Charity reglstratlon number 0281859 Company re9istration number 01508550 (England and Wolesl THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION Tru$iees Rithard Day Robert Kidd John Rudd Richard Stewart MBE John T￿rnan Katherine Wdls Mthael West (Appointed 22 Augusl 20231 Secretary Philip Hopkins Charlty number 0281859 Company number 01508550 Chlef execuilv• Philip Hopkir Registered office 33 Palmeira Man$￿$ Church Road Hove East Sussex 8N3 2GB Audltors Friend-james Limited 4th Floor. Park Gate 161-163 Prest￿ Road Brighton East Sussex BN1 6AF THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE CONTENTS Trusté•5' faport Statement ol Irust&e5' rèsponsibilities Indepondenl atjdilorfs report statement of finandal actIvit￿S 10 Statement of financial positk)n 11 S¢al•m•nt ol cash llows 12 Noles to the finanual statements 13-24 THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Irustees present their rew)rt and a¢¢￿￿tS lor the year ended 31 December 2023. Thè accoun¢s have been prepared in accordan￿ with Ihe acctyjnting rKdi(#es set rAJt in note 1 to the accounts and comply wrth the charitys Memorandum and Artides of Association. the Companies Act 2006 and 'A￿UntIng and Reporting by Charities.. Staternent of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard appliCa￿e in the UK and Republic of Ireland IFRS 1021" las amended for acctyjnting periods commencitvj Irom 1 January 2019} Objectives and actlvfjtres The charity's object and its prinupal aclivity tontinues to be that of providing educatsonal services to fO￿￿Jn Students, including Ihe provisi￿ of scholarships and the dèvelopment of materiaL% and methods of t8athing English as a foreign language. The airns tsl the charity are the 8(fvancement of education for the public benefil through: the teaching of English as a foreign language. promoting int8rcultural understanding and èncouraging appreciation ol the different ways we all live. think and learn. the instrtutson and organisatitsn of charilable scho￿$ for teaching English as a fO￿￿Jn language in the UK. the provisron o15cholatships and the devewient ol materia15 arKI methods of teaching English as 8 forewJn language. The CO￿ values of the thanty in fvtrtherance of its objects are.. Exc•llen¢e: to offer ihe h￿hest standards in teaching. training. ser¥ices and facilities. Integrity.. to be honest. fair and ethical in all relationships. Innovation: bdieve in constanuy wwing and deveh)ping our tead)ing. faiilibes. $8Mces and staff. Respect.. endeavour to treat everyone equalty and with respecl. urKler5tanding that everyone Is unique with different needs and different g)81s. Collaboratlon: recognise Ihe im[￿anCe of working and s¢udying I£￿ther. as a team. All of the chanty's activities a￿ Charttable. Any finanrial surplus is available to fund futu￿ developments ol the charity In pursuit of ils objects. The ¢nJst88s have paid due ￿98rd lo guidance issued by the Charity Comrniss￿n in deciding what activities the charily should undertake. The activities a￿ budgeted to meet the charivs needs at the expected ￿¥81 of students. THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Strat•glc report Achl•¥¢ments and p•rlorman¢• 2023 was once ag8in better Ih8n for8casl ￿th the charity go￿ra1•n9 a grèater than expedgd surplus. Strsdont numbers at the three schools. an improvement on 2022. had to be capped cixnpared with p￿￿0Vid due to more limited availability ol teachers and hosi families. Hi9her student numbèrs. c£*nb"nued tl9ht controls over spending and a bett8r than exp6ct•d a418d to the better than forfrcast surplus. The ¢harily continued to provide scholarships and granls to widen access and support local. national, and inlemalional organisations in accordance wrth its charitable objects. The charity provided tuition scholarships for Ukrainian refugees at all 3 schools and offered 2 scholarships lo enable overseas teachers of English lo attend Ihe IATEFL Ilnternalional Association ol Teachers of ENJlish as a FOre￿n Language) conference. The chaflty continued lo support the loral community by offering subsidisèd rental ol classrooms lo local educational organisalions in Bnghton in the evenings leg Phibsophy Soo8ty1 and to Sussex Oyn Centre for Ex8min•tions to run C8rnbrid9è ESOL examinalM)ns. Th•r• continued to be 8 goc4J numb•r of govemrnent Sp￿$￿r•￿ students (through regK•naVnational governmont programm85 in SaLtili Arabia and Omanl and a small number of teachèrs sludying on ov$rs•as t•achers' developmfjnl courses land General English) wth funding from tha Eu's Erasmus+ programmè. Flnanclal r•vl•w The Ststemenl of Financial Activtties shows 8 ¥Ufplus of £182.68712022' surplus of £212.745I and unr8strkt8d lund8 Stand at £583.70512022'. £354.5911. Tho freehold land and buildings were revalyed in 2018. The ￿SerV& $tÈnds at £S.844.286 12022.. £5.844.2861. Totsl r¢¥erv•s 8t 31 Oecember 2023 wefe £6.427.991 12022.. £6,254.3041. Th8 InJ31••$ 8r• sats'sfied that the n¢ussary finance and $yst•m8 arn in place to onabl• the charity lo mainthin rinoncial suslalnabllily. The trustees have approvtrd the raiKJnalbsati¢)n of borrowings wilh Ihè aim ol ensurin9 the luturè of the charity. The trustees reviewed the Gh8rity's res•Nes policy. The charity has a policy of h￿dIng sufficient reserves lo fund major refurbi$hm8nl works io updale the thr88 cenlres and their properties. This Is ongoing wort and il i¥ expected that a similar18vel of roseMs will be required in th• lutura. The trustees ha￿ a poliry in pla¢? that any tamporary cash surplus is held in an in¢erest-beanng account. Plan8 for th• fvture The main focus for 2024 is to continue lo build a Sustainab￿ recov8ry Iwar the corning years, f8cruitin9 new acad8rn1¢ and admin slalf lo comfortably manage the increasè in bwkings as well as managing the excellenca and investing more money in necessary maintenance of Infrastructu￿ and achievin9 the best possible oulcomes in th8 British Council inspections at a113 schools. The charity ￿11 foDJs on rts corg rnnge of courses and educational seryices and maintabning presence in Ihe market. Stru¢tur•, govemonce and management Tho charity is a company limited by guarantee and 15 th•relore governed by a memorandum and artidas of assooxalion. Thè Legal and Administr8tiv• Infomialion pag8 lorms parl of this reprmi. The fnJ8lee$, who are also the dire￿r9 lor the purkM)se of company law, and who seNed during the year and up to the dale ol signature of the financial slatements weTr'. Richard Day Robert Kidd John Rudd Richard Stewart MBE THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT IINCLUDING DIRECTORS. REPORT AND STRATEGIC REPORn (CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2023 John T￿rnan Katherine Wells Michael West (Apwnted 22 Augusi 20231 None ol the Iruslees has any beneficial interesl in the ¢omp￿Y. All ol tho truslees a￿ mèmbtrrs of the company and guarantee lo contribute £1 in thè èvent of a ￿ndIng up. Th8 Board of Trusts•s requir48 brtradth ar￿ depth of experience to cary ils duts'gs ellectlvgty and eNicienty. The recwitm8nl of suilable persons with tho tim¢ available lo giv• is always a difficult task. However, th& tru$tso$ w$k to èn$uTt Ihal th• I￿lO￿ng altribules are represented arn￿98t its membgrs.. Legal b8ck9round Fin3nci811 acctyjnling •Xpèri￿c Education exptsnence . Business experience al a Senior management level Diverse b8¢kgrounds Tho trust￿$ r8c8ivo support wth training wh•r• appnjpriate. The trustees are responsible for the ¢)verall managem•ni of th• charity and Ma￿ at l&ast Iouf times each year. All Iruslèès giv• ol Ihair tim8 Ir88ty and r•￿1¥* no remuneration or olher benefil from their WO￿ wilh Ihg ch8rfty. The truste88 determine the general Folicy ol lh* tharity. Th• day to Oay runnSng of Ihe charity is delegaied to the ehi*l exècutive and the sonior management team. The ch￿1 executive and the senTror management tèam undertake the key leadership role overseeing educaiional, empbymènt and admlnistra14ve functions. Thé chiel exeeulivè is invited lo attend meetings ol the Irustee8. and the th18f execvbve has al$0 undartakèn tha role of company secretary. Key management r¢muneral1￿ is set by a Committ•• appoint&d by the board induding 8Xtern&l advisors. The trvslees have assessed the major ri5kg to whiGh the charty is exposéd. and ar• satisfied that systems are in placè to mitigatè èxposurè to thè major risks. The charity has a policy (o cover all exlernal insurable risks. Internal risks ale minimised by the irnplemenlal￿n of pr(￿￿d￿re$ for atrthorisation of all transactions and projecls. These procedures are peri()di￿LlY reviewgd to ènsurè Ihai Ih8y Slill m••t tha needs ol the charfty. Ther8 are no active conneclad charlts.es with whom the charity has malerial transadions. A•s•t eov•r lor lund• Tho funds of Ihè charity afè 811 unrastrlcted for charitable purposes. These assets are considered sufficienl to rneel the charily's obligalKJns. Employ•• In¥ol¥•m•nt Applicalvns for employment by disabled persons are a￿lay5 lully considered, beanng in mind the aptitudes ol the applicant conc6mod. In the event of members of siaff becoming disabled. gvery gffort is mad? to ensure ihat their employment W7lhin the charity continues arKI Ihal the appropnaie iraining is arranged. It is the policy of th8 charity that the training. Career development and promotion of disab18d persons should. as far as possiblo. b& idenlical to Ihal of Olher employees. Audltor In 8CCOfdance wth the company's artides. a ￿901￿￿On proposir4J that Friend￿arneS Limited be reappointed as auditor of the company will be put at a General Meeting. THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT> (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Dlsclosur• of inforniation to audttor Each of the trustees has ¢onfirrned that ￿)e￿ is informatitin of which they are awa￿ which is relèvant to the audrt, but of which the auditor is unaware. They have further confirmed Ihat they have taken appropriate steps to idenb.fy such relevant infofmation and to 8siablish that the auditor is aware of such inf0rn8ti0n. 51oes' report. induding Ihe strategic report, was apwoved by the Boanl of Trustees. Rlch Trust Dated". rd Stewart 8E THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees. who are also the director5 of The English Language Centre lor the purpose of company law. are responssble for preparing the Trustees, Report and the financial stalements in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingclom Generally Accepted Accountsng Pract￿81. Cornp8ny Law requires the trus¢ees to prepare financial statements for each fir)ancial year which give 8 true and fair view ol the state of affabrs of th8 charty an¢J of the Incoming resoLbrces and application of resources. induding the income and expenditur8, of the charitable o)mpany for that year. In Pfeparing these financial slatements, Ihe trustees a￿ require(I to.. - select suitable aceounling poliaes and then apply them consistenlty: - obsetve the methods and principles in thè Charities SORP.. make judgements and estimates that are reasonable an¢J prudent.. 8tat8 wh8th8r applicable UK A¢￿￿ntIng Standards ha￿ been lollowed. $ubiect to any malerial departur85 disclose¢J and explained in the financial Statel￿ents." and - prepar8 ihe firbancial statements on the g(M'ng rA)ncem basis unless it is inappropriate to presume that the charity vhll continue in operation. The trustees are responsible for keewng adequate acwunting records thai disclose with reasonable accuracy al any time the financial position of the charity and 8nable theffl lo ensvfe that the fmanual statements comply wth the Companies Act 2006. They a￿ also respons1t￿e lor safeguarding the assets of the charity and hence fo¥ taking reasonable steps for the pr8V8nbon and detectK*n of fraud and other irregulanbes. THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ENGLISH LANGUAGE CENTRE Oplnion We have audiled Ihe financial slatemenls of The English LarwJuage Centre Ithe 'charity'l for the year ended 31 December 2023 which comprise Ihe statement ol financial actiwb'e5. the siatemenl of financial position, the statemenl of cash flows and notes to the financial statements. including significant accounting pOI￿leS. The financial reporting framework that has been applied in their p￿paratIon ¢s applicable law and United Kingdom Accounting Standards. including Finanal slalements arè authorised for issu8. Our responsibilities and the ￿SponsIbl11￿es of the trusteès ￿SpeCt lo gryng corthm arè describod in Ihe relevant sections of this reporL Other Intom)atlon The other information o)mprises the Inforn￿tion included in Ihe annual report, other than the accounts and our auditor's repori thereon. The t￿Stee5 are responsible for the other inft>rmation. Our opinion on the aGGwniS does not cover the other information and we do no¢ express any form of assurance condusion th8reon. In connection with our audit Ol Ihe accounts. our responsibility is to read the other inforrn8tion and. in doing so. consider whether the other Infomation is matenally inconsistent wi¢h the a¢cxJunts or our k￿￿edge otstained in the audit or otherwise appears to be materialty misslated. Ir we ideniify such material inconsistencies or apparent rnaterial mi55tatements, we are required to dete￿nine vthelher the￿ is a mat8ri81 misstatement in the acwunls or materi81 misstalement of the other infomiab"on_ Ir. based w the work we have perfomied, we corbclude that there is aterial misststement of this other inf0m￿tion. we are required ¢0 report that facl. We bave nothing to report in this regard. THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ENGLISH LANGUAGE CENTRE Opinions on other matter5 prescribed by the Companits A¢t 2006 In our opinion, based on the work undertaken in the ¢OUf5e of the audit.. the information given in the trustees, report, which indudes the directors. report the strategic fgP(Kt prepared for the purwses of company law. for th8 financial year for which the finanrAal Statements are pr8pared is consistent with the financial statements., and . the directors. report and the strategic report induded wlhin the ¢nJste8s' rèp)rt has been pfvpared in accordance with applicable legal requirements. Matters on which we are required to r•port by excoptlon We have nothing to report in respect ol the folk)wing mallèrs in relation to which the Companies Act 2006 requlre Lts to report to you il. in our opinion.. the information given in the financial Str¢err￿lS is inconsislent in any material respect with the truslees. report". or sufficient accounting records have not been kept.. or the finanoal statements are nol in agreemenl wilh the accovnbng re(x)rds- or the trustees were not entived to prepare the finanrial stalements in aco)rdance wilh the small companies Tegime and take advantage of the small companies. exemptions in P￿paring the trustees. ￿POrt and from the requirement lo prepare a strategic report. R•$ponsibiliti•s of tru$t¢es As explained more fully in the trustees. responsibilities stalement set out on page S, the tnjsiees (who are also the directors of the charit8bl8 company for the purposes of company lawl ale responsibl8 for the preparation of the financial ststement5 and for being satisfied that they give a tru8 and fair wew. and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that a￿ fr88 frorn material misstalement. whether due io fraud or error. In p￿parIng thè financial statèments. the trusiees a￿ responsible for ass•ssing the company s ability to continuè as a going cOn￿M. disclosing. as applicable. matters relaled to going concern and using the goirKJ concem basis of accountin9 unles5 the trustees either intend to liqu￿ate the o)mpany or to cease operations. or have no realistic attemative but to do so. Auditorfs responslbllitie$ for the audit of the financial statements Our objectives are to obtsin reaSona￿e assurance aboul whethet the finantial stalements as a whd8 are fre8 from material misstatement. whether tjue to fraud or error. and to issue an auditofs reptrrt that indudes our opinion. Reasonable assLJrance is a high level of assurance but is not a guarantee that an audbt conducted in 8ccordance with ISAS IUKI will a￿VaYS detect a material misstatement when il exists. Misstatemenis can aiise from fraud or error and are consmlered malenal rf. individually or in the agg￿gate. ¢hey could reasonably be expected io influence the econom￿ deusion5 of users taken on the basis of th858 financial statements. Irregularities, includin9 fraud. are instances ol non-compliance with laws and regulations. We design procedures in line with our responsibilities. oulined above. to detect malerial misslalemenls in ￿SpeCt ol iryegularities. Including frdud. The extenl to which our procedures a￿ capa￿e of detecting irregularities. including fraud is detailed below". THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ENGLISH LANGUAGE CENTRE Ext¢nt to which the audit was considered capabl• of d*t*¢lit)g irregularities. includong fraud Our approach to ￿entIfyIng and a55e551ng the nsks ol material misststemenl in respect ol Irregularities. including fraud and ntsn-compliance with laws an¢J regulatsons. was a5 Idlows.. the engagemeni partner ensured Ihal the eng8ggment team collectsvely had the approprial8 comp8tsnc•, capabilities and skills lo idenlity or recognisg non-compliance with ￿p￿icable laws and regulations.. we id8ntifi8d th* laws and r8gulations applicable to th8 company thftsjgh discussions with dir8ctots And oth•r manègem8nt, and from our commerrial knowledge and èxp8rienc6 of the charity and education s•clor.' we focused on specific laws and regulats.ons which we considere(I may havè a direct material effecl on th8 fin8nci81 st8tements or tha operations ol the company. induding Companies Act 2￿)6. iaxalion 189islalitsn. data protection, anli-bribery and employment. We also reviewed the Com￿lance with education règulatory bodies such s 8ritish Counul loi acC￿dItat￿In and Independenl Schools Inspect￿ate. ' we assessed the eytent of ￿MplIanCe Wth Ihe laws and feguL8tions ￿￿tIf1&d ab￿ through maklng 8nquirl8s 01 management and insp8Cting legal eorrespondenc8'. and * identifiéd laws and regulauons were communicated ￿th1fi ifie audil teaffl re9uI•Fly and t￿ team remained 8lert to Instances ol non•cOM￿lance throu9htsut the audrt. We asse53ed ihe 3usceplibility ol the company's fin8nty•l st•t•m•nts lo matenal missl8ttrm•nt. Including obtaining an understanding ol how fraud might occur. by.. . making enquiri•s of management as lo bthere Ihtry ¢onsNYered there was susceptibility lo fraud. their knovAe¢Jgè ol actual. suspected and allege(I Iraud., considering thg Internal controls in place lo miitg8te nsks of fraud and non-comFlionc• with laws 8nd re9uIAlions', nd To 8ddreJ$ the risk of fraud through man898￿nI bias and overyhle ol g)ntro1$. w•.. ' perforrned analytical procedures to identity any unusual or urffjxpected rèlallonships., tested joumal •ntries to identify unusual transacti)ns'. • invastigaled Ihe rationale behind $gnificanl or unusual trons•ctths.' and In response to Ihe ri$k of irregularities and nonnal semces rendered during the yeaf. Fees are recogn¢s8d as students commence their course. Fees inv04ced in advance are included wthin deferr8d income an amounts are subsequently released to income from charitable actiwt*s as services are provided over the dur8tion of a course. During Covid bckdowns the charity held open Ihe OPp￿InIty for sludents to rebook and use the fees that were forteiled as part of any rebookin9 process. There was no refijnd due however it was granted as a gesture of gi)odwill. The Charity has d8ts1 v•hl¢l•¥ Cost or valuatlon Al 1 JanuBry 2023 Disposals 7,865.000 349,463 13,788 8,228,251 113,7881 113,7881 At 31 Dec•mb8r 2023 7.865,000 349.463 8,214.463 O•pr•¢latlon and Imp*lrm•nl At 1 January 2023 Oepreciallon charged in ihe year Eliminattrd In r•$po¢t of dlsposals 207.732 44.044 349.463 12,756 65 112,8211 569.951 44,109 112.8211 At 31 December 2023 251,776 349.463 601.239 Carrying amount Al 31 December 2023 7.613.224 7,613.224 Al 31 December 2022 7.657.268 1,032 7,658.300 In 2017 the tharty adopted Ihe accounbThJ policy ol rev8luatiw for FregtrM)Id land and twjildings. The valualion in May 2018 was ￿r￿artaken by prolessionally qualified valuers who ests'mated fair valu8 tsking Into accounl the most effective way to effect a sgb. At 31 December 2023. had the revalued asset5 beèn carriéd at historlc cost less accumvlated deptyciation and accumulated impairrnent1055es. their carrying amount would have been approximalely £1,268,643 12022- £1.268,6431. 19- THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Tanglble fixed a••et• {Contlnu•dl 8arday5 Bank PLC hdd thar99s over 31 & 33 Palmeira Mans*)ns. 40 Salisbury Road and 35 Church Rood, Hovo, East Sussèx. The trusttres consider that the fair value of Lqrbd and buiklin9s is not m8terialty different from the earying value. 11 8ub$ldlarl•• The Charity also hav8 sol* own8rship ol Easii)oumè School of English Limitèd. a dormant company Ilmitad by guarantee. Tho registered office for this ￿rnpanY is 8 Trinity Tr669. Easlboume. Sussex. BN213LD. Nam• of und•rtaklng Reglst•r•d offic• Natur• ol busln•$* Class ol shar•¥ hgld •A Hèld Dlr•ct Indlr•ct English In Chester Limited 33 Palmelra Mansions, Hov&, Englant1. 8N3 2GB 33 Palmeira Mansions. Hove. England. BN3 2G8 Donnanl Or(linary 100.00 Stanley Plae• (Holdings) Limited 0￿M￿nt Ordinary 10000 12 Stoekx 2023 2022 Finished good¥ and goods lof resale 1,224 971 13 D•btorn 2023 2022 Amount$ fallln9 du? wlthln on• year: Trade debtors Other ¢Jetslors 149.395 285.889 350,271 181,714 43S.284 531.985 THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Loan8 and overdrafts 2023 2022 Bank loans 665.188 1.115.050 Payable within one y•ar Payablo after ona year 112,019 553,169 748,407 366,643 Amounts included above which fall due aftw five years.. P8yoblo by inst8lments 36.510 93,763 Thg lon9-lenn loans are secured by fixed Charges ov?r the ¢omp•nl3 propert*¥. 15 Cr•dltor•: •mount• f•lllng wlthln one y••r 2023 2022 Not•• Bank loans Other taxation and sorial securtty Delerr•d incom• Paymants rèctri￿d on ac￿nI Tr8dg ¢redilors 14 112.019 55.147 415.376 8SS.862 356.923 748.407 49,351 600.229 633.966 390.674 1.595,327 2.422.627 16 Cr•dltors- •mount¥ f*lllng due *ft•r mor• th•n on• y••r 2023 2022 Not•s Bank loans 14 553.169 366,643 17 0•f•rr•d Ineoffl• Deferred income comprises lees Invo￿ad in advance of $8ry4ces provid•d for studènt ccvJws. Amo¢Mts are released to income trom charitable activilies over the duratk)n of a course. Deferred income balance as at 1 January 2023 was £6(KJ.229. The amounl released to ineomè in the ￿riod, earned from charitable adivitses was £600.229. The amount of deferred income in the yeai and the￿fOre the balance as at 31 December 2023 was £415,376. 21 THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Pentlion and other po$t- retirement benefit commitmonts A defined ¢onlribution scheme provided by Scoitish Wi¢Jow5 15 available lo the charitqs siaff, the employer contribut>on rate being 6?/•. The penswjn charge for the year includes Conthbutions payable of £49.855 12022.. £ 33,747}. At the year-end t11.96312022.' £9.7691 was ac(xued in respect of contributN)ns to this stheme. The charity also parti¢ipales in the Teachef5' Pertsion Scheme ￿ PSI. an unfund8d d8fined benefit sd)eme. Under the definitions sel ¢Jut In FRS 102. the TPS is a multi-empk)yer pension scheme. The charity is unable to identify Ils share ol the underfying assets and liabilitie5 of the scheme. Accordingly. the charity has taken adv8nla9e of the exemption under FRS 102 and has accounted for its contributions as If Il were a ijefine eontnbution scheme. Contribuli￿$ on a pay as you 90 b8SIs are credited to the exchequer under arrangements governed by the Sup8rannuatK)n Acl 1972. A notwy)al asset value is ascribed to the scheme for the purposes of detemining contribution rates. The pension charge for the year indud8S Contributions payabl6 to the TPS 01 £33.49512022.. £36,914). At thè year-erbd £5,03812022.. £4.7981 was acuued in ￿SpeCI of (x)ntributions to this scheme. The employer contribution rate is Set following scheme Valuat￿n$ undertaken by the Govemment Actuary Department. rhe latest valuation ￿port was prepa￿d on 31 March 2020 and was published on 26 October 2023. This report confimed tha¢ the employer conlribution rate is currenuy 23.68% but rising to 28.6¥. from April 2024 until 31 March 2027. tndusive ol the administrat￿ charge. 19 Designated Funds This was a legacy from Robert O'Neil which was designated by Ihe trustees. This has been spent in line with th8 donors wishes. At 1 January 2023 Resourcas 8xpendod At31 D•¢•mber 2023 46.427 {46.4271 46.427 {46.4271 Pr•vlous year: At 1 January 2022 Resources exp•nd•d At31 D•c•mber 2022 46.427 46.427 THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Unre$tri¢led funds The unrestricted funds ol the charity compris8 the unexpanded balances of donations and grants which arè not subject to specific condrtions by donots and grantors as to how they may be used. Thèsè include desvJnaled funds which have been sel aside out ol unrestricted lunds by the InJstÈe$ Iof specific purposes. At 1 J*nu•ry 2023 In¢omlng r••ourv• R•sour¢e• •xpond•d At31 D•¢•mb•r 2023 General fur￿5 6.198.877 3,818.307 13.569.193) 6,427,991 Pr•vlou• yejr.. At 1 J•nu•ry 2022 Incomlng ruourc•s R•%oure•* •xptnd•d At31 D•¢•mb•r 2022 General funds 5.986.132 3.000.105 {2,787,3601 6.198.877 21 An4ly¥l¥ ol net a88•t8 ￿t￿*•￿ fvnd• Unr••trl¢l•d UnTestrlct*J D&$ignal•d lund• lunds lunds 2023 2022 2022 Total 2022 Fund balance5 al 31 Oe¢ernb¢r 2023 oro represented by.. Intangible fixed assets Tangl￿e assets Current assèlsllliabiliti•sl Long lerm liabilitses 268.083 312.763 7,613.224 7.658.300 {900.1471 11.405.$431 {553,1691 1366,6431 312,763 7,658,300 46.427 11.359.116) 1366.6431 6,427.991 6.198.877 46,427 6.245,304 22 Op•ratlng l•ase commltments Al the rgporting gnd date the charity oulstanding commitments for luturg minimum ￿ase paymenls under non-cancellabl& operating leases. which f811 due a5 lolk)ws'. 2023 2022 Wilhin one year 4,461 -23- THE ENGLISH LANGUAGE CENTRE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 23 R•lat•d party transactions Remun•ratlon ol k•y management p•rsonng1 The remungration ol key management p8rS(m￿el i¥ 85 folkA￿. 2023 2022 Aggregat8 compensation 284,509 266.777 There wtrr* no othèr r•latèd party trnnsaclions in the wnod to disd0￿. 24 Cash g•n•r•l•d fr?m opgratlon• 2023 2022 Surplus f¢y th• yéar 182,687 212,745 Adjustments lor". Depr8u81ion and impalmi•nt ol langibl8 fixed aS￿ts 88.789 89,068 Movernenls in worklng ¢apital'. Ilncrèaseydecrease in slo¢k5 O•creBsellincreasel In debtors {Decreasellin¢re8sè In creditors Ioecreasevincrease in delerrèd income 12531 96,701 16.0591 1184,8531 606 1352.1461 443.779 88.330 Cjsh g•nerat•d from op•ratlon• 177,012 482,382 25 Analy•l8 ol chang•• In net Idebtvfunds At 1 J•nuary 2023 C•8h At 31 O•c•mb•r 2023 Cash at bank and in hand 530.555 1271,883} 258.672 Loan5 falling due within onè yèar Loans falling due after mor• than one year 1748,407) 1366,643) 636.388 1186.5261 1112.0191 1553.1691 IW.4951 177,979 1406,5161 24_