International.
students House
ational Students'House
Annual Report 2021
**“I really enjoyed living at ISH and felt that it has been a privilege to do so.”**
2
## Contents
Governors' annual report . . . . . . . . . 2 Statement of governors' responsibilities . . . . . . . . . . . . . . . . . 26 Independent auditor's report . . . . . . 28 Consolidated statement of financial activities for the year ended 30 September 2021 . . . . . . . 32 The balance sheet as at 30 September 2021 . . . . . . . . . . . . . 33 34 Consolidated cash flow statement . . 35 Notes to the cash flow statement . . Notes to the accounts . . . . . . . . . . . 36
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
3
## Objectives
The origins of International Students House (The House; ISH) date back to 1917 when a social club was formed for some of the thousands of overseas students who came to London each year, with a view to increase international understanding and friendship.
ISH was officially opened as a residence for students on 4 May 1965, and ISH continues to provide an environment which facilitates the growth and development of today’s young people from all over the world. It gives them
the opportunity to live in central London and experience a wealth of cultures, not only British, but of the many nationalities of their peers.
The Governors approved the updated Memorandum and Articles of Association of ISH on 21 May 2020 and updated the Charity’s Vision and Mission statements in June 2021.
The objects of International Students House as restated in the updated Memorandum and Articles of Association are as follows:
To provide and maintain premises in the United Kingdom with a view to assisting students (including postgraduate students and persons engaged in research) (hereinafter called “the beneficiaries”) to pursue research at universities, colleges, and other institutions of further education, by affording them hostel accommodation and facilities for rest, recreation, study, lectures and meetings.
To foster racial harmony between the beneficiaries and the countries they represent, and/ or ethnic or racial group they represent.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
4
## Vision
To transform futures of students from around the globe by providing a safe community in London that fosters international friendship and positive change.
## Mission
To provide an affordable home from home for students of different nationalities and diverse cultures, supported by a substantial scholarship programme, with the opportunity to live and learn together in a safe and secure community of mutual respect, understanding and international friendship.
5
## Our activities
The principle activities of the Charity are:
## Affordable accommodation
The principal activity of the House is the provision of affordable accommodation for overseas and UK students. In 2020-21 the House was ‘home away from home’ for over 165 residents from around 60 different countries, including UK nationals.
The students typically stay at ISH and study at one of the nearby universities at either undergraduate or postgraduate level. ISH also provides a small number of flats for students with partners or dependants.
## Scholarship programme
The House runs a scholarship programme in partnership with local universities. In this programme ISH provides free or discounted accommodation and the university partner waives or reduces their tuition fees. In 2020-21, 92 scholars from 38 different nationalities benefited from this provision.
## Events
The House provides social events which are delivered free or at a subsidised costs to residents and members. An events team of three staff run the ISH Travel Club and host activities such as themed suppers, fitness classes, culture nights, and support student-led events such as concerts and international film nights.
## Promotion of international friendship
ISH has an active alumni association called Goats International. ISH is proud of the fact that a large number of students have made lifelong friendships during the time they stayed in the House, and subsequently when they became alumni.
6
## Public benefit test
The Governors have taken due regard to the provisions of the 2011 Charities Act that require charities to prove that they deliver public benefits. International Students House, through the fulfilment of its objectives, provides a wide public benefit.
Residents return to their home nations with a broadened perspective of the world and are equipped with skills which benefit their homelands/ communities.
The ISH Scholarship Programme, in partnership with 18 London universities and academic partners provided accommodation and tuition fee grants to overseas students who would not otherwise have the opportunity to gain a UK qualification. ISH’s contribution to this provision in 2020-21 amounted to approximately £1.1m (2019-20: £1m).
Overseas students are a key component of the London and UK economy, and ISH offers such students affordable accommodation. The House also provides opportunities for the integration of overseas students with UK students.
In addition to supporting students, ISH contributes to the local community by hosting an annual Christmas lunch for around 120 senior citizens who use day centres or are in sheltered housing in the neighbourhood. The lunch usually takes place on a Saturday in December and is free of charge to all those attending.
Unfortunately, ISH was not able to host the senior citizens for the past two years due to the pandemic, but will resume the annual event in December 2022. ISH residents wrote over 50 Christmas cards to our senior neighbours instead in December 2020.
Social events and welfare support are subsidised or delivered free of charge to residents and members. In this way, overseas students do not feel alienated by a new culture, but are able to quickly settle in, adapt to life in the UK and make new friends.
the opportunity to gain a UK qualification broadened perspective new skills and experiences
make new international friends better integration into UK life
Christmas lunch for senior citizens
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
7
## How we measure success
## Student experience
ISH participates in the Global Student Living Index, which measures residents’ satisfaction with the accommodation, services and the variety of social activities provided by ISH.
Attendance at social events is monitored throughout the year and regular feedback on events and ISH services in general is sought via resident advisors (RAs) at fortnightly RA meetings and termly Student Management Committee meetings.
## Affordability
This is measured each year when setting our accommodation fees, through market research on competitor London providers. Students are also asked about their perception of value for money in the Global Student Living Survey.
## Scholarships
The success of the scholarship programme is measured in terms of the number of scholars resident in the House, the number of scholarship partners who assist with tuition fee support, and through an annual monitoring exercise led by the Dean of Student Life where an academic report is received from each scholar’s tutor.
## Alumni
Success in alumni relations (alumni engagement) is measured by: the wealth of information held on the alumni database against each individual record; attendance at alumni events; the rate of engagement with digital communications; fundraising income; and gifts in kind.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
8
## ISH 2020-2021
92 scholars at International Students House
£1.1m in scholarships
18
academic partners waiving/ subsidising fees
165 Residents at International Students House
60 countries represented
9
**“Thanks so much for being my home and family in this country”**
10
## Strategic report
ISH's business strategy is summarised in the following sentence:
‘To provide an affordable home from home for students of different nationalities and diverse cultures, supported by a substantial scholarship programme, with the opportunity to live and learn together in a safe and secure community of mutual respect, understanding and international friendship’.
Our medium term business strategy was revised following the sale of our property at York Terrace East in February 2020 and the subsequent onset of the pandemic.
Our original plan was to increase the number of scholarships to 250 and the number of bed spaces to 1,000 by 2025.
In the near term, the projections for 2021 to 2024 have been revised down.
However, the strategic aim of increasing bed spaces and scholarships very much remains a medium term objective and ISH is actively looking to acquire a new property or properties to support this.
The key points relating to the charitable mission are:
(i) To develop the residential scholarship programme to assist students from financially challenged backgrounds. The scholarship level will be maintained at 23% as a proportion of the total number of residents in the House.
(ii) To ensure a geographically and academically diverse well balanced residential student community with the aim of having up to 20% of the total student numbers from the UK.
(iii) To ensure that our residential fees are competitive with central London student halls fees.
(iv) To increase the diversity and variety of events and activities to meet the changing needs of our residential and non-residential community, and facilitate integration of different nationalities.
(v) To continue to provide services to exstudents through the alumni association and keep them engaged with the House.
The directors have had regard to the matters set out in section 172(1)(a) to (f) when performing their duties under section 172.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
11
## Achievements & performance
The student experience
ISH’s Global Student Living Survey results give useful data on the student experience and the impact that life at ISH has on its residents: in 2020-21 we received an overall approval rating of 95% of respondents saying that their levels of satisfaction were “very good”, “good” or “OK”.
This is higher than the score given for London private halls (88%), with London University Halls lower down the scale at just 81% satisfaction.
When asked about individual aspects of their accommodation, residents’ responses show that ISH is outperforming other providers surveyed in the following criteria: building security, communication, condition and quality, cycle storage, mail handling, opportunities for social interaction, personal safety, location, relationships with other students and value for money.
In addition, 83% of ISH residents said their accommodation has had a positive impact on their wellbeing, with London Private Halls scoring 64%.
“I love my accommodation because the people are friendly, it is affordable and it is close to my university”
“Compared to the prices of other student accommodations, the great location, staff and social community, ISH should be considered one of the best”
“I have enjoyed my stay at ISH. I found it conducive for studies with very comfortable rooms, warm and supportive staff, and very social students of different cultural backgrounds. The facility management is also excellent, with regular and well-executed cleaning and waste disposal schedules. The ISH management is the best listener I have ever encountered so far.”
“Thanks so much for being my home and family in this country”
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
12
## Affordability
Each year, ISH conducts a market research assessment of the local student accommodation market before setting the rent increases for the forthcoming year. As part of this process ISH aims to position itself to be on a par with local university halls of residence.
The student view of the affordability of the accommodation was tested in Spring 2021 in the Global Student Living Index, which benchmarks ISH against local university halls and local private halls.
Respondents were asked to rate the overall value for money of ISH: in 2021, 69% of survey respondents said ISH’s value for money is “good” or “very good” compared to just 55% in London Private Halls and 44% in London University Halls.
## Events and travel club
Our student events and travel club activity was reduced in 2020-21, due to the COVID-19 pandemic. Despite this, ISH’s small group and online events were viewed extremely positively by residents who responded to the survey, with 88% of respondents giving a positive rating to social activities.
The Travel Club programme was similarly reduced as a result of lockdowns, staff furlough and limits on numbers (rule of six), but managed to run a total of eight London-based day trips, three in December 2020 and a further five from late May until early August 2021.
The Thames Rockets Speedboat and London Eye trip was particularly popular, so much so that it was organised for both June and July.
13
## Achievements & performance cont.
## Measuring the impact on the scholars
The Dean of Student Life conducts an annual mid-year monitoring exercise with each scholar to assess their general progress both academically and socially.
A report from their place of study is also received at this time. Common themes that emerged in the 2020-21 monitoring exercise were how ISH provides scholars with a sense of community and home, with security and stability in uncertain times.
Scholars also highlighted the benefits of ISH’s convenient central location, having free brunch and the lasting friendships they had made, as well as how they had grown personally and in their understanding of other cultures and perspectives. In sum, having a scholarship was a once in a lifetime opportunity:
_“COVID has created stark difficulties in student life in London. While many of my friends have had issues with regard to accommodation safety, daily meals during quarantine and just general peer support I have found myself at ease at ISH. Obstacles brought on by quarantine has been minimalised and I have been able to focus thoroughly on my course. Moreover, there is a clear feeling of community at ISH amongst other students and the staff itself. This has been very good for my mental health and overall harmony within the house.” (UAL Scholar, India)_
_“Staying at ISH has provided me with the opportunity to truly connect with the students from all around the world. I have made some great friends here and through that I got the opportunity to learn about different cultures from all over the world. Moreover, there are different cultural events that are being regularly organised at ISH which helps me to connect with other people more easily.” (UAL Scholar, Nepal)_
A further impact questionnaire is sent to former scholars, after they have completed their studies and left ISH. This exercise was conducted in Summer 2021, seeking feedback from those who were in residence the previous year.
Asked about their employment status, the majority of former scholars reported that they had started a new job at a higher level or with a better salary after their time at ISH, with some working in Government ministries in their home countries, heading hospital departments and working with International NGOS.
Other former ISH scholars were also making notable contributions to the field of education and arts as performers, researchers, teachers, media personnel and musicians.
The free text comments from former scholars show the long-lasting positive impact of their time at ISH:
_“I would like to give my utmost appreciation for everything ISH does for students across the world and while they stay there they might not know it, but later in life, the positive impact of the ISH Scholarship guides them to do greater things and have bigger dreams than they thought they could have.” (ISH–University of Westminster Scholar)_
_“It has been the most wonderful opportunity for me to be immersed in my studies with the help of the scholarship. The social events in ISH were very special occasions where I met lots of other scholars that come from all over the world.” (ISH-RAM Scholar)_
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
14
95% student satisfaction In the Global Student Living Index Spring 2021
83% positive impact on wellbeing
9/10 former ISH scholars said, living at ISH:
increased confidence mixing with people from other races and cultures
increased confidence traveling independently
enhanced understanding of other cultures
supported their personal and academic aims
“It has been a challenging time but ISH makes the things easier, ISH feels like home and it is important for us who do not see our families and are far away achieving a dream to have this support.”
“I hope scholarships can continue to change lives like it did mine. I also hope that one day I will be able to contribute to changing a student’s life.”
- Royal Academy of Music Scholar, Colombia
- ISH-University of Westminster Scholar
15
## Achievements & performance cont.
## Alumni
Due to ongoing pandemic restrictions we were unable to host our usual calendar of Alumni events throughout most of this year.
There was, however, a very successful socially distanced event to celebrate HRH Princess Anne’s visit to ISH in June. A number of ISH alumni were invited, attended and thoroughly enjoyed the occasion.
In September, the first meeting of the ISH Assembly took place. The meeting was very successful. The assembly is largely made up of key ISH alumni with some attending in person and a great number by video call.
Despite the lack of in person events, our digital engagement grew with an average communications open rate of 28%.
The first Rose Fung Memorial Scholar, Kimberly Mihayo from Tanzania, was welcomed to ISH. Wendy Fung, the donor of the scholarship, was very pleased with her communications with her scholar and pledged the scholarship amount for a further year, for which we are most grateful.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
16
## Acknowledgments
The House gratefully acknowledges the support of the following partners, without whom the scholarship programme would not have been so successful:
- Our catering contractors Baxterstorey, who provided a free breakfast for 40 of the 92 scholars
- And the following academic partners who waived/ discounted tuition fees for the following number of scholars:
|
lowing number of scholars:||
|---|---|
|The School of Oriental & African Studies|13 scholars|
|Universityof Westminster|8 scholars|
|Royal Academyof Music|8 scholars|
|ISH Scindia / SKV Scholarships*|7 scholars|
|Karta Initiative|7 scholars|
|London Metropolitan University|6 scholars|
|Council for At-Risk Academics(cara)|6 scholars|
|Universityof the Arts|6 scholars|
|Royal College of Music|4 scholars|
|UCL, Institute of Education|4 scholars|
|London School of Hygiene & Tropical Medicine|4 scholars|
|UCL, United World Colleges|4 scholars|
|Chevening|4 scholars|
|UCL, Institute of Global Health|2 scholars|
|London School of Economics & Political Science|2 scholars|
|London Institute of Bankingand Finance|2 scholars|
|Windle Trust International|2 scholars|
|Marshall Aid Commemoration Commission|1 scholar|
|Birkbeck|1 scholar|
|Imperial College London|1 scholar|
*both academic and accommodation scholarships sponsored by ISH
17
## Financial & investment review
## Financially significant events
The House extended the lease of Wills House (adjoining 229 Great Portland Street, (GPS)) in December 2016, for a consideration of £2.7m. The lease will expire in 140 years’ time on 28 December 2158, and negotiations are on-going with Crown Estate to renew the lease at 229 Great Portland Street site so that both leases are coterminus.
## Sale of properties
The sale of properties on York Terrace East (YTE) was completed in February 2020 for a total of £58m. The funds received were transferred directly to the investment portfolio and set aside as a designated reserve, for the purpose of securing a new property or properties for the House.
ISH is actively looking to secure a new property with the support of Cushman & Wakefield to replace the 260 bed spaces and 47 flats that have been lost with the sale of the YTE properties.
## The COVID-19 pandemic
## Government Coronavirus Job Retention Scheme
ISH made use of the Government Coronavirus Job Retention Scheme for the year and on average 50% of the total staff was on flexible furlough.
The grant for the scheme is accounted for in the Income and Expenditure statement for the year. Income streams were more impacted by the pandemic than in Financial Year 2019-20 as we operated for the whole year under some government restrictions.
The Governors worked with the senior management team to set the plans in order mitigate the financial impact of the pandemic and to ensure the longer term sustainability of the House, while maintaining its ability to achieve its charitable objectives.
## Market recovery
During 2020-21 financial markets recovered from the early 2020 crash and ISH’s investments experienced a net growth of 12% for 2020-21. Dividend pay-out also resumed in the year and the dividend income received supported the charitable activities of the House for the year.
The COVID-19 pandemic continued to affect ISH during the 2020-21 financial year. Operational activities resumed slowly in the summer of 2020 though customer confidence was still very low.
Commercial activities, which include the conference venues, live events and the coffee house, were slow to pick up even before the country went into lockdown again in December 2020 which further reduced commercial revenue.
Occupancy rate of ISH’s accommodation provision averaged 65% over the year mainly because of cancellation of commercial flights, border restrictions and uncertainty around onsite lectures affecting international students’ ability to come to London to study.
ISH maintained all the security and cleaning regimes initiated at the beginning of the pandemic to ensure the health and wellbeing of the staff and residents. There was no major outbreak of the virus in the House during the period.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
18
## General financial performance
The Net Operating Expenditure for 2020-21 was £981k (2019-20: £2,270k). The Net Gain on investment assets for the year was £9,991k (2019-20: £2,060k loss) and this gave rise to an overall position for the year of £9,010k surplus (2019-20: £143k surplus).
As a result, the total value of unrestricted funds (including designated funds) grew to £86,693k (2019-20: £78,131k) and the total value of restricted funds increased to £5,532k (2019-20: £5,084k) giving ISH a total reserve level of £92,225K (2019-20: £83,215k).
## Improvement in challenging times
Considering the challenges faced by the House in the year, the general financial performance for the year was satisfactory and a significant improvement on the previous year.
Similar to 2019-20, income from both trading and charitable activities were badly affected by the pandemic. Conference income, together with sales and revenue from venues fell by 61.4% to £507k during the year. Income from charitable activities income fell by 23.5%, reflecting the lower number of residents in the House during the year. The number of scholarships awarded for 2020-21 (92) was slightly lower than last year (102).
## Expedited renovation
The wholesale refurbishment programme of GPS and Wills House which began in 2017-18 was completed in August 2021, one year ahead of schedule. Capital expenditure in 2020-21 was £1,582k (2019-20: £2,603k) with the bulk of the expenditure being the rooms renovation in GPS.
The renovation programme was expedited during the lockdown, taking advantage of the low occupancy in the House whilst adhering to safety and security measures. Other capital works in 2020-21 included the basement ventilation improvement and the fire alarm upgrade on the GPS side of the property. These investments will enhance our provision to residents in future years.
## Fundraising
ISH raised £24k in the year compared to £25k in 201920. The majority of this was received from former staff, alumni and foundations to support the ISH scholarship programme.
There was also a COVID-19 hardship appeal initiative to support the many students who found themselves in financial difficulty as a result of the pandemic. We are most grateful to all who contributed to this worthy cause
## Investments
ISH Investment Committee has delegated authority from the ISH Board of Governors to oversee the investment portfolio with Quilter Cheviot (QC), who have been the discretionary investment managers of ISH since October 2017. On the advice of the Investment Committee, the Board extended the services of QC for another year in October 2021.
The investment portfolio’s market value at the end of 2020-21 was £81.3m (2019-20: £72.5m). The portfolio increase was mainly due to the realised and unrealised gains experienced in the year. The overall realised and unrealised gains for the year was £9,991k (2019-20: £2,060k loss).
The investments are strongly diversified, with investments in a range of asset classes including UK equities, overseas equities, commercial property and infrastructure funds, private equity and bonds.
## Scholarship funds
The value of the scholarships funds (both restricted and designated funds) increased in value from £7,719k to £8,442k during the year mainly due to the good performance of the investment portfolio.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
19
## Financial & investment review cont.
## Environmental, social and corporate governance policy
In 2019-20, the Trustees approved a new Environmental, Social and Corporate Governance (ESG) policy as well as an Ethical Investment Policy. ISH is committed to being a responsible investor across its investments.
The new ESG policy sets outs a fundamental guiding principle that Quilter Cheviot must apply investment criteria based on ESG Standards. During the regular review meetings with the investment manager, the application of ESG policies in making investment decisions is considered.
## Ethical investment policy statement
In 2019-20, the Trustees agreed that ISH will not apply an overall ethical exclusionary policy to its dealings with its stakeholders. There is therefore no existing ethical framework for an exclusionary (or positively screened) investment policy.
Should ISH develop such a stance in the future, an investment policy will be developed to dovetail with this as part of a more holistic approach.
## Reserves policy
As at 30 September 2021, the value of the restricted funds stood at £5,532k and the value of the designated funds was £67,910k. The various designated and restricted reserves of ISH are as follows:
## Designated reserves for major repairs
As ISH has completed a full refurbishment programme of its accommodation, setting aside a designated fund will prevent new major repair and renovation projects impacting on the free reserves of the Charity. This will put ISH in a strong position to have a long-term repair and renovation plan without jeopardising its charitable objectives.
## Designated reserves for the scholarship programme
The Scholarship Fund is used each year to provide bursaries to overseas students. The intention is to grow the scholarship funds so that they are self-sufficient, to ensure the perpetuity of scholarships.
## Restricted reserves
The restricted scholarship reserves relate to donations and contributions made to ISH to support our scholarship programme. The allocation is based on specific criteria agreed with the respective donors.
The restrictions imposed on the charitable donation from IST to ISH are as follows:
- IST Scholarships – For student accommodation in collaboration with higher education (HE) partners.
- IST Travel Bursaries – For use by ISH Travel Club, to support ISH’s mission to promote global friendship and cultural understanding.
- The Mary Trevelyan Fund – To support students in hardship during their study period at International Students House.
## General reserves
## Designated reserves for property acquisition and development
The first designated reserve is to identify the funds set aside for property acquisitions and developments. The sale of YTE was agreed in September 2016 with the sale completed on 12 February 2020.
The objective of the Board is to increase the number of bed spaces and setting the funds aside clearly identifies the purpose of the funds generated from the sale of YTE.
An additional £6m was transferred from the General Fund in order to ensure that ISH has sufficient funds to acquire a property in the Regents Park vicinity, as well as funds required for any potential development of the GPS property.
Out of the £17,883k of general reserves, £11,288k is tied up in the Charity’s fixed assets and not freely available. This leaves the level of free reserves as at 30 September 2021 at £6,595k.
The free reserves are sufficient to cover over 13 months’ worth of operating expenditure, in line with the reserves policy. Guidance from Charity Commission is that charities could consider un-designating reserves to increase their free reserves should there be a need to.
ISH currently has designated reserves of £68,810k which can be utilised should the need arise. The Governors’ view is that there should be a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future and financial statements have therefore been prepared on a going concern basis.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
20
|Reserves|FY21 Position
£’000
FY20 Position
£’000
Further Information|
|---|---|
|Funds represented
by property, plants
and equipment
Restricted
scholarship reserves
Designated ISH
scholarship fund
Designated funds
for major repairs
Designated funds
for property
acquisition and
developments
Free reserves
Total reserves|11,288
10,730
The funds invested in tangible fxed assets are not
freely available to the charity and therefore excluded
from the free reserves
5,532
5,084
Funds restricted to scholarship funding based on
donors' specifcation for the use of their donation.
These funds are not freely available. The restricted
funds now include funds donated from IST.
2,910
2,635
The fund is designated to ensure that ISH can satisfy
its obligations towards scholars during the course of
their scholarships
900
600
Following the signifcant refurbishment programme
which started - in 2018, funds are being set aside
to cover for future repairs on the works recently
completed.
65,000
58,000
Following the sale agreement of the YTE Building,
funds for property acquisition and developments have
been designated to either acquire new accommodation
properties or develop existing properties in order to
increase accommodation provision.
6,595
6,166
The free reserves level target is to cover 10-
18 months of expenditure level. The current
position covers more than 13 months of operating
expenditure.
92,225
83,215|
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
21
## Financial & investment review cont.
## Principal risks and uncertainties
The Governors confirm that the major risks to which the House is exposed as identified by the Governors are regularly reviewed, and systems have been established to mitigate those risks. The Governors review the Risk Register on a quarterly basis given the greater uncertainty resulting from COVID-19 pandemic and the volatility of the current economic environment. The Board have identified strategies to mitigate the following major areas of risks:
- Global pandemic – Risk of an outbreak in the House; risk assessment measures and protocols to follow as well as assessment of financial impact.
- Safeguarding – Protecting children, young people and adults at risk from harm.
- Property – finding alternative accommodation following the sale of properties at York Terrace East and renewal of property leases.
- External competition.
## Pension liability
## Plans for future periods – operational
The House has a five-year, medium term strategy from 2023 to 2028, which was reviewed by the Board of Governors at its April 2021 meeting, taking into consideration the ongoing pandemic. The operational key points are outlined below:
- To increase the capacity of the charity, to acquire major freehold or long-lease residential accommodation.
- To upgrade the student facilities and improve the student experience.
- To meet our mission by increasing scholarships to 23% of our total residents’ level, or up to 230 scholarships.
- To meet our mission with the provision of free breakfasts on weekends to all our residents.
- To balance the charity and commercial needs by ensuring the commercial activities complement and support our charitable aims.
- To maintain close institutional links with colleges and universities in London and other key stakeholders.
The House is required to provide for and disclose their share of any deficit reduction scheme for schemes of which they are a member.
The House is a contributing employer of the USS scheme for which the House's estimated liability for the pension reduction plan is £55,136.
The House is also a contributing employer of the SAUL scheme for which the House's estimated liability for the pension reduction plan is £91,983. Refer to note 21 for further detail.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
22
## Structure, governance & management
## The charity’s details
International Students House is a Registered Charity (Registration number 313512) and a Company Limited by Guarantee (Company registration number 724811).
The Charity is governed in line with the Memorandum and Articles of Association, which was updated in May 2020.
## Board of Governors
The body responsible for the management of the charity is the Board of Governors. The Governors meet at least four times a year. There are up to 12 Governors who are elected for a three year period as approved by the existing Governors. These Governors are directors for the purposes of the Companies Act 2006.
The structure of the Board of Governors and its sub committees is shown below.
**----- Start of picture text -----**
International
Students House
Park Crescent Conference
Centre Limited
ISH Board
**----- End of picture text -----**
**----- Start of picture text -----**
Governance focus
Alumni focus
**----- End of picture text -----**
**----- Start of picture text -----**
Governance & Finance Property Student
Investment Scholarship GOATS
Nominations & Audit Strategy Management
Committee Committee Committee
Committee Committee Committee Committee
Remuneration
Committee
**----- End of picture text -----**
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
23
## Structure, governance & management cont.
## Board and committees
Each committee has specific terms of reference and functions delegated by the Board and has a chair, also appointed by the Board.
Formal attendance monitoring arrangements for the Governors are in place and are monitored by the Governance and Nominations Committee and the Board on a regular basis.
All the Governors are directors of the company and guarantee to contribute £1 in the event of the company winding up.
In September 2021, the Governors approved the continuation of the Remuneration Committee as a separate committee of the Board.
## Charity governance code
In order to ensure that the Charity has the correct structure to achieve its ambitions and aims, ISH has adopted the Charity Governance Code. This code is designed as a tool to support continuous improvement and sets out principles and recommended practices. A new Code of Conduct for ISH Governors was also introduced in early 2020 and is regularly reviewed to ensure the Charity is adhering to recommended governance practices.
The Governors have had regard to the need to foster the Charity’s business relationships with suppliers, students, customers and others which is considered when making principle decisions.
## Auditors
Moore Kingston Smith LLP was re-appointed as Auditor during the year. A benchmarking exercise will be undertaken in 2022 ahead of appointing the company’s auditors for the forthcoming year. A resolution to appoint the company’s auditor will be proposed at a Board Meeting in 2022.
## Disclosure of information to auditors
In the case of each of the persons who are Governors of the company at the date when this report was approved:
- so far as each of the Governors is aware, there is no relevant audit information (as defined in the Companies Act 2006) of which the company's auditors are unaware; and
- each of the Governors has taken all the steps that he/she ought to have taken as a Governor to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 2006
This report, and the Strategic Report, were approved by the Board of Governors and signed on behalf of the Board on 3rd of March 2022.
## Appointments and resignations
Gill Hammond was appointed Chair of ISH on 21 May 2020.
Gill Hammond 4 March 2022
Shami Nathoo, Finance Director of ISH, took over from Ibi Eso, from Bridgehouse Company Secretaries as Company Secretary of the House on 19 March 2021. ISH has an internal audit function which reports directly to the Finance and Audit Committee.
ISH’s internal audit volunteer, Graham Fairhead, stepped down from his role in February 2022 and a search is currently underway to appoint the next internal auditor of the House. Graham has kindly agreed to remain in post and serve another year until a replacement is identified.
The Governors wish to record their appreciation and gratitude for the great contribution made by him during his tenure.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
24
## Reference and administrative details of the charity, its governors and advisers
|CHAIR|Gill Hammond (Chair)||||
|---|---|---|---|---|
|GOVERNORS|Lord Nicholas Bourne (Vice Chair)||Azlinda Ariffn-Boromand||
||Michael Carrier (Retired 20/05/2021)||Beatrice Leong||
||Julie Costley-White (Retired 10/06|2021)|Alderman John Garbutt||
||Vikram Mathur (Retired 10/06/2021)||David O'Brien||
||Ian Barry||Natalia Kolotneva (Appointed 11/06/2021)||
||Prof Ajit Lalvani||Kirsty Joan Macdonald (Appointed 11/06/2021)||
||Ranjita Rajan||Kalyan Das (Appointed 23/09/2021)||
|PATRON|HRH The Princess Royal||||
|VICE PRESIDENTS|David Laing|Sir John Ritblat||Dr Geoffrey Copland CBE|
||Rosamund Horwood-Smart QC|Baroness Diana|Warwick of Undercliffe||
|CHIEF EXECUTIVE|Martin Chalker||||
|COMPANY SECRETARY|lbi Eso (Bridgehouse Company Secretaries)
(Retired 18/03/2021)||Shami Nathoo (Appointed 19/03/2021)||
|HONORARY FELLOWS|Roy Rohatgi|Dorothy Dalton||Lord Khalid Hameed CBE|
||Major John Vaughan|Dato' Yeah Soo Min||Teresa Akpeki|
||Susan Vaughan|Andrew Tennant||Russell Peters|
||Mary Mackie|Sir Graeme Davies||Jonathan Day|
||Judge David Jones|Peter Anwyl||Ipek De Vilder|
||Richard Porter|Margret Swinley|OBE||
||Sir Nigel Carrington|Lord Amir Bhatia|||
|REGISTERED OFFICE|1 Park Crescent, Regents Park, London, W1B 1SH||||
|COMPANY LIMITED BY|724811||||
|GUARANTEE IN ENGLAND|||||
|REGISTERED CHARITY|313512||||
|NUMBER|||||
|SOLICITORS|Bircham Dyson Bell, 50 Broadway,|Westminster, London SW1H OBL|||
||Shakespeare Martineau LLP, Exchange Square, 21||North Fourth Street, Milton Keynes, MK91 1HL||
|BANKERS|Handelsbanken, 3rd Floor, 86 Jermyn Street, London SW1Y 6JD||||
|INVESTMENT MANAGERS|Quilter Cheviot Investment Management Senator House, 85 Queen Victoria Street, London, EC4V 4AB||||
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
25
## Statement of governors' responsibilities
## Governors’ report
The Governors (the Directors of International Students House for the purposes of company law and Trustees of International Students House for the purposes of charity law) are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)
## Financial statements
Company law requires Governors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group tor that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
## Accounting records
The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.
## Safeguarding assets
They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Governors are aware:
There is no relevant audit information of which the charitable company's auditor is unaware; and
The Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
- 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 the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
26
## Organisational structure
Martin Chalker Chief Executive
Shami Nathoo Carol Sutcliffe Finance Director & Human Resources & Company Secretary Development Manager
Tessa Win Dr Sharon Bolton Operations Director Dean of Student Life
## Remuneration
The remuneration bands for the five senior managers earning over £60k per annum are disclosed in Note 10 below.
## Pay policy for senior staff
The Remuneration Committee is formed of Governors of the Board. The committee meets in November each year and approves the pay for senior staff.
The committee also approves the application of annual bonuses to staff, from a capped bonus pool via a performance-related assessment.
Remuneration is assessed after looking at market rates and industry benchmarks.
## Related entities
## Toyota-Shi Trevelyan Trust
International Students House has a close association with the charity Toyota-Shi Trevelyan Trust (TSTT) which provides grant income for UK students studying in Japan, and Japanese students studying in the UK.
The House and the Trust appoint 50% of the Trustees of this charity. The Chief Executive of ISH is also Chief Executive of all the related entities and Shami Nathoo, is the Company Secretary of the House and all the related entities.
## Park Crescent Conference Centre Limited
International Students House has a wholly owned subsidiary - Park Crescent Conference Centre Limited (PCCC). PCCC reported a profit of £34,615 (2019-20 £9,173) in the year ending 30 September 2021. This amount will be paid as a distribution to International Students House in 2021-22.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
27
## Independent auditor’s report to the members of International Students House
(A Registered Charity and Company Limited by Guarantee)
## Opinion
We have audited the financial statements of International Students House (the ‘parent charitable company’) and its subsidiaries (the ’group’) for the year ended 30 September 2021 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including 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 group’s and the parent charitable company’s affairs as at 30 September 2021 and of the group’s 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 Auditor’s 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
28
## Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in 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 there is 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.
## Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## Opinions 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 strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the trustees’ annual report have been prepared in accordance with applicable legal requirements.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
29
## Independent auditor’s report cont.
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## Auditor’s 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 auditor’s 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- 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 purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ 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 group and parent 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 auditor’s 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 auditor’s report. However, future events or conditions may cause the group or parent 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.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
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.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
30
## Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of noncompliance 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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## 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 which we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## 4 March 2022
Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
Devonshire House 60 Goswell Road London EC1M 7AD
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
31
## Consolidated statement of financial activities
(Incorporating an income and expenditure account for the year ended 30 September 2021)
|**Note**|**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total**|**Total**|
|---|---|---|
|**INCOME & ENDOWMENTS:**
Charitable activities
3
Other trading activities
4
Donations and legacies
5
Investment income
6
**Total incoming resources**
**EXPENDITURE ON:**
Raising funds
8
Charitable activities
9
**Total resources expended**
**Net operating income/**
**(expenditure)**
Net gain/ (loss)
on investment assets
13
Exceptional gain / loss
7
Donation from IST
5; 25
**Net income/ (expenditure)**
Transfer between funds in the year
**Net movements in funds**
**FUND BALANCES:**
at 1 October 2020
**at 30 September 2021**|**£'000**
**£'000**
**£'000**
**2021**
1,286
-
-
1,286
506
1
-
507
748
12
11
771
2,305
85
133
2,523
**4,845**
**98**
**144**
**5,087**
(1,564)
(12)
(3)
(1,579)
(4,121)
(182)
(186)
(4,489)
**(5,685)**
**(194)**
**(189)**
**(6,068)**
**(840)**
**(96)**
**(45)**
**(981)**
9,606
317
68
9,991
-
-
-
-
-
-
-
-
**8,766**
**221**
**23**
**9,010**
(7,300)
7,300
-
-
**1,466**
**7,521**
**23**
**9,010**
16,896
61,235
5,084
83,215
**18,362**
**68,756**
**5,107**
**92,225**|**2020**
1,682
1,315
649
1,654|
|||5,300|
|||(2,156)
(5,414)|
|||**(7,570)**|
||||
|||**(2,270)**|
|||(2,060)
-
4,473|
|||143|
|||
-|
|||143|
||||
|||83,072|
|||83,215|
32
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## Consolidated balance sheet: as at 30 September 2021
|Company registration no. 724811
**Note**|**Consolidated**|**Charity**|
|---|---|---|
|**Fixed assets**
Tangible assets
12
Investments
13
**Current assets**
Stocks
Debtors
15
Cash at bank and in hand
**Creditors**
Amounts falling due within one year
16
Net current liabilities
Total assets: less current liabilities
Creditors: amounts falling due
after more than one year
Provisions for liabilities and charges
17
Net assets
**Funds**
**Unrestricted**:
- General fund
20
- Funds for major repairs (designated)
20
- Reserve for future purposes (designated)
20
- ISH Scholarship Fund (designated)
20
**Restricted**:
- Total restricted funds
20|**2021**
**2020**
**£'000**
**£'000**
11,288
10,730
81,322
72,542
92,610
83,272
23
16
277
366
696
909
996
1,291
(1,332)
(1,196)
**(336)**
**95**
**92,274**
**83,367**
-
-
(49)
(152)
**92,225**
**83,215**
17,883
16,896
900
600
65,000
58,000
2,910
2,635
5,532
5,084
**92,225**
**83,215**|**2021**
**2020**
**£'000**
**£'000**
11,288
10,730
81,322
72,542|
|||83,272
83,272
23
16
286
357
595
898|
|||904
1,271
(1,275)
(1,185)|
|||**(371)**
**86**|
|||**92,239**
**83,358**|
|||-
-
(49)
(152)|
|||**92,190**
**83,206**|
|||17,848
16,887
900
600
65,000
58,000
2,910
2,635
5,532
5,084|
|||**92,190**
**83,206**|
These financial statements were approved and authorised for issue by the Governors on 3 of March 2022. The accompanying notes form part of the financial statements. No separate SOFA has been presented for the charity alone, as permitted by section 408 of the Companies Act 2006. The Charity's income for 2020-21 was £4,190k (2019-20: £8,818K) and made a surplus of £8,984k (2019-20: £355k).
Signed on behalf of the Governors by:
Gill Hammond (Chair)
Lord Nicholas Bourne (Vice Chair)
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
33
## Consolidated cash flow statement: year ended 30 September 2021
|**Note**|**2021**|**2020**|
|---|---|---|
|Cash flows from operating activities
A
Cash flows from investing activities
B
**Change in cash and cash equivalents in the reporting period**
Cash and cash equivalents at 1 October 2020
**Cash and cash equivalents at 30 September 2021**
C|**£'000**
(2,160)
1,884
**(276)**
2,462
**2,186**|**£'000**
27,288
(29,458)|
|||**(2,170)**|
|||4,632|
|||**2,462**|
||||
|**Cash and cash equivalents at 30 September consist of:**|**2021**|**2020**|
||**£'000**|**£'000**|
|Cash component of fixed assets investments
13|1,490|1,553|
|Cash at bank and in hand|696|909|
|**Total**|**2,186**|**2,462**|
34
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## Notes to the cash flow statement: year ended 30 September 2021
||**2021**|**2020**|
|---|---|---|
|**Reconciliation to changes in resources:**
Net income in the year
Cash transfer following donation from sister charity
Exceptional gain/ (loss)
Investment income
Interest receivable and sundry income
Interest paid
(Profit)/ loss on disposal of fixed assets
Net provisions charged (see note 18)
Depreciation of tangible fixed assets
(Increase)/ decrease in stocks
(Increase)/ decrease in debtors
Increase/ (decrease) in creditors
**Net cash provided by/ (used in) operating activities**|**£'000**
(981)
205
-
(2,522)
(1)
-
-
(103)
1,024
(7)
89
136
**(2,160)**|**£'000**
(2,270)
-
-
(1,651)
(3)
-
-
35
912
8
30,541
(284)|
|||**27,288**|
||||
|**B. Cash flows from investing activities**|**2021**|**2020**|
||**£'000**|**£'000**|
|Investment income received|2,522|1,651|
|Interest received|1|3|
|Purchases of tangible fixed assets|(1,582)|(2,603)|
|Purchases of fixed asset investments|(7,380)|(32,755)|
|Less sales of fixed asset investments|8,323|4,246|
|Net cash provided by/ (used in) investing activities|1,884|(29,458)|
||||
|**C. Analysis of cash and cash equivalents**|**2021**|**2020**|
||**£'000**|**£'000**|
|Cash component of fixed asset investments|1,490|1,553|
|Cash in hand and at bank|696|909|
|**Total cash and cash equivalents**|**2,186**|**2,462**|
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
35
## Notes to the accounts
## **1. Company information**
International Students House is a registered charity (registration number 313512) and a company limited by guarantee (company registration number 724811) incorporated in England and Wales.
The registered office is: 1 Park Crescent, Regents Park, London, W1B 1SH.
## **Basis of preparation**
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (FRS 102) and the requirements of the Companies Act 2006.
The Charitable Company is a public benefit company as defined by FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.
## **Going concern**
The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, including the impact of the COVID-19 pandemic on the Charity’s activities, that might cast significant doubt on the ability of the Charity one year from the date of approval of the financial statements. In particular, the Governors have considered the Charity’s forecasts and projections and have taken account of pressures on accommodation income and other trading activities.
After making enquiries the Governors have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.
The Charity therefore continues to adopt the going concern basis in preparing its financial statements.
## **Group accounts**
The income and expenditure account of the consolidated operation only has been presented, as permitted by Section 408 of the Companies Act 2006.
## **Incoming resources**
House income represents income received and receivable from the provision of accommodation and associated services.
Income is recognised in the accounting period when the person enjoying the accommodation was in residence. Investment income represents the income from the investment portfolio and grants from connected trusts used to be the income from the International Students Trust. All income originates from within the United Kingdom.
## **Resources expended**
Resources expended are included in the Statement of Financial Activities on an accruals basis. Liabilities are 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.
Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of occupancy rates between the Charity and its subsidiary, and the proportion of time spent by staff on those activities.
36
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **Investments**
Investments are stated at market value. It is the Charity's policy to keep valuations up to date such that when investments are sold there is no realised gain or loss arising.
As a result, the Statement of Financial Activities does not distinguish between the valuation adjustments relating to sales and those relating to continued holdings as they are together treated as changes in the investment portfolio throughout the year.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value and represent goods for resale, and bar liquor stocks.
## **Depreciation**
Depreciation policy was reviewed during the year, and is calculated to write down the cost of tangible fixed assets in equal annual instalments to their estimated residual values over the period of their estimated useful economic lives, which are considered to be:
- Freehold and long leasehold property – 50 years
- Freehold and leasehold improvements – 10 or 20 years
- Furniture fittings and equipment – 5, 8 or 10 years
- Motor vehicles – 3 years
- Computers/ computer software – 3 or 10 years
An impairment review of all tangible fixed assets of significant value is undertaken annually. Items below £1,000 each are not treated as capital items.
## **Financial assets**
The Charity has elected to apply the provisions of section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Basic financial assets are initially measured at fair value plus transaction costs, 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. Other financial assets classified as fair value through profit or loss are measured at fair value.
## **Impairment of financial assets**
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of financial activities.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
37
## Notes to the accounts cont.
## **Impairment of tangible and intangible assets**
At each reporting end date, the Charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Charity estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset maybe impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cashgenerating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cashgenerating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years.
## **Financial liabilities**
Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measured at fair value.
## **Other financial liabilities**
Other financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.
## **Loan and receivables**
Loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
38
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **Pensions**
Pension payments represent payments made to the University Superannuation Scheme Limited (USS Scheme) for senior staff and the Superannuation Arrangements of the University of London (SAUL Scheme) for other staff.
These payments are charged to the income and expenditure account in the year in which they fall due.
The schemes are contracted-out of the State Earnings Related Pension Scheme. The schemes are valued formally every three years by professionally qualified and independent actuaries using the projected unit method. Reviews of the schemes’ positions are carried out in the period between valuations.
## **Provisions**
The movement on the provision for the exterior redecoration of the property is charged annually to the profit and loss account.
## **Foreign currency accounting policy**
The accounting records shows foreign currency bank account balances at the Sterling equivalent at the balance sheet date.
## **Operating lease policy**
Rentals payable with regard to operating leases are charged against income on a straight line basis over the period of the lease.
## **Fund accounting**
Funds held by the Charity are either:
Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.
Restricted funds – these are funds that can only be used for particular purposes specified by the donor or when funds are raised for particular purposes within the objects of the Charity.
Unrestricted designated funds – these funds represent funds which have been separately designated by the Trustees of the Charity, as part of unrestricted funds.
## **Rounding policy**
Amounts shown on the financial statements are rounded to the nearest thousand-pound sterling unless stated otherwise in the header.
## **Critical accounting estimates and areas of judgement**
In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the Governors in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
39
## Notes to the accounts cont.
## **2. The operating surplus is arrived at after charging**
||**2021**|**2020**|
|---|---|---|
||**£'000**|**£'000**|
|Auditors' remuneration|26|18|
|Repairs and maintenance|455|561|
|Cleaning materials and contracts|44|73|
|Fuel and power|147|181|
|Insurances|63|76|
|Depreciation – owned assets|1,024|912|
|Provision for exterior redecoration|43|35|
|Other professional fees|341|414|
## **3. Analysis of charitable Income**
|**3. Analysis of charitable Income**|||
|---|---|---|
||**2021**|**2020**|
|Income from accommodation:
Gross income
**Less: bursaries and scholarships funded by ISH**|**£'000**
1,962
(676)
**1,286**|**£'000**
2,427
(745)|
|||**1,682**|
## **4. Analysis of other trading income**
|**4. Analysis of other trading income**|||
|---|---|---|
||**2021**|**2020**|
|Public entertainment licence and bar revenue
Conference revenue
Contract revenue
Membership income
Miscellaneous
Travel Club revenue
Coffee House income|**£'000**
213
27
63
26
1
1
176
**507**|**£'000**
551
319
146
19
26
21
233|
|||**1,315**|
## **5. Analysis of donations and legacies**
|**5. Analysis of donations and legacies**|||
|---|---|---|
||**2021**|**2020**|
|Grant to fund bursaries from International Students Trust and hardship funds
Grant to fund capital works from International Students Trust
Grant to subsidise Travel Club from International Students Trust
Donations received
Grants received from HMRC
Charitable donation from IST (see note 25)|**£'000**
-
-
-
26
472
-
**771**|**£'000**
175
-
38
25
411
4,473|
|||**5,122**|
40
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **6. Analysis of investment income**
|**6. Analysis of investment income**|||
|---|---|---|
||**2021**|**2020**|
|Dividends from listed investments
Interest receivable|**£'000**
2,522
1
**2,523**|**£'000**
1,651
3|
|||**1,654**|
## **7. Exceptional gains and losses**
No exceptional gains or losses occurred in 2020-21 (2019-20 - £0)
## **8. Expenditure on raising funds**
|**8. Expenditure on raising funds**|||
|---|---|---|
||**2021**|**2020**|
|Conference, bar and other expenses
Investment expenses|**£'000**
1,238
341
**1,579**|**£'000**
1,848
308|
|||**2,156**|
## **9. Expenditure on charitable activities**
|**9. Expenditure on charitable activities**|||
|---|---|---|
||**2021**|**2020**|
|Bursaries and grants payable
Other charitable purposes expenses
Governance expenses|**£'000**
376
4,077
36
**4,489**|**£'000**
440
4,935
39|
|||**5,414**|
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
41
## Notes to the accounts cont.
## **10. Employees**
|**10. Employees**|||
|---|---|---|
||**2021**|**2020**|
|**Average number of persons employed by the Charity and its subsidiary:**
Administration
Student services
Maintenance and housekeeping
**Employees' costs during the year for the Charity and its subsidiary:**
Wages and salaries
Social security costs
Other pension costs (note 22)
**Remuneration of higher paid staff (senior management), excluding**
**pension contribution but including benefits in kind:**
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£120,001 - £130,000|**No.**
31
12
17
60
**£'000**
2,144
208
271
2,623
**No.**
2
1
1
1
**5**|**No.**
34
23
20|
|||77|
|||**£'000**
2,647
245
285|
|||3,177|
|||**No.**
2
1
1
1|
|||**5**|
The above five staff members received a total of £81k employer’s pension contributions in the year (2019-20: £81k). The total employee benefits of the charity's key management personnel were £582k (2019-20: £599k).
## **11. Governors' emoluments**
No Governor received any emoluments during the year (2019-20: £nil). One Governor claimed £23 for travel expenses during the year. In 2019-20, there were four Governors claiming a total of £497.
42
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **12. Tangible fixed assets**
||**Long**
**leasehold**
**Freehold**
**properties**
**Freehold &**
**leasehold**
**improvements**
**Equipment**
**furniture &**
**fittings**
**Computers &**
**equipment**
**Total**|
|---|---|
|**Cost:**
At 30 September 2020
Additions
Disposals
**At 30 September 2021**
Depreciation:
At 30 September 2020
Charge for the year
Disposals
**At 30 September 2021**
**Net book value:**
At 30 September 2020
**At 30 September 2021**|**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
955
5,392
9,018
2,561
328
18,254
-
-
1,272
295
15
1,582
-
-
(35)
(62)
(60)
(157)|
||**955**
**5,392**
**10,255**
**2,794**
**283**
**19,679**|
||279
2,180
3,298
1,474
293
7,524
19
45
693
240
27
1,024
-
-
(35)
(62)
(60)
(157)|
||**298**
**2,225**
**3,956**
**1,652**
**260**
**8,391**|
||676
3,212
5,720
1,087
35
10,730|
||**657**
**3,167**
**6,299**
**1,142**
**23**
**11,288**|
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
43
## Notes to the accounts cont.
## **13. Fixed assets investments**
|**13. Fixed assets investments**|||
|---|---|---|
||**2021**
**2021**
**2021**|**2020**|
|Non-cash investments listed on a
recognised stock exchange:
Market value at 30 September 2020
Purchases
Disposals
Net investment gains / (losses)
**Market values of non-cash investments**
**at 30 September 2021**
Cash held for investments
Donation from IST
**Total investments**
Cost at 30 September 2021
Cost at 30 September 2020|**£'000**
**Listed**
**£'000**
**Other**
**£'000**
**Total**
69,859
925
70,784
7,380
-
7,380
(8,323)
-
(8,323)
9,991
-
9,991
**78,907**
**925**
**79,832**
1,490
-
1,490
-
-
-
**80,397**
**925**
**81,322**
**Listed**
**£'000**
**Other**
**£'000**
**Total**
**£'000**
**67,283**
**14**
**67,297**
66,717
14
66,731|**£'000**
**Total**
40,067
32,755
(4,246)
(2,060)|
|||**66,516**|
|||1,553
4,473|
|||**72,542**|
||||
The portfolio investments are invested in UK equities, overseas equities, commercial property funds and tracker funds. The portfolio of the Listed Investments at 30 September 2021 is as follows:
|**Investments categories**
Fixed interest – United Kingdom
Fixed interest – overseas
Equities – United Kingdom
Equites – North America
Equities – Europe (Ex. U.K)
Equities – Japan
Equities – Asia Pacific (Ex. Japan)
Emerging markets
Equities – global
Infrastructure
Property
Private equity
**Investments total**
Cash products
**Total**|**2021**
**£’000**
5,022
999
18,339
19,325
6,409
1,993
3,481
2,523
1,223
4,963
11,774
2,856
**78,907**
1,490
**80,397**|**2020**
**£’000**
5,870
1,510
15,303
17,001
4,171
2,184
2,487
2,919
824
3,603
11,176
2,812|
|---|---|---|
|||**69,860**|
|||1,758|
|||**71,618**|
44
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **14. Investment in subsidiary**
International Students House holds an investment of £1 in Park Crescent Conference Centre Limited, which is a trading company registered in England and Wales with company number 04096563. This £1 investment represents 100% of the ordinary share capital of Park Crescent Conference Centre Limited.
## **15. Debtors**
|**15. Debtors**|||
|---|---|---|
||**Consolidated**|**Charity**|
|Trade debtors
Amounts owed by purchasers for sale of premises
Amounts owed by connected trusts
- Toyota-Shi Trevelyan Trust
- International Students Trust
- Mary Trevelyan Fund
Amount owed by subsidiary
Other debtors
Prepayments and accrued income
Closing balance at 30 September
Provision for doubtful debts
Opening balance
Write-offs to provision
Addition to provision
Closing balance at 30 September|**2021**
**2020**
**£'000**
**£'000**
55
110
-
-
1
20
-
-
-
-
-
-
55
10
166
225
**277**
**366**
**Consolidated**
**2021**
**2020**
**£'000**
**£'000**
15
14
-
-
(9)
1
**6**
**15**|**2021**
**2020**
**£'000**
**£'000**
35
102
-
-
2
20
-
-
-
-
28
-
55
11
166
224|
|||**286**
**357**|
|||**Charity**
**2021**
**2020**
**£'000**
**£'000**
14
14
-
-
(9)
1|
|||**6**
**15**|
As at 30 September 2021, there was no debt (2019-20: nil) owed to International Students House by International Students Trust. All debts were settled prior to the charitable donation made by IST to ISH on 30 September 2020.
As at 30 September 2021, there was no debt (2019-20: nil) owed to ISH by the Mary Trevelyan Fund (MTF). All debts were settled prior to the charitable donation made by IST to ISH on 30 September 2020.
As at 30 September 2021, there was a debt of £1k (2019-20: £20k) owed to ISH by the Toyota-Shi Trevelyan Trust. This debt will be settled by a transfer of investment assets to the value of £1k in April 2022.
IST is now registered as a dormant charity of which John Garbutt is Chair and Shami Nathoo Company Secretary.
Mary Trevelyan Fund is a subsidiary charity of International Students Trust. Both IST and MTF have donated their assets (bar £1) to ISH on 30 September 2020 and now classified as dormant.
Toyota-Shi Trevelyan Trust is a registered charity of which Gill Hammond is the Chair and Shami Nathoo is the Company Secretary.
Park Crescent Conference Centre Limited (PCCC ltd.) is a trading subsidiary of ISH. PCCC ltd ended the financial year with a surplus of £35k (2019-20: £9k) and the profit will be paid as a distribution to ISH in 2021-22.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
45
## Notes to the accounts cont.
## **16. Creditors: amounts falling due within one year**
||**Consolidated**|**Charity**|
|---|---|---|
|Trade creditors
Amount owed to subsidiary
Other taxation and social security
Other creditors
Accruals and deferred income
**Closing balance at 30 September**|**2021**
**2020**
**£'000**
**£'000**
342
277
-
-
52
56
379
337
559
526
**1,332**
**1,196**|**2021**
**2020**
**£'000**
**£'000**
328
262
-
48
52
56
337
294
558
525|
|||**1,275**
**1,185**|
## **17. Provisions for liabilities and charges**
|**17.Provisions for liabilities and charges**||
|---|---|
||**Consolidated**|
|**Provision for liabilities and charges:**
Opening balance at 1 October
Provided during the year
Expenditure incurred during the year
**Closing balance at 30 September**|**2021**
**2020**
**£'000**
**£'000**
152
117
43
35
(146)
-
**49**
**152**|
Under the terms of its lease with the Crown Estate, International Students House is obliged to maintain the external fabric of the Great Portland Street site. The Governors decided to increase the provision for external redecoration in 2017-18 following the extension of the lease at Wills House in order to take into account the redecoration costs of both properties.
## **18. Movement in accruals and deferred income in the year**
||**Consolidated**|**Charity**|
|---|---|---|
|At 30 September 2020
Deferred income brought to account
Accrued expenditure paid out
Income received in year and deferred
Expenditure accrued at year end
**At 30 September 2021**|**2021**
**2020**
**£'000**
**£'000**
526
650
(370)
(457)
(156)
(193)
484
370
75
156
**559**
**526**|**2021**
**2020**
**£'000**
**£'000**
525
569
(369)
(376)
(156)
(193)
483
369
75
156|
|||**558**
**525**|
Deferred income principally consists of prepayments of accommodation income.
46
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **19. Analysis of net assets between funds – consolidated**
|**Fund balances as at 30 September 2021**
**are represented by:**
**Consolidated assets**
Tangible fixed assets
Current assets and investments
Current liabilities
Long term liabilities
Provision for liabilities and charges
Movement in reserves
**Total net assets**
**Consolidated funds**
General fund (unrestricted)
Funds for major repairs (designated)
Reserve for future purposes (designated)
ISH Scholarship Fund (designated)
International Students Trust Fund (restricted)
Mary Trevelyan Fund (restricted)
William Ross Murray Scholarship (restricted)
ISH African Students Bursary (restricted)
Tara Nirula Arts Scholarship (restricted)
Ellenor Mary Anwyl Scholarship (restricted)
Wahid Butt Scholarship (restricted)
Kirby Laing Foundation Scholarship (restricted)
Rose Fung Memorial Scholarship (restricted)
Goats Indian Scholarship Fund (restricted)
**Total funds**|**General fund**
**(unrestricted)**
**Designated**
**funds**
**Restricted**
**funds**
**Total funds**
**£'000**
**£'000**
**£'000**
**£'000**
11,288
-
-
**11,288**
15,576
61,210
5,532
**82,318**
(1,332)
-
-
**(1,332)**
-
-
-
**-**
(49)
-
-
**(49)**
(8,600)
8,600
-
**-**|
|---|---|
||**16,883**
**69,810**
**5,532**
**92,225**|
||**Balance**
**1/10/20**
**Income**
**Expenditure**
**Gains/**
**losses**
**Transfer**
**between**
**funds**
**Balance**
**30/09/21**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
16,896
4,845
(5,670)
9,112
(7,300)
**17,883**
600
-
-
-
300
**900**
58,000
-
-
-
7,000
**65,000**
2,635
98
(170)
317
30
**2,910**
4,178
111
(158)
454
-
**4,585**
295
10
(27)
41
-
**319**
84
-
-
10
-
**94**
305
9
(13)
37
-
**338**
94
3
(8)
11
-
**100**
63
-
-
7
-
**70**
15
-
-
1
-
**16**
30
11
(11)
-
(30)
**-**
11
-
(11)
-
-
**-**
9
-
-
1
-
**10**|
||**83,215**
**5,087**
**(6,068)**
**9,991**
**-**
**92.225**|
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
47
## Notes to the accounts cont.
## **The ISH Scholarship Fund**
The ISH Scholarship Fund is a designated fund which was established in 1996 to fund scholarships for students from the developing world. During 2020-21 this fund will receive £150k from International Students Trust restricted fund and will expend an additional £636k on scholarships for students from developing countries.
## **The Goats Indian Scholarship Fund**
The Goats Indian Scholarship Fund was established in 2013 to fund scholarships for students from India.
## **The William Ross Murray Scholarship**
The William Ross Murray Scholarship was established in 1998 to fund scholarships for students from the developing world.
## **The International Students House African Students Bursary**
The International Students House African Students Bursary was established in 2000 and provides scholarships to students born and resident in Africa who wish to study in London.
## **The Tara Nirula University of the Arts Scholarship**
The Tara Nirula University of the Arts Scholarship was established in 2008 and provides tuition fees, accommodation and food for a student from India with a place on a Masters course at the London College of Fashion, University of the Arts.
## **The Ellenor Mary Anwyl Scholarship**
The Ellenor Mary Anwyl Scholarship was established in 2014. It has provided a Masters scholarship since 2016 for a female student from South Asia, jointly awarded and funded with the School of Oriental and African Studies.
## **The Kirby Laing Foundation Scholarship**
The Kirby Laing Foundation Scholarship was established in 2015 and supports the accommodation element for an ISH scholar for an initial term of three years studying an academic discipline and coming from a country that is of interest to the Foundation.
## **Wahid Butt donation**
Wahid Butt made a donation in 2018 of funds to be used towards accommodation for an ISH scholar from Palestine or Pakistan, studying science or medicine. To date, the funds have not been awarded as none of ISH's scholarship partners have co-funded a scholar with this profile.
## **The Rose Fung Memorial Scholarship**
The Rose Fung Memorial Scholarship was set up in 2020 by Alumna Wendy Fung to support the accommodation costs of a scholar living at ISH and for a Masters student studying at UCL (Institute of Global Health).
48
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **20. Analysis of net assets between funds – charity**
|**Fund balances as at 30 September 21**
**are represented by:**
Charity assets
Tangible fixed assets
Current assets and investments
Current liabilities
Long term liabilities
Provision for liabilities and charges
Movement in reserves
**Total net assets**
**Charity funds**
General fund (unrestricted)
Funds for Major Repairs (designated)
Reserve for Future Purposes (designated)
ISH Scholarship Fund (designated)
International Students Trust Fund (restricted)
Mary Trevelyan Fund (restricted)
William Ross Murray Scholarship (restricted)
ISH African Students Bursary (restricted)
Tara Nirula Arts Scholarship (restricted)
Ellenor Mary Anwyl Scholarship (restricted)
Wahid Butt Scholarship (restricted)
Kirby Laing Foundation Scholarship
(restricted)
Rose Fung Memorial Scholarship (restricted)
Goats Indian Scholarship Fund (restricted)
Total funds|**General fund**
**(unrestricted)**
**Designated**
**funds**
**Restricted**
**funds**
**Total funds**
**£'000**
**£'000**
**£'000**
**£'000**
11,287
-
-
**11,287**
15,485
61,210
5,532
**82,227**
(1,275)
-
-
**(1,275)**
-
-
-
**-**
(49)
-
-
**(49)**
(8,600)
8600
-
**-**
**16,848**
**69,810**
**5,532**
**92,190**
**Balance**
**1/10/20**
**Income**
**Expenditure**
**Gains/**
**losses**
**Transfer**
**between**
**funds**
**Balance**
**30/09/21**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
16,887
3,948
(4,799)
9,112
(7,300)
**17,841**
600
-
-
-
300
**900**
58,000
-
-
-
7,000
**65,001**
2,635
98
(170)
317
30
**2,910**
4,178
111
(158)
454
-
**4,585**
295
10
(27)
41
-
**319**
84
-
-
10
-
**94**
305
9
(13)
37
-
**338**
94
3
(8)
11
-
**100**
63
-
-
7
-
**70**
15
-
-
1
-
**16**
30
11
(11)
-
(30)
**-**
11
-
(11)
-
-
**-**
9
-
-
1
-
**10**|**General fund**
**(unrestricted)**
**Designated**
**funds**
**Restricted**
**funds**
**Total funds**
**£'000**
**£'000**
**£'000**
**£'000**
11,287
-
-
**11,287**
15,485
61,210
5,532
**82,227**
(1,275)
-
-
**(1,275)**
-
-
-
**-**
(49)
-
-
**(49)**
(8,600)
8600
-
**-**|
|---|---|---|
|||**16,848**
**69,810**
**5,532**
**92,190**|
||**83,206**
**4,190**
**(5,197)**
**9,991**
**-**
**92,190**||
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
49
## Notes to the accounts cont.
## **21. Total resources expended**
|**2021**
Raising funds
Charitable activities
**Total resources expended**
**2020**
Raising funds
Charitable activities
**Total resources expended**|**Grants**
**Other direct costs**
**Support costs**
**£'000**
**£'000**
**£'000**
-
656
923
149
1,641
2,699
**149**
**2,297**
**3,622**
**Grants**
**Other direct costs**
**Support costs**
**£'000**
**£'000**
**£'000**
-
1,062
1,094
150
2,172
3,092
**150**
**3,234**
**4,186**|**Total 2020**
**£'000**
1,579
4,489|
|---|---|---|
|||**6,068**|
|||**Total 2020**
**£'000**
2,156
5,414|
|||**7,570**|
Bursaries and grants paid are allocated on the basis of need and merit, after careful consideration of applications received with reference to the allocation terms of the various funds.
Cost allocation includes an area of judgment, and the charity has had to consider the cost benefit of detailed calculations and record keeping. Direct overheads including payroll are allocated within other costs above. Indirect costs have been allocated on the basis of the table below.
## **Support costs and basis of allocation:**
|**Nature of cost**
**Allocation basis**
Staff payroll and on costs
Estimated time spent
Premises and utilities
Floor area
Administration and other overheads
Sales income
**Total support costs**|**£’000**
1,410
1,541
671|
|---|---|
||**3,622**|
50
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **22. Pension schemes**
Pension arrangements for staff of International Students House are based on final salary benefit schemes with the University Superannuation Scheme (USS) Ltd for a couple of senior staff and the Superannuation Arrangements of the University of London (SAUL) for other staff.
## **Universities Superannuation Scheme (USS)**
## Significant accounting policies
The institution participates in USS. With effect from 1 October 2016, the scheme changed from a defined benefit only pension scheme to 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 schemewide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis.
## Critical accounting judgements
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 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 (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 directors are satisfied that the scheme provided by USS meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.
As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme.
Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
51
## Notes to the accounts cont.
## Pension costs
The total cost charged to the Income and Expenditure statement for the year ending 30 September 2020 was £60,671 (2018-19: £55,472).
The most recent formal valuation was carried at as at 31 March 2018. Part of the conclusion of that valuation was an agreement that a further valuation as at 31 March 2020 would be carried out. This is now underway and will be finalised in 2021.
In any actuarial valuation, a value is placed on the liabilities assuming that the scheme is ongoing, which is known formally as the ‘technical provision’. It is this technical provision basis that is typically used when referring to the value of the scheme’s liabilities.
Since the 2020 valuation is still underway, a funding position as at 31 March 2020 has been prepared using the approach adopted for the 2018 valuation.
The actuarial update allows for expected benefit payments and changes in membership since 2018, and changes to market conditions as well as investment return expectations.
The table below shows that the deficit on the monitoring approach has increased by £2.3bn, from £12.9bn in 2020 as, although assets rose by £14.1bn, liabilities increased by £16.4bn. It has to be noted the value of the liabilities at 31 March 2021 presented does not reflect the same assumption used to finalised the 2020 valuation and in particular the impact of movements over the year to 31 March 2021 will differ under the different measures. The resulting deficit at 31 March has risen by £11.6bn relative to £3.6bn at the 2018 valuation.
The chart below details the underlying drivers of the change in the deficit using the monitoring approach.
|**Pension scheme funding position at 31 March**||**£’ Billions**|||
|---|---|---|---|---|
||**2018**|**2019**|**2020**|**2021**|
|Total assets|63.7|67.4|66.5|80.6|
|Total liabilities|67.3|72.8|79.4|95.8|
|Past service surplus / (shortfall)|(3.6)|(5.4)|(12.9)|(15.2)|
|Funding ratio|95%|93%|84%|84%|
Change in deficit since 2018 valuation (monitoring approach)
**----- Start of picture text -----**
0
(3.6)
(5)
(3.8)
(15.2)
(10)
(7.3)
(6.5)
(15)
16.0
(20)
(16.7)
(25)
6.7
(30)
(35)
initial deficit Interest on Accrual of Effect of market Contribution Returns Change in Monitoring
31/03/18 liabilities new benefits conditions on investment achieved expected deficit
liabilities investment returns 31/03/20
**----- End of picture text -----**
52
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## Other approaches
The value placed on the Scheme’s liabilities can be measured on a number of different bases, including technical provisions, buy-out, best estimate and selfsufficiency basis.
Technical provisions and self-sufficiency bases are regularly monitored and the buy-out and best estimate bases are updated at each actuarial valuation. The table below summarises the scheme’s position on a selfsufficiency basis. Self-sufficiency is based on the ‘guaranteed’ cash-flows available from the low risk investments.
As at 31 March 2018, the Scheme actuary estimated the cost on a buy-out basis at £113.8bn. As a result, the deficit on this basis was £50,1bn. A buy-out basis gives the worst view of the liabilities. However, on a best estimate basis, liabilities at 31 March 2018 were £5.4bn, implying a surplus on this basis of £9.4bn.
Although not required, figures were also produced under the FRS 102 accounting approach which uses a discount rate based on corporate bond yields. Using this approach as at 31 March 2021 produces liabilities of £95.5bn and a deficit of £14.9bn.
|**Scheme’s position as at 31 March**||**£’ Billions**|||
|---|---|---|---|---|
||**2018**|**2019**|**2020**|**2021**|
|Value of assets|63.7|67.4|66.5|80.6|
|Self-sufficiency liabilities|84.5|92.0|96.9|116.1|
|Surplus / (Deficit)|(20.8)|(24.6)|(30.4)|(35.5)|
|Funding ratio|75%|73%|69%|69%|
## Deficit recovery plan
The USS scheme is currently undergoing a deficit recovery programme. The recovery plan in the 2018 actuarial valuation requires employers to make additional contributions towards repairing the deficit.
These contributions are 2% of salaries from 1 October 2019 to 30 September 2021, increasing to 6% from 1 October 2021 to 31 March 2028. Thus, the recovery plan aims to recover the deficit over a ten-year period.
The conclusion was that there was good visibility of the ongoing strength of the covenant over the next 30 years, but the position became less clear after that.
It is estimated that International Students House’s liability under this programme is £55,136. This amount has been reflected in the financial statements above under other creditors.
The actuarial report determined this plan following extensive work on the ability of the scheme’s sponsoring employers to financially support the scheme - the ‘covenant’.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
53
## Notes to the accounts cont.
## **Superannuation Arrangements of the University of London (SAUL)**
ISH participates in the SAUL, which is a centralised defined benefit scheme within the United Kingdom and was contracted out of the Second State Pension (prior to April 2016).
SAUL is an independently managed pension scheme for the non-academic staff of over 50 colleges and institutions with links to higher education.
Pension benefits accrued within SAUL currently build up on a Career Average Revalued Earnings (CARE) basis.
ISH is not expected to be liable to SAUL for any other current participating employer's obligations under the Rules of SAUL, but in the event of an insolvency of any participating employer within SAUL, an amount of any pension shortfall (which cannot otherwise be recovered) in respect of that employer, may be spread across the remaining participating employers and reflected in the next actuarial valuation.
## Funding policy
SAUL's statutory funding objective is to have sufficient and appropriate assets to meet the costs incurred by the Trustee in paying SAUL's benefits as they fall due (the "Technical Provisions"). The Trustee adopts assumptions which, taken as a whole, are intended to be sufficiently prudent for pensions and benefits already in payment to continue to be paid and for the commitments which arise from Members' accrued pension rights to be met.
The Technical Provisions assumptions include appropriate margins to allow for the possibility of events turning out worse than expected. However, the funding method and assumptions do not completely remove the risk that the Technical Provisions could be insufficient to provide benefits in the future.
A formal actuarial valuation of SAUL is carried out every three years by a professionally qualified and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2020. Informal reviews of SAUL's position, reflecting changes in market conditions, cash flow information and new accrual of benefits, are carried out between formal valuations.
At the 31 March 2020 valuation, SAUL was 94% funded on its Technical Provisions basis. However, market movements following the valuation date were positive and the Trustee and the Employers agreed to allow for post-valuation experience up to 30 April 2021.
As SAUL was in surplus on its Technical Provisions basis at that date, no deficit contributions were required. However, the Trustee and the Employers have agreed that the ongoing Employers' contributions will increase from a rate of 16% of CARE Salaries to 19% of CARE Salaries from 1 April 2022 and to 21% of CARE Salaries from 1 January 2023.
## Accounting policy
ISH is a Participating Employer in SAUL. The actuarial valuation applies to SAUL as a whole and does not identify surpluses or deficits applicable to individual employers. As a whole, the market value of SAUL's assets at 31 March 2020 was £3,612 million representing 94% of the liabilities.
The market value of SAUL's assets at 30 April 2021 was £4,369 million representing 109% of the estimated liabilities.
It is not possible to identify an individual Employer's share of the underlying assets and liabilities of SAUL. ISH accounts for its participation in SAUL as if it were a defined contribution scheme and pension costs are based on the amounts actually paid (i.e. cash amounts) in accordance with paragraphs 28.11 of FRS 102.
Although there was a Technical Provisions deficit at 31 March 2020, allowing for post valuation experience to 30 April 2021, SAUL had a Technical Provisions surplus. Therefore, no deficit contributions were required following the 2020 valuation and there is no defined benefit liability (i.e. the present value of any deficit contributions due to SAUL) to be recognised by ISH.
The defined benefit liability to be recognised by International Students House in respect of the deficit contributions due to SAUL (i.e. the present value of the deficit contributions) is £91,983 as at 30 September 2021. This liability is based on a projection of Salaries over the period to 30 September 2023 and has been reflected in the financial statements above under other creditors.
The funding principles were agreed by the Trustee and employers in June 2021 and will be reviewed again at SAUL's next formal valuation in 2023.
54
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
## **23. Subsidiaries**
The Charity’s trading subsidiary, Park Crescent Conference Limited, which is wholly owned and registered in England and Wales, was activated during 2005-06. The Charity holds 100% of the ordinary share capital of the company which is £1.
Its principal activity is the supply of conference, bar and related facilities and services to residents, clients and patrons.
Results for the year ended 30 September 2021 were as follows:
||**2021**||**2020**|
|---|---|---|---|
|**Profit and loss account**|**£**||**£**|
|Turnover|913,630||1,280,639|
|Costs of sales|(271,456)||(294,865)|
|**Gross profit**|**642,174**||**985,774**|
|Other expenses|(607,559)||(976,601)|
|**Profit/ (loss) for the year**|**34,615**||**9,173**|
|||||
|**Balance sheet**||||
|Net assets|34,616||9,174|
|Share capital|1||1|
|Retained profit/ (loss)|34,615||9,173|
|**Total shareholders' funds**|**34,616**||**220,517**|
During the year Park Crescent Conference Limited made a surplus of £34,615 (2019-20: £9,173); this amount will be paid as a distribution in 2021-22 to International Students House.
## **24. Related parties**
International Students House is a registered charity and a company limited by guarantee, of which Gill Hammond is the Chair and Shami Nathoo is the Company Secretary.
There were no transactions with these parties during the year (2019-20: £213k).
Amounts owed by connected trusts at the year-end are disclosed in notes 14 and 15.
ISH is connected with two other charities; the Toyota-Shi Trevelyan Trust of which Gill Hammond is the Chair; and International Students Trust, a dormant charity of which John Garbutt is the Chair. Shami Nathoo is the Company Secretary of both these charities.
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
55
## Notes to the accounts cont.
## **25. Charitable donation from IST to ISH**
IST made a charitable donation of all its assets (except £1) on 30 September 2020. The income and expenditure statement and balance carried forward at 30 September 2021 are as follows:
||**2021**|**2020**|
|---|---|---|
|**Income and expenditure statement**|**£**|**£**|
|Total incoming resources|-|254,278|
|Total resources expended|-|(226,790)|
|**Net operating income/ (expenditure)**|**-**|**27,488**|
|Net gains/ (losses) on investment assets|-|(55,054)|
|**Net movement in funds for the year**|**-**|**(27,566)**|
||||
|Balance brought forward|1|4,500,683|
|Donation to ISH on 30 September 2020|-|(4,473,116)|
|**Balance carried forward**|**1**|**1**|
## **26. Operating lease commitments**
At 30 September 2021, ISH had outstanding commitments for future minimum lease payments under non-cancellable operating lease.
||**2021**|**2020**|
|---|---|---|
|**Office equipment**|**£**|**£**|
|Due within one year|20,040|18,399|
|Due between two to five years|37,943|50,598|
|Due after more than five years|-|-|
||**57,983**|**68,997**|
## **27. Capital commitments**
At 30 September 2021, the group had capital commitments for fixtures and fittings (basement ventilation and fire alarms system) of £128k (2019-20: £1,100k).
## **28. Taxation**
International Students House is a registered charity and as such its income and gains falling within s505 ICTA 88 or s256 TCGA 92 are exempt from corporation tax to the extent that they are applied to its charitable objectives. Its subsidiary Park Crescent Conference Limited has not incurred a tax charge, as it has donated the surpluses it has achieved in the last few financial years to ISH.
56
International Students House: report and financial statements 2021 A Registered Charity and Company Limited by Guarantee No. 724811
International.
students House
ish.org.uk
Annual Report 2021