2021-07-31-accounts - Common Purpose Student Experiences Limited

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

Company registered number: 09526939 Charity registered number: 1163254

DocuSign Envelope ID: 2670F5C3-38AF-4F57-AAE3-D9978AF75983

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT AND ACCOUNTS YEAR ENDED 31 JULY 2021

CONTENTS	Page
Report of the Trustees	1 – 7
Independent Auditor’s report	8 – 10
Statement of financial activities	11
Balance sheet	12
Cash flow statement	13
Notes to the financial statements	14 - 17

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

The trustees of Common Purpose Student Experiences Limited (“Common Purpose Student Experiences” or the “Charity”) are pleased to present their annual report together with the audited financial statements for the year ended 31 July 2020, which have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 and the Statement of Recommended Practice - Accounting and Reporting by Charities (Second Edition, effective 1 January 2019).

OBJECTIVES AND AIMS

The charitable objective of Common Purpose Student Experiences is the advancement of education for the public benefit. Its governing document describes its object as:

“ the advancement of education for the public benefit and in particular but without prejudice to the generality of the foregoing to educate men and women and young people of school age, from a broad range of geographical, political, ethnic, institutional, social and economic backgrounds in constitutional, civic, economic and social studies with special emphasis on civil and social awareness and responsibility in the United Kingdom and elsewhere.”

Common Purpose Student Experiences was established as a charity on 7 April 2015 and is registered with the Charity Commission under the Registered Charity number 1163254.The Charity is a fully owned subsidiary of The Common Purpose Charitable Trust (“CPCT”). CPCT runs a wide range of leadership development programmes directly and through its other subsidiaries and licensees globally.

The trustees of Common Purpose Student Experiences confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

Ethos and vision

Common Purpose Student Experiences gives university students the inspiration, skills and connections to become better leaders as they embark on their careers and move out into society.

CPCT is a global provider of leadership development programmes that help people of the world to work together to solve common problems.

Local and global : we operate locally in major cities around the world and we connect them through our global programmes.
Leadership development : we deliver experiential leadership development and ensure that our participants leave with clear thinking on how to apply their learning back in the workplace and in wider society. As a result, all leaders, from all backgrounds, have a far more sustained impact.
Work together : we convene leaders across sectors and from all backgrounds, so that they learn to cross boundaries and see how diversity brings fresh perspectives and sparks innovation.

For more details, visit our website: www.commonpurpose.org

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Common Purpose Student Experiences focuses on developing the next generation of inclusive leaders with Cultural Intelligence (CQ): the ability to cross boundaries and thrive in multiple cultures. We collaborate with universities to deliver our co-curricular leadership programmes. These programmes offer a cutting-edge CQ pedagogy with powerful experiential learning techniques, equipping students with CQ to thrive in the world today. They enable universities to complement existing offerings and meet key institutional objectives.

During 2020/21 our main priorities were:

to continue to innovate in our offerings to universities and to focus on improving quality and content of our programmes
to maintain and improve the key performance indicators (KPIs) that measure client and participant satisfaction with our programmes
to continue to take more students from UK and Australian universities on our Global Leadership Experience Abroad programmes to cities across the world, and in particular targeting nontraditional students who don’t take up international experiences at university
through the support of corporate and university partners to run GLE: Home programmes in the major education hubs of the world
to run large scale in-person and purely online programmes where 500 – 1,000 students can learn together
to generate over 6,500 total graduate numbers and online participant numbers.

When COVID-19 made in-person programmes unviable, we quickly re-designed them to be deliverable purely online. In less than three months, we conceived, developed and delivered fully online programmes, demonstrating to our clients our speed of response to the unfolding situation with COVID19. Our agility and technical competence meant we were able to continue to deliver leadership programmes for our existing clients throughout the year and to offer online leadership programmes to new clients. As a result, from March to July this year we had 5,878 students completing online courses or programmes with us – 1,684 on asynchronous courses and a further 4,194 completing a live “realtime” online programme.

This represents a total across the year of 8,411 students completing a Common Purpose programme. Against this very difficult background, we have also been able to deliver a financial surplus for 2020/21.

Highlights for this period saw over 600 RMIT University students complete the online Global Leadership Forum Worldwide and over 330 students from Glasgow, Gloucestershire, Chicago and Pretoria Universities and Queen’s University Belfast complete the online Global Leadership Forum EMEA.

We have asked all of our participants to tell us whether the programme was good value for their time, rating their response on a scale of 1 to 6 (6 being excellent value for time and 1 being very poor). Our target is for 90%+ of participants to score our programmes as 5 or 6 – this was our student experience Key Performance Indicator (KPI) for 2020/21. The average KPI score across our programmes was 83%, a little lower than some previous years. We have reviewed Value for Time as a performance indicator and decided that it is not as useful a measure as we would like. External events over which we have no control can intervene to affect participants’ views (such as poor internet connections or low speeds). As a result, we are moving to KPIs based on the impact the programme has had on participants.

We also measure the students’ development of key leadership skills. Through attending our programmes, our participants reported that:

through deepening their understanding of other cultures they became more Empathetic
through working with difference they became more Agile
through living with ambiguity they became more Open
through solving complex problems they became more Influential.

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

We combine these skills to measure two core competencies, aiming for an average response of 5 or more out of 6 for each across the year (6 being excellent development of the competency and 1 being very poor). Participants gave the following average scores, meaning we are pleased to have exceeded this target over the year across all competencies:

become more inclusive leaders: 5.29 out of 6
operate with broader horizons: 5.07 out of 6

In addition, we now ask students if they would recommend the programme to others, again aiming for an average score of 5 or more out of 6 (6 being highly recommended). We are delighted to report an average score of 5.36 across the year, showing the value the students place in their experience with us.

We are especially pleased to see that student satisfaction and development of key leadership skills and competencies has been comparable, or higher, for our new online delivered programmes during COVID-19 in relation to their previous in-person models.

Plans for 2021/22

Our plans for 2021/22 include:

continuing to deliver our full suite of online programmes, and develop new online programmes, to ensure that at even at a time of social distancing students can still benefit from our programmes
as and when circumstances allow, running in-person programmes where our university partners choose to revert back from online delivery – both as GLE Home programmes (i.e. run domestically in their own cities) or GLE Abroads (run in cities in different countries to the host university)
expanding our portfolio of university partners for programmes to include the US, Canada, UAE and Malaysia
by the end of the financial year, having over 9,000 students completed our in-person and online programmes – of which 75% go on to successfully earn the associated micro-credential.

FINANCIAL REVIEW

Details of the results for the year are given in the statement of financial activities on page 10. The net movement in reserves for the year ended 31 July 2021 was a surplus of £254.1k (2019/20: £82k). As a result, fund balances rose to £494.9k at the end of the year compared to £254.1k at the end of the previous year. All of this was unrestricted (2019/20: unrestricted £254.1k; restricted £0).

Income

In 2020/21, income totalled £1,030.4k (2019/20: £955.2k), an increase of 8% over the previous year. The Charity’s revenue met budget expectations despite the challenges of operating during the COVID pandemic.

Expenditure

Total expenditure in 2020/21 amounted to £789.6k, all of which was spent on unrestricted programmes (2019/20: total of £873.2k all on unrestricted programmes). The improvement in costs reflects the fact that the Charity switched to fully online delivery during the year. This produced savings in programme costs such as flights, hotels, venue hire etc. One staff member remained on furlough under the UK government’s scheme during the month of August only and the Charity benefited to the amount of £1,244. All staff were brought back from furlough by 31 January 2021.

Another subsidiary within the group, Common Purpose UK, has an intercompany creditor balance with the Charity of £223,658. Business activity in CPUK stopped as a result of a business re-organization in

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

February 2021, but has a negative reserve balance. In light of this, the parent company, CPCT, has provided a guarantee for the full sum in relation to amounts owed from CPUK to CPSE.

CPSE operates a branch in Australia to support clients in that country. Turnover for the year was AU $959k and surplus AU $763.5k (2019/20: turnover AU $813k and surplus AU $692.3k). The branch’s results are reflected in the figures of the parent company, CPSE. The branch employs two full time staff.

RESERVES POLICY

The Charity has established a reserves policy as part of its plans to provide long-term support to CPCT. Reserves are used to bridge the gap between the spending and receiving of income. The Charity therefore calculates reserves as that part of the Charity’s unrestricted income that is freely available after taking account of designated funds that donors have provided for specific projects.

The reserves currently stand at £494.9k and are calculated as follows:

	£000s
Unrestricted funds	494.9
Restricted funds	0
TOTAL RESERVES	494.9

Reserves are calculated and managed at a group level to ensure the group has, at a minimum, sufficient reserves to support the continued solvency and liquidity of the group. The group reserve is set at £1.2 million. Beyond this, the Charity separately aims to maintain a sufficient level of reserves at a company level to support its continued solvency. The CPCT group approves the Group Reserves Policy annually and sets the target level of reserves.

REFERENCE AND ADMINISTRATIVE DETAILS

Name of the charity

Common Purpose Student Experiences Limited

Charity Registration Number

09526939

Company Registration Number

1163254

Registered Office

Monmouth House 38 – 40 Artillery Lane London E1 7LS

ADVISORS

Auditors Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG Bankers National Westminster, 250 Regent Street, London W1B 3BN

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

TRUSTEES AND DIRECTORS

Sanjeev Gupta (Chair) Cedric Crocker Christine Ennew David Grace Julia Harvie-Liddel Edward Kitchen Tswelopele Kodisang Alvin Ng

All served throughout the year ended 31 July 2021.

Chief Executive Officer

Andy Coxall

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document and constitution

The governing documents of Common Purpose Student Experiences Limited are the Memorandum and Articles of Association. Common Purpose Student Experiences Limited is a company limited by guarantee without share capital and with charitable status.

Organisational structure and decision making

The Charity was established in 2015. Common Purpose Student Experiences Limited is a wholly owned subsidiary of The Common Purpose Charitable Trust (CPCT), which is a company limited by guarantee, registered in England and Wales under company number 2832875.

The Chief Executive, Andy Coxall, runs the Charity and reports to the board. The board of trustees meets quarterly and sets the strategic direction of the Charity. Mr Coxall is part of the group’s senior management team, led by the Group CEO, Adirupa Sengupta. Other senior managers include Ed Herman, Chief Operating Officer of the Charity, who is also a member of the senior management team. The board, in consultation with Ms Sengupta, sets the remuneration of Mr Coxall and Mr Herman.

Methods adopted for the recruitment and appointment of trustees

We encourage people interested in becoming trustees of the Charity to apply on our website. When vacancies arise the CPCT nominations committee draws up criteria, considers applications, conducts interviews of candidates and recommends appointments. Prospective trustees are briefed on the nature and work of the organization, invited to meet the board and the executive and, if the board approves, appointed at the next board meeting. Appointments are ratified at the following annual general meeting.

Policies and procedures for training and induction of trustees

All trustees are offered an induction, which is tailored to suit their individual requirements. Each new trustee receives an information pack that informs them of their role, the management structure and the policies and systems in place. New trustees are encouraged to attend a course day to see Common Purpose in action, as well as participating in other Common Purpose events that run throughout the year.

Risk assessment, principal risks and uncertainties

The trustees have established an annual risk assessment process, which identifies the major foreseeable risks faced by the Charity, assessing their likelihood and impact, and as appropriate implementing measures to mitigate these risks. The trustees have reviewed the major risks to which the Charity is exposed and are satisfied that appropriate systems have been established to mitigate those risks. The key risk that emerged from the COVID-19 pandemic was business interruption to the

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

Charity’s ability to run its programmes face-to-face. The Charity’s response was to move programmes online. This has proved successful and has demonstrated the effectiveness of the risk mitigation strategies.

The ability of the Charity to continue to operate is dependent upon identifying and securing income and sponsorship support from participating universities. The principal risk is that a shortfall in such income could lead to losses in the Charity. The Charity aims to hold sufficient reserves to manage a downturn in business. This objective is set out in the Charity’s reserves policy. This has also been addressed by a close focus on managing costs and a strong focus on sales strategy to appropriate funders and institutions. CPSE has also continued to develop and refine its product offering based on market response and feedback from key stakeholders.

Impact of COVID-19 (Coronavirus)

The accounts cover a year in which the impacts of the COVID-19 pandemic continued to be felt globally. The Charity’s activities in running face-to-face programmes were largely curtailed, with programmes moving to online delivery. This approach met with considerable approval from client universities and participants and enabled the Charity to continue to grow.

Through its parent, The Common Purpose Charitable Trust, the Charity took advantage of the UK government’s Coronavirus Job Retention Scheme to furlough 1 staff member during August 2021.

In November 2021, the trustees considered a 12-month cash flow forecast and based on the assumptions made by management this showed the Charity remaining cash flow positive throughout the period to December 2022.

The trustees recognize, however, that given the current situation relating to COVID-19 any forecast of future activity levels and thus cash flow is inherently uncertain. The key uncertainty is the extent to which uncontracted income will be realised while the COVID-19 restrictions apply. To protect this income, we continue to stay very close to our clients. The Charity expects to see a return to in-person delivery during the coming year as COVID restrictions are lifted around the world; however, online delivery will remain a key component of the business.

The trustees believe, however, that notwithstanding the inherent uncertainties that currently exist, the Charity remains financially sustainable and will remain a going concern for at least the next twelve months from the date of approval of these accounts. This is due to the strength of the Charity’s underlying business, management’s ongoing relationships with key universities, and the actions being taken to mitigate expected reduced activity levels (as mentioned above).

The trustees will continue to actively monitor staff levels and operational costs and take such steps as they consider necessary to help ensure these remain in line with activity levels and income, also taking into account the parent’s utilisation of assistance provided by the UK government.

The Charity has no investments or other assets that have been significantly impaired because of COVID-19. The trustees have reviewed and updated the company’s reserves policy and risk register to reflect COVID-19, and taken other actions needed in the current situation such as focusing on maintaining cash flow, monitoring costs and supporting new product development.

Directors’ insurance and indemnities

The trustees have the benefit of the indemnity provisions contained in the Charity’s Articles of Association, and the Charity has maintained throughout the year Directors’ and Officers’ liability insurance for the benefit of the Charity, the trustees and its officers. CPSE trustees are covered under the parent entity’s insurance policies in respect of:

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2021

Professional indemnity
Trustees and individual liability
Professional and legal liability

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees, who are also the directors of Common Purpose Student Experiences Limited for the purposes of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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

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

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company’s auditor is unaware;  the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

In preparing the Report of the Trustees, the trustees have taken advantage of the exemptions available to small companies (including the exemption from preparing a strategic report).

Approved by the Board of trustees on 23 November 2021 and signed on its behalf by



Trustee

Sanjeev Gupta

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Opinion

We have audited the financial statements of Common Purpose Student Experiences for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 July 2021 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

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

Matters on which we are required to report by exception

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

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

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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.

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, payroll taxes and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries or the manipulation of accounting judgements and estimates. Audit procedures performed by the engagement team included:

Inspecting correspondence with regulators and tax authorities;
Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Reviewing the minutes of Trustees’ meetings during the year
Identifying and testing journals, in particular journal entries posted around the year-end; and
Challenging assumptions and judgements made by management in their critical accounting estimates.

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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Harper (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG Date: 28 February 2022

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account)

FOR THE YEAR ENDED 31 JULY 2021

Note Income from: Charitable activities Fees for Global Student programmes Other Income Total Expenditure on: Charitable activities 3 Total expenditure Net income & net movement in funds Fund balances brought forward as at 1 August Fund balances carried forward as at 31 July	2021 2020 £000s £000s 1,029.2 943.8 1.2 11.4 1,030.4 955.2 (789.6) (873.2)
	(789.6) (873.2)
	240.8 82.0
	254.1 172.1
	494.9 254.1

All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities.

CPSE had no restricted income or expenditure in both the current and previous years.

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COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Company Registered Number 09526939

BALANCE SHEET

AS AT 31 JULY 2021

31-Jul-21 Note £000s £000s Current assets Debtors 4 418.2 Accrued income 237.3 Cash at bank and in hand 56.1 711.6 Creditors: amounts falling due within one year Creditors 5 (216.7) Net current assets 494.9 Net assets 494.9 Funds Restricted fund 0.0 General fund 494.9 Total funds 494.9	31-Jul-20 £000s £000s 226.3 21.5 196.7 444.5 (190.4) 254.1 254.1 0.0 254.1 254.1	31-Jul-20 £000s £000s 226.3 21.5 196.7 444.5 (190.4) 254.1 254.1 0.0 254.1 254.1

		254.1
		0.0 254.1
		254.1

All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime

The financial statements were approved and authorised for issue by the board of trustees on 23 November 2021 and were signed below on its behalf by:

 Trustee

Sanjeev Gupta

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Company Registered Number 09526939

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

CASH FLOW STATEMENT

AS AT 31 JULY 2021

Net cash (outflow) / inflow from operating activities 6 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	2021 2020 £000s £000s (138.7) 126.0 (138.7) 126.0 196.7 70.7 58.0 196.7

DocuSign Envelope ID: 2670F5C3-38AF-4F57-AAE3-D9978AF75983

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES

(a) Basis of accounting

Common Purpose Student Experiences Limited is a charitable company limited by guarantee. Further details are shown on page 3.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP – Second Edition, effective 1 January 2019), the Companies Act 2006 and the Charities Act 2011, and Regulations made thereunder.

The charitable company holds only basic financial instruments which are initially recognised at cost or transaction, and do not require subsequent adjustment to fair value.

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

(b) Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the trustees in furtherance of the general charitable objectives.

Restricted funds are funds subject to specific restricted conditions imposed by the donors.

(c) Income

Income represents the total income receivable during the year comprising tuition fees, sponsorship, bursaries, and other income.

Income and expenditure related to individual courses is matched and any surplus on a course is recognised in the accounting year in which it arises. Course deficits are recognised as soon as anticipated. Income is fully recognised on commencement of courses including those that cease after the year end as no refunds are given once a course has commenced and hence full entitlement to the income occurs on commencement.

(d) Expenditure

Expenditure is charged to the Statement of Financial Activities on an accruals basis.

Direct costs are charged to charitable activities along with appropriate support costs. Support costs are those non-charitable costs which are necessary for the general running of the charity and include items such as governance, licence and audit fees.

(e) Going concern

The accounts are prepared on a going concern basis which assumes that the company will continue in business for the foreseeable future and, in assessing the company’s viability as going concern, the directors have had regard to a minimum period of 12 months from the date of approval of the accounts.

The accounts are approved during a period where the long-term economic and social impacts of the coronavirus COVID-19 appear to be lessening. The company has reforecast its cash flow in light of the global situation regarding COVID-19. This forecast shows the company staying cash flow positive for

DocuSign Envelope ID: 2670F5C3-38AF-4F57-AAE3-D9978AF75983

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

the next 12 months. The trustees believe therefore that the company has sufficient resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Further information on this can be seen in the trustees’ report above on page 6.

(f) Foreign currency translation

Transactions denominated in in foreign currencies are initially translated into sterling at the exchange rate at the transaction date. Monetary items are retranslated at the balance sheet date and the resulting differences are reflected in the Statement of Financial Activities.

(g) Australian branch

As described in the Trustees’ Report, the Charity has an Australian branch which began activity during the year ended 31 July 2020. The income, expenditure, assets and liabilities of the branch are incorporated within the accounts of the Charity.

2. TRUSTEES’ REMUNERATION AND REIMBURSED EXPENSES

No emoluments were paid, nor expenses reimbursed, to the trustees during the current year.

3a. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Student programmes 2021 Student programmes 2020	Direct Costs £000s 466.0 582.7	Support Costs Total £000s £000s 323.6 789.6 290.5 873.2

The aggregate emoluments of key management personnel including employer contributions for National Insurance and pension were £166,627 (2019/20: £158,441). The Charity does not employ any staff directly; all staff are seconded from The Common Purpose Charitable Trust.

DocuSign Envelope ID: 2670F5C3-38AF-4F57-AAE3-D9978AF75983

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

3b. ANALYSIS OF SUPPORT COSTS

Support costs 2021 Support costs 2020	Central support costs £000s 267.0 229.3	Licence fee £000s 52.0 55.7	Governance Total £000s £000s 4.6 323.6 5.5 290.5

4. DEBTORS

Tuition fees and sponsorship income Accrued income Amount due from group undertakings: Common Purpose Charitable Trust Common Purpose UK Common Purpose Ltd Other debtors	2021 2020 £000s £000s 61.3 100.9 237.3 21.5 133.3 0.0 223.7 120.6 0.0 4.4 0.0 0.4 655.6 247.8

The parent company, CPCT, has provided a guarantee in the amount of £223.7k in relation to amounts owed from CPUK to CPSE.

5. CREDITORS: AMOUNTS FALLING DUE IN ONE YEAR

Trade creditors and accruals Deferred Income Amounts due to group undertakings: CP Asia Pacific Ltd Common Purpose Ltd Common Purpose Charitable Trust Other taxes and social security	2021 2020 £000s £000s 85.9 16.4 72.9 109.6 7.2 7.2 5.6 0.0 0.0 0.6 45.1 56.6 216.7 190.4

DocuSign Envelope ID: 2670F5C3-38AF-4F57-AAE3-D9978AF75983

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

6. RECONCILIATION OF OPERATING SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net (expenditure) / income for the reporting period (as per the statement of financial activities) (Increase) Decrease in Debtors Increase (Decrease) in Creditors Net cash (outflow) / inflow from operating activities	2021 2020 £000s £000s 240.8 82.0 (406.5) (6.3) 27.0 50.3 (138.7) 126.0

7. SHARE CAPITAL

The charitable company is limited by guarantee and has no share capital. The liability of the members is limited to the sum of £1 per member.

8. RESTRICTED FUNDS

No restricted grants were received from donors during the year.

9. PARENT UNDERTAKING

The Charity’s immediate and ultimate parent undertaking is The Common Purpose Charitable Trust (CPCT), a company registered in England, number 2832875 and a registered charity, number 1023384. Consolidated financial statements for The Common Purpose Charitable Trust are available to the public from www.charitycommission.org.uk .

10. RELATED PARTIES

During the year, the Charity entered into a number of transactions with other group companies. These transactions were to pay the salaries of staff engaged from other group entities. All such transactions are eliminated on consolidation in The Common Purpose Charitable Trust.

There were no related party transactions in the current year.