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2021-06-30-accounts

The Chartered Association of Business Schools

Annual Report and Financial Statements

30 June 2021

Charity Registration Number 1162854

Contents

Reports
Reference and administrative details 1
Report of the Council 3
Independent auditor’s report 19
Financial statements
Statement of financial activities 23
Balance sheet 24
Statement of cash flows 25
Principal accounting policies 26
Notes to the financial statements 31

The Chartered Association of Business Schools

Reference and administrative details

Members of the Council (Trustees) Professor Robert MacIntosh (Chair)
Professor Martin Broad (Vice Chair)
Professor Baback Yazdani (Treasurer)
Professor Gloria Agyemang
Professor Mohammad Ali
Professor Catherine Cassell
Professor Toni Hilton
Professor Steven McGuire
Professor Heather McLaughlin
Professor Kamil Omoteso
Professor Stewart Robinson
Professor Eleanor Shaw
Co-opted Council Members Dr Emm Barnes / Janine Ellis
Secretary to the Council Daniel Walsh
Chief Executive Anne Kiem
Registered and operational office 3rdFloor
40 Queen Street
London
EC4R 1DD
Telephone 020 7236 7678
E-mail enquiries@charteredabs.org
website www.charteredabs.org
Charity registration number 1162854
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Lawyers Penningtons Manches Cooper LLP
125 Wood Street
London
EC2V 7AW

The Chartered Association of Business Schools

1

Reference and administrative details

Bankers Shawbrook Bank
Lutea House
Warley Hill Business Park
Brentwood
Essex
CM13 3BE
CAF Bank Ltd
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Investment managers CCLA Investment Managers
Senator House
85 Queen Victoria Street
London
EC4V 4ET

The Chartered Association of Business Schools

2

Report of the Council Year ended 30 June 2021

The Council presents its annual report and audited financial statements for the year ended 30 June 2021 for The Chartered Association of Business Schools (“the Charity” or “the Association”).

The financial statements have been prepared in accordance with the accounting policies set out on pages 26 to 30 of the attached financial statements and comply with the charity’s Royal Charter, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), effective from accounting periods commencing 1 January 2015 or later.

Introduction

The Chartered Association of Business Schools advances the education of the public in business and management in particular through the promotion of management education, training and development so as to improve the quality and effectiveness of management in the United Kingdom.

Objectives and activities

As articulated in the Royal Charter, the Association’s objective is the advancement of education for the public benefit by:

Our mission

Supporting and championing business schools for the benefit of business and society.

We deliver our mission through:

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Our mission (continued)

We’re mindful of significant changes in our operating environment:

Our Priorities for the year ahead are:

Our objectives

We meet our objectives through the following activities:

Professional development

We support the development of staff across a number of roles in business schools. Our professional development programmes, conferences and events help develop strategy, skills and knowledge for deans, directors of research, directors of learning and teaching, directors of executive education, heads of professional services, and staff responsible for international strategy, communications and administration.

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Our objectives (continued)

An important element of our support for professional development is the Certified Management & Business Educator, a CPD recognition scheme for qualified or experienced educators.

Building networks and knowledge

We act as a hub for sharing new ideas, sector insights and developing best practice. Through our work, members build and maintain valuable networks within the business school community through which individuals are able to identify common challenges, find support and benchmark progress.

Lobbying and influencing

We represent UK business schools to business and government. We engage them on the benefits the sector has on the economy and society, and we seek to influence them on the issues that may affect business schools’ ability to deliver high value and impact for students, businesses and wider communities.

The members of the Council confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Association’s objectives and aims and in planning future activities.

Review of activities and future plans

The impact of Covid-19

Covid has continued to have a material impact on our work, although along with everyone else, we hope that the coming year will bring a return to a more normal way of operating. We have really missed being able to organise in person gatherings with our members. For the majority of the financial year, our offices were closed and while some of us have started to return, at least occasionally, we have not been able to have the whole team gathered together in the office since March 2020. No members of staff were furloughed, and we did not have to make any redundancies.

No meetings or conferences were able to be held in person, but we have maintained our usual suite of conferences and workshops online. Our development programmes all moved online, with the lack of networking over breaks and dinners being part compensated by the reduction in price. As a result, income from our usual activities decreased, as did the accompanying expenditure.

We continued with a large number of specialist and free to attend community meetings. These proved very popular as a way of members being able to keep in touch with each other and discuss how they were responding to the continuation of the pandemic. These will likely continue post-pandemic, but their frequency will decrease as in-person meetings become possible.

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Review of activities and future plans (continued)

Government funded programmes

In 2019 the Chartered ABS was awarded funding through the Department for Business, Energy and Industrial Strategy (BEIS), to conduct a small, randomised control trial through Small Business Charter accredited schools to test the most effective way to support microbusinesses with adoption of technology. Because of Covid this programme changed to a general support function for micro-businesses.

Following on from this, the SBC schools were asked by the Department to provide a general support programme for SMEs through the early Covid months. This programme, the Small Business Leadership Programme (SBLP) was delivered from August 2020 to end of March 2021, whereupon an extension to end of May was granted. In this time over 2,700 SMEs benefitted from the course against a target of 2,000, and which was delivered by 20 SBC schools in England. The independent evaluation was full of praise for the speed at which the Chartered ABS and the business schools were able to respond.

As SBLP was drawing to a close we signed a much larger contract with BEIS to deliver the Help to Grow: Management programme to 30,000 SME leaders over a three-year period. This has resulted in significant recruitment activity to ensure we have the appropriate resources in place to deliver this and has also resulted in a very large number of schools expressing an interest in becoming SBC accredited so that they are eligible to help deliver the programme. Pleasingly, this programme is available across the UK and not just in England. This programme is an enormous vote of confidence in business schools to be able to work together to effectively deliver the programme for the benefit of business leaders and the economy at large.

Lobbying and advocacy

For the most part we have all spent the past year concentrating on delivering effective learning for the students at business schools. We continued to respond to consultations, some which were a direct result of the pandemic, for example the timing of the REF. Research has remained a high profile area with the consultation on the support of PhDs, other work undertaken by the ESRC including the lead role of business schools in cooperation between universities and business.

We supported the work of the British Academy in their ‘observatory’ work, which this time centred on business schools.

Perhaps the highlight of the year in this respect was the Chancellor of the Exchequer coming to speak to the deans and at a deans’ community meeting, and then to have both him and the Secretary of State for BEIS attend business school meetings to see the Help to Grow Management programme in action.

The Scottish Committee secured a really useful meeting with the Convenor of Universities Scotland. We maintain a good working relationship with Welsh Government and have met with colleagues there a number of times over the past twelve months.

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Review of activities and future plans (continued)

We maintain close connections with our key partners, which include: British Academy of Management; Department for Business, Energy and Industrial Strategy; Confederation of British Industry; the Federation of Small Businesses; British Council; Association to Advance Collegiate Schools of Business; and Policy Connect.

Development programmes

Thanks to the encouragement of Council, we continued to run our suite of development programmes, all ran virtually to great demand. The lack of opportunity for meeting face-toface meant the price was considerably lower. Recognising the enormous benefits of meeting in-person for such activities we will be reintroducing that element as soon as we can.

The Deans’ and Directors’ Development Programme (3DP) for those new in post as a dean, or aspiring to the role, is facilitated by Professor Simon Collinson. We are grateful to Simon for the excellent work he is doing in helping to prepare future business school leaders.

The ever-popular Leaders in Learning & Teaching programme (LLT) for Directors of Learning and Teaching is being expertly facilitated by Loughborough’s Dr Keith Pond for the last time. The next facilitator will be Dr Cathy Minett-Smith from University of the West of England.

The Development Programme for Directors of Research (DPDoR), which we offer in partnership with BAM, has continued under the excellent guidance of Professor Graeme Currie from Warwick Business School. We are happy to announce that Professor Natasha Mauthner from Newcastle University Business School will be the next facilitator.

Conferences

The four annual conferences (Chartered ABS Annual Conference, Professional Managers’ Annual Conference, Annual Research Conference, and Learning, Teaching & Student Experience) were a great success, despite the shift to the online format. We had record numbers at three conferences and maintained our usual attendance at the fourth. It is very apparent that online does have advantages over in person events. Many more people were able to attend parts of the conferences, an option not previously available, and of course there was no additional disruption caused by the need to travel and to stay overnight. We were also able to offer compelling pricing that reflected the lower cost to us in hosting them. A further positive was the diversity of speakers we were able to secure, given that they too were not encumbered by travel requirements.

We have learned a lot from the past year, but we also know that as much as we have been able to drive broader participation, stronger relationships can be built by in person gatherings. We will return to such events, but hope to learn and maintain some aspects of virtual delivery.

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Review of activities and future plans (continued)

CPD workshops and joint events

We have continued our series of seminars including our biannual Executive Education Symposia which have been delivered online and which will return to in-person events as soon as possible. We have continued our series of CMBE CPD workshops to offer practical guidance about teaching practice. Delivered through a network of facilitators these short course online programmes have been very well received and will continue online and inperson in 2021-22. We have continued our SBC events that enable knowledge exchange between SBC member institutions, and these are set to grow and evolve in 2021-22. Over the year we have we run a number of co-hosted events to help our members connect with communities in other part of the world. These include events with AACSB, the Australian Business School Deans Council and the Business Schools Association of Canada.

Committee work

In addition to the Council we have ten committees and two working groups – having formed the Race Equality Action Group in 2021. Three of our committees put out calls for new members this year and received over 50 responses. We are delighted that over 140 people representing around 80 of our member institutions sit on these groups. Due to continued demand from the business school community, in 2021 we maintained our series of free, regular on-line community meetings, with topics and speakers chosen by the Committees. 2021 also saw the formation of our New Deans Network.

Publications

This year we published our third Taskforce report; this one on Business Schools and the Public Good. It is full of examples of the often-unrecognised work that business schools engage in. This report was also supported by the ITN Productions work on Business Schools for Good, which is available on our YouTube channel. We are grateful to the Taskforce members for their work, especially those independent of the sector. We are also grateful to the co-Chairs Tom Levitt and Professor Martin Kitchener for their year long work in producing this important publication.

We have produced a number of other publications, some new and some part of our usual annual cycle. In addition to the NSS reports for both business and management, and law; the Research income reports for both subject areas; Graduate outcomes; we produced a report on UCAS end of cycle analysis, and Trends in the provision and popularity of business school programmes.

We also continue to publish short Learning and Teaching papers in our “Perspectives on” series.

We published a report from one of our Scholarship recipients from Adam Smith Business School: The Digital One Minute Paper.

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Review of activities and future plans (continued)

Certified Management & Business Educator (CMBE)

The CMBE has reached its second anniversary and we are delighted with the breadth of engagement and continued growth. There are now CMBEs in over 80% of UK business schools and in 28 countries worldwide. Academics holding the CMBE have collectively committed to undertake over 40,000 hours of continuous development in their teaching over those two years, which is a fantastic achievement we can all be proud of, even more so during the pandemic. We’re very grateful to the excellent work of the CMBE Professional Standards Board in overseeing this important work, and to the many CMBEs that volunteer to run CPD events and contribute to this growing community.

Small Business Charter

It has been a very busy year for the Small Business Charter as we are now delivering our third Government funded programme to support SMEs. We have seen a very pleasing influx of interest shown in the SBC from schools with 36 accredited and many more planned assessments until the end of the year. With the demand of delivering the Help to Grow: Management programmes to 30,000 SME leaders in a three-year period, we will need all these schools and more, whilst maintaining the high standards demanded by the Charter.

The success of these programmes has helped raise the profile and understanding of business schools amongst those in the political arena and the wider public. We can expect that many of those who have been on one or more of these programmes will derive sufficient benefit to encourage them to maintain their relationship with the business schools well beyond the completion of the programme.

This is a really exciting juncture for the SBC and we had been working on since its inception.

Media coverage

Our media profile has been further enhanced by the Small Business Leadership Programme and the Help to Grow: Management programme. Off the back of these programmes the Chartered ABS, the Small Business Charter, and our members have received coverage across national, regional and trade press, including BBC News and BBC radio.

Digital communications including website and newsletters

Both the Chartered ABS and Small Business Charter websites had record levels of traffic. The Chartered ABS website had 400,000 page views to pages other than the Academic Journal Guide. With over 50,000 newsletter subscribers, our platforms continue to be excellent channels to showcase the work of the sector and encourage debate and knowledge sharing.

Academic Journal Guide

The 2021 edition of the Academic Journal Guide was published on 24 June. We are grateful for the work of the Management Committee, the editorial team and the Scientific Committee during the pandemic. This was a full review and an expanded Guide with 1,700 journals included. We are pleased with the dialogue with the community around responsible usage of the Guide and we look forward to carrying this forward into the 2024 edition.

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Report of the Council Year ended 30 June 2021

Objectives and activities (continued)

Review of activities and future plans (continued)

Equality, Diversity and Inclusion

Equality, diversity and inclusion are important to us and we actively promote our strategic principles on diversity. These principles are embedded in our work and activity and promoted to our members. In the past year we published our ‘Principles on diversity, equality and inclusion’ on our website and every committee has been asked to reflect on this in terms of their work for the Chartered ABS.

At the suggestion of our EDI Committee we established a Race Equality Action Group, to help steer our work in this area. The word “action” is key in this title.

Committee reports

Research Committee

The Annual Research Conference was held online on 11 May 2021 and attracted 120 attendees, which is similar to the attendance at a face-to-face event. A KEF working group formed of members of the Research Committee met during the year. A survey on characteristics of senior research roles in UK business schools was completed which identified training needs for DoRs and established a benchmark related to characteristics of this type of role. New formats for the DPDoR were also explored during 2021. The Committee helped progress the Chartered ABS response to the Declaration on Research Assessment (DORA).

Learning, Teaching and Student Experience (LTSE) Committee

The LTSE Conference took place online on 29 – 30 June and had a record attendance, with much positive feedback. The Committee produced a collaborative and supportive platform for members of the learning and teaching community to develop new ideas without having to make a substantial time commitment in the form of the new ‘Perspectives On: Dynamic Conversation’ initiative which was announced at the LTSE Conference with a call for contributions. It is hoped that the first ‘Dynamic Conversation’ consisting of a compilation of papers centred on a dialogue will be published in September as a special edition and be accompanied by a panel discussion.

The committee continued to support the Certified Management & Business Educator (CMBE) initiative and the Leaders in Learning & Teaching (LLT) development programme.

Professional Managers Committee

The 2021 Professional Managers’ Annual Conference (PMAC) took place on-line on 28 – 29 April and was well attended with positive feedback. The professional managers’ development matrix was completed and published on the Chartered ABS website.

The committee’s paper proposing a research project to evidence the impact of centralisation of services on business school professional services teams was approved by Chartered ABS Council and will begin later this year.

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Report of the Council Year ended 30 June 2021

Committee reports (continued)

Executive Education Committee

The Committee held a Symposium on 22 June 2021 on the Level 7 SLMDA, which was well attended, with speakers from industry including the NHS. A second Symposium is planned for November 2021. The committee will be collaborating with the Research Committee/KEF Working Group to consider how business schools work with KEF. Following market testing a development programme in executive education, which would cover building internal capacity, as well as internationalisation and with modules on Covid delivery, is being created. Chartered ABS are in the process of appointing a facilitator who would be involved in the design.

International Committee

At the start of the year the committee set out three core priorities for 2021: student access and immigration; international mobility; and digital paths to internationalisation and new realities. It was decided to hold a series of webinars throughout the year to support these priorities. The first of these was held on 27 April on ‘How virtual exchanges and mobility programmes are challenging the traditional paradigms of student mobility’ with two guest speakers and a high number of registrants. A follow up blog was published on the Chartered ABS website. A second webinar and a workshop are planned for the autumn.

Equality, Diversity and Inclusion (EDI) Committee

The committee took forward a number of initiatives this year – it drafted a set of EDI principles for the Council’s committees to adhere to when appointing members. These were approved by Council in June. It oversaw the introduction of the Race Equality Action Group and receives updates and minutes of the Group’s meetings; the committee drafted a proposal for a joint Chartered ABS – BAM research project for an annual review of academic gender and race equity in terms of processes and outcomes over five years. This is to be considered by Council later this year; Planning for an event on de-colonising the curriculum; Liaising with the LTSE Committee and the Award Gap Group; Liaised with the Business Schools Association of Canada on strengthening its EDI functions.

Scottish Committee

The Committee has focused on relationship building during this year, having liaised with Scottish Enterprise; proposed the creation of a case study depository for Scottish business schools; and liaised with Universities Scotland. In May the Committee hosted an on-line discussion with the Convenor, Universities Scotland, which covered the areas of research, teaching and policy. The Convenor looks forward to having further dialogue with Chartered ABS and with the Scottish Deans in the future.

Membership and Fellowships Committee

Prior to this year’s open call for nominations for Fellows, the Committee met to review, and make some adjustments to, the current criteria for Fellowship. Following this, the call was placed on the Chartered ABS website and the Deans of member schools were notified directly. The following were appointed: Professor Georgina Andrews, Professor Julia Clarke, Dr Andrew Glanfield and Professor Mark Hart.

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Report of the Council Year ended 30 June 2021

Committee reports (continued)

Scholarships Committee

The Scholarships Committee met informally throughout the year to monitor the progress of the current scholarships and to consider possible changes to how scholarships will be awarded in future.

Academic Journal Guide Management Committee

The Management Committee operates to good effect over five time-zones; a reflection of the international expertise on the committee. This year they successfully oversaw the delivery of the publication of the AJG 2021.

Remuneration Committee

The Remuneration Committee, which is responsible for, inter alia, the levels of salaries of the Chief Executive and other Chartered ABS staff, has conducted its business via remote meetings to enable it to consider all pertinent items in making its decisions this year.

The salary revisions that we delayed last year have since been implemented, reflecting the financial position of the Association.

Apprenticeships Working Group

The Chair continued to have input into and discussions with IfATE and ESFA - in particular the Group submitted comments to an IfATE consultation on ‘Best Practice in Degree Apprenticeships’. Group members took part in a symposium on Level 7 SLMDA organised by the Executive Education Committee. The Group initiated a proposal for a paper on social mobility, and began to collect data and case studies with a view to having the study ready by Spring 2022.

Race Equality Action Group

This Group held its first meeting in January and immediately started a number of initiatives. A priority matrix has been created, with five clusters of work: leadership and culture; staff development and progression; curriculum and students; research; and partnerships and collaboration. These are being actioned by sub-groups. Group members are also working with the Chartered ABS on an event on decolonising the curriculum, and members have also volunteered to work on a joint BAM/EDI Committee project.

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Report of the Council Year ended 30 June 2021

Financial review

Results for the period

A summary of the Association’s results for the period is given in the statement of financial activities on page 23 of this annual report and financial statements.

The total income for the year was £10,759,116 compared to £1,654,521 in the prior year. The significant increase was driven by Government funded programmes delivered through the Small Business Charter, under restricted funds.

The total expenditure for the year was £10,412,251 compared to £1,458,157 in the prior year. The significant increase was likewise driven by Government funded programmes with funding being transferred to the SBC schools delivering the programmes.

In addition to the above, investment gains of £42,493 (2021: £36,282) were experienced, resulting in a surplus for the year of £389,358 (2020: £232,646), leaving the Chartered ABS in a healthy financial position at year end.

Financial position

The total net assets of the Chartered Association at 30 June 2021 were £1,853,438 (2020: £1,464,080), which were represented by unrestricted funds of £1,672,341 (2020: £1,349,238) and restricted funds of £181,097 (2020: £114,842).

Reserves policy

The intention of the Council is for the Chartered ABS to have reserves to cover between nine and 12 months, preferably towards the higher end. In this calculation we exclude the Government funded programme costs, as these are fully funded through the programmes. However, the standard SBC activities are included within the policy. In essence this means we are looking to hold between £1.15m and £1.5m. At 30 June 2021, the Association’s free reserves were £1,407,270. The purpose of reserves is to ensure we are able to withstand any financial shocks, as could have been the case in 2020-21, if a large proportion of our membership is unable to pay their membership subscriptions and have limited finances to fund events attendance.

This has proven a prudent approach and has offered the Association some comfort during the difficult economic times impacting our members and therefore us. We had expected to make a deficit this year, but in the end made a small surplus before the contribution to salaries arising from the Government funded programmes. Our reserves policy remains unchanged.

Council recently approved additional staffing to support the work of the Chartered ABS in delivering value for its members and should enable us to produce more research reports and more events, whether they be online or in-person. The costs associated will reduce the reserves through the coming year and Council is discussing other events and services we may be able to provide to enhance our service to our members.

It is the intention for the SBC restricted funds represent 75% to 100% of annual income.

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Report of the Council Year ended 30 June 2021

Investment Policy

In 2019 Council selected to place some of our reserves in a charity investment fund with CCLA. This has reaped rewards in the short-term, although this investment was made as a long-term proposition. Given the initial turmoil in the world markets Council elected to only assign half as much as it originally intended in to, into the fund. The Council review the performance of the fund and remain satisfied with the performance to date, which has driven returns well above holding the funds just in cash. Council has recently made the decision to invest a further £250,000 in the fund, taking the full invested amount to £500,000.

The Chartered ABS will use the investment return to fund activities of the Association for the benefit of its members and in line with the strategy as determined by the Council. It is acknowledged that the principal risk to perpetual reserves such as these is inflation. The policy is to ensure the real value of our reserves are maintained as a minimum. The plan is to distribute 3-4% in perpetuity, and therefore an appropriate medium level of risk will be tolerated.

The trustees are able to tolerate volatility of the capital value of the investment, as long as the Association is able to meet its short-term funding needs through either income or liquid capital assets. Continual underperformance against benchmark will trigger an acceleration of the review of the fund manager. The Association’s assets can be invested widely and may be diversified by asset class, by manager and by security. Assets should be invested in line with the aims of the Association and should be made in an ethical and sustainable way and should, for example, exclude investments in gambling, tobacco, controversial weapons, and adult entertainment.

Governance, structure and management

Governance

The Chartered Association of Business Schools is governed by a Council whose members are voting members from our member business schools. Members are elected annually at the Chartered ABS Annual General Meeting, held in November, with approximately one third of the Council stepping down after their three-year terms each year. The Royal Charter and ByeLaws of The Chartered Association of Business Schools, its incorporating document, lay down the powers, authorities and responsibilities of the Council.

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Report of the Council Year ended 30 June 2021

Governance, structure and management (continued)

Members of the Council

Members of the Council (who are also trustees of The Chartered Association of Business Schools for the purposes of charity law) who served during the period and up to the date of this report were:

Professor Gloria Agyemang
Professor Mohammad Ali
Professor Martin Broad
Professor Catherine Cassell
Professor Nola Hewitt-Dundas Resigned September 2020
Professor Toni Hilton
Professor Robert MacIntosh
Professor Steven McGuire
Professor Heather McLaughlin
Professor Kamil Omoteso
Professor Stewart Robinson
Professor Eleanor Shaw Appointed November 2020
Professor Baback Yazdani

In addition to the above elected members, Dr Emm Barnes was a co-opted member until June 2021 when she was replaced by Dr Janine Ellis.

Induction and training of Council members

Newly appointed Council members, whether elected or co-opted, are provided with an induction pack, which includes the Charter and Bye-Laws, the Charity Commission’s guide to responsibilities of trustees (‘The Essential Trustee (CC3)’), terms of reference and the latest minutes of the Council and the most recent annual report and financial statements.

All Council members have been provided with a copy of the SORP (FRS 102) which contains the reporting requirements applicable to the financial statements of charities. Council members also have open access to the Secretary to the Council and the senior staff for advice and information.

Governance arrangements

The Council has ten committees: Research; Learning, Teaching and Student Experience; Scottish; Professional Managers; Executive Education; International; Equality, Diversity and Inclusion; Academic Journal Guide; Membership and Fellowship; and Remuneration. The Council members receive reports of all committee activity and also the activities of the Apprenticeships Working Group and the Race Equality Action Group. The terms of reference for all committees are established by the Council and available on the Chartered ABS website.

Small Business Charter

The Small Business Charter (SBC) has its own Management Board, although the annual budget is approved by Council. Within the financial statements the SBC funds are treated as restricted funds.

CMBE Professional Standards Board

The PSB oversees the running of the CMBE, especially in regards to the standards of admission and compliance within the scheme.

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Report of the Council Year ended 30 June 2021

Governance, structure and management (continued)

Responsibilities of staff

The Chief Executive is appointed by the Council and has full executive authority for the management of the Association and its staff, as well as devising and recommending to Council suitable strategies and policies and implementing the plans and budgets approved by the Council.

Key management personnel

The Council consider that they, together with the Chief Executive, the Director of Communications and External Relations, and the Finance and Office Manager, comprise the key management personnel of the Association. None of the Council members receive any remuneration from the Association for serving on the Council. The annual pay of all members of staff, including the Chief Executive, is set by the Remuneration Committee and approved by the Council. See note 7 for further details on staff costs.

Further details of transactions with Council members are disclosed in note 12.

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Report of the Council Year ended 30 June 2021

Statement of responsibilities of Council members

The Council members, who are trustees under charity law, are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Association at the balance sheet date and of the income and expenditure for that period.

In preparing those financial statements Council is required to:

The Council members are responsible for keeping adequate accounting records that are sufficient to show and explain the Association’s transactions and disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, and The Chartered Association of Business School’s Charter and Bye-Laws. The Council is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Council is responsible for the maintenance and integrity of the financial information on the Association’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. The members of the Council confirm that as far as they are aware, there is no relevant audit information of which the Association’s auditor is unaware. They have taken all the steps that they ought to have taken as Council members in order to make themselves aware of any relevant audit information and to establish that the Association’s auditor is aware of that information.

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Report of the Council Year ended 30 June 2021

Risk management

During Council meetings, the Council regularly assesses the major risks to which the Association is exposed, in particular those relating to reputation, operations, finances and delivery of value to the membership. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the Association, they have established effective systems to mitigate those risks.

As in any membership organisation there is a risk of loss of membership income; however, with an active member engagement strategy and providing events and reports that are of value to members, this should be mitigated, as far as possible.

The financial risks are exacerbated by Covid-19 and the economic impact of that on the membership. With in-person events planned for the coming year there is a risk associated with organising events that later need to be cancelled, and the risk that any event impacts the spread of the virus amongst staff and participants. This is mitigated with careful planning, contracting and insurances.

The Government funded programmes have required a rapid increase in the number of staff. There is a concern about our ability to attract and retain appropriate staff. This is mitigated by ensuring we offer attractive working conditions. There is also a concern about the impact of these programmes on cashflow. There is a regular meeting between the Officers of the Council and the Senior Management to review cashflow to ensure the risks are contained.

Approved by the Council and signed on its behalf by:

Professor Robert MacIntosh

Chair

Approved by the Council on: 9 September 2021

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Independent auditor’s report Year ended 30 June 2021

Independent auditor’s report to the members of The Chartered Association of Business Schools

Opinion

We have audited the financial statements of The Chartered Association of Business Schools (the ‘charity’) for the year ended 30 June 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the accounts, we have concluded that the Council Members’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

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

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

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Independent auditor’s report Year ended 30 June 2021

Other information

The Council members are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Council members

As explained more fully in the statement of responsibilities of the Council members, the Council members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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Independent auditor’s report Year ended 30 June 2021

Auditor’s responsibilities for the audit of the financial statements

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

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

We assessed the susceptibility of the financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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21

Independent auditor’s report Year ended 30 June 2021

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the Council members, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Council members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the Council members, as a body, for our audit work, for this report, or for the opinions we have formed.

Shachi Blakemore

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 20 October 2021

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

The Chartered Association of Business Schools

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Statement of financial activities Year ended 30 June 2021

Notes Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Income from:
Donations
1
Charitable activities
2
Other income
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net income before gains on investments
Gains on revaluation of investments
9
Net income and net movement in funds
Reconciliations of funds
Fund balances at 1 July 2020
Fund balances at 30 June 2021
18		 12,676
940,949
12,953		 —
9,792,538
—		 12,676
10,733,487
12,953
966,578 9,792,538 10,759,116
12,676
673,292		 —
9,726,283		 12,676
10,399,575
685,968 9,726,283 10,412,251
280,610
42,493		 66,255
—		 346,865
42,493
323,103
1,349,238		 66,255
114,842		 389,358
1,464,080
1,672,341 181,097 1,853,438

The charity has no recognised gains and losses in the period other than those shown above.

Notes Unrestricted
funds
£		 Restricted
funds
£		 2020
total funds
£
Income from:
Donations
1
Charitable activities
2
Other income
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net income before gains on investments
Gains on revaluation of investments
9
Net income and net movement in funds
Reconciliations of funds
Fund balances at 1 July 2019
Fund balances at 30 June 2020
18		 25,044
1,134,203
7,249		 —
488,025
—		 25,044
1,622,228
7,249
1,166,496 488,025 1,654,521
25,044
982,926		 —
450,187		 25,044
1,433,113
1,007,970 450,187 1,458,157
158,526
36,282		 37,838
—		 196,364
36,282
194,808
1,154,430		 37,838
77,004		 232,646
1,231,434
1,349,238 114,842 1,464,080

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23

Balance sheet 30 June 2021

Notes 2021
£		 2020
£
Fixed assets
Tangible fixed assets
8
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
11
Net current assets
Total net assets
The funds of the charity:
Unrestricted funds:
. General funds
. Designated funds
17
Restricted funds
15
18		 —
328,775
895,316
2,239,359		 —
286,282
342,772
1,490,728
3,134,675
(1,610,012)		 1,833,500
(655,702)
1,524,663 1,177,798
1,853,438 1,464,080
1,407,270
265,071
181,097		 1,126,150
223,088
114,842
1,853,438 1,464,080

Approved by the Council and signed on their behalf by:

Chair

Professor Robert MacIntosh Approved on: 9 September 2021

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24

Statement of cash flows Year ended 30 June 2021

Notes 2021
£		 2020
£
376,390
(250,000)
(250,000)
126,390
1,364,338
1,490,728
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Purchase of investments
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 July
B
Cash and cash equivalents at 30 June
B
748,631
—
—
748,631

1,490,728

2,239,359

Notes to the statement of cash flows for the year ended 30 June:

A Reconciliation of net movement in funds to net cash provided by operating activities

2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Gains on investments
(Increase) decrease in debtors
Increase in creditors
Net cashprovided by operating activities
389,358
—
(42,493)
(552,544)
954,310		 232,646
5,572
(36,282)
156,637
17,817
748,631 376,390

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2021
£
2,239,359		 2020
£
Total cash and cash equivalents:Cash at bank and in hand 1,490,728

Analysis of changes in net debt

At 1 July
2020
£		 Cash flows
£
748,631		 At 30 June
2021
£
Cashat bankandin hand 1,490,728 2,239,359

The Chartered Association of Business Schools

25

Principal accounting policies Year ended 30 June 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year ended 30 June 2021 and are presented in sterling and rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the Council and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

The Chartered Association of Business Schools

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Principal accounting policies Year ended 30 June 2021

Assessment of going concern

The Council have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Council have made this assessment in respect to a period of one year from the date of approval of these financial statements.

In making this assessment the Council have paid particular attention to the current environment the members are facing and the impact this may have on the charity. Covid-19 has had a significant impact on our work during the year ended 30 June 2021. We have set a cautious budget for the coming year and expect to make a small deficit. However, we have sufficient reserves to accommodate the expected deficit and do not expect to have to make any significant changes to what we offer our members.

The Government funded programme Help to Grow: Management will provide significant cash flow, although will not have an impact on the bottom line as our costs will be met by the funding and we will not make a surplus on the programme. Most of the funds will flow through to the schools delivering the programme.

We are planning for a return in-person events and courses in the coming year, however, we anticipate numbers of attendees will be lower than we have become accustomed to as universities reduce personal development and/or travel budgets for staff. We also anticipate needing to continue to offer an increased number of events virtually, which will be cheaper to run, and therefore at significantly reduced fees. Our development programmes in particular will be heavily impacted as these cannot as effectively be run in a virtual environment.

Although there are expected to be financial implications as a result of the economic uncertainty, the Council members have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. They are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the financial statements are detailed above.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Income is recognised on an accruals basis.

Income comprises membership fees, income from conferences and events in relation to the Small Business Charter, application and renewal fees, grant income and donations.

Grants are recognised when the charity has confirmation of both the amount and settlement date. In the event that a grant is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Where such grants are funded in arrears, the income is recognised when it is probable that those conditions will be fulfilled in the reporting period, being once the costs have been incurred.

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Principal accounting policies Year ended 30 June 2021

Investment income from listed investments is recognised when received. Gifts in Kind are recognised at the market value of the service or product, being the value as advertised on third party websites. This usually consists of room hires, pro-bono work and salesforce licenses.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure comprises solely of expenditure on charitable activities, which consists of the costs of providing education training to members, running conferences and events, administering the Small Business Charter and running Government grant funded programmes.

Allocation of support and governance costs

Support costs, including governance costs, represent the indirect charitable expenditure incurred in carrying out the primary purposes of the charity. Such costs include the provision of office services and equipment and the public accountability of the charity (including audit costs).

Support costs are apportioned between charitable activities on the basis of staff time spent on each activity.

Pension costs

Retirement benefits to employees of the charity are provided by either the Teachers’ Pension Scheme (‘TPS’), a defined benefit scheme, or a defined contribution scheme provided by AVIVA. The TPS is closed to new employees.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. TPS is a multi-employer scheme and as the charity is unable to identify its share of the underlying (notional) assets and liabilities of the scheme, it has taken advantage of the exemption in FRS 102 and has accounted for the contributions to the scheme as if it were a defined contribution scheme.

The contributions in respect of the defined contribution scheme with AVIVA are recognised in the financial statements in the year which they are payable to the scheme.

Tangible fixed assets

All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised. Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life:

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Principal accounting policies Year ended 30 June 2021

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where 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 maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

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Principal accounting policies Year ended 30 June 2021

Fund structure

The charity has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

General funds

Funds which are expendable at the discretion of the Council in furtherance of the objects of the charity.

Designated funds

The Council have designated certain amounts for specific purposes.

Restricted funds

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

Taxation

The Chartered Association of Business Schools is a registered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

The Chartered Association of Business Schools

30

Notes to the financial statements Year to 30 June 2021

1 Donations and legacies

Donations and legacies
Unrestricted funds
2021
£		 2020
£
25,044
Donations in kind(see note 3) 12,676

2 Income from charitable activities

Unrestricted
funds
£		 Restricted
funds
£		 2021
£
Membership and subscriptions
Conferences and events
Professional development
Small Business Charter
Government grant funded programmes
. Leading to grow programme
. Small Business Leadership Programme
. Help 2 Grow: Management		 706,142
166,734
68,073
—
—
—
—		 —
—
—
268,740
101,839
8,772,116
649,843		 706,142
166,734
68,073
268,740
101,839
8,772,116
649,843
940,949 9,792,538 10,733,487
Unrestricted
funds
£		 Restricted
funds
£		 2020
£
Membership and subscriptions
Conferences and events
Professional development
Small Business Charter
Government grant funded programmes
. Leading to grow programme		 670,013
259,126
205,064
—
—		 —
—
—
253,965
234,060		 670,013
259,126
205,064
253,965
234,060
1,134,203 488,025 1,622,228

3 Raising funds

Raising funds
Unrestricted funds
2021
£		 2020
£
25,044
Donations in kind(see note 1) 12,676

The Chartered Association of Business Schools

31

Notes to the financial statements Year to 30 June 2021

4 Expenditure on charitable activities

Direct
£
130,887
250,853
73,764
178,947
202,485
88,009
8,601,943
589,660
10,116,548		 Support
£
62,223
83,424
34,141
107,159
57,363
4,568
—
11,473
360,351		 2021
£
Membership and subscriptions
Conferences and events
Professional development
Publications and Research
Small Business Charter
Government grant funded programmes
. Leading to grow programme
. Small Business Leadership Programme
. Help 2 Grow: Management		 130,887
250,853
73,764
178,947
202,485
101,839
8,810,730
650,070
10,399,575
Direct
£
151,633
298,797
119,201
104,087
147,915
243,381
1,065,014		 Support
£
109,282
101,657
48,711
49,558
58,891
—
368,099		 2020
£
Membership and subscriptions
Conferences and events
Professional development
Publications and Research
Small Business Charter
Government grant funded programmes
Leading to grow programme		 260,915
400,454
167,912
153,645
206,806
243,381
1,433,113

The above expenditure analysed by fund was:

Unrestricted funds
Restricted funds		 2021
£		 2020
£
673,292
9,726,283		 982,926
450,187
10,399,575 1,433,113

Restricted funds expenditure relates to the programmes detailed in note 15.

5 Support costs

Support costs
2021
£
148,175
52,074
73,536
1,687
—
224
24,112
19,320
41,223
360,351		 2020
£
163,309
64,705
73,644
3,128
5,572
1,902
18,239
16,824
20,776
368,099
Premises costs
Administration
Staff costs
Travel
Depreciation
Other expenses
Governance
. Audit and accountancy fees
. Legal and professional fees

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Notes to the financial statements Year to 30 June 2021

6 Net income

This is stated after charging:

2021
£		 2020
£
Depreciation
Auditors’ remuneration
. Statutory audit
. Other assurance
. VAT and taxation
. Other services
Operating lease rentals
. Land and buildings
. Office equipment		 —
9,750
24,840
2,220
2,850
103,239
5,823		 5,572
11,148
1,020
1,860
2,796
104,465
6,635

7 Staff costs, remuneration of key management and Council members’ remuneration

2021
£		 2020
£
Staff costs during the period were as follows:
Wages and salaries
Social security costs
Other pension costs		 618,072
69,936
77,104		 531,245
60,106
72,278
765,112 663,629

The average monthly number of employees during the year was:

2021
No		 2020
No
Employees 13 12

The number of employees whose total remuneration was over £60,000 in the year were as follows:

No. employees No. employees
2021 2020
£70,001 – £80,000
£120,001 – £130,000
£130,000 – £140,000		 1
—
1		 1
1
—

Key management personnel comprise the Council members, the Chief Executive, the Director of Communications and External Relations and the Office Manager. The total remuneration payable (including taxable benefits, employers pension contributions and employers social security costs) in respect to the key management personnel of the charity was £328,322 (2020 - £321,748).

No Council member received any emoluments during the year for services provided to the Chartered Association of Business Schools (2020 – none). Further transactions with Council members are disclosed within note 13.

The Chartered Association of Business Schools

33

Notes to the financial statements Year to 30 June 2021

8 Tangible fixed assets

Office
equipment
£
Cost
At 1 July 2020 and as at 30 June 2021
Depreciation
At 1 July 2020 and as at 30 June 2021
Net book values
At 30 June 2020
At 30 June 2021		 174,595
174,595
—
—

9 Listed investments

Listed investments
2021
£		 2020
£
Market value as at 1 July
Additions at cost
Net gains on revaluation
Market value as at 30 June
Cost as at 30 June		 286,282
—
42,493		 —
250,000
36,282
328,775 286,282
250,000 250,000

Listed investments held at 30 June 2021 and 30 June 2020 comprised principally of units in the COIF Charities Investment Fund, a United Kingdom common investment fund managed by CCLA Investment Management Limited.

10 Debtors

Debtors
2021
£		 2020
£
Trade debtors
Other debtors
Accrued income
Prepayments		 389,994
31,544
399,170
74,608		 224,740
32,201
11,221
74,610
895,316 342,772

The Chartered Association of Business Schools

34

Notes to the financial statements Year to 30 June 2021

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Trade creditors
Accruals and deferred income
Social security & pension creditor		 1,071,843
518,632
19,537		 14,278
624,395
17,029
1,610,012 655,702

Trade creditors above includes amounts due to Business Schools as part of the Government grant funded programmes. These amounts were settled post year end upon the receipt of the associated funding.

Deferred income relates to membership fees in advance and courses, events and conferences to be held after the year end. Movements on deferred income are shown below:

2021
£		 2020
£
Balance as at 1 July
Amount released to income
Amount deferred in the year
Balance as at 30 June		 552,057
(552,057)
451,646		 575,399
(575,399)
552,057
451,646 552,057

12 Pension commitments

The charity participates in the Teachers’ Pension Scheme and a defined contribution scheme provided by AVIVA. The Teachers’ Pension Scheme is currently closed to new employees. Membership to the AVIVA scheme is available to all employees who are not contributing to the Teachers’ Pension Scheme.

Teachers’ Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations 2014.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The charity is unable to identify its share of the underlying assets and liabilities of the plan.

Accordingly, the charity has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The charity has set out above the information available on the plan and the implications for the charity in terms of the anticipated contribution rates.

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35

Notes to the financial statements Year to 30 June 2021

12 Pension commitments (continued)

Teachers’ Pension Scheme (continued)

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.)

The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2023.

The employer’s pension costs paid to TPS in the period amounted to £53,268 (2020: £49,806).

AVIVA Pension Scheme

This is a defined contribution scheme. Employer pension costs in respect of the scheme amounted to £23,834 (2020 - £22,472).

The Chartered Association of Business Schools

36

Notes to the financial statements Year to 30 June 2021

13 Transactions with Council Members

No Council member received any emoluments during the period for services provided to The Chartered Association of Business Schools (2020 – none).

During the period, no Council member’s were reimbursed for expenses for travel and subsistence (2020 – £nil).

The Council consists of members of senior management from member business schools. All Council members attended events and conferences hosted by the Association during the year (2020 - all). The fees for event attendance were charged on the same terms as for other members and were met by Council member’s respective employers.

14 Financial commitments

At 30 June the Association had total commitments under non-cancellable leases as follows:

2021 2021 2020 2020
Land and
buildings
£		 Office
equipment
£		 Land and
buildings
£		 Office
equipment
£
Operating lease payable
Within one year
Between 2 to 5years		 127,399
241,186
3,069

10,971		 127,399
368,934		 —
—

15 Restricted funds

Restricted funds
At 1 July
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 At 30
June 2021
£
Small Business Charter
Leading to grow programme
Small Business Leadership
Programme
Help to Grow: Management		 114,842
—		 268,740
101,839
8,772,116
649,843		 (202,485)
(101,839)
(8,772,116)
(649,843)		 —
—
—
—		 181,097
—
—
—
114,842 9,792,538 (9,726,283) — 181,097

Small Business Charter

The Small Business Charter is an awards programme run by The Chartered Association of Business Schools but is governed by a separate Management Board. Income received in respect of the awards programme is not in itself subject to donor imposed restrictions; however the Bye-Laws of The Chartered Association of Business Schools stipulate that any surpluses on the awards programme are utilised in a manner approved by the Management Board. The Chair and senior management team of The Chartered Association of Business Schools are not voting members of the Management Board of the Small Business Charter.

While it is the intention that the Small Business Charter awards programme is self-funding, in the event that the programme becomes a drain on the resources of the charity, the Council have the right to close down the Small Business Charter. In such circumstances, any unspent balance on the fund will revert to unrestricted funds in accordance with the absence of conditions attached to the receipt of the associated income.

The Chartered Association of Business Schools

37

Notes to the financial statements Year to 30 June 2021

15 Restricted funds (continued)

Leading to Grow Programme

Leading to Grow Programme relates to funding for the Small Business Charter from BEIS to trial the effectiveness of one-to-one support in accelerating new technology take up by SMEs, including micro-businesses. Because of Covid, the focus has been broadened to include business survival

The programme ran from 1 September 2019 to 31 December 2020. .

Transfers between funds represents staff time spent by Small Business Charter staff on this programme that is not fully funded by the BEIS funding.

Small Business Leadership Programme

This relates to the BEIS sponsored programme to help 2,000 small businesses survive the economic turmoil caused by Covid. It ran from August 2020 to May 2021.

Help to Grow: Management

This relates to the BEIS sponsored programme announced in the Chancellor’s budget in March 2021, with the aim of 30,000 supporting small businesses over three years. Our contract was signed in April 2021 and will run through to March 2024.

At 1 July
2019
£
Income
£		 Expenditure
£		 Transfers
£		 At 30
June 2020
£
Small Business Charter
Leading to grow programme		 77,004
—		 253,965
234,060		 (206,806)
(243,381)		 (9,321)
9,321		 114,842
—
77,004 488,025 (450,187) — 114,842

16 Tangible fixed assets fund

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. The fund recognises the fact that the assets are required for the day-to-day operation of the charity and are not available for other purposes or as a general reserve.

At 1 July
2020
£		 New
designation
£		 Utilised/
released
£		 At 30 June
2021
£
Tangible fixed asset fund — — — —
At 1 July
2019
£		 New
designation
£		 Utilised/
released
£		 At 30 June
2020
£
Tangible fixed asset fund 5,572 — (5,572) —

The Chartered Association of Business Schools

38

Notes to the financial statements Year to 30 June 2021

17 Designated funds

The unrestricted funds of the charity include the following funds designated for specific purposes.

At 1 July
2020
£		 New
designation
£		 Utilised/
released
£		 At 30 June
2021
£
Scholarships fund
New projects fund
Property fund
Investment fund (note 18)
Total		 91,451
25,355
70,000
36,282		 —
—
—
42,493		 (510)
—
—
—		 90,941
25,355
70,000
78,775
223,088 42,493 (510) 265,071
At 1 July
2019
£		 New
designation
£		 Utilised/
released
£		 At 30 June
2020
£
Scholarships fund
New projects fund
Property fund
Investment fund (note 18)
Total		 61,451
25,355
50,000
—		 30,000
—
20,000
36,282		 —
—
—
—		 91,451
25,355
70,000
36,282
136,806 86,282 — 223,088

Scholarships fund

This fund is to be used for Chartered ABS scholars to conduct research relevant for members.

New projects fund

This fund is to be used towards the development of any new major projects the Association undertakes. The last project that fell under this title was the creation of the Certified Management and Business Educator (CMBE) scheme.

Property fund

This fund has been set aside to cover future property related costs.

Investment fund

This fund represents the cumulative unrealised gain on listed investments which cannot be applied towards charitable purposes without prior liquation of investments.

The Chartered Association of Business Schools

39

Notes to the financial statements Year to 30 June 2021

18 Net assets between funds

Net assets between funds
General
funds
£		 Designated
funds
£		 Restricted
funds
£
—
—
—
399,170
(218,073)		 Total funds
2021
£
Tangible fixed assets
Investments
Current assets
Current liabilities
Total		 —
250,000
2,549,209
(1,391,939)		 —
—
78,775
186,296
—		 —
—
328,775
3,134,675
(1,610,012)
(1,407,270) 265,071 181,097 1,853,438
General
funds
£		 Designated
funds
£		 Restricted
funds
£
—
—
151,272
(36,430)		 Total funds
2020
£
Tangible fixed assets
Investments
Current assets
Current liabilities
Total		 —
250,000
1,495,422
(619,272)		 —
36,282
186,806
—		 —
286,282
1,833,500
(655,702)
1,126,150 223,088 114,842 1,464,080

The above funds include accumulated unrealised gains on listed investments as follows:

2021
£		 2020
£
Reconciliation of movements in unrealised gains on investment
assets
Accumulated unrealised gains at 1 July
Net gains arising on revaluation in period
Accumulated unrealisedgains at 30 June		 36,282
42,493		 —
36,282
78,775 36,282

The Chartered Association of Business Schools

40