Charity registration number SC031415 (Scotland)
Company registration number SC217303 (Scotland)
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
LEGAL AND ADMINISTRATIVE INFORMATION
Patron
His Highness Shaikh Rashid Bin Hamdan Al-Maktoum
Chancellor
Lord Elder
Head of College
Dr Abubaker Gaber Abubaker
Directors
Mirza Al-Sayegh
Dr Abubaker Abubaker
Fraser Macpherson
(Appointed 12 September 2023)
Helen Wright
(Appointed 12 September 2023)
Dr Mohamed El-Haram
(Appointed 12 September 2023)
Paul Clancy
(Appointed 12 September 2023)
Alison Henderson
(Appointed 12 September 2023)
Jill Shimi
(Appointed 12 September 2023)
Professor Robert Horner
(Appointed 12 September 2023)
Professor Faisel Khan
(Appointed 12 September 2023)
Secretary
Dr AG Abubaker
Charity number (Scotland)
SC031415
Company number
SC217303
Registered office
124 Blackness Road
Dundee
DD1 5PE
Auditor
Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
Bankers
Bank of Scotland PLC
63 High Street
Dunblane
FK15 0EJ
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
CONTENTS
Page
Directors' report
1 - 6
Statement of Directors' responsibilities
7
Independent auditor's report
8 - 11
Statement of financial activities
12
Balance sheet
13
Statement of cash flows
14
Notes to the financial statements
15 - 30
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The Directors present their annual report and financial statements for the Period ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Al-Maktoum College of Higher Education was founded in 2001 to bridge the possible gap between the Muslim and western worlds by focusing on intelligent debate and scientific understanding of Islam and the role of Muslims in the contemporary world. In its relatively short history, over 1800 students from over 40 countries have successfully graduated from College programmes. The College has widened its scope as a Scottish Qualifications Authority (SQA) Centre and has collaborative arrangements with several higher education institutions at home and abroad.

 

During the period, the College has embarked on implementing its strategy for 2022 – 2027. The vision for the next phase of our development is to be a higher education institution dedicated to multi-cultural learning, recognised internationally, nationally, and locally for the quality of its teaching and research.

 

The objective of the college, since it’s foundation by the late Shaikh Hamdan Bin Rashid Al-Maktoum, has been to establish itself as an internationally acclaimed, independent, free standing university college. To get there, it has been necessary to form links with several partner institutions, and to enable the College to engage in teaching and award degrees under the auspices of these institutions. This has proved at times a fraught process. But the objective was to get us in a position where we can award degrees ourselves, and to do so as an institution which brought credit to the name of the College, and the memory of our late founder.

Achievements and performance

The College corporate and academic governance operated successfully during period from 1st August 2022 to 31st December 2023. The Academic Council along with its main Committees (Teaching, Learning and Student Experience Committee, Academic Quality and Standards Committee and the Boards of Study) have operated effectively and efficiently in ensuring academic standards at the College and governing the efficient delivery of the academic programmes. The College Council and its committees, Finance and General Purposes and Community Services Committee have continued to provide support and valuable advice to the College management team. This serves to ensure the College is functioning in accordance with a clear structure and rationale to achieve its stated aims and objectives.

 

The Scottish Qualifications Authority (SQA) remains the College’s main accrediting body providing SCQF accreditation to our suite of customised awards as well as SQA HNC/HND qualifications. As a result, we continue to engage with the Students Awards Agency for Scotland (SAAS) who approve the College as a Scottish private college and training provider. This allows students taking SQA HNC/HND qualifications at the College access to government funding, we aim to increase the offering of these qualifications at the College.

 

The College continues to be recognised as a provider of UK higher education by the Quality Assurance Agency (QAA) having successfully undergone a Higher Education Review and UK Visa & Immigration (UKVI) as a Sponsor. We work extremely hard to ensure this highly important recognition is maintained.

 

The relationship with the University of Dundee is progressing satisfactorily. The MSc programmes in Islamic Finance continue to be offered and are gaining in academic reputation as manifested by the levels of student recruitment. Recruitment on the PhD programmes in Islamic Finance has also seen significant interest and have recruited several candidates undertaking postgraduate research. These programmes generate significant income for the College from tuition fees. Addition of further pathways on the MSc programme as well as an undergraduate degree programme in Islamic Accountancy and Finance were agreed and will be offered from September 2024.

 

Further to the establishment of the ‘Al-Maktoum Centre for Middle Eastern Studies’ at Trinity College Dublin, the MPhil programme in ‘The Middle East in a Global Context’ accredited by Trinity College Dublin has been offered as an online course since September 2022. Plans are progressing to offer this as a hybrid programme with students based in Dundee.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

Two of the programmes offered in collaboration with Abertay University, MSc Strategic Organisational Learning, and MSc Moral Economy, Sustainable Development have recruited well when first offered in January and September 2023. The Postgraduate research programme was also launched towards the end of 2023 and students are currently being recruited. Discussions are on-going to add to the range of programmes on offer.

 

This is in addition to the existing articulation agreement with Abertay University providing a route into 2nd or 3rd year university degree programme in relevant subjects upon successful completion of HNC/HND programmes in Business, Human Resource Management and Management & Leadership offered at the College.

We believe that with these links, we are on our way to being an independent, self-sustained institution, both academically and financially. And there are further possible links which would, if successful, further strengthen our position. Our strategic plans provide an indication of the potential for the College to become increasingly financially sustainable as a result of current and future growth and development initiatives. We continue to seek to develop new income streams, through developing a blended learning and online learning approaches to our teaching and assessment. This has contributed already to the growth in our student numbers, and we are seeking to continue to invest in and develop our teaching approaches.

Financial review

The financial results are set out in the statement of financial activities on pages 7 - 8.

Reserves Policy

The College is funded primarily through donations from the Al-Maktoum Foundation to continue to support the College's programmes. The College continues to develop other revenue streams to ensure it is financially and operationally sustainable.

 

The Al-Maktoum College will hold reserves for the following main purposes:

 

Types of Reserves

Reserves are the funds that are available which can be freely spent on any charitable purpose. Reserves can be categorised as Unrestricted (General) or Restricted.

 

Unrestricted (General) Reserves

Unrestricted (General) Reserves Unrestricted Reserves are funds which do not have any restrictions as to their use. The level of Unrestricted Reserves is a matter of judgement and so this policy does not attempt to prescribe a blanket level. The primary means of building general reserves will be through an allocation from the annual budget. This will be in addition to any amounts needed to replenish reserves that have been consumed in the previous year.

 

Restricted Reserves

Restricted reserves will be established on a "needs“ basis, in line with anticipated requirements. Restricted Reserves that have been used to meet a specific liability (or project) would not need to be replenished, having served the purpose for which they were originally established.

 

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

Current level of financial reserves

The Board of Directors have considered the reserves required by the College, having taken into account their current and future liabilities. The directors aim to maintain unrestricted (General) funds, which are those not committed or invested in tangible fixed assets, at a level which equates to approximately six months unrestricted charitable expenditure. The directors consider that this level will provide sufficient funds to ensure that both ongoing charitable expenditure and support and governance costs are covered. The directors consider it will be prudent to add to the general reserves each year to maintain an adequate level of reserves. This level of general reserves will be maintained through topping up the reserves out of any savings realised during the year and/or by inclusion of a percentage amount to the annual budget as required.

 

At present the free reserves amount to £1,129,540 (2022 - £1,263,666). The free reserves amount means that the conditions of the reserves policy have been met this year.

 

Total reserves amount to £1,175,139(2022 - £1,315,728) of which restricted reserves amount to £45,599 (2022 - £52,062).

 

Policy Monitoring and Review

It is recognised that the reserves policy is not a static document as needs may change, the financial position of the College may change or plans may alter. If reserves during the year fall below or exceed target, the College should consider whether this is a short term situation or an indicator of a long-term issue. In such cases action may be required to replenish or spend reserves. This highlights the need for active monitoring and review of the policy.

 

This policy will be monitored on a quarterly basis and reviewed and approved annually (at financial year-end) by the Senior Management Team.

The main source of funding for the College continues to be the Al-Maktoum Foundation in Dubai. Income representing 30-40% of the College's operational budget is raised from student tuition fees and other income generation activities.

Investment Policy

All the College's funds are to be spent in the short term so there are no funds for the long term.

Plans for future periods

The overriding objective for the College is to embark on the road towards financial sustainability, we should be operating as an educational business with a clear business strategy for effective income generation, growth, and development. We will continue to further develop our potential, and to have a clear philosophy in place to enable us to put a model for future growth into practice in all that we do in the future.

 

Our key strategic priorities for the future include:

 

1. The College will constantly strive for excellence as we continue our commitment to delivering high quality and affordable education in different disciplines with a range of courses, offering value for money, competitive tuition fees with flexible payment options.

 

2. Working with our partners we will continue to develop educational programmes and professional development courses to establish, maintain and enhance a distinctive contribution to society at the local, national, and international levels. In addition, we will significantly increase student numbers and maximise our income generation activities.

 

3. Fully explore the potential for innovative teaching methods developing potential for Blended/Hybrid and fully on-line teaching methods to reach wider markets widening access to educational programmes and demonstrating flexibility.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -

4. Further to the development of the Dundee Centre for Business Excellence, develop and deliver a range of residential training and development programmes aimed at governmental and corporate levels in a range of areas.

 

5. Our organisational culture will continue to embrace and value the richness that a diverse, multicultural student and staff community brings to the life of the College. We will continue to be multi-disciplinary - linking studies of different cultures with business, finance and associated subjects, striving for quality in all that we do and deliver.

 

 

Charitable grants and donations

During the period the company made charitable grants and donations amounting to £8,317 (2021 - £59,011). Small donation applications are considered by a sub-committee of the College Council members.

 

Company status

The company is limited by guarantee under the Companies Act 2006 and is a recognised charity. The liability of the members is limited to £1. Permission has been granted by the Secretary of State for Trade and Industry for the word “Limited” to be omitted.

 

Members of the Board of Directors

Members of the Board of Directors, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the period and up to the date of this report are set out on page 1.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 26 March 2001 and obtained charitable status from the Inland Revenue with effect from 26 March 2001 and registered as a charity with the Scottish Charity Regulator (OSCR). The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

 

All directors are already familiar with the practical work for the College and are familiar with the following:

 

 

The directors have considered a policy on induction and training prior to new directors being approached. This includes an awareness of a director's responsibilities, the governing document, administrative procedures, the history and philosophical approach of the charity. A new director trustee would receive copies of the previous period’s financial statements, minutes of directors’ meetings and a copy of the OSCR leaflet “Guidance for Charity Trustees - acting with care and diligence appropriate.

 

Training is offered to current directors as and when required.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -

Key management

The directors consider the board of directors, which includes the Head of College and Vice Chancellor, comprise key management personnel of the charity in charge of directing, controlling, running, and operating the College on a day-to-day basis. One director is remunerated in his capacity as Head of College and Vice Chancellor. A further director (now deceased) was reimbursed expenses for attendance at board meetings. The remuneration of the Head of College is reviewed annually and normally increased in accordance with average earnings.

 

 

Mirza Al-Sayegh
Dr Abubaker Abubaker
MO Ghannam
(Resigned 18 February 2024)
Lord M Elder
(Deceased 25 October 2023)
Fraser Macpherson
(Appointed 12 September 2023)
Helen Wright
(Appointed 12 September 2023)
Dr Mohamed El-Haram
(Appointed 12 September 2023)
Paul Clancy
(Appointed 12 September 2023)
Alison Henderson
(Appointed 12 September 2023)
Jill Shimi
(Appointed 12 September 2023)
Sheena Gibson
(Appointed 12 September 2023 and resigned 22 May 2024)
Professor Robert Horner
(Appointed 12 September 2023)
Professor Faisel Khan
(Appointed 12 September 2023)

The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Board of Directors. Under the requirements of the Memorandum and Articles of Association there is no age limit for members of the Board of Directors.

Organisational Structure

The Al-Maktoum College of Higher Education is managed under the authority of the Board of Directors. The directors determine the strategy and general policy of the College. The Head of College and Vice Chancellor is the Chief Executive Officer of the College, who may delegate part of his authority and responsibility to any senior member of the College.

 

The College corporate and academic governance continues to operate successfully. The Academic Council along with its main Committees (Teaching, Learning and Student Experience Committee and Academic Quality and Standards Committee) operate effectively and efficiently in ensuring academic standards at the College and governing the efficient delivery of the academic programmes.

 

Corporate Governance at the College has seen substantial restructuring with several changes been introduced. The main change was to disband the College Council as an advisory body. The Board of Directors was expanded with several members of the College Council transitioning to the new Board. The Memorandum and Articles of Association were also updated.

 

The College is now embarking on the next phase of its journey, to reconnect with its early achievements and to drive forward an exciting path of development and growth to ensure its sustainable success. We are demonstrating our contribution and longevity within higher education, as a valid, authoritative, and high-quality provider of programmes and inter- and multi-disciplinary research relating to the subject areas of interest.

Risk Management

The directors have assessed the major risks to which the College is exposed, in particular those related to the operations and finances of the College and are satisfied systems have been put in place to mitigate the College’s exposure to the major risks. These procedures are periodically reviewed to ensure that they continue to meet the needs of the College. The principal risk is the reliance on continued funding from Al-Maktoum Foundation in Dubai. This is mitigated by submitting budgets for the following year to the funder and seeking approval well in advance of the year end. In addition, the College has embarked on a growth strategy, setting up new partnerships, increasing programmes of study on offer, recruiting more students, generating income from tuition fees, and developing new income streams.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
Auditor

In so far as the directors are aware:

 

 

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

Disclosure of information to auditor

Each of the Directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Directors' report was approved by the Board of Directors.

Dr Abubaker Abubaker
Director
18 October 2024
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
STATEMENT OF DIRECTORS' RESPONSIBILITIES  
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -

The directors, who also act as trustees for the charitable activities of #cd2, are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that Period.

 

In preparing these financial statements, the Directors are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS AND DIRECTORS OF AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
- 8 -

Opinion

We have audited the financial statements of Al-Maktoum College of Higher Education (the ‘charity’) for the Period ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the Period 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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 charity 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 the provisions available for small entities, in the circumstances set out in note 29 to the financial statements, 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

 

Material Uncertainty relating to Going Concern

 

In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

We draw your attention to note 1 in the financial statements with regard to the going concern of the company. As stated the financial needs of the company are met with support from the Foundation in Dubai. At the time of approving the accounts no formal confirmation had been received regarding the full funding and there had been historical delays in funding being received. The directors are confident this funding will be forthcoming.

 

The uncertainty over the receipt of the full funding required indicate that a material uncertainty exists which may cast doubt on the ability of the charity’s ability to continue as a going concern, although the accounts continue to be prepared on a going concern basis.

 

Our opinion is not modified in respect of this matter

 

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

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS AND DIRECTORS OF AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
- 9 -

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 Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

-

In our opinion, based on the work undertaken in the course of our audit:

-

the directors' report included within the Directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-

adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

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

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit; or

-

the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a strategic report.

Responsibilities of Directors

As explained more fully in the statement of Directors' responsibilities, the Directors 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 Directors 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 Directors are responsible for assessing the charity’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 Directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS AND DIRECTORS OF AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
- 10 -
Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material mis-statements in respect of irregularities, including fraud and non-compliance with laws and regulations is detailed below

 

The audit team has appropriate skills and expertise required and through discussions with management and Directors knowledge of the sector to ensure any non compliance is recognised and all necessary disclosures are made. The controls in place help the charity mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.

 

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS AND DIRECTORS OF AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
- 11 -

Because of the field in which the client operates we identified the following areas as those most likely to have a material impact on the financial statements:

 

Direct impact on financial statements:

 

Indirect impact on financial statements:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters 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 anyone other than the charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Lesley Campbell, BA, C.A. (Senior Statutory Auditor)
for and on behalf of Findlays Audit Limited
Chartered Accountants
Statutory Auditor
DD3 6TS
18 October 2024
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
1,318,069
-
1,318,069
1,093,483
99,975
1,193,458
Charitable activities
4
1,305,940
-
1,305,940
448,979
-
448,979
Other trading activities
5
19
-
19
402
-
402
Investments
6
4,305
-
4,305
-
-
-
Other income
7
7,334
-
7,334
46,405
-
46,405
Total income
2,635,667
-
2,635,667
1,589,269
99,975
1,689,244
Expenditure on:
Charitable activities
8
2,769,793
6,463
2,776,256
1,329,020
159,628
1,488,648
Total expenditure
2,769,793
6,463
2,776,256
1,329,020
159,628
1,488,648
Net income/(expenditure) and movement in funds
(134,126)
(6,463)
(140,589)
260,249
(59,653)
200,596
Reconciliation of funds:
Fund balances at 1 August 2022
1,263,666
52,062
1,315,728
1,003,417
111,715
1,115,132
Fund balances at 31 December 2023
1,129,540
45,599
1,175,139
1,263,666
52,062
1,315,728

The statement of financial activities includes all gains and losses recognised in the Period. All income and expenditure derive from continuing activities.

The notes on pages 15 to 30 form part of these financial statements.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
15
402,280
420,196
Current assets
Debtors
16
433,390
66,313
Cash at bank and in hand
517,335
1,039,114
950,725
1,105,427
Creditors: amounts falling due within one year
17
(157,857)
(175,858)
Net current assets
792,868
929,569
Total assets less current liabilities
1,195,148
1,349,765
Creditors: amounts falling due after more than one year
18
(20,009)
(34,037)
Net assets excluding pension liability
1,175,139
1,315,728
Net assets
1,175,139
1,315,728
The funds of the charity
Restricted income funds
21
45,599
52,062
Unrestricted funds
1,129,540
1,263,666
1,175,139
1,315,728

The notes on pages 15 to 30 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Directors on 18 October 2024
Professor Robert Horner
Director
Company registration number SC217303 (Scotland)
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(491,021)
320,868
Investing activities
Purchase of tangible fixed assets
(35,063)
(40,266)
Investment income received
4,305
-
Net cash used in investing activities
(30,758)
(40,266)
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(521,779)
280,602
Cash and cash equivalents at beginning of Period
1,039,114
758,512
Cash and cash equivalents at end of Period
517,335
1,039,114

The notes on pages 15 to 30 form part of these financial statements.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Charity information

Al-Maktoum College of Higher Education is a private company limited by guarantee incorporated in Scotland. The registered office is 124 Blackness Road, Dundee, DD1 5PE.

1.1
Reporting period

The financial statements cover the period from 1 August 2022 until 31 December 2023. There was a change of year end which has resulted in the longer period to align the reporting period with the main charitable donor. The comparative amounts included within the financial statements cover a 12 month period to 31 July 2022.

1.2
Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

The charitable company has suffered a loss in the year and expects a loss in the current year. The directors have undergone a detailed review of costs to reduce overheads and this has been carried out in the current year and they continue to monitor costs and income very closely. The directors continue to assess the performance of the college against the budgets and projections prepared and maintain costs if the funding from the Foundation in Dubai is limited. The financial needs of the charitable company are met from the college's activities and regular support from the Foundation. The College is making good progress working with the university partners to develop new opportunities and maximise income from tuition fees and other sources. This is an important part of the College's strategy to develop new and sustainable income streams and decrease the dependence on core funding from the Foundation. The directors also recognise the continuing present and historical delays in the receipt of core funding which has made it challenging at times to manage the cashflow during these delays. After recent discussions with the Foundation in Dubai they remain confident this funding is imminent and will continue going forward. Based on this at the time of approving the financial statements, the Directors are satisfied that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Fees

 

Income from fees is included in income in the period to which it relates and includes all fees chargeable to students or their sponsors, e.g. The Al-Maktoum Foundation in Dubai.

1.6
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tenants improvements
18 to 20 years straight line
Office furnishings
15% reducing balance
Office equipment
3 to 10 years straight line
Website
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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).

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

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 instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

The college participates in the Universities Superannuation Scheme. The scheme is a hybrid pension scheme, proving defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The 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. As required by section 28 of FRS102 '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.

 

FRS102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in the profit or loss in accordance with section 28 of FRS102. The directors are satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.

 

The College also operates a defined contribution pension scheme which requires contributions to be made to a separately administered fund. Contributions to this fund are charged to the statement of financial activities in the year they are payable

 

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2
Critical accounting estimates and judgements

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

 

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

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
2
Critical accounting estimates and judgements
(Continued)
- 19 -
Key sources of estimation uncertainty
Useful life of tangible fixed assets

Tangible fixed assets are depreciated over period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of impairment.

Trade debtor recovery

Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, the directors will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their "ability to pay". The directors adopt a prudent approach to credit control.

Defined benefit pension deficit liability

In the directors' opinion the defined benefit pension scheme deficit liability results from a significant estimate, calculated using information from the pension scheme actuary in compliance with FRS102. The actual performance is unlikely to be in line with the actuarial valuation as a result of the valuation being based upon assumptions on the future unpredictable events such as return on assets and mortality rates. The estimate has a material impact on the financial statements.

3
Income from donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Donations and gifts
1,318,069
-
1,318,069
1,093,483
99,975
1,193,458
Donations and gifts
Al-Maktoum Foundation, Dubai - revenue
1,318,069
-
1,318,069
1,093,483
99,975
1,193,458
1,318,069
-
1,318,069
1,093,483
99,975
1,193,458
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
4
Income from charitable activities
College fees receivable
College fees receivable
2023
2022
£
£

Gross college fees

1,360,580
587,522

Less: Scholarships/fee waivers awarded

(54,640)
(138,543)
1,305,940
448,979
Analysis by fund
Unrestricted funds
1,305,940
448,979
5
Income from other trading activities
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Ancillary trading income

19
402
6
Income from investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
4,305
-
7
Other income
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Other income

7,334
46,405
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
8
Expenditure on charitable activities
College expenditure
College expenditure
2023
2022
£
£
Direct costs
Staff costs
717,033
335,741
Depreciation and impairment
52,979
62,044

Teaching costs

126,701
113,845

Teaching support costs

902,857
356,711

Premises costs

180,248
97,419

Summer school for United Arab Emirates students

-
5,000

Academic training programme for United Arab Emirates students

-
2,304

Pension deficit movement

(12,178)
(30,442)
1,967,640
942,622
Grant funding of activities (see note 9)
15,825
8,317
Share of support and governance costs (see note 10)
Support
763,185
511,105
Governance
29,606
26,604
2,776,256
1,488,648
Analysis by fund
Unrestricted funds
2,769,793
1,329,020
Restricted funds
6,463
159,628
2,776,256
1,488,648
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
9
Grants payable
College expenditure
College expenditure
2023
2022
£
£
Grants to institutions (6 grants):
Greenpeace (a)
-
100
Our Lady's Primary School (b)
-
1,000
Camperdown Primary School (c)
-
1,000
St Francis Primary School (d)
-
1,000
Sundry donation
825
50
Rowantree Primary School (e)
-
1,000
St Joseph's RC Primary School (f)
-
1,000
Douglas Youth FC sponsorship (g)
-
450
Helm Training (h)
-
872
North East Sensory Services (i)
-
1,845
Cyclathon event
2,000
-
Claverhouse Rotary
2,000
-
DCBE
1,000
-
Claverhouse Trust
6,000
-
Gulf Conference
4,000
-
15,825
8,317

These donations were individual amounts given to each organisation.

(a) - to provide general support to Greenpeace

(b) to (f) - to provide general support to the school

(g) - to provide general support to the sports team

(h) - to provide general support to Helm Training

(i) - to provide general support to the NESS charity

Cyclathon & Claverhouse Rotary - to provide support to the event to raise funds for charity

DCBE - to provide sponsorship of the event

Claverhouse Trust - provide a donation towards the school hardship fund

Gulf Conference - donation towards costs of the conference

-
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 23 -
10
Support costs allocated to activities
2023
2022
£
£
Staff costs
652,228
461,375
Bank charges
8,554
2,905
Legal & professional
37,593
23,517
Cleaning
5,131
3,260
Corporate hospitality
44,181
11,776
Indemnity insurance
6,289
3,559
Audit & accountancy
9,209
4,713
Governance costs
29,606
26,604
792,791
537,709
Analysed between:
College expenditure
792,791
537,709
11
Directors

Abubaker Abubaker received total remuneration in the period including employers national insurance contributions of £161,205 (2022 - £121,877).

Business expenses were reimbursed to two directors in the 17 month period relating to travel expenses and amounted to £36,536 (2022 - 14,940).

12
Employees

The average monthly number of employees during the Period was:

2023
2022
Number
Number
23
21
Employment costs
2023
2022
£
£
Wages and salaries
1,146,669
680,811
Social security costs
123,837
65,645
Other pension costs
106,815
56,984
1,377,321
803,440
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
12
Employees
(Continued)
- 24 -
The number of employees whose annual remuneration was more than £60,000 is as follows:
2023
2022
Number
Number
£60,001 to £70,000
1
-
£120,001 to £130,000
1
1
Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2023
2022
£
£
Aggregate compensation
161,205
151,847

The charity consider its key management personnel to comprise of directors, which includes, the head of college.

13
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14
Rent of Premises

The property which the charity occupies is rented on a long term lease from Meadowbrook Limited, a company associated to our Patron. The amount paid each year is a nominal value and less than the market value however the rental market value is not easily identifiable to include as part of the financial statements

15
Tangible fixed assets
Tenants improvements
Office furnishings
Office equipment
Website
Total
£
£
£
£
£
Cost
At 1 August 2022
706,672
131,773
139,731
31,304
1,009,480
Additions
3,596
19,361
12,106
-
35,063
At 31 December 2023
710,268
151,134
151,837
31,304
1,044,543
Depreciation and impairment
At 1 August 2022
384,054
82,324
115,332
7,574
589,284
Depreciation charged in the Period
24,875
7,417
19,285
1,402
52,979
At 31 December 2023
408,929
89,741
134,617
8,976
642,263
Carrying amount
At 31 December 2023
301,339
61,393
17,220
22,328
402,280
At 31 July 2022
322,618
49,449
24,399
23,730
420,196
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 25 -
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
43,453
32,445
Other debtors
320,661
-
Prepayments and accrued income
69,276
33,868
433,390
66,313
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other taxation and social security
1,395
1,394
Deferred income
19
72,300
64,949
Trade creditors
5,768
5,356
Other creditors
25,327
14,804
Accruals and deferred income
53,067
89,355
157,857
175,858
18
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
20,009
34,037
19
Deferred income
2023
2022
£
£
Other deferred income
72,300
64,949

Deferred income is included in the financial statements as follows:

2023
2022
£
£
Deferred income is included within:
Current liabilities
72,300
64,949
Movements in the Period:
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
19
Deferred income
(Continued)
- 26 -
Deferred income at 1 August 2022
64,949
-
Released from previous periods
(64,949)
-
Resources deferred in the Period
72,300
64,949
Deferred income at 31 December 2023
72,300
64,949
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,815
56,984

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

21
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 August 2022
Incoming resources
Resources expended
At 31 December 2023
£
£
£
£
Dining furrniture
425
-
(64)
361
Glass corridor
4,025
-
(843)
3,182
Toilets refurbishments
16,747
-
(2,177)
14,570
First floor office alterations
8,084
-
(1,000)
7,084
Entrance & internal doors
7,930
-
(529)
7,401
Ground floor offices & library alterations
13,090
-
(1,586)
11,504
Carvery & beverage station
1,761
-
(264)
1,497
52,062
-
(6,463)
45,599
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
21
Restricted funds
(Continued)
- 27 -
Previous year:
At 1 August 2021
Incoming resources
Resources expended
At 31 July 2022
£
£
£
£
Car park
1,693
-
(1,693)
-
Dining furrniture
500
-
(75)
425
Glass corridor
4,868
-
(843)
4,025
Toliets refurbishments
18,924
-
(2,177)
16,747
First floor office alterations
9,084
-
(1,000)
8,084
Entrance & internal doors
8,459
-
(529)
7,930
Ground floor offices & library alterations
14,676
-
(1,586)
13,090
Carvery & beverage station
2,072
-
(311)
1,761
Scholarships
51,439
99,975
(151,414)
-
111,715
99,975
(159,628)
52,062

Restricted funds included in the accounts relate to monies received for specific capital expenditure. The works carried out have been capitalised and future depreciation will be offset against the funds.

22
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 August 2022
Incoming resources
Resources expended
At 31 December 2023
£
£
£
£
General funds
1,263,666
2,635,667
(2,769,793)
1,129,540
Previous year:
At 1 August 2021
Incoming resources
Resources expended
At 31 July 2022
£
£
£
£
General funds
1,003,417
1,589,269
(1,329,020)
1,263,666
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 28 -
23
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
At 31 December 2023:
Tangible assets
356,681
45,599
402,280
Current assets/(liabilities)
792,868
-
792,868
Long term liabilities
(20,009)
-
(20,009)
1,129,540
45,599
1,175,139
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
£
£
£
At 31 July 2022:
Tangible assets
368,134
52,062
420,196
Current assets/(liabilities)
929,569
-
929,569
Long term liabilities
(34,037)
-
(34,037)
1,263,666
52,062
1,315,728
AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
24
Pension costs

The total cost charged to the profit and loss account is £52,133 (2022 - £29,724). Also included within pension costs in the profit and loss account is £12,178 (2022 - (30,442) in relation to the movement in amounts due in relation to the defined benefit pension deficit. The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2020 (the valuation date), which was carried out using the projected unit method.

 

Since the institution cannot identify its share of USS Retirement Income Builder assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

 

The 2020 valuation was the sixth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme's technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ration of 83%

 

At 31 March 2023, an interim assessment was performed, with the value of the assets and technical provisions of the scheme being calculated at £88.9 billion and £91 billion respectively, indicating a shortfall of £2.1 billion and a funding ratio of 98%. The next full actuarial valuation is expected in 2024.

 

The key financial assumptions used in the 2020 valuation are described below. more detail is set out in the Statement of Funding Principles.

Pension Increases (CPI)         Term dependent rates in line with the difference between the fixed interest                 and index linked yield curses less: 1.1%pa to 2030, reducing linearly by                 0.1%pa to a long term difference of 0.1%pa from 2040.

Discount rate            Fixed interest gilt yield curve plus:                                    Pre-retirement: 2.75%pa                                         Post-retirement: 1.00%pa

 

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme's experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table        101% of S2PMA 'light' for males and 95% of S3PFA for females

Future improvements to mortality    CMI 2019 with a smoothing parameter of 7.5, and initial addition of 0.50% pa                 and a long term improvement rate of 1.80% pa for males and 1.60% for                     females

 

The main demographic assumption used relates to mortality assumptions. These assumptions have been updated for the 31 March 2023 accounting position of the pension scheme, based on updated analysis of the Scheme's experience carried out as part of the 2020 actuarial valuation. the morality assumptions used in these figures are as follows:

2023             2022    

Males currently aged 65 (years)            23.9         23.9    

Females currently aged 65 (years)            25.5         25.5

Males currently aged 45 (years)            25.9         25.9

Females currently aged 45 (years)            27.3         27.3

 

A deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over a period from 1 April 2022 until 31 March 2024, at which point will increase to 6.3%. The 2023 pension liability provision reflects this plan. the provision figures have been produced using the following assumptions.

2023             2022    

Discount Rate                    2.65%         2.65%

Pensionable salary growth                n/a         n/a

Pension increases (CPI)                2.53%         2.53%    

 

 

 

AL-MAKTOUM COLLEGE OF HIGHER EDUCATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
25
Operating lease commitments
Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
14,344
23,953
Between two and five years
-
23,953
14,344
47,906
26
Related party transactions

The college received revenue funding of £1,318,069 (2022 - £1,193,458) from the Al-Maktoum Foundation in Dubai. The former patron, His Highness Shaikh Hamdan Bin Rashid Al-Maktoum was the Chairman of the Al-Maktoum Foundation in Dubai and Mr Mirza Al-Sayegh, a Director is also a trustee of the Al-Maktoum Foundation in Dubai.

27
Cash generated from operations
2023
2022
£
£
(Deficit)/surpus for the Period
(140,589)
200,596
Adjustments for:
Investment income recognised in statement of financial activities
(4,305)
-
Depreciation and impairment of tangible fixed assets
52,979
62,044
Movements in working capital:
(Increase) in debtors
(367,077)
(20,724)
(Decrease)/increase in creditors
(39,380)
14,003
Increase in deferred income
7,351
64,949
Cash (absorbed by)/generated from operations
(491,021)
320,868
28
Analysis of changes in net funds

The charity had no material debt during the year.

29
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.

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