Brigham Young Unlversity Llmlted (A prlvate Ilrnited company and registered charity) Annual report and flnanclal statements Year ended 31 December 2020 Company nurnber: 1496990 Charlty number: 280605
Brf8ham Young Vnlvevslty Umtted Index to annu•l report and fin•ndal stst•meDts Year ended 31 DeceMr 202Q Report of the trustees i-ii Independent audltorfs rep¢Jrt 12-17 Ststement of finènaal actlvitles 18 Balance sheet 19 Statement of cash flows 20 Acwnting policies 21-23 Notes to the financial ststements 24-29
Brlqharn Youn8 Unlverslty Umlted Report ofth• tyullees for th• year ended 31 December 2020 The trustees are pleased to present thelr report together wlth the audlted financial statement5 of Brigham Young Unlverslty Limited (The Charlty'l for the year ended 31st December 2020. dml Comp*ny number 014969 Charlty number 280605 Comp•ny secretary Chrlstopher Bauer Reglstered offl¢e 27-29 Palace Court, London, W2 4LP Prlnclp•l office 27-29 Palace Court, London, W2 4LP Bank•rs HSBC 155 Brompton Road, London, SW3 IXO Sollcltors Wlther5 LLP 20 Old Balley, London, EC4M 7EG AudltOf5 Grant Thornton UK LLP 20 Colmore Circus, Blmiln8ham, B4 6AT Olrertors and trustees The dlrectors of the Charity are Its trustees for the purpose of charlty law and throughout thls report are collectlvely referred to as the trustees The trustees servin8 during the year, subsequent to the year end and up to the date of slgnlng the report were as follows: Timothy Lynn Elliott Rertata Forste Rebecca Stephenson Robert Clayton Robert Schwartz Stan Benfell- Replaced Renata on 2 September 2021 and wlll review 2020 report Page I
Brltham Young Unlver51ty Umlted Report ol the trustees lor the year ended 31 Decernbef 2020 ernan nd Governlng Do¢ument Bri8ham Young UnlversSty Limited Is a private Ilmlted company and a reglstered charity. The Charliy Is governed by its Articles of Assoclation. whlch were last amended on 6 September 2016. Appolntment of trustees A5 set out in the Articles of A$50ciation. new or addltional dliectors Itrustee51 are to be appointed by ordinary resolution or by declsion of the tru5tee5 Wlth the prior writtèn consent of the sole shareholder and member, Bri8ham Young University, providin8 such persons are wllling and permitted by law so to act, either to fill vacancy or as an additlonal trustee up to a total of no more than five trustees. Currently n¢ term is fix¢d to the term served. A member holdin8 a m8lorlty in nomlnal amount of the 5ssued ordlnary share capital may at anv time appolnt or remove trustees. Tru51e• Indurtlon and tralnSni New trustees undergo training to brief them on thelr le8al obllgations under charity and company law,. the content of the Articles of Associatlon.. the commlttee and detision makin8 processes,. and the business 5trurtLtre and recent financial performance of The Charity. Trustee5 are updated and advised on legal Issues by ihe Office of the General Counsel at Brlgham Youn8 University and Withers Solicitors. Organls•tlon The board of trustees admlni5teis The Charity. The board meets at least twice a year. Reports are recelved In or around each September for the prevlous tlnanclal year for approval by the trustees. The tru5tee5 monltor progres5 thioughoui the year and other trustees meetln85 are held as and when requlred. Related partles The Charity'5 sole shareholder and member is 8rl8ham Young Universlty, a prlvate non-proflt corporatlon and higher education institution incorporated In the state of Utah, Unlted States ol America. Golni Concern The performance and financial position of the entSty, its cashflows. and1Squidity positlon have been revlewed by the trustees in light ol the economlc c¢)ndltions arlslng from ihe COVID 19 pandemSc and Brexlt. Forecast5 and projec1ions. taking account of reasonably posslble changes In performance, show that the entity is expected to be able to operate withln the level of its current facility for at least the ne¥t twelve rrbonths. Furthermore. as precaution, the member has confirmed, In a letter of Support, Its willin8ne5S to provide support to ensure liabilities can be settled as they fall due for at least 12 months from the date of thls report. The trustees therefore conclude it is appropriate to prepare these financial statements on the 80in8 concern basls. Page 2
8rl8harn Youni Unl¥er51ty Llrnlted Report of the trustees lor the y•ai ended 31 D•cemb•r 2020 Governan Employ••s The Charity has the policy of ensuring that it5 employees are those that ale able to meet the necessary requlrements of thelr posltlon and are up to date on any (levelopments required for their posrtion. This pollcy Is achleved In a varlety of ways.. eand Mana nued Applications for new positlons In The Charity are invlted from anyone with the relevant qualif(cations. The key emphasis Is on their ability to meet the requirements of the positlon although the applicatlgn form does reouest the applicant to mentlon if they have any illnesses or medical condStion whlch the employer would need to be aware of in order to make reasonable adjustments should they be successful. The Charity will utilise regular staff meetings during the year which help to ensure that the employees, input Is received regardin8 any decisions which affect their interest5. In addition, there ale websltes and e-mail facilities available to enable rnore effective communication and training. This approach helps to ensure that employees receive systematSc updates on matters Conrning them as employees and ensures their involvement In relatlon to the financial and economic factors that affect the performance of The Charity. In addition to the above points, The Charlty is mindful Of the need to cater f those with dlsabilities. Where any employees become Incapacitated during their employment they are entitled to receive long-term disabllity benefits from The Charity. Where an employee becomes disabled but not incapacitated the employer will make any reasonable adlustments necessary. On tralning and career development 15siies. there is no distinction made between disabled and non-disabled employees. The same opportunlties are available to all Staff, irrespettive of disability. The key emphasi5 is on technital ability of each employee. Prlnclpal rfsks and uncertalnties The main risk The Charity faces is that It primarlly relies on donatlons from Its member, normally comprised chiefly of student study abroad fees, to flnan¢e Its charitable actlv¢ties. Howevei, the member has guaranteed its future financial support, where necessary, to ensure that The Charity has sufficient reserves to meet the costs of its charltable actiwties. Flnanclal rlsk and management The followin8 Statements summarlse The Charlty's identified forms of financial risk and managernent policies.. Price risk- Salary costs are communicated to staff durrn8 the formal annual review of salaries. Prlces of materials purchased are subject to contra¢t5 Wlth suppliers. based on current market price5. Liquldity risk- The Charity has no lon8-term borrowlngs. Assurances of continuing financial support have been received from the member. Interest rate cash flow risk-The Charity is able to place surplus funds on Short term dep051t with the companrfs bankers. The trustees have a risk management strategy which encompasse5: An annual review of the risks The Charity may face, The establishment of systems and procedures to mitigate those risk5 identifled In the Strate,. and The implementation of procedures desi8ned to minimise any poiential Impact on The Charity should those risks materialise. Page 3
Brliham Youni Unlverslty Umlted Report of the trustees for the year ended 31 December 2020 ve The oblertlve of the Charity is: To promote and further the educational and other charitable work ol Brigham Young University in the Urbited Kirb8dom or elsewhere. To achieve this objective The Charity continue5 to operate the London Educational Programs from the premises at 27, 29, and 31 Palace Court. London, W2 4LP under a License, Facilities ijse, and SeNces Agreement with Brlgham Young University IBYLII. The Charitys premTr5es contlnued to be Managed on a day-to.day basls by Alvaro and Thals Magalhaes during 2020. Each semester, different BYU students travel to London. A number of Single discipline and interdlstiplinary programs of study are offered. including course5 in English, soci0108y. ancient sciipture, history, language, literature, art and theatre. Students who complete these courses successfully are awarded credits whlth are counted towards their degree at BYU. Any BYU student is able to apply to attend one of the study abroad programs provided they are willing to live bv the universi$ code of conduct. In addition, students fiom other universitie5 who meet 8YU's acadernic standards and who are willing to live by BYU'S code of conduct are welcome to apply for, and if accepted, participate in BYU'S study abroad programs. Typically, 8 to 10 percent of the participants are frorn universities other than BYU. Betause the program tends to be oversubscribed, students are then selected on the basis of their aca(Jemic merit and strengths that they could brln8 to the program. The Charity is committed to providing access to students across the socio.economic spectrLbm, and admittance to the program Ss determined without regard to the flnancial positlon of the applicant. Both BYU and The Charity are committed to provlding quality education to the best and brightest. regardless of their financlal or class background. Many BYU students are recipients of Pell Grants- US federal grant5 that are awarded to US students based on their familvs financial situation. BYU itself, in addition to federal government grants, offer5 a wide range of financial aid, grants, and scholarships to students. These grants and awaids, which are means tested, enable students from less wealthy families to attend the univers5ty. Around 35% of BYU students receive some form of financ131 aid, and the financlal ald from BYU can be used for study abroad proBrams. In addltlon, study abroad grants are available to BYU students on a 'needs basis" to help them cover the additional cost of studying abToad in order to enable students from a wide range of financial backgrounds to participate in the study abroad program regardless of the studer¢t5' flnancial circumstances. The Charlty is committed to a workln8 and studying environment that Is free from any form of unlawful discrimination. The Chaiity makes reasonable adjustments to meet the needs of staff and Students who are become disabled. Students and faculty live in town-houses located at 27, 29, and 31 Palace Court in west-central London. Page 4
Brtgharn Young Unlverslty Llmlted Report of lh• trustees for the year ended 31 O•cemb•r 2020 The trustees understand and give due regard to the Buidance on publ1¢ benefit published by the Charity Commlssion in exerclsln8 thelr powers and dutles. chlev nts and rfomian Educatlon The Charlty works to advance educatlon for the publlc benefit. Th15 oblert Is achleved by the provislon of lertures, classes, semlnars, edutational fleld trlps, and cultural activitles to the v151ting students and lectures and educatlonal events for the local communlty. The Charity's programs prowde an educational environment that Is desi8ned to promote the academlc ènd culiural development of Its students. In 2020. B YU'S Offlce of Internatlonal Study Program5 IISPI seni a tolal of 63 students on programs to the United Kingdom, of which 41 attended pro8ram5 based at the Charity's premlses, Fof Students enrolled on the pro8rams at these piemlse5, the Charity recelves donations from BYU. Pa8e 5
Brfgham Young Unfver51ty Umtted Report ol the trustees for the year •ndtd 31 D•cembtr 2020 The followlng lable enumerates the programs whlch opèrated under the ausplces of The Charlty In 2020- Pro ram name and semesterlteTm Enfolment AMAR Foundatlon London Internship lThroughout yearl London, General Educatlon Study Abroad- Winter 2020. MBA Europe Study Abroad ScottSsh Parliament Internshlp (Throughout year) Wordsworth Trust Internship (Throughout yearl Total 41 15 63 These programs are based at 27 Palace Court, London All Sprln& Summer, and Fall pro8r?ms were canceled In 2020 due to the coronavlrus pandeml¢. Pa8e 6
Brlih•m Youn8 Unlverslty Llmlted Report of the trustees for th• year ended 31 December 2020 uca lonal ren e55 dln202 In additbon to educational programs for Siudents, BYU sponsored several academic conferences or events for the broader academlc communSty. These were done as part of BYU'S broader academlc mission. Aud mlc Conferences Hos ed (hosted orsu rted l. phenomenolo of Rellglous Experlence: Heldeggerfs phenomenolo of Rellglou5 Life Corpus Christi, Universlty of Oxford. Oxford University Centre for Theology and Modem European Thought. Faculty of Theology and Religion, BYU London Centfe, 13-14 March 2020 "COV119. Rellglon and Bellef: Weblnar Serles"112 onllne weblnars In the series) April-june 2020 Governm t&DI lom tlc osted Ctrh or orte 3. BYU Meetlng wlth JIM Shannon MP House of Commons, 10 March 2020 8YU London met with Jim Shannon and discussed his worklcontribution to Intemational FORB. 4. APPG Intematlonal FORB Roundtable re: Nlgerfa Report tsunch House of Common5 lonlinel, IS June 2020 S. Natlon•l Parllamentary Prayer Breakfast: °Mlsslon durln8 lockdown and beyond" Westminster lonlinel, 20 June 2020 6. Annlversary of the Launch of the Independent RleW of FCO Support for Pèrsecuted Chr15t5ans House of Lords lonlinel 8 July 2020 7. The Coalltlon forGeno¢lde Response: "Justlce Delayedls Justke Denled- Da*sh FIBhters Stlll EnJoyln8 Impunlty SIX Year5 On" Westminster, House of Lords lonlinel. S August 2020 8. he Internat5onal Day Comrnemoratlng the Vlctlm5 of Acts of Vlolence Based on Rellglon or Beikr Lord Alton of Liverpool and the Coalition for Genocide Response, 22 August 2020 Note of Exceptlon: Due to the COVID-19 pandemic and subsequent lockdown in the UK, the planned program of academic, civll society, and government pro8rams were greatly curtailed and. in many cases, cancelled. In addition, ttte sprin8, summer, and fall ISP programs were cancelled. This was an unprecedented year that Saw a 61>70% drop in support and engagement activities due to pan-national lockdowns and closure of Universities and other institLrtions. This is expected to continue into 2021 Page 7
BrlBham Youn8 UnSverslty Llmlted Report of the truslees lor the year ended 31 December 2020 Flnan lal R vlew The Charity was funded In 2020 almost entlrely by contrlbutions from BYU. Each year the trustees carry out detailed revlew of The Charlty, whlch includes review of the prevlous yearfs achievements and financial statements, as well as bud8ets and antlcipated activitles for the next year. Charltable expendltures In 2020 decreased compared to 2019 by 1.3% due to ihe cancellallon of pro8rams due to the tovld pandemlc. We would expect to see a larger deciease, however, there was an addltlonal expense of maintenance and supplles rel315n8 31 Palace Court. Investment powers and pollcy Under the Articles ol Assoclation, The Charlty has the powei to invest In any way the trustees deem to be In the best interests of The Charlty. There were no Investments durlng the year. Reserves pollcy The trustees have established the level of reserves Ithat Is those fLtnds that are freely available) that The Charlty ought to have ready access to. The target level ol reserve51s £IOO,CQ) of net current assets. Reserves are needed to brld8e any lundln8 gap between spendln8 and receivlng resources. The reserves pollcy Is revlewed on an annual basls. The actual reserves èt 31 December 2020 were1£2.3821. The charity feceived a donatlon in january 2021 of £146,309 to bring the level of reseThes above the target, Page 8
Brltham Youni Unfv•rslty Llmlted Report ofthetwstees for th• year •nd•d 310ecember 2020 Educatlon 8efore the Ilmitatlon5 Imposed because of the coronavlrLts pandemlc, the Charlty planned to operate the followlng programs In the Unlted Kln8dom In 2021.. EImated Enrolment Pro ram name and semesterlterm AMAR Foundation London Internshlp lThrouBhout yearl London General Education Stu(Jy Abroad- Fall 2021. London InternshSps (Throughout yearl Scottish Parllament Internship lThrou8hout year Wordsworth Trust Internshlp IThrou8hout yearl Total 45 * These programs are based at 27 Palace Cour( London All Wlnter, Sprln& and Summer 2021 programs were cantelled due to the COTonavlrus pandemlc. Page 9
Brl8ham Young Unlverslty Llmlted Report of the trustees for the year ended 31 December 2020 Educatlonal conlerences s onsored lanned for 2021 In addition to educational programs for stlentS, BYU Piovo and the Charity plan to sponsor academic conferences or events for the bioader academic community as follows.. Brl ham Youn Unlver BY London Centre Brigham Young University london Centre serves as the operational and academic base of BrlBham Young University IBYUI in the United Kingdom and Ireland. The BYU London Centre houses international Study abroad programs115Psl which accornmodate over 170 students a year and serves as the operational base for between 4CrfJ to s undergraduate students each year and around 22 faculty member5. Each year, the BYU London Centre sponsors, co-sponsors, and supports a number of academic, civil society, and governmental institutions in the UK, Ireland, and continental Europe. Note of Exceptlon: Due to the COVID-19 pandemic and subsequent lockdown in the UK, the planned program of academic, civil society, and government programs were greatly curtailed and. in many cases, cancelled. This unprecedented period of disruption stsrted in 2020 as noted in previou5 Dirertor's reports and continued through most of 2021. The Fall 2021 program is the first intake of students since March 2020. dernlc Conferences Hosted Cts-hosted orsu orted l. Euroseminar, BYU London Centre, Detember 2021 Government & DI lomatic Hosted choSted orsu orted 2. UK Freedom of Rellglon or Bellef Forum I Siakeholder Meetln8 19 January 2021 3. UK Freedom of Rell8lon or Bellef Forum I Stakeholder Meetlng 2 March 2021 4. UK Freedom of Religlon or Bellet Forum I Stakeholder Meetlni 13 April 2021 5. UK Freedom of Rell8lon or Bellel Forum I Stakeholder Meetln8 18 May2021 6. BrfÈfin8 wlth Spedal Envoy FoRB- Fiona Bruo UK Freedom of Rell8lon or Belief 10 June 2021 7. UK Freedom ol Rell8lon or Bellef Forum I Stakeholder Meetlng 22 June 2021 8. UK Freedom of RelÉilon or 8ellef Forum I Stakeholdèr Meetlng 8 July 2021 Page 10
8ri8ham Young Uni¥erslty LSmited Report of the trustees for the year ended 31 December 2020 Trustees, responslbllltles statement The trustee5 (who are also directors of Brigham Young Universily Limited for the purposes of company lawl are responsible for preparinB ihe Trustees, Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustee5 have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting standard5 and applicable lawl, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees must not approve the financial statements unles5 they are sat15fied that they give a true and fair vlew of the state of ffairs of the charitable company and of the incoming resources and application of resources, including the Income and expenditure, of ihe charitable company for that period. In preparing these financial statements, the trustees are required to.. select suitable accountin8 policies and then apply them consislenilyi ObSee the methods and prlnciples in the Charities SORP IFRS 1021,. make judgments and accountin8 estimates that are reasonable ènd prudent,. state whether applicable UK Accounting Standards have been followed, subject to any materlal departures disclosed and explained in the financial statements; The trustees are responsible for keeping adequate accountln8 records thal are sufficient 10 show and explain the charitable compan¢s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure ihat the financial statements comply with the Companie5 Act 2006. They are also responsible for safe8uardin8 the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees confirm that: so far as each tru51ee is aware, there is no relevant audit information of which the charitable company's auditor Is unaware,. and the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit 5nformation and to establish that the charitable company'5 auditor is aware of that information. The trustees are responsible for the malntenance and integrity of the corporate and financial information included on the charitable company's webslte. Legislation in the United Kingdom governing the preparation and dissemination of financial staternents may differ from legislation in other jurisdictions. On behalf of the trustee5 Rob Date.. Company number: , Trustee 96990 Pa8e 11
Indepeth •udltov's r•port to the m•mbw5 •nd trust1•5 01 Uftl¥•r* Umlt•d We have audlted the financial statements of Brf8harn Young University Limlted Ilhe 'charttable companll fly the ar ended 31 r)ecember 2020, whlch comprise the 5tatemenl of Flnandal Artlvtties Ilntludln8 income and expendlturel. the 8alance Sheet. the Cash Flow statement and note5 to the financlal statements, induding 3 summary of Significant atcounting polioes. The finanoal reporting framework that has been applled in thelr preparation Is applicable law and Unlted ngdorn Accountln8 Stondards Indudlng Finandèl Reportin8 Standard 102,. The financial Reporting Standard apph'cable In the UK and Republlc of Ireland Iunlted Klngdom Generalty Accepted knountlng Practice). In our oplnlon, the finandal statements.. 8ive a true and fair eWOf the state of the charitable company's affairs as at 31 December 2020 and of Its incomln8 resources and applicatlon gf resourctt Includin& Its incoffle and expenditure for the year then ended. have been property prepared In accordance with Unlted ngdoM Generally ACpted Accountin8 Pracilce; and have been prepared In accordance with the requirements of the Companies Art 2. We have been appointed as auditor under the Cornpanies Act 2tl)6 and report in accordan Mth re8ulatlons made under that Act. We conducted our audit In accordance wSth Intematlonal Siandards on Audltln8 IUKI IISAS IUKII and appllcable law. Our le5pmbIlItIeS under those standards are further described in the'Audltorfs re4>onslbilities for the audrt of the finanoal staiements sertlon, of our report. We are independent of the tharktsble compafry in attordance with the ethlcal requirements that are relevant to our audit of the financial statements In the UK, IndudlnB the FRC'S Ethlcal Standard, and we have fulfilled our other ethlcal re5wnslbllltles In accordance wlth these requlrements. We befieve thal the audh evldence we have obtalned Is suffident and appropriate to pro¥ide a basis for our opinion. We are re5Wble f(Y condudin8 on the approprlatene5s ol the trustee5' Use of the goir4q con¢em basis of accountin8 aThl, based on the audrt dence obtained, vthether a matehal vncertainty exists related to events or Conditk thai may cast $18rtlfi¢ani doubt on the (haiitable Companls ablllty to continue as a 8oln8 concern. Il we cOrKIle that a material nrtaInty exists, we a fequlred to draw attention in our report to the related {rd0Sre$ in the financial statements or, rfsuth dlsdosures are inadequate, to modify the audltorfs opinion. r COndlOn5 are based on the audit evldence obtained up to the date of our report. However, future events or conditbns may cause the company to cease to continue as a going Concern. Page 12
1rnlepw Y•yt to th members and Int#S ol 8rlthrn Youni Urtl¥•rslty Umlt•d In our edaluati of the trustees. condusions. we consldered the Inherent rlsk5 a5soclated wlth the charitable cemparfs busin mrmtel Indudfj effect5 ari5in8 from macrooconomic uncertalntles such as Biexlt and Cthid-19, assessed and thallen8ed the reasonableness of estlmates made by the trustee5 and the relaied d15dowres and inalysed how those risks might affect the charitable company's financlal resource5 or ablllty to continue crfraiions oNEr the goi concem peAod. Based on the wryk we have perfornied. we ha not Identified any materlal uncert3intles relatln8 to events or ttv¥JitiMs thal irKliiridually or collective. may cast slBnificant doubt on the charitable companV5 abillty to t(Mtin as a gcmryg concem for a period of at least twelve months from when the financlal ststements are In audithrvd the finarKial statements, we have conduded that the trustees, use of the Boing concern basS5 of acctymtine in the preparation of the finanaal statements is approprlate. The responsibilities of the trustees wtth respect to Boing concern are described in the'Responsibilities of tnee5 fl thefinanual statemenW settion of this POrl The trustee5 are responsible for the other information. The other information comprises the informatlon induded In the Trustees. Report. other than the financial statements and our auditorfs report thereon. Our opinion on the finanoal statements does not covef the other information and, except to the extent othepwise expliatly stated in our report, Vlt do not express any fomi of assurance conclusion thereon. In connectlon wrth our audit of the finanual statements, our responsibility is to read the other informatSon and, in doing so. consider vthether the other inforn)ation is materially inconsistent with the financial statements or our knffiedge obtsined in the audtt or otherwise appears to be materially misstated. If we identify such material inconsistenaes or apparent material mi55tatements, we are required to determine whether there is a material misstatement in the finan¢ial statements or a material misstatement of the other information. If, based on the wyk we have perfomied. we condude that there is a material misstaternent of this other information, we are required to report that fart. We he nothin8to report in this ard. Oplnlon on otlr matters presuw by the Con¥)anl•s Art 2(X)6 In our opinion. based on the work undertaken in the course of the audit.. the informatlon given in the Strategic Report and the Directors, Report. Prepared for the purposes of company law, included in the Trustees. Report for the financial year for which the financial statements are prepared ts nSiStent wth the financlal statements. Page 13
Independent audltor's report to the members and trustees ol Brigham Young Unlverslty Limited the Strateglc Report and the Dlrettors, Report included In the Trustees, Report have been prepared in accordance with applicable legal Tequirements. Matter on whlch WÈ are requlred to report under the Companles Act 2006 In the light of the knowledge and understanding of the charitable company and it5 environment obtained in the course of the audit. we have not identified material misstatements in the Strotegic Report or the Dlrector5' Report included in the Trustees. Report. Matters on whlch we are requlred to report by e¥optlon We have nothing to report In respect of the following matters in latiOn to which the Companies Act 2C06 requires us to report to you if, In our opinion: adequate accountlng records have not been kept, or returns adequate for our audit have not been received from branches not visSted by us; or the financial statements are not in agreement wlth the accounting record5 and returns- or ertain dist105ures of trustees. remuneration specified by law are not made; or we have not recelved all the infomation and explanations we require for our audit.. of the trustees were not entitled to prepare the financial staternents in accordance with the Small companies regime and take advantage of the small companies exemption from the requirement to prepare a strategic report or in preparing the Trustees, Report. Responslbllltles of tfusteesforthe flnanclal statements As explained more fully in the Tru5tees' Responsibilitles Statement set out On Pa8e 11, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the flnanclal statements and for being satisfied that they give a true and fair vlew, and for such internal control as the trustees determlne is necessary to enable the preparation of financial statements that arè free from material misstatement, thether dueto fraud OT error. In preparlng the flnanclal statements, the trustees are responslble for a5sessingthe chariiable company's ability to continue as a 8olng concern, disc105ing, as applicable, matters related to Boin8 concern and using the golng concefn basis of accounting unless the trustees either intend to liquidate the charitable company or to ¢ease operations, or have no realistic altefnative but to do $0. Page 14
Independent audltor's report to the m•mb•rs •nd trustees of Brlgham Youn8 Unl¥erslty Llmlted AudStorfs responslbllltles for the audlt of the flnanclal statements Our oblectlves are to obtain reasonable assurance about whether Ihe finantial statements as a whole are free from material misstatement, whether due to fraud or error, and to Issue an auditorfs report that includes our oplnion. Reasonable assurance 15 a high level of assurance but 15 not a guarantee that an audlt conducted In accordance with ISAS IUKI will always detect a material mi55tatement when it ex15tS. Mlsstatements can arise from fraud or error and are consldered materlal If, indlvidually or in the aggregate, thev could reasonably be expected to Snfluence the etonomlc decislons of users taken on the basis of these financlal statements. A further descrlption of our responsibilities for the audlt of the financial statements Is located on the Financial Reporting Council'5 webslte at.. w4w.frc.org.uvaudltorsresponsibilltles. Thls desuiption forms part of our auditorfs report, Explanatlon as to what extent th• •udlt was ¢onsldered capable ol detertln8 Irregularltle5. IncludSn8fraud Irre8ularltles. Including fraud, are instances of non.compliance with law5 and regulations. We desl8n procedures In Ilne wSth our responsiblllties, outlined above. to detect material mi55tatements in respect of irreBularltle5. Including fraud. Owing to the inherent1SmitatSon5 of an audlt, there 15 an unavoldable rlsk that materlal misstatements in the flnanclal statements may not be detected, even though the audlt is properly planned and performed In accordance with the ISAS IUKI. The extent to which our procedure5 are capable of detectina Irre8ularitles, Includlng fraud Is detalled below.. We obtalned an understandlng of the legal and regulaiory frameworks that are applicable to the charitable company and the sector In whlch It operates. We determlned that the followlng laws and regulatlons were most SlBnlficant.' the Charlties SORP, the Charitle5 Act 2011, the Companies Att 2006, The FSnan¢ial Reportin8 Standard appllcable in the UK and the Republlt of Ireland IFRS 1021, and the Education Act 2(Kl2. We understood how the charltable companyls complying wlth these legal and regulatory framework5 by makin8 inquiries of management and those charged with 8overnance. We enqulred of managèment and those chalged with 8overnance whether there were any Instance5 of non-compllan¢e wlth law5 and re8ulatlons, or whether they had any knowledge of actual or suspee fraud. We corroborated the results of our enquirles through our review of board mlnutes, and through our legal and professional expenses review. We assessed the su5ceptlbillty of the company's financlal statements to rnaterlal mi55tatemenL includlng how fraud might occur and the risk of materlal overrlde of controls. Audlt procedures performed by the en8a8ement team included.. Identifyin8 and assessing the design effectiveness of certain controls rnana8ement has In place lo prevent and detert fraud Page 15
Indep•nd•nt audltor's r•port to the memb•rs and truste•9 of 8rliham Youni Unbverslty Umlt•d Challen8ln8 assumptlons and lud8ments made by management In Its sl8nlflcant accountln8 pollcle5 Identlfylng and testlng journal entrles IdentSfyln8 and testlng related party transactlons . Inspectlng the board mlnutes - Assessing the extent of MPlIanCe with the relevont laws and regulatlons as part of our procedures on the related flnancial statement Item The assessment of the approprlateness of the collectlve competence and capabllltles of the engagement team included conslderatlon of the engagement team's.. Understandlng of, and practlcal experlence wlth, audit engagements of o slmllar nature and complexlty through approprlate tialnlng and particlpatlon Knowledge of the Industry In whlth the charltable company operates, and Understandin8 of the legal and re8ul•tory requlrements speclflc to the entlty Includlng the provlslons of the appllcable le8lslatlon. The team communlcatSons In respÈtt of potentSal non-compllance wlth laws and re8ulatlons and fraud Included the potentlal for fraud In revenue recognltlon through manlpulatlon of Income. We dld not Identlfy any matters relatln8 to non-complSance with laws and re8ulatSon and fraud. In assesslng the potentlal rlsks of materlal mi55tatement, we obtalned an understanding of: . The charitable companvs operatlons, Includlng the nature of Its revenue Sources, to understand the c135ses of transactlons, accounts balances, expected flnandal statement disclosures and buslness rlsks that may result In rlsks of materlal m155tatement, and - The charltable compan¢s control envlronment, includlng Managemenys knowledge of relevant laws and re8ulatlon5 and how the charltable company Is complyln8 wlth those laws and regulatlons - The adequacy of procedures for auihorisatlon of transactlons and review of management accounts, and Procedures to ensure that P05slble breaches of laws and regulation5 are appropriately resolved Page 16
Independent •udltor's r•port to th• m•mber5 and trust• of Brl8ham Young Unlverslty Umlted Use ol our report Thls reportls rnade solely to the charitable companV5 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Art 2006. Our audit work has been undertaken so that we mlghi state to the charitable companV5 members those matters we are required to state to them Sn an audltor's report and for no other purpose. To the fullest ertent permitted by law, we do not accept or assume respon51bllity to anyone other than the charltable company and the charltable compJnVs members as a body. for our audlt work, for this report, or for the oplnlons we have formed. Wllllam Devltt Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants 8irmln8ham Date: 30 Spetembgr 2021 Pa8e 17
Brf8ham Youni Unlverilty Umlted Ststement of the financlal actlvltl¢s Ilndudlni Intome & expendltur• •c¢ount) for the ye•r Inded 31 DeCemr 2020 Yeai end 20x1 JI D•r4mbef 201• Ilhresirfrt¢d O•$4Trat•d hMd5 10t hj hJnd5 funds Tot•1 Funds 5%.L 116.rA3 $90,LYX) 116.(*J 9.620,721 101,293 9,620,711 101.29J 706,L%3 9.722,0)4 9,722,014 845Ai) 849.107 8S6.7SJ s.4iJ 3,69 819.107 8S6,75J 3,943 IfO.696 l¥•ffl•ni IA l•rth•y4•r 139.350) 13.6941 1143.0441 8A6S.2f lJ.94)1 Tthl fvfvdi kn¥htI•tsI 10.717.S70 144.$$1 IOA72.111 1,662.310 141.495 2.010.104 10,561.220 140.857 10,729.077 10.717.570 141.ssl 10.871.121 None of the tharlty's artlvltles dlscontlnued durln8 the above Iwo financlal years. The statement of flnanclal attltIeS Includes all galns and losses reco8n15ed In the year. The accountln8 pollcles and notes on pa8es 21 to 29 form part of these flnanclal statements. Page 18
Brigham Youni Unlverslty Llmlted Balanc• Sheet as at 31 December 2020 Yeai ended 31 Decembei 2020 Year ended 31 Decèmber 2019 Note Rx•d aiwts Tangible assets Totsi Rx•d 10.731.559 10,731,559 10.808.436 10.808,436 Cuirent 4$ts Cash at bank and in hand 123.782 95,876 TOL91 Ctsrrènt Assets 123,782 95,876 Cfadltois falllni due wlthln one year Amounts falling due within one yeaT 1126.1641 132.0911 Net (urr1 ass•ts 12.382 63.786 crltorS falllng due In more than one yoar Total assets less current Ilabllltlès 10,729.177 10.872,221 Th•Funds ofthè tharfty Called up share capital Unrestricted income funds De$8nated funds Itxi i(x) 10.727.570 144.551 10.588.220 140.857 Total th•Tlty funds 10.729, 177 10,872,221 The accounting policies and notes on pages 21 to 29 form part of these accounts. The account5 have been prepared in accordance with the provisions applicable to companies subject to ihe small companies regime. The financial statements were approved by the board of trustees and were signed on its behalf by: Rob Date: Company number: 01 . Trustee 96990 Page 19
brlRham YOU Unlverslty Umlted Statement of Cash Flows as •t 31 Deremljw 2020 Year ended 31 December 2020 Year ended 31 Decembèr 2019 Net lexpenditurel / income Depredats"on Increase in ueditors 1143.0441 165.667 94.073 116,695 8.861.317 151.911 10.281 9.023,509 Purchase ot property. plant and equiprnent 188.79) 188.79)) 9.1))4.8961 I9.14.8 réel (deue•se) Inush and ¢a5h ewjknlents In theye•r 27.5 18,613 Cash and cash egulvalerts ai (he beclnnlng olpeTlod Cash and ¢¥th equlvalentst the end ol perlod 9S.876 123.782 77.263 95.876 Page 20
8rlth•m Youni Unh•r•lty Umlt•d Account1 pglld A summary ol the ilBnlllcant accountln8 pollcies whith h¥t been applled conslstently. are as foll. Ll••h ol •f¢wntl The (In•nd¥l ststements hJ¥e been prepared In accordance wrth kowntlng and Reporting ty Charitles: Statement of Recommended Pr3ttlce applluble to charltles preparlng their accounts in accordance TAth the Flnandil Reportlni Stsndard$ appllcable In the UK and Republlc ol Iieland IFRS 1021 leffective l January 20191. ICharltle5 SOAP IFRS 10211, the Flnanc131 Reponln8 Stsnd3rd appllcable In the UK and Republlc of Ireland IFRS 1021 and the Companle5 kt 2006. Brl8ham Youn8 Unlverslty Llmlted meet5 the dellnltlon 013 publlc benefit ertlty under FRS 102. Assets and Ilabllltles are Inftlally reco8nlsed at hlstorlul C1 or transartlon value unless otherwlse staled In the relevant OUnt1nI poll(y notelsl. L•yl it•tUi of th• th•rlt•bl• c•mp•ny Tht charlty 1$ a prlvaie1Smlted company whlch15 re8lstered In En8land and Wales. Inwmlni r•wurc Incomeos reco8nlsed when the charlty has entltlement to the funds, any performance condltlons attached to the Itemlil of Inrne have been met, It Is probable ihat the Income wlll be leIved and the arnount tan be measured rellably. In¢ome li re¢elved frorn the company's sole sharehdder and member, Yrl8ham Young Unlverslty, to Pfovlde funds for the company's charltable aalvltles and to ensuie Ihat ihe company has adequate reserves. These donatloni are retelved as cash and are separately dlsclosed In the statemeni of flnanclal actlvltles and Income and expendlture Jccount. Amounts fecelved are calculated on a per student ba515 and are dlKlosed under Income from Charltable Actlvltle5, Addltlonally, donatlons are recelved from the company'5 member to provlde addltional fundlng and are not calculated on i per student bas15, but are to cover speclflc c0515. These donatlons are recelved a5 cash and are separately dl$¢losed In the statement of flnanclal actlvltles and Income and expendlture account. Amounts are dljdosed under Donatlons and leBacle5, Golni Con¢•rn The performance and flnancl31 posltlon of the entlty, It5 cashflows, and Ilquldlty Posltlon has been revlewed by the truJtee5 In118ht of the economlc condltlons arlslnB from the COVID 19 pandemlc ond Brexlt. Forec35ts and prole¢tlon5, t•kln8 account of reasonably posslble changes In performance, show that the entlty Is expected to be able to operate wlthln the level of Its current faclllty for at least the next twelve months. Furthermore, a5 a precautlon, the member has conflrmed In a letter of support, Its wllllngness to provlde support to ensure Ilabllltles can be settled 15 they fall due for at least 12 months from the date of thls report. The trustees therefore ¢onclude It Is approprlate to prepare these flnan¢lèl staternents on the golng concern ba515. Page 21
Brliham Young Unlverth Umlted Accountlni Fx>llcles Icontlnuedl for the year ended 31 December 2020 Expendltuie Expendlture is recognised once there is a legal or construrtive obligation to make a payment to a thSrd party. it 15 probable that the settlement will be requlred and the amount of the obligation can be measured reliably. Expenditure is tlassified Lbnder the following activity headings.. ChaTit3ble activities eypendlture comprises the dirett costs related to the achievement of the charitable oblettives and an analysis of these costs are provided in note 2. Governance costs are included within charitable activitie5 expenditure and are those eosts that relate to activities which provide the governance infrastructure which allows the charity to operate and to generate the information required for public accountability. Expenditure 15 recognised on an accruals basls. Uabllltles Future liabilitles are recognlsed when the charity has a legal or constructlve financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made. Tangible fixed a55ets and depreclatSon Individual fixed assets costing £6,OLX) or more are capitalised at cost. Depreciation is provided on all tangible fixed asset5, Other than freehold land, at rates calculated to write down each asset to its estimated residual value evenly over its experted useful life, as follows.. Freehold buildings bulldlng improvements Furnishlngs and equipment Vehicles 50 years 25 years 10 years 4 years Penslon contrlbutSons The Charlty contrlbutes to two pension schemes for employees. Employees hirefl before 2019 participate In a defined benefit scheme operated by The Church of Jesus Christ of Latter-day SaSnts (Great Britain). the Deseret UK Benefit Plans (see note 121. The fund Ss valued every three years by a professionally qualified independent actuary. with rates of contrlbutlons payable being determined by the actuary. In the intervening year5, the actuary reviews the continuing appropriatene55 of the rates. Pension costs are accounted for on the basis of contributlons made (lurlng the year or 3Ctrued at the year-end1S.e., on a defined contribution basis), as required by Financial Reporting Standard 102 Sertion 28 In tlrcumstances where The Charlty cannot identify with any degree of accuracy its share of the scheme assets and liabilitles. Employees hireil after 2018 are enrolled In a third-party defined contribution scheme adminlstered by Scottish Widows. The Charity provides no other past retirement benefits to its employees. The penslon contributions are therefore accounted for on the ba515 of a Ilefined contiibution stheme. The contributions are recoBnised an an expense in the SOFA when they fall due. Amounts not paid are shown in accruals as a liabllity in the Statement of Financial Position. Full detai15 of the De5eret UK Benefit plan are provided In the financial statements of The Church of Jesus Christ of Latter-day Saints IGreat Britain). Page 22
Brltham Youn8 Vnlverslty Umlted A¢countlni pollcles lcontlnuedl for the year ended 31 December 2020 Fund ac¢ountln8 Funds held by the charity are- Unrestrlcted funds- which can be used In accordance with the charitable objects at the discretion of the trustees. De518nated funds- set aside by the trustees out of unrestrSrted funds and are not avaSlable for other purposes or projects. Debtors Trade and other debtors are reco8nlsed at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and In hand Cash at bank and in hand include5 cash and Short term highly liquid investments with a short maturity of the months or less from the date of acquisitlon or openlng of the depo54t or similar account. Credltors Creditors are recognised where the charity has a present obllgation resulting from a past event that will probably result in the transfer or funds to a thlrd party and the amoLbnt due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. Flnanclal Instruments The charity only has financial assets and financial liabllltles of a klnd that qualify as basic financlal Instruments. Basic financial instruments are inltially recognised at transaction value and subsequently recognised at their settlement value. Judgements In applyln8 accountln8 pollcle5 and key sources of estlmatlon uncertalnty Preparation of the financial statements requires management to make significant judgements and estimates. There are no key assumptions concerning the futuie or other key source5 of estimation uncertainty at the reporting date, that have a si8nificant risk of causing 3 material adjustment to the carrying amounts of assets and liabllities wlthin the next financial year. Page 23
Brl8ham Youn8 UnS¥er51ty Llmlted Notes to the flnanclal statements for the year ended 31 December 2020 Incomln8 we¢• Interest income £14312019.. £2101 was derived from fund5 held in the bank accoun Donations of £192,89012019'. £571,902> were received from B YU In relation to pro8ram fundlnB for the students attendin8 pro8rams al the Charity's premises. The Sprin& Summer and Fall pro8rams were cancelled in 2020 due to the COVID 19 pandemK. Other income of £397.10912019= £9,048.849I wa5 received fr¢m 8ri8ham Youn8 University for the purpose of operating the centre without students durin8 the COVIO 19 pandemic. Rental Income of £IIS,92112019.. £101,083) was received from tenants in the newly purchased property at 31 Palace Court. The tennats will be allowed to complete their cuffent lease agreements, but tennancy will not be renewed goin8 forward. BYU Limited benefits from certain insurance coverages purchased by an affiliated entity. The afflliated entity does not pass on thls insurance cost to BYU Limited and is not able to specify the cost of the coverage for 8YU Llmlted. tharltsble Artlvltles 2020 2019 Program costs Starf Costs Depre¢iatlon Food and kitchen Supplies 3S,461 409,S21 165,667 22,191 35,715 330,366 151,911 83,827 È li Maintenance & repairs Taxes Utilities Motor vehlcle 4nd travel General office costs Telephone Other expenditure Support costs (audit feel 88,384 26,851 51,128 8,627 11,259 11,095 13,654 5,268 108,870 42,187 61,092 9,166 19,216 12,593 954 4,800 849,107 860,696 All of the above charitable costs COD5titute support costs and entirely relate to the provision of educational facilities. Expenditure on charitable artivities of £3,69412019-. £3,943) was from desi8nated funds and related to depreciation on buidlin8S transferred into the charity in 2013. Page 24
Brliham Young Unfverslty Llmlted Notes to ihe flnand81 ststÈments Iconttnuedl for the year ended 31 December 2020 N•t In¢orn•l•xp•ndllur•14Y th• ymr 2020 2019 Net Come/eXpnditUre for the yeai 1$ 5t•led ther C)181r.. Deweiiali¢ 165.667 151.911 Employ• 1020 2019 St•ff InlI•d durlryth• ywr W•8es and Salaries SrKial secwity C051S Otr penSiC costs 306,029 248.6C 26.385 SS.381 74,313 409,521 330.366 Noen¥Jloyees mphJyee berfrts in excessd E60,((1)12019.' nll. Pensi coAs •i¢vthol chw8ed to uMestr¢td furth. 2020 2019 Th• •¥•r•i• w•ekty of p•r¥m l•Kkndlry dM¢iml empknyed by (haiity the year w••.. OHKe athiThstrat*n and ¢leani Staff costs Includes termlnatlon payments of £38,977 whl¢h were accrued at the year end. Trustees. reMuneraon None of the trustees recelved any remuneratlon OT relmbursements from The Charity durin8 the year12019'. nlll. Key mona8èment p•rsonn•l The key management personnel of The Charlty15 the Academic Dlrector. The remuneratlon of the Academic Director is set by the Board of Trustee5 followln8 an annual review and is normally increased In line wlth Inflation and is consistent wlth Brigham Youn8 Unlversiws annual review proce5S. 5 Ta>tatlon The company Is a registered charity and as su¢h1s entltled to certain tax exemptlons on Income and proflts carrled on In furtherance of The Charlty's prlmary oblectlves. if any profits and surpluses are applled solely for charitable purposes. Page 25
Brlgham Youni Unlverslty Llmlled Note5 to the flnandal Statements l¢ontlnued) for the year ended 31 December 2020 6 Tan8lbk lIx assets i•d and INJiklin85 Furni5hiTrdS & EquipmeTrt Vehides Total I1Uary2020 Addrtions 31 L)ecember 2020 13.012070 59,359 20,4Tr) 13,092,629 88,7 20.4 13.181.419 .101.660 59,359 IJu3ry202Q Ch¥ge1ortheaW 2.232.731 31912 5936 37J48 19,550 2.284.193 165,667 2,449/E4) 2,391612 20.4L*J Met bo)k 31 Decernber 2020 10.710,048 21.511 10.731.559 31 Oecernber 2019 10.780,139 27A47 850 lo.8.436 05t of laThJ at 31 t)ecember 2020 was £5O17.64712019:£5A17.647I LaNI Is not deprecialod. Page 26
6rl8h•m Youni Unl¥•rslty Umlted Notes to the finandal stat•rnents Icontlnued) lof th• y••r end•d 31 D•cemb•r 2020 Crtdltots: Amounts fallltv4 due wllhln one year 2020 2019 Accruals 126,124 32,(1 Called up SI1 capll•l 2020 2019 Authorised l(M) ordlnary shares ol £1 each ITr) Allotted and issued I¢XJ ordlnary shares of £1 each 9 Analysls of ch•rltsbl• fund$ Unre5trlrtedfunds The 'free reserves, after allowlng for all designated funds. De51gnotedfunds Desl8nated for the value of unrestrlcted fund5 represented by bulldln8s owned and used by The Charlty on an on-8olng basis, that were tfansferied Into The Charity In 2013, 10 Relat•d party transctlons The sole shareholder an(1 member of The Charity15 Brl8ham Young Unlversity, a corporation Incorporated in the State of Utah, UnSted States of Ameilca. Related party transactions are detalled In note I to the financlal statements. Pa8e 27
Brf8h•m Youni Unlverslty Umlted Notes to the flnanclal statements Icontlnued) ft)r th• ye#f ended 31 OKember 2020 11 Ultlmate holdlng company The Charlty Ss a prlvate Ilmlted company that is Ilmlted by shares, all of which are owned by 8ri8ham Young Unlversltvi a corporatlon incorporated In the state of utah, United States of America. 12 Penslon and other post-employment commltments The Charlty partlcSpates In a penslon scheme operated by The Church of Jesus Christ of Latter-day Saints (Great Brltalnl, the Deseret UK Benefit Plans I"The Plan"). The scheme Is of the defined benefit type and Is funded by contributlon5 from the particlpating companie5 and thelr employees at rates determlned bv Independent actuaries In the light of regular valuations. Such contributions are held in trustee-administered funds completely Independent of Broup flnances. Full dlsclosure of the valuation is shown in the accounts of The Church of Jesus Chrlst of Latter-day Salnts (Great Britalnl. Since 2019, all new employees of The Charlty partlclpate In a thlrd-party pension scheme admlnlstered by Scottish Widows. The scheme is a defined contribution scheme and is funded by contributlons from the employees and The Ch3rlty. The assets of the scheme are held Separately from those of The Charity in Independently adminlstered funds. The Charity has accounted for the schemes as If both were defined contrlbutlon schemes because it Is not feèslble to 5pllt the assets and Ilabllltles of the Schemes between all the companles whose employees are members. Contrlbutlons to the scheme for the year were £74,31312019: £55,381). 13 Future flnance Brlgham Young Unlverslty has Confirmed that It wlll contSnue to provlde funds to support the Charlty's future actlvltles. Page 28
Brf8h•m Youni Unfverslty Umlted Notes to the flnandal statements Icontlnued) for the year ended 31 DKember 2020 14 Analysls ofRroup Mt assets between ndS Unrestricted Designated funds funds Total funds Tangible fixed assets C35h in bank and in hand Other net current assetsllliabilitiesl 10,590.702 123,782 1126.1641 140,857 10.731.559 123,782 1126,1641 Totsl 10.588.320 140.857 10,729.177 15 Group Accounts The largest group accounts that include Brigham Young University Limited are the accounts of The Corporation of the President of the Church of Jesus Christ of Latter4ay Saints. The smallest group accounts that include Brigham Young University Limited are the accounts of Brigham Young University. Brigham Young University is a private educational institution based iri Provo, Utah in the United States of America. The employer identific3tion number of Brigham Young Unlversity is 87-0217280. Page 29