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2022-03-31-accounts

Award Foundation

(a Company Limited by Guarantee)

Trustees' Annual Report and Financial Statements

for the year ended 31 March 2022

Company Number: 3666389

Registered Charity Number: 1072453

1

Contents

Trustees Annual Report

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About Us ............................................................................................................................................................. 3
Our year ............................................................................................................................................................. 4
tion 2021- ........................................................................... 5
.............................................................................................................................. 7
Encouraging and enabling the Award internationally ....................................................................................... 8
Financial Review ............................................................................................................................................... 11
commitment ..................................................................................................................................... 16
Thank you ......................................................................................................................................................... 16
............. 17
Consolidated statement of financial activities for the year ended 31 March 2022 ................................................... 21
Consolidated and Charity balance sheets at 31 March 2022 ..................................................................................... 22
Consolidated cash flow statement for the year ended 31 March 2022..................................................................... 23
Notes to the financial statements for the year ended 31 March 2022...................................................................... 24
......................................................................................................................... 52
Structure, Governance and Management ....................................................................................................... 52
Managing Responsibly ..................................................................................................................................... 56
........................................................................................................... 61
Thank you ................................................................................................................................................................... 62
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strategic report, and the audited financial statements of the company limited by guarantee for the year ended 31 March 2022

Companies Act 2006, the Statement of Recommended Practice applicable to charities preparing their accounts in

Articles of Association

Companies Act 2006 and with regard to Charity Commission guidance on public benefit. Disclosures required in the Trust

contained within the appendix.

2

About Us

THE AWARD

-formal education and learning,

challenging young people to discover their potential and find their purpose, passion and place in the world.

Founded in 1956 by HRH the late Duke of Edinburgh, KG, KT it now operates in more than 130 countries and territories, helping to inspir

it is delivered, no two Awards are the same. Instead, each young person designs and creates their own bespoke programme.

Over the past 65 years more than 13 million Award journeys have started, involving more than 125 million hours of voluntary service and over 6.5 million Awards gained by young people allowing them to reach their potential and develop self-confidence and a sense of purpose.

THE FOUNDATION

more than 480 operators, ranging from National Award Operators to individual organisations. The Award is delivered to young people through an ecosystem of 19,591 units, such as schools, youth groups, custodial institutions and other operators.

for young people anywhere in the world and thereby through the development of their character to promote good

The Foundation does this by:

THE ASSOCIATION

family and is established by the consent of all the parties concerned, to encourage mutual cooperation, share responsibility for development and foster collective ownership in our brand. Its main body of constituents comprises the 471 operators licensed by the Foundation.

3

Our year

Summary

Young People: 2017 2021 Progression

Adults in the Award

Global reach of the Award

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4
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2021-22 Trustees Annual Report

This has been a remarkable year of recovery and resurgence.

the late Duke of Edinburgh. The moving and heartfelt tributes by so many Award holders, of how he had touched hievements it was his Award that was referred to time and time again as his greatest legacy.

Fund. Conceived to mark the centenary of Prince 10[th] June 2021 response has been quite remarkable. This is reflected by the number of new relationships and partnerships described elsewhere in this Report. In purely financial terms, an aggregate sum of funds pledged so far to leading National Operators over and above Business-Asectives has

short of £10m.

As countries relaxed the restrictions imposed by the Covid-19 pandemic, we have seen countless young people striving to complete their Award journey. In some countries, we have seen the strange anomaly of more young people achieving Awards than those starting. Our volunteer numbers have changed little which has helped considerably in supporting so many participants and new entrants. In fact, the whole way the Award family responded to the pandemic, their proactive help to their communities and the way that they adapted to the circumstances to continue their activities, has had a dramatic impact on the way people perceive the value and benefits of the International Award.

In this year, we recorded an extraordinary 990,000 active participants in the Award. That is an increase of 32% on the previous year. The number of young people starting their Award journey is up by 27% and equivalent to 1,300 every day. What makes these figures so remarkable is that not all our 134 countries and territories have been able to restart full delivery within the time period, meaning that in many cases those that have restarted have experienced a significant resurgence.

The International Award Foundation is also in a better place as the changes implemented following our healthy surplus in our finances. Much more important is the breadth and depth of our work supporting the members people.

Our Operating team (page 8) have been leading our efforts to maintain and develop key partnerships. In particular, our involvement in GYM (Global Youth Mobilisation) which is a partnership with the World Health Organisation, along with other global providers of non-formal education a through this and the efforts by young people engaged in delivering them is now being felt. The team also laid the foundations of partnerships which have since come to fruition with Cambridge Assessment, UNICEF and the Commonwealth all of which illustrate a growing appreciation of non-formal education and learning as well as the

Our Communicating team (page 9)

Celebration to showcase the Award in action, Spotlight Sessions to raise awareness of societal challenges facing young people, and an Award Celebration that linked Independent Award Centres and their Award recipients from

5

2021-

around the world. The team is also responsible for building our Global Alumni Network as well as our research and evaluation work. Through our partnership with Pw

global social value.

Our Resourcing team (page 10) continue to implement the recommendations from the Comprehensive Sustainability Review. A key element was successfully introducing a new service model with our national licence holders and an associated financial levy. They also look after our digital tools, although this year has seen the successful implementation of a new finance system which enables better integration with other support systems, such as, Salesforce. In terms of investing in our people across the Association, the team has now created a 3-tier programme with Herriot-Watt University to deliver relevant business management courses at certificate, diploma levels. The team is also responsible for all our fundraising as well as direct grant-giving, both of which are experiencing a good recovery and critical to not only extending the reach of the Award, but also ensuring it is accessible, especially for young people who may be at risk or marginalised.

The Financial Review (page 11) presents quite a complex picture, but crucially, we have actually increased the amount of income by just short of £3m over the previous year. The gift of Award House last year boosted our overall income, but is a long-

until we start to implement the associated grant scheme to boost participation.

Our Future is currently taking shape. Discussions around our future strategy will culminate at our Forum in Cluj, Romania, in October 2022. This was postponed from last year because the Association members wanted to meet in person. The response to The 100 campaign, the partnerships and the funds generated through it have given everyone renewed confidence about the future, the importance of non-formal education and learning as well as the instrumental role the International Award can play in the development of young people.

My fellow Trustees and I are hugely grateful to all our donors who have maintained their financial support over this period, both to the Foundation and to many of our National Award Operators. We also wish to thank our Operators for their understanding and excellent collaboration. We also want to thank all who work for the Foundation, this has been a far from easy period for all with a great many uncertainties, and we are immensely grateful to them for their dedication. They have enabled us to help young people discover the endless possibilities of the Award and that there is more in them than they think.

It is with the utmost sadness that we recently learnt of Her Majesty The good as well as the not so good times; she was the constant. Our Association encompasses Her Realms, Her Territories and Her Commonwealth as well as those with no direct affiliation, yet we are united in grief. More specifically, she had always supported P personally presented the UK Award with their Royal Charter in 2006 th anniversary and paid tribute remarkable impact the Award has on young people from all walks of life and circumstances. A rare and precious endorsement of our work with and for young people worldwide.

good as well as the

6

The Foundation and Association share the ambition that one day every eligible person aged 14 to 24 will have the opportunity to participate in the Award.

ally and giving them equal

Our immediate reason for being is that, daily, the Foundation, our network of Operators and the young people we serve can inspire, transform and empower individuals, communities and societies.

Delivering our ambition during 2021/22

Over the past year that need to inspire, transform and empower has only grown. As the world continues to recover ial isolation and lockdowns, new challenges have emerged, such as the war in Ukraine and the growing climate crisis.

Very few organisations have been immune to these global challenges and the Award has been no exception. 2020 saw a significant drop in participants internationally, with 25% less activity than in the previous year. This was mirrored across new entrant and completion numbers, which saw a 42% and 60% drop respectively. However as lockdowns eased this trend has started to reverse, with participant and new entrant numbers at 90% and 74% of pre-pandemic levels respectively. Whilst rising, completions will take longer to recover and currently sit at 52% of their 2019 levels.

However, these challenges have also helped more and more leaders recognise the benefits that nonformal education and learning can bring. In such volatile times, helping young people to unlock skills such as resilience, adaptability, problem solving and agency - all whilst encouraging physical and mental wellbeing and skill development - has never been more important.

The Award is operating in a very challenging time. Yet recognition for the importance of non-formal education and learning is quickly gaining momentum. And the possibilities for the Award to reach more young people, inspiring them to discover their infinite potential and be ready for the world have never been greater.

7

Encouraging and enabling the Award internationally

OPERATING

The Foundation oversees the delivery of the Award internationally, assists prospective and current Award Operators and organisations, and enables them to deliver the Award effectively and consistently. We help these organisations to develop and improve, especially in terms of access to the Award among at risk, disadvantaged and marginalised young people.

The Award is currently operating in more than 130 countries and territories through a network of licensed organisations, including:

As the world has continued to adjust to the challenges of the pandemic, we have worked to enable Operators to deliver a hybrid Award experience, utilising and enhancing digital tools and online platforms; sharing solutions and best practice and strengthening global cooperation.

Awareness of the value and importance of non-formal education and learning has continued to grow at pace and this has resulted in new opportunities to extend the Award in-country and internationally.

The Foundation has worked hard to ensure these challenges and opportunities could be met through a range of initiatives:

A focus on partnerships will continue to be crucial in the coming year, with further work planned with Global Youth Mobilization, the UNFPA, CHOGM and the Big 6, to name a few. We look forward to building upon our partnership with Cambridge Assessment International Education, opening new opportunities for Award delivery worldwide and further growing awareness and recognition of the important -formal education and learning framework can play in complementing and building upon a formal curriculum.

As we continue to grow our collaboration and advocacy work, we are proud to be developing a partnership with UNICEF (Stand by Me project), alongside Award operators in the Czech Republic, Romania and Slovakia. The project will see Award participants buddying with displaced young Ukrainians, offering them the opportunity to learn from

8

ENCOURAGING AND ENABLING THE AWARD INTERNATIONALLY (CONTINUED)

each other, build relationships and support their communities through voluntary service. The project will commence in the Autumn.

COMMUNICATING

The Foundation advocates for the importance of non-formal education and learning globally. We manage the Award brand and communications to ensure relevant, consistent messaging and material to promote the Award and its impact worldwide. Through this we drive awareness and support the global growth and development of the Award.

In April 2021, with great sadness, the Award family marked the passing of our Founder, HRH The Duke of Edinburgh. This resulted in a huge outpouring of memories and messages from around the world, which highlighted the exceptional legacy that Prince Philip left in the Award. This moment enabled the Foundation and our operators to drive new awareness and support for the Award in-country and globally. This was extended further with the launch of what would have been Prince Philip

This heightened interest has driven a range of new opportunities for growth, development and support of the Award worldwide.

To celebrate our Founder and drive greater growth and support through surrounding opportunities:

Looking to the year ahead, communications, research and advocacy will continue to play a crucial role in the work of the Foundation, particularly in support of a number of different projects and initiatives, such as Stand By Me,

-formal education and learning continues to grow at pace, driving awareness of the Award and its impact becomes increasingly important.

9

ENCOURAGING AND ENABLING THE AWARD INTERNATIONALLY (CONTINUED)

RESOURCING

The Foundation supports the Award across the world by generating and developing the human, financial and technical resources to meet and sustain our ambitions.

Over the past year, we have continued to adapt our activity to be responsive to the changing global environment and ensure that we are operating effectively and sustainably. At the same time, we have recognised the difficult giving environment within which most charities are operating. We strive to ensure that our supporters have a clear understanding of the immense value , particularly at times such as this.

During the year:

These areas of investment have continued to build upon the foundations for future growth which will benefit the Award both now and in the future. And as we move towards the end of 2022, we continue to work on a new five year strategy for the Association, ensuring

In the new financial year we will build upon our grant giving and fundraising activity. With more than £9.3 million is gaining momentum and we will continue to implement our comprehensive grant model and operating framework to ensure the funding can take the best of the Award globally and make it even better.

The fund will primarily make transformational grants to operators in countries where the scale of Award delivery can be dramatically increased, particularly amongst young people from at risk or marginalised backgrounds.

Further, we will continue to grow and develop our digital infrastructure, including the Online Record Book, Award Community and Learning Hub.

10

Financial Review

FINANCIAL HIGHLIGHTS

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2022 2021 Change
£000s £000s £000s
Income 6,037 7,889 (1,852)
Expenditure (3,908) (3,980) 72
Net Operating Income 2,129 3,909 (1,780)
Digital and social development expenditure (551) (397) (154)
Restructuring expenses - (341) 341
Net Income 1,578 3,171 (1,593)
Investment gains 407 1,057 (650)
Unrealised gains/(losses) on investment properties 186 (69) 255
Unrealised gains on fixed assets 11 - 11
Net Surplus 2,182 4,159 (1,977)
Reserves 13,378 11,196 2,182
Unrestricted 5,031 2,853 2,178
Unrestricted long term asset reserve 4,735 4,637 98
Restricted 361 492 (131)
Endowment 3,251 3,214 37
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INCOME

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Income
£5.0
£4.5
£4.0
£3.5
£3.0
£2.5
£2.0
£1.5
£1.0
£0.5
£0.0
Donations and Gift of Property Charitable Other trading Grants
legacies Activities activities
2022 2021
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Full year income was down on the previous year by £1,852,000. The prior year includes the gift of Award House totalling £4.7 million, excluding this gift from the prior year, income grew by £2,848,000.

Income from individual donations (excluding gift of Award House) grew by £2,628,000, this includes £2,456,000 raised for the Founders Fund. Operator fees increased by £247,000 reflecting a change in the participant fee structure for our

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FINANCIAL REVIEW (CONTINUED)

Independent Award Centres and a growth in training income. This is expected to further increase in future years as we introduce a new fee structure for our National Award Operators and we grow our Operating Partnerships.

There has been a fall in income from other trading activities due to not holding fundraising events including online auctions or receiving any commercial licence fee income in the year.

Grant income has remained relatively constant. Income from the UK Coronavirus Job Retention Scheme and other country Coronavirus grant schemes was replaced with performance related grants relating to the work for the Global Youth Mobilisation.

EXPENDITURE

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Expenditure
£5.0
£4.5
£4.0
Overhead
£3.5
£3.0
Direct Costs
£2.5
£2.0
£1.5 Restructuring Costs
£1.0
£0.5 Staff Costs
£0.0
----- End of picture text -----

Total expenditure fell by £259,000 during the year, reflecting continued tight cost control. We continue to benefit from lower staff costs following the implementation of our Comprehensive Sustainability Review in 2020.

The costs of raising funds of £797,000 (2021: £760,000) increased by £37,000 in the year, reflecting an increase in our activity with corporates and an increase in engagement with individual donors.

Core expenditure on Charitable Activities of £3,111,000 (2021: £3,218,000) was £107,000 lower than the previous year. Lower spend on Operating and Communicating activities reflect continued tight cost control in these areas. Higher grant expenditure for Special Projects and Global Youth Mobilisation Covid-19 recovery fund grants more than offset reductions to Resourcing Costs.

We spent a further £551,000 (2021: £740,000) on Charitable Activities development projects. Excluding restructure costs of £341,000 in the prior year, our development spend has increased by £152,000. Development spend in the prior year was kept to a minimum due to uncertainties relating to the global pandemic and a decrease in activity due to staff being furloughed.

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FINANCIAL REVIEW (CONTINUED)

INVESTMENT POLICY AND PERFORMANCE

protect and, over the long term, increase the value of the investment portfolio in real terms whilst, at the same time, generating fun

In April 2021 our portfolio with Barings Dynamic Asset Allocation Fund was closed, leaving our remaining portfolio invested with Ruffer LLP. This is held within a total return fund with a long-term objective to achieve an average growth of inflation plus 3%. In the year to 31 March 2022 the charity made gains of £407,000 (2021: gain of £1,057,000), the markets continued to recover throughout the year from the rapid downturn in March 2020, however, the markets became more turbulent in February 2022 due to the Russian invasion of Ukraine. The charity receives monthly updates on the fund s performance which is reviewed by the Finance, Audit and Property Committee. The Committee also reviews the investmen -term performance on an annual basis.

on 31 March 2022 was £4,979,000 (2021: £5,336,000), a decrease in the year of £357,000 (2021: £960,000 increase). During the year the charity disinvested a net £715,000 from the portfolio (2021: divestment of £42,000) to meet its cash flow needs and invest in development projects.

RESERVES AND RESERVES POLICY

On 31 March 2022 total reserves stood at £13,378,000 (2021: £11,196,000) of which £3,612,000 (2021: £3,706,000) were restricted funds or endowment funds. Unrestricted funds stood at £9,766,000 (2021: £7,490,000). Of these unrestricted funds, £5,154,000 (2021: £2,977,000) are designated to enable the Trustees to support development projects and grant making activities funds comprise general funds deficit of £(123,000) (2021: deficit of £124,000) and the long-term Asset fund of £4,735,000 (2021: £4,637,000).

FINANCIAL REVIEW (CONTINUED)

13

Financial Sustainability

Reserves and liquid resources

The Foundation started the year ending 31 March 2022 with reserves of £11.2 million (of which £3.7 million was held in restricted or endowment funds and a further £4.6 million held in the unrestricted long term asset reserve) and strong liquidity with cash and short-term investments of £6.3 million. The Foundation has ended the year with cash and shortterm investments of £8.0 million, an increase of £1.7 million on the previous year.

During the year ended 31 March 2021, the Foundation was gifted Award House. This freehold building has a value of over £4.7 million which is shown in the long-term asset reserve and could be used, if necessary, to provide further liquidity although at this stage there is no need and there are no plans to do so.

Financial forecasts

The Foundation has assessed its financial prospects over a five-year planning period. This assessment takes account of four-months of the current financial year. It also reflects, the new fee structure for National Award Operators; new operating partnership agreements; improvements in the fundraising environment, including return to face-to-face events; and successful Founder s 100 campaign, in the year under review. It takes account of the principal risks and uncertainties as set out in in the Structure Governance and Management statement on pages 52 to 61. Given continued general market uncertainties we have assessed outcomes from both a base case and alternative downside case.

The key inputs and assumptions for the base case include:

FINANCIAL REVIEW (CONTINUED)

14

We continue to support the International Award Association through International Special Projects Fund.

For the downside case, the key inputs and assumptions include:

The results from both base case and downside

over the next three years.

Going concern

The Trustees are required to confirm that it is appropriate for the Foundation to adopt the going concern principle in preparing its financial statements.

The Foundation made a sizeable surplus this year of nearly £2.2million, this follows a successful year in 2020/21 where w unrestricted funds at 31 March 2022, excluding the long term asset reserve were £5.0 million, comprising a general fund deficit of £0.1 million and a designated fund of £5.1 million.

The Trustees currently expect the results for the current year ending 31 March 2023 to show an overall significant surplus, including a general fund surplus in line with the plan to rebuild the general fund to its target level over a 5 year period.

To ensure that our income streams and expenditure plans are in line with our projections, we continually refine our internal financial monitoring and decision-making procedures. In addition to a high-level monthly income and expenditure report that is produced promptly after each month end, a rolling monthly latest expected outturn report, monthly reviews with budget holders, and quarterly financial and cash flow forecasts. These are regularly reviewed by Trustees.

15

commitment

The Trustees confirm that these financial statements have been produced in accordance with relevant legislation. Each Trustee confirms that:

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

pages 52 to 61

on Trustees have re-appointed

BDO LLP to act as auditors for year ended 31 March 2023.

Thank you

Thank you to all our supporters and staff.

We are sincerely grateful to all our donors for their tremendous support for our work and continued confidence in our efforts.

We are grateful to all those individuals and organisations who have provided pro bono assistance over the past year. The Trustees would also like to thank all staff for their continuing hard work, loyalty and support.

This report (including the Strategic Report) was approved by the Board of Trustees on 10 October 2022 and signed on their behalf by:

Andrew Smith Trustee 15 October 2022

Registered office: Award House, 7-11 St Matthew Street, London SW1P 2JT Company Number: 3666389

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Members of

International Award Foundation

Opinion on the financial statements

In our opinion, the financial statements

consolidated statement of financial activities, the consolidated and charity balance sheet, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so,

17

INTERNATIONAL AWARD FOUNDATION (CONTINUED)

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

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INTERNATIONAL AWARD FOUNDATION (CONTINUED)

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Audit Response to risks identified

19

INTERNATIONAL AWARD FOUNDATION (CONTINUED)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

https://www.frc.org.uk/auditorsresponsibilities.

Use of our report

permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the

Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London, UK

19 October 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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Consolidated statement of financial activities for the year ended 31 March 2022

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds Funds Funds Funds Funds Funds
2022 2022 2022 2022 2021 2021 2021 2021
Note £000 £000 £000 £000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 3 4,011 385 - 4,396 5,986 442 - 6,428
Charitable activities 4 1,426 208 - 1,634 1,341 39 - 1,380
Other trading activities 5 - - - - 74 - - 74
Investments 6 2 2 - 4 1 6 - 7
Other Income 3 - - 3 - - - -
Total Income and endowments 5,442 595 - 6,037 7,402 487 - 7,889
Expenditure on:
Raising funds 7 (777) (14) (6) (797) (717) (10) (33) (760)
Charitable activities
development projects		 7 (396) (155) - (551) (699) (41) - (740)
Charitable activities
core activities		 7 (2,459) (652) - (3,111) (2,719) (499) - (3,218)
Total expenditure 7 (3,632) (821) (6) (4,459) (4,135) (550) (33) (4,718)
Net operating income/(expenditure) 1,810 (226) (6) 1,578 3,267 (63) (33) 3,171
Net gains on investments 10 364 - 43 407 363 - 694 1,057
Net (expenditure)/income 2,174 (226) 37 1,985 3,630 (63) 661 4,228
Transfer between funds (30) 30 - - - - - -
Gains/(losses) on revaluation of 9 121 65 - 186 - (69) - (69)
investment properties
Gains on revaluation of fixed assets 8 11 - - 11 - - - -
Net movement in funds 2,276 (131) 37 2,182 3,630 (132) 661 4,159
Reconciliation of funds
Total funds brought forward 7,490 492 3,214 11,196 3,860 624 2,553 7,037
Total funds carried forward at 31 March 14 9,766 361 3,251 13,378 7,490 492 3,214 11,196

All the above results are derived from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities; therefore, a separate statement of recognised gains and losses has not been prepared. The £407,000 gain (2021: £1,057,000 gain) on investments comprises £291,000 realised gains and £116,000 unrealised gains (2021: realised losses of £136,000 and unrealised gains of £1,193,000). The results for the Charity are disclosed in Note 1 and on the balance sheet.

21

Consolidated and Charity balance sheets at 31 March 2022

Company number 3666389

Note
Fixed Assets
Tangible assets
8
Investment Properties
9
Investment Portfolio
10
Total fixed assets
Current Assets
Debtors
11
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due within one year
12
Net Current Assets
Total Net Assets
The Funds/(Deficit) of the Charity
Restricted Income Funds
14
Endowment Funds
14
Unrestricted Income Funds/(Deficit):
- General Funds
14
- Designated Funds
14
- Long term asset reserve
14
Total Unrestricted Income Funds
Total Charity Funds		 Group
Charity
Group
Charity
2022
£000
2022
£000
2021
£000
2021
£000
2,176
2,175
2,229
2,227
2,920
2,920
2,734
2,734
4,979
4,979
5,336
5,336
10,075
10,074
10,299
10,297
947
1,047
730
863
3,024
2,716
951
401
3,971
3,763
1,681
1,264
(668)
(535)
(784)
(680)
3,303
3,229
897
584
13,378
13,303
11,196
10,881
361
361
492
492
3,251
3,251
3,214
3,214
(123)
(198)
(124)
(329)
5,154
5,154
2,977
2,867
4,735
4,735
4,637
4,637
9,766
9,691
7,490
7,175
13,378
13,303
11,196
10,881

The Foundation has elected to take exemption under section 408 of the Companies Act 2006 not to present the charitable company statement of financial activities. The Foundation made a surplus during the year of £2,303,000 (2021: surplus of £3,642,000). General Funds for the Group include funds retained by subsidiary entities of £184,000 (2021: surplus of £205,000).

The financial statements set out on pages 21 to 51 were approved by the Trustees on and signed on their behalf by:

Andrew Smith, Trustee

15 October 2022

22

Consolidated cash flow statement for the year ended 31 March 2022

Cash flows from Operating Activities
Net cash used in operating activities
Cash flows from Investing Activities:
Dividends, interest, and rents from investments
Proceeds from sale of property, plant and equipment
Purchase of property, plant, and equipment
Purchase of investments
Proceeds from sale of investments
Net cash generated from Investing Activities
Change in cash and cash equivalents in the reporting year
Cash and cash equivalents at the beginning of the reporting year
Cash and cash equivalents at the end of the year
Net income for the reporting year (as per the SOFA)
Adjustments for:
Depreciation charges
Gains on investments
Investment managers fees
Dividends, interest and rents from investments
Profit on sale of fixed assets
Increase in debtors
(Decrease)/Increase in creditors
Donation of land and buildings
Donation of investment property
Net cash generated from/(used in) operating activities
Analysis of changes in net cash
Net cash at 1 April
Net cash inflow/(outflow)
Net Cash at 31 March		 Total
2022
£000
Total
2021
£000
1,351
(1,604)
4
7
3
-
-
(28)
(800)
(500)
1,515
542
722
21
2,073
(1,583)
951
2,534
3,024
951
1,985
4,228
65
54
(407)
(1,057)
49
55
(4)
(7)
(4)
-
(217)
(300)
(116)
71
-
(2,162)
-
(2,486)
1,351
(1,604)
951
2,534
2,073
(1,583)
3,024
951

The above cash and cash equivalents at the end of the year of £3,024,000 (2021: £951,000) includes £125,000 (2021: £22,000) due to National Award Operators, £8,000 (2021: £429

£298,000 (2021: £121,000) for The Beijing Intaward International Culture Development Company Limited.

23

Notes to the financial statements for the year ended 31 March 2022

1: BASIS OF PREPARATION AND CONSOLIDATION

(A) BASIS OF PREPARATION

The accounts have been prepared in accordance with the Companies Act 2006, the Charities Act 2011, FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102); Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (the SORP).

The Duke of Edinburgh s International Award Foundation meets the definition of a public benefit entity under FRS 102.

The accounts have been prepared under the historical cost convention as modified by revaluation of investments and investment properties, and land and buildings.

(B) CONSOLIDATION

The consolidated financial statements include the its subsidiaries. A subsidiary is an entity controlled by the Foundation. Control exists where the Foundation has the right to govern the operating and financial policies of that entity. These financial statements do not include the financial statements of National Award Operators or Independent Award Centres as these are independent of the charity.

The Foundations subsidiaries are:

Registered Name Country of
incorporation		 Principle activity Share class Year end
Intaward Limited UK HoldingCompany Ordinary100% 31 March
Beijing Intaward International
Culture Development
CompanyLimited		 China Carrying out the charitable activities of
the DoE International Award in China		 Ordinary 100% (owned
by Intaward Limited)		 31 December
International Award
Foundation(Canada)		 Canada Carrying out the charitable activities of
the DoE International Award		 - 31 March

No separate cash flow statement has been prepared for The permitted by the exemption in paragraph 1.12 of FRS 102.

Intaward Limited sold its holding in Beijing Intaward International Culture Development Company Limited on 21 September 2022.

(C) GOING CONCERN

The Trustees are required to confirm that it is appropriate for the Foundation to adopt the going concern principle in preparing its accounts.

The Foundation made a sizeable surplus this year of nearly £2.2million, this follows a successful year in 2020/21 where unrestricted funds at 31 March 2022, excluding the long term asset reserve were £5.0 million, comprising a general fund deficit of £0.1 million and a designated fund of £5.1 million.

24

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)

1: BASIS OF PREPARATION AND CONSOLIDATION (CONTINUED)

The Trustees currently expect the results for the current year ending 31 March 2023 to show an overall significant surplus, including a general fund surplus in line with the plan to rebuild the general fund to its target level over a 5 year period.

The general fund forms a buffer for short term shortfalls in income against the regular expenses of the Foundation. Its target range is between £2.2 and £3.5 million. The Trustees have set out a plan to re-build this fund over a five-year horizon.

To ensure that our income streams and expenditure plans are in line with our projections, we continue to develop our internal financial monitoring and decision-making procedures. These include a high-level monthly income and expenditure report that is produced promptly after each month end, a rolling monthly latest expected outturn report, monthly reviews with budget holders, and quarterly financial and cash flow forecasts that are used as a basis for both monitoring performance and reviewing financial plans. These are regularly reviewed by the Trustees.

As such the Trustees of the Foundation continue to adopt the going concern basis of accounting in preparing the annual financial statements.

(D) FOREIGN EXCHANGE

Functional and presentation currency The consolidated financial statements are presented in sterling, which is The red using the currency of the primary economic environment in which the entity operates (the functional currency).

Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Financial Activities.

Group subsidiaries The results and financial position of Group subsidiaries whose functional currency is different from the presentation currency are translated into the presentation currency as follows:

(E) KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

(i) Donations for expenditure by specific NAOs are treated as restricted income, where their onward payment to NAOs is required to be phased over future periods. Where the Foundation acts as agent, donations received for immediate onward payment to NAOs, it is not recognised as income.

(ii) Estimates over the valuation of donations in kind of goods or services. The basis for the valuation of donations in kind is detailed in note 2(b) below.

25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)

1: BASIS OF PREPARATION AND CONSOLIDATION (CONTINUED)

(iii) Land and Buildings and Freehold Investment property - are carried at their revalued amounts at the balance sheet date. These values are determined by the Trustees as the estimated fair value of the properties using available market information, including the recent realised sale value of other properties of a similar size, condition, and location. Where the related asset is significant to the Foundation this value is determined for the Trustees by an external valuer.

2: ACCOUNTING POLICIES

(A) FUND ACCOUNTING

Funds held by the charity are either:

Unrestricted general funds these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Unrestricted designated funds these are funds set aside at the discretion of the Trustees for specific purposes.

Unrestricted long term asset funds these are funds set aside which match the values of long-term assets (mainly property).

Restricted funds these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Details are set out in Note 14.

Endowment funds - These are restricted funds set aside to produce income which is used by the Foundation to make Grant awards to National Operators.

(B) INCOME AND ENDOWMENTS

Income is recognised when the Foundation is entitled to the income, any performance conditions attached to the income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Donations and legacies include World Fellowship donations, gifts, grants receivable and donations of facilities and services in kind. The specific bases used for recognition of such income are as follows:

Income from charitable activities and other trading income is accounted for when it can be reliably measured, there is entitlement and receipt is probable. Income from charitable activities includes licence fee income, Online Record Book income, participant fee income, delegate fees and income from training events. Other trading income includes commercial fee income, fundraising event and auction income. The income from training and fundraising events is shown

26

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 2: ACCOUNTING POLICIES (CONTINUED)

gross of any associated expenditure. Income received in advance of an event or before the point at which entitlement passes, is deferred until entitlement to that income has arisen, at which time it is credited to the SOFA.

(C) EXPENDITURE

Expenditure is recognised when it is incurred and is reported gross of related income on the following bases:

(D) TANGIBLE AND INTANGIBLE ASSETS AND DEPRECIATION

All tangible fixed assets costing more than £1,000 are capitalised initially at cost or where gifted to the Foundation at valuation at the time of acquisition. Tangible fixed assets costing under £1,000 are expensed in the year the expense is incurred.

Freehold Land and Buildings

Following the acquisition of Award House which is accounted for as a mixed-use property as part investment and part tangible asset, the Foundation has elected to re-value its Freehold Land and Buildings and carry them at fair value at the valuation date less any subsequent accumulated depreciation and accumulated impairment losses so that the valuation basis is consistent for all parts of that property. Land and buildings are valued by an external valuer at least every three years.

Computer hardware and infrastructure

Computer software, including development of our digital tools is expensed and is not recognised as an intangible asset.

Depreciation of fixed assets is charged on a straight-line basis, commencing in the month of purchase, on cost or valuation as follows:

(E) INVESTMENT PROPERTIES

Investment properties are those which are not held for social benefit and where a reliable fair value is available. Investment properties are initially recognised at cost which includes purchase cost and any attributable expenditure. Investment properties are valued and subsequently measured at fair value with any surplus/ (deficit) recognised in the SOFA. In accordance with FRS 102, no depreciation is provided in respect of the investment property.

27

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 2: ACCOUNTING POLICIES (CONTINUED)

(F) INVESTMENT PORTFOLIO

Listed investments are held at bid value at the balance sheet date and the SOFA includes the realised and unrealised investment gains/losses for the year. Realised gains and losses on investments, calculated as the difference between the sales proceeds and their fair value at the start of the year, or subsequent cost, are credited or charged to the SOFA in the year of gain or loss. Unrealised gains and losses representing the movement in fair values during the year are credited or charged to the SOFA in the year of the gain or loss.

(G) SOCIAL INVESTMENTS

Social investments are carried at cost less any provision for impairment. Such investments are not able to be carried at fair value as there is no open market for such investments. All social investments are subject to review, and any impairment is charged to the Statement of Financial Activities. All social investments were written off in the prior year.

(H) PENSION COSTS

The Foundation contributes to The Duke of Edinburgh International Award Foundation Group Personal Pension Plan. This is a defined contribution pension scheme operated by Scottish Widows. The contributions are recognised as they fall due. Current service costs are included within the SOFA within charitable activities core activities (unrestricted funds).

(I) OPERATING LEASES

Rental paid under operating leases is charged to the SOFA on a straight-line basis.

3: INCOME FROM DONATIONS

(A) DONATIONS AND LEGACIES

Donations - Individuals and Companies
Donations
Trusts and Foundations
Donations in kind (note 3b)		 Unrestricted
2022
Restricted
2022
Total
2022
Unrestricted
2021
Restricted
2021
Total
2021
£000
£000
£000
£000
£000
£000
3,592
322
3,914
1,183
322
1,505
399
63
462
61
120
181
20
-
20
4,742
-
4,742
4,011
385
4,396
5,986
442
6,428

Donations Individuals and Companies unrestricted funds includes £607,121 and £48,720 in relation to The Duke of Limited respectively (2021: £361,757 and £54,562). Donations Individuals and Companies restricted funds includes £nil 1: £32,993). Donations Trusts and

28

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 3: INCOME FROM DONATIONS (CONTINUED)

(B) DONATIONS AND LEGACIES (CONTINUED)

Foundations restricted funds includes £58,771 (Canada) (2021: £2,493).

During the year, £230,590 (2021 - £233,425) was received on behalf of National Award Operators, this is excluded from the above donation income as this is passed straight through to the related entity when received.

(B) DONATIONS IN KIND

Donations in kind received during the year are estimated to be valued as follows:

Gift of property
Office accommodation
Legal, advisory services and professional fees
Travel, accommodation, other
Events and donor support costs		 2022
£000
2021
£000
-
4,660
-
35
4
3
-
-
16
44
20
4,742

All income from Donations in Kind in 2022 and 2021 were unrestricted.

29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 4: INCOME FROM CHARITABLE ACTIVITIES

Operator licence
National Award Operator Levy Fee
Online Record Book
Independent
Award Centres
Training income
Performance related grant/other
income
Government Grant
Furlough Scheme
Other Grant Income		 Unrestricted
2022
Restricted
2022
Total
2022
Unrestricted
2021
Restricted
2021
Total
2021
£000
£000
£000
£000
£000
£000
459
-
459
471
-
471
77
-
77
156
-
156
758
-
758
441
-
441
116
-
116
90
5
95
-
208
208
-
34
34
16
-
16
142
-
142
-
-
-
41
-
41
1,426
208
1,634
1,341
39
1,380

Operator licence includes £136,612 (2021: £161,875), Online Record Book Independent Award Centres includes £191,361 (2021: £41,251) and Training income includes £48,616 (2021: £31,774) in relation to Beijing Intaward International Culture Development Company Limited. These are unrestricted funds.

5: INCOME FROM OTHER TRADING ACTIVITIES

Fundraising Events
Fundraising Auctions
Jewellery Sales
Commercial Fee Income		 2022
£000
2021
£000
-
-
-
47
-
-
-
27
-
74

All Income from other trading activities in 2021 was unrestricted.

30

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 6: INVESTMENT INCOME

Investment income arises from:
Interest on other cash balances
Investment property		 Unrestricted
2022
Restricted
2022
Total
2022
Unrestricted
2021
Restricted
2021
Total
2021
£000
£000
£000
£000
£000
£000
1
-
1
1
-
1
1
2
3
-
6
6
2
2
4
1
6
7

7: EXPENDITURE

(A) EXPENDITURE ON CHARITABLE ACTIVITIES

----- Start of picture text -----
Directly charged Support Costs Total
2022 2022 2022
£000 £000 £000
Raising Funds 588 209 797
COSTS OF CHARITABLE ACTIVITIES
Development projects
Alumni 79 - 79
Information Management and Digital Development 283 - 283
Social Value 105 - 105
Supporting Adults in the Award 84 - 84
551 - 551
Core activities
Operating 1,226 547 1,773
Communicating 268 175 443
Resourcing 805 90 895
2,299 812 3,111
Total resources expended 3,438 1,021 4,459
----- End of picture text -----

31

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 7: EXPENDITURE (CONTINUED)

(A) EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED)

----- Start of picture text -----
Directly charged Support Costs Total
2021 2021 2021
£000 £000 £000
Raising Funds 484 276 760
COSTS OF CHARITABLE ACTIVITIES
Development projects
Alumni 73 - 73
Information Management and Digital Development 237 - 237
Social Value 67 - 67
Supporting Adults in the Award 22 - 22
Restructuring 341 - 341
740 - 740
Core activities
Operating 1,292 604 1,896
Communicating 312 160 472
Resourcing 697 153 850
2,301 917 3,218
Total resources expended 3,525 1,193 4,718
Restructuring costs in 2021 comprise staff severance costs of £323,000, and legal fees and office closure costs of
£18,000.
----- End of picture text -----

(B) SUPPORT COSTS

Communications
Finance and Legal
General Management
Governance
Human Resources
Information Technology Costs
Office Costs
Property Costs
Total		 Raising Funds
2022
£000
Operating
2022
£000
Communicating
2022
£000
Resourcing
2022
£000
Total
2022
£000
2
6
2
1
11
86
226
72
37
421
21
56
18
9
104
14
37
12
6
69
14
35
11
6
66
37
95
30
16
178
15
39
13
6
73
20
53
17
9
99
209
547
175
90
1,021

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 7: EXPENDITURE (CONTINUED)

(B) SUPPORT COSTS (CONTINUED)

Communications
Finance and Legal
General Management
Governance
Human Resources
Information Technology Costs
Office Costs
Property Costs
Total		 Raising Funds
2021
£000
Operating
2021
£000
Communicating
2021
£000
Resourcing
2021
£000
Total
2021
£000
2
7
2
1
12
134
191
43
42
410
20
58
17
11
106
18
52
15
10
95
11
36
9
10
66
48
137
39
55
279
8
23
7
5
43
35
100
28
19
182
276
604
160
153
1,193

Charitable activities development projects, Supporting Adults in the Award is the cost of designing, piloting and evaluating a range of training projects and supporting digital platform; Alumni is the cost of designing and launching of the Global Alumni Network and its digital platform; Information Management and Digital development is the cost of development of the Online Record Book and digital platforms; Social Value is the cost of the research work measuring the social value of the Award. These activities have all been funded by funds that the Trustees designated as set out in note 14.

Staff costs included in the various channels of expenditure comprise those charged directly to raising funds and charitable activities and some allocated centrally on the basis of staff time. Overhead costs not directly charged to a channel are allocated using the same staff time proportions.

Restricted expenditure of £nil (2021: £5,000) has been directly charged to development projects Supporting Adults in the Award. Restricted expenditure of £17,000 (2021: £17,000) has been directly charged to development projects Social Value. Restricted expenditure of £138,000 (2021: £19,000) has been directly charged to development projects Information Management and Digital Development.

Restricted expenditure of £505,000 (2021: £389,000) has been directly charged to Charitable activities core activities resourcing. Restricted expenditure of £142,000 (2021: £34,000) has been directly charged to Charitable activities core activities operating. Restricted expenditure of £5,000 (2021: £79,000) has been directly charged to Charitable activities core activities communicating. Restricted expenditure of £14,000 (2021: £7,000) and restricted endowment expenditure of £6,000 (2021: £33,000) have been directly charged to Raising Funds. All other expenditure is unrestricted.

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 7: EXPENDITURE (CONTINUED)

(C) NET INCOME BEFORE INVESTMENT GAINS IS STATED AFTER CHARGING:

2022 2021
£000 £000
57 62
5 4
for other services:
Tax services 3 3
Depreciation 65 54
Operating leases - 19
Foreign exchange losses/(gains) 13 5

(D) STAFF COSTS

Wages and salaries
Social security costs
Pension costs
Other staff costs		 2022
£000
2021
£000
1,879
2,296
240
241
136
134
405
306
2,660
2,977

The above table includes staff severance costs incurred in FY2020/21 resulting from the restructuring of £323,000.

(E) STAFF NUMBERS

Generating funds
Charitable activities
Average monthly full-time equivalent number of staff in the year		 2022
Number
2021
Number
8
8
36
38
44
46

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 7: EXPENDITURE (CONTINUED)

(F) STAFF WHOSE EMOLUMENTS (EXCLUDING PENSION CONTRIBUTIONS) WERE IN EXCESS OF £60,000

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£130,001 - £140,000
Pension contributions in respect of the above members of staff		 2022
Number
2021
Number
8
5
-
1
2
3
1
1
1
1
12
11
2022
£000
2021
£000
57
62

During the year the senior leadership team consisted of the Secretary General, the Finance Director (retired 31 March 2022) and the Deputy Secretary General. Their combined emoluments for the year were £341,000 (2021: £337,000), including pension payments of £26,000 (2021: £26,000). The senior leadership team have the same health insurance terms and bonus scheme terms as all other UK staff. The pension rights for the Finance Director and Deputy Secretary General are the same as all other UK staff whereas the Secretary General has enhanced pension rights where the Foundation has committed to higher levels of pension contributions.

(G) EX-GRATIA PAYMENTS

Compensation of £3,000 (2021: £323,000) was paid to one (2021: nine) employees for loss of office during the year. The payment comprised of between one and two .

35

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 7: EXPENDITURE (CONTINUED)

(H) GRANTS EXPENDITURE

Grants expenditure of £465,000 (2021: £340,000) has been charged to restricted charitable activities operating activities resourcing. The Foundation made 42 (2021: 21) grants, with a maximum value of £51,000 (2021: £51,000).

The following individual Grants were made in the year:

----- Start of picture text -----
2022 2021
Grants to Grants to
Institutions Institutions
Bahamas Building Experiences Together - 10
Barbados Around the Corner - 2
Bulgaria The Award in BG V2 23 23
Bulgaria The Award in Business 6 10
Cameroon Alternative pathways - 10
Cameroon Global Youth Mobilization Covid-19 recovery fund 8 -
Canada Francophone Expansion 20 40
Czech Republic Regions in Motion - 14
Czech Republic - #Worldready Together 12 -
Czech Republic Global Youth Mobilization Covid-19 recovery fund 4 -
Dominica R.I.S.E 5 -
Finland Accessible Award 8 -
Germany The Award at high-risk schools 25 25
Germany Starke Teens NRW 15 -
Ghana Gaining grounds 15 15
Ghana Global Youth Mobilization Covid-19 recovery fund 7 -
Ghana Going Digital 10 -
Guinée - Le Mérite dans les Centres d'Accueil et les Orphelinats 6 -
Hong Kong - Global Youth Mobilization Covid-19 recovery fund 6 -
India - Global Youth Mobilization Covid-19 recovery fund 2 -
Israel Youth Award Year of Volunteer - 15
Israel Global Youth Mobilization Covid-19 recovery fund 5 -
Indonesia - #WorldReady for All 6 -
Jordan Project of Hope - 24
Kenya Compass Project 17 9
Kenya - Global Youth Mobilization Covid-19 recovery fund 11 -
Malta Extending the Award in North Malta and Gozo 1 4
Mauritius ORB to all - 3
Nepal Providing access and empowering youth living in homes 13 -
Nepal World fellowship funds Development of the Award - 11
Nepal - Global Youth Mobilization Covid-19 recovery fund 4 -
Netherlands Growing the Award in the Netherlands 51 51
Netherlands - Global Youth Mobilization Covid-19 recovery fund 5 -
Netherlands Award MDT Project 10 -
Nigeria World Fellowship funds Development of the Award - 5
----- End of picture text -----

36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 7: EXPENDITURE (CONTINUED)

(H) GRANTS EXPENDITURE (CONTINUED)

Nigeria - Global Youth Mobilization Covid-19 recovery fund
Nigeria - Promotion of Reformation and Reduction of Re-offending
Romania
Extending in Romania
Romania
Romania Beyond Borders
Slovakia
Leaders of tomorrow
Slovakia
Global Youth Mobilization Covid-19 recovery fund
Slovenia
Unlocking barriers to the growth of the Award
Slovenia
Global Youth Mobilization Covid-19 recovery fund
Slovenia
MEPI Career Academy
South Africa
Youth award leaders
Trinidad & Tobago - Global Youth Mobilization Covid-19 recovery fund
Togo
School Bank: Project for Developing Entrepreneurial Skills
UK
The London SEND project
Uganda - Global Youth Mobilization Covid-19 recovery fund
Uganda
Online Delivery enhancement
USA
Discover their Infinite Potential
Zambia
Leaving no one behind
Total		 5
-
5
-
33
29
11
-
-
12
4
-
17
18
7
-
8
-
16
-
6
-
10
-
8
-
6
-
10
-
14
-
10
10
465
340

37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 8: TANGIBLE ASSETS

(A) GROUP

Cost at 1 April 2021
Additions
Disposals
Revaluation
Cost at 31 March 2022
Accumulated depreciation at 1 April
2021
Depreciation charge
Depreciation on disposal
Accumulated depreciation at 31
March 2022
Net book value at 31 March 2022
Net book value at 31 March 2021		 Fixtures,
fittings &
furniture
£000
Computer
systems,
software &
infrastructure
£000
Motor
vehicles
£000
Freehold
Land and
Buildings
£000
Total
£000
295
60
56
2,162
2,573
1
-
-
-
1
(4)
-
-
-
(4)
-
-
-
11
11
292
60
56
2,173
2,581
(228)
(38)
(56)
(22)
(344)
(21)
(11)
-
(33)
(65)
4
-
-
-
4
(245)
(49)
(56)
(55)
(405)
47
11
-
2,118
2,176
67
22
-
2,140
2,229

(B) CHARITY

Cost at 1 April 2021
Additions
Disposals
Revaluation
Cost at 31 March 2022
Accumulated depreciation at 1 April
2021
Depreciation charge
Depreciation on disposal
Accumulated depreciation at 31
March 2022
Net book value at 31 March 2022
Net book value at 31 March 2021		 Fixtures,
fittings &
furniture
£000
Computer
systems,
software &
infrastructure
£000
Motor
vehicles
£000
Freehold
Land and
Buildings
£000
Total
£000
295
56
56
2,162
2,569
1
-
-
-
1
(4)
-
-
-
(4)
-
-
-
11
11
292
56
56
2,173
2,577
(228)
(36)
(56)
(22)
(342)
(21)
(10)
-
(33)
(64)
4
-
-
-
4
(245)
(46)
(56)
(55)
(402)
47
10
-
2,118
2,175
67
20
-
2,140
2,227

38

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 9: INVESTMENT PROPERTY

Fair value at 1 April
Acquired during year
Fair value adjustment
Fair value at 31 March		 Group &
Charity
2022
£000
Group &
Charity
2021
£000
2,734
317
-
2,486
186
(69)
2,920
2,734

In the prior year the Foundation was gifted the freehold interest in its UK Offices. These offices are partially occupied by the Foundation and partly held for lease to third parties. The fair value of part held for lease is included above under acquired during the year. The Foundation also holds a donated investment property in Portugal. Small amounts of rent and related expenditure are generated by it each year.

10: INVESTMENTS

(A) INVESTMENT PORTFOLIO

Investment portfolio at 1 April
Additions at cost
Drawdowns from Portfolio
Net investment gains
Investment Manager Fees
Cash held with Investment Managers
Market value of holdings at 31 March		 Group &
Charity
2022
£000
Group &
Charity
2021
£000
5,336
4,376
800
500
(1,515)
(542)
407
1,057
(49)
(55)
-
-
4,979
5,336
Barings Dynamic Asset Allocation Fund
Ruffer Absolute Return Fund
Investment portfolio at 31 March		 Group &
Charity
2022
£000
Group &
Charity
2021
£000
-
650
4,979
4,686
4,979
5,336

39

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 10: INVESTMENTS (CONTINUED)

The drawdowns from the portfolio reflect the management of short-term cash outflows. The original cost of these investments was £1,022,000 (2021: £3,771,000).

During the year the Foundation had investment gains of £407,000 (2021: gains of £1,057,000). These have been allocated to the development fund and restricted endowment fund in accordance with the investment balances held in those funds calculated on a monthly basis. During the year the Foundation drew down investments to fund its working capital consumption, impacting the Development Fund. Realised gains arising in the year of £291,000 (2021: losses of £136,000) relate wholly to this fund.

The Barings Dynamic Asset Allocation Fund was closed by the Fund Manager in April 2021.

(B) SUBSIDIARY UNDERTAKINGS

Registered Name Country of
incorporation		 Principle activity Share class Year end
Intaward Limited UK HoldingCompany Ordinary100% 31 March
Beijing Intaward International
Culture Development Company
Limited		 China Carrying out the charitable activities
of the DoE International Award in
China.		 Ordinary 100%
(owned by
Intaward
Limited)		 31 December
International Award
Foundation(Canada)		 Canada Carrying out the charitable activities
of the DoE International Award		 - 31 March

is consolidated in these accounts as the Foundation is able to exercise significant influence and control over it, with at least 50% of the directors also being Trustees of the Foundation.

Intaward Limited sold its holding in Beijing Intaward International Culture Development Company Limited on 21 September 2022.

40

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 10: INVESTMENTS (CONTINUED)

(C) FINANCIAL RESULTS OF SUBSIDIARIES

nvestment in:
Cost at 1 April 2021
Additions
mpairment
Cost at 31 March 2022
At 31 March 2022
Assets
Liabilities
Reserves
2021-22
ncome
Expenditure
Net (deficit)/surplus
At 31 March 2021
Assets
Liabilities
Reserves
2020-21
ncome
Expenditure
Net (deficit)/surplus		 Intaward
Limited
Beijing Intaward
International Culture
Development Company
Limited
International Award
Foundation (Canada)
£
£
£
2
-
-
-
-
-
-
-
-
2
-
-
Intaward
Limited
Beijing Intaward
International Culture
Development Company
Limited
The Duke of
International Award
Foundation (Canada)
£000s
£000s
£000s
-
322
8
(21)
(121)
(4)
(21)
201
4
-
532
698
(8)
(275)
(1,074)
(8)
257
(376)
-
141
430
(123)
(303)
(50)
(123)
(162)
380
-
273
424
(118)
(248)
(35)
(118)
25
389

The Trustees have assessed the current performance of trading subsidiary Beijing Intaward International Culture Development Company Limited, and in light of new policies and regulations published by The eld of education and foreign ownership of companies operating in China, have decided to impair the value of their investment.

41

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 11: DEBTORS

Trade debtors
Other debtors
Accrued income
Prepayments
Amounts due from Subsidiary		 Group
2022
£000
Charity
2022
£000
Group
2021
£000
Charity
2021
£000
227
207
201
187
23
23
25
25
534
534
291
291
163
160
213
209
-
123
-
151
947
1,047
730
863

12: CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
Accruals		 Group
2022
£000
Charity
2022
£000
Group
2021
£000
Charity
2021
£000
69
66
131
131
403
282
411
320
196
187
242
229
668
535
784
680

13: TAXATION

The tax charge for ordinary activities is £nil (2021: £nil). The charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in the furtherance of the char

42

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS

(A) MOVEMENT

Year ended 31 March 2022
Balance at 31 March 2021
Income
Expenditure
Unrealised gains on investments
Realised gains on investments
Revaluation of Investment
Property
Revaluation of Fixed assets
Transfer between funds
Balance at 31 March 2022
Year ended 31 March 2021
Balance at 31 March 2020
Income
Expenditure
Unrealised gains on investments
Realised losses on investments
Revaluation of Investment
Property
Balance at 31 March 2021		 General
Funds
Development
Funds
Long term
asset fund
Total
Unrestricted
Funds
Restricted
Income
Funds
Endowment
Funds
Total
Funds
£000
£000
£000
£000
£000
£000
£000
(124)
2,977
4,637
7,490
492
3,214
11,196
2,981
2,461
-
5,442
595
-
6,037
(2,980)
(618)
(34)
(3,632)
(821)
(6)
(4,459)
-
73
-
73
-
43
116
-
291
-
291
-
291
-
-
121
121
65
-
186
-
-
11
11
-
-
11
-
(30)
-
(30)
30
-
-
(123)
5,154
4,735
9,766
361
3,251
13,378
General
Funds
Development
Funds
Long term
asset fund
Total
Unrestricted
Funds
Restricted
Income
Funds
Endowment
Funds
Total
Funds
£000
£000
£000
£000
£000
£000
£000
524
3,336
-
3,860
624
2,553
7,037
2,742
-
4,660
7,402
487
-
7,889
(3,390)
(722)
(23)
(4,135)
(550)
(33)
(4,718)
-
499
-
499
-
694
1,193
-
(136)
-
(136)
-
-
(136)
-
-
-
-
(69)
-
(69)
(124)
2,977
4,637
7,490
492
3,214
11,196

General Funds for the Group include funds retained by subsidiary entities of £184,000 (2021: £205,000).

43

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(B) NET ASSETS

Year ended 31 March 2022
Tangible assets
Investment Property
Investment portfolio
Net current assets
Net assets at 31 March 2022		 General
Funds
Development
Funds
Long term
asset fund
Total
Unrestricted
Funds
Restricted
Income
Funds
Endowment
Funds
Total
Funds
£000
£000
£000
£000
£000
£000
£000
49
-
2,127
2,176
-
-
2,176
-
312
2,608
2,920
-
-
2,920
-
1,728
-
1,728
-
3,251
4,979
(172)
3,114
-
2,942
361
-
3,303
(123)
5,154
4,735
9,766
361
3,251
13,378
Year ended 31 March 2021
Tangible assets
Investment Property
Investment portfolio
Net current assets
Net assets at 31 March 2021		 General
Funds
Development
Funds
Long term
asset fund
Total
Unrestricted
Funds
Restricted
Income
Funds
Endowment
Funds
Total
Funds
£000
£000
£000
£000
£000
£000
£000
78
-
2,151
2,229
-
-
2,229
-
-
2,486
2,486
248
-
2,734
-
2,122
-
2,122
-
3,214
5,336
(202)
855
-
653
244
-
897
(124)
2,977
4,637
7,490
492
3,214
11,196

44

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(C) DESIGNATED FUNDS

Designated funds are funds set aside by the Trustees to provide support for National Award Operators, Independent Award Centres and specific Foundation development projects. At 31 March 2022 these amounted to £5,154,000 (2021: £2,977,000). The principal designated funds are:

7,000). The principal designated funds are:
NAME OF FUND PURPOSE EXPECTED TIMING OF
EXPENDITURE
Support Funds A number of small funds to support National Award Fully expended during
Operators development and global Award projects. 2020/21
Global Campaign To fund a global awareness of the Award campaign, Fully expended during
working in partnership with Award Operators worldwide. 2020/21
Supporting Adults A programme to develop and improve our support for To be expended by
in the Award Award Operators, volunteers and staff. 2022/23
Digital Online Record Book developments to provide long-term To be expended by
Development improvements with the objective that the Association 2022/23
achieves 80% adoption of this digital platform.
Alumni Launch of a Global Alumni Network and its digital To be expended by
platform - promoting and protecting the Award brand. 2022/23
Social Value Roll-out of social value research to NAOs, measuring the To be expended from
social value of the Award and capacity building within the 2021/22
Association for on-going social value analysis.
Development Fund Funds to deliver initiatives approved by Trustees to Medium to long term
improve the support and services that it provides to future development
members of the International Award Association. projects
Specific campaign set up to commemorate our Founder. Medium to long term
The campaign was set up with the expectation that it projects
would generate significant funds. It is the intention of the
Trustees that these funds will be primarily used to fund
large transformational grants to National Award
Operators.

45

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(C) DESIGNATED FUNDS (CONTINUED)

Movements on designated funds in the year were:

Year ended 31 March 2022
Supporting Adults in the Award
Digital Development
Alumni
Social Value
Development Fund
Founders Fund
Total
Year ended 31 March 2021
Support Funds
Global Campaign
Supporting Adults in the
Award
Digital Development
Alumni
Social Value
Restructure
Development Fund
Total		 Year ended 31 March 2022
Supporting Adults in the Award
Digital Development
Alumni
Social Value
Development Fund
Founders Fund
Total
Year ended 31 March 2021
Support Funds
Global Campaign
Supporting Adults in the
Award
Digital Development
Alumni
Social Value
Restructure
Development Fund
Total		 1 April
2021
£000
Income
£000
Expenditure
£000
Transfer
of funds
£000
Investment
Gains
£000
31 March
2022
£000
11
5
(84)
175
-
107
-
-
(145)
290
-
145
116
-
(79)
6
-
43
38
-
(88)
158
-
108
2,812
-
(44)
(629)
364
2,503
-
2,456
(178)
(30)
-
2,248
2,977
2,461
(618)
(30)
364
5,154
1 April
2020
£000
Income
£000
Expenditure
£000
Transfer
of funds
£000
Investment
Gains
£000
31 March
2021
£000
14
-
-
(14)
-
-
26
-
-
(26)
-
-
28
-
(17)
-
-
11
42
-
(218)
176
-
-
189
-
(73)
-
-
116
88
-
(50)
-
-
38
-
-
(341)
341
-
-
2,949
-
(23)
(477)
363
2,812
3,336
-
(722)
-
363
2,977

46

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(D) RESTRICTED FUNDS

Amounts received from donors that have restrictions placed on them are held as restricted funds. Funds are primarily restricted by geographical area or a particular purpose. The Foundation held 19 restricted funds at the end of the year (2021: 19 funds). The principal restricted funds are:

Region/Country Specific Funds Monies held on trust to support a National Award Operator in a specific country and/or the development of the Award in a specific country or region. Kenya Compass Project A donation to support 20 schools within Kenya to enable participants to complete the Award using the online record book. Creating Centres of Excellence Project A donation to support established Award Centres within Kenya to enable participants to complete the Award using the online record book. Afrika Tikkun A donation to support the Empowerment in South Africa, helping to engage young people in disadvantaged communities. This will be delivered through the nonprofit organisation, Afrika Tikkun. Benelux Fund To support the development of the Award in the Benelux countries. Tanaka Funds To support National Award Operators in specific countries that are to be agreed with the donor. Digital Development Global Activity Fund A donation to support our global activity including research, alumni, advocacy and digital activity. All of which strengthen the Award in Africa. Special Projects Fund International Special Projects delivered by National Award Operators. These are approved by Trustees to further develop the access, reach and impact of the Award. The Trustees have agreed to underwrite the expenditure on this fund until such a stage that Special Project Endowment Funds become available. WHO/Global Youth Mobilisation Fund of the project team and to grant fund to National Award Operators for the World Health Organisat

47

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(D) RESTRICTED FUNDS (CONTINUED)

Movements on restricted funds in the year were:

Year ended 31 March 2022
Region/Country Specific Funds
Nigeria
Anglo American Brazil
Other Region/Country Restricted
Kenya Compass Project
Creating Centres of Excellence Project
Afrika Tikkun
nternational Special Projects
Benelux Fund
Tanaka Fund
Other Restricted
Digital Development
Global Activity Fund
WHO/Global Youth Mobilisation Fund
Total		 1 April
2021
£000
Income
£000
Expenditure
£000
Investment
losses
£000
Transfer
of funds
£000
31 March
2022
£000
31
54
-
-
-
85
93
-
-
-
-
93
46
-
-
-
-
46
78
25
(21)
-
-
82
-
19
(6)
-
-
13
-
68
-
-
-
68
48
121
(345)
65
-
(111)
51
-
(51)
-
-
-
51
-
(10)
-
-
41
(30)
-
-
-
30
-
43
16
(17)
-
42
81
59
(138)
-
-
2
-
25
(25)
-
-
-
-
208
(208)
-
-
-
492
595
(821)
65
30
361

48

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(D) RESTRICTED FUNDS (CONTINUED)

Year ended 31 March 2021
Region/Country Specific Funds
Nigeria
Anglo American Brazil
Other Region/Country Restricted
Kenya Compass Project
nternational Special Projects
Benelux Fund
Tanaka
Other Restricted
Digital Development
WHO Fund
Total		 1 April
2020
£000
Income
£000
Expenditure
£000
Investment
losses
£000
Transfer
of funds
£000
31 March
2021
£000
12
28
(9)
-
-
31
93
-
-
-
-
93
57
-
(11)
-
-
46
88
-
(10)
-
-
78
201
220
(304)
(69)
-
48
102
-
(51)
-
-
51
61
-
(10)
-
-
51
-
50
(80)
-
-
(30)
10
55
(22)
-
-
43
-
100
(19)
-
-
81
-
34
(34)
-
-
-
624
487
(550)
(69)
-
492

(E) ENDOWMENT FUNDS

Movements on endowment funds in the year were:

Year ended 31 March 2022
Ono Funds
Special Projects
Total		 1 April
2021
£000
Income
£000
Expenditure
£000
Investment
gains
£000
Transfer
of funds
£000
31 March
2022
£000
913
-
(1)
12
-
924
2,301
-
(5)
31
-
2,327
3,214
-
(6)
43
-
3,251

49

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 14: FUNDS (CONTINUED)

(E) ENDOWMENT FUNDS (CONTINUED)

Year ended 31 March 2021
Ono Funds
Special Projects
Total		 1 April
2020
£000
Income
£000
Expenditure
£000
Investment
gains
£000
Transfer
of funds
£000
31 March
2021
£000
725
-
(9)
197
-
913
1,828
-
(24)
497
-
2,301
2,553
-
(33)
694
-
3,214

15: RELATED PARTY TRANSACTIONS

Three (2021: Three) Trustees or companies connected with Trustees are fully paid Members, Fellows or Corporate Fellows of the World Fellowship. During the year two Trustees made donations of £84,000 (2021: two Trustees £66,000) of which £33,500 (2021: £16,500) was restricted to the Nigeria fund and £2,000 (2021: nil) was for Special Projects.

Trustees do not receive any remuneration for their service as Trustees and no monetary value is included in these financial statements for time spent by Trustees on the affairs of the Foundation. Out of pocket expenses incurred by Trustees while carrying out their duties are reimbursed by the Foundation when claimed. During the year, expenses of £3,720 were reimbursed or paid on behalf of one Trustee, to cover event costs (2021: nil Trustees £nil).

The Trustees have reviewed the related party connections of themselves, their close families and other connected persons and report that no disclosable transactions, other than those described above, arose during the year from these connections.

operator for the USA. One grant payment was made to Award USA during the year of £14,000 (2021 - £nil).

Transactions with Intaward Limited in the year are detailed below:

Balance Sheet items 2022 2021
£000 £000
Loan to Intaward 7 116

50

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED) 15: RELATED PARTY TRANSACTIONS (CONTINUED)

Transactions with Beijing Intaward International Culture Development Company Limited are detailed below:

Income and expenditure items 2022 2021
£000 £000
Donation received - 5
Set up and operating costs 2 2

----- Start of picture text -----
are detailed below:
----- End of picture text -----

are detailed below:
Income and expenditure items 2022 2021
£000 £000
Service Agreement 1,050 -

On 21[st] September 2022, Intaward Limited sold its shares in Beijing Intaward International Culture Development Company Limited to Shanghai Enshaw Technology Group Limited, a company in which the Director of Beijing Intaward International Culture Development Company Limited has a majority shareholding.

16: PENSION SCHEMES

During the year to 31 March 2022 the Foundation contributed £136,000 (2021: £124,000) of unrestricted expenditure to The Duke of Edinburgh International Award Foundation Group Personal Pension Plan. This is a defined contribution pension scheme operated by Scottish Widows. As at 31 March 2022 £12,000 (2021: £14,000) was due to be paid to Scottish Widows. In addition, the Foundation contributed £nil (2021: £6,000) of unrestricted expenditure towards pension arrangements for regional staff.

17: POST BALANCE SHEET EVENTS

On 21[st] September 2022, Intaward Limited sold its shares in Beijing Intaward International Culture Development Company Limited to Shanghai Enshaw Technology Group Limited, a company incorporated under the laws of the .

51

Trustees Annual Report (Continued) Structure, Governance and Management

STRUCTURE OF THE FOUNDATION

UK charity incorporated on 6 November 1998 as a company limited by guarantee. On incorporation the assets and business of a preceding United Kingdom based charitable trust (registered on 10 November 1986) were transferred to it. The company is regulated by its Memorandum and Articles of Association.

The Founder of the Foundation is His Royal Highness, The Late Duke of Edinburgh.

GROUP STRUCTURE

The Foundation has invested in subsidiary undertakings in the UK and overseas. These have been established, to countries of registration and principal activities of these subsidiary entities are provided in note 10 b) to the accounts.

Further details relating to the income and expenditure and their Statement of Affairs of these subsidiaries can be found in note 10 c) to the accounts.

RELATIONSHIP WITH LICENSED OPERATORS

International Award. Generally, in countries where the Award runs on a substantial basis, the Foundation licenses National Award Operators, that are self-governing entities, to run and maintain the operation of the Award. In other countries the Award may be run by licensed Independent Award Centres (schools or organisations) that are directly licensed and supported by the Foundation.

THE DUKE OF EDINBURGH

RD ASSOCIATION

The Association is the collective name for all the constituents of The Award family and is established by the mutual consent of all the parties concerned in order to encourage cooperation, share responsibility for development and foster collective ownership in our brand. The Association is established through a Memorandum of Understanding which sets out its formation and purpose. It also outlines the relationships, practices and procedures through which all constituent parts of the Association operate to ensure responsible and transparent governance, consultation and discussion. The Association meets every three years in Forum at a suitable venue organised by one of the National Award Operators.

THE INTERNATIONAL COUNCIL

Between each Forum, the International Council acts on behalf of the Association and gives effect to decisions previously taken especially in relation to international development and operational policy. As such, the International Council is a representative group. C Award Operators and Emerging Leaders.

THE BOARD OF TRUSTEES

The Board of Trustees takes all decisions collectively. Trustees are equal in the duties and responsibilities that they owe to stakeholders, and accordingly, they work together as one body within which the Chairman takes the lead. There is a maximum of ten Trustees.

52

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

The Trustees are responsible for determining all important matters of policy. They meet at least three times each year and at more frequent intervals as necessary to carry out their responsibilities. They review strategy and performance annually and approve budgets and operating plans in line with strategy.

The corporate governance of the Foundation is monitored against guidelines for best practice as set out by the Charity Commission in its framework for sound governance and accountability (Charity Governance Code). It is velop the corporate governance procedures whenever appropriate.

Each Trustee is a member of the company, with a limited guarantee of £1 per member. Trustees have no rights to any distribution on dissolution of the company.

Trustees serve for a maximum period of 12 years continuous service, with the following exceptions:

The Foundation expects Trustees to retire at the age of 70.

Trustees are all non-executive, have no beneficial shares or options and receive no remuneration or other benefits. The independence of the Trustees and their willingness to act in the best interests of the charity are not impaired by their gifts of time and in some cases financial support to the charity.

INDUCTION AND TRAINING OF TRUSTEES

The Nominations Committee identifies candidates for future Trustees. The Trustees, as a body, are responsible for their appointment. The induction and familiarisation process of new Trustees may start before their appointment, depending on their background and experience of the Foundation. On appointment to the Board, trustees are provided with a Trustee toolkit which includes information on the roles and responsibilities of trustees and guidance from the Charity Commission. Trustees are also inducted through a series of meetings with current trustees and the Senior Leadership Team.

SUB COMMITTEES OF THE BOARD OF TRUSTEES

In addition to the main Board, governance of the Foundation is exercised through a number of Committees which hold responsibility for specific areas as follows:

53

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

Remuneration Committee

MEMBERS OF THE BOARD OF TRUSTEES AND ITS SUB-COMMITTEES

The following table shows the membership of the sub-committees during the year and up to the date of signing the financial statements:

----- Start of picture text -----
Finance, Nominations Remuneration Safeguarding
Audit and and Serious
Property Incidents
Reporting
His Royal Highness The Prince Edward,
Earl of Wessex KG, GCVO (Chair)
Alka Barot
Paul Bell
The Rt Hon The Lord Boateng PC DL
Rock Chen
Adebayo Olawale Edun
Muna Issa
Andrew Smith
Garth Weston
Dr Howard Williamson CVO CBE
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Denotes Chair

The following trustees were appointed on 15 October 2022:

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STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

OTHER ADVISORY COMMITTEES

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Managing Responsibly

dedicated to ensuring the effective and efficient running of the charity, the quality of delivery and ongoing expansion of the Award worldwide. We are a driven team who continuously strive to find new ways for more young people to access the Award, to expand its reach and ensure its impact globally.

The Foundation is guided by our Chairman HRH The Earl of Wessex and supported by a Board of nine senior experts in youth policy, politics, finance, public relations, business and Global Human Capital Management, amongst others.

MANAGEMENT

The Trustees review strategy and performance annually and approve budgets and operating plans in line with the strategy. Authority to implement the strategies and policies on behalf of the Trustees and to conduct the day-to-day operations of the Foundation is delegated to the Secretary General. The Secretary General is accountable to the Trustees for the efficient running of the Foundation with the help of the Senior Leadership Team and the Senior Management Team. The Secretary General is also responsible for promoting the benefits of the Award to the widest possible audience, raising the funds necessary to support the Association and international licensing arrangements.

SENIOR LEADERSHIP TEAM :

The Foundation had an average of 45 (2021: 46) employees throughout the year. We seek to offer pay rates and a package of terms and conditions that will attract, retain and motivate high calibre staff. The Foundation seeks to maintain a median pay position, where pay is sufficiently in line with valid market comparators to enable the organisation to conduct effective recruitment, selection and retention. All positions are graded against a common objective set of factors and regularly tested against the market. All roles, except for the Senior Leadership Team, have a defined incremental scale.

In line with UK statutory reporting guidelines, we have analysed the gender pay of our UK payroll as at 5th April 2021. Our median gender pay gap as at 5 April 2021 was 12.5% (2020 26.5%), an improvement of 14.0 percentage points. Our mean gender pay gap as at 5 April 2021 was 31.2% (2020 29.2%), a decline of 2.0 percentage points. Our UK payroll gender pay quartile distribution was:

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2022 2022 2021 2021
Female Male Female Male
Lower 89 11 82 18
Lower middle 67 33 82 18
Upper middle 89 11 82 18
Upper 56 44 55 45
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MANAGING RESPONSIBLY (CONTINUED)

There is a significantly higher number of females in the Foundation than males, and a higher relative proportion of males in senior roles than females. This is the primary reason for the current gender pay gap between male and female employees. The Foundation works to employ staff against a fair and transparent pay grading structure which is competitive with local labour markets. A key challenge for the coming years will be to have a more balanced representation of genders at all levels of the organisation, whilst also retaining the current staff team.

The Foundation is, by its nature, an international organisation, with roles based in different locations around the world. All roles which are not based in the UK will be subject to the same principles and structures in relation to pay and grading as those in the UK. However, there will be regional variations and national differences in the actual pay and terms to ensure that they are relevant to the local environment medians.

The Award Operators work with Foundation staff as well as employing their own people to operate the Award. In the delivery of the Award to young people, over 184,000 volunteers are engaged in various capacities by the bodies to which the Award is licensed.

The Foundation carries out quality assurance tests on the National Award Operators and Independent Award Centres but is not responsible for their employees or for the volunteers.

EMPLOYEE INVOLVEMENT AND EMPLOYMENT OF PEOPLE WITH DISABILITIES

The Foundation has in place human resource policies and procedures to encourage employee involvement and ensure compliance with best practice. Employees are consulted on mutual issues of concern by means of regular staff meetings and are kept informed directly on specific matters by management. During the year the Foundation undertook a staff survey. All staff were invited to participate in the survey and the findings have in the survey. Specific attention has been paid to staff mental wellbeing during the COVID crisis. recruitment, selection, retention and training of staff with disabilities.

FUNDRAISING GOVERNANCE

In accordance with the Charities Act 2016, we confirm that all solicitations are managed internally, without involvement of commercial participators or external professional fundraisers, or third parties. Such amounts -to-day management of all income generation is delegated to the Senior Management Team, which is accountable to the Board of Trustees. We have received no complaints in relation to fundraising activities.

clearly understand the standards we expect when representing us and when speaking to members of the public on our behalf. We choose to opt out of our communications at any time, and we never share or sell their data, in line with GDPR.

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MANAGING RESPONSIBLY (CONTINUED)

MANAGING RISK

The Foundation and its Board of Trustees are committed to ensuring the safe, sustainable running of the Award around the world. In order to

comprehensive risk register and risk management process in place. The risk register is regularly reviewed and updated by the Senior Leadership Team, and is regularly reviewed by the Finance, Audit and Property Committee and annually by the Full Trustee Board.

The charity categorises the risks they face into three main areas: structural, strategic and operational risks. The likelihood and impact of the risks are continually reviewed, along with how they are managed and mitigated. The following key risks have been identified as part of their risk management process:

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Highest Scoring Risks Mitigations
A failure to take all reasonable Regular review and monitoring of our policies and
measures to protect individual procedures for safeguarding young people and vulnerable
participants, volunteers or staff adults
resulting in significant harm to
Continue to ensure clarity of responsibility, under the
individuals and erosion of trust.
licence, of Award Operators and individual units to
undertake due diligence and ongoing training when
selecting organisations and individuals with whom to
partner on Award activity
Insistence on appropriate Operator vetting procedures to
national standards and compliance with national
guidelines for the protection of children, young people and
vulnerable adults
Regular communication of whistleblowing procedures
which include a responsible Trustee
Ensure incident management processes and emergency
plans are robust and regularly reviewed
Regular review and communication of the Code of
Conduct with regard to safeguarding so that individuals
are clear what it is expected of them.
Financial resourcing shortfall Development and diversification of our income plans so
from loss of income due to over that less reliance is placed on income from key individuals.
reliance on key individuals,
Further development of income from non-fundraising
inadequate donor due sources
diligence, donor's interest or
Continue development of our donor and events
ability to support declines.
programme so that they remain relevant to our donors
Continued improvement of income-related systems,
processes and reporting so that we develop a better
knowledge of all sources of income
Appropriate reserves policy
Trustee approved annual budget and medium-term
financial plans
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----- Start of picture text -----
The risk arising from All necessary policies, procedures and manuals exist, are
association with the wrong complied with and are regularly reviewed/updated. This
people and/or that these includes event risk reviews, donor due diligence,
people may want to use the
safeguarding, HR, finance, whistleblowing, licensing and
brand/ trademark in a way that
related party transactions
is damaging to us as an
Proactive promotion of equality and diversity in all that we
organisation
do
High quality Operator account management and licence
reviews
Partnership agreements and non-operational licences that
are authorised in line with agreed policies and procedures
and regularly reviewed
Clear pre-release policies and procedures for all
communications material and published documents
Clear intellectual property and trademark policies and
process
Failures in digital security Fully tested business continuity plans and regular system
resulting in data breaches back-ups
causing significant detriment to
Increased staff awareness re digital risks
our reputation, substantial
Firewalls and password controls
fines or significant business
Compliance with data legislation
interruption from the loss of
Ensure appropriate cyber insurance is in place
personal or business-critical
data. Contracts in place for supplier support and cloud-based
hosting
Losses of income resulting from Working closely with Operators to show creativity and
lower participation rates and flexibility in how the Award can be delivered within
resultant lower interest from parameters, whilst preserving the integrity of the Award.
donors and late cancellation of
Deployment of Virtual events and increased touch points
events from the prolonged
with Donors through clever PR.
impact of the pandemic.
Careful planning and commitment scheduling for major
events.
Operators are unable to retain Strategic plan identifies numbers of volunteers required to
and/or recruit volunteers, meet future participant needs enabling planning for
leaders and staff of high recruitment
standard.
In association with operators develop communications
programme (inc #worldready) to maximise their profiles
and thus encourage volunteers to come forward
Improved support and development of Operator
staff/volunteers via training platforms
Utilise satisfaction surveys and respond to issues raised
Work with NAOs to identify appropriate plans
Increased use of virtual training course for new operators
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MANAGING RESPONSIBLY (CONTINUED)

SOCIAL RESPONSIBILITY

The Foundation is committed to social responsibility. As part of this, the Foundation seeks to integrate social and environmental concerns in its business strategy and operations, via seven key areas:

  1. Employees: Ensuring a workplace that encourages development, enables free communication and provides a positive work-life balance

  2. Environment: Constantly, actively seeking ways to reduce our environmental impact

  3. Investment: Ensuring our investments are directed towards socially responsible options.

  4. Constituents: Being open, responsive and aware of our global Award family

  5. Resources: Maximising resources to ensure funds can be directed to the driving the Access, Reach and Impact of the Award around the world

  6. Community: Operating regionally and locally; constantly working to develop strong ties in local communities around the world

  7. Suppliers: Working towards an ethical purchasing policy, which includes a focus on sustainable, FairTrade products wherever possible.

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the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable of the charitable company and the group 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation therein.

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Thank you

Thank you for taking the time to learn about and reflect on the work of our organisation over the past year.

I personally never stop being inspired by the dedication, determination and persistence of all who relentlessly and passionately guide Award participants on their journey of self-discovery, adventure and personal development. They understand there is space for both success and failure, for tears and for joy, but there is little space for complacency and self-interest. Our future will be in the hands of the generations to come.

As a longstanding supporter and volunteer, I am proud to be investing in the next generation of young people as they develop the universal skills needed such as confidence, resilience, adaptability and problem solving which can help them to tackle the

Our future is bright. You will understand what I mean when you meet Award participants and Award holders. As Honorary Chair of the World Fellowship, I would like to thank all our volunteers, donors and supporters for their ge

Jiri Zrust

We are very grateful to all our loyal supporters.

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Philanthropists, corporate partners and those who have committed their support through the World Fellowship, Special

Global Benefactors

James Dicke II Margaret Fountain CM

Platinum Benefactor

Muhoho Kenyatta

Major Donors

HH Shaikh Isa bin Salman Al Khalifa, Court of the Crown Prince of Bahrain Daisy Ho

The Stoller Charitable Trust Michael Steele and Stacey Coote, The Steele Family Foundation

Award House Benefactor

The Stanley Ho Charitable Trust

Gregory S. Belton CVO CM KC*HS LL.D Dr K G Bradshaw OBE DL The Braithwaite Family Foundation Dr Adrian Brooks Dhiren Chandaria Ishtar Chandaria Nikita Chandaria Sagar Chandaria Harry Collins MVO Joanna Collins AM Patrick Curran Sir Mick Davis and The Davis Foundation Ahmed Dasuki Ellen K. Dyvik and Dr. Nicolaus Henke Olawale Edun Ian D. Fair The Fieldrose Charitable Trust Wendy Fisher David and Megan Frost Jeff and Christine Gooch Michael Gross Mehmet Gultekin Guy and Julia Hands Alison and Mark Hesketh Prof G E Holmes DL

Eric Idiahi Muna Issa Michal Jelinek Caroline Jones Jemima Jones Will Jones André Jordan Utsava Kasera Dr Zden k Kaufmann Rodrigo Lebois Constantine Logothetis Philip C.Y. Ma afak Muderrisgil Teofil Muresan Dr Uday and Pooja Nayak Pavel Nepala Dr Tunji Olowolafe Dr Charles K. W. Pang, Hons BA Dr Selva and Mrs Tharshiny Pankaj John Sleeman, CM, LL.D Jan Sykora, WOOD & Company Patrick Tsang Vit Va an Stephanie Wilson Jiri and Jitka Zrust

Trusts and Foundations

Tanaka Memorial Foundation Bamford Charitable Foundation

Pears Foundation

Partners and Corporate Supporters

GL Jubilee Charitable Foundation created by Gary Lubner Graham Shapiro Design Ltd Hakluyt & Company Ltd HSBC Bank plc The Holder Family The Macquarie Group Foundation The Royal Mint Stonehage Fleming Services Limited World Health Organisation and United Nations Foundation Covid19 Solidarity Response FundThe Big Give

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THE DUKE OF EDINBURG

AWARD REFERENCE AND ADMINISTRATIVE DETAILS

Chairman: HRH The Earl of Wessex and Forfar KG GCVO

Registered charity in England and Wales number: 1072453 Company limited by guarantee number: 3666389

REGISTERED OFFICE: The Duke of Edinburgh's International Award Foundation
Award House
7-11 St Matthew Street
London
SW1P 2JT
INVESTMENT MANAGERS: Ruffer LLP
80 Victoria Street
London
SW1E 5JL
INDEPENDENT AUDITORS: BDO LLP
55 Baker Street
London
W1U 7EU
SOLICITORS: Bates Wells
10 Queen Street Place
London
EC4R 1BE
BANKERS: NatWest
250 Regent Street
London
W1B 3BN

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