Registered number: 01856248 Charity number: 290456
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Council of Management's report and financial statements
for the year ended 30 June 2025
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the charity, its Council of Management and | 1 |
| advisers | |
| Council of Management's report | 2 - 6 |
| Independent auditors' report | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 25 |
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Reference and administrative details of the Company, its Council of Management and advisers for the year ended 30 June 2025
Council of Management
Mr G Bennett Ms K Cameron Mr W Hoye (resigned 9 December 2024) Ms N Patnaik (appointed 23 June 2026) Mr G Hess (appointed 23 June 2026)
Company registered number
01856248
Charity registered number
290456
Registered office
The Honourable Society Of Gray's Inn 2 Atkin Building London United Kingdom WC1R 5AT
Auditors
Kreston Reeves Audit LLP Statutory Auditor Suite 2 Orchard House Orchard Street Canterbury Kent CT2 8AR
Bankers
The Royal Bank of Scotland 62/63 Threadneedle Street London EC2R 8LA
Page 1
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Council of Management's report for the year ended 30 June 2025
The Council of Management (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 IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited (the charity) for the year ended 30 June 2025.The Annual report serves the purposes of both a Council of Management' report and a directors' report under company law. The Council of Management confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
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.
Objectives and activities
a. Policies and objectives
The objects of the charity are to advance education by establishing or maintaining at or near London and elsewhere in England, an academic centre for the instruction of adult students in such fields of study as may be approved by the Council of Management. Moreover, the charity aims to foster and maintain collaborative partnerships with several British HE institutions.
The charity aims to support Institute for the International Education of Students, the USA based headquarters, by providing high quality academic study abroad programmes that foster intercultural development of students from colleges and universities based in the U.S. and other countries. The charity's main objective for the year was to maintain or increase student numbers while maintaining quality in academic offerings
The chief objectives of the Centre are to offer instruction for students as part of their university curricula, to enrol students in complementary courses in British institutions, and to facilitate their participation in co-curricular activities such as internships.
b. Strategies for achieving objectives
The charity's key strategies for achieving its objectives are to review programmes regularly in order to strive for greater excellence, to put forth greater effort in developing more Customised Programmes, to expand student numbers while improving the academic quality of the student body, to attract more students to direct enrolment options, and to develop new themed academic programmes. The charity measures the success of this strategy by regular evaluations conducted at the Centre and by carrying out a programme review every seven years.
People in poverty are not denied the opportunity to benefit from IES programmes and activities in London. For example, during the 2024-2025 fiscal year, IES Abroad committed more than $7.0 million globally, to its financial aid programmes as it firmly believes that financial limitations should not prevent a qualified student from participating in an IES abroad programme. This amount is expected to increase annually. All IES London students are eligible to apply for this aid. In addition, IES currently offers grants of $1,000 USD per student per term to public university students (using the U.S. definition of public universities), as well as scholarships based upon diversity or academic performance and financial need. Other eligibility requirements apply to all financial aid.
Page 2
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Council of Management's report (continued) for the year ended 30 June 2025
Objectives and activities (continued)
c. Activities undertaken to achieve objectives
The major area of activity is the provision of educational programmes to students through running of various academic programmes; such as our signature Study London Program concentrating in British Literature and Drama, International Business as well as studies in such fields as communications, history, sociology, political science, film, and women's studies. Other signature programmes are the Health Practice & Policy Programme, and the Theatre Studies Programme Business, Film Studies, Social Sciences and Sustainability, Literature and Arts. IES Abroad London also offers full-time internship programmes in the Fall, Spring, and Summer; as well as a number of London, Oxford and Cambridge based DE Programmes. Moreover, IES Abroad London organises and executes a number of faculty-led (CP) Programmes throughout the year for our consortium members. These run from 10 days, to an entire academic semester in length. Our internship and experiential learning opportunities enable students to gain work experience in British companies and charities, and other service providers whilst under academic supervision.
The Council of Management have considered and complied with the guidance on public benefit. In fact, in planning the objectives for the year, the Council of Management have ensured their compliance with the duty in s17 of the Charities Act 2011 and are mindful of the Charity Commission guidance on public benefit. The students benefiting from these activities include those receiving scholarships.
d. Public benefit
The Charity has met the public benefit requirement by educating adult students, housing adult students, and promoting intercultural competence and cultural exchange. These benefits also directly contribute to UK government strategy (the Prime Minister’s Initiative of 2006) to increase the number of international students in the UK, in recognition of the economic and cultural benefit that they bring to the country as a whole and the local community, as well as to improve links and create partnerships for UK institutions with international institutions. These benefits relate directly to the aims of the charity, which include establishing and maintaining in and around London, an academic centre for the education of adult students in various academic fields of study and collaborative partnerships with several British HE institutions.
Achievements and performance
a. Review of activities
IES currently works with the following partner institutions: University College London, Queen Mary University of London, City St. George’s University of London, London Contemporary Dance School (LCDS), Cambridge, Mountview Academy, and St. Catherine's College, Oxford.
In addition to their coursework, IES students, particularly those on the Health Practice and Policy Program, participate in various community activities, volunteer, and engage in service based experiential learning projects in the London area, which benefit members of the public and the needs of those less fortunate. These projects include volunteer work with local councils, conservation work, working with the homeless, and with those populations struggling with food security.
Page 3
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Council of Management's report (continued) for the year ended 30 June 2025
Financial review
a. Going concern
The Institute for the International Education of Students based in Chicago remains committed to providing the necessary funds and resources for the charity to continue in operational existence for the foreseeable future.
For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
b. Reserves policy
It is the policy of the charity to hold free reserves adequate to provide reasonable financial resource in light of the availability of support from Institute for the International Education of Students in Chicago.
c. Principal risks and uncertainties
The business activities of the charity are subject to events external to the charity’s control and financial results can vary dramatically from past trends. In particular, terrorist events, pandemics, and political and economic turmoil can adversely impact student enrolment. Also, dramatic swings in foreign exchange rates can limit student enrolment and excess student housing, due to fluctuations in student enrolment, may necessitate the use of a third party to sell unused beds, occasionally resulting in financial losses..
d. Transactions and financial position
The Statement of Financial Activities shows net expenditure for the year before of £105,823 (2024: net income of £977,270 ) and our reserves stand at £3,052,203 (2024: £3,158,026) in total
Structure, governance and management
a. Constitution
The charity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 16 October 1984.
b. Methods of appointment or election of Council of Management
The management of the charity is the responsibility of the Council of Management who are elected and co-opted under the terms of the Articles of Association.
c. Organisational structure and decision-making policies
The charity is organised so that the Council of Management meet once a year to review its affairs. There are at present 15 full-time and 5 part-time staff members at the IES Centre, led by Centre Director John Ockey. The Centre Director both sets the future direction of the programme and manages the day to day administration of the charity. Zosia Rutkowska as the Assistant Director & Head of Customised Programmes, overseeing the Centre in the Director's absence. On the academic programme, the Director is supported also by (Kayla Martin, Academics Manager & Miranda Hale, Direct Enrol & Academic Programming Manager. Also, the services of roughly 70 adjunct lecturers are utilised to teach the various courses of the programme, as needed. The average tenure among these faculty members is roughly 5 years. To note, John also serves as Cluster Dean of the Northwestern Europe Cluster (oversight of London, Amsterdam and Dublin centres).
Page 4
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Council of Management's report (continued) for the year ended 30 June 2025
Structure, governance and management (continued)
d. Policies adopted for the induction and training of Council of Management
New Trustees will undergo an orientation session to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association (the governing document), the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction session they will meet key employees and other Trustees.
Ongoing, Trustees review their training and update needs and take steps necessary to ensure that appropriate training processes are in place..
e. Pay policy for senior staff
None of the Council of Management are remunerated by the charity. The charity’s staff did undergo performance reviews in the summer and inflationary based raises were issued. The raise pool historically amounts to inflation over the prior year plus one percent and pending a positive performance review, merit-based raises are usually effective 1 July annually..
f. Related party relationships
The charity relies upon support and income from Institute for the International Education of Students. Details are set out in note 23 to the accounts.
g. Risk management
The Council of Management have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate its exposure to such risks.
Plans for future periods
IES Abroad London remains poised to expand its breadth and scope within its current programmes and has launched its new Business Programme while creating a number of programmes under the Study London program umbrella. To support its growing operations, IES Abroad London has also expanded its partnerships to include Mountview Academy and expanded its curriculum and hired a number of new faculty.
Approach to fundraising
The charity's main source of income is tuition fees received from Institute for the International Education of Students based in Chicago. As a result, the Council of Management do not consider it necessary to undertake any activities to raise funds from the public in order to fulfil the charity’s objectives.
Page 5
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Council of Management's report (continued) for the year ended 30 June 2025
Statement of Council of Management's responsibilities
The Council of Management (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Council of Management's 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 Council of Management to prepare financial statements for each financial . Under company law, the Council of Management 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 Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Council of Management are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Council of Management are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Council of Management at the time when this Council of Management's report is approved has confirmed that:
-
so far as that member of the Council of Management is aware, there is no relevant audit information of which the charity's auditors are unaware, and
-
each member of the Council of Management has taken all the steps that ought to have been taken as a member of the Council of Management in order to be aware of any information needed by the charity's auditors in connection with preparing their report and to establish that the charity's auditors are aware of that information.
Auditors
The audit registration of Kreston Reeves LLP was transferred to Kreston Reeves Audit LLP on 6 October 2025. Kreston Reeves Audit LLP were formally appointed to the company on 6 October 2025.
The auditors, Kreston Reeves Audit LLP, have indicated their willingness to continue in office. The designated Council of Management member will propose a motion reappointing the auditors at a meeting of the Council of Management.
Approved by order of the members of the board of Council of Management and signed on their behalf by:
Mr G Bennett
Member of Council Date: 29 June 2026
Page 6
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Independent auditors' report to the Members of IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
Opinion
We have audited the financial statements of IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited (the 'charitable company') for the year ended 30 June 2025 which comprise the Statement of financial activities, the Balance sheet, the 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:
-
give a true and fair view of the state of the charitable company's affairs as at 30 June 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company 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 Council of Management's 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 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 Council of Management with respect to going concern are described in the relevant sections of this report.
Page 7
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Independent auditors' report to the Members of IES London, The London Centre of the Institute for the International Education of Students (Illinois) 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 Council of Management 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:
-
the information given in the Council of Management's report for the financial year for which the financial statements are prepared is consistent with the financial statements.
-
the Council of Management's report has been prepared in accordance with applicable legal requirements.
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 Council of Management's 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:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of Council of Management's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the Council of Management were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Council of Management's report and from the requirement to prepare a Strategic report.
Responsibilities of the Council of Management
As explained more fully in the Council of Management's responsibilities statement, the Council of Management (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 Council of Management 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 Council of Management are responsible for assessing the 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 Council of Management either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 8
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Independent auditors' report to the Members of IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited (continued)
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:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the charitable company and its sector, and through discussion with the Council of Management and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Statement of Recommended Practice, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
-
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety, anti bribery and employment law) and fraud, and review of the reports made by management; and
-
Assessment of identified fraud risk factors; and
-
Challenging assumptions and judgements made by management in its significant accounting estimates; and
-
Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
-
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
-
Reading minutes of meetings of those charged with governance; and
-
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
-
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Page 9
(A company limited by guarantee)
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
Independent auditors' report to the Members of IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited (continued)
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council of Management.
-
Conclude on the appropriateness of the Council of Management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
James Peach FCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves Audit LLP
Statutory Auditor
Canterbury
30 June 2026
Page 10
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) for the year ended 30 June 2025
| Note Income from: Charitable activities Investments 6 Other income 7 Total income Expenditure on: Charitable activities 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2025 £ 8,710,000 6,453 58,597 8,775,050 8,880,873 8,880,873 (105,823) 3,158,026 (105,823) 3,052,203 |
Total funds 2025 £ 8,710,000 6,453 58,597 8,775,050 8,880,873 8,880,873 (105,823) 3,158,026 (105,823) 3,052,203 |
Total funds 2024 £ 8,569,750 10,022 377,840 8,957,612 |
|---|---|---|---|
| 7,980,342 7,980,342 |
|||
| 977,270 | |||
| 2,180,756 977,270 3,158,026 |
All activities relate to continuing operations.
The Statement of financial activities includes all gains and losses recognised in the year.
In 2024 and 2025, all income and expenditure related to unrestricted funds.
The notes on pages 14 to 25 form part of these financial statements.
Page 11
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee) Registered number: 01856248
Balance sheet as at 30 June 2025
| Note Fixed assets Tangible assets 11 Investments 12 Current assets Debtors 13 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 14 Net current assets Creditors: amounts falling due after more than one year 16 Total net assets Charity funds Unrestricted funds Total funds |
2,678,585 325,184 3,003,769 (470,534) |
2025 £ 676,400 2 676,402 2,533,235 (157,434) 3,052,203 3,052,203 3,052,203 |
2,642,432 295,616 2,938,048 (531,181) |
2024 £ 751,157 2 |
|---|---|---|---|---|
| 751,159 2,406,867 - |
||||
| 3,158,026 | ||||
| 3,158,026 | ||||
| 3,158,026 |
The Council of Management 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.
The financial statements were approved and authorised for issue by the Council of Management and signed on their behalf by:
Mr G Bennett Member of Council Date: 29 June 2026
The notes on pages 14 to 25 form part of these financial statements.
Page 12
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Statement of cash flows for the year ended 30 June 2025
| Note Cash flows from operating activities Net cash used in operating activities 18 Cash flows from investing activities Purchase of tangible fixed assets Net cash provided by/(used in) 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 19 |
2025 £ 29,568 - - 29,568 295,616 325,184 |
2024 £ (244,749) (76,071) (76,071) (320,820) 616,436 295,616 |
|---|---|---|
The notes on pages 14 to 25 form part of these financial statements
Page 13
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
1. General information
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited is a company limited by guarantee, incorporated in England and Wales.
The registered office is The Honourable Society Of Gray's Inn, 2 Atkin Building, London, England, WC1R 5AT.
The objects of the charity are to advance education by establishing or maintaining at or near London and elsewhere in England, an academic centre for the instruction of adult students in such fields of study as may be approved by the Council of Management. Moreover, the charity aims to foster and maintain collaborative partnerships with several British HE institutions.
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.
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The charity's functional and presentational currency is pounds sterling.
The charity's financial statements are presented to the nearest pound.
2.2 Going concern
The charity's main source of income is tuition fees received from the Institute for the International Education of Students based in Chicago, which is considered to be the ultimate controlling party.
The Institute for the International Education of Students has indicated that it intends to provide such funds as are necessary for the charity to continue in operational existence for the foreseeable future.
Accordingly, the Council of Management continue to adopt the going concern basis in preparing the annual report and accounts.
2.3 Company Status
The company is a company limited by guarantee. The sole member of the company is The Institute for the International Education of Students. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.
Page 14
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
2. Accounting policies (continued)
2.4 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Fees from the Centre activities are adjusted by amounts paid to or supplemented by the Institute for the International Education of Students in Chicago.
Housing fees are accounted for on an accruals basis and so income received relating to future accounting periods is deferred.
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.
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
2.6 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.7 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 Statement of financial activities.
2.8 Tangible fixed assets and depreciation
Tangible fixed assets costing $5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
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 charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
| Short leasehold property | - over the remaining life of the lease |
|---|---|
| Furniture and equipment | - 20% straight line |
| Computer equipment | - 33.3% straight line |
Page 15
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
2. Accounting policies (continued)
2.9 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
2.10 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.
2.11 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 three months or less from the date of acquisition or opening of the deposit or similar account.
2.12 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 Company 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 Statement of financial activities as a finance cost.
2.13 Financial instruments
The Company 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.
2.14 Operating leases
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
2.15 Pensions
The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.
2.16 Summer School expenditure
Expenditure incurred on the Summer School is carried forward to the following year when the related fee income is received in the Centre.
Page 16
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
2. Accounting policies (continued)
2.17 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Council of Management in furtherance of the general objectives of the Company and which have not been designated for other purposes.
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 Company 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.
Critical areas of judgment:
The charity has entered into a range of lease commitments in respect of property and equipment. The classification of these leases as either financial or operating leases requires the Council of Management to consider whether the terms and conditions of each lease are such that the charity has acquired the risks and rewards associated with the ownership of the underlying assets.
The useful economic life of fixed assets and residual value is estimated by the charity in order to depreciate the fixed assets within the accounts. When determining the useful economic lives of fixed assets and residual value the charity takes into consideration the following factors; historical experience, industry standards, technological advancements and the specific characteristics of each asset. The useful economic lives of fixed assets and residual value are reviewed periodically to ensure that the estimate remains relevant and reflective of the assets usage and condition.
4. Net incoming resources / (resources expended)
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 74,757 | 74,757 |
| Auditors' remuneration - audit | 19,700 | 18,575 |
| Auditors' remuneration - non audit services | 13,521 | 14,685 |
| Operating lease rentals - office equipment | 12,243 | 11,482 |
| Operating lease rentals - land and buildings | 430,350 | 367,764 |
Page 17
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
5. Income from charitable activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2025 | 2025 | 2024 | |
| £ | £ | £ | |
| Provision of educational programmes to students | 8,710,000 | 8,710,000 | 8,569,750 |
| 6. Investment income Unrestricted funds 2025 £ Bank and other interest receivable - UK 6,453 7. Other incoming resources Unrestricted funds 2025 £ Lease incentive income 58,597 |
Total funds 2025 £ 6,453 Total funds 2025 £ 58,597 |
Total funds 2024 £ 10,022 |
|---|---|---|
| Total funds 2024 £ 377,840 |
Page 18
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
8. Expenditure on charitable activities
| Academic support costs Student housing and meals Student services Rent Building facilities management repairs Property insurance Other building costs Telecommunications Professional costs Administration costs Bank charges Wages and salaries National insurance Pension cost Depreciation |
2025 £ 1,853,794 4,101,091 487,340 345,295 121,939 630 139,019 24,500 54,878 63,955 12,788 1,410,262 132,989 57,636 74,757 8,880,873 |
2024 £ 1,762,981 2,987,411 393,391 692,152 104,780 820 265,451 53,067 117,220 80,047 1,995 1,276,887 116,020 53,363 74,757 7,980,342 |
|---|---|---|
Page 19
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
9. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2025 £ 1,410,262 132,989 57,636 1,600,887 |
2024 £ 1,276,887 116,020 53,363 |
|---|---|---|
| 1,446,270 |
The average number of persons employed by the Company during the year was as follows:
| Administration Academic |
2025 No. 19 41 60 |
2024 No. 18 36 |
|---|---|---|
| 54 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2025 | 2024 | |
|---|---|---|
| No. | No. | |
| In the band £60,001 - £70,000 | 1 | 1 |
| In the band £70,001 - £80,000 | 1 | - |
| In the band £170,001 - £180,000 | - | 1 |
| In the band £180,001 - £190,000 | 1 | - |
10. Council of Management's remuneration and expenses
During the year, no Council of Management received any remuneration or other benefits (2024 - £NIL) .
During the year ended 30 June 2025, no Council of Management expenses have been incurred (2024 - £ NIL) .
Page 20
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
11. Tangible fixed assets
| Cost or valuation At 1 July 2024 At 30 June 2025 Depreciation At 1 July 2024 Charge for the year At 30 June 2025 Net book value At 30 June 2025 At 30 June 2024 12. Fixed asset investments Cost or valuation At 1 July 2024 At 30 June 2025 |
Short leasehold property £ 792,521 792,521 100,959 53,197 154,156 638,365 691,562 |
Furniture and Equipment £ 105,065 105,065 45,470 21,560 67,030 38,035 59,595 |
Total £ 897,586 897,586 |
|---|---|---|---|
| 146,429 74,757 221,186 |
|||
| 676,400 | |||
| 751,157 | |||
| Unlisted investments £ 2 |
|||
| 2 |
Page 21
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
13. Debtors
| Due within one year Other debtors Prepayments and accrued income |
2025 £ 1,311,385 1,367,200 2,678,585 |
2024 £ 707,859 1,934,573 |
|---|---|---|
| 2,642,432 |
14. Creditors: Amounts falling due within one year
| Other taxation and social security Other creditors Accruals and deferred income Total deferred income Deferred income at 1 July 2024 Resources deferred during the year Amounts released from previous periods |
2025 £ 97,566 45,711 327,257 470,534 2025 £ - 314,867 - 314,867 |
2024 £ 30,990 - 500,191 |
|---|---|---|
| 531,181 | ||
| 2024 £ - - - |
||
| - |
15. Taxation
The charity has no taxation liability for the year ended 30 June 2025 (2024 - £nil)
16. Creditors: Amounts falling due after more than one year
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 157,434 | - |
Page 22
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
17. Financial instruments
| Financial assets Financial assets measured at amortised cost Financial liabilities Financial liabilities measured at amortised cost |
2025 £ 1,311,385 2025 £ 313,101 |
2024 £ 707,859 |
|---|---|---|
| 2024 £ 531,181 |
Financial assets measured at amortised cost comprise of other debtors.
Financial liabilities measured at amortised cost comprise of other taxation and social security creditors, other creditors and accruals.
18. 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 Increase in debtors Increase in creditors Net cash provided by/(used in) operating activities Analysis of cash and cash equivalents Cash in hand |
2025 £ (105,823) 74,757 (36,153) 96,787 29,568 2025 £ 325,184 |
2024 £ 977,270 |
|---|---|---|
| 74,757 (1,436,568) 139,792 |
||
| (244,749) | ||
| 2024 £ 295,616 |
19. Analysis of cash and cash equivalents
Page 23
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements for the year ended 30 June 2025
20. Analysis of changes in net debt
| Cash at bank and in hand | At 1 July 2024 £ 295,616 295,616 |
Cash flows £ 29,568 29,568 |
At 30 June 2025 £ 325,184 325,184 |
|---|---|---|---|
21. Pension commitments
The group operates a defined contribution 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 £57,636 (2024 - £53,363).
22. Operating lease commitments
At 30 June 2025 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2025 £ 3,081,727 2,087,386 3,744,045 8,913,158 |
2024 £ 528,824 2,099,323 4,260,465 |
|---|---|---|
| 6,888,612 |
Under agreements signed by the Charity and a third party, the Charity will receive a contribution of £157,433 towards their operating lease commitments due within 1 year, and a further contribution of £157,433 in respect of operating lease commitments due in 1 - 5 years.
Page 24
IES London, The London Centre of the Institute for the International Education of Students (Illinois) Limited
(A company limited by guarantee)
Notes to the financial statements
for the year ended 30 June 2025
23. Connected Charities and Ultimate Controlling Party
The Institute for the International Education of Students based in Chicago, was founded as Institute for European Studies in the USA in 1950 as a private, non-profit educational institution sponsoring collegiate study programmes in Europe. As at 30 June 2025 there were more than 140 academic programs located in Europe, Asia, South America, Australia, New Zealand and Africa, including a centre in London.
The London Centre of the Institute for the International Education of Students (Illinois) Limited is a company incorporated in the United Kingdom and limited by guarantee. During the year, it received tuition and student housing fees of £8,710,000 (2024 - £8,569,750) from the Institute for the International Education of Students of 33 W. Monroe St, Suite 2300, Chicago, Illinois 60603-5405, USA, which is considered to be the ultimate controlling party.
The Institute for the International Education of Students in Chicago has undertaken to provide adequate support to finance the company's operations.
There were no other related party transactions in the current or prior year.
Page 25