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2023-12-31-accounts

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

Registered number: 00604757 Charity number: 279567

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 12
Independent Auditors' Report on the Financial Statements 13 - 16
Consolidated Statement of Financial Activities 17
Consolidated Balance Sheet 18 - 19
Charity Balance Sheet 20 - 21
Consolidated Statement of Cash Flows 22
Notes to the Financial Statements 23 - 49

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees Christopher Mark Sanders, Chair
John Bryden
Sarah Burles (appointed 9 January 2023)
David Ralph Martin
Sandra Toni Moses
Christine Anne Berry
Paul Jackson (appointed 28 July 2023)
Peter McPartland (appointed 29 July 2023)
Lesley Margaret Thompson (appointed 29 July 2023)
Honorary President
Ann Barrett, Professor Emeritus UEA, OBE, FMed Sci, MD, FRCP, FRCR
Company registered
number
00604757
Charity registered
number
279567
Registered office
Stapleford Granary
Bury Road
Stapleford
CB22 5BP
Acting General Secretary Christine Anne Berry (appointed 24 March 2023)
General Secretary
Paul B Barnes, MSc, PhD (resigned 24 March 2023)
Independent auditors
Peters Elworthy & Moore
Chartered Accountants
Salisbury House
Station Road
Cambridge
CB1 2LA
Bankers
The Royal Bank of Scotland plc
82-88 Hills Road
Cambridge
CB2 1LG
Stockbrokers
Cantab Asset Management Limited
50 Station Road
Cambridge
CB1 2JH

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Association for Cultural Exchange Limited (the Group/the Charity) for the year ended 31 December 2023. The trustees confirm that the Annual Report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP) second edition - October 2019 (effective 1 January 2019), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the Charity qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing aims and objectives and planning future activities and setting the grant-making policy for the year.

OBJECTIVES AND ACTIVITIES

The Association for Cultural Exchange (Registered charity 279567) is established to advance the education of the people of the United Kingdom and elsewhere in the fields of general history, music, art, architecture and design, archaeology, literature, environmental studies and the theory of education.

In 2023, the Charity marked its 65th anniversary, noting that the founder’s vision to foster cultural understanding through education is as relevant today as it was when the Charity was created in 1958.

Our mission statement:

' Our "culturally curious" approach to all we do underpins our aim to better understand, respect and value one another .'

The Charity fulfils its charitable objectives and delivers public benefit in the following ways.

Culturally curious travel

Through our trading subsidiary, ACE Cultural Tours Limited, we provide expert-led, cultural tours to all parts of the UK and throughout the world on a wide range of cultural subjects. Our tours are curated to ensure a high level of specialist content, combined with opportunities to explore destinations and venues that, in many cases, are not publicly accessible.

As members of the Association of Independent Tour Operators (AITO), we subscribe to AITO’s code of ethics for sustainable tourism. Our tours respect the history and heritage of the places we visit and the fragility of many of the natural habitats.

An arts and study centre for the culturally curious

The Charity’s home base is at Stapleford Granary, a beautifully restored complex of 19th-century farm buildings on the outskirts of Cambridge. We have a 100-seat concert hall, gallery spaces, creative studios, education rooms and, in the summer, a stretch tent in the courtyard provides a magnificent setting for outdoor concerts and events.

The artistic and creative programming was significantly expanded during 2023, building on the success of 2022. Audience numbers increased substantially across the board, with events frequently selling out. Our strong 'Culturally Curious' brand encapsulates our charitable aim to embed education in all that we do.

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

' How does an arts centre educate...? When Philip Barnes set up his adult education study tours he created a peripatetic progressive model of education, furthering a curiosity for culture and lifelong learning. At Stapleford Granary we have the opportunity to imagine what this model would be like in a fixed location for a new generation and a wide demographic. While ACE Cultural Tours takes travellers around the world to unknown places to gain cultural experiences, we can use the spaces and the environment around us here at Stapleford Granary to display, curate and tell stories about art, powerfully introducing elements of surprise into familiar settings. '

Kate Romano, co-Artistic Director and CEO, Stapleford Granary 2023.

Following the launch of our café at Stapleford Granary in 2022, we saw a very significant increase in the volume of visitors to the site in 2023. The Granary has firmly established its reputation as a vibrant cultural destination for the neighbouring community and for art-lovers from further afield.

Summary of key achievements and delivery of public benefit in 2023

The underlying principle of all the Charity’s activities, whether provided through ACE Cultural Tours Limited or at Stapleford Granary, is to demonstrate the importance of cultural education in transforming and enhancing people’s lives.

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

At Stapleford Granary, we have two main areas of activity:

While our aim is to generate revenue, where appropriate, from our activities, this is carefully balanced with the wish to ensure Stapleford Granary is accessible to as wide a community as possible. For example, our art exhibitions (and artists’ talks) are free to all visitors. Feedback confirms the value placed on this free access as an opportunity for visitors, who might not usually visit an arts centre, to enjoy cultural experiences that may not otherwise be available to them.

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Education

During 2023, we recognised the reduction of cultural-related activities on the school curriculum. Widespread cuts in the education budget have been at the expense of introducing children, at an early age, to cultural experiences that could be transformative for them. It led us to consider what an arts centre could provide in response to this.

' A cultural setting should be a place to expect rare experiences and prepare us to be ready for them, to give us the feeling that beyond the entrances and stairwells marvellous things are waiting for us .' Bruno Bettelheim, Children, Curiosity & Museums (1980)

Small Grains (Launched March 2023)

Small Grains is a new pilot education programme developed by the Charity for Key Stage 1 & 2 students at Stapleford Primary School. This is a single form entry primary school with 214 children on the roll, located less than half a mile from the Granary. Small Grains is a responsive programme, pioneered by Stapleford Granary’s co-Artistic Director and CEO, in conjunction with the school’s head teacher. The programme is inspired by and connected to the ever-changing cultural life of the Granary, with a particular focus on visual art, poetry and live music. It explores ways of making culture accessible and inspirational to young children by exposing them to high-quality music and art, giving them space and scope to respond in their own way and providing opportunities to learn and create.

The name of the programme references the historical function of the Granary (a place where ‘small grains’ were held and cared for) with a nod to ‘small gains theory’ (small improvements across a number of different areas lead to more significant and noticeable gains overall). Through the initial pilot year, we hoped to learn how regular cultural interaction with Stapleford Granary benefits students at the school in different ways.

What happens when an arts centre and a primary school work together?

'This simple question is at the heart of the project. Each week, classes walk from the school to the Granary to experience artistic, creative and inspirational activities connected to the main cultural programme at the Granary. These include watching performances, listening to live music, singing, playing rhythm games, meeting artists, looking at exhibitions, painting, sketching, printing and making things from natural products. We see between one and five classes each week. Each year group has an individual project. Children take part and learn according to their own pace, interest and ability.

Initial assessment of the impact of the pilot programme, since its launch in March 2023 has shown it to be transformative in terms of attendance (highest attendance day on ‘a Granary day’), behaviours and a new positive can-do approach to art in children, teachers and carers. The school has reported “more singing, more animated discussion about art and music, far more pride in creative work.” This impact is noted across the school with teachers feeling more confident to build arts teaching into their lessons. It is also felt across the wider village community with many people discovering Stapleford Granary and its work through their children and grandchildren. Members of the public often coordinate their visits to align with class visits (which take place in the public spaces) and we hear reports of parents choosing Stapleford Primary School for their children because of Small Grains.'

Kate Romano, Co-Artistic Director and CEO, Stapleford Granary 2023.

The pilot scheme runs to May 2024 and the programme is continually reviewed, researched and documented for future further impact assessment.

Discovery Days, school trips, art trails and Crafty Thursdays

In tandem with our Small Grains project, we run children’s activity programmes throughout the year to encourage children to experience art and culture in its many forms. During 2023, these included:

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Pop-up Dinosaur Discovery Days (240 tickets sold out) held in our Orchard Room provided children with a hands-on and fully interactive dinosaur exhibition. Consisting of fossils, bones, shells, crystals, minerals and dinosaur footprints, children were able to examine specimens under a petrological microscope, find out what a geologist does and how to be a dinosaur detective.

Further pop-up Discovery Days (240 tickets sold out) featured strange and wonderful musical instruments to pluck, strum and strike, including a wide range of pitched percussion, bells, a deconstructed piano, folk harp, dulcimer, historical toy pianos and music boxes. There was a strong focus on the mechanics of sound production and hands-on exploration.

' The whole event was put together so beautifully and it was clear you’d really thought about the audience and engaging small people. It was just brilliantly done. '

Parent feedback, Discovery Day 2023

We presented six Crafty Thursdays (356 participants) which were drop-in days held in the school holidays, with activities including mask-making, autumn lanterns, seed planting, pebble painting, paper folding and crafts using things found in the garden.

In the run-up to Christmas, as part of our Advent programme, a Fairy Tale Trail, held over two days, welcomed 280 participants. This was a bespoke trail of 12 hand-crafted ‘model box’ fairy tale scenes throughout the Granary. They combined a light-touch approach to the tangled complex history of fairy tales with a treasure hunt.

' Simply magical … inspiring in its timeless content as much as the creativity that went into making it. It appealed to us all from grandchildren to grandparents. '

Visitor feedback December 2023

Our unique Storytelling Sundays and children’s’ theatre events established a new core audience for children’s theatre selling 98% of the available tickets. Two shows, written specifically for Stapleford Granary by Kate Romano, were further developed into educational school trips.

The half-term week in February 2023 featured 'Mythical Creatures', inspired by Sadie Brockbank’s fantastical sculptures on show in our gallery space at that time. This resulted in a community-made 'Cabinet of Curiosities’, and a hugely popular art trail around the site. We now create art trails for every exhibition. The ‘Blue Dog’ sculpture that featured in Sadie Brockbank’s exhibition has become an important metaphor for what it means to be ‘culturally curious’ for the children of Stapleford Primary School.

Other school trips for Milton Road Primary and Linton Primary schools focused on nature, patterns and shadows inspired by Ian Turnock’s sculptures.

' We had high hopes for this trip and we were not disappointed. We loved how much was fitted into the visit … the children were motivated, excited and we heard them talking about it afterwards to parents and carers, sharing all they had learned. '

Milton Road Primary School, 2023

Reflecting on 2023

In completing this report, to accompany the Charity’s financial statements for 2023, it is impossible to overlook the progress the Charity has made since our last ‘normal’ pre-pandemic year in 2019. We had then achieved our best-ever year and were subsequently plunged into survival mode in 2020 and 2021. We initially emerged very tentatively from the shut-down of the travel sector and the lock-down of other activities previously taken for granted. In 2022, we allowed ourselves to believe that we had come through the worst and our report, 12 months ago, acknowledged the efforts of our entire team to pull us through the months of uncertainty and anxiety.

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2023 has felt completely different. Not only has it been our 65th anniversary year as a charity, but we have also undoubtedly made further progress in our vision of fostering cultural understanding through education.

This is largely thanks to the outstanding and dedicated work of all our staff to whom the trustees wish to convey their gratitude. As noted elsewhere in this report, the excellence and expertise of our Tours’ team (both inhouse and our freelance tour directors and managers) has been deservedly recognised once again by receipt of awards from the British Travel Association and from the customer review platform feefo. Their willingness always to go the extra mile for our travellers is demonstrated daily by the feedback and plaudits they receive.

The Stapleford Granary team is led by Kate Romano.. She is supported by a small team who, together, achieve the delivery of an astonishing range of events and activities, created with imagination, flair and an unfailing eye for ensuring the very best cultural experience for each and every visitor. From the warm welcome from our café staff, to the dedication of our volunteer force, every member of the Granary team has contributed hugely to the success of the year, for which the trustees' pass on their thanks.

Looking forward to 2024

The trustees and executive team consider that the current strategic direction of the Charity (and its trading subsidiaries) is fulfilling the Charity’s objectives. Therefore, the focus for 2024 is to continue to build on the reputation the Charity has established in cultural education and understanding. As at the date of this report, the trustees have agreed the following priorities:

Grant Making Policy

Over the period of the pandemic and the post-pandemic focus on re-establishing the Charity’s core activities, the trustees acknowledge that grant-making has ceased to be one of those core activities. Only one grant was made in 2023 (to the Spanish Ornithological Society). During 2024, the trustees intend to revisit the grants and bursaries scheme as indicated above.

Investment Powers and Policy

Under the Memorandum and Articles of Association, the Charity has the freedom to invest in a wide variety of assets. During 2023, the trustees created a finance and investment sub-committee whose remit includes the management of the Charity’s investment portfolio. The sub-committee has formal delegated authority from the trustee board. It has reviewed the arrangements with the Charity’s external investment managers advisers and has revised the Charity’s investment policy statement.

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The Charity has invested in its two trading subsidiaries and more about this is covered below.

Trading Subsidiaries

The Charity owns a trading subsidiary, ACE Cultural Tours Limited (Tours). Tours previously owned a subsidiary, ACE Cultural Tours (Transport) Limited. This latter company was required for technical reasons which are no longer relevant since the United Kingdom has left the European Union. It was therefore formally dissolved on 12th December 2023.

Tours provides travel services covering a range of cultural and educational topics which support the objectives of the Charity. It also provides some grants to people, places and events connected with its travel services and aligned with the parent Charity’s objectives. Business volumes for 2023 have recovered to 90% of pre-Covid levels. In 2023 tours were arranged to 26 counties from Albania to Algeria, the USA to Uzbekistan. These were led by 39 expert Tour Directors with logistical support provided by 13 skilled Tour Managers. New itineraries included the Polish Arts & Crafts movement and an exploration of the Swiss mountain landscapes which inspired so many artists. A long-awaited return to Japan was also possible after a few years’ absence. These sat alongside perennial favourites such as the sumptuous Douro River Cruise and the Byzantine mosaics of Ravenna.

The customer base of Tours remains loyal with a high percentage of repeat bookings. A continued focus on customer service has been externally acknowledged by the receipt of the British Travel Awards 'Best Small Travel Company for Arts & Culture Holidays 2023'. This is the second successive year the company has received this gold award. The company also received feefo’s 'Platinum Trusted Service Award' for 2023 and 2024 based on feedback provided by customers.

Stapleford Granary Limited is also wholly owned by the Charity. It operates the café as well as co-ordinating commercial hires and providing catering services for on-site activities. It has been instrumental in increasing footfall to the Stapleford Granary site to 60,000 over the 2023 year, which, in turn, has encouraged interest in and support for our charitable activities.

Both the trading subsidiaries mentioned will donate profits that are not required to support the development of their own activities to the parent Charity. They also help in their own right to further the purpose of the Charity as stated in its objectives. In accordance with the Charity Commission’s guide to investing charity money (CC14), the trustees therefore consider both subsidiaries to be social investments.

FINANCIAL REVIEW

The statement of financial activities for the 12 months to 31 December 2023 shows the total income increased to £6,372,365 (2022: £4,588,149).

The Charity continues to hold investments in government securities and shares with a market value of £2,088,769 (2022: £2,094,732).

Total income of ACE Cultural Tours Limited for the 12 months to 31 December 2023 rose to £5,650,826 (2022: £4,255,528). The profit for the year after tax was £129,169 (2022: £507,225). No gift aid was donated to the Charity in 2023 (2022: £NIL) as a result of efforts to increase reserves in the subsidiary and build it's resilience. In the course of 2020 and 2021 the Charity provided loans totalling £1m on commercial term to ACE Cultural Tours to provide working capital during the Covid period. During 2023, capital of £500,000 was repaid by ACE Cultural Tours to the Charity. The net assets of ACE Cultural Tours Limited at the end of the year were £567,244 (2022: £438,075).

Total income of Stapleford Granary Limited for the 12 months to 31 December 2023 rose to £281,671 (2022: £84,847 for 13 months). The net liabilities of the company were £15,442 (2022: £20,650).

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Two units were let in the year which has resulted in them being transferred from fixed assets to investment properties.

The net assets of the Group as shown in the balance sheet as at 31 December 2023 were £7,236,018 (2022: £7,096,192), an increase of £139,826.

Funds

The net assets are allocated to a Property Fund and a Subsidiary Support Fund. The balance is the Charity’s free reserves.

Property Fund

The Property Fund represents the net book value of the Charity’s freehold property, which comprises a distinguished range of former farm buildings at Stapleford Granary. The buildings have been converted to create a centre for the arts, to provide office and workshop accommodation and spaces for meetings and education.

Subsidiary Support Fund

This fund represents the carrying value of long-term loans made to its subsidiary ACE Cultural Tours Limited which is not freely available to the Charity. The loan ensures the long-term security and return to pre-pandemic levels of the subsidiary’s activities.

Restricted funds

This fund contains the legacy from the estate of Beryl Wallis. This legacy is to be used in the area of classical music.

General funds

The general fund represents the amount of unrestricted funds available to the Charity.

Reserves policy

The policy of the Charity is to maintain reserves in order to provide for spending on the Charity’s direct services, for strategic objectives, to provide some protection from unforeseen events and for capital accumulation. The trustees have reviewed the Charity’s reserves policy and have resolved to retain as designated funds amounts representing those assets set aside for specific purposes with the balance as an unrestricted general reserve.

The Charity does not receive significant external funding and only by accumulation will it be possible to provide sufficient reserves to ensure the long-term success and expansion of the Charity’s direct services and strategic objectives. Furthermore, the financial impact of Covid-19 on the Charity’s trading subsidiary ACE Cultural Tours has been substantial. Given normal trading conditions this subsidiary gift-aids profit to the Charity which provides much of the liquidity to support public benefit projects. The trustees aim to maintain free reserves at a level and with such liquidity as to enable support to be provided to all elements of the Group for a minimum of 12 months. The trustees forecast this to be in the region at least £1,000,000, but that it is desirable to hold £2,000,000 in order to provide significant resilience against most risks.

The Charity previously designated a Capital Fund, representing investments held to generate income and capital growth to support the long-term sustainability of the Charity. In line with the increased reserves policy above, these funds have been undesignated and the Trustees acknowledge these funds may need to be drawn upon in the future. They hope any surplus funds in future years may allow them to re-establish a Capital Fund.

At the year end the Charity had total funds of £7,236,018 including restricted funds of £206,389. Of the £7,029,629 unrestricted funds, the trustees have designated the Property Fund at £3,909,904 and the subsidiary support fund at £500,000.

After taking into account the subsidiaries' retained earnings and capital of £551,803, the Group and Charity's free reserves as of 31 December 2023 are £2,067,922 (2022: £(295,594)) which is in line with the upper target

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

of £2,000,000. The subsidiary support fund has been reduced by £500,000, and it is forecast to be reduced to £0 by early 2025. This will contribute to the improvement of free reserves, along with an expected resumption of gift-aid payments from the subsidiary up to the Charity.

STRUCTURE GOVERNANCE AND MANAGEMENT

Constitution

The Charity is a company limited by guarantee and is governed by the revised Memorandum and Articles of Association which were adopted on 29 January 2013. It is registered as an educational charity with the Charity Commission, number 279567.

Method of appointment or election of trustees

As set out in the Articles of Association, the chair of the board of trustees is elected from and by the directors (trustees). New trustees may be nominated by members of the existing board. In appointing new trustees, the board has regard to the range of skills required by the Charity.

During 2023, following a formal recruitment process, four new trustees were elected to the board at the AGM on 25 July 2023.

Policies adopted for the induction and training of trustees

Prior to their proposed election to the board, prospective trustees have detailed discussions with the chair and the general secretary to explain and understand the constitution of the Charity and its subsidiaries. They are introduced to other trustees and to relevant members of the executive team. Where appropriate, they spend time with the head of finance to understand the financial model and associated financial policies. Prospective candidates are directed specifically to all Charity Commission Guidance relevant to new trustees and are given copies of the Charity’s governing documents. Prior to election, each prospective trustee attends at least one trustee meeting as an observer.

Prospective trustees are selected on the basis on their past experience of working on a charitable or business board and in respect of the specific skills they will bring to the Charity’s governance and leadership. Regular updates on changes to charity law/Charity Commission Guidance are provided to trustees.

Pay policies for senior staff

The Charity considers its key management personnel comprise the trustees, the CEO (and co-Artistic Director) of Stapleford Granary, and the general secretary. The key management personnel of the Group comprise those of the Charity and the directors of the subsidiaries ACE Cultural Tours Limited and Stapleford Granary Limited. They are in charge of directing and controlling the Group and running and operating the Group on a day-to-day basis. All trustees give their time for governance freely. Three received remuneration in the year in respect of tour directors’ fees. Subsidiary directors are either employed by the company or self-employed. Details of the directors’ expenses and related party transactions are disclosed in the notes to the accounts.

The pay of the subsidiary directors is reviewed annually by the trustees. Salaries are periodically benchmarked to ensure that the remuneration set is fair and in line with that generally paid for similar roles.

In March 2023, following the retirement of Paul Barnes as general secretary of the Charity, Christine Berry was appointed part-time on an interim basis of 12 months, to the general secretary role. Her role is not remunerated and she continues to be a member of the trustee board.

Organisational structure and decision making

The Association for Cultural Exchange is governed by the trustees whose names are given on page 1. The board of trustees, which can have up to 10 members plus the general secretary, governs the Charity. The board typically meets four to six times per year. The general secretary is appointed by the trustees to manage the day-to-day operations of the Charity, in conjunction with other members of the senior team.

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Risk management

During 2023 the trustees and management team undertook a comprehensive risk analysis and are satisfied that appropriate measures have been taken to mitigate those risks as far as possible. Emergency procedures (including first aid training) and contingency plans have been improved. The trustees and management team recognise the inherent volatility of cultural travel and its potential impact on the profitability of the Charity’s subsidiary, ACE Cultural Tours Limited. These include, among others, changes to exchange rates, rising travel costs, geo-political issues and environmental concerns. At Stapleford Granary the health and safety of staff, performance artists and the general public on the site is a key risk issue.

A key element of managing financial risk for the Group is the setting of a reserves policy which now forms part of the delegated remit of the finance and investment committee. The updated Reserves Policy was approved by trustees at their meeting on 22 November 2023.

Information on fund raising practices

The Charity does not currently rely on fund raising as a major source of income and nor does it employ or engage professional fund raisers. We do, however, engage with interested parties who have the capacity to support our work at significant levels, either in the form of donations or legacies.

The Charity does not currently receive funding from, or make applications to, other trusts and foundations, nor does it receive public subsidies. This may change in future years.

Should fund-raising activities increase in the future, the Charity is committed to avoiding any intrusive fund raising approaches and would never apply undue pressure to donate.

TRUSTEES' RESPONSIBILITIES STATEMENT

The trustees (who are also directors of The Association for Cultural Exchange Limited for the purposes 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Parent Charity and the Group and of the incoming resources and application of resources are included in the income and expenditure of the Group for that period. In preparing these financial statements, the trustees are required to:

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

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the persons who are trustees at the time when this Report is approved has confirmed that:

Approved by order of the members of the Board of trustees and signed on their behalf by:

Christopher Mark Sanders Trustee

Date: 17 June 2024

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED

OPINION

We have audited the financial statements of The Association for Cultural Exchange Limited (the 'parent charitable company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent charitable company'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.

Page 13

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 14

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (CONTINUED)

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITORS' 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 Auditors' 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:

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:

Page 15

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (CONTINUED)

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 non-compliance. 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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Hewett (Senior Statutory Auditor) for and on behalf of Peters Elworthy & Moore Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA

Date: 17 June 2024

Page 16

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
Trading activities
6
Investments
7
TOTAL INCOME
EXPENDITURE ON:
Raising funds:
8,9
Trading activities
Investment management
Charitable activities
TOTAL EXPENDITURE
NET (EXPENDITURE)/INCOME
BEFORE NET GAINS/(LOSSES)
ON INVESTMENTS
Net gains/(losses) on investments
NET (EXPENDITURE)/INCOME
BEFORE TAXATION
Taxation
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2023
£
3,286
95,117
5,932,497
135,076
6,165,976
5,732,707
20,524
578,057
6,331,288
(165,312)
120,742
(44,570)
(21,993)
(66,563)
7,096,192
(66,563)
7,029,629		 Restricted
funds
2023
£
206,389
-
-
-
206,389
-
-
-
-
206,389
-
206,389
-
206,389
-
206,389
206,389		 Total
funds
2023
£
209,675
95,117
5,932,497
135,076
6,372,365
5,732,707
20,524
578,057
6,331,288
41,077
120,742
161,819
(21,993)
139,826
7,096,192
139,826
7,236,018		 Total
funds
2022
£
14,781
97,740
4,351,384
124,244
4,588,149
3,784,495
22,059
640,890
4,447,444
140,705
(630,259)
(489,554)
-
(489,554)
7,585,746
(489,554)
7,096,192

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 23 to 49 form part of these financial statements.

Page 17

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2023

Note
FIXED ASSETS
Tangible assets
15
Investments
17
Investment property
16
CURRENT ASSETS
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
21
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
23
Unrestricted funds
23
TOTAL FUNDS		 4,593
499,768
2,294,711
2,799,072
(1,583,278)		 2023
£
3,396,373
2,088,769
553,000
6,038,142
1,215,794
7,253,936
(17,918)
7,236,018
206,389
7,029,629
7,236,018		 3,803
360,778
2,079,973
2,444,554
(1,325,004)		 2022
£
3,747,577
2,094,732
161,000
6,003,309
1,119,550
7,122,859
(26,667)
7,096,192
-
7,096,192
7,096,192

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Page 18

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:

Christopher Mark Sanders Trustee

Date: 17 June 2024

The notes on pages 23 to 49 form part of these financial statements.

Page 19

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2023

Note
FIXED ASSETS
Tangible assets
15
Investments
17
Investment property
16
CURRENT ASSETS
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one
year
20
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
23
Unrestricted funds
23
TOTAL FUNDS		 -
660,158
165,141
825,299
(139,756)		 2023
£
3,356,904
2,656,014
553,000
6,565,918
685,543
7,251,461
206,389
7,045,072
7,251,461		 991
1,088,499
49,215
1,138,705
(434,301)		 2022
£
3,709,132
2,532,808
161,000
6,402,940
704,404
7,107,344
-
7,107,344
7,107,344

The Charity's net movement in funds for the year was £14,948 (2022 - £(981,900)).

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements. The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Page 20

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00604757

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:

Christopher Mark Sanders Trustee

Date: 17 June 2024

The notes on pages 23 to 49 form part of these financial statements.

Page 21

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
24
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Proceeds from the sale of intangible assets
Purchase of tangible fixed assets
Net proceeds from investments
NET CASH PROVIDED BY INVESTING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
25		 2023
£
89,176
135,076
250
(20,369)
10,605
125,562
214,738
2,079,973
2,294,711		 2022
£
310,830
124,244
3,385
(135,001)
11,742
4,370
315,200
1,764,773
2,079,973

The notes on pages 23 to 49 form part of these financial statements

Page 22

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. GENERAL INFORMATION

The Charity is a company limited by guarantee. The members of the Charity are the trustees named on page 1 together with one nominated representative of the family of the founder. If the Charity is wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Association for Cultural Exchange Limited meets the definition of a public benefit entity under FRS 102 and the Group is a public benefit group. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 GOING CONCERN

The operations of the Group have recovered significantly during 2023. In particular, the Charity’s travel subsidiary ACE Cultural Tours has returned to profitable trading and has repaid £500,000 of the loan provided by its parent to support its activities during the Covid-19 pandemic.

The Charity continues to provide a small amount of financial support for the café at Stapleford Granary. This activity is ancillary to the objects of the Charity and has been instrumental in attracting increased footfall to the site – and thereby developing engagement with the charitable activities on offer.

The trustees have reviewed budgets for 2024 and outline forecasts to 2026 and are confident that the Group will have sufficient resources to support its public benefit activities and to meet its liabilities as they fall due for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statement.

Page 23

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.3 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

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 Group 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.

Investment income, gains and losses are allocated to the appropriate fund.

2.4 INCOME

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Performance and event income from ticket sales is recognised on the date of the performance. Income received in respect of events taking place in subsequent years is deferred and included within creditors as accruals and deferred income.

Income from the sale of food, beverages and merchandise is recognised at the point of sale.

Tours income is recognised on the date of departure of the relevant tour. Income received in respect of tours taking place in subsequent years is deferred and included within creditors as accruals and deferred income.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. Dividends are recognised once we have been notified by investment advisers that a dividend has been received into the investment portfolio.

Donation income is recognised when received or before receipt if it becomes reasonably certain that the donation will be received and the value of the income can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the Group is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Group has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Group, or the Group is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Other income is recognised when it is received provided that any goods or services that the Group is contracted to supply in respect of such income have been provided.

Page 24

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Trading costs are those incurred by the Group's trading subsidiaries including the provision of cultural tours and the costs of running a café. Costs of generating funds comprise fees paid to investment managers and an element of staff time which is involved in managing investments.

Charitable activities are costs incurred on the Group's educational operations, performances, and events, including support costs and costs relating to the governance of the Charity apportioned to charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the Group and include central costs. Governance costs are those incurred in connection with administration of the Group and compliance with constitutional and statutory requirements.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Irrecoverable VAT is included as an expense within support costs.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Page 25

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold land - Not depreciated
Freehold property - 1% straight line on the buildings element
Plant and machinery - Straight line over 10-15 years
Fixtures and fittings - Straight line over 10 years
Office equipment - Straight line over 3 or 5 years
Musical instruments - Straight line over 25 years

2.7 INVESTMENTS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Investment property is carried at fair value determined annually by the trustees. Fair values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities. Where a property previously held within tangible fixed assets is let to a third party, it is transferred to investment property and revalued.

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 26

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.9 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of six months or less from the date of acquisition or opening of the deposit or similar account.

2.10 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.11 FINANCIAL INSTRUMENTS

The Group 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

The Group uses forward exchange contracts to reduce exposure to foreign exchange risks and as such consider these to be 'hedges'. Gains and losses on instruments used for hedging are recognised at fair value at the end of the year with changes in fair value recognised in the Consolidated Statement of Financial Activity.

2.12 FOREIGN CURRENCIES

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting 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 Consolidated Statement of Financial Activities.

2.13 TAXATION

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 27

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.14 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.15 OPERATING LEASES

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the lease term.

2.16 PENSIONS

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Valuation of investment properties

Investment property, which is valued at £161,000 in the accounts, has been valued based on rental yields of properties with similar characteristics. The value derived using this method has been compared with the valuations of similar properties to ensure it is reasonable and proportionate.

Impairment of investment in subsidiary

The carrying value of the subsidiary is currently based on the net assets of the subsidiary company as these are below historic cost. Any reversal of previous impairments is based on the forecasts and increased success of the subsidiary causing a sustained increase in net assets. The investment in subsidiary companies is broken down in note 17.

Page 28

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

4. INCOME FROM DONATIONS AND LEGACIES

Donations
Legacies
TOTAL 2022		 Unrestricted
funds
2023
£
3,286
-
3,286
14,781		 Restricted
funds
2023
£
-
206,389
206,389
-		 Total
funds
2023
£
3,286
206,389
209,675
14,781		 Total
funds
2022
£
14,781
-
14,781

5. INCOME FROM CHARITABLE ACTIVITIES

Performances and events
TOTAL 2022		 Unrestricted
funds
2023
£
95,117
97,740		 Total
funds
2023
£
95,117
97,740		 Total
funds
2022
£
97,740

Page 29

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6. INCOME FROM TRADING ACTIVITIES

Income from non charitable trading activities

Bar, café and conferences
Tours
TOTAL 2022		 Unrestricted
funds
2023
£
281,671
5,650,826
5,932,497
4,351,384		 Total
funds
2023
£
281,671
5,650,826
5,932,497
4,351,384		 Total
funds
2022
£
93,271
4,258,113
4,351,384

7. INVESTMENT INCOME

Unrestricted
funds
2023
£
Rental income
65,785
Investment income
46,220
Bank interest
23,071
135,076
TOTAL 2022
124,244		 Total
funds
2023
£
65,785
46,220
23,071
135,076
124,244		 Total
funds
2022
£
74,010
47,988
2,246
124,244

Page 30

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

8. EXPENDITURE ON RAISING FUNDS

TRADING EXPENSES

Unrestricted
funds
2023
£
Tour expenses
4,322,824
Other trading expenses
469,630
Wages and salaries
810,761
National insurance
74,845
Pension costs
39,820
Depreciation
14,827
5,732,707
TOTAL 2022
3,784,495		 Total
funds
2023
£
4,322,824
469,630
810,761
74,845
39,820
14,827
5,732,707
3,784,495		 Total
funds
2022
£
3,113,556
150,270
427,898
50,758
31,989
10,024
3,784,495

9. INVESTMENT MANAGEMENT COSTS

Investment management fees
Staff time spent managing investments
TOTAL 2022		 Unrestricted
funds
2023
£
13,344
7,180
20,524
22,059		 Total
funds
2023
£
13,344
7,180
20,524
22,059		 Total
funds
2022
£
15,010
7,049
22,059

Page 31

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

10. ANALYSIS OF GRANTS

Education
TOTAL 2022		 Grants to
Institutions
2023
£
110
6,380		 Grants to
Individuals
2023
£
14,485
14,995		 Total
funds
2023
£
14,595
21,375		 Total
funds
2022
£
21,375

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Performances and events
Education
TOTAL 2022		 Activities
undertaken
directly
2023
£
190,201
-
190,201
323,790		 Grant
funding of
activities
2023
£
-
14,595
14,595
21,375		 Support
costs
2023
£
333,074
40,187
373,261
295,725		 Total
funds
2023
£
523,275
54,782
578,057
640,890		 Total
funds
2022
£
601,386
39,504
640,890

Page 32

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED) ANALYSIS OF DIRECT COSTS

Staff costs
Event expenses
Printing, stationery, newsletters and promotion
Computer expenses
Bank charges
TOTAL 2022		 Performances
and events
2023
£
72,033
71,259
29,939
11,373
5,597
190,201
323,790		 Total
funds
2023
£
72,033
71,259
29,939
11,373
5,597
190,201
323,790		 Total
funds
2022
£
199,507
95,266
13,939
11,210
3,868
323,790

ANALYSIS OF SUPPORT COSTS

Staff costs
Printing, stationery, newsletters and promotion
Audit and accountancy fees (governance)
Administration, finance and IT
Depreciation
Professional fees and costs (governance)
TOTAL 2022		 Performances
and events
2023
£
97,912
115
16,718
131,649
80,659
6,021
333,074
277,596		 Education
2023
£
40,187
-
-
-
-
-
40,187
18,129		 Total
funds
2023
£
138,099
115
16,718
131,649
80,659
6,021
373,261
295,725		 Total
funds
2022
£
117,350
(240)
14,456
78,996
81,504
3,659
295,725

12. TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. The tax charge relates to the subsidiary, ACE Cultural Tours Limited.

Page 33

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. AUDITORS' REMUNERATION

2023 2022
£ £
Auditor's remuneration - audit 19,440 18,000
Fees payable to the Charity's auditor in respect of:
Auditor's remuneration - other services 7,290 7,250

The audit fee for the Charity was £10,800 (2022 - £10,000). Non-audit services for the Charity were £3,670 (2022 - £3,400).

14. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2023
£
1,001,645
93,985
47,108
1,142,738		 Group
2022
£
725,480
69,396
39,675
834,551		 Charity
2023
£
190,884
19,140
7,288
217,312		 Charity
2022
£
297,582
18,638
7,686
323,906

During the year, termination payments totalling £80,000 were paid to two former employees. These payments were in recognition of their loyal service. These payments have been recognised in 'wages and salaries' above and were fully settled at the balance sheet date.

The average number of persons employed by the Charity during the year was as follows:

Charitable activities
Trading		 Group
2023
No.
3
34
37		 Group
2022
No.
5
27
32		 Charity
2023
No.
3
-
3		 Charity
2022
No.
4
-
4

Page 34

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

14. STAFF COSTS (CONTINUED)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 2 2
In the band £70,001 - £80,000 1 -
In the band £80,001 - £90,000 - 1
In the band £100,001 - £110,000 1 -

The Group considers its key management personnel comprise the trustees, the Stapleford Granary CEO, the General Secretary and the directors of the wholly owned subsidiaries, ACE Cultural Tours Limited and Stapleford Granary Limited.

During the year, three trustees (2022 - one) received fees and reimbursement of expenses in their capacity as tour directors totalling £39,073 (2022 - £5,318).

The total employment benefits including employer's national insurance and pension contributions of the key management personnel for the Group was £240,408 (2022 - £250,856) and for the Charity was £70,965 (2022 - £88,976).

Trustee expenses paid on behalf of all trustees to cover meeting expenses totalled £1,215 (2022 - £72).

Page 35

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

15. TANGIBLE FIXED ASSETS

GROUP

COST
At 1 January 2023
Additions
Disposals
Transfers between classes
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for the year
On disposals
Transfers between classes
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
property
£
3,643,577
995
-
(301,400)
3,343,172
243,661
32,462
-
(25,500)
250,623
3,092,549
3,399,916		 Plant and
machinery
£
257,600
499
-
-
258,099
80,735
17,953
-
-
98,688
159,411
176,865		 Fixtures,
fittings &
instruments
£
557,995
18,875
(1,405)
-
575,465
387,199
45,071
(1,218)
-
431,052
144,413
170,796		 Total
£
4,459,172
20,369
(1,405)
(301,400)
4,176,736
711,595
95,486
(1,218)
(25,500)
780,363
3,396,373
3,747,577

Page 36

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

15. TANGIBLE FIXED ASSETS (CONTINUED)

CHARITY

COST
At 1 January 2023
Additions
Disposals
Transfers between classes
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for the year
On disposals
Transfers between classes
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
property
£
3,643,577
995
-
(301,400)
3,343,172
243,661
32,462
-
(25,500)
250,623
3,092,549
3,399,916		 Plant and
machinery
£
257,600
499
-
-
258,099
80,735
17,953
-
-
98,688
159,411
176,865		 Fixtures,
fittings &
instruments
£
296,970
3,024
(1,405)
-
298,589
164,619
30,244
(1,218)
-
193,645
104,944
132,351		 Total
£
4,198,147
4,518
(1,405)
(301,400)
3,899,860
489,015
80,659
(1,218)
(25,500)
542,956
3,356,904
3,709,132

Included in freehold property held by the group and charity is freehold land at an estimated cost of £400,000 (2022 - £400,000) which is not depreciated.

Page 37

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

16. INVESTMENT PROPERTY

GROUP AND CHARITY

VALUATION
At 1 January 2023
Surplus on revaluation
Transfers from tangible fixed assets
At 31 December 2023		 Freehold
investment
property
£
161,000
116,100
275,900
553,000

Investment property is carried at fair value determined annually by the trustees. Fair values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.

17. FIXED ASSET INVESTMENTS

GROUP
VALUATION
At 1 January 2023
Additions
Disposals
Revaluations
Movement in the year
AT 31 DECEMBER 2023
NET BOOK VALUE
AT 31 DECEMBER 2023
AT 31 DECEMBER 2022		 Listed
investments
£
2,058,233
194,234
(189,552)
(42)
-
2,062,873
2,062,873
2,058,233		 Uninvested
cash
£
36,499
-
-
-
(10,603)
25,896
25,896
36,499		 Total
£
2,094,732
194,234
(189,552)
(42)
(10,603)
2,088,769
2,088,769
2,094,732

Page 38

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. FIXED ASSET INVESTMENTS (CONTINUED)

CHARITY
COST OR VALUATION
At 1 January 2023
Additions
Disposals
Revaluations
Movement in the year
AT 31 DECEMBER 2023
IMPAIRMENT
At 1 January 2023
Reversal of impairments
AT 31 DECEMBER 2023
NET BOOK VALUE
AT 31 DECEMBER 2023
AT 31 DECEMBER 2022		 Investments
in
subsidiary
companies
£
710,001
-
-
-
-
710,001
271,925
(129,169)
142,756
567,245
438,076		 Listed
investments
£
2,058,233
194,234
(189,552)
(42)
-
2,062,873
-
-
-
2,062,873
2,058,233		 Uninvested
cash
£
36,499
-
-
-
(10,603)
25,896
-
-
-
25,896
36,499		 Total
£
2,804,733
194,234
(189,552)
(42)
(10,603)
2,798,770
271,925
(129,169)
142,756
2,656,014
2,532,808

Page 39

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. FIXED ASSET INVESTMENTS (CONTINUED)

Listed investments

Listed investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees' Annual Report.

The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Charity's investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial instruments however the subsidiary does use forward exchange contracts to reduce exposure to foreign exchange risks and as such consider these to be 'hedges'. Investments are held for their longer term yield and total return. Historic studies of quoted financial instruments have shown that short term volatility in any particular period will normally be corrected in the long-term.

Investment in subsidiaries

The impairment of the Charity's investment in its trading subsidiary, ACE Cultural Tours Ltd, has been reversed by £129,169. The amended carrying value represents the book value of net assets in ACE Cultural Tours Ltd on 31 December 2023.

During 2023, with the ending of Covid-19 restrictions across the globe, the financial position and performance of the subsidiary improved significantly due to the increase in tour bookings. Forecasts indicate that the financial position and performance will continue to improve in 2024 and beyond. Accordingly, the Trustees consider that a reversal of previous impairments to align the carring value of the investment with the book value of net assets is justified.

Page 40

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. FIXED ASSET INVESTMENTS (CONTINUED)

PRINCIPAL SUBSIDIARIES

The following were subsidiary undertakings of the Charity incorporated in the UK:

Names Company Registered office or principal Principal activity number place of business ACE Cultural Tours Limited 07058084 Stapleford Granary, Bury Road, International cultural Stapleford, CB22 5BP tours operator Stapleford Granary Limited 13766501 Stapleford Granary, Bury Road, Operating a café Stapleford, CB22 5BP

International cultural tours operator Operating a café

Class of Holding Included in shares consolidation Ordinary 100% Yes Ordinary 100% Yes

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss) Net assets/
£ £ / Surplus/ (liabilities)
(Deficit) for £
the year
£
ACE Cultural Tours Limited 5,682,715 (5,553,546) 129,169 576,244
Stapleford Granary Limited 281,671 (276,463) 5,208 (15,442)

Page 41

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

18. STOCKS

Café consumables
Finished goods and goods for resale
DEBTORS
DUE AFTER MORE THAN ONE YEAR
Amounts owed by group undertakings
DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Financial instruments		 Group
2023
£
4,593
-
4,593
Group
2023
£
-
-
4,541
-
123,004
372,223
-
499,768		 Group
2022
£
2,812
991
3,803
Group
2022
£
-
-
1,565
-
34,317
307,336
17,560
360,778		 Charity
2023
£
-
-
-
Charity
2023
£
500,000
500,000
791
30,552
121,546
7,269
-
660,158		 Charity
2022
£
-
991
991
Charity
2022
£
1,000,000
1,000,000
1,565
42,204
33,337
11,393
-
1,088,499

19. DEBTORS

The balance due after more than one year represents the remaining portion of a £1,000,000 loan advanced to the Charity's trading subsidiary, ACE Cultural Tours Limited. During the year, £500,000 was repaid by the subsidiary. The interest rate is 3% per annum. The loan and any unpaid interest are repayable in full on 30 June 2026. The loan is unsecured.

Page 42

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Trade creditors
Amounts owed to group undertakings
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2023
£
10,000
63,038
-
21,993
43,811
20,117
1,424,319
1,583,278		 Group
2022
£
10,113
98,442
-
-
35,987
20,000
1,160,462
1,325,004		 Charity
2023
£
-
10,905
68,278
-
17,587
-
42,986
139,756		 Charity
2022
£
-
9,609
374,961
-
8,859
-
40,872
434,301

In July 2020, a £50,000 bounce back loan was obtained. Interest is charged at 2.5% per annum. For the first 12 months, interest was settled by the UK Government and no repayments of capital were due. Since July 2021 interest and capital repayments are due in equal monthly instalments over a 5-year period. The loan is due to be settled in full by July 2026. The ageing analysis of this loan is disclosed in note 21.

Deferred income at 1 January 2023
Resources deferred during the year
Amounts released from previous periods		 Group
2023
£
1,044,269
1,301,252
(1,044,269)
1,301,252		 Group
2022
£
718,379
1,044,269
(718,379)
1,044,269		 Charity
2023
£
543
4,187
(543)
4,187		 Charity
2022
£
4,853
543
(4,853)
543

The Group receives income in advance of future tours, which is carried forward and recognised on the dates the tours depart. Ticket sales in respect of future courses and events are also carried forward and recognised on the dates the events take place.

21. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group
2023 2022
£ £
Bank loans 17,918 26,667

Page 43

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

21. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (CONTINUED)

In July 2020, a £50,000 bounce back loan was obtained. Interest is charged at 2.5% per annum. For the first 12 months, interest was settled by the UK Government and no repayments of capital were due. Since July 2021 interest and capital repayments are due in equal montly instalments over a 5-year period. The loan is due to be settled in full by July 2026. The ageing analysis of this loan is disclosed below.

Included within the above are amounts falling due as follows:

BETWEEN ONE AND TWO YEARS
Bank loans
BETWEEN TWO AND FIVE YEARS
Bank loans
GRANTS ACCRUED
Grants accrued b/fwd
Grants committed
Grants paid		 Group
2023
£
10,000
7,918
2023
£
-
14,595
(14,595)
-		 Group
2022
£
10,000
16,667
2022
£
-
21,375
(21,375)
-

22. GRANTS ACCRUED

Page 44

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

23. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Capital fund
Property fund
Subsidiary support
fund
GENERAL
FUNDS
General funds
Subsidiary funds
TOTAL
UNRESTRICTED
FUNDS
RESTRICTED
FUNDS
Beryl Wallis
Legacy
TOTAL OF
FUNDS		 Balance at 1
January
2023
£
2,094,732
3,870,132
1,000,000
6,964,864
(295,597)
426,925
131,328
7,096,192
-
7,096,192		 Income
£
-
-
-
-
201,590
5,964,386
6,165,976
6,165,976
206,389
6,372,365		 Expenditure
£
-
(80,659)
-
(80,659)
(433,114)
(5,839,508)
(6,272,622)
(6,353,281)
-
(6,353,281)		 Transfers
in/out
£
(2,094,732)
4,331
(500,000)
(2,590,401)
2,590,401
-
2,590,401
-
-
-		 Gains/
(Losses)
£
-
116,100
-
116,100
4,642
-
4,642
120,742
-
120,742		 Balance at
31
December
2023
£
-
3,909,904
500,000
4,409,904
2,067,922
551,803
2,619,725
7,029,629
206,389
7,236,018

Page 45

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

23. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Capital fund
Property fund
Subsidiary support
fund
GENERAL
FUNDS
General funds
Subsidiary funds
TOTAL
UNRESTRICTED
FUNDS		 Balance at
1 January
2022
£
2,736,733
3,858,213
1,000,000
7,594,946
56,223
(65,423)
(9,200)
7,585,746		 Income
£
-
-
-
-
232,572
4,355,577
4,588,149
4,588,149		 Expenditure
£
-
(81,504)
-
(81,504)
(502,711)
(3,863,229)
(4,365,940)
(4,447,444)		 Transfers
in/out
£
(11,742)
93,423
-
81,681
(81,681)
-
(81,681)
-		 Gains/
(Losses)
£
(630,259)
-
-
(630,259)
-
-
-
(630,259)		 Balance at
31
December
2022
£
2,094,732
3,870,132
1,000,000
6,964,864
(295,597)
426,925
131,328
7,096,192

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DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

23. STATEMENT OF FUNDS (CONTINUED)

DESIGNATED FUNDS

Capital Fund

The Charity previously aimed to strengthen the value of its Capital Fund in order to increase sustainably the value of grants awarded from investment income, to individuals or organisations for the purposes of promoting educational cultural exchange, whilst ensuring the long term security, success and expansion of the Charity's services and strategic objectives. Following a reserves policy review during the year these funds have now been transferred to General Funds.

Property Fund

This fund represents the net book value of the Charity's freehold and investment property, including plant. The transfer from General Funds represents the additions in the year.

Subsidiary Support Fund

This fund represents the carrying value of long term loan made to its subsidiary ACE Cultural Tours Limited which is not freely available to the Charity. The loan ensures the long term security and return to pre-pandemic levels of the subsidiary's activities. The transfer out represents the £500,000 repayment made during the year.

Subsidiary Funds

This fund represents the net assets held in the subsidiaries ACE Cultural Tours Limited and Stapleford Granary Limited.

RESTRICTED FUNDS

Beryl Wallis Legacy

This fund contains the legacy from the estate of Beryl Wallis. This legacy is to be used in the area of classical music.

Page 47

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the year (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
(Profit)/loss on the sale of fixed assets
Increase in stocks
Increase in debtors
Increase in creditors
NET CASH PROVIDED BY OPERATING ACTIVITIES		 Group
2023
£
139,826
95,486
(120,742)
(135,076)
(63)
(790)
(138,990)
249,525
89,176		 Group
2022
£
(489,554)
90,887
630,259
(124,244)
2,988
(3,803)
(216,896)
421,193
310,830

25. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 Group
2023
£
2,294,711
2,294,711		 Group
2022
£
2,079,973
2,079,973

Page 48

DocuSign Envelope ID: 8D4EBCEE-AE9D-48B6-89C0-8F1D10ACA5D3

THE ASSOCIATION FOR CULTURAL EXCHANGE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

26. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
Currency derivatives		 At 1
January
2023
£
2,079,973
(10,113)
(26,667)
17,560
2,060,753		 Cash flows
£
214,738
10,113
(1,251)
-
223,600		 Other non-
cash
changes
£
-
(10,000)
10,000
(17,560)
(17,560)		 At 31
December
2023
£
2,294,711
(10,000)
(17,918)
-
2,266,793

27. PENSION COMMITMENTS

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £47,108 (2022 - £39,675). Contributions totalling £117 (2022 - £NIL) were payable to the fund at the balance sheet date and are included in creditors.

28. RELATED PARTY TRANSACTIONS

During the year, the Charity recharged its subsidiary, ACE Cultural Tours Limited, £30,000 (2022 - £30,000) in respect of rent, heat, light and power expenses. During the year, the Charity was charged by its subsidiary, ACE Cultural Tours Limited, £6,000 (2022 - £6,000) in respect of office support costs.

As a result of the Covid-19 pandemic, the Charity loaned £1,000,000 to ACE Cultural Tours Limited in 2022. During the year, £500,000 of this loan was repaid. The loan incurs interest at a rate of 3% per annum and £18,745 (2022 - £30,404) was charged during the year. The loan is due for repayment by 30 June 2026 but may be repaid by the subsidiary at any point prior to this date at the discretion of the subsidiary's directors.

As at 31 December 2023, £431,722 (2022 - £625,039) was due from ACE Cultural Tours Limited.

During the year, the Charity recharged its subsidiary, Stapleford Granary Limited, £10,000 (2022 - £5,833) in respect of rent. At the year-end, a balance of £30,552 (2022 - £42,205) was due from Stapleford Granary Limited. Stapleford Granary Limited paid loan interest amounting to £604 (2022 - £nil) to the Charity. It also paid £14,500 for the hire of rooms for conferences (2022 - £nil).

Three (2022 - one) trustees (John Bryden, Paul Jackson and Sarah Burles) received fees and expense reimbursements for services rendered in their capacity as tour directors and this is disclosed in note 14.

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