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2023-07-31-accounts

DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2023

Company registered number: 1163254 Charity registered number: 09526939

DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT AND ACCOUNTS

YEAR ENDED 31 JULY 2023

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

DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES YEAR ENDED 31 JULY 2023

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 2023, 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 students 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 and to organize, promote and execute leadership programmes for students for the benefit of their communities and cities 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.

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

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

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 2022/23 our priorities were to:

While we have continued to run our in-person programmes, difficult economic conditions for our client universities meant that the number of programmes we ran, and the number of students who attended our programmes, were lower than we wanted. As a result, the company was unable to maintain the level of surpluses of recent years and saw a loss across its in-person programme activities.

Student programmes

In 2022/23, 4948 students completed our programmes, 1581 on asynchronous courses and 3367 on inperson and synchronous virtual programmes.

We measure the students’ development of key leadership skills as the core metric of our programme’s success and efficacy. Through attending our programmes, our participants reported that:

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:

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 5.5 across the year, showing the value the students place in their experience with us.

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

EdTech (Evolve Careers)

A further contributor to the Charity’s loss was the investment made in a new initiative based around educational technology (EdTech). The Charity used £285,600 of its reserves to seed fund the initiative, including product development, setting up an IT infrastructure and exploring international market opportunities.

During 2022/23, a dedicated team was therefore set up which has been developing a new product offering built around bridging the gap between education and the world of work. As the product came close to finalization, the activity of the team was moved into a new entity and fellow CPCT subsidiary (from 1 August 2023), Common Purpose Evolve Careers Ltd (CPEC). The new company will provide industry-driven on-demand learning experiences to equip young people with the tools to overcome common challenges, as well as providing them with unique access to global industry experts who offer invaluable insights into what employers truly value. CPEC will start to trade actively in 2023/24 for the ongoing benefit of CPCT. Several clients in India and the UK have already expressed an interest in working on the initiative with CPEC.

Plans for 2023/24

At the same time as the new online offering was moved into CPEC, management also decided to reorganise the legacy global student business along geographic lines. This will allow us to better meet local client needs and provide more tailored solutions for our client universities. Apart from the branch in Australia all other activity in the company will therefore wind down in 2023/24 as the relevant business is transferred to other group companies operating in our key geographies of the UK and Singapore. These companies will take over the client base and continue to operate the legacy student business. Our branch in Australia will continue to operate for the foreseeable future as it is solely focused on the Australian universities we work with.

FINANCIAL REVIEW

Details of the results for the year are given in the statement of financial activities on page 11. The net movement in reserves for the year ended 31 July 2022 was a deficit of £697.6k (2021/22: surplus of £71.8k). As a result, fund balances fell to negative £130.9k at the end of the year compared to £566.7k positive at the end of the previous year.

Income

In 2022/23, income totalled £853.9k (2021/22: £1,256.1k), a drop of 32% over the previous year. The fall was due to much harder trading conditions for the business as key client universities grappled with continued funding constraints. The charity received a donation of £16k to support development of the EdTech work.

Expenditure

Total expenditure in 2022/23 amounted to £1,551.5k, of which £1,222.6k was spent on programmes as part of the charitable mission (2021/22: total of £1,184.3k all on unrestricted programmes). £328.9k was spent on developing the new EdTech venture referred to above, Common Purpose Evolve Careers, which is developing its work with young people around the transition from university to the world of work. Other cost increases related to the cost of delivering programmes, notably staff salaries and central support costs.

CPSE operates a branch in Australia to support clients in that country. Turnover in the branch for the year was AU $544.7k (2021/22: $974.8k) and it produced a surplus AU $36.6k (2021/22: £588k). The branch’s results are incorporated in the figures of the Charity. As of 31 July 2023, the branch employed three full time staff.

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

RESERVES POLICY

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 a level that would ensure six months of unrestricted reserves cover for expenditure. 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.

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.

As of 31 July 2023, the reserves of the charity were £131k negative. Contracted income will continue to be brought into the company during 2023/24, mainly from contracts signed prior to 31 July 2023 and from client work in the Australian branch. The directors are therefore confident that the negative reserves will be eliminated during 2023/24.

REFERENCE AND ADMINISTRATIVE DETAILS

Name of the charity

Common Purpose Student Experiences Limited

Company Registration Number

09526939

Charity 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

TRUSTEES AND DIRECTORS

Sanjeev Gupta (Chair) Julia Harvie-Liddel (resigned 24 April 2023) David Grace Edward Kitchen (resigned 17 April 2023) Cedric Crocker (resigned 31 August 2023) Tswelopele Kodisang (resigned 31 August 2023) Christine Ennew (resigned 31 August 2023) Alvin Ng (resigned 31 July 2022)

All served throughout the year ended 31 July 2023 unless otherwise indicated.

Managing directors

Claire Piela (to 31 July 2023) for Global Student work Andy Coxall (from 1 August 2022 to 31 July 2023) for Common Purpose Evolve Careers

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

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.

Claire Piela and Andy Coxall shared management responsibility for the company. Claire Piela was responsible for the continuing global student business, while Andy Coxall, the previous CEO, moved to set up and run the company’s EdTech initiative. A new company, Common Purpose Evolve Careers Ltd (CPEC) was established for this purpose in July 2023. Given the commercial nature of the new venture, CPEC has been established as a 100% owned subsidiary of Common Purpose Limited, the group’s trading subsidiary, itself a wholly owned subsidiary of CPCT. CPCTs investment in the new EdTech initiative is expected to be fully reimbursed from the future trading profits of CPEC. During 2022/23, both Ms Piela and Mr Coxall reported to the board. The board of trustees meets quarterly and sets the strategic direction of the Charity. Ms Piela and Mr Coxall are both part of the group’s senior management team, led by the Group CEO, Adirupa Sengupta. The board, in consultation with Ms Sengupta, sets the remuneration of Ms Piela and Mr Coxall.

Methods adopted for the recruitment and appointment of trustees

When board vacancies arise, the trustees identify any skills or experience needs of the board. They utilize existing networks of suitably qualified people to approach potential trustees to serve. 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 that includes information about Common Purpose, an outline of the role of a trustee and specific Board Terms of Reference, the management structure of the company and group, 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 risks associated with the COVID-19 pandemic significantly lessened during 2022/23, and as a result, we saw an increase in in-person programme delivery. The most significant risk to the Charity become one of reduced revenue due to universities losing funding.

The ability of the Charity to continue to operate will depend on the continued activity in the Australian branch. The branch is expected to continue to operate for the next 12 months to meet local client demand for our programmes. The principal risk is that a shortfall in such income in Australia could lead to further losses in the Charity. The Charity intends over the next 12 months to return its reserves to surplus.

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2023

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:

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 situation 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:

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:

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 18 December 2023 and signed on its behalf by

 Sanjeev Gupta Chairman

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Opinion

We have audited the financial statements of Common Purpose Student Experiences Limited for the year ended 31 July 2023 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:

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.

Opinions on other matters prescribed by the Companies Act 2006

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

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

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:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement [set out on page 6, 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 regulatory requirements of Company and Charity Law applicable in England and Wales and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, payroll tax 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:

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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) For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

20 December 2023 Date:

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

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

FOR THE YEAR ENDED 31 JULY 2023

Note
Income from:
Charitable activities
Fees for student programmes
Other Income
Total
Expenditure on:
Charitable activities
Student programmes
3
EdTech development and other costs
Total expenditure
Net (expenditure)/income and net movement in funds
Fund balances brought forward as at 1 August
Fund balances carried forward as at 31 July		 Unrestricted
Funds
Restricted
Funds
Total Funds
Unrestricted
Funds
Restricted
Funds
Total Funds
2023
2023
2023
2022
2022
2022
£000s
£000s
£000s
£000s
£000s
£000s
837.9
0.0
837.9
1,256.1
0.0
1,256.1
0.0
16.0
16.0
0.0
0.0
0.0
837.9
16.0
853.9
1,256.1
0.0
1,256.1
(1,222.6)
0.0
(1,222.6)
(1,184.3)
0.0
(1,184.3)
(312.9)
(16.0)
(328.9)
0.0
0.0
0.0
(1,535.5)
(16.0)
(1,551.5)
(1,184.3)
0.0
(1,184.3)
(697.6)
0.0
(697.6)
71.8
0.0
71.8
566.7
0.0
566.7
494.9
0.0
494.9
(130.9)
0.0
(130.9)
566.7
0.0
566.7

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

CPSE had restricted income of £16k, all of which was expended during the year (2021/22: £nil).

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Company Registered Number 09526939

BALANCE SHEET

AS AT 31 JULY 2023

31-Jul-23
Note
£000s
£000s
Current assets
Debtors
4
150.7
Accrued income
50.6
Cash at bank and in hand
106.2
307.5
Creditors: amounts falling due
within one year
Creditors
5
(438.4)
Net current assets
(130.9)
Net assets
(130.9)
Funds
Restricted fund
0.0
General fund
(130.9)
Total funds
(130.9)		 31-Jul-22
£000s
£000s
555.6
277.4
44.4
877.4
(310.7)
566.7
566.7
0.0
566.7
566.7		 31-Jul-22
£000s
£000s
555.6
277.4
44.4
877.4
(310.7)
566.7
566.7
0.0
566.7
566.7
566.7
0.0
566.7
566.7

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 18 December 2023 and were signed below on its behalf by:

 Sanjeev Gupta Chairman

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

Company Registered Number 09526939

CASH FLOW STATEMENT

AS AT 31 JULY 2023

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
Foreign exchange movement
Cash and cash equivalents at the end of the year		 2023
2022
£000s
£000s
61.7
(11.6)
61.7
(11.6)
44.4
58.0
0.1
(2.0)
106.2
44.4

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

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 value, 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. The Charity did not have any restricted funds as at 31 July 2023.

(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

As explained in note 2 of the trustees' report, the Charity has transferred most of its activities to other subsidiary companies and the Charity is now therefore only accepting new business through its Australian branch. Having considered the future cash flows, the directors have prepared the financial statements on the basis that the company is a going concern. It is anticipated that the negative reserve position will be returned to surplus by the end of the year based on anticipated future contractual arrangements. In the meantime, the Charity retains the support of its parent entity (Common Purpose

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2023

Charitable Trust). On this basis the trustees are satisfied that the Charity is a going concern and no material uncertainties have been identified in the application of the going concern basis of accounting.

(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 2023
Student programmes 2022		 Direct Costs
£000s
687.4
739.3		 Support
Costs
Total
£000s
£000s
535.2
1,222.6
445.0
1,184.3

The aggregate emoluments of key management personnel including employer contributions for employer National Insurance and pension contributions were £135,427 (2021/22: £159,799). The Charity does not employ any staff directly; all staff are seconded from The Common Purpose Charitable Trust.

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2023

3b. ANALYSIS OF SUPPORT COSTS

DEBTORS
Central support
costs
£000s
Support costs 2023
485.2
Support costs 2022
378.8
Tuition fees and sponsorship income
Accrued income
Amount due from group undertakings:
Common Purpose Charitable Trust
Common Purpose Ltd
Common Purpose UK		 Licence
fee
Governance
Total
£000s
£000s
£000s
47.9
2.1
535.2
64.2
2.0
445.0
2023
2022
£000s
£000s
16.4
168.8
50.6
277.4
0.0
211.2
19.7
0.0
114.7
175.6
201.4
833.0

4. DEBTORS

CPSE had a debtor balance of £114,737 with another subsidiary within the group, Common Purpose UK. Business activity in CPUK stopped following the business re-organization in February 2021. Considering this, the parent company, CPCT, has once again provided a guarantee for the full sum in relation to amounts owed by CPUK to the Charity. CPUK was struck off in October 2023 and the balance will be transferred to CPCT with effect from 31 October 2023.

5. CREDITORS: AMOUNTS FALLING DUE IN ONE YEAR

Trade creditors and accruals
Deferred Income
Amounts due to group undertakings:
Common Purpose Charitable Trust
Common Purpose Ltd
CP Asia Pacific Ltd
Other taxes and social security		 2023
2022
£000s
£000s
168.9
135.2
2.8
79.6
193.8
0.0
0.0
19.9
9.2
7.4
63.7
68.6
438.4
310.7

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DocuSign Envelope ID: BA6819B0-3A35-4939-AE21-64BE1FB22F03

COMMON PURPOSE STUDENT EXPERIENCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2023

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)
Decrease / (increase) in Debtors
Increase in Creditors
Net cash (outflow) / inflow from operating activities		 2023
2022
£000s
£000s
(697.6)
71.8
746.2
(177.4)
13.0
94.0
61.6
(11.6)

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

A donation of £16k was received in relation to supporting the development of the EdTech initiative and fully expended 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.

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