THI MALAYSIAN COMMOf4WE4 ALTH STUDIES CEI NTRE Ir4 CAMBRIDGE Annual Report and Financial Statements Foi. the yeai. ended 31 July 2021 (_ 1410412022) rkiE MAI.AYSJAN COMMONWE4 ALTH S'I'UDIES CEtYTRF If+1 CAMBIIIDG ANNUAL REPORT AND fi INANCIAL STATEMENTS 2021 CONTENTS Page Ti'ustees, i'eytbrt Legal and administi'atlve detAII$ Ti'ustee5' iespothslbllltlt$.$tAtenient liideyendent auditoi s i'epni't Statement of finllncial activitie5 Bal¥ne¢ $lie¢t Casli floiv $t4teinent Notes to the casli floiv statenient io Aecolllltjllg polleles Notes to the financial stat¥Micmis 14 THE MALAYSIAN C()MMONWEI AI.TH STUDIES cfl N'I'RE IN CAMIIRII)GE TRUSTEES, REPORT 2020-21 ODJEI CTS AND PURPOSE4 s ofi THE CENTR Tlie MalclySjL1tI Cuiniiion%vealili Studi¢s Cenlre iii Cainbridgc {MCSCI wascs1(iblislied by TiiistDecd, dalcd bui als(i el%ewlieie Iii cuoperalioii. Ivhere approprialore involving 14 villages and 1,185 lioiiscliolds Iwiili a popiilation of 6,Q601, and using appi'upi'iate Icclillulogies incliiding &nfoi'n)aiiaii teclinology. The focus will bc oil heulih artd iiuiriliort. enei'gy-enabled sciviccs fol. a￿l¢￿[tUl.¢, Incliiding iii'igcilion using solar i)oivei', impi-oving th'll&ing walei., Irfrigeialion aiid sewiiig ¢enli'es for woinen - all undeipiniied by e-educa¢ion. Sttiiayt VIIIAges Reseai'cli Gi'oup pi'oJeets. Developing links with die SIn￿* Villages Reseairh Group, led by Di. Bei'iiic Jolles, lo lake foiTri'ai'd Ihe ivoik of this gix)llp. The Ti'usls al'e %iippoitit]g second i)lia%e of woi'k on Smait Villages tlirougli tlie Simarl Village$ Reseairli Groiip led by Di. Berllie Jones. includiiis tlie following projects-. Sniarl villages and ¢nergy development in foul. J'ural eoininunities iii Tan/Ania A pi'ojcct oji Iuiv-ci)51 Eii%laTriidble told stolf ICLliiiology in Ugaiida A pi'ojeci lo develop Iccliiiology to i'einove plasiic pollutiot) froji) J'ivers in Kenya Developttieni projccls in STX I'Liral comniiinities in Uganda, drtd in Iwo i'ui21 coinmunilies in Leqotlio Tests of a niodelling tool f￿. use in thire off-grid cot]UllUlllties in Malaysia attd Soinalilalld All these projects are exainples of wliat appropi'iaie and affordable lecblloloEies can lielp achieve on tlje groutid foi. suslaiiiable develoi)nieiil. iu. rioresight Transltlon Tesin. Lauiicliing a i'ea%oiied canipaign to l)elp civil society lo iinder.%tand aiid Eive Social Ic¥itiiiiaLy L() policies wliicl) go bcyoiid a tecliMocTalic re%iioii￿e in dealinB witli problejns wliich ihira￿ liuThn bustdinabilily. iv THE MALAYSJAN COMMC)NWEALTH STUDILI S CENTRE IN CAMBIIIDGL TRUSTEI E4 S, REPORT 2020.21 3.4 Goof) GOVERNANCE AND ELECTOIL4L DEMOCRACY IN THF. COMh.IONWE4 ALTH (AND BLYUND) Foj. Ilie pa8t l 8 year% MCSC Iwiili CMEDT 8iiice ils t%tabli.%liiiieiiil liave ii12yed Ilie kcy rolc in c5tablibliiiig dnd leadiTig Ilie aniiual C.dii)bi'idge Cojifcirncc prrJvidiiTrgF a f(iiuiii Iii wliicli Cliicf ElcLlioJi Cojiimisstaners aiid Ihosc wlio leud El￿tI￿)n na#Linenl F31)dies in Ilie Coiiiilloiiwcalih {¢iiiil bcyondl eaii tneel togctlici. lo as laii. as ctrciinistances perinit. Tliis wurk liab also b¢¢n iakeii foi'wai'd tliiougli rcgional workshops. Tlie anniial Cambridge Lonfeimce lias pi'uved a unique irtiliative in Iliis vital field of endeavoiii.. In 2020-21, tlie foium lias been kcpt alive by coi]llnuiiicatlOH5 beiwe¢iJ Ilic EMBS, willi tlie actual Confej'encc ill 2021 las in 20201 uiifoi'llltjately liaviiig liad lo be cancelled because of Covid, ai)d also Ilkn'ollgli a series of vii'tual woj'ksliops, ()r seininar%, to ll)ait)tain conliiiuity aiid serve sonie of tlie i)urposes of the Confereiice in these challenging tijiies. OTHF.R ACTIVITIEIS Nelii'u'l'i-ust foi. CRmbi'ldge Uiilvcrslty MCSC cvnliniied to suppoi't thc Nehni Trust for C%mbridgc UniveiEity, whose activitie5 it) India coinplemeiited tliosc of tl)e Trust. Aivaimls In eoll*boratloii ivltli the NehTU'I'i'rist MCSC, in collaboratioji with the Nelllu Tn]st for Cambridge uiiivei.sity artd other bodies, supported two Pl).D. .%ttidents and tliire l.LM studejits al Canibridge Unii'ersity duriJigT 2020-21. PUBLIC BENEf4IT Tlic above a¢collnls of thc Trust's aciivities atnijly deinonslrale ilie public beiiefit ai-i%ing from eacli progiwiiinie. Arrtsrdable educdtion. %ustainable dcvclopnieiil, food seciii'ily, the n)iligaliot] of clin)aie cliatige and iiattiral di5klbteiB, affoi'dable incdicine and liealtlicare, and Ilie pwiiivlion ofelLcioral deniaci'acy in the Con)nionwealtli and beyond, air self-evidently progranunc5 of gi'eat aLtu813nd potsnlial bcncfjt to tlic puEIlic. The Trustces are satisfied that Ilic activities of the Ti￿St, as dcscribed in tlii5 Tepoi"lathd iii the ac¢aJi)panying accourtts, air entiiEly foi chai'itable i)uiposcs dnd fully nieet Ilie'public beiicfit, iryuii'cmeiit of the Ch81'ities Act 2011. Tlje Tjuslees cojifirin tlidt tliey have iefeii'ed to Ilie guidance Colltained iii tlie Chai'ity Conuni55ion's general guidance on public beiiefjt. CAPITAL POSITION AND INVESTMENTS The Cenlye wa% eslablislied willi Dionies genei'ously, and ivholly aiid exc1115ively, donated by sources iii Malaysia whicli liad bccn encouraged by Ilie Goveimment of Malaysia to Ji)akc these beiiefactioii%. Tlic fuiids of Ihe Centl-e ai¢ euiiEiitly hcld pai'ily ill M&G Cliai'ifui)d, ai)d partly on deposil witli Ihe Univcj'sity. The Trustees do not have an etliical ittvesti)ient policy as %uch, i'elyllig on the policies adopted by the University in respect of ils Endowjnent Futtd and M&G in iE$pecl of cl￿rifulld. THE MALA YSIAN COMMONWEAI.TH STUDIES CENTRII IN CAMBRIDGE TRUSTEES, REPORT 2020-21 ASSESSMENT OF FUTURE rtNANCIAJ. POSITION OF THE CENI TRE Tli¢ Tn15tees liavc agre¢d 10 dei)loy the trust's JEiiiaiJiiiig rcsouircs ot] furilici. agreed joint p1-ogi-ai￿lDe%, 48 well as oli activitie% ratifted by tlie Tiu%tee8 and coiidiicted exclusively by MCSC (iii Ilic iiiaiii. aivai'ds 81)ecifieally foi. ccrtaiji caiegoYie8 af CotnniotJwealilJ studenlsl. TIIL Inosi 8igiitficaiil iiiipact of tlie covid-19 paiideini¢ lia% l)een Ilie iieed ta cartcel Ilic blectoial Dcnioci2Ly ¢(>iifei-ertce% 8LlPPOJ'tLd by tlie Irust in ?020 alld 2021. -I'lic i-cinaiiiiiig projccls suppui-ILd by the tiust have conliiiiicd largcly iinal'fe¢ied by tlic i)andciiiic. Tlie In]sl lias siiffjcicnt re5owres to ¢onliiJue in opei'alion foi'at least twcliic nionttss froill ti)e dateof signing tliesc f￿alicial slatemenls. BeyoiTrd that, its futurc will (lepend oil se¢uiing new souree$ of ineojne. GOING CONCERN Tlie TIw5tees expcct die tiust to liave adequate resourecs to continuc in opcralioiial existeiice for at lea%t twclvc nionilis froni the date of signing Ilic aecounts. Tlie tiii.%t l)&% lolal as5cls less liabiljlies of £1,214,713 as at 31 July 2021 {2020.. £1,014,767). Apart fioiii tlie need to cancel tlic 2021 Elecloial Deniocracy cotifereii¢¢. tlic iiMI)a¢t of covid-19 on Ilie i'em2iniiig activitlcb of Ilic Ii-usi is not expeclcd lo be sigiiificanl. ALLoidingly, tlie MCSC Tru%iee% tontiniie to ad()pl tlie going LonLeiD ba￿ls in Pi-LPal'ing tlie financial slalenienls. RF.sr.RvfiS POLICY All die fullds of Ilie Lentre air invcsted, and the in¢oiiie is fiilly deployed for thc purposcs of tlic Tiijst. AIIY uiispeni iiicome in ally yeaT would be held agRin51 expcnditUl"¢ IA futt]ii yed¥S 111 tlic liope of avoidiiig niajor swiiig5 itl ilie level of activities of tlie Trust fi'oiii year to yeMI'. The Tiusi does Dot have a specifi¢ policy foi'whai level of i'eserves it should liold. Il is Ilie ciiirent policy of the Tiuslee5 tliat tlie T￿s1 should spetid more tliaii its iiicoikne, tliereby i'ediicin8 Ilie level of it% reserves. RISK MANAGEMENT The TTuslees havc examined ilie Jnajor 5tiatcgic, busintss opcralional risks wliieli Ilie Trllsi faces, 3nd aie satisfied thai the i'eglllai. Irporls they irceive at Incctings enable thern tv assess tliese risks, and to piit iii hand on a tiinely basis Any neeessaiy actions (Jiiainly Llianges in tlie nutnbei. of #wa￿$ offei"¢d fTOtxJ yeai. to year and expendituie on the principal seheinesl lo lessen oi. avoid them. A risk iEgisler has been pirpai'ed and is kept vnder itgular review. Tl)e pi'ineipal risk JElates lo the unexiJe¢ied loss of key staff. Tliis risk lias beeii n)ItikJated thiougli tlie ai)poiniiiieni ot'Pi'otcssoi' Sil. Maik Welland a% ali A%qociale Director based in Caiiibi'idge. Tli¢ oiliei- pi-iii¢ip&l risk relates 10 tlie possible need foi. Ilie Tn]5t to ¢ontribuie additional i'csouircs lo joint pi'ojccts willi CMEDT if tlie anticipaied additional fiillding for CMF.DT frot)i M21aysia is not forilicoming. Tliere ai'eeull'ently no oiliei. Inajor L-isks irquiringtl)c altentivn of ilieTI'llslees. Tru8lee indeinnity itisuratice il* iii place, togeilier with cniployei 8 and tliiTd-party liability Insliraiice. Bllildings and cojilenls iiisui'aiice is in place foi. I l Madingley Road, iii accordancc with tlic teiins of the lease. The Executive CoTniniltee ensuiES tlial tlie pj'ojecled cost of all the Trust's appi'oved piDgi'aiwiie& can be met within the resowres of the Tivsi. Approved by the Tn18tees on q 2oZ£ Signed on bclialf of tl)c Ti'ustees vi TIIE LVIALAYSIAN COMMI)NWEAL'I'H S'fUDIES CENTRF IN CAMBRIDGL GAL AND ADMINI.STRATIVE DEI TAILS TRUSTEES Dato. Heniy Ilarlow Mi. Jercitiy Cdi'vci. Pi-ofcs50I- Joliii Lonsdale TREASUREI R Dr Nicholas Branson TRU.ST ADDRESS Tlie Malaysiaii Con)monwe21tli s￿dies Ccntre Eli CanibTidge Pok Ilafeali H0115e I l Madingley Road Cambridge CB3 OEG BANK National West￿luster PIC 23 Market Street C#nil)ridge CB2 3PA AUDITOR Deloitlc LLP C113rl¢rcd Aceounlaiils and Strdtutoiy Auditor I Staiion Square Cainbi"i(fge CBI 2GA Unitcd l(ingdoin LEGAL SI'ATUS Thc chdriiy was establislied by a Dccd of Trust daied 30 Api'il 1995. Tlie University of Cainbridge was the c115todian stee of the tn]sl until 3 1 July 2018. TheTeaftci", the Tiust was registered willi thc UK Charity Coin]iiissioii IRegistt'alioii nuimber 1179724) Until 3 1 July 2018 the Iwsl wa8 all exenipt chai'ity undei. Schedule 3128) ot. the Chai'iiies Aet 2011. It ss now a rcgistei'ed chai'ity. ANNUAL REPORT Tliese fiiiart¢ial 8iatenienis sl)uuld be read in conjunction witl) the ti'uslee8' annual repoit wliicli is wiblislied on tlie saine dale as tlicsc a¢cuunts. TFIE MALAYSJAN COMMUNWEAI.TH STUDifi.S CLNTRE IN CAMBRIDGE TRUSTEI Ei S, REI SPONSIBILITllI S STATEMENT rijc ti'iistces ale respoiisible foi- i)r¢pai'ing tl)c Trustccs, Anniial Rcpoit ￿nd tlie fiiianLTg1 slateiiienls in eeojxlanec with appli¢able law and Ullilcd Kiiigidoin AeLOLinling Slandaj'ds IUJiiled Kiiigdoiii GcnciTrlly ALCCPtcil AL¢oiiniiiig Piacti¢e), including FRS 102"The Financial Repoi'lTng Slandaixl ai)plicablc ill tbc UK and Republic of Iieland" Tlie laiv api)lical)le to cliai'ities Ill r.iiglaiid dnd Wtlts irqiiii'es tlie li'ustees to pj'cpai'c fiiiajicial slatcjiieiits for ea¢li financial yeai- wliieli give a li'lle aijd fair view of the state of affair8 1)filie diai'iry and ot Ilie siicoiiiiiig resoiii'ces and api)licatioii of resoiiires of tlie ¢lJai'ity for thal pei'iod. lil prepai'iiig Ilie5e fliiaiicial staleniuits, tlie li.￿81e&S al'e irquiied to.. sele¢[ Siiitablc aecouiitiiig policies Riid then apply tlithn ¢oiisislenily,' obscive tlic iMetliod% artd principles in Ilie Chai'ities SORP. make judgjiicnts aiid estimates that air J'easojiable and pi'udent; statc wlicihei. applicable accuiinliiig 4iaiidaYd% li%ve beeii followcd. subject lo any Material dei)aTttIi-¢5 disclosed aiid exi)lained in tlie financial 5tateineiit5' and pi'ei)are tlie fiijaiicial stat¢inenl% Ot) tlie going Concei￿ basis unless it is inappioi)iiate to presun)¢ ¢liat Ihe I'lie t￿￿tC¢S are Yesp(Trn8ible for kccpiiig pi.oper atcountirtg rccords Ilial disclose with reasonablc accui'acy at any tinle Act 2011, Ilic C.hai'ily IAcL()iintS lid Repoi 1%) Regiilaliniis 2anR aiid tlic pi'()Irisinn8 ()f Ilie Irii%l deed. Thcy aic also responsible for safegiiai-diiig tliL Jssets of tlic chai'ity and lience fui- tdking reasonable steps foi. Ihc pi'evenlion and dete¢tioii of f12ud and otliei. IlTegularities. Independent auditol s i'epoi't to the ti'ustees of The Malaysiall Cominoiiwealth Studics Centi'e Ill Cambridge RLPlJI't (bii tlie of tlie linancial 5tateillL'ntS Opinio Iii oui. 01)tlljOll Ilje fit]aiicial stalcnicnls uf Tlie Malaysiall C.oinn)oiiwealih Swdies Certlie in Cainbridge {tlie 'tlJarily'l'. give a true and fail. view of thc slate ofihe cliarity'5 affairs 85 al 31 July 2021 and of its in¢oiniiig ittoui-ces aiid ai)plication ofiEsources foi. tlje yeai. tlieii ended., hdve been pi'uperly pitpai'ed irt a¢¢orddiice will) Uiiiled Kingdotn Gejiei'ally Accepted Aeeouiittng Pracliee, iiicluding Fiiiaiicial kepoi-lijig Staiidui-(1102 'Tlie Fiiiaiicial Repoi-liiig Siaiidai'd appli¢able iti tlie UIC and Republic ot. IIElaiid"; aiid havc beeii piyp￿.ed in a¢¢ordance with the Chai'ities Aet 2011 ajid the trust deed. We liave audited tlie ftJiat]cial slaicn)enlS wlii¢h coii)pi'ise'. the %tJteiMeDI or rinaiicial aclivities., the balance slieel., tlic casli flow slateinent: Ihe iiote8 10 Il)e casli flow stat￿rIent,. the accoiiiiting policies., and tl)e related notes I lo 10. Tlie finaiicial rei)orling frainework tlial lia% been ai)plied iii Ilieir preparatioii ts applieable law at)d Ujiited Kiiigdoj AcLounling Siandard%, ineluding Finallcial Reporitiig Siaiidard 102 'Tlie Finaiicial Reporting Staiidard ai)i?licable ill tlie UIC and Republic of Ircl#n(f" (United Kingdojn Cienerally Accepted Accoutilit)8 Practice). Basis for opinion We condllcted oiir aiidit in accoi'dance witli International Slartdai'ds on Auditing (UK) {ISAs {UKI) and applicable law. Oiu. Irsponsibilities llndei. those standai-d5 ai-c fiirihei- dc5ciibcd in thc auditor's i-c5ponsibilities for Ilic aiidit ol. the financial slHteJnents' section of oui. repoit. We #it iiidepeiideiit of tlic c11￿.￿tY in accordai)ce willi the ethical Irquiretnents tliat are iElevaiit to oui. audit of tl)e financial stateinents the UK, in¢luding Ilie Finallcial Repoiting Council's (Ibe 'FRC's') Ethical Standard, dnd we have fulfilled oui. otlier eiliical IEspon%iliilities in a¢e()Jxlance w&lh these iiquiiEineiits. We believe that the audit evidence ive liave obtained is sufficient and appToprJate to ptovide A basjs foi. our 01)iniotJ. Coiiclusitblls relatiiig to goiiig concei'ii Tn auditing tl)e fijiancial statcmcnts, wc li&ve concluded Ihai tlie tn)siees' use of tlie going ¢ort¢ern basis of accouttting in tlie pieparalion of tlie financial slatejiieiits is appi'opriate. cojidilions Ilial, individually OT Colleciiveiyy Inay cast significani doubt on tlie ehai'ity's ability lo coiilinue a8 a goiiig concern for a period of at Icast twclve n)oiitlis from wheii tlie financial %ialement% ai'e 2ull)orJsed for issue. Oui. responsibilitics and the Irsponsibilities of the tTUStees with rc5pect to going COnCCTll aiE dcscribed in thc rclcvant Tlie otliei. infoillnaiion eompriscs the infor11￿tIOn incliided in the annual repoil, otlier than the financial staleinents and oui. auditor's IEPOI'I Iheiron. The tivstces ale i'espoijsible foi. tlie ath￿. iiifoimal1011 Colltairted withiii the annual i'epoit. Oui. opinion ot) tlic fillancial stale]nents does rtot ¢ovei" Ilie olhei. irtfoiM)alJon and we do not expi'ess any fonii of &8$ui￿1te conclusion Iliei'eoij. Independent auditoj s I'epoi't to the ti'ustees of The MAlaysian Coninioilwealth Stiidies Centi'e iii Cainbridge (continued) Other iiiforniation IcDJ]tlrtuedl ineoi181slcllt witli Il)c finaiiLial slaicineiits ()i- uur kn(?i¥lcdgc vbtaincd In IIIL L()UI3L of Ilie alldil, (Jr oiliei'wise appcai's ba5cd on tlie ivoi-k we llave pel'fol￿1Cd, wc Loiicliide that tliere is a Inatei'ial IMis5taleineiit of ihi5 oihei- infoniidlion, w¢ are Teqiiired to i"eport tl)at fact. Wc li&vc notl)ing to Tepoit in this I'egard. Re5ponsibilitie5 of trustee5 As explained iiioi'e fully in the trustees, responsibilities sialemenl, Ihe liiistees 1¢ If I'csponsiblc foi. Ili¢ i)rcp{￿a1i0n of tlie fiiianciHI statements aiid foi. bciiig satisfied Ilial they give a tiue aiid fair viciv. aiid foi. sucli iiitcnial coiitt-ol as tlie tiuslee5 detei-Jnin¢ is t)e¢essary lo enablc tlie pirparation of fjllajicial slaleiiieiils that aie free fi-oni niaterial niisslalcinenl, Ivlieilier due to firtud oi. ¢iYoi'. In i)IEparing Ilie finaiicial stateni¢nlS, the liuslees are responsible for assessing tlic chwity's abilily to conliiiue as a g()irtg eoiicerji, disclositiK, as applicable, Inulteib r¢latcd lo ¥oing LOliL¢ln aiid using Ilie gi)ing eancem basis of accouiitLll¥ Urtless tlie Ii'ugLe&% eiil)ci' itilend lo liquidale Ilie cliaTily or to cease OllEIHtsotis, oi- liave i-Lalisli alternulive biit lo dn so. Auditor s re5poiisibilities foy tlie Audit of the fiijaneial statemeiits Wc liavc been appointed as aiiditor iindci. s¢¢tion 145 of tlie Lli2ritie$ Act 2011 and i'epoit in aeco¥dance witli the Act nd IElevanl iEoiilalions Inadc oi. li#ving effect Ihei'eitnder. Oui. obje¢iives air lo obtain Jeasonable assuiTrnLe #bout whetlier tl)e finan¢ial stalenients as a whole aiE fiEe froin niateiial ii)isstateinent, wlieiher duc to fraud oi. eLIDr. and to issiit an aiidil0¢5 l¢PQlt that Jntliid¢s our 01)inion. Rtasoiiable assiiTaiicc Is li lii¥li level of assuj'aiicc. but is ijot a guai'at]tc¢ tl)at ali audit coiiducted u) accordaiice with ISA5 (UIC) will always detect a inat￿.1al iiiis51aleiiiei)t wlien il exi5t5. Mis%latenieiit5 cali ari.%e fi-oni li?ud or en'oi. and al'e considered rnalerial if, individually oi. in the aggi'egate, tliey could reasonably be expected 10 influen¢e the econoiiiic dccisions of uscrs takeii on Ilie basis of tlicse financial slaleinents. A furtlier deseriplion of our Irsi)oii%ibilities foi- tlie audil of Ilie finaiieial siaremenl% 1% locaied on Ilie FRC'S website at.. wivw.fr¢,oi' .uklalldiior.sres onsibilities. Thi5 de%ci-ii)tion fon)Is part of our auditor's report. Exteiit to Ivhich thu audlt wa$ Coiisidered capable of detectiiig irregularitles. iiicludlng fY8ud IriEgularities, iiicludirtg fiaud, al'e it]slances of iion-coinpliaiice witli law's aiid Tcgiilaliolls. Wc dcsigii procedures In rraiid. The exteiit to wlii¢li OUT protedui'es al'e capable of detecting i￿eBuIarities, including fraud i5 detailcd bclow. Wc considered Ilie nature of thc ¢1iarily'S indiistry and its control environincnl, and reviewed tlie cliai'ity's do¢umentatiotJ of tljcir policies and piDcediiirs Tclatinx to fiaud dnd ¢onipliartce with laws and iegiilations. Wc also enqiiiTed ofmanagetnent about Ilieii. own identification and as5essrneiit of tkne risks of irjtgiilgl'ities. Indepeiidejit auditor's report to the ti'ustees of Tlie Malaysiaii CommonweAltlI Studies Ccnti-e iii Cainbi'idge (continued) Exlent to ivhich tlie Audil iYx$ consldei'ed capable ofdelecting ii'i'cgularities, ineludirkg fi'Aud {continlledl We obtL2iiied ali iiiiderstaiiding of tlie legal aiid reEiilaloiy franieivork Iliat the charily operate% iii, aiid idetilified Ilie key lved by the tj'ustees on Sigiied on behalf of the ITUStee5 19 202£ 'rHE MALAYSIAN COMMI)NWEI ALTH S'I'UDIES CENTRE IN CAMBIIIDGE CASH fiLOW STATFMF.NT r401. tlle Yeai. eii(leil 31 July 2021 Note 2021 2020 Ntt tAsh outl]Dw from opei'atillg actÉvities {3RR,2831 1448,954) Inconie fi-olli investing a¢tivitle$ {note 7) 758.803 IDeci'ease)1ln￿'efiSe iii cH5II 138X,283) 3U9,849 Recoiiciliation of net easli floiv to niovenient In net funds 2021 2020 {Dccirasellincirase in casli iii tlic ycar 1388.2831 309,849 Cliange in nel funds i'esulting fix>iM eas11 flow5 138R.2831 309,849 Net funds èt l Au¥ubt 779.510 469,661 Net tunds at 31 Jiily 391,227 779,510 THI MALAYSIAN COMMONWEALTH STUDIES CEI NTRE IN CAMBRIDGE NOTES TO THE CASH FLOW STATEI MEI NT For tlie Year ended 31 July 2021 2021 2020 RECONCII.IA TION C)r NE4 T INCOINGI{OUTGOINGI RESOUIICES T() NE4T CASH OUTFLOW FROM OPERATING ACTIVITIES Nct illcome/{expen(litui"e) for Ilie year bcforc investsnent losses IliicJraselldec&'ease iii debtor5 InciEaSelldc￿Ea5e) iii ci'editOT5 172,862 (563,118) ,973 1503,5461 110,424 155,832) Nei ca%li ouiflow froin operating activitie5 {388,283) {448.9541 b. ANALYSIS OF iYET FUNDS Deci-ease in }'eai- 2U20 2021 CJsli fund deposit and at bank 779,510 1388.283) 391,227 THII MALAYSIAN COMMONWEALTH STUDIEI S CLI N'I'RE IN CAMRRIDG ACCOUTrITING POLICIES li oi. the Yeai. ended 31 July 2021 by Cliai-ilicb SORP 2019 issued in Jaiiuary 2019, I'iiiancial Il¢poi-liiig StdLJdili-d 41?i)IILablL iii tlie UK aiid Rcpublic of Irelaiid IFRS 102) aiid tlic C.l)ai'ilie% Act 2011. Tlic pai'iiciilar aLcounling policies adopted by tlie iru%tee.% are desci'ibed bclow. Geiiei'al iiifoi'nialioii and basls of ac£ouiiting Th¥ Malay8tan Commonwealth S￿idIC￿ Centre in C4mbrid¥r is a Ch2rilable T1￿.$(. Tlie fiiiancial slalciiTrLnts air prepared iindei. the histOTTrcal cost ¢onventiott as inodifjed by tlie Irvaliialion of invcstments to Imai-ket value. Going eoncerii In view of tlie illereasingly Close iElationsliip between the activities of tbe MCSC and the Cainbridge Malaysiatj Education and Develoi)tiie&il Tiust ICMF.DT), Ilie Finance Cojklliiillce recol￿￿￿1ded that a folding-in of tlie two tiusts sliould lake place. Tliis irconiiiiendalion wa% uiiaiiiniou.%ly appI￿Ved by Ilie Trn%tees of botli t￿Sts. To dale. iio transfer of a%.%eL%1188 taken i)lace, aiid no dccision lias beeii takeii regardittgwliets suel) a transfci. Inighi occur. CMEDT aiid MCSC continue to i'eiiiain %ei)ai'ale and disliiict cliaritie5. Oij l Augusi 2018, tlie MCSC Truslee8, tOL>Ctlicr with Ihc Univeislty, exec11￿4 a Deed of Ainendijient of Il)c Ti'usl Deed io enable Il)c asse15. liabililies, funLtioi)s and aeiivilies of MCSC to bc ti-aiisfcri-cd to il)e Ti-uslees ()r Ilie Canibridgc Mdlaysian Ediicalion and T)evel()ptneiit Ti'iist {CMED-ri, and for MCSC io beconie a chai'ily IEgi8tercil willi IhL Cliai-ily Cojninission J'ather Ihan a% ali cx¢ihpt ¢liai'ily undei. Ilie ausptces of Ilie Univcj'sity. Thc Objects und Piiiposes of tlie cliai-ity remain iincliangcd. Tliese Dew atiengeinertis aiE now scciircly in place and Ilie cliariry is rcgistci'cd witkn tlie Chaiity Cortiniission. Apai't from thc t]ced to cancel ilie 2021 ElectoiTrl Dem(Kracy conferencc, th¢ impact of covid-19 on the remainin8 activitics of the tt'u5t IS not expected lo be siuiiificant. Tlic t￿Ste¢S al'e coi)fidei)I that the ¢liariry has adcqiiatc funds ai)d i'esouires to conliiiue opeieling foi. the forcseeable futUTe foi. at least 12 n)oiith5 fi-oin the date of signing tliese riiiallcial siatenients and is well placed to Inaiiage its business I'isks succ&%sfi]Ily de%pite tliecuiTeiil unceriaill e¢oiionii¢ outlook. For tliis reason, they continue to idopt Ilie going ¢oncern b2sis in piEp2ring tlic financial slaten)ents. Fuiid accounting Tjie cliarity iiiaintains funds a8 follows.. Upjpesliicledfuiids Unre%ti'icted funds rcpreseiit incojne whicli is expeiidable at tlie discretioii of tlie Iruslc¢s ii) the furllierance of tlie objects of t]ic cliarily. Sucli fuiids may be lield ill oi'der to ftnallcc botli woi'king capital and ¢apiial inveslInent. Inco￿e All incoine is re¢ognised in Ihe slateincnt of finan¢ial a¢iivilte% when Ilje conditiot)s for receipi have been coinplTed with. Inve.siinent incoine is ac¢ounied for wlien receivable. Doii&Éio)Is Doiiatioii iiicome is accounted foT when I'e¢eivabl¢. THE IVIALA YSJATrI COMMONWEALTH STUDIES CENTRE IN CAMBIIIDGE ACCOUTr4TING POLICIES (continued) Foi. the Yeai. ended 31 July 2021 Dollated facilities As un i)age i ilie cliartly J'ejils a pi'op¢i-ly for a pei)pereoni rent. TIIIS Is llot revalued to fail. valLLe a5 It would not be i)ratlical ta revalue ilicsc &cJ'viLes. xpeiidituj'e All exi)eiidililiE is atcoutjled fol. on ali accruals basis and lias bceii cl(IS5ified uiidei. IJeadin&% tlial aggiEgatc all costs related to Ilic catcguiy. Gi'tsiiispaycible Granls payable al'e inade to sttideiit5. and in siippori of oiliei. activities rclatcd to Coiiimoiiwealili stiidTes, in fuii1)ei2rt¢e of tlie cliarit2ble objectives of the tiiist. Tlicsc incliidc an di)pui1ionment of overhead and siippojt Costs. Tlie niain project5 of the ¢liariiy al'e affoi'dable ediicalion, food secui'ily and sustaiiiable develoi)ttient, mitigation of cliiiiatc cliatigc, electoral denio¢ra¢y in Ilie coiniiii)nwealth and affoj'dable nicdiciiic aiid hcalilicare. GoipeiiioNice Ln.¥lS Governante eosis coinpj'ise all costs involviiig tlic public accountability of the cliarity and its coJi)pliance witl) Tegulalion and good pracliee. These costs include ¢05t5 le1a￿d io tlie sialutory audit and legal fccs. Suppoi'i costs Siipi)ort cost.% ale costs for udiiiinT8lratioii of cliai'itable aclivilics. Siipiiorl coinpi-iqe of rent, IMie%, utiliiies, offjee pi'operty cosls. lelepliDn¢, %alaTl¢S. legal, Ir%vel and governance costs foi. tlic cliai'ity. Jnvestrneiits Inveslii)cnts are stated al illaiket valiic at Ilie yeai. end. Realised and unrealiscd gains and losses al'e 4hown ID the appi'opi'iate seciion of ilie %tatemenL of financial activitlcb. PensloNs Eligiblc staff air nicinbers of tlie University of Cainbridge's Contribiiloiy Pension Sclicmc (CPS) to whi¢li the Tiust conlribules. As the Trust is utlable to identify its sliarc of tiic Lllldcilyillg assets aiid 12abiliti¢s of the CPS on reasonable and coiisistejit basis, il a¢¢outsl8 if tlie CPS a deftned conlribulioji sch￿￿¢. 50 that the cost i equal lo Ilie lolal of coiili'ibulions payable in tlie yeai.. One membei. of staff wlio irsigned itl 31 O¢tobeL' 2020 belonged to a workplace pension scheine nianaged by Cl'eulive Peii.%ioii5. Finuncial Insli'umcnts Tlic eljai'ity oiily liave finaiicial ass¢ls and flnancial liabilities of a kind that qualify as basic finan¢241 in8tiwniettis. Basic financial EnsIl￿in¢nls are initially recognised at li'ansaclioii value aiid subsequently nica5ured at tlicir ttleineni valllc. Ti'ade artd i)Ihei' debtors air i'ccogni5ed at tlic 8Cttl¢in¢rtt aii)uuni due aftei. any ti'ade discouiit offcrcd. Pi'cpayinentS are valu¢d at tlic ainount pi'epaid llcl of any Iiade discoun1% due. Casli ai bank aiid casl) in liaiid includes cash aiid sliorl Icrin liighly liqiiid investijicnts willi a 81iort tnattii-ity of Ilircc illontlib oi. le￿ fi'()In tlie dale of acqiiisition oi. openillg of tlie dcposit oi- siinilar a¢coui)t. Cirditois aiid piovisioiis are i'ecognised wlieie tlie Gliarity lias a present Obligat￿On resulting fi'oin a P%%t event tliat ivill pjobably result iii tlie Iransfei. of fuiids to a 11)ird paity aiid Ilie ainounl due to settle tlie obligatioll can be Ineasui'ed or eslilliaied i'eliably. Creditor5 are norliially i-ecogiiibed #t their setilemei)t ajnouni after allowing for any ttade dis¢ouiits due. Critical ¥ccountlng judgenients and key souree$ of estlmatlon untertalllty In the application of Ilie Cliai'ity's accounting i)olicÈe5, wliich are de￿l'1btd on pages I l and 12, tlie Tiustees are Irquii'ed lo niake jiidgcinenls, estiniaies and as5uinpt10115 about Ilie canying aiMouniE of J%*els ai)d liabilities illal arc tiot rcadily ai)i)ai'ent fioii) otli¢i' sauices. Tlie cstiiiiates and a5S0¢jilt¢d assumi)tTons aTe ba8ed on lJi%toi'ical expej'ience and otlier factors tl)at are considered lo bc relevaiil. Actual resulis Inay diffeT froin these estiinat¢s. 12 TIIE MALAYSIAN COMMC)NWEALTH s"rui)IF.S CENTRE IN CAMBRIDGE ACCOUNTING POLICIES (eontlnued) oi. tlie Yeai. ended 31 July 2021 Tlie esliiiiates aiid underlyiDg il%%Ulnl)lioiis arc I'cvicwed oil ali oiigoiiig ba%1%. Revisioiis to accouiiliiig csliimaies are rLcu¥iiiscd in Ilie pei'iod iii ivliich tli¢ e%iiii)aie i.q rev18ed iftlje rcvisiot) affccts only Ilial period. or ii) Ilie iiei-iod or Tli¢ Ti'ustees do considcr tliere aTe any ci-itical judgeinenls oi. sourees of cslitiialion uiicei'laiiily Teqiiiriiig disLlosuie beyi)rtd tlje accounling policies listed abovc. 13 THI I¥IALA YSJAN CoMI￿10￿wEl ALTH S'I'UDILI S CENTRE IN CAMBIIIDGE NOTEI S TO THE FINANCIAL STATEMCI NTS b oi. the Yeai. ended 31 July 2021 INVESTMEN'I. INCOME Unresti'icted fuiid$ 2021 2020 University deposit accouiit iiileiesl Cajnbt'idgc UiiivLisity P.iidowiiient Fiind Dis11'ibiilions Oiliei. invesltnenl incoinc (Cliai'ifun(l) Bank interest 345 20,958 7,394 306 6,245 23 6,613 29,Ci75 CHARITABLE ACTIVITJF Uiii'esti'ictcd fuiids 2021 2020 Dii'eet eo$ts SalaYies- edlicat￿on and rest￿th Proinotioii tnain pioj¢c15 Gi'ants- ehai'itable purposes (note 3) 95,447 26,500 187.438 100.509 121,947 287,947 Support eosts Relit, and iitilities Propei'ly Losts Teleplione, po%tage and coui'ierb Salaries- adininistratioii Offiec expenses Ti'avel- adiiiinistralion Bank ¢h81'ges Legal fees Govei'jiance costs (note 4) 3,929 13,235 1.643 158.233 8,235 6115 376 3,540 19,392 1.901 161,031 10,872 773 380 22,621 24.764 25.468 211,804 245,274 333,751 533,221 14 THEI MALAYSIAN COMMONWEALTH S"I'uDI￿.s CEN'I'RL IN CAMBRIDGE INOTEI S TO THE FINANCIAL STATEMENTS Foi- the Yeat. ended 31 July 2021 ANALYSIS OF GRAN'I'S 2021 Grants to 2021 Gt'9rtts t(b Gt'aJitS to llldividua15 liistitutionb lthdivldual.s 21)20 2020 Ediication 26,500 48.880 51.629 Total 26,500 48,880 51,629 2021 Gi'ant5 10 individuals 26,500 TotAI.. Educatloll 26.500 2020 RecipiLnt ol Inslltutlon21 Graiits Tv siippoi.l.sliideii/.f ivorkiiig dÉiielf)piiieiilpJ'ojects.' To siiljpoi'l ll leucliFiig appuiiiliiiéiii lil ilié Ceiiije ulsoiiili Asiaii Siiidies 48,88a Total.. Education 48.880 GOVERNANCE COSTS 2021 2020 TIEasureL' Audit fee 13,054 12,414 13,064 11,700 25,468 24,764 15 THE MALAYSIAN COMMONWEALTH STUDIES CENTRE IN CAMBRIDGE NOTES TO THE FINANCIAL STATEME( NTS li ol. the Yeai. ended 31 July 2021 INFORMAI'ION IIEI GARDINC E4 MPJ.oYf4 F.S AND TRU,STfi ES 2021 2020 Aveiagc number ofeinpltsyees during tlie ycai. bcing Ilie full tijnc eqiiival¢i)I for i)att liine %laff Total remuncL71tion ¢05ts 171,287 174,095 The key managen)ent peisot)nel arc thc nienibers of the Executive Conllnittee, as set oiit oll page li of this Lti)oit. The Dii'ectoi- and TJEa%uiei' are the only metiibeiE who receive Iriiiunej'ation fi'oiii Ihe Ti'u$l. Reniuneralioii is appix)ved by tlie Executive Comijiiitee after eon.sidei'ing the re¢oiMinendation% of Ilje Rcniunei'alioii Coniniiltee. In settling tlie l¢vcls of rcniuiicr#tion, Ilie ReiMun¢ralioii Coiiiniittec lias L-egard to cotniMiable i?ay levels in Ilje UllIVCl￿Jty of Cainbi-idge. Tlie total reinunei?lion (including pensioii conti'ibulions aiid etnployei s tialional insui'ance) of key IiiaJiaget)ietti pcrsoiittcl of tlie ¢liarity for Ilie year elided 31 July 2021 wa8 £98,ICIO12019-2O.. £98,178). No Iru51ee received any remuneration froni tlie tixssl dui'ing tlie y¢ar (2019-20.. £nill. During tlic year no tnistces had travel expenses reiinbuY.8ed12019-20 £nill. Tlieir was oiie eimployee {2019-20'. oncl witli a $4lary in tlic ratlgc £70-£80k. No otlicr einploycc liad emoluments gi'eatei. Ilian £60k {2019-20'. nil). 2021 2020 AiJAlysls of $tgff costs Salarics ajid wages Othej. petision costs Social seeursry costs Appienticesliip Icvy 142,285 12,753 15.599 650 144,231 11,873 17.356 635 Total 171.287 174.095 TAXATION Tlie Malaysiaii Commonwealtli Studies Cet)li'e in Cambi'idge is a i'egi$¢ered chariiy artd is exempi from lax on tlie Taxation of Capital Gains Act 1992 to Ilie extent that tliey are applied to 115 cljarilable objectives. No tax ¢lidi'ges l)avc arisen in tlie Cliai'itable Tjiist. THE MALAYSIAN COMMONWEI ALTH STUDIES CEI NTRE IN CAMBRIDGF NOTES TO THE FJNANCIAL STATEMENTS rioi. the Yeui. ended 31 July 2021 INVESTMLINTS 2021 2020 Mai'ket value al l AugLl%t Net Uiireilli￿t1I artd It£ilis¢d iiiv¢slnietil gainslllossesl Piucecds fr(Jrn disposal 14,573 27.084 1,018,861 1145.485) 1758.803) Market value at 31 July 141,657 114,573 It]ve51Jnet]ts conipri5e Ilie followiiig.. 2021 2020 Mai'ket vAlue MAI'ket value Unlts Cost Cost M&G Chaiifiind 9,184 107,625 141,657 9,184 107,625 114,573 Tlie M&G Chai'ifui)d is a iiiiit tiust. M&G Cliarifund ib a cliajjty with a widc 5pl.cad of iiiveslineiits. I'lie portfolio coiiiprises appiDxiiiiately 100 stock5. Tlie 81ni 15 to pix>vide a level of iiicon)c that is significatiily higliei. Ilian that of the FTSE All-%hair ljidex. ANALYSIS OF ASSETS AND LIABILITIEI S BEI TWEI EN FUNDS Uniestylcted Total Total 2021 2020 Fixed assets lrtvestmettts Ciiiyent asscls AcLTued income Casli fund deposits and at bank Dcbtor fiDJn otbcL' TLUSts Cuririit liabilities 'I'rade CiEditoi Ac¢iual% 141,657 114,573 501,677 391,227 200.841 1,561 779,553 137,796 14.2741 {16,4151 {7.0161 111,7001 1.014.767 Tli¢ debtor lu oiliei" Trusis is comi)rised of amounts owed fYi)ni Cambridge Malaysian Edu¢ation and Developnient TrLiSt. THE MALAYSL4Tr1 COMMONWEI ALTH STUDIES CLN'I'RE IN CAMBIIIDG NOTES TO THE FINANCIAL STATEMENTS For tl)e Yeai. ended 3] July 2(121 MOVEMENT IN fuNDS Revenue balaiice at Revenue BalancL a131 July 2021 Inci'ea5e In iiiArket value liicoine Expenditure UNRESTRICTF.D FUNDS Capital account Inconic ucLouiit 12,049.143 (11,034,376) 27,084 12,076,227 110.861.5141 506,613 {333,751) ,014,767 506,613 (333.751) 27,084 1,214,713 Rewenue b#lartct at l Aiigust 2019 Revenue BAlanee at 31 July 20211 Deei'e4S¢ iij inai-ket vaIue Iiicoiiie Expeiiditure UNREI STRIC'I'ED FUNDS Capital accouiit Jncojnc accouiit 12,194,C)28 (10,530,830) (145,4851 12,049,143 111,034,376} 29,675 1533,2211 1.663,798 29,675 1533,2211 {145.4851 1,014,767 io. RELATEI D PARTY TRANSAcfioNS The UniveiBiry of Caiiibi'idge {a related party as des¢i"ibed on page il provides the tiiisl with payi.oll and coinputer.%upport sei'vices fice of cliw'&Te, Ilie value of wliicli (whil%t il could be &%¢imatedl is not cotisidei'ed niatcrial to adju81 foi. in the aecounts. Tliere were no other related party transactioiis for ilie year ended 31 July 2021 {2020.' iione). S()iiie ti'ustces liave close ties iviili Ilie UJiivei3ity of Cainbi'idge and its c.olleges. and sonie oftl)c otrscer.% and ti'ii%tee5 ait al.%0 offjcas 01. li-u%tees of Ilie CMEDT wilh wliicli Ilie woik i)rtlie Irusl Is closely as50Liuied. Tliese rclatcd inieTe81% al￿ ijicluded iii tlic Irgislei. of dcclaird iliieresls of Iru%lees and officeis wliicli is iipdatcd al Icdst oiice a ycai-. Rllle8 for inanaging declared inteie%ts liavc been approved by Ilie tIUbtCLg. 18