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2021-07-31-accounts

Charity Registration No. 274779

Company Registration No. 01206976 (England and Wales)

A.I.E.S.E.C. (U.K.) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

A.I.E.S.E.C. (U.K.) LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees I Priestley A Sia Lu C Galindo J Ryan R Cook C Raportaru S Shah C Moore L Archer (Appointed 12 October 2020) Secretary A Sia Lu (Appointed 13 August 2020) Charity number 274779 Company number 01206976 Registered office 1e Mentmore Terrace London England E8 3DQ Auditor HW Fisher LLP Acre House 11-15 William Road London NW1 3ER United Kingdom Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

A.I.E.S.E.C. (U.K.) LIMITED

CONTENTS

Page
Trustees' report 1 - 5
Statement of Trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 23

A.I.E.S.E.C. (U.K.) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 JULY 2021

The Trustees present their report and financial statements for the year ended 31 July 2021.

The financial statements have been prepared in accordance with the charity’s Memorandum & Articles of Association, the Companies Act 2006 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) (effective 1 January 2019).

A.I.E.S.E.C. (U.K.) Limited is referred to as “the charity” or “AIESEC (UK)”.

Objectives and Activities

AIESEC (UK)'s vision and role are identical to all AIESEC countries as set out by The AIESEC Way:

What we Envision:

Peace and fulfilment of humankind's potential.

Our Impact:

Our international platform enables young people to explore and develop their leadership potential to have a positive impact in society.

The way we do it:

AIESEC provides its members with an integrated development experience comprised of leadership opportunities, international internships and participation in a global learning environment.

The objectives of the charity are achieved in the following ways:

  1. Youth Leadership Development: Providing students and recent graduates with the opportunity to work in a team and lead a group of their peers while at university and while being exposed to different cultures, businesses and opinions helps fulfil AIESEC's aims.

AIESEC (UK) organises and delivers a range of internal and external educational conferences, seminars, and events to improve member and non-member management skills, business acumen and leadership potential.

  1. The International Traineeship Scheme ("Exchange Programme"): This is a reciprocal programme, which enables UK students and recent graduates to work overseas in any of over 120 AIESEC member countries and raises placements for foreign students and graduates to gain experience with UK companies. Trainees are selected for their technical suitability and their ability to represent AIESEC and the UK favourably, and to learn through exposure to another culture. These students go abroad to take up traineeships in management, technical, development and educational areas.

  2. The Access Tier 5 (AT5) programme AIESEC (UK) holds Government Authorised Exchange (“GAE”) status from the Department for Business, Energy and Industrial Strategy (BEIS) which enables AIESEC (UK) to act as the sponsoring body for students and facilitate the sourcing of top talent for short term employment on internship roles with UK companies. These placements further the professional education and cultural awareness of the students who participate.

The Trustees have paid due regard to guidance on public benefit issued by the Charity Commission in deciding what activities the charity should undertake.

Operating Context – Covid-19

Covid 19 continued to disrupt the activities of the organisation throughout the year. A combination of restrictions including national lockdowns, travel limitations, universities operating virtually and mandates to work from home, meant that the charity’s operations were reduced at a local level within universities and at a national level. The organisation continued to monitor and manage any negative impacts while investing in new programmes to diversify its offering.

AIESEC (UK) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

Performance and Achievements

Membership and leadership development:

Recruitment of new volunteer members was, for the first time, done completely virtually due to covid 19 restrictions limiting activities on campus. We received 336 applications to become volunteer members and recruited 210 new members.

Educational conferences and seminars were held to advance members’ leadership and management skills. All the conferences and events were delivered virtually due to Covid 19 restrictions. The conferences held and attendance achieved this year were:

Youth Speak Forum – this year, AIESEC (UK) also relaunched the Youth Speak Forum (YSF). Organised by members, this external event brings together youth and subject matter experts to try and tackle some of the world’s most pressing social and environmental issues. The event was held virtually due to Covid-19 restrictions and engaged over 250 young people. This was sponsored by a number of companies and institutions, including TikTok, UCAS, Arrival, Middlesex University and Climate Partner.

Exchange:

The Exchange Programme was suspended for the majority of the financial year due to Covid-19 and the uncertainty around international travel. Once travel was possible again, the UK governments traffic light system also significantly limited the number of countries the charity was able to work with. For the year ended 31 July 2021, AIESEC (UK) facilitated 10 students and recent graduates to travel abroad and brought 9 international students and recent graduates to work in partner organisations in the UK, resulting in a total number of 19 exchanges (2020: 115). A total of 12 interns also extended their internships in the UK.

Access Tier 5:

As a Tier 5 Government Authorised Exchange body, in the period to 31 July 2021, AIESEC (UK) has sponsored 724 people (2020: 459) from around the world for short-term employment with UK companies.

Volunteers:

The National Executive and national office staff are the only salaried staff working in AIESEC (UK) Limited. Occasionally fulltime volunteers managing projects are paid a modest daily allowance to avoid financially disadvantaging them. Volunteers who are entirely unpaid, but highly motivated by the objectives of the organisation perform most of the work done by LCs. We anticipate that this will continue well into the future.

During the financial year, AIESEC (UK) received in-kind support (e.g., pro-bono practical advice on organising events, guidance in relation to team building, working remotely, etc.) primarily from alumni working at its corporate sponsors. However, this support is purely ad-hoc in nature and has required very minimal involvement from each of the individual corporate sponsors. This support is not considered material from an overall organisation perspective.

Principal risks and uncertainties

The Trustees have assessed the major risks to which the charity is exposed and are comfortable that systems are in place to mitigate exposure to the major risks.

AIESEC (UK) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

The principal risks and uncertainties that the trustees consider that the charity faces are set out below, along with the trustees’ plans and strategies for managing them:

Financial review and reserves policy

The charity's activities generated a surplus for the year amounting to £216,892 (2020: £156,045 deficit).

Despite COVID restricting key parts of the Charity’s operations, the organisation has posted a healthy surplus for the financial year ending 31 July 2021. The main reasons for this include:

The trustees monitored the organisations’ management accounts on a regular basis and as part of the monthly Trustee meetings attended by the National Executive. It became apparent in the second half of the financial year that revenues were to be significantly higher than budgeted. The organisation continued to monitor the external environment and managed costs proactively to make sure there were no significant increases in spending, allowing the organisation to rebuild reserves and ensure additional protection against any new Covid-19 restrictions in the future.

As at 31 July 2021, the charity had net assets of £600,717 (2020: £383,825). This comprises restricted funds of £54,730 (2020: £54,730) and unrestricted funds of £545,987 (2020: £329,095).

The charity raises funds from corporate partners primarily through sponsorship. It does not actively raise funds from the general public.

The charity's funds have been applied in financing the projects outlined above and in maintaining reserves to ensure the organisation is sustainable in the short and long term. The charity's income tends to fluctuate, and this has caused considerable curtailment of the operations during past economic downturns. To mitigate/ minimise this risk, the trustees monitor the level of reserves carefully.

AIESEC (UK) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

It is policy that unrestricted funds which have not been designated for a specific use should be maintained to ensure the charity is able to sustain its operations in the short-term. During the year, the charity consistently maintained unrestricted funds of at least £300,000 which is more than six months’ worth of expenditure.

Structure, governance and management

AIESEC (UK) Limited ("the charity" / "AIESEC (UK)") is a registered charity and is constituted as a company limited by guarantee. Its objects and powers and other constitutional matters are dealt with in its Memorandum and Articles of Association.

The Directors of the charity are its Trustees for the purpose of charity law and throughout this report are collectively referred to as "the Trustees". The Board of Trustees is non-executive and meets monthly to take strategic and other material decisions.

The National Executive is a team of recent graduates elected and selected by representatives of the members in accordance with the Articles of Association, the Trustees and the current National Executive. They are in office for one year and the Trustees delegate day-to-day operations to them.

The Trustees, who are also the Directors for the purpose of company law, who served during the year, and to the date of this report were:

I Priestley A Sia Lu P Vivash (Resigned 9 August 2021) C Galindo R Cook J Ryan C Raportaru S Shah C Moore L Archer (Appointed 12 October 2020)

New Trustees are selected by existing Trustees and invited to join the board. The new Trustees are appointed by a majority vote at a quorate Board meeting. All new Trustees are given a thorough briefing on how the charity operates by the existing Trustees. Most new Trustees have had previous involvement with the organisation.

The National Executive co-ordinates the strategy and support activities run by the Local Committees (“LCs”), which are structured as student societies at the relevant universities. AIESEC (UK) does not guarantee any liabilities of the LC's.

AIESEC has branches in over 120 countries: some are also constituted as limited companies. All of these, including the international secretariat AIESEC International in Montreal (Canada), which co-ordinates international activities, bear the name AIESEC. However, AIESEC (UK) has no legal relationship to any of these.

AIESEC Foundation, a registered charity (Registered Charity Number 1095750), was incorporated as a company limited by guarantee on 22 November 2002 (registered company number: 04598851). The AIESEC Foundation’s objective is to support, fundraise and safeguard the activities of AIESEC in the UK and overseas. Although a separate legal entity, the Foundation supports projects that benefit AIESEC in the UK and overseas.

Remuneration of key management personnel

AIESEC (UK) employ a National Executive of recent graduates along with an office manager, and a sales and compliance team dedicated to the Access Tier 5 scheme.

In the year ended 31 July 2021 there were 10 (2020: 14) salaried employees. The President of the National Executive is considered to be key management personnel. The remuneration of the National Executive President is set by the Trustees

AIESEC (UK) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

as a fixed salary towards the lower end of the range provided by large employers to graduates entering management training schemes.

Future plans

Following the end of the year there have been no significant changes to the aims, objectives or activities of the charity. The size of the salaried team will be maintained, and alternative forms of revenue continue to be explored due to the impact Covid 19 has had on the charity’s finances. The National Executive has developed plans to meet the aims and objectives of the charity and these have been reviewed and agreed with the Trustees.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Auditor

Ratification of these financial statements and the re-appointment of HW Fisher LLP as auditors for the ensuing year will be proposed at our Annual General Meeting.

On behalf of the Board of Trustees

S Shah Trustee

Dated: 12/01/2022

A.I.E.S.E.C. (U.K.) LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2021

The Trustees, who are also the directors of A.I.E.S.E.C. (U.K.) Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

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

A.I.E.S.E.C. (U.K.) LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF A.I.E.S.E.C. (U.K.) LIMITED

Opinion

We have audited the financial statements of A.I.E.S.E.C. (U.K.) Limited (the ‘charity’) for the year ended 31 July 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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 d irectors ' r eport included within the Trustees' r eport.

A.I.E.S.E.C. (U.K.) LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF A.I.E.S.E.C. (U.K.) LIMITED

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 s tatement of Trustees' r esponsibilities, 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 .

As part of our planning process:

A.I.E.S.E.C. (U.K.) LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF A.I.E.S.E.C. (U.K.) LIMITED

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor ' s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Rich (Senior Statutory Auditor) for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom .........................

A.I.E.S.E.C. (U.K.) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
-
-
Incoming resources from
charitable activities
4
556,219
-
Investments
5
2,902
-
Other income
6
3,425
-
Total income
562,546
-
Expenditure on:
Raising funds
7
48,418
-
Charitable activities
8
297,236
-
Total resources expended
345,654
-
Gross transfers between
funds
-
-
Net income/(expenditure) for the
year/
Net movement in funds
216,892
-
Fund balances at 1 August
2020
329,095
54,730
Fund balances at 31 July
2021
545,987
54,730		 Total
Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
-
35,481
-
35,481
556,219
513,241
-
513,241
2,902
722
-
722
3,425
1,326
-
1,326
562,546
550,770
-
550,770
48,418
85,942
-
85,942
297,236
608,820
12,053
620,873
345,654
694,762
12,053
706,815
-
(5,078)
5,078
-
216,892
(149,070)
(6,975)
(156,045)
383,825
478,165
61,705
539,870
600,717
329,095
54,730
383,825

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

A.I.E.S.E.C. (U.K.) LIMITED

BALANCE SHEET

AS AT 31 JULY 2021

2021
Notes
£
Fixed assets
Intangible assets
12
Tangible assets
13
Current assets
Debtors
14
97,778
Cash at bank and in hand
655,198
752,976
Creditors: amounts falling due within one year
16
(109,381)
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
17
Net assets
Income funds
Restricted funds
19
Unrestricted funds

12/01/2022		 £
-
149
149
643,595
643,744
(43,027)
600,717
54,730
545,987
600,717		 2020
£
43,676
382,667
426,343
(42,787)		 £
-
269
269
383,556
383,825
-
383,825
54,730
329,095
383,825

The financial statements were approved by the Trustees on .........................

.............................. S Shah

Trustee

Company Registration No. 01206976

A.I.E.S.E.C. (U.K.) LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing activities
Financing activities
Proceeds of new bank loans
Net cash generated from/(used in) financing
activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
-
2,902
43,027		 £
226,602
2,902
43,027
272,531
382,667
655,198		 2020
£
(358)
722
-		 £
(60,998)
364
-
(60,634)
443,301
382,667

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

Charity information

A.I.E.S.E.C. (U.K.) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 1e Mentmore Terrace, London, England, E8 3DQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum & Articles of Association, the Companies Act 2006 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)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

As stated in the Trustees' Report, the Trustees have considered the effect of the Covid-19 outbreak on the Charity. Covid-19 continued to disrupt the activities of the charity throughout the year, particularly in relation to Exchange Scheme activities. However the charity had a very successful year in relation to its AT5 activities, which helped to offset the fall in income from Exchange Scheme. In addition to this, the charity took steps to reduce costs where possible, and was successful in reducing expenditure significantly in the year. Based on the charity's cash reserves and financial projections, the Trustees have a reasonable expectation that the Charity can continue as a going concern for the foreseeable future and thus the financial statements have been prepared on the going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds: funds subject to specific conditions as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been included under expenses categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Support costs are those costs incurred in support of achieving the objectives of the c harity . Governance costs are those incurred in compliance with constitutional and statutory requirements.

1.6 Intangible fixed assets

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

(Continued)

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives , which in all cases is estimated at 3 years.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, which in all cases is estimated at 3 years.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.8 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 .

1.9 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.

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

1.11 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.

1.12 Retirement benefits

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

1.13 Government grant

Government grants are accounted for under the accrual model and are recognised at the fair value of the amount received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants are being received under the Coronavirus Job Retention Scheme designed to compensate for staff costs . Amounts received or receivable are recognised in the statement of financial activities over the same period as the costs to which they relate.

2 Critical accounting estimates and judgements

The Trustees are satisfied that there are no material estimates or judgements in the financial statements.

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

3 Donations and legacies

Total Unrestricted
funds
2021 2020
£ £
Government grants - 35,481

The charity received a grant of nil (2020: £35,481) in relation to the government Coronavirus Job Retention Scheme (CJRS) in the year.

4 Incoming resources from charitable activities

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fees from Exchange Scheme 21,547 132,443
Fees from Access Tier 5 programme 534,672 380,798
556,219 513,241

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 2,902 722
6 Other income
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Other income 3,425 1,326

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

7 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising and publicity
Other fundraising costs 216 216
Staff costs 35,022 52,139
Support costs 11,420 37,313
Governance costs 1,760 1,277
48,418 85,942

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

8 Charitable activities

Exchange
scheme
2021
£
Staff costs
55,452
Marketing
1,345
Conferences
-
Other
929
Exchange fees
2,479
60,205
Share of support costs (see note 9)
16,794
Share of governance costs (see note 9)
2,589
79,588
Analysis by fund
Unrestricted funds
79,588
Restricted funds
-		 Access
Tier 5
Leadership
development
2021
2021
£
£
91,881
55,452
-
764
-
3,060
19,969
1,555
-
-
111,850
60,831
22,167
16,794
3,417
2,589
137,434
80,214
137,434
80,214
-
-		 Total
2021
Exchange
scheme
2020
£
£
202,785
91,089
2,109
15,880
3,060
-
22,453
8,550
2,479
10,269
232,886
125,788
55,755
82,017
8,595
3,241
297,236
211,046
297,236
198,993
-
12,053		 Access
Tier 5
Leadership
development
2020
2020
£
£
100,322
82,554
15
3,034
-
52,293
26,854
5,243
-
-
127,191
143,124
82,017
52,191
3,241
2,063
212,449
197,378
212,449
197,378
-
-		 Total
2020
£
273,965
18,929
52,293
40,647
10,269
396,103
216,225
8,545
620,873
608,820
12,053

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

9 Support costs

Support costs
Governance
costs
£
£
Staff costs
39,243
-
Depreciation
120
-
Office
43,474
-
Marketing
160
-
Other
(27,121)
-
Legal and professional
11,299
-
Audit fees
-
8,850
Board Meeting Costs
-
1,505
Board Expenses
-
-
67,175
10,355
Analysed between
Fundraising
11,420
1,760
Charitable activities
55,755
8,595
67,175
10,355		 2021
Support costs
Governance
costs
£
£
£
39,243
40,729
-
120
1,225
-
43,474
70,781
-
160
2,110
-
(27,121)
119,888
-
11,299
13,802
-
8,850
-
4,595
1,505
-
4,990
-
-
237
77,530
248,535
9,822
13,180
32,310
1,277
64,350
216,225
8,545
77,530
248,535
9,822		 2020
£
40,729
1,225
70,781
2,110
119,888
13,802
4,595
4,990
237
258,357
33,587
224,770
258,357

10 Trustees

None of the trustees ( or any persons connected with them) received any remuneration during the year. One trustee w as reimbursed a total of nil (2020: £ 237) for travelling and subsistence.

11 Employees

The average monthly number employees during the year was 10 (2020:14).

Employment costs
Wages and salaries
Social security costs
Pension costs		 2021
£
267,030
6,528
3,492
277,050		 2020
£
364,379
2,454
-
366,833

There were no employees whose annual remuneration was £60,000 or more (2020: none).

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

12 Intangible fixed assets
Website
£
Cost
At 1 August 2020 and 31 July 2021 18,688
Amortisation
At 1 August 2020 and 31 July 2021 18,688
Carrying amount
At 31 July 2020 and 31 July 2021 -
13 Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 August 2020 4,898
At 31 July 2021 4,898
Depreciation and impairment
At 1 August 2020 4,629
Depreciation charged in the year 120
At 31 July 2021 4,749
Carrying amount
At 31 July 2021 149
At 31 July 2020 269
14 Debtors
2021 2020
Amounts falling due within one year: £ £
Trade debtors 87,814 15,890
Other debtors 5,000 20,248
Prepayments and accrued income 4,964 7,538
97,778 43,676

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

15 Loans and overdrafts

Bank loans
Payable after one year		 2021
£
43,027
43,027		 2020
£
-
-

The long-term loan is under the Bounce Back Loan Scheme made available in response to the outbreak of Covid-19. The loan was obtained in July 2020 and is for a period of 72 months with a fixed interest rate of 2.5%. The loan is repayable in 60 consecutive monthly instalments commencing 12 months after the borrowing date.

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
51,166
567
46,423
11,225
109,381		 2020
£
12,241
3,272
21,274
6,000
42,787

17 Creditors: amounts falling due after more than one year

2021 2020
Notes £ £
Bank loans 15 43,027 -

18 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £3,492 (2020 - £-).

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at Resources Transfers Balance at Transfers Balance at
1 August 2019 expended 1 August 2020 31 July 2021
£ £ £ £ £ £
AIESEC (UK) Exchange
Devopment Fund 1,004 - - 1,004 - 1,004
AIESEC (UK) Travel Fund 2,181 (12,053) 5,078 (4,794) 9,794 5,000
AIESEC (UK) LC Development
Fund 1,245 - - 1,245 - 1,245
AIESEC (UK) Conference
Contingency Fund 5,000 - - 5,000 - 5,000
AIESEC (UK) Contingency Fund 52,275 - - 52,275 (9,794) 42,481
61,705 (12,053) 5,078 54,730 - 54,730

Purpose of Restricted Funds

AIESEC (UK) Contingency Fund

In the year to 31 July 2017, a resolution was passed by the members of AIESEC (UK) and ratified by the Trustees of the AIESEC Foundation to transfer the LC Restricted Funds back to AIESEC UK from AIESEC Foundation. This was undertaken on 1 November 2016 with the transfer of £75,237.

AIESEC (UK) Exchange Development Fund

The Fund exists to assist exchange development in local committees, providing subsidies for local committees to work on Exchange during holiday periods, capital for Exchange related projects and money to hold reception events in the UK.

AIESEC (UK) Travel Fund

The Fund exists to provide financial assistance to local volunteers to offset the costs of travel to national and international conferences.

AIESEC (UK) Conference Contingency Fund

This Fund was previously known as the National Support Fund. The Fund exists to bring international trainers to UK conferences and to subsidise training activities at conferences and UK local committees.

AIESEC (UK) Local Committee Development Fund

This Fund exists to provide financial assistance to local committees who demonstrate a need.

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

20
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31 July
2021 are represented by:
Tangible assets
149
-
Current assets/(liabilities)
588,865
54,730
Long term liabilities
(43,027)
-
545,987
54,730		 Total
Unrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
149
269
-
643,595
328,826
54,730
(43,027)
-
-
600,717
329,095
54,730		 Total
2020
£
269
383,556
-
383,825

21 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 39,325 24,081

22 Related party transactions

There were no related party transactions in the year (2020: none).

Remuneration of key management personnel

Key management personnel in the year ended 31 July 2021 comprised the board of Trustees and the AT5 team. Total remuneration paid to key management personnel is shown below. The trustees receive no remuneration.

2021 2020
£ £
Aggregate remuneration 113,311 104,097

A.I.E.S.E.C. (U.K.) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2021

23 Cash generated from operations 2021 2020
£ £
Surplus/(deficit) for the year 216,892 (156,045)
Adjustments for:
Investment income recognised in statement of financial activities (2,902) (722)
Depreciation and impairment of tangible fixed assets 120 1,225
Movements in working capital:
(Increase)/decrease in debtors (54,102) 141,373
Increase/(decrease) in creditors 66,594 (43,140)
(Decrease) in provisions - (3,689)
Cash generated from/(absorbed by) operations 226,602 (60,998)
24 Analysis of changes in net funds
At 1 August 2020 Cash flows At 31 July 2021
£ £ £
Cash at bank and in hand 382,667 272,531 655,198
Loans falling due after more than one year - (43,027) (43,027)
382,667 229,504 612,171