Company Registration No= 01269980 Charlty Reglstratlon No.. 272565 ESB English Speaking Board (International) Limited Report of the Trustees and Financial Statements For The Year Ended 31 August 2021 ENGLISH SPEAKING BOARD IINTERNATIONALI LIMITED CONTENTS Page Chair's Report Trustees and Athsers Report ol the Trustees including Statement ol Trustees, responsibilities Independent Audrtor's Report to the Trustees 8-11 Stalemenls of Financi81 Actlvities 12-13 Statemenl ol Financi￿ Position 14 Slalement of Cash Flows 15 Notes to the A￿￿UnIS 16-25 ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED CHAIR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Rellections: For a second academic year English Speaking Board IlnternalionaD LiTniled was, as werè all Awarding org8nisalion5, significantly challenged by the irnpact ol Covid-19 from revenue, resourang and regulatory perspectives. With lockdowns inlhe autumn ts12020 and spring 012021 here in the UKand continued inl8inalional limitation5 on study, ESB fated challenging times from the outset of this year Ofqual again responded with Iwo sets of regulatory changes, on the 12th October, 2020, Ofqual brought into effect the rules of the Extended Extraordinary Regulatory Fr8tnowork IEERFI. whieh ￿p1a￿d Ihe Extraordinary R8gulatory Framework IERFI. The EERF'S aims were lo support learners in achieving the qualifteations they had been working low8rds, where assessments are unable to lake place as norfflal. due lo the Covid-19 pandemic. The key difference between the ERF and the EERF was that Calculated Grades ICAGS) and Delay are no longer mitigation options foi Vocational Technical Qualifications IVTQsl.Therefore, the rernaining mitigatlon was to adapt assessments. The final sel of Regulations coniained in the Vocation81 arKI Technical Qu8llfications Contingency Regulal Fr8mework (the VCR Conditions) carne into effect On 24 March 2021. The focus ol these changes was different to the previous academic year 85 the Government wished to see more learners taking assessments wherever possible. 11 sh"Il had a mitigation strategy of Teacher Assessed grades ITAGSI however fvom our Skills lor Life centres7 requested TAGS repre88riling less than 10% 01 Skills lor Life cenlres or 2Q/o of Ski115 for Life learners in a pre Covid year. Wilh the sust21ned education81 impact ol Covid we saw 311 UK and inlemab.onal learner numbers impacted significantly this year and the concomilanl revenue impact. Despite this realllywe confy'nued to strive lo reward as many learners as pos%ble continuing our focus ￿ personal contact with our customers, support for their assessrnent needs. including clear an(* sirnple guidance for centres. The Tiuslees again have paid tribute to the staff of ESB ft>r being flexible, resilient and centre focussed in supporting as many cenlres and therefore learners as p)ssible to receive their asse85m8nl8. Flnanclal posltlon With the sustained impact of Covidwe saw all reyenue lines impacted.. thèAcademicYear IAYI 1￿20 saw Speech UK achieve 32% 01 revenue and Speech International 70¥ts. 20-21 saw Speech UK improve to 48.10 however International fell to 30%. AY 19-20 saw Language UK achieve 98% of revenue and ESOL International 140%. AY 2(k21 saw Language UK fall to 75% and InteirTrational fell to 67tyA.However to meet this challenge our learn reduced expenditure significantly along with the levels of expenditure th81 reduc8d due to reduced revenue activities As our learner numbers reductsd 8nd $0 work was not available we did use the Government's Job Retention scherne which supported us. Governance change8 This year we appointed officers in the roles of Chair. Vice Chair 8nd Honorary Trèasurer - the current chair remain¢d as Chair, Sami Mirza became Vice Chaii alld Vvill assume the role ol Chair in 2023 then the current chair has finished hertwo terms as a TrL4Stee. The Trustees agreed that FranTrs Rithardson, nominated lor Vi Chair Gurronlly would then transition into Vice Chair at that point. Stephern Norton became Honor8ry Treasurer. The VI￿ Chair W￿kS with our Chief Assessor to gain familiarly wilh educational compliance and our treasurer with our Finance Manager. During this year Steffi Walsh rèsigned and a long standing Trustee Avril Newman finished her Iwo current temis. Avril has agreed to become an Ambassador for our 70170 Campaign. Therefore in the summer 012021 we ComMen￿d recruitfflenl and have appointed three new trustees lo have a full contingent 0112. Oaniel 8rown, Andrew Cumiskey and Emma Dawkins joined us for their first meeting in October 2021. Strategy 2020-2023 We rosel our locus and goals in Oclobgr 2020 ￿th a stimulating staN resel day. We identified 8 central driver that being 'deep customer engagement.. The reviewed strategy IndL)ded the new digital goal.. By 2023 fully ulilisè digital sollrtions across our dients lo future proof adiwties, irnprove cuslotnei 8xperi8nce, build brarKI reputation and retain clients. This repla￿d OUT growth strategy which we fglt was unrealistic in the current Covid affected sltualion. ENGLISH SPEAKING BOARD {INTERNATIONAL) LIMITED CHAIR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2021 strategy 2020-2023 leontlnuedl To focus on the ￿ntral theme of deèp customer engagement the leam created 4 customer Sou￿eY maps Ipolential new cenlre, registiation and induction. first assessment," first 12 months). these have been pivotal in focussing our business improvements. Charltable outrèach Our ability to linanaally support centreg to close the disadvantage gap is a central focus of our strategy. Our 2020-2023 strategy has significant further ro80uroe and lin&naal investment dI￿ted into outreach. We aim to have recruited 70 news ￿ntieS aeross the three years where their learners 01 clients face di5advantage- rinanoi81, thos& with special needs or disabilities, and tIK)se facing disadvantage due to their migrancy status. Despite the reduTrd revenue and thoiefore financial poglion lor 202￿21 we have continued lo keep the funding levels at £70,OOD using our free reserves. This reflects our cornmrtrnonl lo our purpose even in these times. Quallty Assurance Every year we carry out our Annual Training evonl for our assessors for the suite of ESOL Skills for Life, English s an addits.onal Language and Speech products. In October 202155 assessors met digitally lo train on our refreshed qualifi￿tionS for learners wth Special Educations Needs and Disabillb"es as well as be siardardised on their assessment of current qualifralions. We now offer monthly digital assessu training for our ESOL Intemab"on81 assessors and similarly annual online Slandardisation. We ag8ln have prepared our Statements ol complian￿ for our ￿gUrators, although thi5 process has bgen reduced in scope due to the pandemic. As part ol this preparation we continue to finalise ourwork for the Ofqual requirement to undertake Centre A8se8srnent $18ndards Scrutiny and carry out continuous irnprovernenl activities for Data Protection law and annual documentation reviews. Workforce changes Our workforce conlinu6S to thange to meet our needs and refiecl lh& second year ol Covid and its impacts. With 13 years of service to ESB between them, Jackie John50n our Business Development Advisor left in August 2020 Mark Wynne, our Business Development Manager in October 2020. Andy Piiest our IT lead resigned in Septernbei 2020 and after some interim solutions we decided lo outsour our IT provisicin to DigiDog Solutions, a local Soulhport company from May 2021, Wo now have a five year contract with this Iiim and have Dan Eely 8s our part lirne IT Lead and Alex Pople as our full IT supp)rt officer. We delighted with this long teim arrangement for this vital part of the business. In the Customer Experience tearn, G80rgle Anderson and Jo Smith were inducted in Octoi￿r 2020. having two members oflhe team 18ave the summer of 2020. Jo Smith had WOTked wth us temFX)rarily over the summer. The Educational Delivery team compiising ol Quality Assurance, Products 8nd our Senior Assessors saw a number of changes this year- Mark Crosher our Senior Product Dèveloper left in April 2021 and we recruited Lauren Kearney as a Speech specialist to PToducl Development. Lauren cornmenced in Septetnber 2021. A new rde to support the teams in Educational Delwery was created and 18880 Hart eommentsd in June 2021. Carolanne Leary our Charity Se¢rÈl8ry and PA to the CEO retumed froTll Maternity le8ve in January 2021 As ever our focus is encouraging the potential ol all our learners and even IhTough these Covid impaded years we have worked diligently to conlinue this. P Quarrell- Chalr ENGLISH SPEAKING BOARD {INTERNATIONALI LIMITED TRUSTEES AND ADVISERS AS AT 31 AUGUST 2021 Truslt•s Ms P Quarrell Ms M Hals811-Willlams Ms A Newman Ilerm finished June 20211 M8 S Walsh Iresigned January 20211 Mr l Kèlly Mr I Patterson Ms J W8rd Mr S IIAirza Mr S Norton Ms S Priestley Ms F Richaidson Mr D Brown lappolnted October 20211 Mr A Cumiskey lappointed October 20211 Ms E Dawkin8 lappointed October 20211 Company Secretary Ms C Leary Chief Executive Officer Ms T Renshaw Registered office 9 Hattersley Court Burscough Road Ormskirk Lancashire L39 2AY Company number 01269980 Charity number 272565 Audittsr BWM Suite 5.1 12 Tithebarn Street Liverpool L2 2DT Banker¥ Natwest Bank PLC 130 Lord Slieet Southport PR9 OAE Barclays Bank PLC 184 Allerton Rd Liverpool L18 2DH Sollcitor BLM IBerryrnan5 La￿ Mawer LLPI King's Hous8 42 King Street Wesl Manche8tei M3 2NU ENGLISH SPEAKING BOARD {INTERNATIONAL) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 The trustees, who are also directors ol the charity lor the purposes ol the Companies Act 2008, present their report togelherwilh the financial statements for the year ended 31 August 2020. The charity has opted lo pr&p•re its acGounls using the Financial Reporting Standard applicable in tre UK and the Republic of Ireland IFRS 1021 and followthe Charities SORP IFRS 1021. As a Ghgrily re9l$tereO in England and Wales, the chaiilable company a150 reports in accordan￿ with the Ch8rty Cornmisyion ft)r En912nd and Wales. guidanee on public benefit and the Charities Acl 2011. STRUCTURE, GOVERNANCE AND MANAGEIJIENT Governlng document The English Speaking Board Ilntemalion81l Litnited IESBI is a company limited by guarantee and a registered charity as defined by Companies Act 2006, and Incorporated on 22 July 1976. The organisation is governed by its Memorandum 8nd Articles of Association which were revised, U￿ated and approved by the members al the 64th Annual Gen8ial Meeting held at the Mercure Piccadilly Hotel, Portland Street, Man(*ester, M1 4PH on 24 June 2017. A further revision was made on 18 July 2020. Reference and admlnlstr4tlvè dètalls The trustees. who are also the directors for the puiptsse of company law, and who seNed during th9 year were. Ms J Ward Ms P Quarrell Ms F R￿hardSOn Ms M Halsalpwilliams Ms A Newman Iterm finished June 20211 Ms S Walsh Iresigned January 20211 Mr l Kelty Mr I Patterson Mrs Mirza Mr S Norton Ms S Priestley Recruitment and appointment of new trustees The direclois. who &re 3150 charity Iruslees for (he purposes of Charity Law, are kllown as members of the Board ol Truslees. They are recruited in line with the tertlls laid out in the Articles of A85QCl81ion. Truslfjos ale not paid but may claim reasonable expenses. They may not be salaried employees blrt may be contracted as freelan assessors for example. Induction and tralnlng of new trustees All nw Iruslees receive an induction pad(, which includes 8 brief ol their gene[81 Chaity ar¥J Company Law responsibilities, the ESB'S Memorandurn and Artides of Associabon. along wth other ESB poliaes and information. In addition we hold digital induction sessions to support their knowledge and understanding ol our financial strategy, our busintrs$ slralegy and our regulators. OrganÈsational Structure ESB has a board ol trustees with 8 broad rang6 of skills, kn￿ed9• and expertise, who meet four times a year and serve on a volunlery basis Trustees who have received remuneration for ESB contracted work carried out during the year are referred to in Note 10 01 the financial statements. There is a clear differentiation between governance, which Is the role of the Board tsf Trustees. and operafjons. whlch Is ihe role of the Chief Executive. For example, the tiusteès can cdleclively direct the Chief Executive but not the staff. Similarly. the staff may prepare the budget but it is the trustees who set it. The contact with stall is through the Chief Executive wh(> reports to and is monitored and appraised by the Board. Remuneratlon of Key Management ESB operates its salary slruclure within salary bands. Roles are designated a value taking Into account the expertise required for the iole, the judgment required arbd the accounlabilily. Key Management salaries are set by the Chief Executive on appointment. Pay increases are based on performance using published criteria. All permanent ernployees of ESB may seek a pay review once a year. Operational bonuses are based on ESB'S financial performan￿, the Chief Ex8CUtiV8 tn8k8S th8 final decision on these after seeking input from the tnanagement team. The Chief Executive's $818ry and pay increases are set by the Boar(l of TrLJStees. ENGLISH SPEAKING BOARD {INTERNATIONALI LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 Rlsk Management The trustees havè a formal pro￿55 101 assessing iisks and implemenling risk management stiategies. The operating am ollhe charity usually meets as a Senior ManagemenlTeam timce 8 month to reviewits performance against strategy and lo consider strategic aGlivilies that need to be undertaken. From March lo July the Senior Management team mel daily or weekly deperKling on the needs wising from the pandemic and were required to keep formal records by the regulator recording decision making to manage th6 assooaied risks during this lime. OBJECTIVES AND ACTIVITIES Objectlves and activities for the publlc benefit English Speaking Board Ilnternationall Limited IESBI as an organisation wth charrtable slalus has 8 PUtP05e to want all leamers lo possess the oiacy and English language 8kills they need lo achieve their aspirations. Wewanl lo stretch the most able and support the least confident and realise the potential ol all by closing the disadvantage gap. In planning their activities, the Iruslees have kept In mind the Charity Commission's guidallce on public benefit. Running ESB as an elfeclive business Ilmited by guarantee is ensuring that w8 can meet cAJr charitable purposes because we seek 10 5UPPOrt the widest group of learneF5, domestically and internationally and w8 have the e￿den￿ of the public benefit ol enhancing communication, English language, speaking and listening skills lo leainers. We can therefore Pri￿ our products accordingly and Secure revenue that provides us with developrnenl funds and opeT81ing surpluses to maintain. suslan and dèvelop our work. ESB did not increase ils piitss lor 19- 20 or 20-21 due lo the impact of the pandemic The trustees have idenlified the strategic objectives ol the Charity and these are hlghllghted in Ihe three-year strategic Plan12020-20231. whith was approved in January 2020 and iefreshed and approved in October 2020 in light of Covid-19. Our purpose English Speaking Board wants all learners lo possess the oiacy and English language skills they need lo athieve their aspirations We want to stretch the most 8Ne and support the least confident and r8alise th8 POtenb"al ol all by closing the disadvantage gap. To do th1$ we: Listen to our client8, understand their motivations and needs Em ￿0Y talented people who want lo achleve for our clients Support and v8lid81& the impact of our teachers and Promote and support assessment al cenlres thal are part ol clogng the disadv8nlag8 gap Central 8trateglc th8mtr- To create deep customèr èngagement Businesses that locus on ¢ustorner engagement are focused on value creation Value creation is the piimary aim ol any busine8s entity. Cieatlng value for customers helps sell products nd servitss, while creating value for the business, in the form ol inciea895 in revenue and sUr￿US, insures the future av8ilabilily ol surplus funds to invest in our futur8 and support charitable outreach Goals By 2023 lully utilise di9ilal 501utions across our dienls to lulure pri)of aeliviti&s, improve customer experience, build bland reputation and retain dients For the life of the strategy relain 90% 012019 ESOL Skills lor Life clients (including top 151 to provide the English language skills lor them to realise their potential and contribute to closing the disadvantage gap Annually achieve at least 95% of 811 our customer satisfaction & delivery laigels lo mtrasure our (￿stOrner engagement By 2023 have supported 70 centres to access oracy and language qualifi(3lions for leamers to realise their potential and contribute to closing the dis8dvanlage gap We continue to look ext8rnalty lo understand the market, our competitors and our clients, and produce a competitor analysis twce a year. Each year we identify Kay Performance Indicators lo drive the 8chi8V8rn8nt of our strategy. ENGLISH SPEAKING BOARD IINTERNATIONALI LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 Charitable sta￿3 and publle beneYIt The ch81ity regularfy reviews all fees and charges to ensure price sensitivity appropriate to our tnaiket5. In addition. the charity is keen to promote 8o¢ess for those who may find funding them difficult bul who wish to benefit from all that an ESB assessment provides. The charity established an Access Fund in memory of Christabel Burnislon MBE, founder ol ESB. In this financial year we had 8 target to financially support 7 continuing and 7 new cenlies. We achieved 60Vo of thls target and used £9,765 from the Chrislabel Burniston funds. This amount was less than the value ol the fund due lo the impact ol cancelled 855essmenls as a result ol centre closures. FINANCIAL REVIEW The Statement of Finanaal Activities ISOFAI, on page 11, reflects 811 incorne receivable in the year. Total income amounted to £1,376,521 12020.. £2.118,8521. Tol818xpendilure was £1.512,663 12020". £1,928,025). This resulted in a loss for the year of £136,14212020'. SUr￿u$ of £190,827). Total funds carried forward decreased lo £1,860,35412020 £1,996,496). ESB has good lin3tKial management in pla￿, with tight control of cash flow and debtors. The Trustees, 85 an intrinsic part of the charity's strategic risk fflanag8m8nl. wll continue to monitor income and expenditure carefully and to receive monthly r¢p(Yts on major trends. Reserves Policy The trustees have examined the requirements lor reserves in light ol the main risks lo the organisation. ESB'5 reserves policy, approved by the Board. is lo rnaintain 816V61 of free reserves thatwill enable the charity lo ensure a continuity ol a¢tNity and h8ve the at￿lIty to adjust in a measured way to significant changes in the external regulatory and economic environment. The trustees consider the target should be the equivalent of between eight and 18n months of opérational fixed expenditure which is estimated al £9(X).000. At the current year-end 31 August 2021, free reserves stood al £1,234.370 8 decr8ase of £117,715 from the prior year. Plans are in tAace to maintain charity rpsery¢$ al heailhy 18V815 and not to allow Ihese to fall below the target Principal fundlng sources The organisalDn is funded by the charges it makes for Ihe del￿erY of assessments and examinations. FUTURE DEVELOPMENTS TtrE focus for 2022 wll to regain our market share that has been affected due to Covid. We anlicipale that this 105s was temporary, a direcl in year Irnp8Ct and that cenlres will maintain th￿r relationship w41h us and recommence their use of oui qualifications. Each Covid impacted year we have made direct personal contact with our centre5 and so have worked hard lo maintain Tel81ionships whether eentres booked or not during those iwo academic years. We are making public on our web51te all of our resourtss arKJ have identified funding lo enhance our suite of learning and leather resources. This investment is intended lo support our current centres and attract new and relurnlng ones. We have refreshed our SEND Entry-Level qu8lific8tson portfolio - Bulldlng Confldencè In Communlcatlon comprising of 14 qualifications which are designed to promote confidence, oracy, and cornmuni¢ation skills. They airn to remove barriers lo learning by ellgbling access lo 8 range ol curricula, building relalionships and a sense of belonging, and developing self-esteem and a wsitive sell-identr'ly. A teacher support package is also avai18ble to support the learning and leaching of these qualifications in today's learning environment. All 14 01 these qualifi'cations are on the Education and Skills Funding Agency IESFAI list ol qualifications approved for fijnding lor 16-19 year-olds. We have identifi'ed over 500 special schools which we aro mailing lo inlroducg our presen￿ and qualification offering. We hope both to generate significant growth in this Speech market and work towards our 70170 catnpaign goal ol reaching out to new organi5alions whose learllers face disadvantage - In this case Sp8a81 educational needs and di58bilities. ENGLISH SPEAKING BOARD IINTERNATIONAL) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 As the final year of this strategy marks the 70* anniversary ol the founding of ESB we will commence the launch ol our 70170 campaign lo recruit and support more ￿ntre$ to realise the benefit5 01 our assessments and commit financial support lo enable some of our most dis8dvanlaged learners to achieve with us. In January 2021 we will continue our product developmenljoumeylo provide more relevant ch￿￿ lor ourlearners in our speech products and launch the Level 1 Gi8de 2 Speech Pathways qualifi'cation. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees Iwho are also directors ol English Speaking Board Ilnternationall Limi18d for the purposes ol company 18wl are responsible lor preparing the Trustees, Annual Report and thè financial statements in aw0[dan￿ wth applicable18w and Financial Reporting Standards applicable in the UK and Republio of116land. Company law requires the Iru81ees to prepare linanrial stalemtrnl8 for 68ch financial year, which give 8 true and fair view ol the s18le ol affairs of the charitable company and ol the incoming re50urce5 and application ol resources, including the income and expenditure, ol the chaiitable oomp8ny for that period. In preparing these financial statemenls, Ihe trusl88s are required lo.. select suitable accounting pollcies and then apply them con51Stently', observe the methods and piindples in the Charity SORP., make judggments and estimates that ale reasonable and prudent., slate whèth&r applicable UK Financiat Reporting Standards have been followed. subject to any material departures disclosed and ex￿alned in the financial stal8menls'. prepare the financial statements on the going concern basis unless ￿ is Inappropriate lo presume that the charitable cornpany will continue in operation. The trustees are responsibl8 for keeping adequate accounting records thal disclose with reasonable accuraey at any time the financial position ol the chaiitable company and enable them lo ensure that the financial slatemenls comply wlh the Companies Act 2006. They are also responsible foi safeguarding the assets ol the ¢haritabl& company and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to audltor In so lar as the trustees are aware.. there is no relevant information ol which the chhritable company's auditors artr unaware.. and the Iruslees have taken all the slep8 th* they ought to have taken to make themselves awa￿ of any relevant audit information and lo estat￿Lsh Ihal the auditor 15 awa18 of that information. Audltor Th8 auditor will be appointed at the Trustees, meeting in January 2022. Small company provision5 This report has been prepared in accordancg with the special provisions relating lo small companies Mthin part IS ol the Cotnpanies Act 20C6. This report was approved by the trustees on 22 January 2022 and signed on their behalf by.. P Quarr¢ l. Chalr ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED INDEPENDENT ALIDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 Oplnlon We have audited the financial stalem8nts of English Speaking Board Ilnlern8tionall Limited Ithe'charity'l lor the year ended 31 August 2021 which comprise the Statement ol financial activities, the bal8nC8 sheet. the slatementof cash flows and the notes to the financial statemenls, includino a summary of significant accourTrtlng policies. The financial reporting framewoik that has been applied in their pieparation Is applicable law and United Kingdom Accounting Standards. including Flnancial Reportlng Standard 102 Th& Financial Reportiiig Slandaril8pplicable in the UK and R8public of ltslartd Iuniled Kingdom Generally Accepted Accounting PracliTrl. In our opinion. the financial slalemenl5.' give a true and fair view of Ihe slate of the charitable company's affairs as al 31 August 2021 and of itsincoming resources and application of 1850urces, for the year then ended., have been property prepared In accordance wilh United Kinglom Generally AC￿pted Accounting Pr8dice',and have been prepared in accordance with th6 requirements ol the Companies Act 2006. Ba818 for oplnlon We conducted our 8udrt in accordance ￿1th International Standards on Auditing IUK) IISAS IUKII and applicablelaw. Qur ￿$SK)nsibIlitIeS under those Standards are further described in the Audito¢s responsibililies for the audilof the financial Statements section of our report. We are independent of the chaiily in aceordance wlth the elhicaliequirements that are relevant lo our audil of the financial statements in the UK. including the FRC'S Eth￿al Slandaid, and we have fulfilled OUT Othei ethieal responsibilities in accordance with these requirements. We believe that the audit evidence we have obl8lnod Is sufficient and appropriate lo piovidè a basls for our opinion. Cofi¢luslon8 relatlng to golng coneern In auditing the financial statements. we have ¢oncluded that Ihe trustees, use of the going concern basis of accounting in thè prèparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any materi81 uncertainties relating to events or conditions that. Individually or collectlvely, may cast significant doubl on the charlly's abilily to continue as a going concem for 8 perlod of at least twelve months from when the financial slalements ale authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant sections of this report. Other Informatlon The tIUStogs are responsible for th8 other information. The olhei information comprises the infomialion includedin the annual report, other Ih¥n the financlal slatemenls and our audltor's report thereon. Our opinion on th8 financlAI statements dogs nol cover the other information and, except to the extenl othe￿iSe expliatly slated inour ieptsrt, we do not expre55 any form ol assurance conclusK)n Iheieon. In connection with our audit of the financial statements, our responsibility is to read the other information and, indoing so, consider whether the other Information is mateiially ineonslstent wEth the financial slatements OT our knowledge obtained in the audil or otherwise appears lo be rnateiially misstated. 11 we 1dentify such material inconsistencies or apparent material misslalemenls. we arè requlred to determine whether there is a mglerial mlsslalement in the financial statements or a mal81i81 misstatement of the other Informatlon. If, based on Ihe work we have performed, we conclude that there is a m8tenal misstatement ol this other informatior>, we are required to report Ihal fact. We have nothing to report in this regard. ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 Oplnlons on other matters prescribed by ltte Companles Act 2006 In our oplnion, based on the work undertaken In the course ol our audit.. the information given In the trustees. report, which includes the directors. report prepared for the purposesof company law, lor the financial year for whioh the financial slalemen15 ale prepared Ts consislenl with thefirTranoial statements,. and the directofs, report included within the tru$lee$' rèport ha$ been prepared In accordan￿ wilh 8pplicable legal requirements. Matters on whlch we arg r8qulrad to report by gxcoptlon In the Ilghl of the knowledge and understanding ol the charily and Ils environment obtained in the course of theaudil, we have not identified rnalerial rni55tatements in the directors, report included within the Iruslees. report. We have nothlng to repori in respect ol Ihe following matters Sn relatSon to whlch the Companies Act 2008 requli85 US to report to you il, in our opinion.. adequate accounting records have not b￿n kept, or relum$ adeoual¢ for our 8udll have not been receivedfroTn branches not visited by us., or the financial statements 8T8 not in agreement wlth the accounting records and retums; or certain disclosures of trustees, remuneration sp8cif18d by law ale not made., 01 we have not ieoeived all the information and explanalions we require for our audit., or the trustees were not entitled Its prepare the financial ststèments ln accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Irustees. report and fromthe requiremenl lo prepar8 a str8teglc report. Regponsibilitl8s of trustees As explained more fully in the slotement of trustees, responsibilities, the trustees. who are also the directors ol the charily for the purpose of ¢ompany law, are responsible for the preparation of the financial slalemenls and forbelng salisfied thal they give a true and fair view, and for such internal control as the trustees determine is necessary lo enable thè preparatltsn of ftnanaal slatements that are free from rnaterial mlsstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicable, rnalters related lo going concern and using the golng concern basis of accountlng unless the trustees either intend lo liqu￿late the charitable companyor lo cease operations, Or have no realistie atternative but to do Auditor's responslbllltles for the audlt of thè flnanelal statements Our objectives 8re to obtaln reasonable assurance about whether the fin8n¢ial stslemenls as È whole are free from material misstalemenl, whether due to fraud or error, and to issue an auditoi's report that illcludtss OLtr opinion. Reasonable assuiance is a high level of assurance but is not a gu8rante8 that an audit conducted in accordance with ISAS (UK) wlll always detect a material misstatement when il exists. Misstatements can arise from fraud 01 eiror and are consldered malerial 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 $18lements. Irregulartlies, including fiaud. are inslan¢es of non-eompliance with laws and regula(ions. We design proc8dur8gln line wlth our responsibililies, outlined above, to delect material misstatements in respect of irregularities, including fraud. The extent lo which our proceduiès are capable of detecllng irregularities, including fr8ud, is detalled below. ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 The extent to whlch the audit wa5 considered capable of detectlng Irregularlties, InGludlng fraud Our approach lo idenlifying and assessing the risks of material mis8lal¢menl In respect ol iiregularities, Includingfraud and non-compliance wblh laws and regulations, was as follows". the engagement partner ensured that Ihe engagement team collectively had Ihe appiopiiale competence, capabilities and skills to Identify or Tecognise non-compliance with applicable laws and regulations", we identified the laws and regulations 8ppllcable to the company through dls¢usslons with direcloTS andother managemonl,, we focused on specific laws and regulations which we considered may have a direct material effect onthe financial slalemenls or the operations of the company, Including the Cotnpani85 Act 2006, taxationleglslallon and data proteclion, anli-bribery, employment and health and safety legislation., we assessed the extent of eompliance with the law5 and regulalions identified above through m8king enquiries of management and inspecting legal coriespondence,. and idenlif18d laws and regulations were communicated within the audit team regularly and the 1é8m remained alert lo instances of non-compliance throughout the audil. We assessed the 9usceplibility of the company's financial statements to material mis818lement, Includingobtaining an understanding ol how fraud might w¢ui, by.. 8king enquiries of management as lo where they con5Idered there was susceptibility to fiaud, theirknowledge of actual, suspected and alleged fraud,. and ¢onslderlng Ihe inleinal controls in place to mitig81è risks of fraud and non-cornpli8nce with laws andregulations. To address ihe risk of fraiKI through managemtrnt blas and override of controls, w8.. performed analytical prO￿d￿reS lo idèntify any unusual or unexpected ra181ionships,' tested journal entries to identify (Jnu5ual transactions., assessed whether judgernenls and assumptions made in delerminlng the accounts'ng estlmates wereindi¢8live of potential bias., and investigated the rationale behind significant or unusual transactions. In response to the rlsk ol irregulaiitles and non-complian¢e wllh laws and regulation8, we d8signed procedureswh1ch Included. but were not limited lo.. greeing financial st8lemenl disclosures to underlying supporting dc￿UMentallo￿', reading the minutes of meetings of those charged with governance,. and Ènquiring ol management as to actual and polenllal li(4gation and daims. There are inherent limbtalions in our audit prO￿dureS described above. The more rernoved that law5 and regulat￿n$ 8re from financial Iransaetions, the less likely il is that we would become aw8ie of ntsn- compliance.Audillng standards also limit the audit procedures requilgd lo identify non-compliance with laws and regulations10 enquiiy of the direclois and other management and the Inspection ol regulatory and legal coiiespondence, ifany. Material misstalements Ihal 8rise due to fraud can be harder to detecl than those that art8e from error as they may Fnvolve deliberale conce8lmenl or collusion. A further description of our responsibilities is available on the Financial Reporting Council's web$lle al.. https'.11 www.frc.or9.uklaudltorsresponsibllities. This description forrns pari of our audllor's report. -10- ENGLISH SPEAKING BOARD {INTERNATIONAL) LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 U88 of our report This report is made solely to the charitable company's rnernbeis, as a body, in accordance with Chapter 3 01 Part16 of the Companies Act 2006. Our audlt work has been undertaken so that we might slate Its the eharilable company's members Ihoso matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law. we do not aecept or assume responsibility to anyone other Ihanthe ¢harltable company and the charitable company's metnbers as a body, for our audit work, for is report. orfor the oplnions we have forrned. eA- 7-/1- Peter Taaffe FCA CTA DChA (Senior Statutory Audllorl for and on behalf of BWM Chartered Accountants Stalutory Auditor Su￿te 5.1 12 Tilhebam Street verpool L2 2DT ENGLISH SPEAKING BOARD {INTERNATIONALI LIMITED STATEMENT OF FINANCIAL ACTIVITIES (INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2021 cu Unrestrlcted Dèslgnated funds funds Total funds 2021 Totsl funds 2020 Note Income and endowmènt9 from.. Donations and legacies Charitable activities Investments 547 1.375,750 224 547 1,375,750 224 2,117,110 1,742 Totsl income and endowments 1.376,521 1,376.521 2,118,852 Ex Charitsble aclivlues 1.439,829 72,834 1,512.663 1,928,025 Tot81 frxpendlture 1,439,829 72,834 1,512,663 1,928.025 Nel income I lexpendilurel before transfer8 163,308} 172.8341 1136.1421 190,827 Transfers between funds 17 172,834} 72,834 Net movement in funds 1136,1421 1136,1421 190.827 Reconciliatlon of funds Total funds brou9ht forward 1,676,496 320,0(X) 1.9%,496 1,805,669 Total funds carried forward 1,540,354 320,0(K) 1,860.354 1,996,496 The statement ol finan¢i•l actlvities inclLKles 811 gains and losses in the year. Al income and expenditur6 derive frotn continuing actwities. -12- ENGLISH SPEAKING BOARD {INTERNATIONAL) LIMITED STA TEMENT OF FINANCIAL ACTIVITIES IINCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2021 PRIOR YEAR Unreslrlcted Deslgnated funds funds Total funds 2020 Note Income and endowments from: Donations and legacie8 Charitable activilies Investments 2.117,110 1,742 2,117,110 1,742 Tolal income and endowmènts 2,118,852 2,118,852 Ex enditure on= Charllable activltles 1,810.622 117.403 1,928,(Y25 Totsl expendlture 1,810,622 117.403 1,928,025 Net income I lexpendilurel before transfers 308.230 1117,4031 190,827 Transfers between funds 17 1137,4031 137,403 Net movemènt In funds 170.827 20,000 190.827 Recon¢iliation of funds Total funds brought fo￿rd 1,505,669 300,0(M) 1.805.669 Totsl ftjnds carried forward 1,678,49& 320,LK)O 1,9*,496 The statement ol fi'nancial arliwties indudes all gains and losses in the year. All income and Èxpendilure derive from continuing activit￿$. ENGLISH SPEAKING BOARD IINTERNATIONALI LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2021 Unrestrfcted funds Designated funds Total fL¢nds 2021 Total funds 2020 Note Fixed assets Inlangib1e a55els Tangib￿ as5els 11,286 294,718 11,268 294,178 25,045 299,368 305,984 305,984 324,411 Current assets Deblors Cash al bank and in hand 15 231.385 1,106,811 231,385 1,426,811 583,928 1,3(M).449 320,000 1,338.196 320,000 1.658,1 1,884.375 GrÈdilors'. Amount5 falllng du8 wilhin one year 16 1103.826 103.8261 1212,2901 N81 current assets 1,234,370 320,0(KI 1,554,370 1,672,085 Total a5set5 1Ès8 GurrÈnt Ilabllltl 1,540,354 320.OCKJ 1,860.354 1,996,4 Nat assets 1.540,354 320.000 1,860,354 1,996,4 Funds Unreslrieted fund5- frKed a$s8t8 Unreslrided funds- unde5ignaiÈd Unieslricted lunds- de51gnal8d Reslricled fun(15 17 305,984 1.234,370 305,984 1.234,370 320.000 324,411 1,352,085 320,000 320.(XM) 1,540,354 320.0 1.860,354 1,996.496 These finan¢i81 statement5 havè been prepared in 8ccordance wth the prow5ions applicable to cornpanies, subj'ect to the small companies, regime. These financial statements were approved and authorised for issue by the Board ol Trustees on 22 January 2022 and were s￿ned on ils behalf by.. P Quarrell- Chalr Trust9& Company number.. 01269980 -14- ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED STA TEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Cash flows from Operatlng Actlvltles Cash re￿ip1S Iiom customers Cash ieceipts from other operations Cash paid for supplier purchases Cash paid for general operatiro and administralivtr 8XP6nses Customer refunds 1.682,072 79,310 1768,9631 1857,7781 2,159 1.649,794 83,(K)3 177S,8881 1950,3941 19 638 Cash generated from operalions 134,482 {16,123} Cash flows from Investlng Actlvltle$ Purcha$8 of Tangible & Intangible assels PrO￿edS on disposal of investments Cash rec8iPts from bank acGount interest C8sh receipts from rent81 Income 114.2301 224 1,757 Net cash labsorbèdl I provlded by Investlng A¢tivitie3 114.LK161 1.757 Cash flows from Finan¢lng Activitlès Repayrnent ol bank loan$ N8t cash used in financlng activitlg8 Effects of currency translation on cash and cash equivalents 5,886 Net Increasè In eash and cash equlvalents 128,362 17,3421 Cash and (gsh equivalents al beginning of year 1300 449 1 307 791 Cash and cash equivalents at end of year 1426.811 1.300,449 See Note 21 for Analy81s of changes In net funds -15- ENGLISH SPEAKING BOARD {INTERNATIONALI LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 Accountlng pollcles Th8 principal accounting p)licies are summarised bdow. The accounting policies hav& been apdied consistently throughout the year and in the preTrding year. English Speaking Board Ilnternalionall Limited is a private company limited by guarantee incorporated In England and Wales. The registeEd office is 9 Hattersley Court, Burscough Road, Ormskirk, Lancashlre, L39 2AY. 181 Accountlng ¢onventlon These accounts have been prepar8d ill accordance with the charity's governing document, the Charities Act 2011 and °A¢counting and Reporting by Charities.. Stalemenl ol Recommende Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021" (as amended for accounting periods commencing from 1 January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The accounts ale prepared in sterling, whith is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost ¢onv$ntion. Ibl Golng concern Althe time of appr(wing the accounts. the trustees have • reasonable expectation that the charity h85 adequate ￿SourCeS to continue in operaliDnal existen￿ for the foreseeable lulure. Thus the trustees continue to adopt the going eoncern basis ol accounting In preparing the 8wunts. Icl Income All income is included in the Statement of Financial Activities whèn the charity is legally enlilled to the incom6 and the amount can be quantified with reasonable accuracy. Entitlement to legacy incom8 15 the earlier of the charity being notified ol an impendin9 distribution or the legacy being re￿ived. Income from tt)e provision of examlnations is accounted lor as earned. Idl Expèndlture Expenditure is accounted for on an acciuals basis and has been classified under headings that sggregate all o05t5 rdaled to the category. Where costs cannot be directly attiibuted to particular headings. they have been allocated lo a¢livitios on a basis consis18nt with the use ol resources. Expenditure includes irrecoverable value added lax. lel Intanglble fixed assats Expenditure relating lo development of 8 database systern and mobile phone app has tEen eapitalised and is being amortised over their useful life 013 years. Future expenditure on intangible fixed assels will be capitalis6d and depreciated over a period of between on8 to three year5. (n Tanglble fixed assets Tangible fixed assets costing more than £1,500 may be eapilalised and in¢luded at cost including any incidental expenses of acquislion. -1 ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 Doprecialion is provided on all tangible fixed assets at rates calculated to ￿te off the cost on a straight line b8sls over th￿1 expe¢ted useful economic livos as follows.. Land and buildings Office fittlngs, computer and technology 1%on¢osl 33%-50°A on cost Igl Impaimient of flxed assets At each reporting end date, the chaiily reviews the carrying arnounts ol its tangible and intangible assetslodeteiminewhelhertheie is any indication Ihatthose assets have suffered an Impairment 105s. If any such indication exists, the recDverable amount of the asset is esb"mated in order lo determine th8 extenl ol the ifflpairment loss lil any). Ihl Cash and cash equlvalents Cash cash equivalents include cash in hand. deposits held al call with banks, oth8r short-tem liquid investm&nl$ with original malurllies of thre& month5 or less. and bank overdraft5. FlnAnclal Instrumanls The charity has elected lo apply the provisions of Seclion 11 'Basic Financial Instruments, and Section 12 '01hei Financial In8lrumenls Issues, of FRS 102 to all ol ils financial instruments. Finanaal instruments are recognised in the charity's stat8rnent of financial position Wh￿ the charity boeomes party to the contractual provisions ol the instrument. Financial a588ts and liabilitl&S 8r6 offset, wth the nel amounts presented in the finanoal slalernents, when the￿ is a legally enforceable right to set oll the recognised amounts and there Is an intention to seltle on a net basis Dr to realise the asset and settle the liability simultaneously. Bask financlal assets Basic financial assets, which include debtors and ¢a$h and bank b81ances, are inilia11y measured al transaction price in¢luding Iran5aclion tos18 and are subsequently ¢arri&d al amort15ed Cost using the effective Inte￿$t method unless the arrangement constitutes a financing Iransaclion. where the iransact￿n is measured al the pr&senl value ol the future receipts discounted at a mark8t rate of interest. Financial assets classifth a5 reoivable within one year a￿ nol amortised. Bas1¢ flnanclal Ilabllifie5 Basic financial liabilities, including ueditors and bank loans are initially recognised at Iransacbon price unless the arrangement ¢onstilules a financing Iransa¢lion, where the debt instrument is m8asuied at Ihe present value of the future receipts éSs¢ounled al s market rate of interest. Financial liability-es cLqssrfied as payable within one year are not amortised. Debt instrum8n15 are subs8qU8nlly carried al amorlised cost. using the effective interest rate method. Trad8 Creditors are obligations to pay for goods or 5ervi¢es that hav8 been aclulred in the ordinary course of op8ratior15 from suppliers. Arnounls payable are dassified as ¢urrent liabilities if payment is due within one year or less. If not. they ar8 presented as non