Association of MBAs Annual Report - 2012

Annual Report and Financial Statements Year ending 30 September 2012

2

Association of Masters in Business Administration Annual Report 2011-2012

Business Schools with programmes accredited by the Association of MBAs Aalto University School of Business, Finland Aberdeen Business School, Robert Gordon University, UK Aberystwyth University, School of Management & Business, UK ALBA Graduate Business School, Greece Antai College of Economics and Management, Shanghai Jiao Tong University, China Arthur Lok Jack Graduate School of Business, The University of the West Indies, Trinidad

Ashridge Business School, UK Aston Business School, Aston University, UK Athens University of Economics and Business (AUEB), Greece Audencia Nantes School of Management, France AVT Business School, Denmark Beijing Institute of Technology, School of Management and Economics, China BEM Management School Bordeaux, France Bradford University School of Management, UK

Bristol Business School, University of the West of England, UK Brunel Business School, Brunel University, UK Cass Business School, City University London, UK CENTRUM Business School, Pontificia Universidad Catolica Del Peru, Peru CEU Business School, Central European University, Hungary Central University of Finance and Economics, China College of Business, City University of Hong Kong, China

College of Business, Massey University, New Zealand Copenhagen Business School, Denmark Cotrugli Business School, Croatia Cranfield School of Management, Cranfield University, UK Curtin Graduate School of Business, Curtin University, Australia Cyprus International Institute of Management, Cyprus Dublin City University Business School, Ireland

Durham University Business School, UK EADA Business School, Escuela de Alta Direccion y Administracion, Spain Ecole Hassania des Travaux Publics, Morocco Economics and Management School of Wuhan University, China ECUST School of Business, East China University of Science and Technology EDHEC Business School, France EGADE Business School, Mexico

Annual Report 2011-2012 Association of Masters in Business Administration

3

198

business schools with accredited progammes in

47

*

countries

EGADE Business School, Tecnol贸gico de Monterrey, Mexico EMLYON Business School, France ENPC School of International Management, France ESADE Business School, Spain ESAN, Graduate School of Business, Peru ESCP Europe Business School, France Escuela de Postgrado, Universidad del Pacifico, Peru

ESMT, European School of Management and Technology, Germany Euromed Management, France European Institute of Purchasing Management, France Faculdade de Economia da Universidade Nova de Lisboa, Portugal Faculdade IBMEC, Rio de Janeiro, Brazil FDC, Fundacao Dom Cabral, Brazil FIA, Fundacao Instituto de Administracao, Brazil FGV, Fundacao Getulio Vargas, Brazil

GISMA Business School, Germany Gordon Institute of Business Science, South Africa Graduate School of Business, Hong Kong Polytechnic University, China Graduate School of Economics and Business, Universidad de Chile, Chile Graduate School of International Business (GSIB), Russia Grenoble Graduate School of Business, France

GSCM, Montpellier Business School, France Hanken School of Economics, Finland Harbin Institute of Technology, School of Management, China HEC Lausanne, University of Lausanne, Switzerland HEC Montreal Business School, Canada HEC Paris, France HEC, University of Geneva, Switzerland Henley Business School, University of Reading, UK

Hong Kong Baptist University, School of Business, China Hull University Business School, UK Hult International Business School, USA IAE Aix Graduate School of Management, France IAE Business School, Universidad Austral, Argentina IBS, Institute of Business Studies, Russia

Continues overleaf

*This includes more than 700 accredited programmes in 70 countries worldwide.

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Association of Masters in Business Administration Annual Report 2011-2012

ICBS Business College, Thessaloniki, Athens & Larissa, Greece ICN Business School, France IE Business School, Spain IEDC, Bled School of Management, Slovenia IEEM, Instituto de Estudios Empresariales de Montevideo, Uruguay IESA, Venezuela IESE Business School, Barcelona Campus, Spain IIB, International Institute of Business, Ukraine IMD Business School, Switzerland Imperial College Business School, UK INALDE Business School, Universidad de La Sabana, Colombia Indian Institute of Management, Kozhikode, India Indian Institute of Management, Lucknow, India INSEAD, France Insper, Instituto de Ensino e Pesquisa Sao Paulo, Brazil International Institute of Management, CNAM, France International Institute of Management LINK, Russia International Management Institute New Delhi, India IMISP, International Management Institute St. Petersburg, Russia International University of Monaco, Monaco ISCTE Business School, Portugal ISEG , Instituto Superior de Economia e Gestao Universidade Tecnica de Lisboa, Portugal ITAM, Instituto Tecnológico Autónomo de México Jinan University School of Management, China Kent Business School, University of Kent UK King Abdulaziz University, Faculty of Economics & Administration, Saudi Arabia Kingston Business School, Kingston University, UK Kożmiński University, Poland

Lancaster University Management School, UK Leeds University Business School, UK Lingnan (University) College, China London Business School, UK Lorange Institute of Business Zurich, Switzerland Loughborough University School of Business and Economics, UK Maastricht School of Management, Netherlands Maastricht University School of Business and Economics, Netherlands Management Development Institute, India Manchester Business School, The University of Manchester, UK Manchester Metropolitan University Business School, UK Mannheim Business School, Germany Mediterranean School of Business, Tunisia MIB School of Management, Italy MIRBIS Moscow International Higher Business School, Russia Mona School of Business & Management, Jamaica Monash University Faculty of Business and Economics, Australia Moscow School of Social and Economic Sciences, Russia Newcastle University Business School, UK Norwich Business School, University of East Anglia, UK Nottingham University Business School, UK NUCB Business School, Nagoya University of Commerce and Business, Japan Nyenrode Business Universiteit, Netherlands Open University Business School, UK Oxford Brookes University Business School, UK Plekhanov Business School “Integral”, Plekhanov Russian University of Economics, Russia

Polish Open University, Poland Portsmouth Business School, University of Portsmouth, UK Poznan University of Economics, Poland QUT Graduate School of Business, Queensland University of Technology, Australia Reims Management School, France Reykjavik University School of Business, Iceland Rouen Business School, France Rotterdam School of Management, Erasmus University, Netherlands Said Business School, University of Oxford, UK Salford Business School, University of Salford, UK School of Business & Economic Studies, Universidad Icesi, Colombia School of Business, Trinity College Dublin, Ireland School of Management, Royal Holloway, University of London, UK School of Management Zhejiang University, China Schulich School of Business, York University, Canada SDA Bocconi School of Management, Italy Shanghai University of Finance and Economics, China Solvay Brussels School of Economics and Management, Belgium Southampton Management School, University of Southampton, UK SP Jain Institute of Management and Research, India SP Jain School of Global Management, India St Petersburg State University Graduate School of Management, Russia Sun Yat-sen Business School, China Synergy International Business School, Russia Tecnológico de Monterrey, Campus Ciudad de México, Mexico

TELECOM Ecole de Management, France Telfer School of Management, University of Ottawa, Canada The Surrey Business School, University of Surrey, UK The University of Edinburgh Business School, UK The University of Sheffield Management School, UK The University of Waikato Management School, New Zealand TiasNimbas Business School, Netherlands Tongji University, School of Economics and Management, China Toulouse Business School, ESC Toulouse, France UCA, Pontificia Universidad Católica Argentina, Argentina UESTC , University of Electronic Science and Technology of China, China Universidad Adolfo Ibáñez, Chile Universidad Anahuac Mexico Norte Facultad de Economia y Negocios, Mexico Universidad Carlos III de Madrid, Spain Universidad de los Andes School of Management, Colombia Universidad de los Andes, ESE Business School, Colombia Universidad de San Andres, Argentina Universidad del CEMA, Argentina Universidad del Desarrollo, Chile Universidad ORT Escuela de Postgrados y Ejecutivos, Uruguay Universidad Tecnica Federico Santa Maria, Chile Universidad Torcuato Di Tella, Argentina Universidade Catolica Portuguesa, Portugal University of Sheffield International Faculty, CITY College, Greece University College Dublin, Michael Smurfit Graduate Business School, Ireland

University of Auckland Business School, New Zealand University of Bath School of Management, UK Birmingham Business School, University of Birmingham, UK University of Cambridge, Judge Business School, UK University of Canterbury, School of Business and Economics, New Zealand University of Cape Town Graduate School of Business, South Africa University of Exeter Business School, UK University of Glasgow Business School, UK University of Jyväskylä, School of Business and Economics, Finland University of Leicester School of Management, UK University of Malaya, Malaysia University of Porto Business School, Portugal University of Stellenbosch Graduate School of Business, South Africa University of Strathclyde Business School, UK University of Warsaw Faculty of Management, Poland Victoria University of Wellington, School of Management, New Zealand Vlerick Leuven Gent Management School, Belgium Warwick Business School, UK Westminster Business School, UK Wits Business School, University of the Witwatersrand, South Africa WU Executive Academy, Austria Xiamen University School of Management, China Zhongnan University of Economics & Law, China

Annual Report 2011-2012 Association of Masters in Business Administration

Legal and Administrative Details Company Number Registered in England and Wales 921702 Charity number 313412 Principal address and registered office 25 Hosier Lane, London EC1A 9LQ www.mbaworld.com www.ambaguide.com Company Secretary S K Secretary Ltd 13 Queen Square Bath BA1 2HJ Auditor Mazars LLP Times House, Throwley Way Sutton, Surrey SM1 4JQ Solicitors Gordons 22 Great James Street London WC1N 3ES Stone King 16 St John’s Lane London EC1M 4BS

05

Members of the Board of Trustees The Association of Masters in Business Administration, hereinafter referred to as the “Association” is a company limited by guarantee and a registered charity.

Christopher Russell Balkwill, MBA OUBS

Chair Appointed second term 10 December 2012

Elected member

Claude Sarfo, MBA, Warwick

Finance Director Resigned 30 June 2012

Elected member

Len Jones, MBA, Cranfield

Treasurer Co-opted 23 April 2012

Co-opted

Hilary Sears, MBA, Cranfield

Resigned 8 December 2011

Elected member

Kathy Lewis, MBA, Middlesex

Resigned 8 December 2012 Co-opted 10 December 2012

Elected member then co-opted

Ian Parkes, Fujitsu Ltd

Re-appointed 16 May 2012

Co-opted

Carol Groombridge, MBA, OUBS

Appointed second term 8 December 2011

Elected member

Stephen Gorton, MBA, OUBS

Appointed 8 December 2011

Elected member

Barry Tuckwood, MBA, Strathclyde

Appointed 8 December 2011

Elected member

Jacqueline McCouat, MBA, Kingston

Resigned 15 November 2012

Elected member

Anna Maria Favini Robertson, MBA, OUBS

Appointed 10 December 2012

Elected member

Principal Banker NatWest Bank plc St James’ Piccadilly Branch P.O. Box 2 DG 208 Piccadilly London W1A 2DG

Tim Alastair Instone, MBA, INSEAD

Appointed 10 December 2012

Elected member

Professor Nicholas Binedell, Director, Gordon Institute of Business Science, South Africa

Re-appointed 16 May 2012

Co-opted

Investment Managers Brooks MacDonald 11 Park Street, Mayfair London W1K 7LJ

Professor Stephen King, Dean, Faculty of Business and Economics, Monash University, Australia

Resigned 1 December 2012

Co-opted

Professor Colm Kearney, Faculty of Business and Economics, Monash University, Australia

Appointed 1 February 2012 Resigned 30 November 2012

Co-opted

Professor Joseph Connolly, Distinguished Fellow for Ethics and Finance, Sorbonne, Paris

Appointed 21 May 2012 Resigned 17 February 2013

Co-opted

Professor Rob Dixon, Dean of Durham University Business School, UK

Appointed 19 February 2013

Co-opted

David Gravells, MBA Durham, Chairman of number of companies and of the IAAB

Appointed 19 February 2013

Co-opted

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Association of Masters in Business Administration Annual Report 2011-2012

Contents Legal and Administrative details 05 Introduction from the President

06

Chair’s Report

07

COO’s report

08

Charitable Objective and Strategic priorities

09

MBA Journey

09

• Pre-MBA

10

• MBA

12

• Membership

18

• Corporate

20

Treasurer’s report

21

Report of the Board of Trustees of the Association of MBAs

22

Report of the Independent Auditors

25

Consolidated Statement of Financial Activities 26 Balance sheets

26

Notes to the financial statements

27

Consolidated Five Year Summary

32

Appendix 34 List of members of Financial Review Committee, HR Committee and International Accreditation Advisory Board 35

Introduction from the President, Sir Paul Judge In July 2012 we celebrated the Association of MBA’s 45th anniversary.

This is an important milestone with the Association continuing to pursue its original mission of enhancing the prestige of graduate management education and ensuring the appropriate quality standards. The Association has played a significant role in the development of the MBA as the degree has expanded internationally. Our accreditation system has kept pace with this global trend and at the end of this financial year we reached the record of 198 accredited schools with over 700 individual programmes in 70 countries.

The Association remains a strong and independent accrediting body which provides an internationally recognised benchmark of business school quality.

In an age with so much choice, accreditation reassures students and employers that these graduate management programmes are of the highest quality and from an institution that can be trusted.

When I meet Deans and Directors from our accredited business schools at our various events or when visiting their countries I am always struck by the weight which they give to their Association of MBAs’ accreditation.

Not only does it provide them with soft benefits such as a certain status and the membership of a worldwide family but it also provides genuine advantages as they can attract more students and faculty from other countries and potential employers take their graduates more seriously.

While many of the world’s economies struggle and all of their dynamics shift, management education has become even more relevant. Business graduates have a vital impact on their workforce and on the communities in which they operate. They need the same credentials as anyone else wishing to be considered as a professional: proper academic

training, a code of ethics and practical experience. This is a set of knowledge and skills provided by accredited programmes. To maintain their professionalism they must also embrace the need for continuing education.

The Association has in the last year committed further investment in business school services and membership development so that everybody across the globe can connect and champion the value of an accredited programme. This allows us to support students and graduates in communicating with each other and should be able to ensure that the Association’s accredited graduates are aware of the events available to them from their own and other accredited schools.

Each year the Association provides thought leadership in business education. At the International Conference for Deans and Directors in Barcelona this year we brought together business school leaders to discuss innovation and the future of graduate management education.

Great ideas flowed and there was a commitment to staying ahead of the curve as we all adapt to a future that sees a more flexible approach to teaching methods, changes in technology and a need to shape graduates who can lead with trust and connect to both global and local society.

I would like to thank the many people who contribute to the Association’s success. This includes its Board of Trustees, the International Accreditation Advisory Board, the hardworking team in London, China and Latin America and the many volunteers who organize events and provide advice to business schools, students and graduates.

Sir Paul Judge President

Annual Report 2011-2012 Association of Masters in Business Administration

Chair’s Report It has been a busy year of growth and development for the Association of MBAs, with the delivery of the new three year strategy. This focuses on four core priorities - internationalisation, integration, quality and collaboration, as the Association continues with its commitment to deliver a world class accreditation service, an enhanced membership proposition, and to engage with employers and inform potential MBA students.

We have seen accreditation grow worldwide and quality standards in postgraduate management education upheld as a result of the hard work and commitment of the accreditation team at the Association and our extended family on the International Accreditation Advisory Board and the Faculty of Assessors.

The Association’s Chief Executive, Sharon Bamford was instrumental in the creation and delivery of the strategic plan and new initiatives in conjunction with the Board and the team at the Association. She decided to leave the organisation at the end of August 2012 to pursue her own entrepreneurial ventures. We thank her for her contribution. While seeking a new Chief Executive, the Board of Trustees and the Chief Operating Officer are overseeing the management and the delivery of Association’s strategy.

During the year, the Board started a review to re-assess its governance and structure to ensure the Board continues to best reflect the Association’s development and its charitable and business activities. This includes looking at further strengthening the representation of deans and employers to increase the Board’s breadth and balance of educational experience. The Board also conducted more of its work through committees, in order to allow the full Board more time to devote to key issues concerning the business.

The Finance and Risk Committee has met regularly throughout the year. Its chief purpose is to oversee the Association of MBAs’ internal financial control and risk management systems, to ensure its accounting procedures are in line with company and charity accounting rules and best practice and that they are kept up to date.

The HR Committee continued its brief to advise the main board on HR matters. The Governance Group was set up to review and update the Articles of Association to ensure the governance of the Association still reflects the charitable objectives and its stakeholders, corporate strategy and best practice.

The International Accreditation Advisory Board (IAAB) continued its meetings with its distinguished Board of Deans from international business schools. We are very grateful to David Gravells, who continued as Chair during the period, and to Board members for their support and advice especially as the rate of change in the Business School world continues to accelerate. It is an aim of the Board of Trustees to improve communication with the IAAB in the years to come. Reports from the IAAB, the HR Committee and the Finance Committee are available on page 34.

During the year, we were joined by new trustees and some trustees left. Claude Sarfo stepped down after more than six years as Trustee Finance Director. The organisation grew reserves over 100% during his tenure, ensuring the Association has a strong financial and resource base to continue its future strategic development. We wish him well and thank him for his wise and pragmatic counsel.

In April 2012, we appointed a Treasurer to take over the financial responsibilities. Len Jones, who has an MBA from Cranfield and an MSc in Charity Accounting from Cass Business School, is now overseeing all aspects of the Association’s finance. He has also been an active member of the HR Committee. We also welcomed, as a co-opted Board Director, Professor Joseph Connolly, a Harvard MBA. As the postgraduate management education accreditation industry moves forward and the business and education worlds become more global, the Association continues to remain committed to offering a distinctive service to its accredited business school and student/graduate membership and to fulfil its charitable objective to advance postgraduate business education.

I would like to thank the Board of Trustees for the commitment and time they give voluntarily and to the team at the Association for their dedication and great work.

Christopher Russell Balkwill Chair

07

08

Association of Masters in Business Administration Annual Report 2011-2012

Chief Operating Officer’s Report The Association of MBAs 45th year has been one of achievement and development. Building on the success and long-term strength of the Association, this year has been about looking to the future and introducing new activities and initiatives to support the growth of accreditation and membership worldwide.

We are in a unique position, central to the MBA community, as the only international accreditation and membership organisation connecting MBA students, graduates, accredited business schools, and MBA employers. We value our stakeholders and recognise the need for a fully integrated team and strategy that will further the quality and standards of postgraduate management education and connect the MBA community worldwide.

Our three year strategy was agreed by the Board of Trustees in the early part of this financial year. It encompasses a more integrated and international approach to all our activities that support the Association’s core priorities of accreditation and membership. It also underlines a strategy that continues to contribute to the public benefit with the provision of free information and guidance to prospective students.

The activities underpinning this vision were rolled out throughout the year and included some exciting new initiatives that involve our business schools and members, including launching an enhanced and competitive membership offering, our Global AMBAssador programme and our corporate engagement strategy.

We continue to see the growth in quality MBA programmes worldwide and our accreditation work this year reflects this development, with more schools achieving accreditation status for their MBA, MBM and DBA programmes. Our international advisers continue to play an important role in the expansion and promotion of quality postgraduate management education in Latin America, India and China and their expertise also feeds in to our work with emerging markets business schools and our plans to support the growth of quality management education in these markets.

It has been a fruitful year for our members as we have introduced more events and CPD learning opportunities with our extended programme of MBA Refresher events, Careers Workshops, networking events and a new webinar series. The introduction of our Global Connections events means the international MBA alumni and students from accredited schools have had an opportunity to meet up in countries including India, Mexico and the United Arab Emirates. We are pleased to see that our membership numbers have increased as a result.

We continue to have strong and productive partnerships with our media partner, The Independent, and Global Strategic Partner, GMAC, as well as other sponsors and supporters. We would like to thank them for their ongoing support.

New roles were introduced to support the work of the Association and we welcomed the following members to the team: Carly Puncher as Corporate Relations Manager, George Murgatroyd as Research Manager, Carol Turner as PR/Communications Manager, Judi Wright as Administration and Operations Manager. I also joined the team as Chief Operating Officer in January 2012. Chief Executive, Sharon Bamford, left in August 2012. I would like to thank the team based in the UK, China, India and Argentina for their hard work and commitment in producing an ever expanding range of events and activities and managing the growing accreditation and membership during a very busy year.

We look forward to an exciting year ahead as we continue to invest in services and activities to support business schools and MBA members. This will include a new website, a Career Development Centre to further enhance our membership offering and more Global AMBAssadors joining our international MBA network.

In the next section we share information and the highlights of the Association’s activities and achievements during the year.

Vanessa Harwood-Whitcher Chief Operating Officer

Annual Report 2011-2012 Association of Masters in Business Administration

THE MBA JOURNEY Mission - The Association of MBAs informs, connects and develops the global MBA community. It is the

authoritative voice on postgraduate business education and sets the international standard for accrediting MBA, DBA and MBM programmes.

Charitable objective - Our charitable objective is to advance business education at a postgraduate level.

The Association of MBAs’ strategic objectives - We have four strategic objectives which bring together our key stakeholders and beneficiaries - business schools, MBA students and alumni, and employers. The Association’s four objectives are to: upport our exclusive global network of MBA S students and graduates by delivering services that will assist them in their professional development and lifelong learning.

Continue to deliver a world class accreditation service focusing on the quality assurance of postgraduate general management programmes at the top tier business schools.

Strengthen our collaborative relationship with our accredited business schools, providing them with relevant insights, intelligence and networks to give them the advantage in a competitive environment.

Engage with business and MBA employers, building awareness of the Association’s reputation, the benefits of accreditation and our professional networks.

The MBA Journey - Our three year strategy is based on supporting the complete MBA Journey - from choosing an MBA; ensuring quality in the delivery of the MBA through accreditation and faculty development; providing continuous professional development, career development and networking post MBA; and corporate engagement to feed into curricula, understand the value of an accredited MBA, and recruit and support MBAs. • Pre MBA - Impartial advice to assist potential students identify accredited business schools.

- MBA Guide - MBA Fairs - Facebook

THE MBA JOURNEY Corporates Membership and Alumni

MBA

Pre MBA

• MBA - Set the global standard for MBA, DBA and MBM programmes with delivery of a world-class accreditation system.

- Accreditation – business school services - Research – Evidence & Ideas Lab - International policy and thought leadership • Membership and Alumni - Grow international membership by offering members learning and networking opportunities that assist with their professional development.

- Global AMBAssadors Programme - Membership benefits - International career resources - Global Connections and MBA Link events - MBA Refreshers - Global CPD certified events • Corporate - Engage employers in the MBA journey, to support our business schools’ career departments, graduates and alumni.

- Corporate partnerships - Careers survey - Forums on MBA recruitment

09

10

Association of Masters in Business Administration Annual Report 2011-2012

THE MBA JOURNEY Pre MBA

Advising and assisting potential MBA students to identify accredited business schools.

As the leading international impartial authority on postgraduate business education, we offer a public benefit to potential MBA students and those interested in finding out more about MBA, DBA and MBM education through our online services, publications and MBA Fairs.

Increased digital presence We launched a dedicated microsite (www.ambaguide.com) in the Autumn of 2011 to offer information and impartial advice to students interested in studying for an MBA. They can search through hundreds of the Association of MBAsaccredited programmes offered by 200 business schools in over 70 countries. The content on the website encourages and guides MBA students in their search. It was updated and refreshed throughout the year to include more video elements such as interviews with the Association’s award winners and MBA alumni. We also launched the Association of MBAs Facebook this year, which is regularly updated with articles and information relevant to the MBA seeker. The number of likes to our Facebook page grew from 250 to 4,000 during the year.

4,000 Facebook likes

Annual Report 2011-2012 Association of Masters in Business Administration

11

Extra Advice for Applicants For the first time, we have built on our free services by partnering with MBA & Company to offer extra assistance for students wishing to apply to business schools. MBA & Company offer a consultancy service that provides insight and guidance into all parts of the application process. The consultants are based across the world and have direct experience and understanding about what it takes to be accepted on to MBA programmes, as they graduated from accredited business schools.

MBA seekers can find out more information on this paid consultancy service on www.ambaguide.com.

THE OFFICIAL GUIDE TO an

Choosing

MBA

Official Guide to Choosing an MBA

Together with our media partner, The Independent, we published the annual Official Guide to Choosing an MBA. A new format and design were chosen for the guide and it was published in time for the April 2012 MBA Fair held in London.

We also produced an online magazine edition at www.ambaguide.com and on The Independent’s website.

A5 CHOOSING MBA GUIDE: PG: 1 v: 1

MBA Fairs & Exhibitions Our MBA Fairs connect MBA seekers with accredited business schools. We held free Fairs in October 2011 and April 2012 in London. At the April Fair we introduced panel sessions where representatives from leading business schools in the UK and Europe presented, and corporate MBA recruiters offered advice before attendees met with admissions staff from the exhibiting business schools. Our Global Strategic Partner, GMAC, and sponsor ETS, were also involved in the Fairs. Delegates were able to use the MBA Fair mobile app which we launched in partnership with The Independent to offer easily accessible mobile information on the seminar session, exhibitors, accredited MBAs and a map of the area.

The October 2011 MBA Fair attracted 175 candidates and 36 exhibitors, and there were 260 attendees and 40 exhibitors at the April 2012 Fair. Our Global Strategic Partner, GMAC, also exhibited at the Fairs held in Victoria, London.

This year we extended our awareness campaign of the accredited MBA to potential students globally by exhibiting at the QS MBA World Tour Fairs in India, UAE, China, Chile, Peru, Colombia, Venezuela and Mexico.

A successful partnership allowed us to promote the value of accredited MBA programmes and the Association of MBAs’ accredited business schools to people planning to study an MBA in different countries across the world.

Representatives from the the Association’s team spoke to hundreds of potential MBA students attending the MBA Fairs in these countries and distributed copies of The Official Guide to Choosing an MBA.

Media Coverage We increased the profile of the Association and of accredited business schools in the media by contributing editorial to more student and trade publications to promote the value of the accredited MBA. Our long-term partnership with The Independent newspaper continues.

Their editorial team produced a new and refreshed Official Guide to Choosing your MBA which proved popular with MBA seekers and they continued as our media partners and sponsors of the MBA Student of the Year, and our International Conference for Deans and Directors and our annual Gala Dinner.

Corporates Membership and Alumni

MBA

Pre MBA

12

Association of Masters in Business Administration Annual Report 2011-2012

THE MBA JOURNEY MBA Setting the global standard for MBA, DBA and MBM programmes with delivery of a world-class accreditation system. Support the advancement of postgraduate management education by providing business school services, events and initiatives.

The Association of MBAs’ accreditation service continued to grow globally, while maintaining quality standards.

In this financial year we accredited MBA programmes at 12 new business schools and MBM programmes at seven schools internationally. The newly accredited business schools came from different countries including China, India, Denmark and France. During the year, the Association’s team of independent assessors also re-accredited 36 business schools.

The total number of business schools with Association of MBAs accreditation at the end of the financial year was 198. These schools offer 700 MBA, DBA and MBM programmes in 70 countries.

Our International Accreditation Advisory Board (IAAB) manages the assessment process and constantly monitors the criteria and standards. Its members consist of eminent deans from around the world.

The Association’s accreditation process involves a rigorous peer-reviewed assessment conducted by an independent panel of senior academics from leading international business schools (known as the Association’s Faculty of Assessors). They assess the faculty, curriculum, quality of student intake, facilities and outcomes to ensure the individual programmes they are reviewing meet the strict accreditation criteria.

In 2012, the Association’s Chief Executive and the accreditation team engaged more regularly with the IAAB and with the Faculty of Assessors to review the accreditation standards to ensure quality, and allow for discussion on accreditation criteria and regular feedback. A full review of our accreditation procedures was undertaken (a report from the IAAB is included on page 34).

We introduced Faculty of Assessor workshops with the first one held in May 2012 in Barcelona. More than 50 deans and directors from accredited business schools attended the workshop to update their knowledge of the Association’s accreditation process or to join the Faculty of Assessors. We also launched a new Assessment Management System to assist in the operational efficiency of the accreditation assessment and process.

We continue to ensure a pipeline of potential candidate schools across the world are aware of the value of the Association’s accreditation process and we work closely with schools in emerging markets to raise standards of postgraduate management education. This year the Chief Executive, Sharon Bamford and the Association’s accreditation team met with deans and directors from more than 120 business and management schools around the world to build relationships and promote quality management education. Meetings were held with governments in Russia, China, India and Brazil to establish international benchmarks and standards for the MBA. Our international advisers in China, India and Latin America continued to work closely with the top business schools and education associations in their regions.

Annual Report 2011-2012 Association of Masters in Business Administration

Our 198 Accredited Business Schools deliver

700+

MBA, DBA and MBM programmes in 70 countries

Our commitment to advancing quality postgraduate business education in emerging markets progressed in 2012 when CEO, Sharon Bamford and Association of MBAs Board Trustee, Nick Binedell (Director of the Gordon Institute of Business, South Africa) from the Association’s Board of Trustees chaired an Emerging Markets meeting in Dubai on 25 and 26 March 2012. Representatives from accredited emerging markets schools attended the event, which was hosted at Manchester School of Business’ Dubai campus. The discussion and ideas have informed the next steps in our Emerging Markets strategy.

Business schools are operating in an increasing global market. To assist the drive from quality business schools to develop international programmes and partnerships, we set up an Accredited Schools Network to assist the Association’s international business school community in working together to exchange faculty or students, or even offer joint MBA programmes.

The Association’s policy work also continued throughout the year. The policy focus this year was the UK where we continued to lobby the UK government on behalf of accredited business schools about the impact of its decision to change student immigration and close the post study work route which gave graduates from UK universities and business schools an opportunity to work for up to two years after graduation. Our lobbying included setting up meetings for the UK Border Agency and the government to brief and discuss the new regulations and relevant issues with accredited schools and employer groups.

To add benefit to their accreditation, we provided our accredited business schools with an enhanced offering of faculty development events and services throughout the year. Our Corporates conferences and professional forums offer excellent opportunities for new Membership ideas and networks at and Alumni both operational and strategic levels.

MBA

Pre MBA

Association of MBAs’ Accreditation criteria highlights Rigorous programme review Unlike other postgraduate business education accreditation bodies, the Association of MBAs accreditation assessment focuses on portfolios of programmes rather than whole institutions. This allows for an in-depth analysis of an institution’s provision, assessing its quality and providing relevant and valuable recommendations for the further development of programmes. Our accreditation criteria require that the entire portfolios of MBA programmes are put up for consideration. They only receive accreditation if all programmes meet the Association’s criteria.

Management experience Our accreditation criteria require that all MBA students have at least three years’ postgraduate work experience, as the unique feature of the MBA is the way in which learning is centred on the sharing and development of this experience.

Programme commitment and cohort The Association of MBAs’ criteria require at least 500 contact hours (scheduled class hours) for a full-time MBA curriculum and a minimum of 120 contact hours for a distance-learning MBA. It also requires that at least 20 students are enrolled in an MBA programme.

International The Association has assisted with the advancement of postgraduate management education globally.

It has now accredited more international business schools than any other accreditation organisation.

The Association of MBAs’ criteria also require an international component to be central to MBA delivery.

Qualitative The criteria fall into seven dimensions: quality of the institution, including strategy, mission and resources; teaching faculty, teaching standards and research track record; programme administration, career and alumni services; student admission standards, diversity and cohort size; curriculum content and assessment standards; programme mode and duration, and learning outcomes.

Responsible Management Education Our accreditation criteria incorporate the values of responsible management education set out by the United Nations Principles for Responsible Management Education (PRME). The Association’s accreditation team checks that business schools include sustainability, governance and ethics in the core of the curriculum.

For more information on our accreditation process and criteria visit: www.mbaworld.com/accreditation

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Association of Masters in Business Administration Annual Report 2011-2012

THE MBA JOURNEY MBA Conferences The Asia-Pacific Conference for Deans and Directors was held in Singapore at SP Jain’s Singapore campus between 30 November and 2 December 2011. The theme was ‘Entrepreneurship and Innovation: East meets West’. The two keynotes were Professor Tarun Khanna from Harvard Business School and Paul Roebuck, CEO Malaysia and Singapore, Saatchi & Saatchi. Now in its fourth year, the conference has gained in reputation and attendance has grown each year.

The International Conference for Deans and Directors was held in Barcelona in May 2012, and attended by 190 delegates from 41 countries, making it both the largest and most diverse International Conference to date. Sponsored by The Independent, GMAC and ETS, the theme for this year’s conference was ‘Innovation and the future of management education’. A diverse range of speakers and panelists from leading international business schools, the corporate world and the creative sector provided thought provoking insight and ideas during the three day event.

Ibon Zugasti, Chairman of the Millennium Project in Spain, gave the opening keynote address on the future of the business world and Professor Julian Birkinshaw from London Business School gave a keynote speech on the final day that looked at how management and business is taught, what can be learnt from the past and where to look for fresh ideas.

Panel discussions addressed the trends and innovation in management education and the view from the business world was explored by Microsoft and entrepreneurs in a panel that looked at the changing corporate environment. Predictions for the business school in 2022 were presented by Adolfo Ibáñez University’s School of Business in Chile, INSEAD, Institute of Business Zurich and HEC Paris. Five Chinese business and management institutions shared their perspective on innovation in China’s MBA education.

The Latin America Conference for Deans and Directors was held in Colombia from 29 to 31 August 2012. The event, popular with Latin America’s top business schools, was sponsored by INALDE Business School, Universidad de los Andes School of Management and Universidad Icesi.

We also provided a comprehensive events agenda for the year to business school management staff to share learning and insight. This included the Marketing and Admissions Forum in April 2012, which achieved a higher attendance than in previous years. The London event included presentations on social media, marketing and communications.

Other business school events included the Alumni and Development Forum in Slovenia in June 2012, Programme Managers Forums held in Geneva (October 2011) and in Tunisia (June 2012), and the Accreditation Managers Forum held in Mannheim, Germany in September 2012.

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Annual Report 2011-2012 Association of Masters in Business Administration

THE MBA JOURNEY MBA Awards To recognise the talents and contributions made by accredited schools and their students to the MBA arena and the wider community, the Association of MBAs presents three annual awards to outstanding business schools, start-ups and students who represent the true value of accredited MBA programmes.

We awarded The Independent MBA Student of the Year and announced the winners of our two new awards at the annual Gala Dinner in October 2011. Held at the Royal Garden Hotel in Kensington, London, the event was attended by 220 members of our accredited business school community. The Independent’s MBA Student of the Year 2011 was Alex Dalley from Rotterdam School of Management, Erasmus University.

In 2011 we introduced the MBA Innovation Award and the MBA Entrepreneurial Venture Award. These awards provide an opportunity to recognise business schools with exciting new practices that are innovative and original and to acknowledge the creative talent emerging from accredited MBA programmes that have then gone on to start up innovative and successful new business ventures.

The MBA Entrepreneurial Venture Award 2011 was awarded to Wolfgang Kalthoff, Jörg Wiemer and Erol Bozak, from Treasury Intelligence Solutions. The winners graduated from the ESSEC and Mannheim Executive MBA (a joint programme with ESSEC Business School, Paris and Mannheim, Germany). The winners were chosen from four finalists who had to present their business idea

MBA Student of the Year, Alex Dalley, Rotterdam School of Management

to a judging panel of venture capitalists on the day of the award. The judges were Alpesh Patel, Director of Praefinium Partners Ltd; David Gravells, Chairman of the International Accreditation Advisory Board for the Association of MBAs; David Petrie, Head of Corporate Finance at the ICAEW; Oliver Woolley, Founder Director of Envestors Limited and Executive Director of the British Business Angels Association (BBAA).

The MBA Innovation Award was awarded to the Waikato MBA from The University of Waikato Management School in partnership with the Waikato-Tainui College for Research and Development. They developed an MBA programme unique in its curriculum, teaching and learning, and the involvement of alumni. The judges were Sir Paul Judge, President of the Association of MBAs, Peter Lacy, Managing Director Accenture Sustainability Services EALA and Emeritus Professor Andrew Lock, University of Leeds.

The judges were very impressed with the high calibre of entries from accredited business schools across the world. The entries were so strong that as well as the winner and three finalists the judges also chose to highly commend two entries. The finalists were the Lisbon MBA programme from Nova SBE & Catolica-Lisbon SBE in Portugal, the Entrepreneurship Accelerator and Social Entrepreneurship Catalyst from INSEAD and the International MBA and Executive MBA from Nyenrode Business Universiteit in the Netherlands. Highly commended entries were the Executive MBA (Lorange Institute of Business, Zurich) and the One Planet MBA (University of Exeter Business School).

MBA Entrepreneurial Venture Award winners Jörg Wiemer and Wolfgang Kalthoff

Waikato MBA representative John Tresler accepts the MBA Innovation Award from judge Peter Lacy of Accenture

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Association of Masters in Business Administration Annual Report 2011-2012

Worldwide press coverage We provide regular comment and research information to media in the UK and across the globe. This year we achieved an increase in international and UK press coverage with articles published in China, India, Latin America, Europe and the UK. We also conducted a social media audit and strategy to ensure all our social media channels are updated with fresh and relevant content that is of interest to our different audiences, this includes LinkedIn, Facebook and Twitter.

Research The research undertaken by the Association of MBAs is highly important, both for the organisation and all our stakeholders. It develops our global reputation as the authority on postgraduate management education. It also informs our strategies, our accreditation criteria, the business schools and their MBA programmes, media, employers and the wider community. In February 2012 we appointed a new Research Manager. In order to expand and strengthen our research function, we have developed a new home for research at the Association of MBAs, which is called the Evidence & Ideas Lab. The Evidence & Ideas Lab will oversee thought-leadership and evidence based research at the organisation.

Throughout 2012, we undertook global research on management education which has been informative and valuable to all our stakeholders. This included a new research report entitled The Value of the MBA: An Employer Perspective. In July 2012, we released the annual Intake and Graduation Report. Demonstrating the shift of the MBA to a more global degree the research showed growth in enrolments, particularly in China and Latin America. Adding to our regular reports, a series of research collaborations are also underway which will ensure the Association of MBAs continues to inspire global excellence.

We produced in-depth, regionalised reports for the annual Intake and Graduation Report relevant to all regions of the world. Highlights from the survey showed applications and enrolments in MBA programmes increased worldwide. Globally, more students are enrolling onto part-time MBAs – a trend which is also apparent in the UK. Highlights from our research feature on page 17.

Business Leadership Review The Association continues to engage the academic and corporate communities through its quarterly peer-reviewed journal, Business Leadership Review (BLR), which was first published in 2004. Produced by the Evidence & Ideas Lab, with contributions from academics and leadership experts, it is a forum for open debate and actively encourages competing and alternative perspectives on leadership development and management education. In 2011, we launched the first BLR case study competition to encourage the development of real life cases on the subject of leadership in emerging markets. The winner, who was chosen from over 60 submissions, was Dr Ananthi Rajayya from Coimbatore Institute of Engineering and Technology in India. His case title was: ‘Ratan Tata’s vision and the struggling people’s car ‘Nano’ – the dreamed turned into reality?’ He received 3,000 Euros.

Annual Report 2011-2012 Association of Masters in Business Administration

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Research Highlights 2011 Global enrolments on Association of MBAs’ Accredited Programmes

Russia 5% 2,000 North America 3% 1,200

UK 18% 7,000

Latin America 23% 9,000

Europe 23% 9,000 China 16% 6,500 Africa 4.5% 1,800

Australasia 1.7% 680

As the global authority on the MBA, the Association of MBAs holds a vast amount of data and information on postgraduate management education which it shares with its stakeholders. Today, the research the organisation undertakes is truly global.

Research highlights 2011/2012: • Our annual Intake and Graduation Report 2012 series showed that MBA enrolments are increasing at unprecedented rates in several regions. There has been significant growth in the Latin American MBA market: the 29 Association of MBAs’ accredited schools enrol 23% of all students on accredited programmes.

China and Hong Kong also saw large increases in their MBA enrolments: each business school in the region enrolled 40% more students on their accredited MBA programmes in 2011 compared with the previous year.

• Part-time MBA programmes have seen particular growth worldwide. In the UK, there was a 16% increase in part-time enrolments onto accredited part-time MBA programmes.

• The impact of the UK’s visa changes was seen most readily on the accredited full-time MBA market, whereby 62% of all UK schools saw a decrease in full-time MBA enrolments, by an average of 15%.

• Snapshot surveys are now undertaken at Association's events. In May 2012, our snap surveys of over 200 business school deans and directors showed that almost two-thirds felt that MBA programmes would increasingly specialise over the next five years. More than half thought that blended learning MBA programmes would become increasingly common in the coming years.

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Association of Masters in Business Administration Annual Report 2011-2012

THE MBA JOURNEY Membership and Alumni Creating a global network that is recognised and valued professionally for developing and supporting the MBA. As part of the Association of MBAs’ mission to support and engage with the MBA community we deliver a service to accredited business schools and the MBA students and alumni by offering lifelong learning, networking and continued professional development. In 2011/2012, the Association’s membership increased by 17% to a total of 4667 members. This year, we introduced new global events, held more membership events with high profile speakers and refreshed our membership offering and engaged with our members regularly via social networking platforms.

Global AMBAssadors

We also increased our student members by working with accredited business schools on a group membership offering.

Headlined as ‘A network to reshape the world of business’ by The Independent newspaper, the first group of 20 Global AMBAssadors met at our Global Leadership Conference hosted by Ashridge business school in February 2012. The 2012 Global AMBAssadors are from accredited business schools in Australia, China, New Zealand, South Africa, Trinidad & Tobago, Italy, Croatia, Poland, France and the UK.

To connect the MBA community worldwide and support our accredited business schools position the MBA as a global leadership qualification, we launched the Global AMBAssador Programme. The aim of this new initiative is to enhance our MBA membership community internationally, to champion the value and ethos of an accredited MBA, and to build networks among the MBA community and employers globally to promote ethical, innovative and responsible leadership.

During the year the AMBAssadors have been featured in press articles, represented the Association and accredited business schools at the UN’s Corporate Sustainability Forum in Rio and held regional events and online forums.

Annual Report 2011-2012 Association of Masters in Business Administration

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Membership Events The focus for our membership events across the year was to offer opportunities for the continued professional development of our members and to build wider and more meaningful networks. A range of high profile speakers talked on newsworthy topics at our events including Jim O’Neill from Goldman Sachs on the BRIC economy, Sir Martin Sorrell, CEO WPP on global brands and the emerging economies and Sir Tom Hunter on philanthropy and entrepreneurship.

We held twelve MBA Link events across the UK in Glasgow, Strathclyde, Birmingham, Leeds, Southampton, Salford, Bristol, Exeter and four in London. MBA Link events connect MBA students and MBA alumni within their region. The events allow members to build contacts, network with other Association members and benefit from the expertise of high quality industry speakers and respected business school faculty.

We held four MBA Refresher events throughout the year in Newcastle, Leeds, London and our first international MBA Refresher was held in Barcelona in May. Our first European MBA Refresher was also broadcast live via webinar for members across the world. MBA Refreshers are for graduate members who have completed their MBA studies and are interested in updating their knowledge. Delegates are given lectures by leading academics from top business schools on topics covered by current MBA programmes, keeping them up to date with current business thinking and techniques, and providing CPD certificates on departure.

We introduced international networking opportunities for accredited MBA alumni and students at our first Global Connections events in Dubai, New Delhi, Singapore and Mexico City. These events offered the local alumni from different accredited business schools an opportunity to meet and enjoy an evening networking and listening to a speech from a leading local entrepreneur or management executive.

We introduced a new webinar series in 2012 to provide MBA alumni and students around the world with access to experts speaking about the latest thinking on leadership, management and careers. The topics covered during the year ranged from strategy to social media, networking and branding.

We continue to look at the best ways to provide our members with a quality careers service and this year that included more career workshops. Twelve workshops were held for student members at different schools throughout the year.

To support our global network of MBA alumni and students and offer information to assist in their continued professional development we provide members with benefits, including access to jobs and a careers service, tailored executive benefits, bi-monthly email newsletters containing the latest management articles, jobs and

information on Association of MBAs events, and a free subscription to our quarterly magazine Ambition.

This year, we enhanced Ambition’s content to reflect our growing international membership and the changes to management education by introducing interviews and articles from inspirational leaders including Kevin Roberts, Global CEO of Saatchi & Saatchi and a new regular column with a Global AMBAssador giving their view on the economy and employment in their country.

The next steps for investment in our membership offering will include the development of a careers centre with a comprehensive jobs portal and online learning and advice.

Corporates Membership and Alumni

MBA

Pre MBA

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Association of Masters in Business Administration Annual Report 2011-2012

THE MBA JOURNEY Corporate Engaging employers with the accredited MBA community and raising the profile of accredited MBAs amongst the corporate environment.

To complete the MBA Journey and to fulfill our charitable objectives of offering benefit to our stakeholders, we have developed an employer engagement strategy which connects employers, MBAs and business schools. We aim to create a link between employers and the MBA community that will lead to employment opportunities, influence business school curriculum and raise the profile of accredited MBAs amongst key employers and MBA recruiters.

We have continued to build employer relationships across various sectors as part of a long-term strategy that has been developed as an all-encompassing talent management journey, designed to support corporate members in understanding, attracting and supporting MBAs and senior management within their organisation.

New Corporate Relations Manager We hired a new Corporate Relations Manager this year to engage with employers and set up new corporate relationships, organise events and raise the profile of the accredited MBA among employers in order to support our business schools’ career departments.

Employers Forum We hosted our first official Employers’ Forum in July, with 40 attendees from business school career services staff and MBA employers. The day event included presentations from GMAC on their Corporate Recruiter survey results, Portsmouth Business School speaking on their new MBA Business Placement, BraveNewTalent on recruitment technologies and Corporates SannamS4 on current recruitment trends in India.

Membership and Alumni

MBA

Pre MBA

Annual Report 2011-2012 Association of Masters in Business Administration

Treasurer’s Report As the newly appointed Treasurer I am pleased to report a sustained income stream and robust balance sheet, which is a direct result of the careful stewardship of the staff and trustees of the Association over the recent past. The result for the year has further strengthened our asset base sheet so that accumulated funds are now at a record level and are represented by readily available cash and investments. The Association is committed to openness and transparency in its dealings with members, business schools and other key stakeholders, and believes that any such surpluses should be fully applied to meet our charitable objectives.

Income and Expenses Our primary income sources of accreditation fees and membership subscriptions have increased by 8% per annum and continue to flourish, and we are also grateful to our sponsors who contribute to the important events in the Association’s calendar. Salaries remain fairly constant as a proportion of total spend and the average salary level has decreased, despite recruiting more staff. Central overheads have risen by 14% as a result of our decision to invest in the Head Office infrastructure. The resulting surplus for the year has been credited to general funds.

During the year we have also revised our accreditation billing methods which are now much clearer and better reflect the contractual arrangements with the business schools. We continue to monitor the membership income and find innovative ways to provide value for money.

Assets and Liabilities We continue the policy of maintaining high levels of liquidity and access to cash. This is in order to fund the projects that have been specifically identified. During the forthcoming year we will be reviewing the level and adequacy of the funds in Note 12 to align with our strategic and charitable objectives. We have also taken a decision to review the composition of these funds in light of the individual projects we are currently considering to enhance the delivery of our services to the members and business schools.

The designated funds in the balance sheet will shortly be used, and it is important that we continue to spend this money for the general benefit of both members and business schools. Due to the imminent nature of these projects we have not locked cash or investments for long periods so that we have reasonable access to liquidity and to allow these funds to flow through the balance sheet back to the members and business schools in pursuit of our charitable objectives.

Management Information systems Having implemented a new strategy, we are re-aligning our management information systems to streamline the reporting process. We have enlisted the help of independent consultants to ensure that information is timely and accurate and is used as a basis for operational decision making.

We are also internally reorganising our accounting and IT systems to provide a better reporting and management information system to assist the FRC in assessing and controlling risk. These initiatives are being funded through the Designated IT fund.

We are currently reviewing the area of performance measurement and establishing key performance indicators to help manage our operational processes.

I would like to place on record my thanks to my predecessor Claude Sarfo for his diligence and guidance in establishing this strong footing. I am confident that the measures we now have in place will provide a more robust reporting structure and that it will provide a platform for ongoing development which will enhance our business performance.

We continue to run our subsidiary, BGA Business Services Limited, as a conduit for our non-primary purpose trading and are currently revising the Deed of Covenant and replacing it with Gift Aid.

Len Jones Treasurer

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Association of Masters in Business Administration Annual Report 2011-2012

Report of the Board of Trustees of the Association of Masters in Business Administration The Association’s Board of Trustees submits its annual report and group financial statements for the year ended 30 September 2012.

Charitable Objective

Principal activity

To advance business education at a postgraduate level.

The Board of Trustees is responsible for the overall governance and strategic direction of the Association of MBAs. They meet regularly during the year to consider, determine and review the Association of MBAs’ strategies and policies, and to receive reports from the CEO and/ or COO.

The organisation The Association of MBAs is a body incorporated under the Companies Act 2006 as a company limited by guarantee and not having a share capital. The governing documents are the Memorandum and Articles of Association as approved by the members. It is also registered as a charity with the Charity Commission (registered number 313412).

The Association has a wholly owned subsidiary, BGA Business Services Limited, incorporated in the United Kingdom, which is run as a conduit for our non-primary purpose trading. The investment in this subsidiary is included in the charity balance sheet at a value of £65. Its historic cost was £100.

The Board of Trustees The Association is governed by a Board of Trustees, which comprises a Chairman, Treasurer and up to eleven other board members. The day to day affairs of the Association are managed by a Chief Executive, Chief Operating Officer and the operational team.

Members of the Board of Trustees are elected by the Association’s graduate and individual members. They serve for three years and are eligible for appointment for one further consecutive term of up to three years. In addition, where specific skills are required to enhance the board and to provide a breadth of knowledge and experience, the trustees may co-opt up to six individuals to be members of the Board of Trustees. The co-opted members serve for one year and can be co-opted again for up to six years. These members can be representatives of business schools (up to two co-options) and employers (up to two co-options) with up to a further two co-options to be used at the discretion of the Board. On appointment trustees are required to complete a register of interests and are given a Trustee Handbook that includes the Memorandum and Articles of Association and policies and procedures on issues such as diversity, equal opportunities, levels and delegation of authority, and other guidance. There is also a formal induction process and trustees may undertake relevant training where appropriate.

In addition there are three formal subcommittees – the Finance and Risk Committee, the International Accreditation Advisory Board and the Human Resources Committee.

All trustees are non-executive and work for the Association in a voluntary capacity. The current Chair of the Board and all trustees are listed on page 5.

The strategy and activities of the Association are based on the charitable objective to advance postgraduate business education. This is done by delivering a world class accreditation service and connecting a global network of MBA students and graduates through membership. The Association’s strategic objectives are set out earlier in this report. (see Page 10) In shaping the activities for this financial year, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging. The Association relies on income from business school fees and charges made to our student and graduate members. In setting the level of fees, charges and concessions, the Trustees give careful consideration to the accessibility of the Association for those experiencing financial hardship.

Public benefit remit The Association contributes to the advancement of postgraduate management education and offers a public benefit with its impartial advice and information, and its services that assist those wishing to study for an MBA, DBA or MBM. It also assists in the advancement of postgraduate management education by setting standards for accrediting MBA, DBA and MBM programmes, investing in research and lobbying governments where necessary to raise the profile of the value of the MBA. The Association offers benefit to its beneficiaries (accredited business schools and MBA student and alumni members) by providing educational activities and services designed to assist members in the management of their careers, and it organises conferences and forums that initiate ideas and debate to assist in the advancement of postgraduate management education.

Its services include research, policy, newsletters, magazines, online information, events and the Association’s general contribution to the awareness of the sector also benefits the beneficiaries.

Annual Report 2011-2012 Association of Masters in Business Administration

Results for the year The results of the group for the year ended 30 September 2012 are set out in the attached financial statements. A surplus of £152,369 was added to the accumulated fund after a transfer of £3,366 to Designated Funds.

Further review of the group’s activities for the period is given in the Operating and Financial Review.

Review of the financial position The financial statements include the results of the Association and its sole subsidiary, BGA Business Services Limited for the year ending 30 September 2012.

Total incoming resources grew by 7% to £3.0m and expenditure has increased by 14% to £2.9m despite the longer accounting period in 2011. The net surplus before movements in the value of investments and transfers was £96,990. (2011 - £239,091) A total of £3,366 has been transferred to the Designated Funds leaving a surplus of £152,369 in the General Fund.

Fixed assets Details of changes in fixed assets are given in note 8 to the financial statements. During the year we removed assets from the fixed asset register following our decision to upgrade the premises. These assets had an original cost of £96,477. As part of our membership development programme and decision to upgrade our website we have also fully depreciated the existing website.

Reserves policy The Board of Trustees are of the opinion that reserves should be at least at a level to ensure the charity can run efficiently and meet the needs of the beneficiaries and sustain its development. It is the Association’s stated long-term objective to build the accumulated reserves to cover its running costs.

Further transfers have been made to the dilapidations reserve fund to meet any future liabilities under the term of the charity’s leased premises. A transfer has also been made from the IT Fund to the General Fund, as these funds were deemed surplus to immediate requirements.

The Association follows a policy to retain General Funds to cover its overheads. As we have a more predictable stream of income due to the contractual nature of our fees, the Trustees feel this policy is adequate.

The value of the Unrestricted Funds at 30 September 2012 was £732,099 which represented four months of unrestricted expenditure.

A part of the Reserves are treated as Designated Funds and are set aside for specific purposes in the near future (Designated funds consist of the Development Fund, the IT Fund and Dilapidation Fund). In addition, cash and readily available funds are maintained at a level to at least meet all current liabilities at any given time.

Key risks and uncertainties The Finance and Risk Committee of the Board review and maintain the risk register in conjunction with the Association’s executive team.

Based on using the Charity Commission's model, the process ensures that the Trustees have assessed the risks to which the Association is exposed and put mitigation plans into place in order to minimise potential risk.

The process looks at the likelihood and impact of a potential risk and scores are allocated to both categories which allow the Trustees to identify Major, Medium and Minor level risks. This aids prioritisation and once risk mitigation plans are put in place it also provides an opportunity to judge whether the mitigation has been effective and if further action is required.

Risks reviewed cover four key areas: • Governance – covers all aspects of trustee activities, strategy, Charitable Purpose/Public Benefit and the Memorandum and Articles of Association • Operational activities – covers delivery of the Association’s core activities, day to day operations, health & safety, HR activities • Finance – covers all aspects of financial risk • External environment changes and development – covers competitor activities, changes in the operating environment, changes within the Association’s stakeholder groups.

Investments The Association seeks to maximise the return on assets while not making investments that could put the Association at significant risk. We are also mindful of the requirement to release cash from the designated funds for forthcoming expenditure so our investment policy is to hold cash on deposit and readily realisable investments.

Our Investment Fund advisors report to us on a quarterly basis regarding the make-up and suitability of the investment portfolio. Our policy is to invest ethically and to spread the risk between European, American and emerging markets. The cumulative total unrealised gain on the investment portfolio during the year was £59,824.

Realised losses of £1,079 were made during the year. The market value of the investment portfolio at 30 September 2012 was £460,100 (2011- £400,276).

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Association of Masters in Business Administration Annual Report 2011-2012

Key achievements

• select suitable accounting policies and then apply them consistently;

• Membership increased by 17% to 4,667 members.

• make judgements and estimates that are reasonable and prudent; and

• Number of accredited business schools increased from 186 to 198 schools worldwide.

• 31 member events held and 13 business school events held during financial year.

• Supported pre-MBAs with a new microsite, two accredited MBA Fairs in London and representation to potential MBA students in eight countries worldwide.

• Launched Global AMBAssador network.

Financial outlook The Association will continue to develop ways of promoting the benefits of postgraduate business education, increasing quality accreditation internationally and providing a range of relevant services to its members. The budget for the coming year will show an overall deficit, nevertheless we will continue to invest in the necessary infrastructure changes to deliver our three year strategy using the designated funds. Caution and prudence are the hallmarks of the current financial plan in view of the continuing challenging economic climate.

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue in business.

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Association and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for ensuring that the report of the Board of Trustees and other information included in the Annual Report is prepared in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The directors are responsible for the maintenance and integrity of the corporate and financial information on the Association’s website.

Disclosure of information to auditors

Going concern

At the date of making this report, each of the Association’s directors, as set out on page 4, confirm the following:

The board confirms that, after making appropriate enquiries, it has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future and has assets to fulfil all obligations. For this reason, it continues to adopt the going concern basis in preparing these financial statements.

• so far as each director is aware, there is no relevant information needed by the Association’s auditors in connection with preparing their report of which the Association’s auditors are unaware, and

Statement of directors’ responsibilities for the financial statements Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The financial statements are required by law to give a true and fair view of the state of affairs of the group and the Association and of the surplus or deficit of the group for that period. In preparing those financial statements, the directors are required to:

• each of the directors has taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant information needed by the Association’s auditors in connection with preparing their report and to establish that the Association’s auditors are aware of that information.

Auditors Mazars LLP, were appointed as auditors during the previous accounting period.

Small company provisions This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

By order of the Association of MBAs Board of Trustees

Christopher Russell Balkwill Chair Date: 18 March 2013

Annual Report 2011-2012 Association of Masters in Business Administration

Report of the Independent Auditors to the members for the year ending 30 September 2012 We have audited the financial statements of The Association of Masters in Business Administration for the year ended 30 September 2012 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Respective responsibilities of trustees and auditors As explained more fully in the Trustees’ Responsibilities Statement set out on page 24 the trustees (who are also the directors of the charity 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.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors. This report is made solely to the charity’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 charity’s members 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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate.

Opinion on the financial statements In our opinion the financial statements: • give a true and fair view of the state of the group and of the charity’s affairs as at 30 September 2012 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.

Opinion on the other matter prescribed by the Companies Act 2006 In our opinion the information given in the Report of the Association of MBAs' Board of Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception 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: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor Times House, Throwley Way, Sutton, Surrey, SM1 4JQ Date: 19 March 2013

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Association of Masters in Business Administration Annual Report 2011-2012

Consolidated Statement Of Financial Activities

Year ended 15 months ended for the year ended 30 September 2012 General Designated 30 September 30 September

Note Fund Fund 2012 2011 (Restated)

£ £ £ £ Incoming resources from generated funds Conferences and forums 758,837

- 758,837 479,193 Bank Interest receivable

6,683 - 6,683 11,140 Investment income

5,141 - 5,141 3,236 Incoming resources from Charitable Activities Membership 3(a) 1,082,250 - 1,082,250 1,282,049 MBA Accreditation 3(b) 1,125,352 - 1,125,352 844,757 Other 3(c) 13,995 - 13,995 163,545 Total incoming resources

2,992,258

-

2,992,258

2,783,920

Cost of generating funds Conferences and forums Charitable activities Membership activities and services MBA Accreditation Other Total charitable activities

374,693

-

374,693

242,381

3(c) 3(a) 3(b) 4

946,454 885,948 626,031 2,458,433

- - - -

946,454 885,948 626,031 2,458,433

933,256 710,750 620,674 2,264,680

Governance

4

62,142

-

62,142

37,768

2,895,268

-

2,895,268

2,544,829

96,990 (3,366)

- 3,366

96,990 -

239,091 -

93,624 58,745

3,366 -

96,990 58,745

239,091 (38,524)

Total resources expended

Net Incoming Resources before transfers Transfers to Designated funds 12

Other recognised profit(loss) on investments

Net Movement in Resources for the year Accumulated Fund B/Fwd at 1 October 2011

152,369 579,729

3,366 555,396

155,735 1,135,125

200,567 934,558

Accumulated Fund C/Fwd at 30 September 2012

732,098

558,762

1,290,860

1,135,125

All operations detailed above are continuing and there have been no recognised gains or losses other than those included above.

The notes on pages 27 to 31 form part of these financial statements.

Balance Sheets

As at 30 September 2012

Consolidated Charity

30 September 30 September 30 September 30 September

Note 2012 2011 2012 2011

£ £ £ £ Tangible Fixed Assets 2(e) & 8 68,515 119,570 68,515 119,570 Investments 5 460,100 400,276 460,165 400,341

528,615

519,846

528,680

519,911

Current Assets

870,350 892,745

505,025 1,308,056

870,327 890,487

495,981 1,298,469

1,763,095

1,813,081

1,760,814

1,794,450

Debtors 9 Cash at bank and in hand

Creditors and deferred income Amounts falling due within one year

10

(1,000,850)

(1,197,802)

(998,634)

(1,179,236)

Net Current Assets

762,245

615,279

762,180

615,214

Total Net Assets

1,290,860

1,135,125

1,290,860

1,135,125

732,098 558,762

579,729 555,396

732,098 558,762

579,729 555,396

Reserves

General Fund 12 Designated Funds

1,290,860 1,135,125 1,290,860 1,135,125

The financial statements are prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. Approved by the International Management Board and signed on its behalf by Christopher Russell Balkwill – Chair Date: 13 March 2013

Len Jones – Treasurer Date: 13 March 2013

Annual Report 2011-2012 Association of Masters in Business Administration

Notes to the Financial Statements 1. Organisation

e) Tangible fixed assets and depreciation

The Association of Masters in Business Administration is incorporated under the Companies Act 2006 as a company limited by guarantee and not having a share capital. Under the terms of the guarantee the Association’s members may be liable to pay a sum not exceeding £1 each in the event of a winding up. There were 4,667 individual members at 30 September 2012 and 198 accredited business schools.

Each class of tangible fixed asset is included at cost.

There is no minimum value below which fixed assets are not capitalised. Fixed assets are depreciated over their estimated useful life on a straight-line basis.

Computer equipment and website development are depreciated over three years (33 1/3% p.a.) and fixtures and fittings over ten years (10%p.a.). Leasehold premises are amortised over the initial tenure of the lease on a straight-line basis. Where there is evidence of impairment, fixed assets are written down to their recoverable amounts. Any such write-downs are charged to operating surplus.

2. Accounting Policies a) Convention The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the 2005 Statement of Recommended Practice ‘Accounting and Reporting by Charities’ and the Charities Act 2011.

The financial statements have been prepared on the going concern basis. Further details on the assessment made are given in the Report of the International Management Board. b) Basis of consolidation The group financial statements consolidate the financial statements of B.G.A. Business Services Limited. No Statement of Financial Activities is provided for the Association as permitted by s.408 of the Companies Act 2006. The group has taken the available exemption under FRS 8 “Related party transactions” not to disclose transactions with B.G.A Business Services Limited.

f) Cash flow statement Under the provisions of Financial Reporting Standard No. 1, issued by the Accounting Standards Board, the company is not required to produce a Cash Flow Statement. However, in future a Cash Flow Statement will be prepared. g) Pension costs The charity has a policy of making contributions to individual employee pension schemes held by eligible employees, which are recognised in the Statement of Financial Activities as incurred. h) Foreign currency Assets and liabilities denominated in foreign currency are translated into sterling at the rates of exchange ruling at 30 September 2012. Exchange differences are taken to the Statement of Financial Activities.

c) Membership subscriptions

i) Investments

Annual Individual Membership subscriptions are recognised on a receipts basis and are deferred and brought into income monthly. Business School and Corporate Membership subscriptions are dealt with on a receivable basis the unexpired portion remaining at the period-end, in both cases, is carried forward to the next accounting period.

Investments are stated at market value.

d) Expenditure Expenditure headings include an allocation of staff salaries and associated costs based upon an assessment of time spent. Similarly, a proportion of establishment and facilities costs is also allocated based upon a formula that reflects the usage of such resources by the various sectors of the organisation. Governance costs represent the allocation of staff time and associated costs spent in managing and administering the Association. During the year the method of allocation of costs between activities has been reviewed in order to allocate the costs on a more reasonable basis.

The comparative figures have therefore been restated.

j) Leases Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the terms of the leases. k) Designated funds Designated funds are those which the trustees have set aside for particular future purposes. These funds form part of the unrestricted funds and can be used at the discretion of the trustees.

27

28

Association of Masters in Business Administration Annual Report 2011-2012

3. Activity

b) MBA Accreditation

Of the total incoming resources, 59% relates to overseas income and the total is analysed as follows:

This is the income and expenditure appertaining to the provision of the Association’s quality accreditation service.

Registration and pre-assessment income is recognised when the business school has agreed to undertake the service provided with the remainder of the income recognised on the completion of the assessment.

Rest of the World 23% UK 41%

c) Other - MBA Awareness

Rest of Europe 28% North America 8% a) Membership activities and services This income and expenditure relates to the membership activities, events and services designed to assist members in the management of their careers, keep up to date with professional developments and current management thinking and to benefit from being a part of a large membership organisation. This includes the cost of activities and events that support membership including the publication and mailing of Ambition, the quarterly membership magazine, MBA Refreshers, Careers Workshops and research.

This income and expenditure relates to the activities that raise awareness of the MBA and of the Association’s work in its mission to advance postgraduate business education.

It includes the organisation of business school fairs for prospective MBA students and the promotion of the value of management education in general. This is achieved through research, lobbying government bodies, engaging with the public and employers, plus the business and educational press. It also includes the Association’s annual MBA Awards and the Global AMBAssador Programme.

4. Expenditure Analysis

Year ended 15 months ended

30 September 30 September 2012 2011

Staff Costs Depreciation Direct Costs Total Total (Restated) Charitable activities £ £ £ £ £ Membership activities 235,873 18,296 237,437 491,606 375,736 Membership services 218,789 18,296 217,763 454,848 557,520 MBA Accreditation 337,529 40,594 507,825 885,948 710,750 Other 325,283 14,637 286,111 626,031 620,674

1,117,474

Governance costs*

30,066 1,147,540

91,823 1,249,136 2,458,433 2,264,680 - 32,076 62,142 37,768 91,823 1,281,212 2,520,575 2,302,448

All direct costs are attributed to the relevant cost centres. Staff costs and depreciation are apportioned on the basis of time spent by staff directly engaged in the relevant activities in furtherance of the objects of the Association. *Governance costs includes, audit and accountancy fees, AGM costs and support costs.

The expenditure shown above includes:

Fees paid to the Association’s auditor for the audit of the financial statements Depreciation

Year ended 30 September 2012 £

15 months ended 30 September 2011 £

7,966

7,265

91,823 88,010

Operating leases: Equipment

8,247 16,108

Property

100,119 100,000

Irrecoverable VAT

£49,000

£57,699

35,027

20,602

Trustees reimbursed expenses

Annual Report 2011-2012 Association of Masters in Business Administration

29

5. Fixed asset investments

Investment funds Investments in subsidiary

Consolidated Charity 30 September 30 September 30 September 30 September 2012 2011 2012 2011 £ £ £ £ 460,100 400,276 460,100 400,276 - - 65 65

460,100

400,276

460,165

400,341

Investment funds The group has invested funds in a portfolio of listed securities, which are being managed by a third party fund manager. £

Carrying value at 1 October 2011 Additions Increase in cash balances Disposals Realised loss on sales Unrealised profit on revaluation

400,276 85,000 14,943 (98,864) (1,079) 59,824

Carrying value at 30 September 2012

460,100

Investments in subsidiary The Association of MBAs has a wholly owned subsidiary, B.G.A. Business Services Limited which is incorporated in the United Kingdom. B.G.A. Business Services Limited organises fund raising activities on its behalf. The subsidiary covenants its taxable profits to the Association. A summary of its trading results is shown below. Audited accounts will be filed with the Registrar of Companies. The investment in this subsidiary is included in the company balance sheet at a value of £65, this being the net assets of the subsidiary. The historical cost was £100.

Profit and Loss Account

Turnover Cost of sales Gross profit

Year ended 15 months ended 30 September 2012 30 September 2011 £ £ 733,721

479,193

(323,189)

(242,011)

410,532

237,182

(169,446)

(371)

241,086

236,811

(241,086)

(236,811)

-

-

Total assets of subsidiary

47,200

44,836

Total liabilities of subsidiary

47,137

44,771

65

65

Administration expenses Net profit Amount covenanted to the charitable company Retained in subsidiary

Equity shareholders’ funds

30

Association of Masters in Business Administration Annual Report 2011-2012

6. Employees and Directors The average number of staff employed during the year was 20 (2011 - 12).

Wages and salaries Social Security costs Pension costs Medical scheme

Year ended 15 months ended 30 September 2012 30 September 2011 £ £ 991,124 864,483 108,070 96,357 38,136 33,064 10,210 17,515

Total staff emoluments

1,147,540

The number of employees paid over £60,000 during the year (2011 figures are for the 15 month period ended 30 September 2011) were:

2012 2011 £60,000 - £70,000 1 £70,000 - £80,000 - 1 £90,000 - £100,000 - 3 £180,000 – 190,000 1 -

1,011,419

Of the total pension costs left, £12,473 relates to contributions for higher paid staff. (2011 - £23,715) No trustee or person related or connected by business to them, has received any remuneration from the charity during the year (2011-£2,500).

During the year, the total expenses reimbursed to the trustees amounted to £35,027 (2011-£20,602). This primarily represents reimbursed travelling expenses incurred in attending trustees’ meetings and the cost of meetings, training and induction expenses. In addition, the Association has a professional indemnity insurance policy, which includes cover for the trustees. The annual premium payable is £2,354 (2011 - £7,738).

7. Taxation The Association has charitable status and is exempt from Corporation Tax. No Corporation Tax charge arises for the year from the results of B.G.A. Business Services Limited.

8. Tangible Fixed Assets (consolidated and charity )

Leasehold Website Computer Fixtures &

Total Premises Development Equipment Fittings

£ £ £ £ £ Cost At 1 October 2011 352,777 72,651 126,270 110,028 43,828 Additions 64,594 23,826 - 40,768 Assets written off (222,747) (96,477) (126,270) - At 30 September 2012

194,624

-

-

150,796

43,828

Depreciation At 1 October 2011 233,207 72,651 80,781 47,198 32,577 Written back on write off (198,921) (72,651) (126,270)

- Charge for the period 91,823 - 45,489 42,412 3,922 At 30 September 2012

126,109

-

-

89,610

36,499

Net Book Value at 30 September 2012

68,515

-

-

61,186

7,329

Net Book Value at 30 September 2012

119,570

-

45,489

62,830

11,251

9. Debtors

Trade debtors Sundry debtors Prepayments

Consolidated Charity 30 September 2012 30 September 2011 30 September 2012 30 September 2011 £ £ £ £ 615,753 287,076 615,753 287,076 29,979 11,664 29,956 11,664 224,618 206,285 224,618 197,241 870,350

505,025

870,327

495,981

31

Annual Report 2011-2012 Association of Masters in Business Administration

10. Creditors and Deferred Income

Subscriptions in advance Creditors Amounts owed to subsidiary undertaking Accruals and deferred income Tax and Social Security

Consolidated Charity 30 September 30 September 30 September 30 September 2012 2011 2012 2011 £ £ £ £ 492,977 474,712 492,977 474,712 124,163 192,247 124,163 192,247 - - 44,919 26,133 308,213

505,356

261,078

460,657

75,497

25,487

75,497

25,487

1,000,850

1,197,802

998,634

1,179,236

11. Operating Lease Commitments At the period end, the company was committed to make the following payments during the next year in respect of operating leases.

Land and buildings Office equipment

Year ended 15 months ended Year ended 15 months ended

30 September 30 September 30 September 30 September

2012 2011 2012 2011

£ £ £ £ Leases which expire: Within one year - 100,000 1,400 Between 2 and 5 years - - 7,490 12,073 After more than 5 years 99,109 - - Total

99,109 100,000

8,890 12,073

Rental costs in respect of operating leases are charged to the statement of financial activities on a straight-line basis over the term of the leases.

12. Funds

Total General Development IT Fund Fund Fund

£ £ £ Balance at 1 October 2011 1,135,125 579,729 172,750 295,146 Movement in funds for the year 155,735 152,369 - (65,147)

Dilapidations Fund £ 87,500 68,513

Balance at 30 September 2012 1,290,860 732,098 172,750 229,999 156,013

The General fund represents the free funds of the charity, which are not designated for specific purposes.

Designated funds The Development Fund is intended to provide for the global expansion of educational activities in new regions and to cultivate and grow expanded relations with employers.

The IT Fund has been set up to provide for the development of upgraded systems to improve services to members.

The Trustees have transferred out £65,147 to the Dilapidations Fund.

The Dilapidations Fund recognises that there is potentially a future commitment to carry out repairs under the terms of the lease of the charity’s premises. The trustees have transferred £65,147 from the IT Fund and £3,366 to the General Fund during the year.

32

Association of Masters in Business Administration Annual Report 2011-2012

Consolidated Five Year Summary

1

2012 2011 2010 2009 2008 30-Sept 30-Sept 30-Jun 30-Jun 30-Jun

Numbers of members/subscribers

Number of Members

4,667 3,985 3,832 4,032 3,783

% Increase/(decrease)

+17% +4% (5%) +7% (25%)

4,596

Number of Business Leadership Review (BLR) subscribers

% Increase/(decrease) Number of Accredited Business schools

3

Number of Accreditation assessment visits

4

Full-time staff

Average number employed during year

Staff costs (£000)

% of Total costs 5

5,251

5,370

4,946

(15%) +2% (2%) +9% +6%

2

(includes first time assessments and re-accreditations)

5,382

198 186 169 163 153

56

43

43

43

35

20

17

18

19

18

1,148 1,011 869 836 759 40% 40% 43% 39% 44%

Income & expenditure

Total income (£000)

Total expenditure (£000)

Surplus/(deficit) (£000)

Income stream analysis

Membership activities & services (£000)

MBA Accreditation (£000)

Other Income (£000)

Total Income (£000)

Expenditure analysis

Membership activities & services (£000)

2,992 2,784 2,246 2,015 1,980 (2,895) (2,545) (2,015) (2,118) (1,714) 97

239

231

(103)

266

1,082

1,282

938

913

876

1,125 845 708 621 637 785 657 600 481 467 2,992 2,784 2,246 2,015 1,980

946

933

620

728

625

MBA Accreditation (£000)

886 711 519 515 424

Other Expenditure (£000)

1,063 901 876 875 665

Total Expenditure (£000)

2,895 2,545 2,015 2,118 1,714

6

Financial resilience

Liquidity and short term investments (£000)

1,353

1,699

1,367

949

1,041

Total reserves (£000)

1,291

1,135

935

713

816

Reserves as % of annual expenditure (prorated to 12 months for 2011)

45%

45%

46%

34%

48%

Annual Report 2011-2012 Association of Masters in Business Administration

33

Income and Expenditure totals 2008 - 2012 Number of accredited Business Schools

Number of members

153

3,783

4,032

3,832

3,985

4,667

2008

2009

2010

2011

2012

2008

169

163

2009

2010

Income and Expenditure 2011 / 2012

2012 Membership 36% Accreditation 36% 2012 Income ÂŁ2,993,000

Other 27%

Income 2,992,000 Expenditure 2,895,000 Surplus 97,000

2011 Income 2,784,000 Expenditure 2,545,000 Surplus 239,000

2010 Income 2,246,000 Expenditure 2,015,000 Surplus 231,000

2009 Membership 33% Accreditation 30% Other 37%

2012 Expenditure ÂŁ2,895,000

Income 2,015,000 Expenditure 2,118,000 Deficit 103,000

2008 Income 1,980,000 Expenditure 1,714,000 Surplus 266,000

186

2011

198

2012

34

Association of Masters in Business Administration Annual Report 2011-2012

Reports from the Finance and Risk Committee, HR Committee and the International Accreditation Advisory Board A list of members of each committee and the IAAB is on the following page.

Report from the International Accreditation Advisory Board (IAAB)

Finance and Risk Committee Report

The purpose of the International Accreditation Advisory Board (IAAB) is to provide advice on accreditation policies and processes and award accreditation within the criteria and process set by the Association’s Board of Trustees.

The Board agreed in August 2011 to set up a formal Finance and Risk Committee (FRC) with the purpose: “to consider and advise the Board of Trusees on all aspects of the Association of Masters of Business Administration’s finances, financial policies and controls, including risk management.”

The committee comprises four trustees including the treasurer as well as the Chief Operating Officer and finance team.

The FRC held eight meetings (including teleconferences) during the reporting period.

The first to implement the Board decision and enhance the Association’s risk management approach using the Charity Commission model.

Once fully up and running from February 2012, regular business routinely covered the risk register and related policies, current management accounts, investment policy including major projects (e.g. IT upgrade, office refurbishment), and finance and project performance monitoring.

Following our first year of working with Mazars as auditors, one of the notable tasks during the year has been to review and develop the accounting function with more automated processes and “dashboard reporting” for the FRC and IMB. We thank Claude Sarfo who retired as the Association’s Finance Director after six and a half years, and welcome Len Jones, our as our new Treasurer.

We record our thanks to the Finance Team and the Chief Operating Officer for their input to our decisions and subsequent Board of Trustee recommendations, plus the work they have done throughout the year.

Report from the HR Committee Over the course of the year, the HR Committee met to consider policies relating to the team at the Association of MBAs, including training and development, recruitment, health and safety, contracts of employment, and employee relations. The HRC then made recommendations to the Board of Trustees.

The International Accreditation Advisory Board (IAAB), the key governing body for the Association of MBAs’ accreditation function, meets at least twice a year to ensure that the highest standards are continually being met with regards to postgraduate management education. The IAAB’s remit includes advising on accreditation strategy, updating the accreditation criteria used to assess programmes and endorsing all accreditation assessment decisions.

In the financial year (2011/2012), the IAAB has been extremely active in advising on a host of strategic accreditation issues. Understandably many of these issues are market-sensitive, but the following provides a flavour of the areas of consideration: Criteria Review - The philosophy of the accreditation criteria are continually debated by the IAAB to ensure that our standards remain at the forefront of best practice and innovation. For example, the relevance of the three year work experience as a minimum entry requirement for an accredited MBA was widely discussed and upheld.

Faculty of Assessors - Policies for the training, development and growth of our Faculty of Assessors - the team of peer reviewers who undertake accreditation visits – were formalised, ensuring that current high standards are maintained as this elite team expands to meet the challenges of the increasingly international accreditation service.

Market Development - The IAAB provided advice on the continuing international expansion of accreditation into new markets, to enable quality management education to thrive in all parts of the world.

Business School Services - The IAAB were also consulted on a number of new initiatives designed to add further value to the family of accredited business schools, through both the consultancy element of accreditation and the portfolio of business school events.

Process Review - A working group of the IAAB revised the process for accreditation to ensure greater transparency for all stakeholders. This included updating the Terms of Reference for the IAAB.

Annual Report 2011-2012 Association of Masters in Business Administration

Board of Trustees Committees and Working Groups to 30 September 2012 Finance and Risk Committee Steve Gorton – Chair Claude Sarfo (Finance Director to March 2012) Len Jones (Treasurer from July 2012) Barry Tuckwood Carol Groombridge

International Accreditation Board (2011-12) Mr David Gravells Chair, International Accreditation Advisory Board Professor Nick Binedell Dean, Gordon Institute of Business Science

Association of MBAs’ Chief Operating Officer and Finance Team

Professor Robert Dixon Dean, Durham Business School

HR Committee

Professor Martyn Jones Pro Vice-Chancellor External Relations, Kingston University

Chris Russell – Chair Len Jones Ian Parkes

Professor Valerie Gautier Associate Dean, HEC Paris

The Association of MBAs’ CEO/COO

Professor Santiago Iñiguez de Onzoño Rector, Instituto de Empresa University

Governance Group

Professor Andrew Lock Dean Emeritus, Leeds University Business School

Chris Russell - Chair Kathy Lewis Carol Groombridge

IT Governance Group Steve Gorton – Chair Steve Hooker (non-trustee member) Tim Instone (non-trustee member)

Professor Philip McLaughlin Director & Dean, Bordeaux Ecole de Management Dr Mark Oakley Academic Consultant, Association of MBAs Professor James Wright Director, Fundacao Instituto de Administracao University of Sao Paulo Professor Kai Peters CEO, Ashridge Professor Michael Patry Director, HEC Montreal Mr Carlos Ramos International Advisor, Association of MBAs Professor Zhongming Wang Director, ZJU-CAPS National Centre for HR Technology & Standardization, Zhejiang University Steve Gorton Representative of the International Management Board Mark Stoddard Accreditation Projects Manager, Association of MBAs George Iliev Accreditation Services Manager, Association of MBAs

35

Association of MBAs 25 Hosier Lane London EC1A 9LQ General Enquiries E: info@mbaworld.com T: +44 (0)20 7246 2686 Membership Enquiries E: membership@mbaworld.com T: +44 (0)20 7246 2691 Accreditation Enquiries E: accreditation@mbaworld.com T: +44 (0)20 7246 2693 www.mbaworld.com www.ambaguide.com