2021-12-31-accounts

ASHRIDGE (BONAR LAW MEMORIAL) TRUST

ANNUAL REPORT FOR THE YEAR ENDED

31 December 2021

Charity Registration Number: 311096

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

CONTENTS

	Page(s)	Page(s)	Page(s)
Legal and Administrative Details	3
Report of the Corporate Trustee	4	7
Statement of Corporate Governance and Internal Control	8	10
Independent Auditor s Report	11		13
Consolidated Statement of Financial Activities	14
Balance Sheets	15
Consolidated Statement of Cash Flows	16
Notes to the Financial Statements	17		30

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

LEGAL AND ADMINISTRATIVE DETAILS

Trustees

The governance of Ashridge (Bonar Law Memorial) Trust is managed by Ashridge CT Limited, a Corporate Trustee.

Ashridge CT Limited directors Mr Ulf Sandberg Mr Ajay Gundecha Mr Jeffrey Allen Charity number 311096 Registered office Ashridge Berkhamsted Hertfordshire HP4 1NS Actuary Mercer Tower Place West Tower Place London EC3R 5BU Independent auditors Knox Cropper LLP 65 Leadenhall Street London EC3A 2AD Bankers Lloyds Banking Group plc Progression Centre 42 Mark Road Hemel Hempstead Hertfordshire HP2 7DW Santander UK plc 2 Triton Square London NW1 3AN

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

Report of the Corporate Trustee for the year ended 31 December 2021

The Corporate Trustee is pleased to present the audited annual report together with the consolidated financial statements of Ashridge (Bonar Law Memorial) Trust (the Trust) for the year ended 31 December 2021.

The Corporate T Reporting Standards 102 and Charities Act 2011. Office for Students regulations have also been complied with since registering during May 21.

The aims of Ashridge

Ashridge (Bonar Law Memorial) Trust was constituted as a charitable trust by the Ashridge (Bonar Law Memorial) Trust Act 1954, as amended in 1983 and 2014 (the Act).

The principal activities of the Trust are defined by the Act:

• Provide education at Ashridge

• Undertake research and disseminate the results to the public

• Establish and continue similar institutions overseas

These activities are undertaken by the Trust using the name of Ashridge. The Trust also had a wholly owned subsidiary during the year - see notes 3 and 8 of the financial statements for details. The trading subsidiary undertook specialist activities closely related to management education as follows:

• Ashridge Educational Services Ltd provided executive and organisation education to corporate clients.

The Corporate Trustee referred to the guidance contained in the Charity Commission's publications on public benefit when reviewing aims and objectives. They then considered how to maximise the contribution of planned activities to those aims and objectives as follows:

Provision of education

As a leading centre for management and organisation learning, the Ashridge vision is to make a substantial contribution to the development of managers, their organisations and society at large.

The activities undertaken to assist this development deliver public benefit in a variety of ways. Ashridge's clients include organisations in the public sector, corporate entities, and individual private students in pursuit of a UK degree.

Research

The purpose of research at Ashridge is to make a wider intellectual contribution to business practices overall, and a deeper contribution to certain academic and professional fields, as well as to continuously improve education for students and executives. Co-creating knowledge with leaders, managers and policymakers in private, public, and volunteer organizations is a hallmark of this strategy. So is the aspiration to catalyse innovation and be a partner in life-long learning. Ashridge has its roots in management practice, applied scholarship and social responsibility, and the research is designed to leverage these roots and its vast network of connections with private, public and volunteer organizations. The public benefits from Ashridge research as it is widely distributed and freely available.

Establishment of similar institutions overseas

Ashridge delivers a proportion of its services outside the UK through its corporate clients. Some contracted faculty are based abroad.

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Report of the Corporate Trustee for the year ended 31 December 2021 (continued)

Achievements and performance

In performing its activities Ashridge has run educational programs for more than 179 clients and 1,126 students with 64 students graduating during the calendar year 2021.

In addition, research at Ashridge has contributed to the academic debate through publishing 121 books, articles, reports and conference papers during 2021.

Financial review

The result for the year ended 31 December 2021 was a net income of £575k (2020: £87k) for Ashridge (Bonar Law Memorial) Trust. This surplus was slightly better than the forecast breakeven result.

The total reserves of the Trust on 31 December 2021 was £24.8m (2020: £16.6m). The total reserves include a designated Research Fund £10m (2020: £10m), a restricted Restoration Fund £81k (2020: £81k) and unrestricted free reserves of £14.7m (2020: £6.5m).

The main driver of the increase was the actuarial defined benefit pension scheme revaluation gain of £7.2m of Ashridge Pension Scheme vs. 31 December 2020.

requires 3 months of unrestricted reserves to enable it to meet its charitable objectives. At 31 December 2021 the Trust held unrestricted free reserves of £14.7m to comply with this policy.

Plans for future periods

Profitability for future periods is due to improve further due to the growth in apprenticeship and degree programmes.

The transition to a virtual learning environment during COVID-19 lockdowns has enabled the Trust to offer this as a flexible learning option to students and in March 2022 the Trust launched its first exclusively online programme for a new AMEC intake.

Investment in new limitless learning classrooms at the beginning of 2022 also enables our programmes to be taught onsite and virtually. This is increasingly popular for the existing apprenticeship students as it offers more flexibility.

Going concern

The effect of COVID-19 has been assessed by the Corporate Trustee, reviewing the ongoing forecasts and projections to ensure that the organisation remains financially viable. There are no material uncertainties that the Trust would not be able to meet its liabilities as they fall due for the foreseeable future.

The Trust has an excellent liquidity position at 31 December 2021 with £11.6m cash available. Consequently, the Trustee has continued to prepare the financial statements on a going concern basis.

Principal risks and uncertainties

The Corporate Trustee has examined the major risks that the Trust faces and have documented these in a risk register, which is updated on a periodic basis. The Trust has developed systems to monitor and control these risks to mitigate any impact that they may have on the Trust in the future.

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Report of the Corporate Trustee for the year ended 31 December 2021 (continued)

Ashridge received an OFSTED monitoring visit in June 2021 for apprenticeships. The outcome of the report has impacted the ability for Ashridge to receive government funding for new apprenticeships until OFSTED is able to conduct a full inspection (expected mid 2022). Ashridge has not received funding for new apprentices from August 2021 but continues to receive funding for existing students. The deficiencies identified are the need for increased student support and safeguarding, and an efficient student information system. Ashridge is investing heavily to rectify these deficiencies before the full OFSTED inspection.

Most of the qualifications revenue relates to apprenticeships which is funded through the Education & Skills Funding Agency, as a government agency we deem the collection of this revenue to be low risk. The Trust may experience collection delays from tuition of independent students, collections are being monitored closely and graduation will only take place once all fees are settled.

The conflict between Russia and Ukraine is considered to be a potential risk since February 2022, this is being monitored closely but so far has not had an impact on the Trust.

The Corporate Trustee and executive team no longer perceive COVID-19 as a prominent risk. The operational disruption during 2021 was limited as education was maintained and carried out online, however it will continue to be monitored and UK Government advice will be followed.

Strategic objectives

Ashridge has identified the following strategic aspirations in relation to its core objects, to be:

• One of the top five global providers of customised executive education

• Being known as the place that knows about coaching

• Leading specialist in strategic organisational change and development

• Compact, differentiated, highly regarded qualifications portfolio

• All business streams integrated with facilitated learning over the web.

• Having a faculty noted for practical yet rigorous research that is widely available

Ashridge is one of few Association to Advance Collegiate Schools of Business (AACSB), the European Quality Improvement System (EQUIS) and the Association of MBAs (AMBA) and the objective is to retain these accreditations going forward.

Governance

Ashridge (Bonar Law Memorial) Trust was constituted as a charitable trust by the Ashridge (Bonar Law Memorial) Trust Act 1954, as amended in 1983 and 2014, and is governed by this act.

Ashridge CT Limited acts as the governing body of the Trust through its own board of directors which meets regularly.

The day-to-day management of Ashridge is undertaken by the President who is appointed by Ashridge CT Ltd. The President has delegated authority for finance, employment, and other operational matters.

Related parties

None of the directors of Ashridge CT Limited nor any persons connected with them, had at any time had any beneficial interest in dealings with the Trust and received no remuneration from the Trust.

Ashridge has subsidiaries and other related parties during the year ended 31 December 2021 as per below:

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Report of the Corporate Trustee for the year ended 31 December 2021 (continued)

Ashridge CT Limited

Ashridge CT Limited was incorporated in 2015 and appointed as Corporate Trustee of the Trust with the objective to comply with the Act. The directors of Ashridge CT Limited are independent of the Trust in order to ensure there are no conflicts of interest.

Ashridge Historical Trust

The member of Ashridge CT Limited is the Ashridge Historical Trust. The trustees of the Ashridge Historical Trust are independent of the Trust and Ashridge CT Limited in order to ensure there are no conflicts of interest.

Ashridge Educational Services Ltd

Ashridge Educational Services Ltd is controlled through share ownership by the Trust and was incorporated on 16 December 2019.

The Ashridge Pension Scheme

The Ashridge Pension Scheme is a post-employment benefit plan for the benefit of employees of the Trust. Until 2002 the Trust offered final salary pension entitlement to all Ashridge staff through membership of the Ashridge Pension Scheme.

Pay policy for senior staff

The pay of the senior staff is reviewed annually. In view of the nature of the charity salaries are benchmarked against pay levels in other comparable educational institutions.

Key management personnel

President Dr Stephen Hodges Chief Finance Officer Mrs Emilie McCarthy Chief Operating Officer Mr Mark Coleman Chief Academic Officer Dr Johan Roos Dean of Faculty Dr Dina Dommett Associate Dean Mr Andrew Hyams Senior Director of Research Miss Nadine Page

Disclosure of information to Auditors

The Corporate Trustee confirms that:

• there is no relevant audit information of which the Trust

• it has taken all the steps that ought to be taken in order to make himself/herself aware of any relevant audit information and to establish that the Trust

The report of the Corporate Trustee was approved by the board of directors of Ashridge CT Limited and signed on their behalf by:

Mr Jeffrey Allen Director Ashridge CT Limited

17 May 2022

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Statement of Corporate Governance and Internal Control for the year ended 31 December 2021

This Statement of Corporate Governance and Internal Control covers the period for the year ended 31 December 2021 and up to the date of approval of the financial statements.

Governance

Ashridge (Bonar Law Memorial) Trust was constituted as a charitable trust by the Ashridge (Bonar Law Memorial) Trust Act 1954, as amended in 1983 and 2014, and is governed by this act.

Ashridge CT Limited acts as the governing body of the Trust through its own board of directors. Appointment to the board are matters for consideration by the board of directors as a whole and are based on the expertise and skills brought by the individuals involved. The directors receive further training in trustee meetings as required. No induction training was required as there were no new directors during the year.

The members of the board of directors are listed within Legal and Administrative Details. The constitution of the board ensures that no individual dominates the decision-making process and that it can exercise its responsibilities free from management.

The boards regulatory and stewardship responsibilities centre on its role as the ultimate legal authority and for safeguarding the , its financial sustainability, and receiving assurance that its systems comply with the legal and regulatory obligations, including as a Charity, the Office for Students and OFSTED.

The board of directors schedule to meet a few times a year. Formal agenda, papers and reports are supplied to the board in a timely manner prior to the board meetings. Briefings are also provided on an ad-hoc basis. Reports include overall financial performance of the Trust together with other relevant information such as performance against targets. The board review and approve the financial statements and receive and consider reports from regulators such as OFSTED and Office for Students, and monitors adherence with the regulatory requirements.

Minutes of board meetings are recorded and approved at the following meeting.

The day-to-day management of Ashridge is undertaken by the President who is appointed by Ashridge CT Limited. The President has delegated authority for finance, employment, and other operational matters.

Corpo

The Corporate Trustee is responsible for the preparation of annual financial statements that provide a true and fair view of the state of affairs of Ashridge as at the end of the financial year and of the financial activities during the year.

In preparing the financial statements the Corporate Trustee is required to:

• Select suitable accounting policies and apply them consistently

• Observe the methods and principles in the Charities SORP

• Make judgements and estimates that are reasonable and prudent

• State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

• Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business

The Corporate Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy of the financial position of Ashridge at any time and to ensure that the financial statements comply with relevant statutes.

It is also responsible for safeguarding the assets of Ashridge taking reasonable steps to prevention and detection of fraud and other irregularities.

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Statement of Corporate Governance and Internal Control (continued)

Internal Control

The Corporate Trustee is responsible for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives. The system of internal control is designed to manage, rather that eliminate, the risk of failure to achieve policies, aims and objectives through corruption, fraud, bribery and other irregularities. It can therefore only provide reasonable, but not absolute, assurance against material misstatement or loss.

The system of internal control is based on a continuous process designed to identify the principal risks to the achievement of policies, aims and objectives; to evaluate the nature and extent of those risks; and to manage them efficiently, effectively, and economically. This process accords with the Office for Students guidance.

The system uses a framework of regular management information, administrative procedures including segregation of duties, and a system of delegation and accountability. It includes:

• Comprehensive budgeting systems with an annual budget which is reviewed and agreed by the board of directors

• Regular reviews by the board of directors of periodic and annual financial reports which indicate financial performance against forecast

• Setting targets to measure financial and operational performance

d by a number of policies. These include a Risk Register, an AntiBribery and Corruption Policy, a Modern Slavery Act statement, comprehensive internal financial policies and regulations which detail financial controls and procedures.

The Corporate Trustee has the responsibility for reviewing the effectiveness of the system of internal control and ensuring that there is a sound approach to confirm that this framework is adopted and embedded consistently and effectively across each activity.

The review of effectiveness of the system is informed by:

• The work of external auditors;

• The work of senior managers within the organisation who have responsibility for the development and maintenance of the internal control framework; management letters and other reports.

There are no significant internal control weaknesses reported for the period.

The board of directors has delegated its day-to-day responsibility to the President, as Accounting Officer, for reviewing the adequacy of the system of internal control and making any appropriate amendments. He is also responsible for reporting to the board any material weaknesses or breakdowns in internal control. The day-today responsibility for risk management and monitoring is assigned to the Chief Finance Officer and Chief Operating Officer.

The Trust has considered its responsibility to notify the Education Skills Funding Agency of material irregularity, impropriety and non-compliance with Education Skills Funding Agency terms and conditions of funding.

The board of directors and the Accounting Officer confirm that after due enquiry and to the best of their knowledge, it is able to identify any material irregularity or improper use of funds by the organisation, or material non-compliance with terms and conditions of funding under the organisations financial regulations. We confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date, if any instances are identified after the date of this statement these will be notified to the Education Skills Funding Agency.

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Statement of Corporate Governance and Internal Control (continued)

Approved by the Corporate Trustee and the President and signed on their behalf by:

Mr Jeffrey Allen Director Ashridge CT Limited

Mr Stephen Hodges President Ashridge (Bonar Law Memorial) Trust

17 May 2022

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

TRUST

Opinion

1 which comprise the consolidated statement of

financial activities, the consolidated and Charity balance sheet, the consolidated cash flow statement and notes to the financial statements, 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:

• s affairs as at 31 December

• 2021

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

• where applicable, funds from whatever source administered by the provider for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;

• where applicable, funds provided by the OfS and by Research England have been applied in accordance with the relevant terms and conditions; and

We have nothing to report in respect of the following matter in relation to which the OfS Accounts Direction requires us to report to you if, in our opinion:

• the Group 4 to these Financial Statements has been materially misstated.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable audit of the financial statements section of our report. We are independent of the Group and the Parent Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including ical 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 related to going concern

In auditing the financial statements 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 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Report of the Corporate Trustee, other than

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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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion;

• the information contained in the financial statements is inconsistent in any material respect with the Report of the Corporate Trustee; or

• adequate accounting records have not been kept by the Parent Charity; or

• the Parent Charity financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustee

As explained more fully in the Cor preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Corporate Trustee either intends to liquidate the Group or the parent Charity or to cease operations, or have no realistic alternative but to do so.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act[s] and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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:

• The Group and the Parent Charity are required to comply with charity law and certain conditions of OfS of their activities, we identified that the legal requirement to accurately account for restricted funds was of key significance.

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• We gained an understanding of how the Group and Parent Charity complied with their legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls.

• The audit team, which is experienced in the audit of charities, considered the Group and Parent the risk of management override.

• Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions.

A further description of our responsibilities for the audit of the financial statements is located at the Financial part of o

Use of our report

matters we

body, for our audit work, for this report, or for the opinions we have formed.

Knox Cropper LLP, Statutory Auditor 65 Leadenhall Street London EC3A 2AD

Knox Cropper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Consolidated Statement of Financial Activities for the year ended 31 December 2021

15 ASHRIDGE (BONAR LAW MEMORIAL) TRUST Balance Sheets as at 31 December 2021 Group Trust P4ote 2021 2020 2021 2020 ossets.. Snvestments in subsidiaries Total ffixed as5et5 Current 055et5.' Debtors Cash at bank and in hand Tol61 currenl as5etS 5,295 11.637 16.932 6,971 10.027 16,998 5.295 11.637 16,932 6.777 10.027 16W4 Creditors". amounts tslling due within one year Net wrrent assets io 13.9561 12.976 13.9441 13.054 13,9561 12.976 13.7501 13.054 Total assets less￿rrent Hobthtks 12,976 13.054 12.976 13A154 USS defined benefit pension scheme provision AP5 defined benefit pension scheme asset Net assets 12 11,3611 13.161 24.776 11,4181 4.943 16.579 11,3611 13.161 24.776 11,4181 4,943 16.579 14 Thefvnds olthe th¢7fity.' Unrestricted funds DeSbgnated funds Restricted furFd5 Total tharity funds General Research 14,695 io.(Kx) 81 24,776 6,498 io.(xx) 81 16,579 14,695 io.( 6,498 io.(KK) 81 16,579 Re5torat¥on 81 24,776 16 The notes on pages 17 to 30 form part of these financial statements. The financ>al statements were approved by the corporate trustee. AshrsdBe CT Limited. and the President on 17 Mav 2022, and signed on their behalf by". Mr Jeffrey Alle Oire¢tor Athridge CT Limited Mr Stephen HLKlges President Ashridge IBonor Law Memorial) Tnmt

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Consolidated Statement of Cash Flows for the year ended 31 December 2021

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Notes to the Financial Statements for the year ended 31 December 2021

1. Statement of Accounting Policies

Basis of accounting

These financial statements have been prepared under the historical cost convention, in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities (2019), Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), and the Charities Act 2011.

The Trust registered with the Office for Students in May 2021, and as a result are required to follow the latest December 2022. The Trust has chosen to adopt the Accounts Direction early where the information is readily available.

The Group financial statements incorporate a line by line consolidation of the financial statements of the Trust and its subsidiaries. There are uniform accounting policies across the Group. All intra-group transactions and balances between group entities are eliminated on consolidation.

Ashridge (Bonar Law Memorial) Trust, a public benefit entity, has taken advantage of the provision not to include its own Statement of Financial Activities and related notes in the consolidated financial statements.

These financial statements are presented in GBP Sterling which is also the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest thousand.

Going Concern

The Corporate Trustee, after making enquiries, has a reasonable expectation that the Trust has adequate resources to continue in operational existence for the next 12 months and will continue to operate for the primary purpose of the Trust.

The effect of COVID-19 has been assessed by the projections to ensure that the organisation remains financially viable. The board acknowledges the risk but does not consider it as significant going forward. The Trust has an excellent liquidity position at 31 December 2021 with £11.6m cash available. The Corporate Trustee does not believe there are any material uncertainties relating to its ability to continue as a going concern and have therefore prepared the financial statements on that basis. The conflict between Russia and Ukraine is considered to be a potential risk since February 2022, this is being monitored closely but so far has not had an impact on the Trust.

Income

Income represents revenue for programmes, consultancy, research and conference activities undertaken during the year. Revenue is recognised when the programme is delivered. Deferred income represents fees invoiced in advance.

Donations

Donations are credited to revenue on a receivable basis.

Expenditure

Costs relating to the provision of core education, research and consulting services are included within the Statement of Financial Activities.

Expenditure charged against Restricted Funds falls within the purposes outlined in note 15. All other expenses are borne out of the Unrestricted Fund. Costs are allocated to specific departments on a project basis as necessary.

Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. Gains and losses are recognised in the Statement of Financial Activities.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

1. Statement of Accounting Policies (continued)

Financial instruments

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. The impairment loss is recognised in the profit or loss.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday received.

Retirement benefits

The Ashridge Pension Scheme is a historical single-employer defined benefit scheme. Recognised in the Balance S The pension cost for the scheme is analysed between current service cost, past service cost and net return on pension scheme assets. Current service cost is the actuarially calculated present value of the benefits earned by the active employees in each period. Past service costs, relating to employee service in prior periods arising in the current period as a result of the introduction of, or improvement to, retirement benefits, are recognised in the Statement of Financial Activities on a straight line basis over the period in which the increase in benefits vest. The net expected return on the pension assets comprises the expected return on the pension scheme assets less interest on scheme liabilities. The actuarial gains and losses which arise from updating the latest actuarial valuation to reflect conditions at the balance sheet date are shown in the Statement of Financial Activities.

The Trust participates in the Universities Superannuation Scheme. The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The Trust is therefore underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the scheme. Since the Trust has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the Trust recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the Statement of Financial Activities.

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with section 28 of FRS 102. The Corporate Trustee is satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving the financial statements.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

1. Statement of Accounting Policies (continued)

Taxation

The Trust is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Judgements and key sources of estimation uncertainty

In the application on the group policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

• (i) Treatment of the USS pension scheme

A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (the recovery plan). The Trust is satisfied that USS meets the definition of a multi-employer scheme and has therefore recognised the liability of the future deficit contribution based on the recovery plan.

To determine the appropriate values for the USS pension recovery plan the Trust has applied an accounting model developed by the British Universities Finance conjunction with the USS. The use of this model enables the Trust to reduce the level of uncertainty regarding the amount of the liability and is a model which is used by Universities across the board.

• (ii) Impairment of debtors

The Trust makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment, management considers factors including the ageing profile of debtors and historical experience.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

Committee of University Chairs when determining severance pay. No compensation for loss of office has been paid to any member of staff during the year ended 31 December 2021 (2020: £38k).

The majority of staff were employed by the Trust on behalf of the Group. For the year ended 31 December 2021 the average number of staff employed by the Trust was 62 (2020: 64).

Ashridge CT Limited, the corporate trustee, received no remuneration for its service to the Trust (2020: nil) and was reimbursed travel expenses of £nil during the year (2020: £nil).

The remuneration (salary including staff benefits and termination payments but excluding pension contributions) paid to high paid members of staff falls into the following bands:

Ashridge has given regard Higher education senior staff remuneration code published by the Committee of University Chairs when determining senior staff remuneration.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

5. Staff Costs (Group and Trust) (continued)

The number of senior staff expressed on a full-time equivalent basis who received basic annual salaries in the following ranges at 31 December 2021 were:

The President Stephen Hodges' total annual remuneration was £306,690. This represents the total annual remuneration paid by Ashridge (Bonar Law Memorial) Trust and Hult International Business School Ltd for his role as President for these Office for Students registered providers. Ashridge (Bonar Law Memorial) Trust was responsible for funding £100,000 for the year ended 31 December 2021. Hult International Business School Ltd was responsible for funding £206,690. The President voluntarily withdrew from the Ashridge USS pension scheme on the date of his appointment, no payments have been paid in lieu of pension contributions. Ashridge provides to the President private healthcare benefits that flow from being an employee of Ashridge and which is available to all employees.

The Presidents salary is set by Ashridge CT Limited, the Corporate Trustee.

Process for judging performance

The President has an annual performance review meeting with the Ashridge CT Limited board of directors to review and assess performance against objectives and to discuss objectives for the next year.

Approach and justification to the Presidents remuneration

The Presidents salary is reviewed annually and reflects the following:

• Market rate by size and complexity of institution

• The scale and complexity of the job

• Comparisons with benchmarks

• Performance as measured against objectives set by the board of directors

Pay multiple

The relationship between the Presidents Ashridge remuneration and that for all other staff employed by Ashridge, expressed as a pay multiple is as follows:

3.5 times the median basic salary of staff. 2.8 times the median total remuneration of staff.

The pay multiple represents the Presidents pay divided by the median pay for all other staff at the Trust, on a full-time equivalent basis.

The median pay for all other staff is calculated using pay data in the year for all staff who are required to be included in Real Time Information (RTI) reporting to HMRC.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

11. Deferred Revenue Movement

12. Provisions for liabilities - Group and Trust

Obligation to fund deficit on USS Pension:

The obligation to fund the past deficit on the USS arises from the contractual obligation with the USS to deficit payments in accordance with the deficit recovery plan.

The change in expected contributions arose due to the scheme's deficit decreasing based on the latest valuation - see note 14.

13.

Contingent liability

Ashridge conducted a VAT review during 2022 which highlighted the requirement for Ashridge to be partially exempt due to the exempt apprenticeship revenue received from the Education Skills Funding Agency.

Partial exemption calculations had not been performed since apprenticeships began in 2018 so a correction of VAT returns is required and for over claimed input tax to be declared and paid to HMRC during 2022.

At the date of signing these financial statements, discussions with HMRC are ongoing and calculations have not been finalised to disclose a reliable estimate of the VAT liability in these financial statements.

14. Pension Commitments

The total pension cost charged in the Income and Expenditure account was £739k (2020: £767k).

(i) Universities Superannuation Scheme (USS)

Ashridge is a member of the Universities Superannuation Scheme (USS), a national defined benefits scheme for university academic and academic-related staff.

Pension benefits for 54 members of staff at 31 December 2021 (2020: 52) are provided under the USS.

An obligation to fund the past deficit on the USS arises from the contractual obligation with the USS for deficit payments in accordance with the deficit recovery plan. In calculating the provision, management have estimated future staff levels within the USS scheme for the duration of the contractual obligation and salary inflation.

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

Notes to the Financial Statements for the year ended 31 December 2021 (continued)

14. Pension Commitments

(i) Universities Superannuation Scheme (USS) (continued)

To fund the shortfall the deficit recovery plan requires Employers Deficit Contribution payments as a percentage of salaries:

• 2% with effect from 1 October 2019

• 6% with effect from 1 October 2021 to 31 March 2028

Amounts recognised in the Balance Sheet:

The total gain charged to the SOFA is £57k (2020: £184k).

The provision has been calculated based upon the adoption of a deficit recovery plan based on the 2018 actuarial valuation, which was the only agreed valuation and deficit recovery plan as at the balance sheet date.

Since the Trust cannot identify its share of the scheme assets and liabilities, the following disclosures reflect those assets and liabilities as a whole:

The key financial assumptions used in the 2018 valuation are described below. More detail is set out in

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme's experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows:

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

Notes to the Financial Statements for the year ended 31 December 2021 (continued)

14. Pension Commitments

(i) Universities Superannuation Scheme (USS) (continued)

(ii) Ashridge Pension Scheme (APS)

The Ashridge Pension Scheme is a funded defined benefit pension scheme, with the assets held in a separate trustee administered funds. It was open to full and part-time employees together with those subject to fixed term contracts until May 2002. With effect from January 2004 an accrual for future service for Senior Staff was transferred to the USS although General Staff at that time continued to accrue future service within the APS. Accrual for future service for the great majority of those remaining transferred to USS at the end of 2008. The final active member retired in 2012. Ashridge Pension Scheme is closed to new members.

Costs relating to APS are assessed in accordance with the advice of an independent qualified actuary, from Mercer, using the Projected Unit Method.

The most recent Scheme Funding Report of the Actuarial Valuation for the Ashridge Pension Scheme was undertaken as at 31 December 2019. At the date of the valuation, the value of the scheme's assets were £113.9 million which represented 97% of the actuarial value of the benefits that had accrued to members.

The most recent FRS 102 Actuarial Valuation Report for Ashridge Pension Scheme was undertaken as at 31 December 2021.

Principal actuarial assumptions

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ASHRIDGE (BONAR LAW MEMORIAL) TRUST

Notes to the Financial Statements for the year ended 31 December 2021 (continued)

14. Pension Commitments

(ii) Ashridge Pension Scheme (APS) (continued)

Contributions paid to the Scheme by the Trust in relation to past service were £1 million (2020: £1 million). Contributions being paid by the Trust are in accordance with actuarial recommendation.

The Trust is committed to contribute £1 million to Ashridge Pension Scheme in 2022.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)

14. Pension Commitments

(ii) Ashridge Pension Scheme (APS) (continued)

15. Funds

The unrestricted General Funds represent the cumulative total of past results generated by the Trust. The 1954 Act, as amended in 1983, stipulates that the Funds may be used solely to further the objects of the Trust.

The designated Research Fund exists to assist Ashridge to undertake research related to the roles of corporate headquarters and division levels in multi-business companies and to find ways of improving the strategic management process with the results of such research being disseminated to the public. The funds are intended for building research capability and capacity at Ashridge.

The restricted Restoration Fund represents house and garden tour receipts as well as donations received to maintain and restore the historic fabric of the estate.

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Notes to the Financial Statements for the year ended 31 December 2021 (continued)