operating Officer. Heads ofthe Primary and Secondary Sections, Head of Pastoral and Students. SeNicesand Heads of Career Lycée InternatTronal de Londres Govarnors, report 31 August 2023 GOVERNANCE, STRUCTURE AND MANAGEMENT {continued) Organisational management (continued) Each key operalKJnal aspect of the sch￿1 15 man&¥d through sub-ccmmittees whose members indude various Board rrEmbers and members of the School's operational management team. These sub-commrtlees cover areas such as ojrriculum, finance. communuttons, HR. heamh and safety. safeguarding, and governaneÈ. Wherever possible. the specialisms of the individual govemors are utilised in detemiining the ccffiposition of the vaTiOUS commiltees. Governovs. indemnilies The Chafrty has purchased a professional indemnrty poI￿Y lo protect the govemors from loss arising from neglect or defaults of the govemors. This was purchased as part of an insurance package. Conn8cted charities Mr A. Vaissie is aLso a trustee of Wembley Educat￿￿ Charrtable Trust (WECD. the landlord under a lease lor Ihe premises at 54 Foty Lane. Wembley. Middfe5ex. HA9 9LY between WECT and the Chanty. Risk management The govemors have asses5eJJ the major risks lo which Ihe Charity i% exposed and are satIsf￿d that systems are in place to mitsgate exposure lo the major risks. Along wrth all of rts policies and pr￿edures, the Charrty Tewews rts prctedures regularty to ensure compliance and that signrfKant risks are rTh)nilored and controlled. The key controls used by the Charity indude detailed b￿t prepaY*ion and monitoring, the. implementation of a IC¥J￿1 and consistent organisalh?n slnKture wich clear ￿portIng lines, clear authorisalion and approval leve15 and. as and when necessay, the employment of extemal professKinal thtsets. A risk management plan has been Created in order to ensure the g¢werrK)rs are aware of the significant risks, how they are controlw and the extent to ￿kn￿h a resKlual risk remains. Inlemalional crises and the oNprall econcynic context triggered a perio¢l of high inftation. more specfficalty those relating to energy and fooj. of whbch the Consequen￿ were fell again Ihioughoul this accounting year. eNEn though inflalK)n started to ease. The governors recognise their Tesponsibilty for the management of risks fxed by the Charty. Over and above these. the ar&is Klentified for part￿￿￿r attention wrthin our risk management strategy are". Loss ol key team membe The potential loss of key team members ￿ bolh the academK and adrrin&ralive sides of the School operations 15 managed by ensuring that Schctr)I poI￿leS on pay, beneffts and development opportunth.es are competitive as well as ensurirtg working conditions and the environrnenl are attr￿tive in order to retsin team members. In addit￿n, continuty planning is in place to ensure that knowledge is shared and team membets are devebp8d and promoted from within wherever possib￿. Lycée Internat￿nal de Londres 4 Govemors, report 31 August 2023 GOVERNANCE, STRUCTURE AND MANAGEMENT {continuedl Risk management (Continl￿) Competition in the sector Increased competition in the sector. and the comparative school fee rate versus the ¢CAnpetition could leal to in enrolling SUffic￿￿t students to maintain the operating expenses of the sch¢J)l. by ensuring that the elhos of the Sch¢xJl is unique, education, is of a high standard and appealing to a diverse rarye of peop￿. Fee levels are decided based on numerous considerat￿n$. irLluding the financial requirements of the School, an1￿1p￿ed admissions and the competrtive market pkn. Continued Impact of Brexit Brexit redLKed the number of French and French-speaking f￿nilieS rek>catirrfJ to London, and the introduckn.on of Msas for all non-Bntish nalionaL8, has an impact on staff costs and attrxtiveness, particulaty for staff from EU ff￿lber-stateS. The School ensures that the educ*ion provided is appealing to a broad range of families and 1$ unpaue in comparison to other offerings in London. The Board ensures a strategy is in place lo market the School effectivety maes a cons¢k)us effort to uThJerstand the profile and requirements of the potential fwnilies Ihal would conskler enrolling. tt is Ihe reason ￿Y the Schcd.. introdLKed an English Internat￿n01 Programrre from September 2018 which prepares students for the Intemational Baccalaureate Dipk)ma Programme {IBDPI and is now an accredited 18 Workd School. 18 Workl Schoc4s share a common philosophy commrtmenl lo huh qualrty, cha1￿￿91ng, inlemalv)nal education that we believe is important to OLFf students. For further information about the18 and its pr¢>3rammes, visit www.ibo.or openeA an Early yea￿ Foundat￿￿ Stage to children in pre-recept￿￿ and ret£ption in September 2020. Each class has a French and an English•speaking teacher, encouraging bilingualism from the beginning of their education. Obtained a CIS (CourLil of Internat￿nal Schwlsl ￿credrtal￿n in December 2022. Safeguardiry. Heafth and safety (H&S). Failing lo ensure the safety of Ihe students. staff and all members of the ￿h0o1 community would undemiine the qualty of Ihe Schcrt)l and jeopardBe its reputation in the community- Rigorous pOh'c￿S and procedures and slaff training are in place to ensure that health and safety arNJ safeguarding arrangements are of Ihe highe515tarHJards and the Board audits these standard5 and their imptemenL*ty)n Teguiarty through the use of its dedicated sub- commrttees. Lycée Intsrnational de Londres Governors, report 31 Augusl 2023 OBJECTS, AIMS, OBJECTIVES AND ACTivmES Princlpal charltable objects Through a rigorous, bilingual programme arhj innoYalp4e method5. we educale pupils to become responsible. creative and principled global cltizens. We teach them to think crilically and act elhicalty, to fom) and express their own opinions and respectthose of others. lo define Iheir Chvn lrfe goals and to make sense of aThJ embrace Change. Fundraising The s¢￿)￿ does I￿1 actively fu￿￿raIse as the majorty of income is from fee5 received. ahhough c¢casional donat￿nS are T￿Ned. The schc¥)I has re￿Ned no complain15 in respecl of fuThJraising. Plodem leamlng. tlmdess values The primary objective of Ihe entire Lycée Intematwjnal Imnston ChLtrchill teaching comrnunity is to contribute lo the intellectual devek)pment and persorbal fulfilment of each and every pupil. We devebp intellecl and charthr of our pupib to enab￿ them lo lake on the challenges of the world. Capable of thinking ￿ themse￿$ and expressing their opinions with CA)nfidence. our pupils ' thrive in a bilingual and internatKsnal environment. underpinned by excellence and a dynamic fh)w of pedagog￿al innovation. Integrity. ￿)urage and respect are the core values we encourage them lo develco, with the aim, uth'malety. that they beco￿£ Irue'gknbal crtviens.. Excellence Each student is entIt￿l to the best p)SSib￿ education &cording to theif needs. wrth the goal of achieving excellence in both intellectual and soual endeavours. We belEve that learning should be a fulfilling experience, and that schcol shoukl be a plxe fostering joy. creatNe thinking and openne$s. Our schoc4 encourages indivKlual and colledive iniliatwes. We want our chibjren to think posrtivdy abwt themsehes and to ￿niSe and value their own talents and those of others. Creativity It is otjr fimi bel￿fthat learning can take mutt1p￿ forms, and therefore 15 enhanced by diverse approaehes as well as the re$r￿Sib￿ use oftechnobgy. We encourage our teachets to think and teach creatNety. lo use a variety of ￿th(x1S. from lectures to prqecl-based, hands-on sessions. from books lo digilal resour￿ and blended leaming. We expect them lo develop innovatwe iesson plans in order lo help each student discover his or her own leaming style, tslents and potential. We er￿ou[89e them lo discover and understand the digttal wortd and make the best use of it. Integrity We believe that honesty ts of parwN)unl YnFrt)rtance in character buiwing. We encourage students to embra￿ chal*nges and wekome hurdles in every part 0fth￿r INes. We ask them to ry4vn their mislakes and learn from them. Community We encourage teamwo￿ and foster a sense of cortxnunty and solidanty wthin and outside the School. from posrtNe collaboration and heajthy competition in the classroom to volunteering and communty involve￿￿nI both localty and globalty. We toc* forward to support and collaboration from parents. wh￿h in tum we offer lo familEs. Lycée International de Londres Governors, report 31 August 2023 OWECTS, AIMS, OBJECTIVES AND ACTIVITIES (contin￿) Awareness We welcome sludents, families aNI ￿plOyeeS from 811 backgrounds and cultures. We respect and celebrate their identrty. Irfesty￿, preference5 and indivtdual dTffererKe5. We expect every membei of our communty. children and adults. to do the same. Public benefft Lycée International de Londres. as a registered charty. is commrtled to providing public benefit to both the local community in 1￿MbleY and to the students. community that benefits from receiving the educabon it has lo offer. The School aims lo engage with the local communty through the hiring of its facilitFes to kcal clubs or indNtrdua* at reduced r*es. and by akn supporting bcal govemment bodies such as Brent Cour￿11, tr) make the facilit*s available for events such as I￿1 election polling, rf needed. The 5thry)I welcomes Ihe B￿￿t PolKe cadels lo its faulilies for Iheir weekty training sessions. Brent Music serV￿s uses the schcol for reheatsals hvo A￿h1$ a week. In Ju 2023 the schwl hosted the DSL conference for Brent and welcomed Bu￿OW Preparatory School pupils for vallous events. Through Ihe sch￿1, students paI￿1pate in the Duke of Edinburoh Award Scheme. Ouring the year to 31 Augu512023 Ihe participan15 donated 3.029 hour5 of voluntary seNice to the cal cc¥nmunty. The sctia5 value of these hours is £14.568. The School woubj like to ensure Ihat individuals of drver5e economic backgrounds have the opportunity to benefrt from the &Jucalion it provk*s. As a FrenCh-￿credrted school, Lycée international de Londres c4Jntribules 2% of rts turtion income to the Agence pour lenseignement franfjais a felrarger IAEFE) and all French students al the School can app to the AEFE means4ested bursaries prcgramme. Since September 2022 the school introduced a means4ested bursary sctreme to compliment AEFE Se￿7e and further ils goal. The French Scholarship FOUnda￿n. wh￿h E a registered charity, also offers means-tested financial support to sludents in the sch￿1. As a registered charity and a wryany limited by guarantee, wilh no external shareholders, any Su￿luse5 created from Ihe operation of the SchCK￿ are reinve51ed in the edLKalion of the students and the Maintenan￿ of ts equipment and prerni5es. This allows the fees charged by the schwl lo be remain as affordable as possib￿ lo as many families as possible. The trustees have due regard lo Ihe Chanty Commission's guidance on Publ￿ benefiL Objectlves lor the year Following the challenges of Brexit. Covid and the cost-of4Ning crisis. the School's focus continues lo be grvwing our student numbers. We are expbring riew ways lo bring the school lo the attenli¢)n of families WI￿ are looking for an irtternational education using modem leaching lechnN4ues. The objectives of Lycée Inlemational de Londres remain consistent wrth those at the point of the Schod being eslablish&J in September 201S, and the vis￿)n lo Create the School whth began some years before. The School endeavoyrs trj ¢reale a nurturing and vibrant enwmnment where students and •Julis thrive, sharing the joys of leaching and leaming. In June 2023 the 5thJol had a succEssful Independent Sch￿1 In5peclorate IISII compliance insFeCtron. Rooted in the tradition of ed￿allY￿1 exceller)ce. and aiming lo offer the most l￿dern pedagogul aFproaches, our ethos reflecls our commitin￿l to foster the development of the whole thild along with eolleetNe aCh￿vernent through MUlu￿ respect and dedicat￿)n. Lycée IntematKJnal de Londres Governors, report 31 August 2023 OBJECTS. AIMS. OBJECTIVES AND ACTNMES {conlinuedl Objective5 for the year Ic(Jnlinuedl An enriching extracal community ts something the Schcol is dedicated lo doing. ReklK)n5hips wth local counal members are slroThJ and there has been positive work wi(h regards to the iMprove￿EntS in rc￿ safety around the School. Several inrtiatives have been undertaken wrth Iccal schooLs and we plan lo develop these ielationships further over the coming months. The School also remains committ&J to opening up the use of ts facilities lo local organisatic￿S that woukl benefit from the spaces rt has to offer and its Communrty Access Plan has been linked to the Brent Council websrte to facililale this. Lycée Internalional de Londres Governors, report 31 August 2023 REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR Operational performance of the school The euhlh year of ¢)peralion for the Schc￿l. like the fi151 seven. was extremety positive. Enrolmenl remained in line wrth expectalions throughout the year and averaged 830 full-time equivalent students. 827 students are reg¢stered and committed to attending the School for its ninth year of operation. 2023-2024. The Schcol's We￿"te is an important souree of infomiatfln for prospective families and the design aTrJ content are frequenlty enhanced during the year lo reflect this. Thè portals used to distribute infomialbon to families. staff and govemors continue to be enriched. The Schoofs staff is in line wrth student numbers. All are passionate about education and t￿1r skills, ded￿t￿n and enthusiasm support the students. The Opening Minds classes contsnue to flourtsh and augment the curriculum. The After School Programme (ASP) offers new opportunrties for all students to engage in var￿uS age•appropriate actsvit*s from music to volley ball. The Garderie (after sChC￿l day carel remains slTOry and offered care to a increasing number of students as the Primary Sedwjn grows year on year. In November 2022 the school was honoured to recerve the ISA {Independent School Association} Senkjr School of the Year Award. a distinction that recognises excellence in students. ￿adeMiC as well as personal development. The Te￿n￿￿le students acheved excellent ￿su11$ in the Baccalauréal in June. The pass rate was 11x1%: 95% wth'mentions." 24% with"bien' and 47% 'très bien.. For the third b.me Inlemational Baccalauwle students graduated. 100YD of our students passed. 4￿A of them exceeded the UK average, and 25% receNed a nKqrk above 40. The Ca￿e[S Departmenl worke(I diligenty with all senKir students, to help them think strategulty atrx)ut their future and support their applications to universities in the Uk and all around the wortd. wrthin the Class of 2023. 55•A of students are attending U.K. universit*s. of which 65% are part rf the Russell Group universrties. 29% are attending Higher Education institutions in France, of which 4% are Classes prépaR¢￿reS au Grdndes Écol&s. 80A are attending unNersities in Canada and the U.S. We also have 3% of students attending unwers((ies in Italy and Spain. Lastty. 4% a￿ taing a Gap Year or completing a Degree ApprenlirEship. FINANCIAL REVIEW Results for the year A summwy of the resuls for the yew 15 shcwn on page 17 ofthi8 report accounts. The total income for the year ended 31 August 2023 arwunted to £13.076,000 12022 É11,978.OCQI. This indudes donalKJns of £11.000 of which £6.000 was unrestri¢led12022- £16,000 unrestricted). The majonty of other ￿￿time was obtained from the pre-registration. reg￿trat￿n and fees. During the yearend&J 31 August2023 totsl experKlilure d£l3,761.0￿(2022-£l2,l24.0O0) was incurred. The def￿rt of income versus expend(Cu￿ for the year was £685,IXJO (2022 - def￿11 of £146,000}- Prrorto dep￿iat￿)n being charged to the accounts the def￿￿1 of expenses against income was £386,000 {2022- £62.000 surplus). High level of inflation caused this deficit as well as an overall incwse in staff cost. It is %￿rth noticing that Ihe deficit before depreciation was knver than forecast in the intlial budget thanks to an irtrease in admissions throughout the year. Lycée Internat￿nal de Londres 10 Governors, report 31 A￿Ust 2023 Reserves policy and financial position The cash posrtion of the school is strong and, while the aim of the School is to build up financial reserve equating lo three months of expenditure, rt is protected by the cash balance. Beyond this level, the investment of arty surplus reserves wll be al the discretion of the Board of Govemors but shall not indude the dwng or distribuiion of any funds from the Charity. Assets purchased or invested in shall be consitlered and appraised in terms of conversion back in to ￿6h Sho￿ there be a requiremenl al any point. At 31 August 2023 the Sch(￿1.5 free reseNes lUn￿￿¢ted funds not lied up in fixed assets} were in deftrt by £273,CQO12022 - surplu5 of £376,000). Afthough free re5erve5 a￿ loo km. the cash positNJn remains posrtive and gTr￿S the Schcol confKlence that this level can be improved in the coming years. In the absen￿ of the three I￿nths. expenditure at this poin( the Finance Committee will continue to ckjsety nyjnitor the cash Ik￿ forecast and monthty cash posrtion of the School lo ensure that positive cash Ilows through earty tuition fee colleclw are sufficient to outhigh any unexpected costs. The Finan￿ Commrttee meets regulaty in order to reviw this matter and put in Pla￿ any measures, such as expendrture caps. should they be deen*d necessary. In particular. at the current time. the reserves need to be suffic*nl to enable the Charty to operate in Ihe current econw1￿ environment. Longer term Strateg￿ plans are in place lo ensure that the financial slabilty of the School is maintaine(J as the number of pupils. revenue and the eosl base are expected to grow signrftanlty over the next 8-10 years. The fLrture reseNes poPLy of the School stsles that any financial reseryes generated are rwnvested into the education programme. or the protectkjn of the future financial success of the Schojl through the investment in assets convertible into resources should they be needed at any point. No dNKlends or distribulions are made by the SchoJl to any individuals or other organ￿*10n$. Golng concem The trustees have assessed whetherthe use of the going concem assumpkn.on is appropfiate in preparing these accounts. The trustees have made this assessment in respecl to a period of one year from the date of approval of these accounts. Desprte the total free reserves Carr￿ fO￿ard as al 31 August 2023 being in a def￿1t Position of £273,000, the budget scenarw)s show that the school can recL)ver its reserves position over the next 6 year5. Throughoul the year. the Schc¥Jl maintained a hearthy cash balance and will maintsin a positive cash balance in the coming years. The g¢)vemor5 do, hcwever. rwnise that there are a number of ¢hallenges in xhieving this recovery in the short temi, particukrty grven the nM)re recent cost pressures resulting from high and fluctuating rates of infiation. and uncertaintses which exist around the possible change of the lax stslus of indeperKlent schools n England. Vbftilst the degree of uncertainty described above ￿￿rrants transparent disclosure, the trustees have conduded that rt does nol constilute a material uncertainty relaled lo going concem. The twstees are of the opinion that the chanty will have sufficient resources lo meet ils liabilrtbes as they fall due. The￿fOre the finanaal stste￿nIS of Lycée International de Londres for the year ended 31 August 2023. have been prepared on the going concem basis. Lycée International de Londres 11 Governors, report 31 August 2023 FUTURE PLANS Desprte the current economic and polrtical environment, student en￿lment in September 2023 was in line wrth. in fact $￿ght￿ over. bud9et and is e¥￿ed to remain stsble over the next fNe yeats. Demand for pl￿ in the Eady yea￿ FourKIth"cffi Stsge has increased and the School has expanded rts capacty in the area. These children are taught in French and English simultaneousty, creating a strong base to support bilingual education throughout the School. All year gTOUPS lo Terminalelyear 13 have been fully operdtional since September 2020. Demand foi places in the English InternatKsnal Programme has increased steadily so that rt now represents 18°k of sfvdents in the Secondary section. The School met the thallenge of an unprecedented period of high Inflat￿n. The School's resilience was tested once again as the job market is becoming increasingly compelrtive and pressures to raise salaries mounted. The School responded well to Ihe cost￿f-11vln9 CTISIS and maintained a constriJctNe diak)gue with families resulting in heaf(hy admission levels. The goveino(s acknowledge recognisethe F4)tentkal impact of this new crisis on the future oper*K)ns of the Charty, r(s beneficianes. partners and stakeholders and on whler society. As inllatK)n stsrted to ease, the pressure on expenses femained high. Athough there can be s¢)me experklitu￿ savings, some items, suth as f￿d. utilities and maintenance cost more. Economic Pfessures wll remain strong and will impact the capacty of lamilies to pay h￿her tuilKJn fees. Hlywever the Govemots do not anticipate the financral pjsilion of the charity to be advetsety impacled or its SO￿er￿ threatened. In so far as the governors are ware at the of approMrMJ our govemors, annual rewjrt.. • There is no le￿vant infomaton. being inforn￿t￿n neeiled by the auditor in COnn￿tIon ith preparing lTh￿r report. 0fwh￿h the Chanty's auditor is unaware.. and • The govern￿5. having made enquirtes of fellow 90￿MOr$, have each taken all steps that helshe oblvJed lo tske as a director in order lo make themselves aware of any relevant audrt information and to estsblish that the audrtor L% aware of all of that informatK>n. Approved by the govemors and signed on their beha￿ by". K Laur5on Approved on". 2210512024 Lycée Inlemalb)nal de Londres 12 Independent auditovs report 31 ALWJUSt 2023 Independent audilorfs ￿pOrt to the memberJ of Lycée Intematlonal de Londres oP￿10n Mfe have audited the financial slatements of Lycèe Internat￿Inal de Londres {the 'charitable company'l for the year ended 31 August 2023 whth coryrise Ihe slalemenl of financial acINit￿, the balance sheel. and ststement of cash flows. the principal accounting policies and the notes to ihe financial stalements. The financial reporting framework that has been applied in their preparation is applKable law arrtj Unrted Kingdom Accounting Standards, induding Financial Reporb"ng Standard 102 'The Financial Reporting Standard applicable in the UK and Republ￿ of IreLqnd' (Unrted Kingdom Generalty Aecepled Accounting Practice). In our ￿Inion, the fina￿la1 statements: • gNe a true and fair view of the slate of the charitable company's affairs as at 31 August 2023 and of its inclxne and expenditure for the year then ended,. + have been prcpety prepar&J in ￿ance wrth Unrted Kingdom Generalty Accepted A¢¢ounling Prad￿e.. arKI • have been prepared in aCcOrda￿e with the requirements oflhe Companies Act 20￿. Basis for opinion We conducted our audit in ac￿dance wlh Intemalional Stwderds on Auditing IUKI IISAS {UK)l and appl￿ble law. Our ￿sponSIbl1itieS under those stsndards are further described in the audilorfs responsibilil*s for the audit of the financol statements seclhjn of our report. We are Independent of the chanlable eompany in &COrdan￿ with the ethical requirements that e relevant lo our audrt of the financial ststernents in the UK. Intluding the FRC'S Ethical Standard. and we have lUffil￿d our other eth￿al respjnsibilities in accordan￿ with these requirements. We believe that the audrt eviden￿ we have obtained is sufficient and appropriate to prwde a basis for our opin￿n. Conclusions relating to going Co￿er￿ In auditing the financial statements, we have c(￿Cluded that Ihe trustees. use of the going >n￿rn basis of accounting in the preparatton of the financial statements is appropriate. Based on the work we have performed. ¥￿ have not ¥Yentff*d any material uncertainties relating to events or condit￿n5 that. indwidualty or colleclivety. may cast significant doubt on the charitable c￿MpanY'S ability to continue as a going concem for a per*)d of at least tsvelve monlhs from when the finarria statements are authoris&J for issue. Our resp¢Jnsibdities aTrJ the responsibqrties of the Iruslees with respect lo going concern are described in the relevant seC￿n$ of thi% report. Other inforniation The other infofft)atKin comprises the infomiation include(l in the annual report and frnancial ststements, other than the financk81 slalements and our audilorfs report thereon. The trustees are responsib￿ for the other informalK*n contained wrthin the annual report and financial stslemenls. Our opIn￿n on the finanaal statements does not Thr the other infomialion and, except to the extent otheThvise explicitly ststed in our report, we do not express any form of assur￿ co￿l￿s1on lhere(￿. Lycée Intemational de Londres 13 Independent auditovs report 31 A￿ust 2023 Other inforniation Icontinuedl Our ￿spOnsibl1ty is lo lead the other inforTh￿KJn and, in doing so, considerwhetherthe other infornial￿n is Material￿ i￿OnsIstent with the financial ststements or our knowledge obtained in the course of the audrt or otheThwse appears lo be Material￿ misstated. If we identify such material Inconsiste￿e$ or apparent material misstalements, VR are required lo detemine whelher this gives rise to a mater￿1 misslalemenl in the financial slalements themselves. If, based on the work we have perfonned, we conclude that there is a material misstatemenl of this other infom)ation, we are required to report thal fact. We have nothing to"report in thts regard. Oplnlons ¢)n olher matters pr￿ribed by the Companies Act 2006 In our opinion, based on the wort undertaken in the ￿urSe of the audit.. • the information given in the tnjstees, report which B also the directors, report for the purposes of company L3w. for the finapLial year for whth the financial statements are prepared i% consistent with the financk31 stslements. and • the trustees. report. which is a150 the directors, re&K)rt for the purF¥)ses of ￿rnpanY law, has been prepared in XCAJrdance wtth applicable legal requirements. Matters on whlch we are requlred to report by excepllon In the light ofthe kno￿edge and u[￿e[Standsn9 ofthe charrtable wnpany and its envIr￿rnent obtained in the course of the al￿￿1t. we have not idenlffied material misstatements in Ihe trustees, rewrt. We have nothing to report in respect of the following mattets in relation lo wh￿h the CLYnpanies Act 20(6 require5 US to report lo you rf, in our opinion.. • adequate acccNJnting records ￿1ve not been kept. or retums adequate for our audit have I￿t been receNed from bra￿heS not Vi5rt&J by us.. or • the fina￿￿1 statements are not in ￿reernent with thè at￿Unting records and retums.. Ce￿￿n dthures of trustees. remuneration speu'fie(I by are not made., or we have nc* received all the informal•)n and explanations we require for our audil,. or • the trustees were not entrtled to prepare the financkal staterrEnls in accordance wih the small compan*s regime and take advantsge of the small companies, exemptions in preparing the trustees. report and from the requirement to prepare a strategic report. Responsibilities of tntslees As explained more fvlly in the trustees. responsibililies stslernenl, the trustees (who are also the directors of the charrtable cc¥npany for the purposes of compa.ny law) are responsible for the preparat￿n of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iwstees determine is necessary to enable the preparation of finarKial ststen￿nts th* are free from material rnisstslement, whether due to fratwj or error. In preparing the financial slatements, the truslees are responsible for assessing the charitab company's ability to conts.nue as a going conc*m. disclosing, as applicable, matter5 related to going concem and using the going concern basis of %￿untIng un￿sS the trustee5 either intend to liqU￿ale the CharItsb￿ company or lo cease operations. or have realist allematwe bul lo do so. Lycée Intemational de Londres 14 Independent auditows report 31 Augus12023 Auditovs responsibilities for the audlt of the financial statements Our objectsves are lo obtain reasonable assuranc£ aboLrt whether the financial statements as whole are free from material misslatemenl, whether due lo fraud or error. and to issue an auditorfs reFQrt that includes our opinion. Reasonable assuran￿ is a high level of assuran￿, but not a guaiantee that an audit condLKted in acCordar￿ewlth ISAS (UK) will a￿ayS detect a material misststement when rt exi8ts. Misststements Can arise from fraud or error and are considered material if, 1nd￿￿Ualty or in the aggregale, they coukl reasonabty be expected lo influence the eCOr￿1¢ decisions of users tsken on the basis of these financial slalemenls. Irregul*ities. including fraud. a￿ irtstsrtts of Th)n-CoM￿lance wilh laws and regulations. We desvJn procedures in line vthh our respC￿S￿l1rtjes, oullined above, lo detect material misstatements in respeet (rf ¥regukrlt￿s. including fraud. The extent to ￿1th our procedures are capable of detecling irregukrtties, induding fraud is detsiled beiow.. Our approxh to idenlfying aThJ assessir¥J the r￿S of materral misstatement in respect of irregularrties. including fraud and non-compliance wrth laws and regulations, was as follows.. the engagwnent partner ensured that the er@agement te*n collectively had the appropriate competence. capabilities and skills to identrfy or recognise nonable. In the event that a donation is subj.ect lo ondftions that require a level of perfomBnce before the charity is entitled to the funds, the income is deferred and not reccgnised until either those condrth)ns are fully met. or the ￿￿IlMen¢ of th￿e wnd(¢I￿S is wholly wlhin Ihe Contr￿ of the charity and it is probable that those conditions wiu be fvlfilled in the rwb'ng peri¢yJ. Donated equipment and faulrt*s provided lo the charty are recconised in the period when rt is probable that the econornic benefts will flow lo the charjty, promded they can be measured reliabty. Thts ts normèlty when the equipment is providedf(he facilities are used by the charty. An equNalent Jnounl is induded in fixed assets or as expendrture. Donated equipment and facilities are recognised based on the value of the gift lo the charity. which is the amount the charitywouhj have been willing to pay to obtain kn"lrtbe5 or services of equNalent economic benefft on the ¢)pen market. School fees other charges are Credrt￿ to the statement of finanual actwities on a recewable basis with fees raised al the beginning of the financial year and deferred unt earned. Fees are nel of bursaries. scholarships and discounts. Interest on funds held on deposht is included when r￿Vable and the amount can be measured reliabty by the chanty.. this is normalty upon notificatKJn of the interest paid or payable by the bank. Expenditure re¢ognltlon Liabilities are weeognised as expenditure ass¢Jon as there is a legal orconslruetive obligation comrnjtting the charty lo make a payment to a third paty, (( is probable that a transfer of econom￿ benefrts will be required in Sett￿rnent and the afflC￿nt of the obligat￿￿ can be measured reliabty. All expendrture is accounted foron an xcnwls basis and is slated indusive of irrecoverable VAT. Charitable expendilure comprises expen(liture incurred in carrying OLrt the sthool's main activity of Ihe provision of edLKabon and comprises" • Teaching costs- the c05t of leachin9 and support staff salaries, including pension and national insuranee costs. book5 arKI other lurtion expenses, and the cost of games and activrties. • Wellare costs - all doff*stie costs asswated with the school. inciuding employment costs. ¢￿suM8b￿ al￿ eatering costs. + Premises c05ts-all domest￿ Costs associatedvthh the premises. grounds aTrJ e5tate5. • &hoJl management and ￿minIstratI)n - the ￿$ts of general administration and management oflhe schwl. • G¢)vemance costs w￿lUde whrth are diwty attribLtsble to kgal pr￿ed￿re$ necessary for complwnce with slalulory requirements. Lycée International de Londres 21 Prlncipal accounting pollcies 31 A￿￿$1 2023 Taxation UK cOrporat￿n tax is payable on the ¢harity's taxable proffts for the year, rfany. A prO￿510n Is made in these accounts based on Ihe chaftvs estsmate of thi5 liability at the date of approving these acC(￿nts. Tangibh fixed assets • FUMitu￿ and equipmnt Expenditure on the purchase and replacement of fumrture and equipment ¢osting in excess of £sc￿ is capitalised and depwaled over fve years. Mthere il is aSS￿lated th maintenance of the premise5 a knnger period may be used tmjl never nKJre than the remaining kne term. • Catering equipnEnt Expendrture on the purthaseand rep1a￿rnent ofcalering equpmenl is capitalised and depreciated over ten years. • IT equipment and softw¥e Expendf(ure on the purchase and repLgcement of IT equipment and sor￿are costing in excess of £SOO is capitalised and depreciated over four years. Unkn"131 August 2021 a pemd of three years was used. Debio Debtors are recojnised at their settknient amount, less any provision for non-recoverability. Prepayments are valued at the arTh)unt prepa￿. They have been discounted to the present value of the fiJture cash receipt vthere such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturty of less than three Ir￿snthS from the date of wuisrtion. credito￿ and provisions Creditors and provIs￿nS are recc*Jn￿ed wthen there is an ctsligation al the balance sheet date as a result of a past event, rt is probab￿ that a transfer of economic benefft will be uired in settlement. and the amount of the settlement can be eslimaled ￿lIablY. Credrtors and provisions are recognised at the amount the charrty anticipates tt will pay to settle the debt. They have been discounted lo the present value of the frJture cash payment where such discounting is material. Funds The funds of the school cc*mprise reslrcted fvnds which must be applied for specific purposes in accordance wrth donorfs wishes and unrestr￿ted funds whrh are availab￿ for use in fijrtherance of the school's objectNes at the discretKsn of the govemors and Iru51ee5. Pension cosls The charity operates a defined contribut￿n scheme. wth AvTva. for le￿hIng staff from 1 January 2021. Contribut￿n$ in respect of the defined contribution scheme are charged to the statement of financLal ￿t￿rtieS ilthen they are payable to the sehemè. The charty has no Ikabilty beyond making rts contribuh.ors and paying &r<>ss the deductions for the employee contributKmS. The charity also operates a defined ¢onlribulion scheme. the Peoples Pension. for non- teaching staff. Contribulbons in respecl of the defined contribution scheme are charged to the ststernenl of financial XIN￿eS when they are payable to the scheme. The charity has no liability beyond making its contrbulions and paying across the deductions for the ernploy￿ contribut￿￿￿. Lycée Inlemational de Londres 22 Principal accountlng pollcles 31 August 2023 Leased assets Rentals app1Kab￿ to operating leases where substantially all of the benefits and iisks of ownership remain vthh the lessor are charged to the statement of financial actwrties on a slravJht4ine basis over the term of the kase. Lycée International de Londres 23 Notes to the accounts 31 Augusl 2023 l. Income from donations Unrgstri¢ted fvnds £'ooo Rgstrlcted funds £'ooo 2023 £'ooo onat50ns 11 otal funds 11 un￿triCt￿y fvnds £'ooo ReSt￿ted fvnds £'OLX) 2022 £,(￿0 natrons otal fund5 16 16 2. Income from school fees and related cha U#￿trIcted I￿ndS £'ooo Re$trkted funds £'ooo 2023 £'ooo re-wistralw fees eg15trats.on fees od fees fter School actiwi*S ire ol facilit￿$ uke of Edinburgh awards sc*eme evision 31 233 12.122 135 31 233 12,122 135 11 65 14 14 xams 282 13.a43 282 13,043 23 Total funds Unrestrided fijnds £'(J)o R85ti1￿¢d fijnds 2022 £'o re-registrats.￿ fees agtstration fee5 od fees fter School actmtss ire of facilit*s uke of Edinbvrgh awards sckne 37 249 11,173 155 143 69 37 249 11,173 155 143 69 ams 62 67 62 67 11.962 022 Totsl fuThJs 11 11.962 Lycée Internat￿)nal de Londres 24 Notes to the accounts 31 August 2023 3. Ex nditure on rovislon of education Unyestrlcted Restrictod funds £'ooo 2023 £'ooo £'ooo Recruitrnenl costs alaries and wages {rK*te 6) her staff costs Pfetntses chool rnanagernent a￿j admintstration overna￿e costs (note 41 13 Total lunds 116 6,78S 322 6,785 322 4,678 1,827 32 13.760 10 4,688 1,827 32 13,770 10 UnresirKted Restricted fijnds £'o 2022 £'o(x) ecruiknent ￿ksts alaries and wages (nots 61 ther staff costs remises chod management and adminv6trab¢ Vernar￿ casts (note 4) 022 Total fLSnds 77 77 5,946 127 4,521 1.414 27 12.112 127 4.476 1.414 27 12,067 45 45 4. Governance costs Unrestrictsd fvnd$ £'ooo R•stricled fvnd$ £'ooo 2023 £'ooo 81 and prOfeSs￿al fees uditorfs iernunerath.on (1￿1l￿*"r*J VAD Statutory audrt seNices Other serwce5 023 Total fund¥ 16 16 13 13 32 32 UnreslrKted Js R8Stricted Jnds £'ooo 2022 £'ooo Legal ar*Y professkmal fee5 l￿11￿$ remuneration [1￿11*11￿j VATJ . Statutory audrt 5er%*es 022 Totsl fvjnds 17 17 10 10 27 27 Lycée Intemational de Londres 25 Notes to the accounts 31 A￿uSt 2023 5. Net expenditure and net movement In funds This ts stsled after ehargmg". 2023 £'o 2022 £'oc#) tafl costs (Thole 61 preciafron uditorfs rernuneration Statuto audit servTces Other services ratirwj lease commilments 6,785 5,946 13 10 3,208 3,207 6. Staff costs and remuneratlon of key managemenl pernonnel a) Slaff costs 2023 £'ooo 2022 £'o ges and Sa￿￿$ crdl secunty costs ension ujsts 5.587 640 558 6.785 4,￿8 557 5,946 b) Stsff Costs 2023 £'ooo 2022 £'ooo tsff rx¥sts per fU￿n *ere as folows.. èaching remises 4711 150 1.924 6.785 4,165 154 1.627 chcd management and admin6trab.on c) Stsff numbers The average nurnber of empbyees during the year. anaWsed by funclffi, was.. Average Full tlme Average headeount equrvalent headcount 2023 2022 Full time equwalent 2022 2023 eathir*J Slaff remBes 74 73 71 67 chool managerne￿ and *JmintstraD 42 37 114 48 125 37 109 Lycée Intemational de Londres 26 Notes to Ihe accounts 31 August 2023 Staff costs and remuneration of key management personnel Icontinuedl d) Higherpaidstaff The number of empkjyees who eamed an annualised salary of £60,000 or rTh)re {excluding employer pensron contribul￿n$ bLrt including taxab￿ beneftsi duriThJ the year was as follows.. 2023 2022 No. 60.CQ1 _ £70.&)0 70.(K11 - £80.￿0 80,(￿l- £90,(MJO g0.CQ1 - £100.000 20.001-£230.0(XI 12 Pension contributions of £215.65912022 - £71.752) were made for the above employees during the per￿￿. •) Key Managem￿¢Pe￿￿￿el The key management personnel of the charity in charge of directing and controlling the charity comprise the trustees and the 8 (2022 - n members of the senior leadership team. The running and ope(atirKJ of the charity on a day lo day basis is delegated lo the senKJr leadership team. The total renwneration (including taxable benefits, employerfs pensKJn contribut￿)n$ and employerfs natsonal insuran￿) of the key management personnel lor the year was £99).672 (2022 - £752.781). The governo￿ recevRd no remunetstion (see note 71. Trustees. and governovs. remunernOon No trustee ty govemor recewed any ￿ muneralion in respect of Iheir seNices during the year12022 - none). No trustee or govemor recewed any rewnbursement of expenses duri the year12022- none). Two govemors currenty have chibjren attending Ihe school12022- Taxation Lycée Inlemational de LOnd￿S is a registered chanty and therefore is not liab￿ to income tax or corporation tax on incorre or gains derived from its charrtable activities. as they fall within the various exemptions availab￿ to registered charrties. The corporats.orb lax charge in 2022 was in ￿SpeCt lo traJirwJ ￿tmt￿ (the hwe of fxilthies). 2023 £'ooo 2022 £'ooo orpordtion tsx urrent tax on profits for the year 12 Lycée Intemational de Londres 27 Noles to the accounts 31 AUg￿$t 2023 Tangible fixed assets IT and Catemg solh¥aFe eouiwent £'ooo vipnent Totsl £'ooo At 1 Septenknr 2022 Athyitions DisposaLs At 31 ALb3USt 2023 1.fj61 1.615 197 11021 1,710 421 3.697 274 11021 3,869 1.738 421 Depreeiaiion At 1 septernt￿ 2022 Charge for the year Elwninated on dwal At 31 A￿U$l 2023 1.475 1,405. 177 11021 1,480 271 42 3.1S1 299 11021 3.348 1.SSS 313 N•t book valu85 At 31 August 2023 At 1 Sek)tember 2022 183 108 150 521 $46 210 10. Debto 2023 e'ooo 2022 £'ooo Fees and charges Prepayments and accrued irtome undry debtors 10.168 8,991 163 10,603 11. Credito￿. amounts fallin due withln one ear 2023 t'ooo 2022 £'wo xpense t￿ditorS ayroll creditors ccruals Deferred incx)me includiryj fees in adv* er tsxatkJn 2nd soci21 securty CA￿$ her creditors 334 29S 102 14.247 158 31 14.937 12.274 137 27 12,839 Lycée Intemational de Londres 28 Notes to the accounts 31 ALthJUSt 2023 Credito￿. amounts falling due within one year (continu&d) Ir￿luded within the at￿ is deferr&l i￿orne. TeL￿.ng to fees recewed in advarKe. as sel out belowT. 2022 £,￿0 2022 £'ooo eferred incx)me b ht fowrd at 1 Septemter 2022 rought forwa￿ funos re￿a$&y in the year rtK)nal irKome deferrwj duriThJ the yeaf ferred InCc￿ carried fon¥ard at 31 August 2023 12.274 112,2741 14,247 14,247 11,823 111,8231 12,274 12,274 12. Restricted funds The income funds crf the 5th￿1 include restricted funds ccmprisiw the followiryJ un8xpended balances lo be applied for 5pecrfc purposes.. September 2022 31 August 2023 £'ooo Income xpendlture £'ooo Fixed assets eStriCt￿ donab'ons 27 Isi Isi 22 Sept￿ber 2021 31 August 2022 £'ooo IncL Expendiiure £'ooo £.￿0 ixed assets 72 1451 27 The fryed asset fvnd ￿lateS to fved assets don*ed or cash received lo acquire Specific rrxed assets. The restricted donations fiJrKI relate5 to a donation received from APLIL, the parents, assOc￿li0n, for the improvernent of the 5erbior kjunge. 13. Analysls of net assets between funds Fund balarKes at 31 August 2(r23 are ￿presented by.. Unrestricted fund$ £'ooD Restricted fund5 £'ooo 31 August 2023 £'ooo angible fixed assets urrent assets urreni liabibts.ès otsl nèt assots 499 14.624 {14.9371 22 521 14,624 114.9371 208 22 Lycée Internatronal de Londres 29 Notes to the accounts 31 AwJust 2023 Anatysls of net assets betwfftn funds {eontinued} Unrestricted ftjnds £'ooo ReStr￿ted funcls £'ooo 31 August 2022 £'ooo argits￿ fixed assets U￿rni assets 519 13,217 112.839) 897 27 546 13,217 112.8391 924 urrent liabilit*S olal net assets 27 14. Leasing commltments At 31 August 2023, the sch(￿1 the f011c￿.ng future minimum commrtmenls under non- cancellable opeTrting knes as folh)ws'. 31 Atygust 2023 £'ooo 37 August 2022 £'ooo nd and bulldlno9 Payments whKh fall d￿". Wrthin one year One tri h¥0 years Two lo five years Due after fve years 3,200 3,2t)O 9,600 73,067 3,200 3.200 9.600 78.267 31 August 2023 t'ooo 31 AugLLSt 2022 £'oc(J qulpme ayments whth fall d￿.. thin one year Or£ to years after fve yea 15. Related parties Rent of £3,200.000 (2022- £3.2￿,0CQl was charged under ￿ operating l&ase by Wembley Education Chantable Trust IWEcf), a charity whth has a commn truslee, Mr A Vaissié, wrth Lycée Inlemational de Londre& Lycée Intemational de Londres 30 Lycée International de Londres Annual Report and Financial Statements 31 August 2023 Cl￿pary iThited ty Gwantee RryLStratK)n PthJrT*)Er iM)33139 (ErylaTrJ arKI W8le51 Chwty Regth*"on Numter 1160719 11111 *AD45JSJF• 2910512024 COMPANIES HOUSE Contents Reports Reference and admini8tr*ive detai15 of the school and its 9ovemors and advisers Independent auditor's ￿port 13 Accounts St*ement offinancial thities 17 Balance sheel 18 St*etrent of cash fb￿S 19 Principal accounting policies Notes to the accounts 20 24 Lycée Intemational de Londres Reference and administrative detsils of the school. its govemors and advlsers Governo r A Vaissié (Chair) rs J Banks Oughourlian r L Bouvard rs J Camblin r E Caradec rs E de Fonlaubert r K Laurson r B Michaud r M Penrose Clerk to the Governo s C Diedreich rs M Rabaté Add Forty Lane 99LY Company registration numbe 033139 {EngLqnd and Wa￿) Charity Reghtration numbe 160719 Chief Operating Office r L BatLrt Audito uzzacott LLP 30 Woc*J Street ondon C2V 6DL Banke SBC 93- 599 Fulhan Road ulham ondon SUA Soli¢ito tone King LLP 6 Sl John's Lane ondon C1M4BS Lycée International de Londres Governors. report 31 August 2023 The governors present theirannual rewrt and audited aceounls for the year ended 31 August 2023. The report has been prepar&J in xcordance with Part 8 the Charities Act 2011 and constitutes a directors. report the purpose of company legisfation. The financial statements have been prePa￿d in accordance wrf(h the accounting policies set out on page$ 20 to 23 therein and comply with the charitable company's Memorandum and Articles OfAsscciat￿n. applicable laws and AccountirvJ and Reporting by Charrties.. Statement of RecommerKled Practi¢e applvble lo chants'es preparirrfJ Iheir accounts in accordance with the Financial Rewrting Standard applicable in the Unrted KIn￿10M ard Republ￿ of Ireland IFRS 1021. GOVERNANCE, STRUCTURE AND MANAGEMENT Governance The chantsbFe company. which is governed by a memorandum aThJ arbcles of association, was in¢0￿1rated as a company on 9 May 2014 and reg6teBJ as a charity on 2 March 2015. Governor5 The govemor5 who ser￿￿ during the year and up to the date of Signing the xcounts were a5 folh)ws." rs J Banks Ou r L Bouvard. rs J Camblin Mr E Carade¢ Mrs E de Fonlaubert Mr K Laurson. Mr B Michaud Mr M Penrose r A Vaissié houdkgn. 'Member of Fin￿Ce CcAnmittee No govemor or peison connected wlh a govemor recer4ed any benefit from ef(her means lesled bursaries or scholwships awarded to our pupAs. Govemots. responslblllties statement The govemors are required to prepa￿ a Iruslees. reiNNt and ￿)uTrts for each financial year in accordance with appluble W and United Kingdom Accounling Standards (United Kingdom Generalty Accepted A¢counling pr￿t￿) Ihal give a true and fair view of the stale of affairs ofthe school and of its incoming resources and application of resources forthe year. In preparirwj &counts giving a true and fair view. the &Kivemors should follow best prxlice and.. select surtobk wiunling poliues and then appty them con5iStenlty.' Lycée International de Londres Governors, report 31 August 2023 GOVERNANCE, STRUCTURE AND MANAGEMENT {continuedl Governors. responsibilities staternent Iconlinued) + observe the rnelhLyJs and princip￿$ in Accounting and Reporting by CharrtY&s'. Ststement of Recnmmended Practice applKable lo tharities preparing theiraccounts in accordan wrth the Financial Repo￿.ng Stsndard applrable to the Unite(l Kirydom and Republic of Ireland IFRS 1021. make judgements and estimates that are reasonable and prudent: stste whether appltcable Unfted Kingdom Accounting Standards have been folltjwed. subject lo any m*rial departures d￿loSed and explained in the accounts". and • prepare the accounts on the going concern ba515 Un￿$$ it 15 inappmpriate lo presume that the school will continue in operation. The governo￿ are responsible for keeping proper accounting records which disck)se wrth reasonable accuracy at any lime the financral position of the school. They also have responsibilty for safeguarding the assets of the school and for taking reasonable steps to prevent and detect fraLMI and other irregularib"es. Recruitment and training of governoTS All governors have been allccated areas of responsibility, whith, where p055ible, are in accordance wrth their ski115 and eXPer￿nCe. Stone King refreshed and updated training for the govemors to erbsure Ihe rO￿S and respon5ibililies of the govemors were understood in February and March 2018. In addrtion. all govemors are invited lo attend reguLar safeguarding training to help in¢rease the understanding and awaTene5s of safeguarding practices In a $¢hcKsI setting. The most recent safeguarding training for govemors was in December 2023 and January 2024. The Governo￿ attended training in strategic planning in September 2019.They are also provided wrth informal￿n about addit*Jnal training opportunities as infOrMat￿n becomes available. Key management pernonnel The govemors consider that they, together wrth the Senior Leadership Team comprise the key managem￿1 of Ihe charityl and are in charge of directing and controlling ié. The Senior Leadef5hip Team i8 respC￿sIble for njnning and operating the charity on a day4￿aY basis. R￿UneratIOn for members of the SenKJr Leayership Te￿ is set based on the corryjetrtive mawket rate for compafatNe fo￿ requiring a similar skill set and experience in order for the individual to be successful. Salaries are revwed annually by the govemofs in line wilh the polt¢ies ofthe School and the contrxts of emplOy￿nt Oryanlsational management The details of the Current g0￿morS and dirertors. and IIKJSe who hekl off￿ during the year are set out on page The direclofs, are Ihe Charty Trust￿ for the p￿￿O$e$ of the Charities Ad 2011, oversee the operations of the Chanty. Ful-lime paid errpbyees undertake the day-ltrday management of the School. The Board of Govemots n*els on average onee every months or per schc4)I term to discuss the affairs of the Charty as a whole. l Head ofschool. Chief Operating Officer. Heads ofthe Primary and Secondary Sections, Head of Pastoral and Students. SeNicesand Heads of Career Lycée InternatTronal de Londres Govarnors, report 31 August 2023 GOVERNANCE, STRUCTURE AND MANAGEMENT {continued) Organisational management (continued) Each key operalKJnal aspect of the sch￿1 15 man&¥d through sub-ccmmittees whose members indude various Board rrEmbers and members of the School's operational management team. These sub-commrtlees cover areas such as ojrriculum, finance. communuttons, HR. heamh and safety. safeguarding, and governaneÈ. Wherever possible. the specialisms of the individual govemors are utilised in detemiining the ccffiposition of the vaTiOUS commiltees. Governovs. indemnilies The Chafrty has purchased a professional indemnrty poI￿Y lo protect the govemors from loss arising from neglect or defaults of the govemors. This was purchased as part of an insurance package. Conn8cted charities Mr A. Vaissie is aLso a trustee of Wembley Educat￿￿ Charrtable Trust (WECD. the landlord under a lease lor Ihe premises at 54 Foty Lane. Wembley. Middfe5ex. HA9 9LY between WECT and the Chanty. Risk management The govemors have asses5eJJ the major risks lo which Ihe Charity i% exposed and are satIsf￿d that systems are in place to mitsgate exposure lo the major risks. Along wrth all of rts policies and pr￿edures, the Charrty Tewews rts prctedures regularty to ensure compliance and that signrfKant risks are rTh)nilored and controlled. The key controls used by the Charity indude detailed b￿t prepaY*ion and monitoring, the. implementation of a IC¥J￿1 and consistent organisalh?n slnKture wich clear ￿portIng lines, clear authorisalion and approval leve15 and. as and when necessay, the employment of extemal professKinal thtsets. A risk management plan has been Created in order to ensure the g¢werrK)rs are aware of the significant risks, how they are controlw and the extent to ￿kn￿h a resKlual risk remains. Inlemalional crises and the oNprall econcynic context triggered a perio¢l of high inftation. more specfficalty those relating to energy and fooj. of whbch the Consequen￿ were fell again Ihioughoul this accounting year. eNEn though inflalK)n started to ease. The governors recognise their Tesponsibilty for the management of risks fxed by the Charty. Over and above these. the ar&is Klentified for part￿￿￿r attention wrthin our risk management strategy are". Loss ol key team membe The potential loss of key team members ￿ bolh the academK and adrrin&ralive sides of the School operations 15 managed by ensuring that Schctr)I poI￿leS on pay, beneffts and development opportunth.es are competitive as well as ensurirtg working conditions and the environrnenl are attr￿tive in order to retsin team members. In addit￿n, continuty planning is in place to ensure that knowledge is shared and team membets are devebp8d and promoted from within wherever possib￿. Lycée Internat￿nal de Londres 4 Govemors, report 31 August 2023 GOVERNANCE, STRUCTURE AND MANAGEMENT {continuedl Risk management (Continl￿) Competition in the sector Increased competition in the sector. and the comparative school fee rate versus the ¢CAnpetition could leal to in enrolling SUffic￿￿t students to maintain the operating expenses of the sch¢J)l. by ensuring that the elhos of the Sch¢xJl is unique, education, is of a high standard and appealing to a diverse rarye of peop￿. Fee levels are decided based on numerous considerat￿n$. irLluding the financial requirements of the School, an1￿1p￿ed admissions and the competrtive market pkn. Continued Impact of Brexit Brexit redLKed the number of French and French-speaking f￿nilieS rek>catirrfJ to London, and the introduckn.on of Msas for all non-Bntish nalionaL8, has an impact on staff costs and attrxtiveness, particulaty for staff from EU ff￿lber-stateS. The School ensures that the educ*ion provided is appealing to a broad range of families and 1$ unpaue in comparison to other offerings in London. The Board ensures a strategy is in place lo market the School effectivety maes a cons¢k)us effort to uThJerstand the profile and requirements of the potential fwnilies Ihal would conskler enrolling. tt is Ihe reason ￿Y the Schcd.. introdLKed an English Internat￿n01 Programrre from September 2018 which prepares students for the Intemational Baccalaureate Dipk)ma Programme {IBDPI and is now an accredited 18 Workd School. 18 Workl Schoc4s share a common philosophy commrtmenl lo huh qualrty, cha1￿￿91ng, inlemalv)nal education that we believe is important to OLFf students. For further information about the18 and its pr¢>3rammes, visit www.ibo.or openeA an Early yea￿ Foundat￿￿ Stage to children in pre-recept￿￿ and ret£ption in September 2020. Each class has a French and an English•speaking teacher, encouraging bilingualism from the beginning of their education. Obtained a CIS (CourLil of Internat￿nal Schwlsl ￿credrtal￿n in December 2022. Safeguardiry. Heafth and safety (H&S). Failing lo ensure the safety of Ihe students. staff and all members of the ￿h0o1 community would undemiine the qualty of Ihe Schcrt)l and jeopardBe its reputation in the community- Rigorous pOh'c￿S and procedures and slaff training are in place to ensure that health and safety arNJ safeguarding arrangements are of Ihe highe515tarHJards and the Board audits these standard5 and their imptemenL*ty)n Teguiarty through the use of its dedicated sub- commrttees. Lycée Intsrnational de Londres Governors, report 31 Augusl 2023 OBJECTS, AIMS, OBJECTIVES AND ACTivmES Princlpal charltable objects Through a rigorous, bilingual programme arhj innoYalp4e method5. we educale pupils to become responsible. creative and principled global cltizens. We teach them to think crilically and act elhicalty, to fom) and express their own opinions and respectthose of others. lo define Iheir Chvn lrfe goals and to make sense of aThJ embrace Change. Fundraising The s¢￿)￿ does I￿1 actively fu￿￿raIse as the majorty of income is from fee5 received. ahhough c¢casional donat￿nS are T￿Ned. The schc¥)I has re￿Ned no complain15 in respecl of fuThJraising. Plodem leamlng. tlmdess values The primary objective of Ihe entire Lycée Intematwjnal Imnston ChLtrchill teaching comrnunity is to contribute lo the intellectual devek)pment and persorbal fulfilment of each and every pupil. We devebp intellecl and charthr of our pupib to enab￿ them lo lake on the challenges of the world. Capable of thinking ￿ themse￿$ and expressing their opinions with CA)nfidence. our pupils ' thrive in a bilingual and internatKsnal environment. underpinned by excellence and a dynamic fh)w of pedagog￿al innovation. Integrity. ￿)urage and respect are the core values we encourage them lo develco, with the aim, uth'malety. that they beco￿£ Irue'gknbal crtviens.. Excellence Each student is entIt￿l to the best p)SSib￿ education &cording to theif needs. wrth the goal of achieving excellence in both intellectual and soual endeavours. We belEve that learning should be a fulfilling experience, and that schcol shoukl be a plxe fostering joy. creatNe thinking and openne$s. Our schoc4 encourages indivKlual and colledive iniliatwes. We want our chibjren to think posrtivdy abwt themsehes and to ￿niSe and value their own talents and those of others. Creativity It is otjr fimi bel￿fthat learning can take mutt1p￿ forms, and therefore 15 enhanced by diverse approaehes as well as the re$r￿Sib￿ use oftechnobgy. We encourage our teachets to think and teach creatNety. lo use a variety of ￿th(x1S. from lectures to prqecl-based, hands-on sessions. from books lo digilal resour￿ and blended leaming. We expect them lo develop innovatwe iesson plans in order lo help each student discover his or her own leaming style, tslents and potential. We er￿ou[89e them lo discover and understand the digttal wortd and make the best use of it. Integrity We believe that honesty ts of parwN)unl YnFrt)rtance in character buiwing. We encourage students to embra￿ chal*nges and wekome hurdles in every part 0fth￿r INes. We ask them to ry4vn their mislakes and learn from them. Community We encourage teamwo￿ and foster a sense of cortxnunty and solidanty wthin and outside the School. from posrtNe collaboration and heajthy competition in the classroom to volunteering and communty involve￿￿nI both localty and globalty. We toc* forward to support and collaboration from parents. wh￿h in tum we offer lo familEs. Lycée International de Londres Governors, report 31 August 2023 OWECTS, AIMS, OBJECTIVES AND ACTIVITIES (contin￿) Awareness We welcome sludents, families aNI ￿plOyeeS from 811 backgrounds and cultures. We respect and celebrate their identrty. Irfesty￿, preference5 and indivtdual dTffererKe5. We expect every membei of our communty. children and adults. to do the same. Public benefft Lycée International de Londres. as a registered charty. is commrtled to providing public benefit to both the local community in 1￿MbleY and to the students. community that benefits from receiving the educabon it has lo offer. The School aims lo engage with the local communty through the hiring of its facilitFes to kcal clubs or indNtrdua* at reduced r*es. and by akn supporting bcal govemment bodies such as Brent Cour￿11, tr) make the facilit*s available for events such as I￿1 election polling, rf needed. The 5thry)I welcomes Ihe B￿￿t PolKe cadels lo its faulilies for Iheir weekty training sessions. Brent Music serV￿s uses the schcol for reheatsals hvo A￿h1$ a week. In Ju 2023 the schwl hosted the DSL conference for Brent and welcomed Bu￿OW Preparatory School pupils for vallous events. Through Ihe sch￿1, students paI￿1pate in the Duke of Edinburoh Award Scheme. Ouring the year to 31 Augu512023 Ihe participan15 donated 3.029 hour5 of voluntary seNice to the cal cc¥nmunty. The sctia5 value of these hours is £14.568. The School woubj like to ensure Ihat individuals of drver5e economic backgrounds have the opportunity to benefrt from the &Jucalion it provk*s. As a FrenCh-￿credrted school, Lycée international de Londres c4Jntribules 2% of rts turtion income to the Agence pour lenseignement franfjais a felrarger IAEFE) and all French students al the School can app to the AEFE means4ested bursaries prcgramme. Since September 2022 the school introduced a means4ested bursary sctreme to compliment AEFE Se￿7e and further ils goal. The French Scholarship FOUnda￿n. wh￿h E a registered charity, also offers means-tested financial support to sludents in the sch￿1. As a registered charity and a wryany limited by guarantee, wilh no external shareholders, any Su￿luse5 created from Ihe operation of the SchCK￿ are reinve51ed in the edLKalion of the students and the Maintenan￿ of ts equipment and prerni5es. This allows the fees charged by the schwl lo be remain as affordable as possib￿ lo as many families as possible. The trustees have due regard lo Ihe Chanty Commission's guidance on Publ￿ benefiL Objectlves lor the year Following the challenges of Brexit. Covid and the cost-of4Ning crisis. the School's focus continues lo be grvwing our student numbers. We are expbring riew ways lo bring the school lo the attenli¢)n of families WI￿ are looking for an irtternational education using modem leaching lechnN4ues. The objectives of Lycée Inlemational de Londres remain consistent wrth those at the point of the Schod being eslablish&J in September 201S, and the vis￿)n lo Create the School whth began some years before. The School endeavoyrs trj ¢reale a nurturing and vibrant enwmnment where students and •Julis thrive, sharing the joys of leaching and leaming. In June 2023 the 5thJol had a succEssful Independent Sch￿1 In5peclorate IISII compliance insFeCtron. Rooted in the tradition of ed￿allY￿1 exceller)ce. and aiming lo offer the most l￿dern pedagogul aFproaches, our ethos reflecls our commitin￿l to foster the development of the whole thild along with eolleetNe aCh￿vernent through MUlu￿ respect and dedicat￿)n. Lycée IntematKJnal de Londres Governors, report 31 August 2023 OBJECTS. AIMS. OBJECTIVES AND ACTNMES {conlinuedl Objective5 for the year Ic(Jnlinuedl An enriching extracal community ts something the Schcol is dedicated lo doing. ReklK)n5hips wth local counal members are slroThJ and there has been positive work wi(h regards to the iMprove￿EntS in rc￿ safety around the School. Several inrtiatives have been undertaken wrth Iccal schooLs and we plan lo develop these ielationships further over the coming months. The School also remains committ&J to opening up the use of ts facilities lo local organisatic￿S that woukl benefit from the spaces rt has to offer and its Communrty Access Plan has been linked to the Brent Council websrte to facililale this. Lycée Internalional de Londres Governors, report 31 August 2023 REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR Operational performance of the school The euhlh year of ¢)peralion for the Schc￿l. like the fi151 seven. was extremety positive. Enrolmenl remained in line wrth expectalions throughout the year and averaged 830 full-time equivalent students. 827 students are reg¢stered and committed to attending the School for its ninth year of operation. 2023-2024. The Schcol's We￿"te is an important souree of infomiatfln for prospective families and the design aTrJ content are frequenlty enhanced during the year lo reflect this. Thè portals used to distribute infomialbon to families. staff and govemors continue to be enriched. The Schoofs staff is in line wrth student numbers. All are passionate about education and t￿1r skills, ded￿t￿n and enthusiasm support the students. The Opening Minds classes contsnue to flourtsh and augment the curriculum. The After School Programme (ASP) offers new opportunrties for all students to engage in var￿uS age•appropriate actsvit*s from music to volley ball. The Garderie (after sChC￿l day carel remains slTOry and offered care to a increasing number of students as the Primary Sedwjn grows year on year. In November 2022 the school was honoured to recerve the ISA {Independent School Association} Senkjr School of the Year Award. a distinction that recognises excellence in students. ￿adeMiC as well as personal development. The Te￿n￿￿le students acheved excellent ￿su11$ in the Baccalauréal in June. The pass rate was 11x1%: 95% wth'mentions." 24% with"bien' and 47% 'très bien.. For the third b.me Inlemational Baccalauwle students graduated. 100YD of our students passed. 4￿A of them exceeded the UK average, and 25% receNed a nKqrk above 40. The Ca￿e[S Departmenl worke(I diligenty with all senKir students, to help them think strategulty atrx)ut their future and support their applications to universities in the Uk and all around the wortd. wrthin the Class of 2023. 55•A of students are attending U.K. universit*s. of which 65% are part rf the Russell Group universrties. 29% are attending Higher Education institutions in France, of which 4% are Classes prépaR¢￿reS au Grdndes Écol&s. 80A are attending unNersities in Canada and the U.S. We also have 3% of students attending unwers((ies in Italy and Spain. Lastty. 4% a￿ taing a Gap Year or completing a Degree ApprenlirEship. FINANCIAL REVIEW Results for the year A summwy of the resuls for the yew 15 shcwn on page 17 ofthi8 report accounts. The total income for the year ended 31 August 2023 arwunted to £13.076,000 12022 É11,978.OCQI. This indudes donalKJns of £11.000 of which £6.000 was unrestri¢led12022- £16,000 unrestricted). The majonty of other ￿￿time was obtained from the pre-registration. reg￿trat￿n and fees. During the yearend&J 31 August2023 totsl experKlilure d£l3,761.0￿(2022-£l2,l24.0O0) was incurred. The def￿rt of income versus expend(Cu￿ for the year was £685,IXJO (2022 - def￿11 of £146,000}- Prrorto dep￿iat￿)n being charged to the accounts the def￿￿1 of expenses against income was £386,000 {2022- £62.000 surplus). High level of inflation caused this deficit as well as an overall incwse in staff cost. It is %￿rth noticing that Ihe deficit before depreciation was knver than forecast in the intlial budget thanks to an irtrease in admissions throughout the year. Lycée Internat￿nal de Londres 10 Governors, report 31 A￿Ust 2023 Reserves policy and financial position The cash posrtion of the school is strong and, while the aim of the School is to build up financial reserve equating lo three months of expenditure, rt is protected by the cash balance. Beyond this level, the investment of arty surplus reserves wll be al the discretion of the Board of Govemors but shall not indude the dwng or distribuiion of any funds from the Charity. Assets purchased or invested in shall be consitlered and appraised in terms of conversion back in to ￿6h Sho￿ there be a requiremenl al any point. At 31 August 2023 the Sch(￿1.5 free reseNes lUn￿￿¢ted funds not lied up in fixed assets} were in deftrt by £273,CQO12022 - surplu5 of £376,000). Afthough free re5erve5 a￿ loo km. the cash positNJn remains posrtive and gTr￿S the Schcol confKlence that this level can be improved in the coming years. In the absen￿ of the three I￿nths. expenditure at this poin( the Finance Committee will continue to ckjsety nyjnitor the cash Ik￿ forecast and monthty cash posrtion of the School lo ensure that positive cash Ilows through earty tuition fee colleclw are sufficient to outhigh any unexpected costs. The Finan￿ Commrttee meets regulaty in order to reviw this matter and put in Pla￿ any measures, such as expendrture caps. should they be deen*d necessary. In particular. at the current time. the reserves need to be suffic*nl to enable the Charty to operate in Ihe current econw1￿ environment. Longer term Strateg￿ plans are in place lo ensure that the financial slabilty of the School is maintaine(J as the number of pupils. revenue and the eosl base are expected to grow signrftanlty over the next 8-10 years. The fLrture reseNes poPLy of the School stsles that any financial reseryes generated are rwnvested into the education programme. or the protectkjn of the future financial success of the Schojl through the investment in assets convertible into resources should they be needed at any point. No dNKlends or distribulions are made by the SchoJl to any individuals or other organ￿*10n$. Golng concem The trustees have assessed whetherthe use of the going concem assumpkn.on is appropfiate in preparing these accounts. The trustees have made this assessment in respecl to a period of one year from the date of approval of these accounts. Desprte the total free reserves Carr￿ fO￿ard as al 31 August 2023 being in a def￿1t Position of £273,000, the budget scenarw)s show that the school can recL)ver its reserves position over the next 6 year5. Throughoul the year. the Schc¥Jl maintained a hearthy cash balance and will maintsin a positive cash balance in the coming years. The g¢)vemor5 do, hcwever. rwnise that there are a number of ¢hallenges in xhieving this recovery in the short temi, particukrty grven the nM)re recent cost pressures resulting from high and fluctuating rates of infiation. and uncertaintses which exist around the possible change of the lax stslus of indeperKlent schools n England. Vbftilst the degree of uncertainty described above ￿￿rrants transparent disclosure, the trustees have conduded that rt does nol constilute a material uncertainty relaled lo going concem. The twstees are of the opinion that the chanty will have sufficient resources lo meet ils liabilrtbes as they fall due. The￿fOre the finanaal stste￿nIS of Lycée International de Londres for the year ended 31 August 2023. have been prepared on the going concem basis. Lycée International de Londres 11 Governors, report 31 August 2023 FUTURE PLANS Desprte the current economic and polrtical environment, student en￿lment in September 2023 was in line wrth. in fact $￿ght￿ over. bud9et and is e¥￿ed to remain stsble over the next fNe yeats. Demand for pl￿ in the Eady yea￿ FourKIth"cffi Stsge has increased and the School has expanded rts capacty in the area. These children are taught in French and English simultaneousty, creating a strong base to support bilingual education throughout the School. All year gTOUPS lo Terminalelyear 13 have been fully operdtional since September 2020. Demand foi places in the English InternatKsnal Programme has increased steadily so that rt now represents 18°k of sfvdents in the Secondary section. The School met the thallenge of an unprecedented period of high Inflat￿n. The School's resilience was tested once again as the job market is becoming increasingly compelrtive and pressures to raise salaries mounted. The School responded well to Ihe cost￿f-11vln9 CTISIS and maintained a constriJctNe diak)gue with families resulting in heaf(hy admission levels. The goveino(s acknowledge recognisethe F4)tentkal impact of this new crisis on the future oper*K)ns of the Charty, r(s beneficianes. partners and stakeholders and on whler society. As inllatK)n stsrted to ease, the pressure on expenses femained high. Athough there can be s¢)me experklitu￿ savings, some items, suth as f￿d. utilities and maintenance cost more. Economic Pfessures wll remain strong and will impact the capacty of lamilies to pay h￿her tuilKJn fees. Hlywever the Govemots do not anticipate the financral pjsilion of the charity to be advetsety impacled or its SO￿er￿ threatened. In so far as the governors are ware at the of approMrMJ our govemors, annual rewjrt.. • There is no le￿vant infomaton. being inforn￿t￿n neeiled by the auditor in COnn￿tIon ith preparing lTh￿r report. 0fwh￿h the Chanty's auditor is unaware.. and • The govern￿5. having made enquirtes of fellow 90￿MOr$, have each taken all steps that helshe oblvJed lo tske as a director in order lo make themselves aware of any relevant audrt information and to estsblish that the audrtor L% aware of all of that informatK>n. Approved by the govemors and signed on their beha￿ by". K Laur5on Approved on". 2210512024 Lycée Inlemalb)nal de Londres 12 Independent auditovs report 31 ALWJUSt 2023 Independent audilorfs ￿pOrt to the memberJ of Lycée Intematlonal de Londres oP￿10n Mfe have audited the financial slatements of Lycèe Internat￿Inal de Londres {the 'charitable company'l for the year ended 31 August 2023 whth coryrise Ihe slalemenl of financial acINit￿, the balance sheel. and ststement of cash flows. the principal accounting policies and the notes to ihe financial stalements. The financial reporting framework that has been applied in their preparation is applKable law arrtj Unrted Kingdom Accounting Standards, induding Financial Reporb"ng Standard 102 'The Financial Reporting Standard applicable in the UK and Republ￿ of IreLqnd' (Unrted Kingdom Generalty Aecepled Accounting Practice). In our ￿Inion, the fina￿la1 statements: • gNe a true and fair view of the slate of the charitable company's affairs as at 31 August 2023 and of its inclxne and expenditure for the year then ended,. + have been prcpety prepar&J in ￿ance wrth Unrted Kingdom Generalty Accepted A¢¢ounling Prad￿e.. arKI • have been prepared in aCcOrda￿e with the requirements oflhe Companies Act 20￿. Basis for opinion We conducted our audit in ac￿dance wlh Intemalional Stwderds on Auditing IUKI IISAS {UK)l and appl￿ble law. Our ￿sponSIbl1itieS under those stsndards are further described in the audilorfs responsibilil*s for the audit of the financol statements seclhjn of our report. We are Independent of the chanlable eompany in &COrdan￿ with the ethical requirements that e relevant lo our audrt of the financial ststernents in the UK. Intluding the FRC'S Ethical Standard. and we have lUffil￿d our other eth￿al respjnsibilities in accordan￿ with these requirements. We believe that the audrt eviden￿ we have obtained is sufficient and appropriate to prwde a basis for our opin￿n. Conclusions relating to going Co￿er￿ In auditing the financial statements, we have c(￿Cluded that Ihe trustees. use of the going >n￿rn basis of accounting in the preparatton of the financial statements is appropriate. Based on the work we have performed. ¥￿ have not ¥Yentff*d any material uncertainties relating to events or condit￿n5 that. indwidualty or colleclivety. may cast significant doubt on the charitable c￿MpanY'S ability to continue as a going concem for a per*)d of at least tsvelve monlhs from when the finarria statements are authoris&J for issue. Our resp¢Jnsibdities aTrJ the responsibqrties of the Iruslees with respect lo going concern are described in the relevant seC￿n$ of thi% report. Other inforniation The other infofft)atKin comprises the infomiation include(l in the annual report and frnancial ststements, other than the financk81 slalements and our audilorfs report thereon. The trustees are responsib￿ for the other informalK*n contained wrthin the annual report and financial stslemenls. Our opIn￿n on the finanaal statements does not Thr the other infomialion and, except to the extent otheThvise explicitly ststed in our report, we do not express any form of assur￿ co￿l￿s1on lhere(￿. Lycée Intemational de Londres 13 Independent auditovs report 31 A￿ust 2023 Other inforniation Icontinuedl Our ￿spOnsibl1ty is lo lead the other inforTh￿KJn and, in doing so, considerwhetherthe other infornial￿n is Material￿ i￿OnsIstent with the financial ststements or our knowledge obtained in the course of the audrt or otheThwse appears lo be Material￿ misstated. If we identify such material Inconsiste￿e$ or apparent material misstalements, VR are required lo detemine whelher this gives rise to a mater￿1 misslalemenl in the financial slalements themselves. If, based on the work we have perfonned, we conclude that there is a material misstatemenl of this other infom)ation, we are required to report thal fact. We have nothing to"report in thts regard. Oplnlons ¢)n olher matters pr￿ribed by the Companies Act 2006 In our opinion, based on the wort undertaken in the ￿urSe of the audit.. • the information given in the tnjstees, report which B also the directors, report for the purposes of company L3w. for the finapLial year for whth the financial statements are prepared i% consistent with the financk31 stslements. and • the trustees. report. which is a150 the directors, re&K)rt for the purF¥)ses of ￿rnpanY law, has been prepared in XCAJrdance wtth applicable legal requirements. Matters on whlch we are requlred to report by excepllon In the light ofthe kno￿edge and u[￿e[Standsn9 ofthe charrtable wnpany and its envIr￿rnent obtained in the course of the al￿￿1t. we have not idenlffied material misstatements in Ihe trustees, rewrt. We have nothing to report in respect of the following mattets in relation lo wh￿h the CLYnpanies Act 20(6 require5 US to report lo you rf, in our opinion.. • adequate acccNJnting records ￿1ve not been kept. or retums adequate for our audit have I￿t been receNed from bra￿heS not Vi5rt&J by us.. or • the fina￿￿1 statements are not in ￿reernent with thè at￿Unting records and retums.. Ce￿￿n dthures of trustees. remuneration speu'fie(I by are not made., or we have nc* received all the informal•)n and explanations we require for our audil,. or • the trustees were not entrtled to prepare the financkal staterrEnls in accordance wih the small compan*s regime and take advantsge of the small companies, exemptions in preparing the trustees. report and from the requirement to prepare a strategic report. Responsibilities of tntslees As explained more fvlly in the trustees. responsibililies stslernenl, the trustees (who are also the directors of the charrtable cc¥npany for the purposes of compa.ny law) are responsible for the preparat￿n of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iwstees determine is necessary to enable the preparation of finarKial ststen￿nts th* are free from material rnisstslement, whether due to fratwj or error. In preparing the financial slatements, the truslees are responsible for assessing the charitab company's ability to conts.nue as a going conc*m. disclosing, as applicable, matter5 related to going concem and using the going concern basis of %￿untIng un￿sS the trustee5 either intend to liqU￿ale the CharItsb￿ company or lo cease operations. or have realist allematwe bul lo do so. Lycée Intemational de Londres 14 Independent auditows report 31 Augus12023 Auditovs responsibilities for the audlt of the financial statements Our objectsves are lo obtain reasonable assuranc£ aboLrt whether the financial statements as whole are free from material misslatemenl, whether due lo fraud or error. and to issue an auditorfs reFQrt that includes our opinion. Reasonable assuran￿ is a high level of assuran￿, but not a guaiantee that an audit condLKted in acCordar￿ewlth ISAS (UK) will a￿ayS detect a material misststement when rt exi8ts. Misststements Can arise from fraud or error and are considered material if, 1nd￿￿Ualty or in the aggregale, they coukl reasonabty be expected lo influence the eCOr￿1¢ decisions of users tsken on the basis of these financial slalemenls. Irregul*ities. including fraud. a￿ irtstsrtts of Th)n-CoM￿lance wilh laws and regulations. We desvJn procedures in line vthh our respC￿S￿l1rtjes, oullined above, lo detect material misstatements in respeet (rf ¥regukrlt￿s. including fraud. The extent to ￿1th our procedures are capable of detecling irregukrtties, induding fraud is detsiled beiow.. Our approxh to idenlfying aThJ assessir¥J the r￿S of materral misstatement in respect of irregularrties. including fraud and non-compliance wrth laws and regulations, was as follows.. the engagwnent partner ensured that the er@agement te*n collectively had the appropriate competence. capabilities and skills to identrfy or recognise nonable. In the event that a donation is subj.ect lo ondftions that require a level of perfomBnce before the charity is entitled to the funds, the income is deferred and not reccgnised until either those condrth)ns are fully met. or the ￿￿IlMen¢ of th￿e wnd(¢I￿S is wholly wlhin Ihe Contr￿ of the charity and it is probable that those conditions wiu be fvlfilled in the rwb'ng peri¢yJ. Donated equipment and faulrt*s provided lo the charty are recconised in the period when rt is probable that the econornic benefts will flow lo the charjty, promded they can be measured reliabty. Thts ts normèlty when the equipment is providedf(he facilities are used by the charty. An equNalent Jnounl is induded in fixed assets or as expendrture. Donated equipment and facilities are recognised based on the value of the gift lo the charity. which is the amount the charitywouhj have been willing to pay to obtain kn"lrtbe5 or services of equNalent economic benefft on the ¢)pen market. School fees other charges are Credrt￿ to the statement of finanual actwities on a recewable basis with fees raised al the beginning of the financial year and deferred unt earned. Fees are nel of bursaries. scholarships and discounts. Interest on funds held on deposht is included when r￿Vable and the amount can be measured reliabty by the chanty.. this is normalty upon notificatKJn of the interest paid or payable by the bank. Expenditure re¢ognltlon Liabilities are weeognised as expenditure ass¢Jon as there is a legal orconslruetive obligation comrnjtting the charty lo make a payment to a third paty, (( is probable that a transfer of econom￿ benefrts will be required in Sett￿rnent and the afflC￿nt of the obligat￿￿ can be measured reliabty. All expendrture is accounted foron an xcnwls basis and is slated indusive of irrecoverable VAT. Charitable expendilure comprises expen(liture incurred in carrying OLrt the sthool's main activity of Ihe provision of edLKabon and comprises" • Teaching costs- the c05t of leachin9 and support staff salaries, including pension and national insuranee costs. book5 arKI other lurtion expenses, and the cost of games and activrties. • Wellare costs - all doff*stie costs asswated with the school. inciuding employment costs. ¢￿suM8b￿ al￿ eatering costs. + Premises c05ts-all domest￿ Costs associatedvthh the premises. grounds aTrJ e5tate5. • &hoJl management and ￿minIstratI)n - the ￿$ts of general administration and management oflhe schwl. • G¢)vemance costs w￿lUde whrth are diwty attribLtsble to kgal pr￿ed￿re$ necessary for complwnce with slalulory requirements. Lycée International de Londres 21 Prlncipal accounting pollcies 31 A￿￿$1 2023 Taxation UK cOrporat￿n tax is payable on the ¢harity's taxable proffts for the year, rfany. A prO￿510n Is made in these accounts based on Ihe chaftvs estsmate of thi5 liability at the date of approving these acC(￿nts. Tangibh fixed assets • FUMitu￿ and equipmnt Expenditure on the purchase and replacement of fumrture and equipment ¢osting in excess of £sc￿ is capitalised and depwaled over fve years. Mthere il is aSS￿lated th maintenance of the premise5 a knnger period may be used tmjl never nKJre than the remaining kne term. • Catering equipnEnt Expendrture on the purthaseand rep1a￿rnent ofcalering equpmenl is capitalised and depreciated over ten years. • IT equipment and softw¥e Expendf(ure on the purchase and repLgcement of IT equipment and sor￿are costing in excess of £SOO is capitalised and depreciated over four years. Unkn"131 August 2021 a pemd of three years was used. Debio Debtors are recojnised at their settknient amount, less any provision for non-recoverability. Prepayments are valued at the arTh)unt prepa￿. They have been discounted to the present value of the fiJture cash receipt vthere such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturty of less than three Ir￿snthS from the date of wuisrtion. credito￿ and provisions Creditors and provIs￿nS are recc*Jn￿ed wthen there is an ctsligation al the balance sheet date as a result of a past event, rt is probab￿ that a transfer of economic benefft will be uired in settlement. and the amount of the settlement can be eslimaled ￿lIablY. Credrtors and provisions are recognised at the amount the charrty anticipates tt will pay to settle the debt. They have been discounted lo the present value of the frJture cash payment where such discounting is material. Funds The funds of the school cc*mprise reslrcted fvnds which must be applied for specific purposes in accordance wrth donorfs wishes and unrestr￿ted funds whrh are availab￿ for use in fijrtherance of the school's objectNes at the discretKsn of the govemors and Iru51ee5. Pension cosls The charity operates a defined contribut￿n scheme. wth AvTva. for le￿hIng staff from 1 January 2021. Contribut￿n$ in respect of the defined contribution scheme are charged to the statement of financLal ￿t￿rtieS ilthen they are payable to the sehemè. The charty has no Ikabilty beyond making rts contribuh.ors and paying &r<>ss the deductions for the employee contributKmS. The charity also operates a defined ¢onlribulion scheme. the Peoples Pension. for non- teaching staff. Contribulbons in respecl of the defined contribution scheme are charged to the ststernenl of financial XIN￿eS when they are payable to the scheme. The charity has no liability beyond making its contrbulions and paying across the deductions for the ernploy￿ contribut￿￿￿. Lycée Inlemational de Londres 22 Principal accountlng pollcles 31 August 2023 Leased assets Rentals app1Kab￿ to operating leases where substantially all of the benefits and iisks of ownership remain vthh the lessor are charged to the statement of financial actwrties on a slravJht4ine basis over the term of the kase. Lycée International de Londres 23 Notes to the accounts 31 Augusl 2023 l. Income from donations Unrgstri¢ted fvnds £'ooo Rgstrlcted funds £'ooo 2023 £'ooo onat50ns 11 otal funds 11 un￿triCt￿y fvnds £'ooo ReSt￿ted fvnds £'OLX) 2022 £,(￿0 natrons otal fund5 16 16 2. Income from school fees and related cha U#￿trIcted I￿ndS £'ooo Re$trkted funds £'ooo 2023 £'ooo re-wistralw fees eg15trats.on fees od fees fter School actiwi*S ire ol facilit￿$ uke of Edinburgh awards sc*eme evision 31 233 12.122 135 31 233 12,122 135 11 65 14 14 xams 282 13.a43 282 13,043 23 Total funds Unrestrided fijnds £'(J)o R85ti1￿¢d fijnds 2022 £'o re-registrats.￿ fees agtstration fee5 od fees fter School actmtss ire of facilit*s uke of Edinbvrgh awards sckne 37 249 11,173 155 143 69 37 249 11,173 155 143 69 ams 62 67 62 67 11.962 022 Totsl fuThJs 11 11.962 Lycée Internat￿)nal de Londres 24 Notes to the accounts 31 August 2023 3. Ex nditure on rovislon of education Unyestrlcted Restrictod funds £'ooo 2023 £'ooo £'ooo Recruitrnenl costs alaries and wages {rK*te 6) her staff costs Pfetntses chool rnanagernent a￿j admintstration overna￿e costs (note 41 13 Total lunds 116 6,78S 322 6,785 322 4,678 1,827 32 13.760 10 4,688 1,827 32 13,770 10 UnresirKted Restricted fijnds £'o 2022 £'o(x) ecruiknent ￿ksts alaries and wages (nots 61 ther staff costs remises chod management and adminv6trab¢ Vernar￿ casts (note 4) 022 Total fLSnds 77 77 5,946 127 4,521 1.414 27 12.112 127 4.476 1.414 27 12,067 45 45 4. Governance costs Unrestrictsd fvnd$ £'ooo R•stricled fvnd$ £'ooo 2023 £'ooo 81 and prOfeSs￿al fees uditorfs iernunerath.on (1￿1l￿*"r*J VAD Statutory audrt seNices Other serwce5 023 Total fund¥ 16 16 13 13 32 32 UnreslrKted Js R8Stricted Jnds £'ooo 2022 £'ooo Legal ar*Y professkmal fee5 l￿11￿$ remuneration [1￿11*11￿j VATJ . Statutory audrt 5er%*es 022 Totsl fvjnds 17 17 10 10 27 27 Lycée Intemational de Londres 25 Notes to the accounts 31 A￿uSt 2023 5. Net expenditure and net movement In funds This ts stsled after ehargmg". 2023 £'o 2022 £'oc#) tafl costs (Thole 61 preciafron uditorfs rernuneration Statuto audit servTces Other services ratirwj lease commilments 6,785 5,946 13 10 3,208 3,207 6. Staff costs and remuneratlon of key managemenl pernonnel a) Slaff costs 2023 £'ooo 2022 £'o ges and Sa￿￿$ crdl secunty costs ension ujsts 5.587 640 558 6.785 4,￿8 557 5,946 b) Stsff Costs 2023 £'ooo 2022 £'ooo tsff rx¥sts per fU￿n *ere as folows.. èaching remises 4711 150 1.924 6.785 4,165 154 1.627 chcd management and admin6trab.on c) Stsff numbers The average nurnber of empbyees during the year. anaWsed by funclffi, was.. Average Full tlme Average headeount equrvalent headcount 2023 2022 Full time equwalent 2022 2023 eathir*J Slaff remBes 74 73 71 67 chool managerne￿ and *JmintstraD 42 37 114 48 125 37 109 Lycée Intemational de Londres 26 Notes to Ihe accounts 31 August 2023 Staff costs and remuneration of key management personnel Icontinuedl d) Higherpaidstaff The number of empkjyees who eamed an annualised salary of £60,000 or rTh)re {excluding employer pensron contribul￿n$ bLrt including taxab￿ beneftsi duriThJ the year was as follows.. 2023 2022 No. 60.CQ1 _ £70.&)0 70.(K11 - £80.￿0 80,(￿l- £90,(MJO g0.CQ1 - £100.000 20.001-£230.0(XI 12 Pension contributions of £215.65912022 - £71.752) were made for the above employees during the per￿￿. •) Key Managem￿¢Pe￿￿￿el The key management personnel of the charity in charge of directing and controlling the charity comprise the trustees and the 8 (2022 - n members of the senior leadership team. The running and ope(atirKJ of the charity on a day lo day basis is delegated lo the senKJr leadership team. The total renwneration (including taxable benefits, employerfs pensKJn contribut￿)n$ and employerfs natsonal insuran￿) of the key management personnel lor the year was £99).672 (2022 - £752.781). The governo￿ recevRd no remunetstion (see note 71. Trustees. and governovs. remunernOon No trustee ty govemor recewed any ￿ muneralion in respect of Iheir seNices during the year12022 - none). No trustee or govemor recewed any rewnbursement of expenses duri the year12022- none). Two govemors currenty have chibjren attending Ihe school12022- Taxation Lycée Inlemational de LOnd￿S is a registered chanty and therefore is not liab￿ to income tax or corporation tax on incorre or gains derived from its charrtable activities. as they fall within the various exemptions availab￿ to registered charrties. The corporats.orb lax charge in 2022 was in ￿SpeCt lo traJirwJ ￿tmt￿ (the hwe of fxilthies). 2023 £'ooo 2022 £'ooo orpordtion tsx urrent tax on profits for the year 12 Lycée Intemational de Londres 27 Noles to the accounts 31 AUg￿$t 2023 Tangible fixed assets IT and Catemg solh¥aFe eouiwent £'ooo vipnent Totsl £'ooo At 1 Septenknr 2022 Athyitions DisposaLs At 31 ALb3USt 2023 1.fj61 1.615 197 11021 1,710 421 3.697 274 11021 3,869 1.738 421 Depreeiaiion At 1 septernt￿ 2022 Charge for the year Elwninated on dwal At 31 A￿U$l 2023 1.475 1,405. 177 11021 1,480 271 42 3.1S1 299 11021 3.348 1.SSS 313 N•t book valu85 At 31 August 2023 At 1 Sek)tember 2022 183 108 150 521 $46 210 10. Debto 2023 e'ooo 2022 £'ooo Fees and charges Prepayments and accrued irtome undry debtors 10.168 8,991 163 10,603 11. Credito￿. amounts fallin due withln one ear 2023 t'ooo 2022 £'wo xpense t￿ditorS ayroll creditors ccruals Deferred incx)me includiryj fees in adv* er tsxatkJn 2nd soci21 securty CA￿$ her creditors 334 29S 102 14.247 158 31 14.937 12.274 137 27 12,839 Lycée Intemational de Londres 28 Notes to the accounts 31 ALthJUSt 2023 Credito￿. amounts falling due within one year (continu&d) Ir￿luded within the at￿ is deferr&l i￿orne. TeL￿.ng to fees recewed in advarKe. as sel out belowT. 2022 £,￿0 2022 £'ooo eferred incx)me b ht fowrd at 1 Septemter 2022 rought forwa￿ funos re￿a$&y in the year rtK)nal irKome deferrwj duriThJ the yeaf ferred InCc￿ carried fon¥ard at 31 August 2023 12.274 112,2741 14,247 14,247 11,823 111,8231 12,274 12,274 12. Restricted funds The income funds crf the 5th￿1 include restricted funds ccmprisiw the followiryJ un8xpended balances lo be applied for 5pecrfc purposes.. September 2022 31 August 2023 £'ooo Income xpendlture £'ooo Fixed assets eStriCt￿ donab'ons 27 Isi Isi 22 Sept￿ber 2021 31 August 2022 £'ooo IncL Expendiiure £'ooo £.￿0 ixed assets 72 1451 27 The fryed asset fvnd ￿lateS to fved assets don*ed or cash received lo acquire Specific rrxed assets. The restricted donations fiJrKI relate5 to a donation received from APLIL, the parents, assOc￿li0n, for the improvernent of the 5erbior kjunge. 13. Analysls of net assets between funds Fund balarKes at 31 August 2(r23 are ￿presented by.. Unrestricted fund$ £'ooD Restricted fund5 £'ooo 31 August 2023 £'ooo angible fixed assets urrent assets urreni liabibts.ès otsl nèt assots 499 14.624 {14.9371 22 521 14,624 114.9371 208 22 Lycée Internatronal de Londres 29 Notes to the accounts 31 AwJust 2023 Anatysls of net assets betwfftn funds {eontinued} Unrestricted ftjnds £'ooo ReStr￿ted funcls £'ooo 31 August 2022 £'ooo argits￿ fixed assets U￿rni assets 519 13,217 112.839) 897 27 546 13,217 112.8391 924 urrent liabilit*S olal net assets 27 14. Leasing commltments At 31 August 2023, the sch(￿1 the f011c￿.ng future minimum commrtmenls under non- cancellable opeTrting knes as folh)ws'. 31 Atygust 2023 £'ooo 37 August 2022 £'ooo nd and bulldlno9 Payments whKh fall d￿". Wrthin one year One tri h¥0 years Two lo five years Due after fve years 3,200 3,2t)O 9,600 73,067 3,200 3.200 9.600 78.267 31 August 2023 t'ooo 31 AugLLSt 2022 £'oc(J qulpme ayments whth fall d￿.. thin one year Or£ to years after fve yea 15. Related parties Rent of £3,200.000 (2022- £3.2￿,0CQl was charged under ￿ operating l&ase by Wembley Education Chantable Trust IWEcf), a charity whth has a commn truslee, Mr A Vaissié, wrth Lycée Inlemational de Londre& Lycée Intemational de Londres 30 The Trustees Lycée International de Londres 54 Forty Lane Wembley HA9 9LY 17 May 2024 ## **Our ref LYC001/CHB/FD** Dear Trustees ## **Post-Audit Report – Year ended 31 August 2023** The purpose of this letter is to bring to the attention of the Board as those charged with governance the findings from our recent audit of the financial statements of Lycée International de Londres, for the year ended 31 August 2023, for your consideration and to enable you to address matters arising where appropriate. Throughout this letter, “you” and “your” refer to the Board. “We” and “our” refer to Buzzacott LLP. We appreciate that you will already be aware of some of the matters contained in this letter. However, in accordance with International Standards on Auditing (UK) (ISAs) we are communicating them to you formally. ## **1. Purpose of the audit** As auditor, we are responsible for performing the audit in accordance with ISAs (UK), which is directed towards forming and expressing an opinion on the financial statements for the year ended 31 August 2023 that have been prepared by management with the oversight of those charged with governance, and other matters required by legislation. Our work has been carried out in accordance with our audit planning letter dated 7 November 2023. Our audit work included consideration of the internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of your system of internal control. The matters being reported are limited to those that were identified during the audit and that we conclude are of sufficient importance to merit being reported to those charged with governance. Buzzacott LLP is a limited liability partnership and is registered in England and Wales with registered number OC329687 A list of LLP members is available at our registered office address as above. Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales. ## **2. Audit progress** There were delays in receiving information required for the audit, with draft accounts including disclosures notes only being received on 12 December, whereas per the planning letter we expected to receive this information on 1 December 2023. In addition, at the point of initial drafting this management report, we had yet to receive the trustees’ assessment of going concern and as such are unable to conclude on whether the going concern basis of preparing the accounts is appropriate. This is of particular importance given that as at 31 August 2023, the charity has negative free reserves and is in a net current liability position. We were also awaiting an updated bad debt provision breakdown to reflect amounts that should be written-off due to being irrecoverable, as well as awaiting an updated version of the trustees report and a set of financial statements which includes all disclosures (e.g. key management personnel remuneration). However, we would like to take this opportunity to thank all those with whom we dealt during the audit for their assistance and co-operation, in particular Ms Min Zhu and Mr Laurent Batut. ## **3. Annual report and financial statements’ format** The financial statements have been prepared, as last year, in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS 102). There are no significant changes to the format of the financial statements this year. ## **4. Auditor’s report** We do not propose any modifications to our audit opinion and, therefore, we intend to issue an unqualified opinion in our auditor’s report. The wording of our auditor’s report is unchanged from last year. ## **5. Adjustments made during the audit** A list of the adjustments which have been made to the figures presented to us for audit is attached as Appendix A. These have all been discussed and agreed with Min Zhu. We will obtain written representations from you, as trustees, that you concur with these adjustments. ## **6. Unadjusted misstatements** A list of misstatements identified during our audit which remain unadjusted is attached in Appendix A. The list does not include items which are considered to be clearly trivial. We will obtain written representation from you, The Trustees Lycée International de Londres Page 2 of 20 17 May 2024 as trustees, that these are not to be adjusted, due to their lack of significance to the overall result portrayed by the financial statements. ## **7. Accounting policies, accounting estimates and disclosures** The accounting policies used in preparing the financial statements are unchanged from the previous year. Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the charity. We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the charity. However, we wanted to draw your attention to the bad debt provision. As detailed in Appendix A, we have raised an adjustment to write-off amount relating to historic aged debt from the debtors listing and bad debt provision breakdown. From our debtors work performed, we did not identify any further amounts requiring a provision, however from our testing of the provided amounts we noted one amount of £11k which had been provided for but then subsequently recovered. We are satisfied that the bad debt provision at the year end is materially correct, however we recommend that the provision is kept under review to ensure amounts provided for are appropriate. ## **8. Letter of representation** We enclose the draft letter of representation which we will request management and the trustees to approve and sign at the same time as the financial statements. This includes acknowledgement of the trustees’ responsibility for the design and implementation of internal controls to prevent and detect fraud. As set out in our planning letter, we understand the following applied to the year ended 31 August 2023. - Trustees exercised effective oversight of management's processes for identifying and responding to the risks of fraud in the charity and a system of internal controls was in place to mitigate these fraud risks. - Trustees were not aware of any instances of actual, suspected, or alleged fraud, including misconduct or unethical behaviour related to financial reporting or misappropriation of assets. - There have not been any out of the ordinary transactions. If the above information is no longer correct, please contact Catherine Biscoe or Freya Diffey. ## **9. Accounting and internal control systems** Our work during the audit included an examination of some of the charity’s transactions, procedures and controls with a view to expressing an opinion on the financial statements for the year ended 31 August 2023. The Trustees Lycée International de Londres Page 3 of 20 17 May 2024 This work was not directed primarily towards discovering weaknesses, other than those that would affect our audit opinion, or towards the detection of fraud. We have included in this report only matters that have come to our attention as a result of our normal audit procedures and consequently our comments should not be regarded as a comprehensive record of all weaknesses that may exist or of all improvements that might be made. We found no significant deficiencies in the accounting and internal control systems during our audit. However, we have made some recommendations for improvements, which are detailed in the section below. ## **10. Observations and recommendations on the accounting system and financial reporting function** The table below provides a summary of any observations made concerning weaknesses in the charity’s accounting and internal control systems. Observations included in the “A” grade (red) banding indicate that, in our opinion, there is a risk of significant financial impact on the charity that must be addressed immediately. “B” grade (orange) banding recommendations relate to those issues where there is a risk of moderate financial impact on the charity, such as a control failure or the absence of a control in an area of moderate risk. These items should be addressed shortly. Observations included in the “C” grade (yellow) banding indicates that the matter, although important, does not warrant urgent attention and should be addressed within an agreed timeframe. |**Priority**|**No of points**|**Relating to**| |---|---|---| |**A**|**1**|Doubtful debts| |||Credit card authorisation| |**B**|**3**|Online banking access| |||Declarations of interest| |**C**|**1**|Credit cards| |**Advisory**|**2**|Cyber essentials accreditation| |||Disaster recovery plan| Further details in respect of the observations and recommendations as a result of our audit work are given in Appendix B. The matters have all been discussed with Min Zhu and Laurent Batut, who have appropriate management authority. The Trustees Lycée International de Londres Page 4 of 20 17 May 2024 ## **11. Prior year observation** We are pleased to report that the following observations made last year have been satisfactorily dealt with: ## **Priority Relating to** - Duplicate payment **A** - Depreciation overstated - Control account balances ## **12. Materiality** ## **Materiality threshold £196,000** ## **Reporting threshold: £9,800** Materiality refers to the relative significance of a particular matter in the context of the financial statements as a whole. An item would be considered material if its omission or its erroneous inclusion would reasonably influence the decisions of those using the financial statements. We are required to report corrected audit misstatements, and uncorrected audit misstatements in excess of our reporting threshold which is set at 5% of overall materiality. Our materiality threshold is based on 1.5% of incoming resources. A lower level of materiality may be selected for specific areas of the financial statements and for some disclosure items e.g. transactions and other financial arrangements with trustees and their connected persons. When considering the impact of misstatements discovered during the course of our audit and considering the implications for our report of such misstatements, we will refer to this level amongst other things. Whether a misstatement is ‘material’ or not is ultimately down to the auditor’s judgement. ## **13. Professional ethics** In accordance with our profession’s ethical guidance and further to our letter to you dated 7 November 2023 confirming audit planning arrangements there are no further matters to bring to your attention in relation to Integrity, Objectivity and Independence. The Trustees Lycée International de Londres Page 5 of 20 17 May 2024 ## **14. Current developments** We have attached a summary of other recent and ongoing developments as Appendix C to this report. The matters included in this appendix may not all be directly relevant to the charity. However, we are aware that a lot of trustees are involved with more than one organisation, therefore we have included items for general information. ## **15. Updates, insights and seminars** As part of our commitment to the charity sector, during the year the Charity Team issues occasional Updates and Insights on matters of relevance to the sector and also holds a number of seminars free of charge throughout the year. We would be delighted to welcome representatives of your charity to our seminars or to add trustees and management to our email distribution lists if this would be welcome. News and Insights are also available on our website at News and insights (buzzacott.co.uk), where there is also an opportunity to sign up to our mailing list should you wish. ## **Conclusion** This letter has been prepared for your private use only. It has been prepared on the understanding that it will not be shared with any third party without our prior written consent and we can therefore assume no responsibility to any other party. Any recommendations contained herein are based on the information you have provided and UK law and judicial and administrative interpretation as of the date of this letter. Should the facts provided to us be incorrect or incomplete, or should they change, our recommendations may be inappropriate. Buzzacott LLP accepts no liability for losses arising from changes in UK law, interpretation or practice or in public policy that are first published after the date of this letter. If you require any further information or assistance, we shall be very pleased to help you. We would be pleased to receive your comments and reaction to this letter. Yours faithfully The Trustees Lycée International de Londres Page 6 of 20 17 May 2024 ## **Appendix A: Adjusted and unadjusted misstatements** ## **Adjusted misstatements** |||**Statement of Financial Activities**|**Statement of Financial Activities**|**Balance Sheet**|**Balance Sheet**| |---|---|---|---|---|---| |||**Debit**
**£**|**Credit**
**£**|**Debit**
**£**|**Credit**
**£**| |**1**|DR Fixed Assets
CR Expenditure
_Being the capitalisation of an item_
_identified during repairs and maintenance_
_testing._||10,253|10,253|| |**2**|DR Income
DR Bad debt expense
CR Trade debtors
_Being the write-off of a bad debt for one_
_student and correcting the debtor figure_
_being overstated for one student and_
_understated for another student._|22,294
18,703|||40,997| |**3**|DR Bad debt provision
CR Trade debtors
_Being the write-off of historic bad debt_
_provisions relating to 2018/19 and_
_2019/20._|||124,992|124,992| The above adjustments had the effect of increasing the charity’s deficit by £30,744. In the operating lease commitments note, the amount due after 5 years had been calculated incorrectly as £44,267 but has now been updated to £73,067. In the fixed asset note, a £102k presentational adjustment has been made to show the accumulated depreciation eliminated on the disposals as a separate line instead of being netted off against the depreciation charge for the year. The Trustees Lycée International de Londres Page 7 of 20 17 May 2024 A presentational adjustment was also raised in relation to the number of staff disclosed as higher paid employees as follows: |as follows:||| |---|---|---| |**Disclosure:**|**Per draft**
**accounts**|**Per Auditor**| |£60,001 - £70,000|10|12| |£70,001 - £80,000|8|8| |£90,001 - £100,000|1|1| |£110,001- £120,000|1|-| |£220,001 - £230,000|-|1| |£240,001 - £250,000|1|-| ## **Unadjusted misstatements** |||**Statement of Financial Activities**|**Statement of Financial Activities**|**Balance Sheet**|**Balance Sheet**| |---|---|---|---|---|---| |||**Debit**
**£**|**Credit**
**£**|**Debit**
**£**|**Credit**
**£**| |**1**|DR Debtors
CR Creditors
_Being the reclassification of debit balances_
_within the trade creditors listing._|||20,510|20,510| |**2**|DR Accruals
CR Tax charge
_Being the reversal of the tax accrual as_
_potentially taxable income is below the_
_small trading exemption limit_||9,567|9,567|| The above adjustments would have decreased the charity’s deficit by £9,567. The Trustees Lycée International de Londres Page 8 of 20 17 May 2024 ## **Appendix B: Audit observations and recommendations** |||**Observation**|**Implication**|**Recommendation**|**Management response**| |---|---|---|---|---|---| |**A**||Doubtful debts*:We noted that
historic debtor balances, including in
respect of ‘Les Petit Lutins Nursery’
are still being carried in the debtors
ledger although we understand the
debt is irrecoverable. We note that
these debts have been fully provided
against as doubtful.|If the debtors ledger includes debts
which are irrecoverable it does not
show an accurate position and time
may be wasted in trying to recover
such amounts.|We recommend that the debtors
ledger is tidied and all irrecoverable
amounts written off.|A Debt Management Policy has been
drafted, to be discussed and
approved by the Finance Committee.| |**B**||Credit card authorisation:Our audit
testing of credit card transactions
found that there is no implicit proof
of authorisation of credit card
transactions. We understand that
the current process is that a one-
time-passcode is sent to the COO so
the COO is able to approve the final
payment. However, there is no
evidence that these transactions
have been reviewed.|If the individual transactions are not
reviewed, there is a risk that some
credit card expenditure may not be
appropriate expenditure.|We would recommend credit card
transactions are approved with
signature or email authorisation to
ensure that all expenditure is
appropriate.|Email authorisation is chosen from
April 2024 onwards to ensure that all
expenditure is appropriate.| The Trustees Lycée International de Londres Page 9 of 20 1 May 2024 |**B**||Declarations of interest:We noted
during our work on related party
transactions that the charity does
not require its trustees and key
management personnel to
document their close family
members for the purposes of
identifying transactions with related
parties.
In addition, we noted that
declarations of interest forms did
not include all interests as listed on
Companies House and Charity
Commission website.|Without such a procedure in place,
there is a risk that the charity may
unknowingly engage in transactions
with close family members of
trustees or management, or
organisations controlled by these
individuals.
Furthermore, failure to disclose
transactions with the individuals
noted above may represent a
material inaccuracy in the charity’s
financial statements, since
transactions with connected parties
are generally considered to be
material by nature.|We recommend that the charity
expands its declaration of interests
forms to include the close family
members of trustees and
management, as well as any business
ventures controlled by close family
members.
In addition, trustees and
management should be reminded
that declarations of interest should
include all interests, and the forms
should be cross-referred to
Companies House and Charity
Commission to ensure
completeness.|We will use the expanded
declaration forms provided by our
auditor from the year 23/24
onwards.| |---|---|---|---|---|---| |**B**||Online banking access:From review
of users with access to online
banking, we noted that this included
employees who are no longer
employed by the charity.|There is a risk that employees who
have left the charity could access the
online banking and set-up
unauthorised payments. This is
mitigated in this instance as in order
to access online banking, the
individual must have a secure key on
which they receive the OTP to login,
and these are now kept in a locked
drawer to prevent access.|Whilst we note that management
are in the process of removing these
individuals from the online banking,
we recommend that this process is
completed on a more timely basis
once employees leave.|Those ex-employees have been
removed and we will make sure this
process will be completed on a more
timely manner from now on.| The Trustees Lycée International de Londres Page 10 of 20 17 May 2024 |**C**||Credit cards: As part of testing
performed, we noted that credit
cards are still held for employees
who have now left the organisation.|There is a risk that employees who
have left could access the credit
cards to make unauthorised
payments. Note that in this instance
this is mitigated as the credit card is
kept in a locked drawer and the OTP
verification is sent to the company
phone, which is in the possession of
a current employee.|We recommend that credit cards are
cancelled or the details updated on a
more timely basis after an employee
leaves.|The credit card has already been
cancelled and we will deal with the
matter more timely from now on.| |---|---|---|---|---|---| |**Advisory**||Cyber essentials accreditation: From
our review of IT controls we noted
that Lycée do not currently have any
cyber security accreditation.|The benefits of the certification
include increased confidence from
customers and users, improved
cyber security awareness, and
reduced risk of cyber attacks.|We would recommend Lycée
consider obtaining cyber security
accreditation.|IT manager has been informed and
will settle this matter in the near
future.| |**Advisory**||Disaster recover plan:We noted
from review of IT controls, that
Lycée does not currently have a
formal IT system disaster recovery
plan in place.|In the case of a significant adverse
cyber attack or IT system failure,
Lycée may not be adequately
prepared to take appropriate action,
resulting in loss of data, funds, or
disruption of operations.|We recommend that a disaster
recovery plan is prepared and
reviewed by the Board, and that
once in place, a dry run of the plan is
undertaken.|The IT manager is working on getting
the cyber security accreditation and
on a business continuity plan. As part
of the plan to make our network
more resilient, we are working to get
a second broadband provider with
an improved bandwidth.| The Trustees Lycée International de Londres Page 11 of 20 17 May 2024 ## **Revised Auditing Standard** ## **Trustees’ Annual Report and Accounts** ## **Changes to UK GAAP** In March 2024, the Financial Reporting Council published amendments to _FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland_ . The amendments encompass a number of changes including: - a new model of revenue recognition designed to align UK GAAP with IFRS 15 _Revenue from Contracts with Customers_ ; - a new model of lease accounting which brings assets under operating leases on to the balance sheet, designed to align UK GAAP with IFRS 16 _Leases_ ; and - various other incremental improvements and clarifications. The amendments will be effective for accounting periods beginning on or after 1 January 2026 and can be read at: https://media.frc.org.uk/documents/Amendments_to_FRS_102_and_other_FRSs.pdf ## **Development of new Charity Statement of Recommended Practice (SORP)** The new Charities Statement of Recommended Practice (SORP) had been expected to be published in August 2024 but will now be delayed until the amendments to the underlying financial reporting standards are issued. An update on the revised timeline of publishing will be issued in due course. Background on the 15 topics for change that have been considered by the SORP Committee are available at: https://charitysorp.org/engage-briefings-to-inform-the-engagement-process-in-developing-the-next-sorp ## **Company size thresholds** The Government intends to lay legislation this summer to increase the (financial) thresholds that determine company size by 50%: - Micro entity thresholds will move from not more than £632,000 turnover to not more than £1m with the balance sheet total threshold increasing to not more than £500,000; - Small entity thresholds will increase to not more than £15m turnover, from £10.2m with the balance sheet total threshold increasing to not more than £7.5m; and The Trustees Lycée International de Londres Page 12 of 20 17 May 2024 - The upper medium threshold will move to not more than £54m with the balance sheet total threshold increasing to not more than £27m. Any company above the upper medium threshold would be classified as large. If legislation is passed, the thresholds are set to come into effect from financial years starting on or after 1 October 2024. Further detail can be found at: https://questions-statements.parliament.uk/written-statements/detail/2024-0319/hcws354 ## **Changes to UK Company law** The Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023 meaning that Companies House will have more power to play a more significant role in tackling economic crime and supporting economic growth. Some of the changes introduced have a direct impact on how accounts are prepared and filed, whilst others impact how company information is collated, checked and stored. A summary of key changes are listed below: - Requirement for anyone setting up, running or controlling a company to verify their identity; - Method of filing accounts will be moved to being by software only; - Approach to filing small and micro entity accounts will be streamlined, with the option to file ‘abridged’ accounts being removed; - Updates to disclosures surrounding audit exemptions; - Limited partnerships will need to provide more information to Companies House with filing done by agents; and - Individuals will have the ability to suppress certain parts of personal information that historically appear on public record. Further details can be found at: https://changestoukcompanylaw.campaign.gov.uk/ One of the biggest practical changes that will impact registered companies is the need to provide email addresses for Companies House with the aim to phase out paper correspondence in due course. Information on this change can be found here: https://www.buzzacott.co.uk/insights/companies-house-registered-email-addresses HMRC have also confirmed that they plan to reduce the volume of phone calls received by its advisers by 30% by the end of 2024 in a bid to improve the quality of service provided and to encourage people to use its digital services. The Trustees Lycée International de Londres Page 13 of 20 17 May 2024 ## **Charities Act 2022** The phased implementation of the Charities Act 2022 is now complete with all changes now being applied. The key changes relate to how trusts and unincorporated associations make changes to governing documents, new rules around selling, leasing or disposing of land and new guidelines on how gifts to charities that are merging are treated. Further information can be found at: https://www.gov.uk/guidance/charities-act-2022-guidance-for-charities ## **Sustainability and reporting** Whilst many companies and organisations are including sustainability and climate change-related information in their annual reports, only the largest private and listed companies are required to provide such information. This disclosed information is not yet subject to any independent ‘checking’ which has resulted in the ‘greenwashing’ claims about some unverified information contained in annual reports. June 2023 saw the issue of the first two international sustainability reporting standards aimed at improving trust and confidence in company disclosures about sustainability and climate change. The two IFRS Sustainability Disclosure Standards are internationally effective from 1 January 2024 although they have not yet been adopted by UK standard setters. However, it is likely that compliance will become mandatory in the near future. To begin with, the obligation may only be for large companies but, the ‘trickle down’ process is likely to require many organisations to ensure that they can provide adequate information to others in their supply chain who have the reporting obligation. As is usually the way, the reporting obligation will ultimately be extended to smaller and not-for-profit entities. In anticipation of the above, it is advisable to start discussions around sustainability reporting and data early and more information can be found at: https://www.ifrs.org/issued-standards/ifrs-sustainability-standardsnavigator/. ## **Policy and Governance** ## **Charity Commission 2024-2029 Strategy** The Charity Commission has published its new strategy with five key priorities: - To be fair and proportionate in its work and clear about its role; - To support charities to get it right but take robust action where they see wrongdoing and harm; - To speak with authority and credibility, free from the influence of others; - To embrace technological innovation and strengthen how its data is used; and The Trustees Lycée International de Londres Page 14 of 20 17 May 2024 - To be the expert Commission - where its people are empowered and enabled to deliver excellence in regulation. The regulator is in the process of identifying a set of strategic impact measures which will be published in mid2024. The Commission aims to report against those measures for the first time in the Annual Report for 2024-25, which will be published in July 2025. The full strategy can be read at: https://www.gov.uk/government/publications/charity-commission-strategy2024-2029/charity-commission-strategy-2024-2029 ## **UK Corporate Governance Code 2024** The UK Corporate Governance Code was revised in January 2024 with the key focus being to enhance transparency and accountability of UK premium listed companies and help support the growth and competitiveness of the UK and its attractiveness as a place to invest. The Code does not set out a rigid set of rules; instead, it offers flexibility through ‘comply or explain’ reporting against the Provisions. The main change in the 2024 Code is a new requirement under Provision 29 for a declaration of effectiveness by the board in relation to material controls which will come into force on 1 January 2026. The other, less substantial, changes to the Code will take effect from 1 January 2025. The full Code can be read at: https://media.frc.org.uk/documents/UK_Corporate_Governance_Code_2024_kRCm5ss.pdf A summary of key changes since the 2018 Code, as published by the FRC, can be found at: https://media.frc.org.uk/documents/UK_Corporate_Governance_Code_2024_Key_Changes.pdf ## **Charity Commission guidance on investing charity money** The Charity Commission has recently streamlined its guidance on investing charity money making it more accessible to trustees. Amongst other things, it: - reminds trustees’ of their principal duty to further their charity’s purposes as part of setting and reviewing its policy on investments; - reiterates that trustees’ own judgement may be used on whether to restrict investment in organisations that contradict their mission; - Advises that trustees may also choose to integrate environmental, social and governance issues into their investment strategy to either boost returns or protect their reputation; - Advocates working with a professional firm to manage investments; and The Trustees Lycée International de Londres Page 15 of 20 17 May 2024 - Acknowledges that there may be potential conflicts of interest that affect the use of particular advisors (e.g. if they are recommending to use their own funds or services without being able to demonstrate why those will serve a charity’s purposes better than others). The full guidance can be read at: https://www.gov.uk/government/publications/charities-and-investmentmatters-a-guide-for-trustees-cc14 ## **Charity Commission guidance on cost of living pressures** The Charity Commission has published guidance on managing financial difficulties as a result of the cost of living crisis covering key topics regarding trustee duty and decision-making, practical tips on what to do in situations where charities are in financial difficulty, what to do if the charity cannot continue to operate and a reminder on reporting serious incidents. The detailed guidance can be seen at: https://www.gov.uk/guidance/manage-financial-difficulties-in-your-charityarising-from-cost-of-living-pressures ## **Charity Fraud Report 2023** The Fraud Advisory Panel issued its 2023 Charity Fraud Report in January 2024 following a survey of 121 charities, of which 62% generated income of over £10m, within the UK. The below key findings were noted: - 36% of charities have experienced more instances of fraud than in the previous year; - 50% of detected frauds were perpetrated internally (by staff, trustees or volunteers); - 67% of charities agree that the cost-of living crisis has increased fraud risk; and - 92% of charities experienced financial losses due to fraud (compared to 69% in 2022), with there being a shift to higher value frauds (over £10,000) taking place. The report identifies that the most common frauds relate to misappropriation of cash or other assets, expenses, procurement, false beneficiaries or cyber matters with two-thirds of charities reporting that frauds were detected as a result of internal controls in place indicating the importance of designing a control environment with fraud risk at the centre. Fraud prevention strategies include ensuring robust policies are in place (and are being followed) on cybersecurity, anti-fraud and conflicts of interest, whilst also ensuring adequate training is provided to those associated with the charity on a regular basis. A fraud response plan should also be devised and implement in case of any adverse event. The Trustees Lycée International de Londres Page 16 of 20 17 May 2024 The full report, including the Panel’s top tips for preventing fraud (on page 22 and 23) can be read at: https://www.fraudadvisorypanel.org/document/2023-charity-fraud-report/ ## **Additional questions on Charity Annual Returns** The questions posed in the Charity Commission’s Annual Return have been updated for financial years starting on or after 1 January 2023. The most significant changes relate to smaller charities where, depending on the level of income, the number of responses required may be reduced. Narrative changes to some questions have been made to improve clarity and improvements in the glossary and guidance have also been made to help charities answer questions quickly and accurately. The detailed list of questions can be found at Appendix 8 at the following link: https://www.gov.uk/government/consultations/charity-commission-revisions-to-the-annual-return-2023-25 ## **Guidance on internal controls** The government has updated their guidance (CC8) on internal financial controls for charities. The revised guidance includes updates on digital payment systems, fraud and cybercrime. The Charity Commission's internal control checklist, a tool available for trustees and charity management to check controls against the latest legal requirements has also been updated to reflect the latest guidance. The Charity Commission recommends that internal financial controls should be reviewed at least once a year. The updated guidance and checklist can be found at Internal financial controls for charities at https://www.gov.uk/government/publications/internalfinancial-controls-for-charities-cc8 ## **Trustee Quiz** The Charity Commission has released a new Trustee Quiz to enable trustees to test their knowledge of their roles and responsibilities. It is aimed to engage trustees with questions based on everyday scenarios in a bid to identify any knowledge gaps and to act as a refresher for all trustees. The quiz takes three minutes to complete with feedback provided for each question and a score out of 10. The quiz can be found at: https://beingacharitytrustee.campaign.gov.uk/take-the-trustee-quiz/ ## **UK employment law** A number of employment law regulatory changes have taken place in recent months including increases in statutory sick pay, updated redundancy pay calculations and national minimum wage increases which can impact organisations and their HR processes and documentation. The following insight provides detailed commentary on the changes and information on how Buzzacott can support: https://www.buzzacott.co.uk/insights/an-update-onuk-employment-law-2023 The Trustees Lycée International de Londres Page 17 of 20 17 May 2024 A further development in 2024 was confirmed by the UK government who will be tripling the penalties for employing illegal workers from a minimum of £15,000 to £45,000 per worker: https://www.buzzacott.co.uk/news/penalties-for-employing-illegal-workers-in-the-uk-are-set-to-triple ## **Tax** ## **Spring Budget 2024** The Chancellor of the Exchequer, Jeremy Hunt, presented the Spring Budget Statement on 6 March 2024. The key changes relate to an increase to the VAT registration threshold to £90,000, new tax credits within the creative industries and reductions in national insurance contributions from 6 April. The rate of capital gains tax on residential property will also be reducing to 24% from this date but for individuals, there are planned increases in passenger duty and vaping excise duty. Further detail and analysis can be seen at: https://www.buzzacott.co.uk/news/spring-budget-2024 ## **Charity tax returns – why are they so important?** Whilst it is not compulsory for charities to file a tax return, HMRC is able to perform random checks on charities to ensure exemptions are being claimed correctly. There is no blanket exemption on income generated by a charity because of their charitable status. If a charity receives income that does not fall under the available exemptions, then the profit element of the income will be subject to tax. The main forms of exempt charitable income are: - Donations and legacies; - Trading income, where this derives from activities in furtherance of or ancillary to the charity’s objectives, or activities carried out by the charity’s beneficiaries; and - Certain investment and property income. If there is non-charitable trading income that does not fall under the above exemptions, the small-scale taxable trades exemption can be applied whereby a tax liability will not be applied if the non-charitable trading income is less than 25% of the charity’s total income, subject to a cap of £80,000. If £80,000 is breached, the total noncharitable trading income will be taxable. Further information can be found at: https://www.buzzacott.co.uk/insights/charity-tax-returns-why-are-they-soimportant The Trustees Lycée International de Londres Page 18 of 20 17 May 2024 ## **Charity Commission tax guidance** The Charity Commission has published guidance on direct tax obligations of charities and reliefs available. It is designed to allow charities access to relevant resources in one place with the guidance being available at: https://www.gov.uk/government/publications/charities-detailed-guidance-notes ## **Navigating the Employment Allowance and Apprenticeship Levy** HMRC is warning certain clubs and associations that they may be liable to pay the Apprenticeship Levy (AL) and are also no longer eligible for Employment Allowance (EA) relief. The complexity of understanding eligibility for both the EA and the AL is the requirement to look beyond the payroll of the immediate employer and add the value of total payroll or the secondary Class 1 NIC liability of any connected employers. These rules are applicable whether an organisation is assessing eligibility for EA or AL. Many unincorporated associations such as clubs, societies, religious bodies, amateur sporting bodies, and political parties, should be aware of these rules. Further information can be found at: https://www.buzzacott.co.uk/insights/navigating-the-employmentallowance-and-apprenticeship-levy ## **Charity tax compliance consultation** HMRC are seeking views on several areas of concern (mainly in relation to abuse) in a consultation process which came to an end on 20 July 2023. The four areas that came under review were on charitable investments, noncharitable expenditure, tainted charity donations and filing obligations. HMRC do not intend to change the purpose of existing rules but want to ensure that they continue to be fit for purpose. The results of the consultation have not yet been published but information on the process can be found at: https://www.gov.uk/government/consultations/charities-tax-compliance/consultation-charities-tax-compliance ## **IR35 and off-payroll working rules** New off-payroll working rules were introduced in April 2021 that impact the tax compliance burden for organisations who use project-based contractors. Details of the rules can be found at: https://www.buzzacott.co.uk/insights/new-off-payroll-working-rules-ir35-starting-from-april-2021 ## **Benefits in kind** On 16 January 2024 the government announced that it will mandate employers to report and collect Income Tax and Class 1A National Insurance contributions on employment benefits through payroll software from 6 April 2026. This means that the 2025 to 2026 tax year will be the last year that employers will be able to file P11Ds and The Trustees Lycée International de Londres Page 19 of 20 17 May 2024 P11D(b)s with HMRC in most cases. From this date, tax on employment benefits will be collected in real time and not through tax codes in arrears. Class 1A National Insurance contributions will also be collected in real time for each pay period rather than at the end of the year. These changes aim is to reduce the administrative burden for employers with draft legislation due to be published later this year. ## **Business and non-business activities – new HMRC VAT guidance** On 1 June 2022, substantial changes were made to HMRC’s Business/Non-Business manual. Previously, HMRC have applied a ‘business test’ derived from case law of 40 years earlier. The new guidance prefers a ‘two-stage test’ derived from a Court of Appeal case heard in 2018. The test is: 1. Does the activity result in a supply of goods or services for consideration? 2. Is the supply made for the purpose of obtaining income on a continuing basis? HMRC identify the following types of organisation as being affected by the change in the test: - Charities and not-for-profit organisations; - Businesses providing nursery and crèche facilities; - Entities that receive grants or subsidies; and - Any entity carrying out non-business activities. In practice, most charities have both business and non-business activities, so awareness of the new test is important in relation to claims for VAT relief and on deduction of VAT on costs. Many disputes with HMRC have been about charities seeking zero-rating for buildings used for non-business activity. It has emerged in 2023 that HMRC’s new policy may affect entitlement to zero rating of building work retrospectively despite their earlier assurances that it was effective only from June 2022. Detail on these changes can be found at: https://www.gov.uk/government/publications/revenue-and-customsbrief-10-2022-vat-business-and-non-business-activities The Trustees Lycée International de Londres Page 20 of 20 17 May 2024