**Registered number: 00910010 Registered Charity number: 1179820**
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2021**
**ACS INTERNATIONAL SCHOOLS LIMITED**
## **CHARITY INFORMATION**
## **TRUSTEES**
C J E Ferguson S Beurier (resigned 21/09/2021) N E Bobay J B S Swallow C J Wille N Louis (resigned 10/10/2020) R M Macnaughton - Chairman P Mundy S B Jackson H.M.C Pinto (Appointed 26/01/2021) T.Moya Mose (Appointed 03/02/2021) C.N.Banks (Appointed 13/01/2022)
## **COMPANY SECRETARY**
G Charles
**REGISTERED COMPANY NUMBER** 00910010
**REGISTERED CHARITY NUMBER** 1179820 **REGISTERED OFFICE** Heywood Portsmouth Road Cobham Surrey KT11 1BL **INDEPENDENT AUDITOR** Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW **BANKERS** NatWest Bank Plc 135 Bishopsgate London EC2M 3UR **SOLICITORS** Eversheds Sutherland 1 Wood Street London
## **ACS INTERNATIONAL SCHOOLS LIMITED**
|**CONTENTS**||
|---|---|
||Page|
|**Annual report of the Trustees**|1 - 16|
|**Strategic report**|17 - 20|
|**Statement of accounting and reporting responsibilities**|21|
|**Independent auditor's report**|22 - 25|
|**Consolidated statement of financial activities**|26|
|**Consolidated balance sheet**|27|
|**Charity balance sheet**|28|
|**Consolidated statement of cash flows**|29|
|**Notes to the financial statements**|30 - 50|
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
The Trustees present their Annual Report for the year ended 31 July 2021 under the Charities Act 2011, including the Trustees’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year and confirm that the latter comply with the requirements of the Charities Act 2011 and the Charities SORP 2015.
ACS International Schools Limited is a Registered Charity (registered charity number 1179820).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Documents**
The Charity is governed by its Memorandum and Articles of Association, last amended on 1 October 2017.
## **Governing Body**
The Governing Body of ACS International Schools Limited is known as the Board. There is one Governing Body for the three UK Schools and the one Qatar School. The Board is the main decision-making body of ACS International Schools Limited (the “Charity” also known as “ACS”). ACS and each subsidiary company are governed by a separate board (together the “ACS Group”). The Board is accountable to the Members and the public for setting the strategy and directing the performance of the ACS Group.
The Board is collectively responsible for promoting the long-term success and viability of the ACS Group by directing and supervising the ACS Group’s affairs, exercising the powers of the Charity, subject to any relevant laws and regulations and in accordance with the Articles.
The Board conducts a full internal review of its activities and effectiveness annually. The Board also assesses its activities and effectiveness via an external third party every two years.
## **Recruitment and Training of Trustees**
Appointments to the Board will be recommended by the People Committee for approval by the Board or will be approved by the Members by an ordinary resolution at a general meeting.
Appointments to the Board will be subject to the terms and conditions set out in an appointment letter recommended to the Board by the People Committee.
The term of appointment for a Trustee will normally be for an initial three year period, renewable by the Board on the recommendation of the People Committee for a further three year period, and thereafter annually for a maximum term of nine years in total. Exceptions may be made if deemed by the Board to be in the best interests of the Charity.
Prospective candidates for vacancies on the Board are considered in light of the skills and experience required at the time, which will include personal competence, professional qualities, specialist skills and experience. The Board is committed to being as diverse as practicable, balanced with ACS’s needs for high quality Trustees. To ensure that Trustees’ roles and responsibilities are carried out effectively, the new Board members attend a detailed brief by the Chairman, Chief Executive and other relevant members of the Leadership Team.
The Trustees conform to the recommended and best practice for governance contained within the Charity Governance Code across the seven areas and are comfortable there are no significant areas of review required. Trustees continue to monitor the best practice principles contained within the Code.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **Organisational Management**
The Board is legally responsible for the overall management and control of the schools.
The Board meets at least four times a year and is supported by the following committees:
- The Audit and Risk Committee investigate, advise and report to the Board on certain matters relating to financial reporting, external audit, internal controls and risk management. The Committee was chaired by S Beurier until 21[st] September 2021. From 22nd September 2021 the Committee is chaired by J.B.S Swallow.
- The Education Committee investigate, advise and report to the Board on certain matters relating to the educational philosophy, programmes and student learning outcomes of ACS Group schools. The Committee is chaired by P Mundy.
- The People Committee investigate, advise and report to the Board on certain matters relating to appointments, remuneration and governance. The Committee is chaired by C Wille.
All Board sub-committees meet at least three times a year.
In accordance with the Articles of Association, the Board has the power to delegate responsibility (but not accountability) to committees, directors, and the management of the Charity, and to that end the Board has established a Schedule of Delegated Authorities.
All powers, duties and decision-making responsibilities conferred on the Board by the Articles that are not set out in the Schedule of Matters Reserved for the Board and have not been delegated to a committee, the Company Secretary or a Director, are delegated to the Chief Executive.
The Chief Executive is Timothy Cagney. The Chief Executive is responsible for proposing and delivering the Group’s strategy, and for managing the day-to-day activities, operations and resources of the Group.
The Chief Executive is the most senior member of the Leadership Team. The Leadership Team is the key management team. The Leadership Team includes the following employees:
- Chief Executive
- Chief Finance and Estates Officer
- Advancement Director
- Human Resources Director
- Education Strategy Director
- Partnerships Director
- ACS Cobham Head of School
- ACS Egham Head of School
- ACS Hillingdon Head of School
- ACS Doha Head of School
The People Committee consider remuneration and make recommendations to the Board on the remuneration policy for the Chief Executive and Leadership Team and the annual pay review and material changes to Groupwide compensation policy and practice. The Board reviews the People Committees’ recommendations and determines the Group’s remuneration policy.
The appropriateness and relevance of the remuneration policy is reviewed annually including reference to comparisons with the local labour market and to comparisons with other independent schools to ensure that the Group remains sensitive to broader issues of pay and employment terms and conditions elsewhere.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
The Group’s ability to deliver its charitable purpose and objectives is primarily dependent on its key management personnel and staff.
## **Promotion of the success of the organisation to provide public benefit**
The Trustees confirm that in accordance with Section 172 (1) of the Companies Act they act in a way they consider would be most likely to achieve the purposes of the Group. In making this assessment the Trustees have considered the following:
## **a. The likely consequences of any decision in the long term**
The long-term sustainability of the operating model is considered by the Trustees as set out in the going concern statement in the Strategic Report section of the Trustees’ Report. Specifically, the Trustees consider both short and longer term financial projections and the key risks that could negatively impact the sustainability of the Group. The Trustees are presented with management information, budgets, forecasts, cashflow projections and progress against the financial plan on a regular basis.
Risk management is embedded at all levels across the Group. The most significant risks are discussed at each Board meeting. See the risk management section for further details.
The Trustees review and endorse all policies to ensure consistent long term regulatory compliance.
## **b. The interests of the Group's employees**
Frequent communication with employees is essential, especially during the Covid-19 lockdown when most employees were working remotely. This has been conducted by regular meetings and routine weekly written communications to employees.
See the employee policy section for further details.
## **c. The need to foster the Group’s business relationships with suppliers, customers and others**
All suppliers are treated fairly and promptly with business terms adhered to. The Company complies with the UK’s Payment Practices Regulations that require the publication of information on the supplier terms offered and average payment statistics.
The parent contract forms the basis of the relationship with fee payers. This is reviewed regularly to ensure best practice and applied fairly and consistently.
A fair policy of bursary awards, consistently applied, support families who may not otherwise be able to access education at the school.
The Group works with a range of donors in support of furthering its fundraising aims and objectives. Group fundraising is bound by the Fundraising Policy and Gift Acceptance and Review Policy. The Group is transparent with information and prides itself on building mutually beneficial relationships.
## **d. The impact of the Group’s operations on the community and the environment**
The Group has completed the Energy Savings Opportunity Scheme (ESOS) reporting requirements and is preparing for reporting under the Streamlined Energy and Carbon Reporting (SECR). The Group is concerned about its energy consumption and carbon emissions and wishes to utilise the mandatory SECR legislation to identify ways of saving energy and reduce on carbon emissions. Further details of this are in the Strategic Report section of the Trustees’ Report.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **e. The desirability of the Group in maintaining a reputation for high standards of business conduct**
The Group’s Procurement policy outlines the responsibility of company employees to undertake procurement processes that ensure procurement best practice is followed. This requires employees to produce an approved Purchase Order in order to procure goods and services. The policy also requires quotation and tender procedures with suppliers as the value of the order being placed rises. Preferred suppliers are used wherever possible with new suppliers going through an authorisation process. The Group may withhold payment of an invoice that doesn’t include a Purchase Order but otherwise adheres to supplier payment terms wherever possible upon receipt of an invoice from the supplier. The Group would seek to resolve any supplier disputes on a case-by-case basis.
The Group’s Anti-Bribery policy sets out the responsibilities of staff to report any incidents or suspicion of fraud, bribery or corruption arising in the course of their work and to cooperate fully with related investigations; and comply with applicable Finance policies and procedures. The Group takes a zero tolerance approach towards fraud, bribery and corruption. It is committed to complying with all applicable laws and regulations relating to fraud, bribery and corruption wherever it operates.
The Group has an Anti-money laundering policy which seeks to prevent the organisation and its staff being exposed to money laundering, to identify the potential areas where it may occur, and to comply with all legal and regulatory requirements, especially with regard to the reporting of actual or suspected cases.
## **f. The need to act fairly between members of the Group.**
All Trustees and senior staff complete an annual Conflict of Interest declaration. There were no conflicts of interest identified in the year to 31[st] July 2021.
## **Group structure and relationships**
ACS was established in 1967 as a commercial organisation founded and originally owned by Mr EJ Poularas and Mr G Speed but subsequently ultimately owned by The Emmanuel John Poularas Will Trust (registered charity number 1169800) following the death of Mr Poularas.
In 2018 ACS became a charity to advance education and secure the longevity of ACS. ACS operates under the registered charity number 1179820. In 2018 the Inland Revenue accepted the Company as a charity for tax purposes with effect from the date it adopted charitable articles.
On 12[th] November 2019, the entire issued share capital of ACS International Schools Limited was transferred from David Thomas, as the sole trustee of the Emmanuel John Poularas Will Trust, to the Members of ACS International Schools Limited. At the same time, David Thomas ceased to be the company’s person with significant control and ACS International Schools Limited became the relevant legal entity.
## **Subsidiaries and holding companies**
The group accounts of ACS International Schools Limited incorporate the results of the following subsidiaries:
## **ACS Commercial Enterprises Limited**
ACS has a wholly owned non-charitable subsidiary, ACS Commercial Enterprises Limited (ACSCE), whose annual profits are donated to ACS under the Gift Aid Scheme. The trading activities of ACS Commercial Enterprises Limited primarily comprise revenue from the Sports Centres and lettings of the campus facilities when not in use by the Schools. The subsidiary’s aims, objectives and achievements are covered in the relevant sections of this report.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **ACS International Schools Overseas Holdings Limited**
ACS International Schools Overseas Holdings Limited acts as a holding company for ACS’s investment in ACS Doha International School LLC. It was established to limit the risk exposure of the investment, and should ACS decide in the future to operate other schools overseas, it would be used to do the same for such operations.
## **ACS Doha International School LLC**
ACS Doha International School LLC (ACS Doha) was incorporated in 2011 in Qatar and is a programme related investment to enable ACS to establish and operate a school in Doha. The objects of ACS Doha are to advance education and the school has grown since 2011 to over 900 students from ages 2-18.
## **Risk Management**
ACS Group has established formal mechanisms that facilitate the identification and management of risk, thus safeguarding the delivery of strategic and operational objectives.
The risk management framework includes:
- A Risk Management Policy and Risk Appetite Statement;
- A Risk Register to identify, evaluate and manage significant risks;
- A standard Risk Matrix, identifying likelihood and impact used throughout the organisation;
- Assurance and audit processes;
- Governance processes;
- The underlying policy and control environment.
By applying the risk management framework throughout the organisation the ACS Group ensures:
- risks are identified, reviewed and where appropriate proactively managed;
- the parameters within which ACS Group would want to conduct its activities are clearly identified;
- controls and processes are designed and implemented to help mitigate identified risks to acceptable levels;
- the effectiveness of controls and processes are regularly reviewed and where necessary tested;
- there are crisis management and business continuity systems in place with clear accountabilities.
The Board has overall responsibility for the Risk Management Policy and Risk Appetite Statement, assisted by the Audit and Risk Sub-Committee whose activities include working with senior management to compile and review the Risk Register.
## **Principal risks and uncertainties facing the business**
The principal risks that have been identified include:
- Significant decline in enrolment that could lead to financial loss, restriction on growth and educational offering. To grow, the ACS Group must continue to target other market segments including students from overseas (boarding) and local self-paying families, in addition to expat families. This enables the ACS Group to react quickly with improvements as necessary and maintain its word of mouth referrals;
- Along with other international schools in the UK and overseas, together with many British independent fee-paying schools, the Covid-19 pandemic has dampened demand for the upcoming year. ACS acted quickly to recognise this global impact and monitor demand, manage the enrolment pipeline and budget prudently. Marketing and Admissions programmes remain flexible to support a hybrid of virtual and face to face or move back to virtual only activity, if required, due to the continued pandemic and a change in government regulations. ACS continues to monitor the pandemic and the resultant economic and travel
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
consequences closely and assess the impact on enrolment.
- Risk of cyber attack on IT systems and data that could lead to reputational damage or financial loss. Policies, procedures and training are in place to protect the IT systems and data.
- Safeguarding and Health and Safety. ACS Group wishes to create an environment in ACS schools where all feel safe and secure and can thrive and therefore policies, procedures and training are in place to mitigate these risks.
- Additional risks associated with the current Coronavirus pandemic have been identified which are included in the Coronavirus Pandemic Impact section of the Trustees report.
Careful and prudent financial management of the ACS Group ensures that it is not exposed to significant financial risks, providing a stable base for the future development of the organisation.
## **Employment policy**
ACS is an equal opportunities employer. The ACS Group is committed to the fair treatment of all employees, potential employees or users of its services, regardless of race, gender, religion, sexual orientation, responsibilities for dependants, age, physical/mental disability or background. In 2021, a DEI Charter was established with priority pillars for strategic action being policies and procedures, teaching and learning, recruitment and training, and communities. A staff led DEI Council was set up, as well as employee affinity groups for racial equity, gender equality, LGBTQ+, religion and belief.
ACS is committed to acting ethically and with integrity in all business dealings and relationships and to implementing and enforcing effective systems and controls to ensure modern slavery is not taking place anywhere within the ACS Group.
ACS are proud advocates of the London Living Wage, ensuring that staff receive a fair working wage.
In line with legislation, ACS reports its UK gender pay gap on an annual basis and takes measures to address any gender related bias identified.
The Group's policy is to consult and discuss with employees, hold staff forums and encourage meetings where matters that are likely to affect employees' interests can be discussed. Staff are also consulted on specific issues via pulse surveys – these have been run on specific topical issues such as support for wellbeing during the Coronavirus pandemic.
In addition to staff forums, information on matters of concern to employees is provided on a regular basis via staff meetings, all staff communications, and maintenance of information on the all staff portal, PowerSchool Learning.
ACS provides a strong level of support to staff for their wellbeing through the provision of private medical insurance, an employee assistance programme, counselling support, self-help guidance, low cost sports centre access and a range of wellbeing activities on campus.
## **CORONAVIRUS PANDEMIC IMPACT (COVID-19)**
The Coronavirus pandemic has impacted the lives of citizens globally. ACS has responded proactively to the challenges brought about by Covid-19. Operationally, ACS’s primary focus has been to comply fully with government regulations and guidelines. Within this framework, ACS has then sought to deliver the best possible education to its children and to support parents and staff as much as possible during this very challenging period. The financial impact of Covid-19 is included in the Financial Review later in the Trustees report.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
In line with the Government guidelines, in January 2021 ACS closed its UK campuses and focused on providing high quality online education to its students. A phased return to campus for all students began in March 2021, with the schools organising lateral flow testing for all students and staff with effect from that date. Similar measures were taken in Doha, in line with Qatari government restrictions.
ACS responded quickly to legislative changes and the needs of its employees by taking the following actions:
- arranged for staff to work from home during lockdown.
- increased the level of wellbeing support for all staff.
- participated in the UK government’s Job Retention Scheme, topping up payments for any furloughed staff to 100% of their normal pay. The costs of furloughed staff have been successfully reclaimed from the UK government.
- made all necessary arrangements to ensure a Covid secure educational setting and workplace when the schools returned to campus.
- communicated more frequently with staff on a wide range of issues including changes to working practices and government requirements for reporting suspected and confirmed cases of Covid-19.
Additional risks associated with Covid-19
- Risk of lower enrolment. Along with other international schools in the UK and overseas, together with many British independent fee-paying schools, Covid-19 has dampened demand, impacting enrolment. ACS acted quickly to recognise this global impact and monitor demand, manage the enrolment pipeline and budget prudently. Whilst enrolment for the academic year 2020/21 is lower compared to last year, its results were ahead of budget. Marketing and Admissions programmes and communications have pivoted to digital and virtual channels successfully to target securing interest in the schools, attendance at student recruitment virtual events and open days. Marketing and Admissions programmes remain flexible to support a hybrid of virtual and face to face or move back to virtual only activity, if required, due to the continued pandemic and a change in government regulations. ACS continues to monitor the pandemic and the resultant economic and travel consequences closely and assess the impact on enrolment.
- Increased risk to financial viability. This is predominantly driven by the risk of lower enrolment and fee levels. These risks have been extensively modelled and mitigated against with a wide range of cost reduction programmes.
- Impact on educational outcomes. The risk that student progress is reduced due to distanced leaning or hybrid programmes, has been minimized by extensive planning and operational execution to provide the best possible distanced learning.
- Health and Safety risk. There are a wide range of potential Health & Safety risks associated with Covid19. Led by the Health & Safety Manager, ACS has conducted extensive risk analysis, developed risk assessments in line with Government guidance and undertaken mitigation work in this area.
## **OBJECTS, AIMS, OBJECTIVES and ACTIVITIES**
## **Charitable objects**
ACS’s charitable object, as set out in the Articles of Association, is to advance education in particular by the provision and conduct of schools. In furtherance of this object for the public benefit ACS has established and administers a Financial Assistance Programme and a Partnership, Grants and Access Programme. The Board is mindful of the longstanding need to provide public benefit and the requirements of the Charities Act 2011.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **Aims**
Within its charitable object, ACS’s intention is to operate schools that provide a high-quality education within an internationally diverse context with the highest standards of teaching, pastoral care, facilities and support for students.
ACS prepares its students to be ready. Ready for cultures that crossover, boundaries that blur and ideas that interconnect. Ready for a world that demands a new kind of learning, and a new kind of citizen. ACS is a dynamic learning community. ACS’s character is built on integrity, open-mindedness and empathy. ACS is proud of its international community, and their commitment to make a difference. ACS welcomes people of all cultures from around the world to create a powerful, shared experience that shapes the way ACS teach and learn, and actively defines ACS’s international character. ACS strives to build strong partnerships with parents and stakeholders. Above all, ACS appreciates that happiness enriches learning.
## **Objectives for the year**
The main objective of ACS is to continue to provide education of the highest quality that meets the needs of an ever-changing future.
The primary objectives of ACS during the year were:
- **Progress the Financial Assistance Programme**
- **Progress the Partnerships, Grants and Access Strategy**
- **Focus on the Education Strategy and People Strategy**
- **Progress Fundraising plans and Alumni relations**
More detail is provided on the progress of each of the above areas, later in the Trustees report.
Supporting ACS’s object to Advance Education the following core values have been developed:
- Engage in community
- Drive positive change
- Promote excellence through learning
- Enrich the international experience
ACS’s education philosophy ensures that ACS focuses on being a dynamic learning community. ACS believes that a great education needs to be balanced and so ACS focuses on three core expected school-wide learning results ensuring ACS students become:
- An effective learner
- A confident individual
- A caring contributor to society
## **Public Benefit and Community Engagement**
ACS was founded in 1967 to operate schools in order to educate students. As a charity ACS is committed to providing public benefit, in accordance with its objects. The Trustees have considered the requirements of the Charities Act 2011 and the charity commissions guidance on public benefit in setting the objectives and activities of the charity. Currently ACS Group operates four schools: ACS Cobham, ACS Egham, ACS Hillingdon and ACS Doha. During the year on average 3,213 students were educated by ACS.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
ACS’s schools actively engage with communities, provide financially assisted places to help advance education and provide resources to develop community partnerships with both local organisations and schools.
## **Financial Assistance Programme**
ACS has invested more than £1million in financially assisted places for 50 students in its ongoing commitment to increase access to an ACS education to young people from a wide variety of backgrounds. It recently opened applications for the 2022/2023 academic year, which will enable a number of young people to receive subsidised or fully funded places at its UK schools.
Bursaries are awarded from 10% - 100%. Recruitment of students from diverse backgrounds and economic circumstances has resulted in the average award of over 85% of fees, with a significant cohort of students receiving full fee remission.
## **Hardship Awards**
During a challenging year, ACS doubled its budget to recognise the extraordinary circumstances affecting members of its community. By providing short-term means-tested awards to support families facing sudden or temporary financial hardship, many current students were able to continue their studies without interruption.
## **Partnerships, Grants and Access Strategy**
ACS’s ambition is to achieve a step change in engagement by developing partnerships with schools and organisations to advance education in their communities. ACS partnerships will focus on key areas to ensure ACS can provide valuable and ongoing public benefit. ACS’s aim is to set up partnerships to widen access to ACS’s education facilities and resources, by bringing independent and state school communities together. ACS shares their expertise and promotes active participation in a number of areas including:
- the sharing of teaching facilities with state schools (for example music facilities or sciences labs etc.);
- the sharing of teachers with local state schools.
- permitting pupils from state schools to attend instruction in subjects they would not ordinarily be able to study (for example Theory of Knowledge, a range of mother tongue foreign languages).
- making facilities, such as sports pitches, swimming pools, sports halls and theatres available to pupils at state schools.
- sharing teaching materials with state schools and
- the sharing of expertise in key areas such as Leadership, Teaching, Curriculum development, and overall school improvement, mentoring and support.
ACS has started developing partnership hubs of schools and will continue to build further partnerships in our locality. For example, ACS’s relationships with other local state schools include:
- Shared facilities, resources and expertise across partnership schools.
- A Friendship in Music programme, which is an annual festival in partnership with a group of schools. This is rotated at different schools held at the beginning of each year.
- Undertaking a project with a local school, working with special education needs pupils to help improve their social skills and for ACS students to experience the challenges and opportunities faced by members of the community.
- Establishing a partnership with a school based on mathematics extension learning.
- The development of a partnership choir made up of local primary schools.
- A peer tutoring program where High school students tutor lower school pupils at partner schools.
- A service learning offer to ACS students working with the local community.
- Working with Partners such as Pinewood Studios on film, animation and set design.
- Teacher training and CPD i.e. Literature in education in partnership with Brunel University.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
- Development of online training materials to support partner schools i.e. Blended/Hybrid learning (Covid).
- • Fundraising for local charitable needs and opportunities (i.e. Vulnerable children facing food insecurities).
- staff from a primary school visit ACS in order to learn about the use of technology in the classroom.
With the employment of a Partnerships Director in January 2019, ACS schools are in the process of forming partnerships hubs around each of our campuses. These hubs will offer educational events, shared resources and facilities, teacher training and a new initiative offering ‘outreach boxes’ for free loan of modern equipment for classroom topics. These include class sets of virtual reality and augmented reality headsets, various cameras (SLR, 360, Thermal, Go Pro) and high end technology such as Pepper the robot and Nao the robot. ACS won the International Schools Award this year for ‘Community’ and ‘Digital Learning’ for this initiative.
ACS is also developing a mobile application to assist our campuses with running these partnership hubs, monitor and evaluate impact and formulate high quality, useful partnerships with business, charities, schools, universities and parents. This application will also form the base of our Service learning offer, outside of what we already do with PYP, MYP, DP and DOE. This pilot application is now live on Apple and Google Play Stores (ACS School Partnerships).
During the Covid pandemic ACS worked closely with the NHS ICU teams in the development of a 3D printed respirator project to fill a gap in medical provision. This was funded with generous donations from ACS parents and our educational network.
ACS supports many projects outside of the UK and Doha, to advance education of both ACS students and students abroad. Some of these projects include:
- Namibia Project (registered charity number 1163681) - Since 1999, ACS Cobham has been sending groups of students and teachers to Namibia, to participate in lasting partnerships with different schools and projects.
- Project Nepal - Through the Project Nepal, the community of ACS Egham aims to support Nepalese school communities while simultaneously providing ACS students with social action and emotional development opportunities and the chance to make a sustainable difference.
- ACS supported Orbis with a yearly donation and our students are actively involved in an internship with their flying eye hospital. Whilst they were grounded due to Covid-19 this year our relationship and collaboration has continued through our loan scheme of technology to support their work.
Unfortunately due to Covid-19 no International trips were undertaken this year, but contact with our international communities has been maintained.
ACS students also take part in practical voluntary service in the local community, as part of ACS providing them with a broad education. For example providing clothing, toiletries and food, volunteering at community centres, fundraising for the benefit of local communities and working with the elderly and the homeless.
Our service learning program is currently undergoing a full review as part of the Partnerships Strategy and this will be a vital element of our charitable work. Everything we do across our campuses will involve ACS student participation in some way, enhancing skills and knowledge for the future workplace, whilst teaching valuable experiential life skills.
A full evaluation and process of due diligence is underway for all our charitable projects. Partnership agreements are now in place for the majority of our collaborations and was finalised in 2020/2021.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
In Doha, ACS has also employed a Partnerships Manager. We are piloting an ACS ‘Pathways’ approach to education, partnering with local businesses to enhance the education of all children in our schools and local to the ACS Campus. In partnership with Paragon One we launched our ‘externships’ programme in January 2021 for Doha Students.
When ACS Group is not using its facilities, ACS makes them available to the community. Schools that have signed up as registered partners will have access to facilities and resources free of charge.
Our large launch event at Thorpe Park was cancelled for 2020, with a view to relaunching this initiative for 10,000 children once restrictions ease.
In 2021 ACS logged 13,880 hours of student community interaction, 18,672 hours of student service learning and 8,356 hours of teacher training in new technologies through our technology loan scheme and twilight CPD offer. During the year 1,643 Crest awards were completed and 50 students across the 4 campuses completed externships.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **Education Strategy**
In November 2019, the Board approved a new Education Strategy that describes the desired position for ACS schools in 2025. Its principal objective is to increase the unique quality and value of the ACS educational experience.
Over the next five years, the Education Strategy intends to deliver significant change, including:
- a sharper focus on inspirational teaching that continually improves academic results.
- demonstrated public benefit and global competence through a greater range of educational experiences.
- `o` an expanded and carefully monitored notion of what it means to belong to a healthy international learning community.
- equitable, distinctive, and systematically implemented support for all students to achieve challenging educational goals.
Our highest level strategic objective is to ensure that we are ready for the future, empowering students to become more effective, confident and caring. The strategy’s focus is on transformational learning, driving results through by inspirational teachers, allied leaders, and demonstrated impact through the application of education data. The strategy is organised around 4 objectives which are important thematic opportunities for growth, delivered through 10 challenging projects, over five years, that will make a positive difference in student learning outcomes.
While the new strategy formally launched with the 2020-21 school year, it anticipated and facilitated the group’s successful pivot to online learning during the Covid-19 lockdown. Its emphasis on building resilient community, strengthening mutual support, and attending to health and wellbeing provided guidance for navigating a very challenging academic year.
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## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **People Strategy**
A new People Strategy was endorsed by the Leadership Team and Board in December 2020, focusing on key areas of people policies and practices that can ensure ACS both attracts and retains high quality talent and have extensive potential to influence organisational culture:
- Leadership – Role model leadership. Ensure Leadership Team joint ownership and alignment across divisions strategies and plans. Right people are in the right place to take the organisation forward and provide continuity of staff leadership.
- Talent – Understand and address personal motivations to join and stay. Identify, attract, develop, engage and retain staff who can help to build a high education performance and diverse workplace.
- Performance - Align goals to ACS strategy and engage and motivate staff to develop and improve performance.
- Reward - Reward people fairly within clearly communicated and appropriate remuneration frameworks whilst at the same time remaining competitive.
The strategy’s implementation is being designed around exploration of a renewed employee value proposition that highlights growth, purpose and wellbeing.
- Growth - Provide career support to give people the best possible start and develop people’s personal and professional skills and knowledge throughout their careers.
- Purpose – Ensure that the ethos and DNA of ACS’s charitable purpose and educational mission is understood and staff are proactively engaged.
- Wellbeing - Provide an environment where health and wellbeing are actively promoted, where people feel engaged and valued.
During the 2020/2021 financial year, the People Committee reviewed succession planning for senior roles across the campuses and implemented reform to executive level pay arrangements in line with the educational and charitable sectors.
During the summer of 2020, ACS responded to the Black Lives Matter movement by engaging proactively with its staff and students and setting out a six-point plan to take its policy and practices on Diversity, Equity & Inclusion to the next stage of development. This has since resulted in the establishment of a DEI Charter and staff led DEI Council which is working with leadership on implementation of our strategic plans for action to build an inclusive school community for all.
In spring 2021, ACS refreshed its narrative on its purpose, strategy and values. Thinking anew about the organisation’s purpose, its value to the community, values by which ACS works in order to inspire the world’s next global thinkers and doers. The idea of readiness lies at the heart of an ACS education. ACS envisions alumni embracing the future as effective, confident and caring individuals who are ready to act, lead, care and change the world and its students to be ready to ask new questions and demand better answers.
These purpose, vision and values align with ACS’s core strategies for education, people, partnerships and growth.
Page 13
ACS INTERNATIONAL SCHOOLS LIMITED
ANNUAL REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 JULY 2021
We are a dynamic.
people-focu5ed charitv
that advances education
PURPOSE
V1510N
VALVES
Wr
STRATEGIES & GOALS
I*
ACS
CORE
VALUES
Imagine better
Welcome everyone
igh and
make it happen
her
Act with kindness
Page 14
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **Fundraising performance and Alumni relations**
The Development & Alumni Relations team engages with and mobilises the ACS global alumni and friends communities which includes all current and former parents, former students and former staff.
There were no professional fundraising organisations used and no monitoring processes required during the year.
ACS works closely with the PSOs (Parent School Organisations) at each school which assists ACS with its philanthropic programmes.
Donations were raised for the benefit of the three UK schools for scholarships, teaching excellence and specific capital projects to create and further improve students’ facilities and learning spaces.
Fundraising campaigns were delayed due to Covid-19 and focus shifted to alumni engagement and donor stewardship to enable the UK schools to fulfil pledges for teaching excellence, scholarships and capital projects. The majority of donations received have come from ACS parents. ACS has received donations during the year of £217,439 (2020: £252,166).
The costs of ACS’s Development & Alumni Relations team are expected to be weighted at the beginning of the fundraising activity and will be initially higher than donations received whilst the fundraising programme develops.
The Development & Alumni Relations team engages ACS international alumni and former parents in informal alumni associations called Chapters, predominantly in the USA with the aim of reconnecting alumni with their school. Chapter Presidents host regional events, which have been virtual since the beginning of the pandemic. These alumni events were themed around career development, mentoring, University Life, reunions and scholarship fundraising.
Due to Covid-19, there was a shift to virtual/digital alumni channels, with a new suite of alumni events engaging 500 international alumni and friends in reunions, career networking and fundraising events as well as new US and UK/ROW alumni newsletters. During the year up to July 2021, there has been a 46% increase in alumni engagement due to new alumni communications and virtual events, which also secured new donors and alumni Chapter leaders in Texas and New York in the USA. We have 13,543 active alumni & friends.
Alumni connections with the schools continues to grow and this year included virtual fora at the Staff Welcome Back event focusing on diversity and inclusion.
As the ACS international alumni community spans Europe, Asia, the Americas, Russia, Africa and Australia, ACS has launched an exclusive alumni social network called ACS Global Connect, facilitating friendships and networks for all alumni and former parents from current and previous campuses. ACS Global Connect has 3,100 members and enables:
- Reconnecting with old school friends through alumni chapters, events and international directory
- • Career Mentoring and networking with peers
- Reconnecting with ACS through the digital archive of yearbooks and photos from all three UK campuses
- • Joining International Alumni Chapters led by ACS alumni Chapter Presidents
Planning for further Development and Alumni Relations programmes was also undertaken during the year.
Page 15
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
ACS has a Fundraising Policy in place which sets outs ACS’s approach to fundraising and to protect vulnerable people and other members of the public from behaviour which:
- is an unreasonable intrusion on a person’s privacy;
- is unreasonably persistent;
- places undue pressure on a person to give money or other property.
During the year ACS or any person acting on its behalf for the purposes of fundraising did not receive any complaints about fundraising activity.
ACS works closely with ACS International Schools in America Inc. which is a non-profit organisation based on the East Coast of America. The organisation supports education around the world with the mission to raise awareness of and support for ACS International Schools education allowing more students to benefit from the opportunities offered by the schools.
Page 16
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **STRATEGIC REPORT**
## **Review of achievements and performance for the year**
During the year ACS Group continued to provide a first-class educational experience for students between the ages of 2-18.
ACS Group students delivered another above average set of academic results reflecting the joint effort of ACS teachers and school leaders. In another unusual year 165 (2020: 210) students at ACS International Schools in the UK achieved the International Baccalaureate (IB) Diplomas, with average total points of 37 (2020: 35) and a pass rate of 100% (2020: 98.6%), which is higher than worldwide average of 33 points (2020: 29.9) and an 89% pass rate (2020: 79.1%) and exceeds our Key Performance Indicators for DP assessment. The IB Diploma was awarded under special conditions in May 2021 when examinations were once again cancelled on account of Covid-19
Students took standard Advanced Placement exams, with 81% (2020: 76%) qualifying to receive college credit in at least one course. In total, 297 ACS students earned American High School Diplomas (2020: 288).
In 2019, ACS launched a new brand narrative, logo and visual identity. The new branding was developed to command a unique and differentiated position in the market following extensive research and customer and stakeholder engagement. The new brand narrative ‘Ready for whatever comes next’ was launched internally to all staff and externally across all touchpoints from August 2019. Feedback from the wider ACS community and externally was extremely positive. Interest in the school measured by open day registrations, digital and website views and engagement was ahead of the previous year until lockdown. The new brand has been successfully implemented across all assets at the Doha new campus.
In addition, there has been progress in the Financial Assistance Programme and the Partnerships, Grants and Access Strategy as previously discussed in the Trustees report.
The trustees have a reasonable expectation that ACS International Schools Limited, ACS Doha International School LLC, ACS International Schools Overseas Holdings Limited and ACS Commercial Enterprises Limited have adequate resources to continue in operational existence for the foreseeable future and it remains appropriate to prepare their financial statements on a going concern basis.
ACS International Schools Overseas Holdings Limited continues to act as a holding company.
ACS Commercial Enterprises Limited (ACSCE) continues to be profitable and profit of £52,069 (2020: £120,311) was donated to ACS under the Gift Aid Scheme.
Page 17
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **STRATEGIC REPORT (continued)**
## **Capital Investment (including progress on Doha campus)**
ACS Group continues to invest in its first-class educational facilities. At ACS Cobham, work on the Early Childhood and Lower School redevelopment was completed during the year. The new dining servery was completed providing an improved dining experience for students and staff members. The new innovation centre also became operational during the year creating the very best learning and teaching environment for our school community.
At ACS Hillingdon, the Auditorium Upgrade was completed during the year. The existing Auditorium was refurbished and equipped with a state-of-the art sound system, energy-efficient stage and house lighting as well as audio-visual monitors that will allow for on-stage action to be viewed backstage.
The Egham Masterplan/Barn was postponed with the project to be reviewed and rescoped as a result of changing requirements due to Covid-19. With the delay to the Barn project, other Exceptional projects were prioritised for this year including moving the Lower School Library from its existing location, with work done over the school summer break. Other projects this year included a Strength Gym, Amphitheatre and a refresh of the Cedar building.
The construction and fit-out of a new ACS Doha campus finished in August 2020 culminating in its opening at the start of the 2020/2021 academic year, in September 2020. The new ACS Doha campus has increased capacity from 980 in the old campus, to 2,400 students.
ACS Group also invested significantly in educational equipment, I.T. and general campus improvements during the year.
## **Streamlined Energy and Carbon Reporting (SECR).**
The Group has completed the Energy Savings Opportunity Scheme (ESOS) reporting requirements and is preparing for reporting under the Streamlined Energy and Carbon Reporting (SECR).
The Group has measured scope 1 and scope 2 emissions in the UK in accordance with UK Government’s guidance on how to measure and report greenhouse gas emissions. Electricity and gas are the primary and only utilities used. There is no internal transport activity, heating or cooling purchases outside of electricity and gas.
The total annual net emissions in the UK to 31st July 2021 were -1.62 (2020:2,493) global tonnes of CO2e. The Group is targeting to reduce gross intensity ratio by 5% from 2021 to 2022. ACS is committed to sustainability and becoming as energy efficient as possible whilst reducing its carbon footprint. During 2020, ACS planted 160 trees on the school grounds, which contributed to an offset of 0.9 tonnes of CO2e. During 2021, ACS has offset 1791 tonnes of CO2e through carbon offset projects.
The Group has engaged with an external sustainability company who are compiling the annual ESG Impact Report to the year ended 31 July 2021. The document will cover key statistics, actions undertaken during the year and plans for 2021 as well as longer term goals. A carbon reduction plan has already begun with planting trees to reduce ACS’s carbon footprint. It is ACS’s desire to offset any carbon we create such that we are carbon neutral.
Page 18
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **FINANCIAL REVIEW**
## **ACS Group results for the year**
ACS Group has enjoyed another satisfactory year of operation despite the challenges associated with Covid19. The financial performance for the year and the year-end financial position were both considered satisfactory by the Board. Net income was £3,715,139 (2020: £6,722,571 _)._
Total income reduced by 5% from £79,145,917 to £74,944,318, mainly due to drop in enrolment as a result of Covid-19 and associated reductions in catering and trip income during the 2020/2021 academic year. School fees income decreased by 3% from £72,147,820 to £69,714,376 for the same reason. School fees income was the primary source of revenue for the ACS Group.
Total expenditure also decreased by 1.68% from £71,969,093 to £70,757,694, mainly due to decreases in staff costs and in catering, trips and clubs, again associated with Covid-19 interruption. Staff costs represent 59% of total charitable expenditure.
Net Assets at 31[st] July 2021 were £92,474,934 compared to £88,759,794 as at 31[st] July 2020. The Group has a loan facility in place to enable it to manage its cash flow requirements.
ACS’s net income increased from £7,564,086 to £7,977,166 at a company level. ACS’s income includes fundraising income of £269,508 (2020: £372,477), including the amounts donated from ACSCE under the Gift Aid Scheme.
ACS Doha produced a net loss before foreign exchange translation differences of £7,952,196 (2020: £2,291,839 net income before foreign exchange translation). The increase in expenditure compared to 2020 was mainly due to the rental expenditure of the new building.
ACSCE continued to perform well in the months prior to Covid-19 but was adversely affected by lockdown. Despite this it remained profitable. Details of its results are given in Note 7.
## **Reserves Level and Policy and Financial Viability**
The ACS Group reserves policy is that it should have access to sufficient financial resources to be able to ensure the sustainability of the ACS Group. In determining what level of financial resources are required we have considered the following:
- Current and projected levels of free reserves;
- What level of working capital the ACS Group needs to be able to operate effectively;
- The impact of seasonality;
- ACS Group capacity and appetite to borrow funds;
- ACS Group risk appetite;
- The likely financial impact of a range of unlikely but plausible scenarios linked to the most significant risks that the ACS Group faces. For each of these risks we have considered:
- The timings of the risk and any potential mitigating steps associated with the risk;
- If the risk happened, any impact on the ACS Group’s capability to borrow money.
Page 19
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
This analysis led to the Board concluding that ACS Group’s Reserves Policy is to target an annual minimum cash/net debt level between zero and a debt of £15,000,000. The minimum cash, net of borrowing, during the year was £16,300,000. ACS Group has a loan facility in place to enable it to manage its cash flow requirements. The ACS board has plans to bring its minimum cash balance back into line with the policy once the financial risk caused by Covid-19 has reduced. This involves reviving some of the Capital Expenditure plans, currently on hold as a result of the pandemic.
The Group Reserves Policy is reviewed annually by the Audit & Risk Committee and reflects the need to manage cash flow seasonality and not merely look at the year-end position.
The total reserves for the ACS Group at the year end were £92,474,934 (2020: £88,759,794) which were unrestricted. No unrestricted funds have been designated for specific purposes. Included within unrestricted funds are fixed assets with a net book value of £101,136,772 (2020: £101,701,338)
Since the initial impact of Covid-19 in March 2020, ACS has been conducting extensive financial reviews to ensure its ongoing financial viability.This work led to severe expenditure reduction programmes, which, alongside the government furlough scheme, has protected ACS’s financial position. The review work undertaken has considered a wide range of potential scenarios and ensured ACS has plans in place to remain financially viable under all of them.
After reviewing the forecasts and projections, the trustees have a reasonable expectation that ACS has adequate resources to continue in operational existence for the foreseeable future. ACS Group therefore continues to adopt the going concern basis in preparing its financial statements.
## **FUTURE PLANS**
The future plans include:
- To increase the overall amount of financial assistance provided and the number of children benefiting from the financial assistance. This will be achieved through ACS’s Finance Assistance Programme and Partnerships, Grants and Access Strategy.
- Progress with redevelopment of the Early Childhood and Lower School at ACS Cobham;
- Fundraising initiatives to support bursaries, scholarships and to develop campuses;
- To progress the Education Strategy and People Strategy; and
- To ensure that ACS Group continues to play a significant part in the life of the local community.
Page 20
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2021**
## **STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES**
The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (FRS102, The Financial Reporting Standard applicable in the UK and Republic of Ireland) and applicable law. Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the group including income and expenditure of the group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group 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 charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **RELEVANT AUDIT INFORMATION**
Insofar as each of the Trustees, as members of the Board, at the date of approval of this report is aware there is no relevant audit information (information needed by the Charity’s auditor in connection with preparing the audit report) of which the Charity’s auditor is unaware. Each member of the Board has taken all the steps that he or she should have taken as a member of the Board in order to make himself or herself aware of the relevant audit information and to establish that the Charity’s auditor is aware of that information.
Approved by the Board of ACS International Schools Limited on 22 February 2022 including, in their capacity as trustees, approving the Trustees’ and Strategic Reports contained therein, and signed on its behalf by:
R M Macnaughton (Chairman)
Page 21
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ACS INTERNATIONAL SCHOOLS LIMITED**
## **Opinion**
We have audited the financial statements of ACS International Schools Limited ‘the charitable company’ and its subsidiary ‘the group’ for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, Consolidated and Company Balance Sheets, Consolidated Statement of Cash Flows and notes to the financial statements, including 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 group’s and the charitable company’s affairs as at 31 July 2021 and of the group’s/ 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 group 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 trustee's 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 or the group’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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 22
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ACS INTERNATIONAL SCHOOLS LIMITED**
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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit
- the information given in the trustees’ report, which includes the directors’ report and the strategic 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 strategic report 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 light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ 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 and proper accounting records have not been kept; or
- the 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
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on pages 1 to 21, 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.
Page 23
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ACS INTERNATIONAL SCHOOLS LIMITED**
## **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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
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.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, Data Protection Regulation (GDPR), Health and safety legislation and employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
..
Page 24
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ACS INTERNATIONAL SCHOOLS LIMITED**
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of donations income and other ancillary income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing any regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
## **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.
## **Tina Allison**
Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor **London**
Date: 1 March 2022
Page 25
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021**
|**Note**
**Income from**
**charitable activities**
School fees
2
Ancillary trading
income
3
Non-ancillary trading
income
4
Other income
Investment income
5
Donations & Grants
6
**Total Income**
**Expenditure on**
Cost of raising funds
8
Charitable activities
8
Other expenditure
8
**Total expenditure**
Loss on translation of
foreign results
Gain on sale of fixed
asset
**Net(expenditure)**
**/income before**
**transfers**
Transfers
**NET MOVEMENT IN**
**FUNDS**
Funds brought forward
Debentures repaid
**Funds carried**
**forward**
23||**Unrestricted**
**Funds**
**£**
69,714,376
4,099,441
324,169
140,692
10,911
437,290
74,726,879
(396,054)
(70,322,169)
371
(70,717,852)
(517,345)
45,861
_3,537,543_
177,597
3,715,140
88,759,794
-
92,474,934||**Restricted**
**Funds**
**£**
-
-
-
-
-
217,439
217,439
-
(39,842)
-
(39,842)
-
-
_177,597_
(177,597)
**-**
**-**
**-**
**-**||**2021**
**Total**
**£**
**69,714,376**
**4,099,441**
**324,169**
**140,692**
**10,911**
**654,729**|**2021**
**Total**
**£**
**69,714,376**
**4,099,441**
**324,169**
**140,692**
**10,911**
**654,729**|
|_2020_
_Total_
_£_
_72,147,820_
_5,344,378_
_414,124_
_151,787_
_40,946_
_1,046,862_|
|---|---|---|---|---|---|---|---|---|---|
|||||||**74,944,318**|||_79,145,917_|
|||||||
**(396,054)**
**(70,362,011)**
**371**||
|_(451,538)_
_(71,511,994)_
_(5,561)_|
|||||||**(70,757,694)**|||_(71,969,093)_|
||||||||
**(517,345)**
**45,861**|
|_(454,253)_
_-_|
||||||||_3,715,140_||_6,722,571_|
||||||||-|
|-|
||||||||**3,715,140**
**88,759,794**
**-**
**92,474,934**||_6,722,571_
_82,036,723_
_500_
_88,759,794_|
The notes on pages 30 to 50 form part of these financial statements.
Page 26
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021**
|**Note**
**FIXED ASSETS**
Tangible assets
12
Intangible assets
14
**CURRENT ASSETS**
Debtors
17
Cash at bank and in hand
**CREDITORS:**amounts falling due within
one year
18
**NET CURRENT (LIABILITIES)**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**LONG TERM LIABILITIES**
Other provisions
21
Long term loan
20
**NET ASSETS**
**REPRESENTED BY:**
Restricted funds
23
Unrestricted funds
23|**2021**
**£**
**£**
**100,368,035**
**768,737**
**101,136,772**
**7,225,551**
**27,729,473**
**34,955,024**
**(41,494,563)**
**(6,539,539)**
**94,597,233**
**(1,122,299)**
**(1,000,000)**
**(2,122,299)**
**92,474,934**
**-**
**92,474,934**
**92,474,934**|**2021**
**£**
**£**
**100,368,035**
**768,737**
**101,136,772**
**7,225,551**
**27,729,473**
**34,955,024**
**(41,494,563)**
**(6,539,539)**
**94,597,233**
**(1,122,299)**
**(1,000,000)**
**(2,122,299)**
**92,474,934**
**-**
**92,474,934**
**92,474,934**|_2020_
_£_
_£_
_100,566,747_
_1,134,591_
_101,701,338_
_10,025,874_
_20,603,517_
_30,629,391_
_(41,296,083)_
_(10,666,692)_
_91,034,646_
_(1,274,852)_
_(1,000,000)_
_(2,274,852)_
_88,759,794_
_-_
_88,759,794_
_88,759,794_|
|---|---|---|---|
|||
**101,136,772**
**(6,539,539)**||
|||
**94,597,233**
**(2,122,299)**||
||||
|
|||
**92,474,934**||
|||
**-**
**92,474,934**||
|||
**92,474,934**||
Net result for the year for the charity before consolidation was a surplus of £7,977,166 (2020: £7,564,086). The financial statements were approved and authorised for issue by the board and were signed on its behalf
on 22 February 2022
R M Macnaughton (Chairman)
The notes on pages 30 to 50 form part of these financial statements.
Page 27
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **CHARITY BALANCE SHEET AS AT 31 JULY 2021**
|**Note**
**FIXED ASSETS**
Tangible assets
13
Intangible assets
15
Investments
16
**CURRENT ASSETS**
Debtors
17
Cash at bank and in hand
**CREDITORS:**amounts falling due within
one year
18
**NET CURRENT ASSETS/(LIABILITIES)**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**LONG-TERM LIABILITIES**
Long term loan
20
**NET ASSETS**
**REPRESENTED BY:**
Restricted funds
Unrestricted funds|**2021**
_2020_
**£**
**£**
_£_
_£_
**90,916,127**
_91,623,881_
**768,737**
_1,118,555_
**1,100**
_1,100_
**91,685,964**
_92,743,536_
**24,331,895**
_23,340,510_
**23,998,643**
_15,752,399_
**48,330,538**
_39,092,909_
**(39,054,653)**
_(38,851,761)_
**9,275,885**
_241,148_
**100,961,849**
_92,984,684_
**(1,000,000)**
_(1,000,000)_
**(1,000,000)**
_(1,000,000)_
**99,961,849**
_91,984,684_
**-**
_-_
**99,961,849**
_91,984,684_
**99,961,849**
_91,984,684_|
|---|---|
ACS has elected to not publish a charity only statement of financial activities. The unconsolidated surplus generated by the parent charity was £7,977,166 (2020: £7,564,086).
The financial statements were approved and authorised for issue by the board and were signed on its
behalf on 22 February 2022
R M Macnaughton(Chairman)
The notes on pages 30 to 50 form part of these financial statements
Page 28
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021**
|**Note**
**CASH FLOWS FROM OPERATING ACTIVITIES**
Net income
Adjustments for:
Depreciation of property, plant and equipment
Amortisation of intangible assets
(Gain)/loss on disposal of property, plant and equipment
Interest paid
Interest received
Decrease/(increase) in debtors
Increase/(decrease) in creditors
(Decrease)/increase in provisions
**CASH FROM OPERATIONS**
Interest paid
**NET CASH GENEREATED FROM OPERATING ACTIVITIES**
**CASH FLOWS FROM INVESTING ACTIVITIES**
Purchases of property, plant and equipment
Purchases of intangible assets
Interest received
Proceed from sale of equipment
**NET CASH FROM INVESTING ACTIVITIES**
**CASH FLOWS FROM FINANCING ACTIVITIES**
Issue/ (repayment) of debenture loans
Proceeds from loan
**NET CASH USED IN FINANCING ACTIVITIES**
**NET INCREASE/(DECREASE) IN CASH AND CASH**
**EQUIVALENTS**
Cash and cash equivalents at beginning of the year
24
**CASH AND CASH EQUIVALENTS AT END OF YEAR**
24|**2021**
**£**
**3,715,139**
**5,245,836**
**381,324**
**(45,861)**
**31,186**
**(10,911)**
**2,800,323**
**198,480**
**(152,553)**
**12,162,963**
**(31,186)**
**12,131,777**
**(5,047,123)**
**(15,470)**
**10,911**
**45,861**
**(5,005,821)**
**-**
**-**
**-**
**7,125,956**
**20,603,517**
**27,729,473**|_2020_
_£_
_6,722,571_
_4,430,748_
_544,024_
_5,335_
_63,395_
_(40,946)_
_(1,298,843)_
_(5,035,615)_
_108,702_
_5,499,371_
_(63,395)_
_5,435,976_
_(6,279,776)_
_(225,860)_
_40,946_
_-_
_(6,464,690)_
_500_
_-_
_500_
_(1,028,214)_
_21,631,731_
_20,603,517_|
|---|---|---|
The notes on pages 30 to 50 form part of these financial statements.
Page 29
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **1.1 Company information**
ACS International Schools Limited is a registered charity and public benefit entity in England and Wales and a company limited by guarantee. It was incorporated on 5 July 1967 (company number: 00910010) and registered as a charity on 5[th] September 2018 (charity number: 1179820). The registered office is Heywood, Portsmouth Road, Cobham, Surrey KT11 1BL.
## **1.2**
## **Basis of preparation of financial statements**
The financial statements have been prepared under historical cost convention in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and 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 (FRS 102) – effective 1 January 2015.
The charity has taken the advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cashflow Statement with the consolidated financial statements.
The account presents the consolidated statement of financial activities (SOFA), the consolidated and charity balance sheets and the consolidated cash flow statement comprising the consolidation of the Charity and its subsidiaries ACS International School Doha LLC, ACS Overseas Holdings Limited and ACS Commercial Enterprises Limited.
The trustees have a reasonable expectation that ACS International Schools Limited, ACS Doha International School LLC, ACS Overseas Holdings Limited and ACS Commercial Enterprises Limited have adequate resources to continue in operational existence for the foreseeable future. The trustees have further considered going concern implications in Iight of Covid-19 and believe it remains appropriate to prepare their financial statements on a going concern basis.
## **1.3 Judgement and estimation uncertainty**
In application of the accounting policies, trustees are required to make judgements, estimates and assumptions about carrying value of assets and liabilities that are based on historical experience and other relevant factors. The estimates and underlying assumptions are reviewed on an ongoing basis and revisions to accounting estimates are recognised in either the period of revision and/or in future periods if relevant.
In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date, are likely to result in a material adjustment to their carrying amounts in the next financial year.
The particular accounting policies adopted and applied consistently are described below.
## **1.4**
## **School fees and trading income**
School fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Scholarships and bursaries granted by the Charity against those fees are deducted in the school term to which they relate.
Trading income and other income is recognised in the period to which it relates.
Page 30
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **1.5 Investment income**
Investment income from bank balances is accounted for on an accruals basis.
## **1.6**
## **Grants and donations**
Voluntary incoming resources are accounted for as and when the entitlement arises, the amount can be reliably quantified and the economic benefit to the charity is considered probable.
Donations are restricted in accordance with the donor’s intention. Where no restrictions are noted donations are utilised within unrestricted funds.
## **1.7**
## **Expenses**
All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Irrecoverable VAT is included with the item of expenditure to which it relates. Intra-group sales and charges between the charity and its subsidiaries are excluded from trading income and expenditure.
Charitable activities include teaching staff salaries, depreciation of items related to education and classroom supplies.
Investment and estates management includes investment in new buildings and maintenance of existing ones, as well as depreciation relating to buildings.
Support activities include expenditure on salaries of non-teaching staff, depreciation and purchase of items not directly related to provision of education. The costs are allocated based on spend by department.
## **1.8 Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost less depreciation with the exception of freehold land and buildings which are carried at open market value and revalued every five years by professionally qualified surveyors. The properties were last revalued in July 18 by Gerald Eve, Chartered Surveyors. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases and recognised within the statement of financial activities:
Freehold buildings - Leasehold improvements - Motor vehicles - Fixtures, fittings and equipment -
Straight line over 15-25 or 50 years Straight line over the period of the lease Straight line over 4 or 10 years Straight line over 2-15 years
Assets in the course of construction are capitalised at cost but are not depreciated until they become available for use.
## **1.9 Intangible fixed assets and amortisation**
Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following basis:
Computer software -
Straight line over 3-5 years
Amortisation is included within expenditure in the statement of financial activities.
Page 31
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **1.10 Investments**
Investments in subsidiaries are valued at cost less provision for impairment.
## **1.11 Leasing and hire purchase**
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the charity. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to expenditure in the statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
## **1.12 Operating leases**
Rentals under operating leases are charged to expenditure in the statement of financial activities on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
## **1.13 Funds**
The total funds of the charity and its subsidiaries are allocated to unrestricted and restricted based on the terms set by the donors.
Unrestricted income belongs to the charity’s corporate reserves, spendable at the direction of the trustees either to further the charity’s objects or to benefit the schools itself.
Restricted funds comprise gifts, legacies and grants where the donors have earmarked funds for specific purposes.
## **1.14 Cash**
Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Cash balances are recognised at amortised cost.
## **1.15 Debtors and Creditors**
Short term debtors and creditors are measured at transaction price less any impairment and are subsequently held at amortised cost. £5,054,000 (2020: £7,730,000) included in trade debtors at 31 July 2021 relates to 2021/22 fees invoiced in advance, of which there is a corresponding entry included in deferred income.
## **1.16 Foreign currencies**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the statement of financial activities.
Page 32
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **1.17 Pensions**
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
## **1.18 Fees in advance**
Fees in advance represent the following year's tuition, extras and bussing fees invoiced in the current year.
## **1.19 Management of liquid resources**
Liquid resources are defined as cash, cash held at bank and treasury deposits.
## **1.20 Employee benefits**
The liability recognised in the statement of financial position in respect of end of service benefits is the present value of the defined benefit obligation at the end of the reporting year. This is calculated annually by management using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the effective interest rate
## **1.21 Provisions**
Provisions are recognised when the Company has a present legal or constructive obligation because of past events, it is probable that a transfer of economic benefits will be required to settle the obligation and the amount has been reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the amount expected to be required to settle the obligation using the pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense
## **1.22 Financial instruments**
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost, with the exception of investments which are held at fair value.
Financial assets held at amortised cost comprise cash at bank and in hand, together with debtors excluding prepayments. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in bank accounts.
Financial liabilities held at amortised cost comprise all creditors excluding social security and other taxes, provisions and deferred income. Investments in subsidiary undertakings are held at cost less impairment.
## **1.23**
## **Redundancy payments**
Termination benefits are payable when employment is terminated by ACS or whenever an employee accepts voluntary redundancy in exchange for these benefits. ACS recognises termination benefits when a fully signed settlement agreement is in place, or when the cost has otherwise been confirmed and committed to.
Page 33
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **2. CHARITABLE ACTIVITIES – FEES RECEIVABLE**
|**Fees receivable consist of:**
ACS school fees
ACS Doha school fees|**2021**
**£**
**56,273,389**
**13,440,987**
**69,714,376**|_2020_
_£_
_57,118,182_
_15,029,638_
_72,147,820_|
|---|---|---|
School fees are net of bursaries and scholarships.
## **3. ANCILLARY INCOME**
Ancillary income includes income from application fees, bussing fees, student catering, trips and clubs.
|ACS ancillary income
ACS Doha ancillary income
**NON-ANCILLARY INCOME**
Non-student catering and shop income
Sports membership and activity fees
Hire of facilities|**2021**
**£**
**3,833,889**
**265,552**
**4,099,441**
**2021**
**£**
**182,695**
**46,421**
**95,053**
**324,169**|_2020_
_£_
_4,908,229_
_436,149_
_5,344,378_
_2020_
_£_
_219,094_
_137,748_
_57,282_
_414,124_|
|---|---|---|
## **4. NON-ANCILLARY INCOME**
## **5. INVESTMENT INCOME**
|UK bank interest|**2021**
**£**
**10,911**
**10,911**|_2020_
_£_
_40,946_
_40,946_|
|---|---|---|
Page 34
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **6. DONATIONS & GRANTS**
|Donations
Grants - Coronavirus Job Retention Scheme
Grant for research and school partnership|**2021**
**£**
**217,439**
**379,473**
**57,817**
**654,729**|_2020_
_£_
_252,166_
_794,696_
_-_
1,046,862|
|---|---|---|
## **7. PRINCIPAL SUBSIDIARIES AND HOLDING COMPANIES**
**Company name and Country/ Company Percentage registered address number Shareholding Description** ACS International School Doha[1] Qatar 49 Operation of overseas LLC, Building 10. Street 161 educational establishment Al Kheesa, P.O. 200568, Doha ACS International Schools England and Wales 100 Intermediate holding company Overseas Holdings Limited, 07537434 Heywood, Portsmouth Road, Cobham, KT11 1BL ACS Commercial Enterprises England and Wales 100 Trading company Limited, Heywood, Portsmouth 10887569 Road, Cobham, KT11 1BL
_1. ACS International School Doha LLC is a subsidiary undertaking by a virtue of the fact that ACS International Schools Limited has a participating interest in the undertaking and actually exercises a dominant influence over it._
Page 35
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **7. PRINCIPAL SUBSIDIARIES AND HOLDING COMPANIES (continued)**
|Income
Expense
Net loss
Amount gift aided
Retained in
subsidiary
Net assets|**ACS**
**Commercial**
**Enterprises**
**£**
**165,331**
**(113,262)**
**52,069**
**(52,069)**
**-**
**100**|**ACS**
**Commercial**
**Enterprises**
**£**
**165,331**
**(113,262)**
**52,069**
**(52,069)**
**-**
**100**|**ACS**
**International**
**Schools**
**Overseas**
**Holdings**
**£**
**-**
**371**
**371**
**- **
**371**
**(12,611)**|**ACS Doha**
**International**
**School**
**£**
**13,706,539**
**(21,276,715)**
**(7,570,176)**
**-**
**(7,570,176)**
**(11,972,492)**|**Total**
**2021**
**£**
**13,871,870**
**(21,389,606)**
**(7,517,736)**
**(52,069)**
**(7,569,805)**
**(11,985,003)**|_Total_
_2020_
_£_
_15,751,541_
_(17,743,628)_
(1,992,087
(120,311)
(2,112,398)
_(4,461,060)_|
|---|---|---|---|---|---|---|
|||
|||||
||||||||
Page 36
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **8. ANALYSIS OF EXPENDITURE**
## **(a) Total expenditure**
|**(a) Total expenditure**||||
|---|---|---|---|
|**Expenditure on raising**
**funds**
Fundraising costs
Other costs of raising
funds
**Total costs of raising**
**funds**
**Charitable expenditure**
**Education and grant**
**making**
Teaching
Boarding and welfare
Premises repair and
maintenance
Support costs and
governance
Grants, awards and prizes
**Total charitable**
**expenditure**
**Other expenditure**
Taxation
Other
**Total other expenditure**
**Total expended**|**Staff costs**
**Depreciation**
**& amortisation**
**£**
**£**
239,486
-
64,255
-
**303,741**
**-**
29,425,239
2,523,236
1,553,865
740,398
1,493,220
443,273
8,752,086
2,056,355
-
-
**41,224,410**
**5,763,262**
-
-
-
-
**-**
**-**
**41,528,151**
**5,763,262**|**Other**
**Total**
**2021**
**£**
**£**
43,306
**282,792**
49,007
**113,262**
**92,313**
**396,054**
11,817,985
**43,766,460**
1,275,174
**3,569,437**
1,837,909
**3,774,402**
8,432,170
**19,240,611**
11,101
**11,101**
**23,374,339**
**70,362,011**
-
**-**
(371)
**(371)**
**(371)**
**(371)**
**23,466,281**
**70,757,694**|_Total_
_2020_
_£_
_286,095_
_165,443_
_451,538_
_45,140,374_
_3,746,293_
_3,598,649_
_19,015,963_
_10,715_
_71,511,994_
_-_
_5,561_
_5,561_
_71,969,093_|
||
|||
Page 37
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **8. ANALYSIS OF EXPENDITURE (continued)**
## **(b) Grants, awards and prizes**
|**From Unrestricted Funds**
UK prizes and leaving awards|**2021**
**£**
**11,101**|_2020_
_£_
_10,715_|
|---|---|---|
## **(c) Governance included in support costs**
## **(** _**inclusive of VAT**_ **)**
|Remuneration paid to Crowe UK LLP in respect of:
Statutory audit
Tax compliance
Advisory services
Remuneration paid to PWC in respect of:
Statutory audit (Doha)
Tax compliance and advisory
Reimbursement of personal expenses to Trustees – travel costs|**2021**
**£**
**36,450**
**10,900**
**1,562**
**23,947**
**21,032**
**498**|_2020_
_£_
_33,210_
_6,600_
_732_
_22,922_
_51,498_
_20,264_|
|---|---|---|
Expenses were reclaimed by 3 Trustees (2020:7). No trustees have been paid any remuneration or received any other benefits during the year.
Page 38
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **9. STAFF COSTS**
Staff costs, including director's remuneration, were as follows:
|ACS wages and salaries
ACS Doha wages and salaries
ACS social security costs
ACS other pension costs
ACS Doha other pension costs
Aggregate employee benefits of key management personnel
Number of higher paid employees with aggregate employee
benefits in bands of:
£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£90,001 to £100,000
£100,001 to £110,000
£110,001 to £120,000
£120,001 to £130,000
£130,001 to £140,000
£140,001 to £150,000
£150,001 to £160,000
£160,001 to £170,000
£170,001 to £180,000
£180,001 to £190,000
£190,001 to £200,000
£200,001 to £210,000
£210,001 to £220,000
£230,001 to £240,000
£240,001 to £250,000
£260,001 to £270,000
£270,001 to £280,000|**2021**
**£**
**29,525,680**
**7,650,082**
**2,928,397**
**1,339,355**
**84,637**
**41,528,151**
**2,091,563**
**2021**
**No.**
**34**
**14**
**6**
**5**
**3**
**2**
**-**
**-**
**-**
**3**
**-**
**2**
**2**
**-**
**1**
**-**
**1**
**-**
**-**
**1**|_2020_
_£_
_31,617,601_
_8,702,199_
_3,133,265_
_1,402,778_
_406,972_|
|---|---|---|
|||_45,262,815_|
|||_2,045,819_
_2020_
_No._
_26_
_12_
_11_
_4_
_3_
_-_
_2_
_1_
_1_
_1_
_-_
_2_
_2_
_-_
_-_
_1_
_-_
_1_
_1_
_-_|
Page 39
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
The average number of employees during the year was 824 _(2020: 968)._
|
Academic staff
Substitute staff
Welfare
Support staff|**2021**
**No.**
**495**
**41**
**51**
**237**
**824**|_2020_
_No._
_561_
_78_
_58_
_271_
_968_|
|---|---|---|
During the year redundancy payments of £58,307 _(2020: £463,692)_ were awarded of which £12,924 remained outstanding at year end _(2020: £147,016)_
## **10. PENSION COMMITMENTS**
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the funds. Contributions of £237,608 _(2020: £246,144)_ are outstanding at the balance sheet date.
## **11. FINANCE COSTS**
|**FINANCE COSTS**|||
|---|---|---|
|Interest payable and charges|**2021**
**£**
**31,186**|_2020_
_£_
_63,395_|
||**31,186**|_63,395_|
_._
Page 40
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **12. TANGIBLE FIXED ASSETS**
Consolidated
|**Group**
**Cost**
At 1 August 2020
Additions
Disposals
Transfer
Revaluation
Exchange difference
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
Disposals
Revaluation
Exchange difference
At 31 July 2021
**Net book value**
At 31 July 2021
_At 31 July 2020_|**Freehold land**
**and buildings**
**£**
**88,791,367**
**1,333,702**
**-**
**-**
**-**|
**Motor vehicles**
**£**
**749,647**
**38,868**
**(18,250)**
**-**
**(1,096)**|
**Fixtures,**
**fittings and**
**equipment**
**£**
**27,369,686**
**4,374,683**
**(1,939,132)**
**8,763,471**
**-**
**(828,389)**
**37,740,319**|**Capital work in**
**progress**
**£**
**8,763,471**
**137,377**
**-**
**(8,763,471)**
**-**
**(8,020)**
**129,357**
**-**
**-**
**-**
**-**
**-**
**-**
**129,357**
_8,763,471_|**Capital work in**
**progress**
**£**
**8,763,471**
**137,377**
**-**
**(8,763,471)**
**-**
**(8,020)**
**129,357**
**-**
**-**
**-**
**-**
**-**
**-**
**129,357**
_8,763,471_|**Total**
**£**
**125,674,171**
**5,884,630**
**(1,957,382)**
**-**
**-**
**(837,505)**
**128,763,914**
**25,107,424**
**5,464,384**
**(1,906,793)**
**-**
**(269,136)**
**28,395,879**
**100,368,035**
_100,566,747_|
|---|---|---|---|---|---|---|
||**90,125,069**|
**769,169**||
**129,357**|||
||
**4,428,288**
**2,357,318**
**-**
**-**
**-**|
**635,309**
**26,951**
**(18,250)**
**-**
**(1,096)**|
**20,043,827**
**3,080,115**
**(1,888,543)**
**-**
**(268,040)**|
**-**
**-**
**-**
**-**
**-**|||
||**6,785,606**|
**642,914**|
**20,967,359**|
**-**|||
||
**83,339,463**|
**126,255**|
**16,772,960**|
**129,357**|||
||
_84,363,079_|
_114,338_|
_7,325,859_|
_8,763,471_|||
All properties were revalued on 31 July 2018 by Gerald Eve, Chartered Surveyors, on basis of open market value for current use at £80,870,000. The valuation was incorporated in the financial statements for the year ended 31 July 2018.
Included in land and buildings is freehold land valued at £14,663,000 which is not depreciated.
Land and buildings include £1,373,789 _(2020: £1,446,686)_ in respect of assets under the course of construction.
The historic cost of assets included at valuation at the balance sheet date is £132,764,810 _(2020: £131,431,108)._ At the balance sheet date there was no material difference between the historical cost depreciation and the actual depreciation charged in the accounts.
Page 41
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **13. TANGIBLE FIXED ASSETS**
Charity only
|**Cost or valuation**
At 1 August 2020
Additions
Disposals
Revaluation
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
Disposals
Revaluation
At 31 July 2021
**Net book value**
At 31 July 2021
_At 31 July 2020_||**Freehold**
**property**
**£**
**88,791,367**
**1,333,702**
**-**
**-**|**Motor vehicles**
**£**
**730,875**
**38,868**
**(18,250)**
**-**
**751,493**
**616,537**
**26,951**
**(18,250)**
**-**
**625,238**
**126,255**
_114,338_|**Motor vehicles**
**£**
**730,875**
**38,868**
**(18,250)**
**-**
**751,493**
**616,537**
**26,951**
**(18,250)**
**-**
**625,238**
**126,255**
_114,338_|**Motor vehicles**
**£**
**730,875**
**38,868**
**(18,250)**
**-**
**751,493**
**616,537**
**26,951**
**(18,250)**
**-**
**625,238**
**126,255**
_114,338_|
|**Fixtures,**
**fittings and**
**equipment**
**£**
**22,377,257**
**2,442,441**
**(438,412)**
**-**
**24,381,286**
**15,230,793**
**2,138,496**
**(438,412)**
**-**
**16,930,877**
**7,450,409**
_7,146,464_|
|
|**Total**
**£**
**111,899,499**
**3,815,011**
**(456,662)**
**-**
**115,257,848**
**20,275,618**
**4,522,765**
**(456,662)**
**-**
**24,341,721**
**90,916,127**
_91,623,881_|
|---|---|---|---|---|---|---|---|---|---|---|
|||**90,125,069**|||||||||
|||
**4,428,288**
**2,357,318**
**-**
**-**|
|
**616,537**
**26,951**
**(18,250)**
**-**
**625,238**|||||||
|||**6,785,606**|||||||||
|||
**83,339,463**|
|
**126,255**
_114,338_|||||||
||
|
_84,363,079_|
||||||||
All properties were revalued on 31 July 2018 by Gerald Eve, Chartered Surveyors, on basis of open market value for current use at £80,870,000. The valuation was incorporated in the financial statements for the year ended 31 July 2018.
Included in land and buildings is freehold land valued at £14,663,000 which is not depreciated.
Land and buildings include £1,373,789 _(2020: £1,446,686)_ in respect of assets under the course of construction.
The historic cost of assets included at valuation at the balance sheet date is £132,764,810 _(2020: £131,431,108)._ At the balance sheet date there was no material difference between the historical cost depreciation and the actual depreciation charged in the accounts.
Page 42
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
|**14.**
**INTANGIBLE FIXED ASSETS**
Consolidated
**Cost**
At 1 August 2020
Additions
Exchange difference
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
Exchange difference
At 31 July 2021
Net book value
At 31 July 2021
_At 31 July 2020_
**15.**
**INTANGIBLE FIXED ASSETS**
Charity only
**Cost**
At 1 August 2020
Additions
Disposals
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
Disposals
At 31 July 2021
**Net book value**
At 31 July 2021
_At 31 July 2020_|**Computer**
**Software**
**£**
**3,352,387**
**20,577**
**(5,107)**
**3,367,857**
**2,217,796**
**385,891**
**(4,567)**
**2,599,120**
**768,737**
_1,134,591_
**Computer**
**Software**
**£**
**3,264,918**
**20,577**
**-**
**3,285,495**
**2,146,363**
**370,395**
**-**
**2,516,758**
**768,737**
_1,118,555_|
|---|---|
Page 43
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **16. FIXED ASSET INVESTMENTS**
|**FIXED ASSET INVESTMENTS**||
|---|---|
||**Investments in**|
||**subsidiary**|
||**companies**|
|**Charity**|**£**|
|**Cost or valuation**||
|At 1 August 2020|**1,100**|
|At 31 July 2021|**1,100**|
|**Net book value**||
|At 31 July 2021|**1,100**|
|_At 31 July 2020_|_1,100_|
|Details of the principal subsidiaries can be found under note number 7.||
## **17. DEBTORS**
|**Due within one year**
Trade debtors
Corporation tax
Other debtors
Prepayments and accrued income
Amounts owed by group undertakings|**Group**
**2021**
_2020_
**£**
_£_
**5,391,641**
_8,000,399_
**30,399**
_21,044_
**325,970**
_697,530_
**1,477,541**
_1,306,901_
**-**
_-_
**7,225,551**
_10,025,874_||**Charity**
**2021**
_2020_
**£**
_£_
**5,191,469**
_6,637,822_
**30,399**
_21,044_
**325,970**
_696,641_
**1,470,601**
_1,301,281_
**17,313,456**
_14,683,722_
**24,331,895**
_23,340,510_|**Charity**
**2021**
_2020_
**£**
_£_
**5,191,469**
_6,637,822_
**30,399**
_21,044_
**325,970**
_696,641_
**1,470,601**
_1,301,281_
**17,313,456**
_14,683,722_
**24,331,895**
_23,340,510_|
|---|---|---|---|---|
||**2021**
**£**
**5,391,641**
**30,399**
**325,970**
**1,477,541**
**-**|
|**2021**
**£**
**5,191,469**
**30,399**
**325,970**
**1,470,601**
**17,313,456**||
||**7,225,551**||**24,331,895**|
_23,340,510_|
Page 44
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **18. CREDITORS: Amounts falling due within one year**
|Trade creditors
Social security and other taxes
Other creditors
Student deposits
Accruals and prepaid income
Deferred income||**Group**|**Group**|
|**Charity**
**2021**
_2020_
**£**
_£_
**1,342,126**
_766,857_
**1,057,199**
_1,143,157_
**136,985**
_238,702_
**3,362,650**
_3,698,650_
**1,724,008**
_1,733,654_
**31,431,685**_31,270,741_
**39,054,653**
_38,851,761_|
|---|---|---|---|---|---|
|||**2021**
**£**
**1,845,580**
**1,057,199**
**347,007**
**3,362,650**
**1,724,008**
**33,158,119**|_2020_
_£_
_1,392,623_
_1,143,157_
_407,423_
_3,698,650_
_1,733,654_
_32,920,576_||**2021**
**£**
**1,342,126**
**1,057,199**
**136,985**
**3,362,650**
**1,724,008**
**31,431,685**|
|||**41,494,563**|
_41,296,083_||**39,054,653**|
## **19. DEFERRED INCOME**
Deferred income relates to tuition fees and related income. Movements on deferred income balance during the year are as follows:
|Deferred income b/f
Income released to SOFA in the year
Income deferred during the year
Deferred income c/f||**Group**|**Group**|
|**Charity**
**2021**
_2020_
**£**
_£_
**31,270,741**
_33,895,764_
**(31,270,741)**
_(33,895,764)_
**31,431,685**
_31,270,741_
**31,431,685**
_31,270,741_|
|---|---|---|---|---|---|
|||**2021**
**£**
**32,920,276**
**(32,920,276)**
**33,158,119**|_2020_
_£_
_35,194,251_
_(35,194,251)_
_32,920,276_||**2021**
**£**
**31,270,741**
**(31,270,741)**
**31,431,685**
**31,431,685**|
|||**33,158,119**|
_32,920,276_|||
Page 45
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **20. BANK LOANS DUE IN OVER ONE YEAR**
In March 2019 ACS International Schools Limited secured a bank facility with a maximum loan value of £15 million. Current borrowings against the bank facility are £1 million. Interest on the loan is 1.35% above LIBOR and is payable quarterly. The loan is repayable in full 60 months after the loan is drawn. The loan contains financial covenants which apply to the Group's consolidated financial information. All financial covenants were met at 31 July 2021.
|Loan repayable is as follows:
Within one year
Between two to five years
More than five years|**2021**
**£**
**-**
**1,000,000**
**-**
**1,000,000**|_2020_
_£_
_-_
_1,000,000_
_-_
_1,000,000_|
|---|---|---|
National Westminster Bank PLC hold the following charges on ACS assets located at Heywood, Portsmouth Road, Cobham for continuing security:
- i. A fixed charge over the following property, owned now or in the future:
- a. All land and fixtures and fittings related to the land and all rents receivable.
- b. All plant and machinery, including any associated warranties and maintenance contracts.
- c. All the goodwill.
- d. Any uncalled share capital.
- e. All stocks, shares and other securities in any subsidiaries and income and rights relating to them.
- f. All intellectual property, licences, claims, insurance policies, proceeds of any insurance and any other legal rights.
- g. The benefit of any hedging arrangements, futures transactions or treasury instruments.
- ii. A floating charge over all other property, assets and rights owned now or in the future which are not subject to an effective fixed charge.
The aggregate revalued amount of secured assets is £48,183,336 _(2020: £47,179,016)._
Page 46
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **21. PROVISIONS**
|**Group**
At 1 August 2020
Additions
Paid
Exchange difference
At 31 July 2021|**Provision for**
**employees**
**£**
**1,274,852**
**84,637**
**(164,800)**
**(72,390)**
**1,122,299**|
|---|---|
## **Provision for employees**
Provision has been made for the net present value of ACS International School Doha’s obligations at 31 July 2021 in respect of employees’ end of service benefits payable under Qatar labour law.
The provision assumes no average increment / promotion costs (2020: 2.25%). The expected liability at the date of leaving service has been discounted to its net present value using a discount rate of 3.14% ( _2020: 2.81%_ ).
## **22. SHARE CAPITAL**
|||**2021**|_2020_|
|---|---|---|---|
|||**£**|_£_|
|Allotted,|called up and fully paid|||
|500,000|Ordinary shares of £1 each|**500,000**|_500,000_|
Page 47
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **23a. FUNDS**
|**23a. FUNDS**||||||||
|---|---|---|---|---|---|---|---|
|**Restricted funds**
Cobham
Hillingdon
Egham
Doha
**Unrestricted funds**
Share capital
Debentures
General reserves
Total funds||**B/fwd**
**£**
**-**
-
-
-
**-**
500,000
10,659,250
77,600,544
**88,759,794**
**88,759,794**|**Income**
**Expenditure**
**£**
**£**
80,110
(14,040)
39,051
(10,111)
98,278
(15,691)
-
-
**217,439**
**(39,842)**
-
-
-
-
74,726,879
(70,717,853)
**74,726,879**
**(70,717,853)**
**74,944,318**
**(70,757,695)**|**Transfers**
**£**
(66,070)
(28,940)
(82,587)
-
**(177,597)**
-
-
177,597
**177,597**
**- **||**Gains and**
**losses**
**£**
-
-
-
-
**-**
-
-
(471,483)|**C/fwd**
**£**
**-**
-
-
-
**-**
500,000
10,659,250
81,315,684
**92,474,934**
**92,474,934**|
|||||||||
|||||||
**(471,483)**
**(471,483)**||
Restricted funds include donations which the donors have earmarked for specific UK campuses. Restricted funds have been released to general reserves as their restrictions have been met during the year.
Unrestricted funds belong to the charity’s corporate reserves, spendable at the direction of the Trustees to further the charity’s objects.
## **Debentures (5th series)**
The director considers that the nature and terms of the fifth issue debentures, issued by ACS International Schools Limited, more accurately reflect equity and therefore they were reclassified from long term creditors to equity within the balance sheet in the year ended 31 July 2011.
During the year ACS International Schools Limited issued and repaid no fifth issue debentures of £250 each (2020: Nil).
The fifth issue debentures are unsecured, non interest bearing and repayable only by ACS International Schools Limited giving debenture holders not less than one month's notice of its intention to repay the principal sum or on a winding up. As at 31 July 2021 this issue comprised 42,637 debentures of £250 each (2020: 42,637 debentures of £250 each).
Page 48
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **23b. NET ASSETS SPLIT BETWEEN FUNDS**
|Intangible assets
Tangible fixed assets
Net current liabilities
Liabilities due in more than one year
Provisions
At 31 July 2021
**NALYSIS OF CHANGES IN NET DEBT**
**1 August**
**2020**
**£**
Cash at bank and in hand
**19,603,517**
Loan
**1,000,000**
Net funds
**20,603,517**||**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
768,737
100,368,035
(6,539,539)
(1,000,000)
(1,122,299)
**92,474,934**
**-**
**Cash flow**
**Exchange**
**Movement**
**£**
**£**
**6,608,611**
**517,345**
**-**
**- **
**6,608,611**
**517,345**||**Restricted**
**funds**
**£**
|-
-
-
-
-
|**Total**
**£**
768,737
100,368,035
(6,539,539)
(1,000,000)
(1,122,299
**92,474,934**
**31 July**
**2021**
**£**
**26,729,473**
**1,000,000**
**27,729,473**|
|---|---|---|---|---|---|---|
|||||**-**|||
||||||||
|||**6,608,611**|||||
## **24. ANALYSIS OF CHANGES IN NET DEBT**
## **25. CAPITAL COMMITMENTS**
At 31 July 2021 the group and charity had capital commitments as follows:
|Contracted for but not provided in these
financial statements|**Group**
**2021**
_2020_
**£**
_£_
**72,460**
_644,250_||**Charity**
**2021**
_2020_
**£**
_£_
**72,460**
_644,250_|
|---|---|---|---|
||**2021**
**£**
**72,460**||**2021**
**£**
**72,460**|
Page 49
## **ACS INTERNATIONAL SCHOOLS LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **26. OPERATING LEASE COMMITMENTS**
At 31 July 2021 the group had commitments under non-cancellable operating leases as follows:
|Within 1 year
Between 2 and 5 years
After more than 5 years|**Land and**
**2021**
**£**
**5,944,395**
**33,774,008**
**77,110,509**|**buildings**
_2020_
_£_
_1,339,764_
_7,516,225_
_17,930,221_
_26,786,210_|**Other**
**2021**
_2020_
**£**
_£_
**112,720**
_-_
**422,896**
_-_
**-**
_-_
**535,616**
_-_|**Other**
**2021**
_2020_
**£**
_£_
**112,720**
_-_
**422,896**
_-_
**-**
_-_
**535,616**
_-_|
|---|---|---|---|---|
||**116,828,912**|||_-_|
## **27. RELATED PARTY TRANSACTIONS**
ACS International Schools Limited recharged £114,897 (2020: £172,115) to ACS Commercial Enterprises Limited for the provision of staff and expenditure incurred on its behalf. At year end the balance of £107,241 (2020: £131,542) was owed to ACS International Schools Limited. ACS Commercial Enterprises Limited gift aided its profit of £52,069 (2020: £120,311) to ACS International Schools Limited.
ACS International Schools Limited recharged £2,973,683 (2020: £2,695,966) to ACS Doha International School LLC for expenditure incurred on its behalf and royalty and management charges. At year end the amount owed by ACS Doha International School LLC to ACS International Schools Limited was £17,106,214 ( _2020: £14,444,592_ ).
During the year, ACS International Schools Doha paid £Nil (2020: £11,200) to Marqeepro Limited whose director is also part of the senior leadership team in ACS International Schools Doha.
Page 50