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2022-08-31-accounts

Company Registration No: 01269980

Charity Registration No: 272565

English Speaking Board (International) Limited

Report of the Trustees and Financial Statements

For The Year Ended 31 August 2022

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED CONTENTS

Page
Chair�s Report 1-2
Trustees and Advisers 3
Report of the Trustees including Statement of Trustees' responsibilities 4 � 7
Independent Auditor�s Report to the Trustees 8 � 11
Statements of Financial Activities 12-13
Statement of Financial Position 14
Statement of Cash Flows 15
Notes to the Accounts 16 � 25

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

CHAIR�S REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

Reflections:

ESB decided that with 2 years of COVID impact, the business strategy needed to be recreated with a new three year focus. So from January 2022 ESB has been delivering a recovery strategy, focusing on restoring strong revenue levels; retaining key centres and ensuring we maintain and increase our focus and financial support for centres whose learners experience disadvantage.

As ever the broad ESB team - head office staff, assessors and markers have worked exceptionally hard to achieve these business needs, whilst still experiencing themselves a lower level but still extant levels of COVID. The team have developed fantastic Speech resources in our most popular and impactful qualifications; increased levels of videoed assessments both for new centres to see the experience but also to use in Standardisation activities with assessors to ensure our quality of assessing is high.

What has been clear this year is that centres found that COVID�s impact on learners and their social isolation reinforced the need for face to face communication and language learning and interaction. ESB International therefore saw many centres reignite their work with us and new centres join us, particularly those who benefitted from our financial support. The academic year 21-22 saw us use the highest levels of our support fund, the Christabel Burniston fund, than ever in the history of the fund. We supported schools, third sector youth organisations and refugee and asylum seeker groups.

Financial position

The financial performance for academic year 20-21 saw our lowest revenue levels in five years. However with the clear financial recovery strategy this financial year saw significant success in four out of the five financial recovery targets, restoring levels of revenue in our Speech and UK Language product lines. COVID is still having significant impact internationally so our recovery target for ESOL International achieved only 50% of its target.

Governance changes

This year saw few changes to our governance membership. Only one Trustee, Merriel Halsall-Williams finished her two terms. However Ms Halsall-Williams did assume the role of Honorary President of ESB having been Vice President and Ms Kate Forrester stood unopposed to become our Honorary Vice President. These two honorary roles are kept in touch with the business by receiving regular interaction with the CEO, as well as receiving agenda and minutes from our Trustee meetings.

Charitable outreach

Our ability to financially support centres to close the disadvantage gap continued to be central focus of our strategy. We aim to have recruited 70 new centres across the three years 2022-2025 where their learners or clients face disadvantage � financial, those with special needs or disabilities, and those facing disadvantage due to their migrancy status. Despite the reduced revenue and therefore financial position for 2020-21 we kept the funding levels at £70,000 using our free reserves. This reflects our commitment to our purpose even in these times.

Quality Assurance

We were delighted that we could return to face to face Annual Training for our assessors for the suite of ESOL Skills for Life, English as an additional Language and Speech products. In October 2022, 43 assessors met in Loughborough to be standardised on their assessment of current qualifications. We also focused on themes on unconscious bias as well as mandatory safeguarding and conflict of interest requirements.

We continue to offer monthly digital assessor training for our ESOL International assessors and similarly annual online standardisation.

We, again, have prepared our Statements of Compliance for our regulators. As part of this preparation we continue to implement our work for the Ofqual requirement to undertake Centre Assessment Standards Scrutiny and carry out continuous improvement activities for Data Protection law and annual documentation reviews.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

CHAIR�S REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

Workforce changes

Our workforce continues to change to meet our needs.

We recruited Abdul Miah to our Business Development function as we focus on our recovery strategy. We have had new team members in our Customer Experience Team, Tom Wilson and Jack Miller who replace Rebecca Lewis and Becky Smith. We also recruited John McLoughlin, for our Finance and Premises team, who replaced Ayrton Roe who left in June 2022.

We have made the important change of engaging a new technical IT support service, Full Metal, under the auspices of DigiDog Tech, our IT service supplier. This new arrangement replaces a long term supplier of IT support and we look forward to an enhanced experience for our centres and team. Alex Pople of DigiDog left us and was replaced by Josh Lawton as our fulltime IT team member.

P Quarrell � Chair

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED TRUSTEES AND ADVISERS

AS AT 31 AUGUST 2022

Trustees Ms P Quarrell
Ms M Halsall-Williams (Term ended June 2022)
Mr l Kelly
Mr I Patterson
Ms J Ward
Mr S Mirza
Mr S Norton
Ms S Priestley
Ms F Richardson
Mr D Brown (Appointed 2 October 2021)
Mr A Cumiskey (Appointed 2 October 2021)
Ms E Dawkins (Appointed 2 October 2021)
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
Auditor BWM
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Bankers NatWest Bank PLC
130 Lord Street
Southport
PR9 0AE
Barclays Bank PLC
164 Allerton Rd
Liverpool
L18 2DH
Solicitor BLM (Berrymans Lace Mawer LLP)
King�s House
42 King Street West
Manchester M3 2NU

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report together with the financial statements for the year ended 31 August 2022. The charity has opted to prepare its accounts using the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and follow the Charities SORP (FRS 102). As a charity registered in England and Wales, the charitable company also reports in accordance with the Charity Commission for England and Wales� guidance on public benefit and the Charities Act 2011.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The English Speaking Board (International) Limited (ESB) is a company limited by guarantee and a registered charity as defined by the Companies Act 2006, and incorporated on 22 July 1976. The organisation is governed by its Memorandum and Articles of Association which were revised, updated and approved by the members at the 64[th] Annual General Meeting held at the Mercure Piccadilly Hotel, Portland Street, Manchester, M1 4PH on 24 June 2017. A further revision was made on 18 July 2020.

Reference and administrative details

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

The trustees, who are also the directors for the purpose of company law, and who served during the year were:
Ms J Ward Ms P Quarrell
Ms F Richardson Ms M Halsall-Williams (Term ended June 22)
Mr I Kelly Mr I Patterson
Mr S Mirza Mr S Norton
Ms S Priestley Mr D Brown (Appointed 2 October 2021)
Mr A Cumiskey (Appointed 2 October 2021) Ms E Dawkins (Appointed 2 October 2021)

Recruitment and appointment of new trustees

The directors, who are also charity trustees for the purposes of Charity Law, are known as members of the Board of Trustees. They are recruited in line with the terms laid out in the Articles of Association. Trustees are not paid but may claim reasonable expenses. They may not be salaried employees but may be contracted as freelance assessors for example.

Induction and training of new trustees

All new trustees receive an induction pack, which includes a brief of their general Charity and Company Law responsibilities, the ESB�s Memorandum and Articles of Association, along with other ESB policies and information. In addition we hold digital induction sessions to support their knowledge and understanding of our financial strategy, our business strategy and our regulators.

Organisational Structure

ESB has a board of trustees with a broad range of skills, knowledge and expertise, who meet four times a year and serve on a voluntary basis. Trustees who have received remuneration for ESB contracted work carried out during the year are referred to in Note 10 of the financial statements.

There is a clear differentiation between governance, which is the role of the Board of Trustees, and operations, which is the role of the Chief Executive. For example, the trustees can collectively 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 staff is through the Chief Executive who reports to and is monitored and appraised by the Board.

Remuneration of Key Management

ESB operates its salary structure within salary bands. Roles are designated a value taking into account the expertise required for the role, the judgment required and the accountability. Key Management salaries are set by the Chief Executive on appointment. Pay increases are based on performance using published criteria. All permanent employees of ESB may seek a pay review once a year. Operational bonuses are based on ESB�s financial performance, the Chief Executive makes the final decision on these after seeking input from the management team. The Chief Executive�s salary and pay increases are set by the Board of Trustees.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Risk Management

The trustees have a formal process for assessing risks and implementing risk management strategies. A comprehensive risk register is presented to the Trustees at each meeting.

The operating arm of the charity usually meets as a Senior Management Team twice a month to review its performance against strategy and to consider strategic activities that need to be undertaken.

OBJECTIVES AND ACTIVITIES

Objectives and activities for the public benefit

English Speaking Board (International) Limited (ESB) as an organisation with charitable status has a purpose to want all learners to possess the oracy and English language skills they need to achieve their aspirations. We want to stretch the most able and support the least confident and realise the potential of all by closing the disadvantage gap.

In planning their activities, the trustees have kept in mind the Charity Commission�s guidance on public benefit. Running ESB as an effective business limited by guarantee is ensuring that we can meet our charitable purposes because we seek to support the widest group of learners, domestically and internationally and we have the evidence of the public benefit of enhancing communication, English language, speaking and listening skills to learners. We can therefore price our products accordingly and secure revenue that provides us with development funds and operating surpluses to maintain, sustain and develop our work. ESB did increase its prices for the academic year 21-22. However it also increased assessor and marker fees as well as staff remuneration.

The trustees have identified the strategic objectives of the Charity and these are highlighted in the three-year Strategic Plan (2022-2025), which was approved in January 2022.

Our purpose

To do this we:

Central strategic theme - To create deep customer engagement

Value creation is the primary aim of any business entity. Creating value for customers helps sell products and services, while creating value for the business, in the form of increases in revenue and surplus, insures the future availability of surplus funds to invest in our future and support charitable outreach

Goals

We continue to look externally to understand the market, our competitors and our clients, and produce a competitor analysis when required. Each year we identify Key Performance Indicators to drive the achievement of our strategy.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2022

Charitable status and public benefit

The charity regularly reviews all fees and charges to ensure price sensitivity appropriate to our markets. In addition, the charity is keen to promote access for those who may find funding them difficult but who wish to benefit from all that an ESB assessment provides.

The charity established an Access Fund in memory of Christabel Burniston MBE, founder of ESB. In this financial year we had a target to financially support 13 continuing and 12 new centres. We achieved 84% of this target and used £32,873 from the Christabel Burniston fund.

FINANCIAL REVIEW

The Statement of Financial Activities (SOFA), on page 12, reflects all income receivable in the year. Total income amounted to £1,667,365 (2021: £1,376,521). Total expenditure was £1,734,316 (2021: £1,512,663). This resulted in a loss for the year of £66,951 (2021: loss of £136,142). Total funds carried forward decreased to £1,793,403 (2021: £1,860,354).

ESB has good financial management in place, with tight control of cash flow and debtors. The Trustees, as an intrinsic part of the charity�s strategic risk management, will continue to monitor income and expenditure carefully and to receive monthly reports on major trends.

Reserves Policy

The trustees have examined the requirements for reserves in light of the main risks to the organisation. ESB�s reserves policy, approved by the Board, is to maintain a level of free reserves that will enable the charity to ensure a continuity of activity and have the ability 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 ten months of operational fixed expenditure which is estimated at £900,000. At the current year-end 31 August 2022, free reserves stood at £1,251,480 an increase of £17,110 from the prior year. Plans are in place to maintain charity reserves at healthy levels and not to allow these to fall below the target.

Principal funding sources

The organisation is funded by the charges it makes for the delivery of assessments and examinations.

FUTURE DEVELOPMENTS

We have some projects focussing on improving our Customers� journeys that will continue into 2023 � resource creation; our website and our online booking system. We also will seek feedback on the new resources launched this academic year to ensure they meet the needs of our centres.

We have a set of multi media events planned to celebrate our 70th year in 2023. These will focus on our learners and engage with as many centres, team members and Friends of ESB who wish to share in our celebrations as we look back and look forward

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2022

STATEMENT OF TRUSTEES� RESPONSIBILITIES

The trustees (who are also directors of English Speaking Board (International) Limited for the purposes of company law) are responsible for preparing the Trustees� Annual Report and the financial statements in accordance with applicable law and Financial Reporting Standards applicable in the UK and Republic of Ireland.

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

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

Disclosure of information to auditor

In so far as the trustees are aware:

there is no relevant information of which the charitable company's auditors are unaware; and

Auditor

The auditor will be appointed at the Trustees� meeting in January 2023.

Small company provisions

This report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

This report was approved by the trustees on 28 January 2023 and signed on their behalf by:

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2022

Opinion

We have audited the financial statements of English Speaking Board (International) Limited (the �charity�) for the year ended 31 August 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC�s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity�s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2022

The extent to which the audit was considered capable of detecting irregularities, including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company�s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council�s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2022

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 auditors' 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.

Louise Casey ACA (Senior Statutory Auditor) for and on behalf of BWM

������.

Chartered Accountants Statutory Auditor

Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

CURRENT YEAR
Income and endowments from:
Note
Donations and legacies
Charitable activities
3
Investments
4
Total income and endowments
Expenditure on:
Charitable activities
5
Total expenditure
Net income / (expenditure) before transfers
Transfers between funds
17
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
235
1,666,882
248
1,667,365
1,658,261
1,658,261
9,104
(2,873)
6,231
1,540,354
1,546,585		 Designated
funds
£
-
-
-
-
76,055
76,055
(76,055)
2,873
(73,182)
320,000
246,818		 Total
funds
2022
£
235
1,666,882
248
1,667,365
1,734,316
1,734,316
(66,951)
-
(66,951)
1,860,354
1,793,403		 Total
funds
2021
£
547
1,375,750
224
1,376,521
1,512,663
1,512,663
(136,142)
-
(136,142)
1,996,496
1,860,354

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

PRIOR YEAR
Income and endowments from:
Note
Donations and legacies
Charitable activities
3
Investments
4
Total income and endowments
Expenditure on:
Charitable activities
5
Total expenditure
Net income / (expenditure) before transfers
Transfers between funds
17
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
547
1,375,750
224
1,376,521
1,439,829
1,439,829
(63,308)
(72,834)
(136,142)
1,676,496
1,540,354		 Designated
funds
£
-
-
-
-
72,834
72,834
(72,834)
72,834
-
320,000
320,000		 Total
funds
2021
£
547
1,375,750
224
1,376,521
1,512,663
1,512,663
(136,142)
-
(136,142)
1,996,496
1,860,354

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2022

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: Amounts falling due
within one year
16
Net current assets
Total assets less
current liabilities
Net assets
Funds
17
Unrestricted funds - fixed assets
Unrestricted funds - undesignated
Unrestricted funds - designated
Restricted funds		 Unrestricted
funds
£
4,151
290,954
295,105
221,601
1,116,524
1,338,125
(86,645)
1,251,480
1,546,585
1,546,585
295,105
1,251,480
-
1,546,585		 Designated
funds
£
-
-
-
-
246,818
246,818
-
246,818
246,818
246,818
-
-
246,818
246,818		 Total funds
2022
£
4,151
290,954
295,105
221,601
1,363,342
1,584,943
(86,645)
1,498,298
1,793,403
1,793,403
295,105
1,251,480
246,818
1,793,403		 Total funds
2021
£
11,266
294,718
305,984
231,385
1,426,811
1,658,196
(103,826)
1,554,370
1,860,354
1,860,354
305,984
1,234,370
320,000
-
1,860,354

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

These financial statements were approved and authorised for issue by the Board of Trustees on 28 January 2023 and were signed on its behalf by:

P Quarrell � Chair Trustee

Company number: 01269980

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2022

Cash flows from Operating Activities
Cash receipts from customers
Cash receipts from other operations
Cash paid for supplier purchases
Cash paid for general operating and administrative expenses
Customer refunds
Cash generated from operations
Cash flows from Investing Activities
Purchase of Tangible & Intangible assets
Proceeds on disposal of investments
Cash receipts from bank account interest
Cash receipts from rental income
Net cash (absorbed) / provided by Investing Activities
Cash flows from Financing Activities
Repayment of bank loans
Net cash used in financing activities
Effects of currency translation on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
1,609,715
21,396
(862,470)
(819,697)
(6,745)
(57,801)
-
-
248
-
248
-
-
(5,916)
(63,469)
1,426,811
1,363,342		 2021
£
1,682,072
79,310
(766,963)
(857,778)
(2,159)
134,482
(14,230)
-
224
-
(14,006)
-
-
5,886
126,362
1,300,449
1,426,811

See Note 21 for Analysis of changes in net funds

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

English Speaking Board (International) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 9 Hattersley Court, Burscough Road, Ormskirk, Lancashire, L39 2AY.

(a) Accounting convention

These accounts have been prepared in accordance with the charity�s governing document, the Charities Act 2011 and �Accounting and Reporting by Charities: 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)� (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which 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 convention.

(b) Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

(c) Income

All income is included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Entitlement to legacy income is the earlier of the charity being notified of an impending distribution or the legacy being received.

Income from the provision of examinations is accounted for as earned.

(d) Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Expenditure includes irrecoverable value added tax.

(e) Intangible fixed assets

Expenditure relating to development of a database system and mobile phone app has been capitalised and is being amortised over their useful life of one to three years.

(f) Tangible fixed assets

Tangible fixed assets costing more than £1,500 may be capitalised and included at cost including any incidental expenses of acquisition.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:

Land and buildings - 1% on cost Office fittings, computer and technology - 33%-50% on cost

-16-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

(g) Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

(h) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

(i)

Financial instruments

The charity has elected to apply the provisions of Section 11 �Basic Financial Instruments� and Section 12 �Other Financial Instruments Issues� of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's statement of financial position when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity�s contractual obligations expire or are discharged or cancelled.

-17-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

(j) Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee�s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

(k) Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

(l) Foreign exchange

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.

(m) Operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred.

(n) Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income and gains falling within these exemptions.

The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

(o) Fund accounting

Unrestricted funds which have not been designated for specific purposes can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

-18-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2022

2 Critical accounting estimates and judgements

In the application of the charity�s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of intangible assets

The annual amortisation charge for intangible fixed assets which comprise a website, database and mobile phone app development is sensitive to changes in their estimated useful economic lives. The useful economic lives are assessed on initial acquisition and reassessed periodically to ensure they remain appropriate. They are amended when necessary to reflect current estimates based on technological advancement, future investments and economic utilisation. Accounting policy note (e) sets out the useful economic lives applied to the intangible fixed assets and their carrying value is shown in note 12.

3 Income from charitable activities

Examination fees
Other examination income
IESOL examination fees
Grant Income		 Unrestricted
funds
£
786,145
45,333
830,395
5,009
1,666,882		 Total
2022
£
786,145
45,333
830,395
5,009
1,666,882		 Unrestricted
funds
£
502,552
47,026
737,212
88,960
1,375,750		 Total
2021
£
502,552
47,026
737,212
88,960
1,375,750

-19-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

4 Investment income

Unrestricted
funds
£
Bank interest
248
248
Cost of charitable activities
Current Year
Examinations
Staff Costs (Inc. agency staff) (note 11)
Examination expenses and fees
IESOL examination expenses
Other
Management
Finance (note 6)
Governance (note 7)
Prior Year
Examinations
Staff Costs (Inc. agency staff)
Examination expenses and fees
IESOL examination expenses
Other
Management
Finance (note 6)
Governance (note 7)		 Total
2022
Unrestricted
funds
Total
2021
£
£
£
248
224
224
248
224
224
Direct
Costs
Support
Costs
2022
Total
£
£
£
541,518
323,944
865,462
307,424
33,431
340,855
263,915
-
263,915
64,541
42,624
107,165
-
139,731
139,731
-
6,628
6,628
-
10,560
10,560
1,177,398
556,918
1,734,316
Direct
Costs
Support
Costs
2021
Total
£
£
£
430,293
415,510
845,803
163,981
12,263
176,244
228,861
-
228,861
68,526
60,571
129,097
-
126,844
126,844
-
114
114
-
5,700
5,700
891,661
621,002
1,512,663		 Total
2021
£
224
224

5 Cost of charitable activities

-20-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2022

FOR THE YEAR ENDED 31 AUGUST 2022
6
Finance
Unrestricted
funds
£
Bank charges
1,199
Loan interest
-
Exchange Rate Variance
5,429
6,628
7
Governance
Unrestricted
funds
£
Audit fees (current year)
5,248
Company Secretary Work
-
Trustee Meetings & Expenses
5,312
10,560
8
Auditors� remuneration
The analysis of auditor�s remuneration is as follows:
Audit of charity�s annual accounts
9
Net income/expenditure
Net income/expenditure is stated after charging:
Amortisation of intangible fixed assets
Depreciation of tangible fixed assets
Auditor fees		 Total
2022
£
1,199
-
5,429
6,628
Total
2022
£
5,248
-
5,312
10,560		 Unrestricted
funds
Total
2021
£
£
1,118
1,118
-
-
(1,004)
(1,004)
114
114
Unrestricted
funds
Total
2021
£
£
4,945
4,945
-
-
755
755
5,700
5,700
Total
2022
Total
2021
£
£
5,248
4,945
Total
2022
Total
2021
£
£
7,115
28,009
3,764
4,648
5,248
4,945		 Total
2021
£
1,118
-
(1,004)
114
Total
2021
£
4,945
-
755

10 Trustees� remuneration

The amounts paid to trustees in respect of examiner duties performed during the year amounted to £12,800 (2021: £2,758). Payments of this nature have been agreed with the Charity Commission.

Trustees' expenses

During the year, 12 trustees received £1,606 in expenses for travel, subsistence and accommodation (2021: 11 trustees � zero expenses paid)

-21-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

11
Employee costs
Wages and salaries
National Insurance Costs
Employer�s contribution to defined pension scheme
The number of employees during the year was as follows:
Staff numbers � Average Head Count
Staff numbers � Full Time Equivalent
No. of employees whose total employee benefits (excluding
employer pension costs) were between £70,000 - £80,000:
12
Intangible assets
Cost
At 1 September 2021
Additions
At 31 August 2022
Amortisation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value:
At 31 August 2022
At 31 August 2021		 Total
2022
£
743,525
62,720
59,220
865,465
No
26
21
1
IT
Development
£
244,516
-
244,516
233,251
7,115
240,366
4,150
11,265		 Total
2021
£
722,833
63,225
59,745
845,803
No
26
20
1
Total
£
244,516
-
244,516
233,251
7,115
240,366
4,150
11,265

-22-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

13
Tangible fixed assets
Cost
At 1 September 2021
Additions
Disposals
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
Eliminated on Disposals
At 31 August 2022
Net book value:
At 31 August 2022
At 31 August 2021
14
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
15
Debtors: amounts falling due within one year
Trade debtors
Other debtors
Prepayments		 Long
leasehold
land and
buildings
£
385,567
-
-
385,567
91,291
3,322
-
94,613
290,954
294,276		 Office
fittings,
computer
and
technology
£
88,731
-
-
88,731
88,289
442
-
88,731
-
442
2022
£
1,548,513
68,870
2022
£
184,793
378
36,430
221,601		 Office
fittings,
computer
and
technology
£
88,731
-
-
88,731
88,289
442
-
88,731
-
442
2022
£
1,548,513
68,870
2022
£
184,793
378
36,430
221,601		 Total
£
474,298
-
-
474,298
179,580
3,764
-
183,344
290,954
294,718
2021
£
1,592,557
88,514
2021
£
165,682
64
65,639
231,385

-23-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

16 Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income
Taxation and National Insurance
Other creditors		 2022
£
35,681
21,159
17,775
12,030
86,645		 2021
£
19,061
44,420
15,312
25,033
103,826
17
Movement in funds
General funds
Unrestricted funds
Designated funds
Christabel Burniston Fund
Other Designated Funds
Total funds
General funds
Unrestricted funds
Designated funds
Christabel Burniston Fund
Other Designated Funds
Total funds		 At 1 Sept
2021
£
1,540,354
70,000
250,000
1,860,354
At 1 Sept
2020
£
1,676,496
70,000
250,000
1,996,496		 Income
£
1,667,365
-
-
1,667,365
Income
£
1,376,521
-
-
1,376,521		 Expenditure
Transfers &
gains
£
£
(1,658,261)
(2,873)
(32,873)
2,873
(43,182)
-
(1,734,316)
-
Expenditure
Transfers &
gains
£
£
(1,439,829)
(72,834)
(9,765)
9,765
(63,069)
63,069
(1,512,663)
-		 At 31 Aug
2022
£
1,546,585
40,000
206,818
1,793,403
At 31 Aug
2021
£
1,540,354
70,000
250,000
1,860,354

Christabel Burniston Access Fund

The Fund was set up in 2007, in memory of the late Christabel Burniston MBE, founder of ESB, to offer financial support for access to the English Speaking Board examinations, and every application is taken on its merits. The fund was established at the discretion of the trustees, using legacy income received in the year ended 31 August 2009.

Other Designated Funds

Other Designated Funds consist of £142,266 for the development of our Database, Website and CRM System, £39,442 for Product Development, and £25,110 for Resource Development.

The designated funds are all held in cash.

-24-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2022

18 Company status

The charity is a company limited by guarantee. Each member undertakes to contribute to the assets of the company in the event of a winding-up, to an amount not exceeding £1. At 31 August 2022, there were 98 �friends� who are non-voting members and 11 ordinary members who are also Directors/Trustees.

19 Operating leases

At 31 August 2022, the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Operating leases:
Within one year
Within 2 � 5 years
Over 5 years
20
Related party transactions
Remuneration of key management personnel
Wages and salaries
National Insurance costs
Employer�s contribution to defined pension schemes		 2022
£
22,080
21,902
-
43,982		 2021
£
22,080
43,529
139
65,748
2022
£
321,063
36,986
32,486
390,535		 2021
£
335,585
37,801
32,112
405,498

Key management personnel consisted of seven employees for 2022 (2021: seven employees). No guarantees have been given or received.

21 Analysis of changes in net funds

Cash at bank and in hand
Total Cash Flows
Loans due within one year
Loans due more than one year
Obligations under finance leases
Total funds		 At 1 Sept
2021
£
1,426,811
1,426,811
-
-

-
1,426,811		 Cash
flows
Acquisitions
and
disposals
£
£
(57,553)
-
(57,553)
-
-
-
-
-
-
-
(57,553)
-		 New
finance
leases
Foreign
exchange
movements
£
£
-
(5,916)
-
(5,916)
-
-
-
-
-
-
-
(5,916)		 At 31 Aug
2022
£
1,363,342
1,363,342
-
-
-
1,363,342

-25-

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