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2023-03-31-accounts

Award Foundation

(a Company Limited by Guarantee)

Trustees' Annual Report and Financial Statements

for the year ended 31 March 2023

Company Number: 3666389 Registered Charity Number: 1072453

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Contents

Trustees Annual Report

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About Us....................................................................................................................................................................... 3
Our Year ....................................................................................................................................................................... 5
2022-23 ual Report ..................................................................................... 7
Growing and Strengthening the Award internationally .............................................................................................. 9
Financial Review ......................................................................................................................................................... 12
Commitment .............................................................................................................................................. 18
Thank You ................................................................................................................................................................... 18
............. 19
Consolidated statement of financial activities for the year ended 31 March 2023 .................................................. 23
Consolidated and Charity balance sheets at 31 March 2023 .................................................................................... 24
Consolidated cash flow statement for the year ended 31 March 2023 .................................................................... 25
Notes to the financial statements for the year ended 31 March 2023 ..................................................................... 26
........................................................................................................................ 54
Structure, Governance and Management ................................................................................................................. 54
Managing Responsibly ............................................................................................................................................... 59
Responsibilities..................................................................................................................... 64
Thank You ................................................................................................................................................................... 65
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strategic report, and the audited financial statements of the company limited by guarantee for the year ended 31 March 2023 Companies Act 2006, the Statement of Recommended Practice applicable to charities preparing their accounts in Companies Act 2006 and with regard to Charity Commission guidance on public benefit. Disclosures required in the ing the strategic report) by the Companies Act 2006 and Charities SORP (FRS102) are also contained within the appendix.

ation

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About Us

THE AWARD

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.

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stipulated The Award must be open and available to all, a principle that continues to underpin our future endeavours.

nal Award is a global framework for Non-Formal Education and Learning; inspiring and empowering, millions of young people to transform their lives. It allows young accreditation of their experiences; celebrating their achievements and playing a critical role in their development outside the classroom. Currently, the Award operates in 129 countries and territories.

Founded in 1956 by HRH The Prince Philip, the late Duke of Edinburgh, KG, KT. He believed that by creating opportunities for young people to develop skills, get physically active, give service and experience framework remains the same wherever it is delivered, no two Awards are the same. Instead, each young person designs and creates their own bespoke programme.

Since 1956, some 7 million Awards have been gained by young people who have given approximately 250 million hours of voluntary service to their local communities across 168 countries. Like millions today, they challenged themselves to find their purpose, passion and place in the world.

THE FOUNDATION

The Foundation is the engine that increases the access, reach and impact of the Award around the world ensuring as many young people as possible can benefit from and achieve this world-recognised accreditation.

The Foundation manages the Award through a social franchise, licensing 501 operators, ranging from National Award Operators to individual organisations. The Award is delivered to young people through the Award Family of 21,206 Award Centres, such as schools, youth groups, custodial institutions and other operators.

advancing the adoption and effective administration of The Award for the development of character, good citizenship The Foundation does this by:

Communicating - providing advocacy for the importance of non-formal education and learning; managing the Award brand and its communications to ensure relevant, consistent messaging and material to promote the Award and its impact worldwide

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THE ASSOCIATION

the collective name for all the constituents of the Award 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 501 operators licensed by the Foundation.

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Our Year

Our motivation is that, daily, we can help inspire, transform and empower individuals, communities and societies. Over the past year, this is what we have achieved.

Summary

Young People: 2017 2022 Progression

Adults in the Award

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Docusvjn Envelope ID." 04D0522A4C6C4DD2-9BD3-16CC7A076F8E Global reach of the Award 24.0 150 22.￿2 12.L 11.4Q3 21.206 zo,u 18A35 140 18.0 135 16.0 14.LW 12.0 10.0 2018 2020 2022 NuMborofAwaid *CountrlesifidTerrttod

2022-23 Trustees Annual Report

The year has seen continued resurgence since the pandemic and setting the foundations for the future.

The Association gathered in Cluj-Napoca, Romania, for our first hybrid Forum in October. 145 delegates attended in person with another 72 joining online. It was a very positive and affirming series of meetings, the principal topic being our forward strategy and what were felt to be the biggest challenges to overcome.

It was a poignant moment as the Association acknowledged the passing of Her Majesty Queen Elizabeth just weeks before. We also remembered our Founder, His Royal Highness The Prince Philip, late Duke of Edinburgh. The tribute and ultimately shaped what is probably his greatest legacy. Much thanks must go to those who presented and contributed to the tribute.

We were delighted that Princess Margareta, Custodian of the Crown of Romania and Patron of the Award in Romania, her husband, Prince Radu as well as Prince Guillaume, Chair of the Award in Luxembourg, were able to join us in Cluj-Napoca.

Slovakia. Collectively, they initiated a project to encourage participants to act as buddies to displaced young Ukrainians, helping them to integrate through shared passions. The Stand By Me project has helped to raise awareness of a particular issue for refugees as well as providing a solution and in doing so has attracted considerable interest, including the support of UNICEF.

Not long after the Forum, John May stood down as Secretary General after nearly eleven years in the role. His tenure has seen some remarkable changes and developments, notably the One Award Alliance which introduced our social franchise business model, our digital transformation, and our quality assurance programme, all of which are fundamental to our brand. Policy makers and educationalists worldwide have become much more aware of the importance of non-formal education and learning. John also helped to create a much stronger working partnership with the youth organisations which, in turn, developed partnerships with the World Health Organisation and the Commonwealth. We wish him well in his future endeavours.

The Foundation continues to support our Award Operators to invest in the development of young people which is at the heart of what do. Our absolute priority is supporting Award participants and volunteers. Our activities span the non-formal education and learning sector and The Award is a unique and global recogniser and accreditor of young hree teams.

Our Operating team (page 9) lead our efforts to maintain and develop key partnerships. In addition to those mentioned already, we also work with Cambridge International, the World Bank and Mastercard Foundation on a variety of projects empowering young people in very different circumstances. The team also supports recipients of International Special Projects and the process to identify Award Operators who could benefit from our new major grants programme through the . The team is looking to significantly grow the number of directly licensed and managed Operators or Independent Award Centres due to demand.

Our Communicating team (page 10) is igned a Memorandum of Understanding to promote Quality Youth Leadership . They were instrumental in delivering the Forum, supporting Stand By Me and running virtual events to showcase the Award in action. The team is also responsible for building our alumni network as well as our of £1.35 billion won the team a Social Value Award for third sector leadership.

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Our Resourcing team (page 11) is led by a new Chief Finance Officer who has carried on the task of moving the Foundation to be more financially sustainable. The experience is helping the team to set the conditions for Award Operators to consider similar exercises. They also look after our digital tools and systems. The priority this year has been our global intranet which provides online training programmes as well as a means for Operators to exchange information more easily. In terms of people, we have seen a substantial uptake in the number of applicants for the tailored 3-tier business management courses run by Herriot Watt University. The newly created Development team has taken on a wider remit of fundraising as well as grant-giving, both of which are experiencing a welcome resurgence. The most notable success has been the partnership agreed with Mastercard Foundation which will be critical to not only extending the reach of the Award, but also ensuring it is accessible to all.

The Financial Review (page 12) General Fund in better condition. Our investment portfolios suffered from turbulent markets, but crucially, we increased the amount of income by just short of £2m over the previous year. Our reserves have been affected positively by Stand By Me and the , although the this will alter as we implement the associated grant schemes.

Our Year ( page 5 ) illustrates the continued resurgence since the pandemic. The number of active participants in The Award has increased by 11% on the previous year. The number of young people starting their Award journey is up by 12% and is equivalent to 1,450 starting every day while those who achieved either their Bronze, Silver or Gold Awards is up by 38%.

Our Future endeavours will be determined by our forward strategy currently taking shape. While the overall statistics are encouraging, there is consensus within the Association that we can and ought to be reaching more young people. Seeking Financial and Operational sustainability or viability are key goals. We will be striving to reach our financial target for the Fund as it will be crucial to achieving these goals. We will be looking at ways to accelerate our digital transformation as well as how to refine our research and evaluation, the latter being particular important if we are to demonstrate our positive impact.

My fellow Trustees and I are hugely grateful to all our donors who have maintained their financial support over this period. We bade farewell to four Trustees this year and welcomed four new ones. We wish to thank our Operators for their understanding and excellent collaboration as well as all who work for the Foundation; this has been a demanding year and we are immensely grateful to them for their dedication. Particular thanks must go to our Chief Operating Officer who has stepped up as Interim Secretary General and Chief Finance Officer for valiantly holding the fort to give us time to find the best possible candidate to lead, shape and influence the future development of The Award.

Finally, and in case it causes confusion, I ought to mention that I have a new title. His Majesty The King very kindly taking time to get used to, especially the weight of responsibility to sustain the reputation and all that so many associate with the Dukedom of Edinburgh, not least The Award and its legacy. We have both been genuinely heartened by the positive reaction we have received from so many people. Thank you.

HRH The Duke of Edinburgh KG GCVO ernational Award Foundation

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Growing and Strengthening the Award Internationally

OPERATING

The Foundation supports and encourages our Operators, ensures effective governance of the Award internationally, provides training to Award Operators and organisations delivering the Award, and enables them to deliver the Award effectively and consistently so that young people enjoy and benefit from a quality experience. 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 129 countries and territories through a network of licensed organisations, including:

In the past year, the Foundation has worked diligently and innovatively through a variety of initiatives to further grow the Award across the world. Operators continue to deliver a successful Award experience (both in person and virtually), utilising and enhancing digital tools and online platforms that allow more young people to access the Award; sharing solutions and best practice and strengthening global cooperation. This flexible approach to delivering the Award has gone on to create more opportunities for young people to take part, further increasing the access, reach and impact the Award has across the world.

Awareness of the value and importance of non-formal education and learning continues to grow at pace. We remain a proud member of The Big 6, with Secretary General John May attending CHOGM (Commonwealth Heads of Government Meeting) in Rwanda in June where championing Non Formal Education and Learning (NFE&L) among member states of the Commonwealth was the central area of focus.

In the past year, the Foundation has worked diligently and innovatively through a variety of initiatives to further grow the Award across the world.

1 A National Award Operator (NAO) is the body responsible for the operation of the Award within a country or dependent territory. There can only be one NAA in each country or dependent territory.

2 An Operating Partner (OP) delivers the Award to their members or students. An OP can be a national youth organisation like the Guides or YMCA or could be a single school unit. 3 An Independent Award Centre (IAC) is an organisation (such as schools, NGOs and youth clubs) directly licensed by the Foundation to deliver the Award as an IAC. An IAC is licensed to deliver the Awrad exclusively to their own students/members.

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A focus on partnerships will continue to grow in the coming years, with further work planned with the Mastercard Foundation and Stonehage Fleming, to name a few. We look forward to growing this area of the business which will - open up new opportunities for Award delivery worldwide and further highlight the formal education and learning framework can play in complementing a formal curriculum; resulting in top-quality holistic education.

COMMUNICATING

The Award brand and communications drives awareness and supports global growth with impactful, current and consistent messaging and materials to promote the Award and its impact worldwide.

The potential of the Alumni network is great and with plenty of untapped opportunities still to explore, we are reviewing its strategy to create stronger, more efficient engagement across the network and beyond. Communications, research and advocacy partnerships will continue to make a vital contribution to the work of the Foundation, particularly in support of initiatives such as Stand By Me and the (see below) as recognition of the Award and its impact around the world becomes increasingly important.

In March, HRH Prince Edward, Earl of Wessex and Forfar received the new title of Duke of Edinburgh. In addition, Patron; a position previously held by his father, Prince Philip, who founded the Award in 1956. The news of the -term ambition of universal access so that every eligible young person has the opportunity to take part.

This past year, the Communications team created opportunities for increased brand awareness through various initiatives, helping to amplify the profound global impact of the Award and facilitating the Foundation to further widen its reach and scope, including:

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RESOURCING

After an unsettling period created by the global pandemic, in which charities and other industries alike had to dramatically adapt their efforts in order to respond to the changing environment, we are now in a more stable position. In the past year:

These developments have been hugely successful in contributing to the growth and sustainability of the Foundation and the Award around the world.

We saw a healthy year end surplus from our Philanthropy team thanks to a combination of securing renewed commitments and vigorous new business activity which will be a key area of focus in the coming year. We are also leveraging a busy year of international events to maximise Stewardship and Engagement opportunities for supporters to come together including a corporate showcase; World Fellowship events; Gala Dinners and Award in Action opportunities.

We have made great strides towards confirming our new five-year Forward strategy for the Association ensuring that every effort is made to keep the Award relevant, accessible and appealing through the essential offer of adventure, challenge and a globally recognised achievement.

Looking a momentum, allowing the fund to make transformational grants where the scale of Award delivery can be significantly increased, particularly amongst young people from at risk or marginalised backgrounds. In the new financial year we will build upon our grant giving and fundraising over multiple years. We continue with a central focus of increasing access, reach and impact so that, ultimately, we reach our ambition to provide universal access to the Award for all young people.

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Financial Review

FINANCIAL HIGHLIGHTS

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2023 2022 Change
£000s £000s £000s
Income 7,774 6,037 1,737
Expenditure (4,720) (3,908) (812)
Net Operating Income 3,054 2,129 925
Development expenditure (472) (551) 79
Net Income 2,582 1,578 1,004
Investment gains 129 407 (278)
Loss on sale of subsidiary (82) - (82)
Unrealised (losses)/gains on investment properties (944) 186 (1,130)
Unrealised (losses)/gains on fixed assets (747) 11 (758)
Net Surplus 938 2,182 (1,244)
Reserves 14,316 13,378 938
Unrestricted 7,521 5,031 2,490
Unrestricted long term asset reserve 3,004 4,735 (1,731)
Restricted 3,791 361 3,430
Endowment - 3,251 (3,251)
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Net income for the year before investment gains, property revaluations and sale of subsidiary, totalled £2.6 million, this is an increase of over £1 million on the previous year.

In July 2020, the Foundation was gifted Award House. During the year the Trustees took the decision to sell the property due to the significant amount of remedial work required to the roof, as such, the property has been revalued to £3 million. We have recognised an unrealised loss of £1,701,000. The Foundation also holds an investment property in Portugal, we have recognised an unrealised gain of £10,000 during the year in relation to this property.

education and foreign ownership of companies operating in China, the Beijing Intaward International Culture Development Company Limited was sold during the year for consideration of £205,000. Income and Expenditure of and a loss on disposal has been recognised of £82,000.

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INCOME

Full year income of £7,774,000 was £1,737,000 ahead of the prior year.

Income from individual donations grew by £647,000, this includes £2,380,000 (2022: £2,456,000) raised for the Founders Fund. The increase is due to a combination of securing renewed commitments from existing donors and securing new World Fellows. Income from charitable activities (excluding grants) increased by £375,000 reflecting a full year of the new fee structure for our National Award Operators and reflecting an increase in participant numbers as well as an increase in number of licenced Award Centres. Operator fees are expected to further increase in future years as we grow our Operating Partnerships and the number of Award Participants continuous to increase.

There has been a significant increase in other trading activities. This year saw a return to in-person fundraising events. Event income, including fundraising auctions totalled £780,000 (2022: nil). In addition to this, income from other trading activities includes £54,000 of commercial licence fee income.

Grant income has declined by £119,000. This relates to performance related grant income relating to the Global Youth Mobilisation initiative which came to an end during the year as well as an end to the UK Coronavirus Job Retention Scheme.

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EXPENDITURE

Total expenditure increased by £733,000 during the year, this reflects our increased activity within our corporate partnerships. We have continued to apply tight cost control to all other areas of expenditure.

The costs of raising funds of £1,082,000 (2022: £797,000) increased by £285,000 in the year, reflecting a return to face-to-face fundraising events. Core expenditure on Charitable Activities of £3,638,000 (2021: £3,111,000) was £527,000 higher than the previous year. Lower spend on Communicating activities reflects continued tight cost control in this area. We have seen an increase in Operating and Resourcing expenditure due to spend of £428,000 for the Stand By Me initiative and planned expenditure of £136,000 for the triennial Forum.

We spent a further £472,000 (2022: £551,000) on Charitable Activities development projects. Our development spend has decreased by £79,000. An increase in expenditure for Supporting Adults in the Award is outweighed by savings within Alumni, Research and IT Development.

INVESTMENT POLICY AND PERFORMANCE

is

to over the long term, increase the value of the investment portfolio in real terms. The investment portfolio is used

Investec Wealth & Investment Limited were appointed during the year to manage funds relating to the Founders fund. In February 2023, we invested £2.9 million. The investment objective is to grow, or at least retain, the capital he fund does not have a specific income requirement from the portfolio and as such, returns can be generated from both capital growth and income via a total return approach. In the year to 31 March 2023 the charity made gains of £10,000.

The charity holds further funds with Ruffer LLP. These are 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 2023 the charity made gains of £129,000 (2022: gain of £407,000) this is below the growth rate objective of inflation plus 3%.

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Property Committee. The Committee also -term performance on an annual basis.

The value on 31 March 2023 was £8,404,000 (2022: £4,979,000), an increase in the year of £3,425,000 (2022: £357,000 increase). During the year the charity invested a net £3,350,000 from the portfolios (2022: divestment of £715,000) reflecting excess cash generated through successful fundraising campaigns.

RESERVES AND RESERVES POLICY

On 31 March 2023 total reserves stood at £14,316,000 (2022: £13,378,000) of which £3,791,000 (2022: £3,612,000) were restricted funds or endowment funds. Unrestricted funds stood at £10,525,000 (2022: £9,766,000). Of these unrestricted funds, £6,962,000 (2022: £5,154,000) are designated to enable the Trustees to support development projects and grant making activities funds comprise general fund surplus of £559,000 (2022: deficit of £123,000) and the long-term Asset fund of £3,004,000 (2021: £4,735,000).

cushion against financial risk, uncertainties,

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£2.2 - £3.5 million, with a medium risk point of £2.85 million. The Foundation made a surplus on general funds of nearly £0.7 million in the year, bringing the general reserve to £0.6 million which is below the target range for this reserve agreed by the Trustees. In 2020/21 the Trustees implemented a reorganisation of the charity and implemented a financial plan to re-build the general reserve over a five-year plan to the mid-point of the risk range. It is anticipated that we will meet our target reserve in 2026/27.

FINANCIAL SUSTAINABILITY

Reserves and liquid resources

The Foundation (including its subsidiaries) started the year ended 31 March 2023 with reserves of £13.4 million (of which £3.6 million was held in restricted or endowment funds and a further £4.7 million held in the unrestricted long term asset reserve) and strong liquidity with cash and short-term investments of £8.0 million. The Foundation has ended the year with cash of £2.1 million and short-term investments £8.4 million, a total of £10.5 million, this is an increase of £2.5 million on the previous year.

During the year ended 31 March 2021, the Foundation was gifted Award House. During the year the Trustees took the decision to sell the property. Award House requires significant remedial work to the roof, as such the property has been revalued to £3 million. It is expected that the property will be sold in the coming year upon which the Foundation will receive a large cash injection which will be invested in our highly liquid investment portfolio. If the property is not sold it may still be used as security for further funding although there are currently no requirements to do so.

The endowment funds held at the end of the previous year of £3.2 million have had their restrictions removed based on consents received from the donors to these funds and following permission from the Charity Commission. The funds are held to provide grants for Special Projects and are now treated by the Trustees as restricted funds.

Financial forecasts

The Foundation has assessed its financial prospects over a five-year planning period. This assessment takes account four-months of the current financial year. It also reflects, conservative participant growth amongst all operators; new partnership agreements; modest growth in the fundraising environment; 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 53 to 57. Given continued general market uncertainties we have assessed outcomes from both a base case and alternative downside case.

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The key inputs and assumptions for the base case include:

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

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

The results from both base case and downside forecasts and taking into account

sustainability over the next five 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 £2.6 million before investment gains, revaluation of properties and sale of subsidiary. Surplus after these items total £938,000, this follows two successful years including a surplus of £2.2million in the prior year. 3, excluding the long-term asset reserve were over £7.5 million, comprising a general fund of £0.6 million and a designated fund of £6.9 million.

The Trustees currently expect the results for the current year ending 31 March 2024 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 five-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.

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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.

, managing responsibly and trustee responsibilities are provided on pages 53 to 64 (including the Strategic Report). The Trustees have re-appointed BDO LLP to act as auditors for year ended 31 March 2024.

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 13 October 2023 and signed on their behalf by:

Richard Oldfield Trustee 13 October 2023

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

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Members of

Award Foundation

Opinion on the financial statements

In our opinion, the financial statements

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

have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the fin

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. financial 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 our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group 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.

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Other information

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

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the

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.

tters related to going

concern and using the 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.

nsibilities for the audit of the financial statements

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.

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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:

Non-compliance with laws and regulations

Based on our understanding of the Group and the sector in which it operates we identified that the principal laws acts in the UK. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be fundraising regulations and health and safety legislation.

In addition, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigations. We identified the following areas as those most likely to have such an effect: employment law, data protection and health and safety legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence if any.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud.

Audit procedures performed by the engagement team included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls, income recognition and going concern. Our procedures in respect of the above included:

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We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

Use of our report

This report is made solely to th members those matters we are required to state to them in an fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable r for the opinions we have formed.

Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London, UK 19 October 2023

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 2023

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

Note
Income and endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other Income
Total Income and endowments
Expenditure on:
Raising funds
7
Charitable activities
development projects
7
Charitable activities
core activities
7
Total expenditure
7
Net operating income/(expenditure)
Net gains on investments
10
Loss on sale of subsidiary
10
Net income/(expenditure)
Transfer between funds
14
(Losses)/Gains on revaluation of
investment properties
9
(Losses)/Gains on revaluation of fixed
assets
8
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward at 31 March
14		 Unrestricte
d Funds
Restricted
Funds
Endowment
Funds
Total
Funds
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
Funds
2023
2023
2023
2023
2022
2022
2022
2022
£000
£000
£000
£000
£000
£000
£000
£000
4,189
854
-
5,043
4,011
385
-
4,396
1,789
101
-
1,890
1,426
208
-
1,634
587
246
-
833
-
-
-
-
3
5
-
8
2
2
-
4
-
-
-
-
3
-
-
3
6,568
1,206
-
7,774
5,442
595
-
6,037
(1,048)
(35)
-
(1,083)
(777)
(14)
(6)
(797)
(471)
-
-
(471)
(396)
(155)
-
(551)
(2,687)
(951)
-
(3,638)
(2,459)
(652)
-
(3,111)
(4,206)
(986)
-
(5,192)
(3,632)
(821)
(6)
(4,459)
2,362
220
-
2,582
1,810
(226)
(6)
1,578
180
58
(109)
129
364
-
43
407
(82)
-
-
(82)
-
-
-
-
2,460
278
(109)
2,629
2,174
(226)
37
1,985
-
3,142
(3,142)
-
(30)
30
-
-
(954)
10
-
(944)
121
65
-
186
(747)
-
-
(747)
11
-
-
11
759
3,430
(3,251)
938
2,276
(131)
37
2,182
9,766
361
3,251
13,378
7,490
492
3,214
11,196
10,525
3,791
-
14,316
9,766
361
3,251
13,378

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 £129,000 gain (2022: £407,000 gain) on investments comprises £109,000 realised gains and £20,000 unrealised gains (2022: realised gains of £291,000 and unrealised gains of £116,000). The results for the Charity are disclosed in Note 1 and on the balance sheet.

23

Consolidated and Charity balance sheets at 31 March 2023

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 Group & 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 Group & Charity Funds		 Group
Charity
Group
Charity
2023
£000
2023
£000
2022
£000
2022
£000
1,397
1,397
2,176
2,175
1,976
1,976
2,920
2,920
8,404
8,404
4,979
4,979
11,777
11,777
10,075
10,074
1,063
1,060
947
1,047
2,099
2,078
3,024
2,716
3,162
3,138
3,971
3,763
(623)
(540)
(668)
(534)
2,539
2,598
3,303
3,229
14,316
14,375
13,378
13,303
3,791
3,791
361
361
-
-
3,251
3,251
559
618
(123)
(198)
6,962
6,962
5,154
5,154
3,004
3,004
4,735
4,735
10,525
10,584
9,766
9,691
14,316
14,375
13,378
13,303

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 £938,000 (2022: surplus of £2,303,000). General Funds for the Group include funds retained by subsidiary entities of £221,000 (2022: £184,000).

The financial statements set out on pages 23 to 53 were approved by the Trustees on and signed on their behalf by:

Richard Oldfield, Trustee

13 October 2023

24

Consolidated cash flow statement for the year ended 31 March 2023

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
Revaluation of fixed assets
Revaluation of investment property
Increase in debtors
(Decrease)/Increase in creditors
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
2023
£000
Total
2022
£000
2,440
1,351
8
4
2
3
(25)
-
(3,650)
(800)
300
1,515
(3,365)
722
(925)
2,073
3,024
951
2,099
3,024
938
1,985
56
65
(128)
(407)
53
49
(8)
(4)
-
(4)
747
-
944
-
(116)
(217)
(46)
(116)
2,440
1,351
3,024
951
(925)
2,073
2,099
3,024

The above cash and cash equivalents at the end of the year of £2,099,000 (2022: £3,024,000) includes £84,000 (2022: £125,000) due to National Award Operators, £13,000 (2022: £8 International Award Foundation (Canada) and £0 (2022: £298,000) for The Beijing Intaward International Culture Development Company Limited.

25

Notes to the financial statements for the year ended 31 March 2023

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 financial statements have been prepared and rounded to the nearest thousand pounds.

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

and 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 (Company
Number)		 Country of
incorporation		 Registered Office Principle activity Share class Year end
Intaward Limited
(03961099)		 UK Award House,
7-10 St Matthew
Street,
London
SW1P 2JT		 Holding Company Ordinary 100% 31 March
International Award
Foundation (Canada)
(811708304RR0001)		 Canada 199 Bay Street
Toronto ON M5L 1G4
CANADA		 Carrying out the charitable
activities of the DoE
International Award		 - 31 March

No separate cash flow statement has been prepared for T 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. Please refer to Note 10.

(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 financial statements.

The Foundation made a sizeable surplus this year of £2.6 million before investment gains, revaluation of properties and sale of subsidiary. Surplus after these items total £938,000, this follows two successful years including a surplus

26

of £2.2million in the -term asset reserve were over £7.5 million, comprising a general fund of £0.6 million and a designated fund of £6.9 million.

The Trustees currently expect the results for the current year ending 31 March 2024 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 five-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.

(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.

(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.

27

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 partner 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. When income is received in advance of providing goods and services, the income is deferred until the Charity becomes entitled to the income.

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:

Grant income is recognised in line with the supply of services or activities contracted.

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.

Income from training and fundraising events is shown 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. Where income is raised through fundraising events held jointly with connected charities within the Association, only the share of that income which is attributable to the Foundation is recognised.

28

(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 subject to a desktop valuation by the Trustees with advice from a third-party real estate advisor and reflect the expected sales value of the property. An external valuation is obtained every 3 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.

(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.

29

(G) 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).

(H) OPERATING LEASES

Rental paid under operating leases is charged to the SOFA on a straight-line basis over the life of the lease. Where the amounts involved are insignificant operating leases may be charged to the SOFA as they are paid.

3: INCOME FROM DONATIONS

(A) DONATIONS AND LEGACIES

Donations - Individuals and Companies
Donations
Trusts and Foundations
Donations in kind (note 3b)		 Unrestricted
2023
Restricted
2023
Total
2023
Unrestricted
2022
Restricted
2022
Total
2022
£000
£000
£000
£000
£000
£000
3,829
567
4,396
3,592
322
3,914
329
287
616
399
63
462
31
-
31
20
-
20
4,189
854
5,043
4,011
385
4,396

Donations Individuals and Companies unrestricted funds includes £620,497 (2022: £607,121) in relation to The Individuals and Companies restricted funds includes nil (2022: nil)

Foundations unrestricted funds includes £75,264 (2022: £58,771) International Award Foundation (Canada) (2022: £58,771). Donations Trusts and Foundations restricted funds includes nil (2022: nil) in relation to The Duke of Edin

There was no donation income from the Beijing Intaward International Culture Development Company Limited during the year.

During the year, £358,495 (2022 - £230,590) 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.

30

(B) DONATIONS IN KIND

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

Legal, advisory services and professional fees
Events and donor support costs		 2023
£000
2022
£000
-
4
31
16
31
20

All income from Donations in Kind in 2023 and 2022 were unrestricted.

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
2023
Restricted
2023
Total
2023
Unrestricted
2022
Restricted
2022
Total
2022
£000
£000
£000
£000
£000
£000
490
-
490
459
-
459
312
-
312
77
-
77
901
-
901
758
-
758
82
-
82
116
-
116
4
101
105
-
208
208
-
-
-
16
-
16
-
-
-
-
-
-
1,789
101
1,890
1,426
208
1,634

Operator licence includes £112,819 (2022: £136,612), Online Record Book Independent Award Centres includes £83,154 (2022: £191,361) and Training income includes £19,156 (2022: £48,616) in relation to Beijing Intaward International Culture Development Company Limited. These are unrestricted funds.

31

5: INCOME FROM OTHER TRADING ACTIVITIES

Fundraising Events
Fundraising Auctions
Commercial Fee Income		 Unrestricted
2023
Restricted
2023
Total
2023
Total
2022
£000
£000
£000
£000
518
246
764
-
15
-
15
-
54
-
54
-
587
246
833
-

All Income from other trading activities in 2023 was unrestricted.

6: INVESTMENT INCOME

Investment income arises from:
Interest on other cash balances
Investment property		 Unrestricted
2023
Restricted
2023
Total
2023
Unrestricted
2022
Restricted
2022
Total
2022
£000
£000
£000
£000
£000
£000
2
-
2
1
-
1
1
5
6
1
2
3
3
5
8
2
2
4

32

7: EXPENDITURE

(A) EXPENDITURE ON CHARITABLE ACTIVITIES

Raising Funds
COSTS OF CHARITABLE ACTIVITIES
Development projects
Alumni
Information Management and Digital Development
Social Value
Supporting Adults in the Award
Core activities
Operating
Communicating
Resourcing
Total resources expended
Raising Funds
COSTS OF CHARITABLE ACTIVITIES
Development projects
Alumni
Information Management and Digital Development
Social Value
Supporting Adults in the Award
Core activities
Operating
Communicating
Resourcing
Total resources expended		 Directly charged
2023
Support Costs
2023
Total
2023
£000
£000
£000
817
266
1,083
45
-
45
198
-
198
97
-
97
131
-
131
471
-
471
1,473
631
2,104
228
188
416
982
136
1,118
2,683
955
3,638
3,971
1,221
5,192
Directly charged
2022
Support Costs
2022
Total
2022
£000
£000
£000
588
209
797
79
-
79
283
-
283
105
-
105
84
-
84
551
-
551
1,226
547
1,773
268
175
443
805
90
895
2,299
812
3,111
3,438
1,021
4,459

.

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

7: EXPENDITURE (CONTINUED)

(B) SUPPORT COSTS

Communications
Finance and Legal
General Management
Governance
Human Resources
Information Technology Costs
Office Costs
Property Costs
Total
Communications
Finance and Legal
General Management
Governance
Human Resources
Information Technology Costs
Office Costs
Property Costs
Total		 Raising Funds
2023
£000
Operating
2023
£000
Communicating
2023
£000
Resourcing
2023
£000
Total
2023
£000
-
2
-
-
2
120
285
85
61
551
25
59
18
13
115
17
41
12
9
79
13
30
9
6
58
48
114
34
25
221
9
22
6
5
42
33
79
24
17
153
265
632
188
136
1,221
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

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

7: EXPENDITURE (CONTINUED)

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 (2022: £17,000) has been directly charged to development projects Social Value. Restricted expenditure of £nil (2022: £138,000) has been directly charged to development projects Information Management and Digital Development.

Restricted expenditure of £684,000 (2022: £505,000) has been directly charged to Charitable activities core activities resourcing. Restricted expenditure of £95,000 (2022: £142,000) has been directly charged to Charitable activities core activities operating. Restricted expenditure of nil (2022: £5,000) has been directly charged to Charitable activities core activities communicating. Restricted expenditure of £35,000 (2022: £14,000) and restricted endowment expenditure of £nil (2022: £6,000) have been directly charged to Raising Funds. All other expenditure is unrestricted.

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

2023 2022
£000 £000
55 57
6 5
Fees payable to the 12 -
Tax services 4 3
Depreciation 28 65
Operating leases - -
Foreign exchange losses/(gains) 95 13

35

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

7: EXPENDITURE (CONTINUED)

(D) STAFF COSTS

Wages and salaries
Social security costs
Pension costs
Other staff costs		 2023
£000
2022
£000
1,565
1,879
179
240
118
136
591
405
2,453
2,660

(E) STAFF NUMBERS

Generating funds
Charitable activities
Average monthly full-time equivalent number of staff in the year		 2023
Number
2022
Number
8
8
29
36
37
44

(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		 2023
Number
2022
Number
2
8
1
-
0
2
3
1
0
1
6
12
2023
£000
2022
£000
33
57

36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

7: EXPENDITURE (CONTINUED)

During the year the senior leadership team consisted of the Secretary General (resigned 4 November 2022), the Chief Financial Officer (appointed 1 June 2022) and the Deputy Secretary General. Their combined emoluments for the year were £305,000 (2022: £341,000), including pension payments of £29,000 (2022: £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 Chief Financial Officer and Deputy Secretary General are the same as all other UK staff whereas the Secretary General had enhanced pension rights where the Foundation committed to higher levels of pension contributions.

(G) EX-GRATIA PAYMENTS

Compensation in 2023 was £3,000 paid to one employee (2022:£3,000 paid to one employee) for loss of office during the year. The payment comprised of between one and two notice period.

37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

7: EXPENDITURE (CONTINUED)

( H) GRANTS EXPENDITURE

Grants expenditure of £667,000 (2022: £465,000) has been charged to restricted charitable activities operating activities resourcing. The Foundation made 32 (2022: 42) grants, with a maximum value of £125,000 (2022: £51,000).

The following individual Grants were made to National Award Operators in the year:

----- Start of picture text -----
2023 2022
Grants to Grants to
Institutions Institutions
Bahamas Building Experiences Together 10 -
Bulgaria The Award in BG V2 - 23
Bulgaria The Award in Business - 6
Bulgaria The Inclusive Award 10 -
Cameroon Global Youth Mobilization Covid-19 recovery fund - 8
Canada Francophone Expansion - 20
Czech Republic - #Worldready Together 13 12
Czech Republic Global Youth Mobilization Covid-19 recovery fund 5 4
Czech Republic Stand By Me 125 -
Dominica R.I.S.E 5 5
Finland Accessible Award 8 8
Germany The Award at high-risk schools - 25
Germany Starke Teens NRW 15 15
Germany - Strong Teens Hesse 18 -
Ghana Gaining grounds - 15
Ghana Global Youth Mobilization Covid-19 recovery fund 16 7
Ghana Going Digital 10 10
Guinée - Le Mérite dans les Centres d'Accueil et les Orphelinats 6 6
Hong Kong - Global Youth Mobilization Covid-19 recovery fund - 6
India - Global Youth Mobilization Covid-19 recovery fund - 2
Israel Global Youth Mobilization Covid-19 recovery fund 7 5
Israel - Gap Year for Arab Israelis 12 -
Indonesia - #WorldReady for All 6 6
Jordan Project of Hope 29 -
Kenya Compass Project 41 17
Kenya - Global Youth Mobilization Covid-19 recovery fund 5 11
Malta Extending the Award in North Malta and Gozo - 1
Nepal Providing access and empowering youth living in homes - 13
Nepal - Global Youth Mobilization Covid-19 recovery fund - 4
Netherlands Growing the Award in the Netherlands - 51
Netherlands - Global Youth Mobilization Covid-19 recovery fund 3 5
Netherlands Award MDT Project - 10
Nigeria World Fellowship funds Development of the Award 4 5
----- End of picture text -----

38

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (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
Romania
Stand By Me
Slovakia
Global Youth Mobilization Covid-19 recovery fund
Slovakia
Stand By Me
Slovenia
Unlocking barriers to the growth of the Award
Slovenia
Global Youth Mobilization Covid-19 recovery fund
Slovenia
MEPI Career Academy
Slovenia
Psychology Training
South Africa
Youth award leaders
South Africa
Marginalised Youth
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
Zambia
Wildlife
Total		 9
5
-
5
-
33
-
11
95
-
5
4
124
-
-
17
-
7
7
8
5
-
10
16
18
-
-
6
-
10
8
8
3
6
-
10
14
14
10
10
10
-
667
465

39

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

8: TANGIBLE ASSETS

(A) GROUP

TANGIBLE ASSETS

GROUP
Cost at 1 April 2022
Additions
Disposals
Revaluation
Cost at 31 March
2023
Accumulated depreciation at 1
April 2022
Depreciation charge
Depreciation on
disposal
Accumulated depreciation at 31
March 2023
Net book value at 31 March 2023
Net book value at 31 March 2022		 Fixtures,
fittings &
furniture
£000
Computer
systems,
software &
infrastructure
£000
Motor
vehicles
£000
Freehold
Land and
Buildings
£000
Total
£000
292
60
56
2,173
2,581
-
25
-
-
25
(3)
(4)
(56)
-
(63)
-
-
-
(747)
(747)
289
81
-
1,426
1,796
(245)
(49)
(56)
(55)
(405)
(17)
(12)
-
(28)
(57)
3
4
56
-
63
(259)
(57)
-
(83)
(399)
30
24
-
1,343
1,397
47
10
-
2,118
2,175

(B) CHARITY

CHARITY
Cost at 1 April 2022
Additions
Disposals
Revaluation
Cost at 31 March 2023
Accumulated depreciation at 1 April
2022
Depreciation charge
Depreciation on disposal
Accumulated depreciation at 31
March 2023
Net book value at 31 March 2023
Net book value at 31 March 2022		 Fixtures,
fittings &
furniture
£000
Computer
systems,
software &
infrastructure
£000
Motor
vehicles
£000
Freehold
Land and
Buildings
£000
Total
£000
292
56
56
2,173
2,577
-
25
-
-
25
(3)
-
(56)
-
(59)
-
-
-
(747)
(747)
289
81
-
1,426
1,796
(246)
(45)
(56)
(55)
(402)
(17)
(12)
-
(28)
(57)
4
-
56
-
60
(259)
(57)
-
(83)
(399)
30
24
-
1,343
1,397
47
10
-
2,118
2,175

40

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

9: INVESTMENT PROPERTY

Fair value at 1 April
Fair value adjustment
Fair value at 31 March		 Group &
Charity
2023
£000
Group &
Charity
2022
£000
2,920
2,734
(944)
186
1,976
2,920

Investment property consists of the freehold interest in its UK Offices. These offices are partially occupied by the Foundation and partly held for lease to third parties. The Foundation intends to sell the property in FY24. The value of the property on donation receipt was £2,846k. A desktop valuation has been prepared with advice from a third party real estate advisor to establish the fair value at 31 March 23 and reflects the expected sales value of the property. The Foundation also holds a donated investment property in Portugal. The valuation of this property is based on the sales value of comparable properties within 3 months of the valuation date. Small amounts of rent and related expenditure are generated by it each year. The value of the property on donation receipt was £220k.

10: INVESTMENTS

(A) INVESTMENT PORTFOLIO

Investment portfolio at 1 April
Additions at cost
Drawdowns from Portfolio
Net investment gains
Investment Manager Fees
Market value of holdings at 31 March		 Group &
Charity
2023
£000
Group &
Charity
2022
£000
4,979
5,336
3,650
800
(300)
(1,515)
129
407
(54)
(49)
8,404
4,979
Ruffer Absolute Return Fund
Investec
Investment portfolio at 31 March		 Group &
Charity
2023
£000
Group &
Charity
2022
£000
5,494
4,979
2,910
-
8,404
4,979

41

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

10: INVESTMENTS (CONTINUED)

The drawdowns from the portfolio reflect the management of short-term cash outflows. The original cost of the investment portfolio is £5,900,000 (2022: £2,550,000).

During the year the Foundation had investment gains of £128,000 (2022: gains of £407,000). These have been allocated to the development fund, restricted endowment fund and restricted fund in accordance with the investment balances held in those funds calculated on a monthly basis. During the year the Foundation invested £3,650,000 in line with our aim to rebuild our long-term reserves. Realised gains arising in the year of £109,000 (2022: gains of £291,000) relate to the Development fund. Investments comprise cash and cash equivalents and listed investments.

(B) SUBSIDIARY UNDERTAKINGS

Registered Name Country of
incorporation		 Principle activity Share class and
% shares held		 Year end
Intaward Limited UK HoldingCompany Ordinary100% 31 March
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. See Note 10(C).

42

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

10: INVESTMENTS (CONTINUED)

(C) FINANCIAL RESULTS OF SUBSIDIARIES

Investment in:
Cost at 1 April 2022
Additions
Impairment
Cost at 31 March 2023
At 31 March 2023
Assets
Liabilities
Reserves
2022-23
Income
Expenditure
Net (deficit)/surplus
At 31 March 2022
Assets
Liabilities
Reserves
2021-22
Income
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
International Award
Foundation (Canada)
£000s
£000s
£000s
158
-
13
(153)
-
(84)
5
-
(72)
(to 21 September
2022)
95
164
759
(69)
(48)
(835)
26
116
(76)
-
322
8
(21)
(121)
(4)
(21)
201
4
-
532
698
(8)
(275)
(1,074)
(8)
257
(376)

In light of

education and foreign ownership of companies operating in China, the Beijing Intaward International Culture Development Company Limited was sold during the year for consideration of £205,000. Income and Expenditure of of 21 September 2022 and a loss on disposal has been recognised of £82,000.

43

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

11: DEBTORS

Trade debtors
Other debtors
Accrued income
Prepayments
Amounts due from Subsidiary		 Group
2023
£000
Charity
2023
£000
Group
2022
£000
Charity
2022
£000
395
245
227
207
2
2
23
23
607
607
534
534
59
59
163
160
-
147
-
123
1,063
1,060
947
1,047

12: CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
Accruals		 Group
2023
£000
Charity
2023
£000
Group
2022
£000
Charity
2022
£000
63
63
69
66
269
196
403
282
291
281
196
187
623
540
668
535

13: TAXATION

The tax charge for ordinary activities is £nil (2022: £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 purposes.

44

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 14: FUNDS

(A) MOVEMENT

Year ended 31 March 2023
Balance at 31 March 2022
Income
Expenditure
Unrealised gains on investments
Realised gains on investments
Revaluation of Investment
Property
Revaluation of Fixed assets
Loss on sale of subsidiary
Transfer between funds
Balance at 31 March 2023
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
Loss on sale of subsidiary
Transfer between funds
Balance 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
(123)
5,154
4,735
9,766
361
3,251
13,378
4,187
2,381
-
6,568
1,206
-
7,774
(3,435)
(741)
(30)
(4,206)
(986)
-
(5,192)
-
71
-
71
58
(109)
20
-
109
-
109
-
-
109
-
-
(954)
(954)
10
(944)
-
-
(747)
(747)
-
-
(747)
(82)
-
-
(82)
-
-
(82)
12
(12)
-
-
3,142
(3,142)
-
559
6,962
3,004
10,525
3,791
-
14,316
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 for the Group include funds retained by subsidiary entities of £221,000 (2022: £184,000).

45

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 14: FUNDS (CONTINUED)

(B) NET ASSETS

Year ended 31 March 2023
Tangible assets
Investment Property
Investment portfolio
Net current assets
Net assets at 31 March 2023		 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
46
-
1,350
1,396
-
-
1,397
-
-
1,654
1,654
322
-
1,976
-
5,182
-
5,182
3,222
-
8,404
513
1,780
-
2,293
247
-
2,539
559
6,962
3,004
10,525
3,791
-
14,316
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

46

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (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 2023 these amounted to £6,962,000 (2023: £5,154,000). The principal designated funds are:

23: £5,154,000). The principal designated funds are:
NAME OF FUND PURPOSE EXPECTED TIMING OF
EXPENDITURE
Supporting Adults A programme to develop and improve our support for To be expended by
in the Award Award Operators, volunteers and staff. 2023/24
Digital Online Record Book developments to provide long-term To be expended by
Development improvements with the objective that the Association 2023/24
achieves 80% adoption of this digital platform.
Alumni Launch of a Global Alumni Network and its digital Fully expended during
platform - promoting and protecting the Award brand. 2022/23
Social Value Roll-out of social value research to NAOs, measuring the Fully expended during
social value of the Award and capacity building within the 2022/23
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.

47

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 14: FUNDS (CONTINUED)

(C) DESIGNATED FUNDS (CONTINUED)

Movements on designated funds in the year were:

Year ended 31 March 2023
Supporting Adults in the Award
Digital Development
Alumni
Social Value
Development Fund
Founders 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 2023
Supporting Adults in the Award
Digital Development
Alumni
Social Value
Development Fund
Founders Fund
Total
Year ended 31 March 2022
Supporting Adults in the
Award
Digital Development
Alumni
Social Value
Development Fund
Founders Fund
Total		 1 April
2022
£000
Income
£000
Expenditure
£000
Transfer
of funds
£000
Investment
Gains
£000
31 March
2023
£000
107
-
(131)
185
-
161
145
-
(139)
241
-
247
43
-
(51)
8
-
-
108
-
(96)
(12)
-
-
2,503
-
(75)
(434)
169
2,163
2,248
2,381
(249)
-
11
4,391
5,154
2,381
(741)
(12)
180
6,962
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

48

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (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 23 restricted funds at the end of the year (20222: 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. 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. These funds became available in 2022/23.

WHO/Global Youth Mobilisation Fund of the project team and to grant fund to National Award Operators for youth mobilisation project. Stand by Me Funds given to the Foundation in response to the invasion of Ukraine, intended to support young people through the award in Ukraine, Czech Republic, Slovakia and Romania.

49

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED) 14: FUNDS (CONTINUED)

(D) RESTRICTED FUNDS (CONTINUED)

Movements on restricted funds in the year were:

Year ended 31 March 2023
Region/Country Specific Funds
- Nigeria
- Anglo American Brazil
- Other Region/Country Restricted
Kenya Compass Project
Creating Centres of Excellence Project
Afrika Tikkun
International Special Projects
Tanaka Fund
Other Restricted
Digital Development
Global Activity Fund
WHO/Global Youth Mobilisation Fund
Stand by Me
Total		 1 April
2022
£000
Income
£000
Expenditure
£000
Investment
gains /
£000
Transfer
of funds
£000
31 March
2023
£000
85
29
(7)
-
-
107
93
-
-
-
-
93
46
-
-
-
-
46
82
50
(93)
-
-
39
13
10
-
-
-
23
68
63
(62)
-
-
69
(111)
285
(236)
68
3,142
3,148
41
-
(10)
-
-
31
42
-
-
-
-
42
2
-
-
-
-
2
-
50
(50)
-
-
-
-
101
(101)
-
-
--
-
618
(428)
-
-
190
361
1,206
(987)
68
3,142
3,790

50

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

(D) RESTRICTED FUNDS (CONTINUED)

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
International 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
gains
£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

(E) ENDOWMENT FUNDS

Movements on endowment funds in the year were:

Year ended 31 March 2023
Ono Funds
Special Projects
Total		 1 April
2022
£000
Income
£000
Expenditure
£000
Investment
losses
£000
Transfer
of funds
£000
31 March
2023
£000
924
-
-
(11)
(913)
-
2,327
-
-
(98)
(2,229)
-
3,251
-
-
(109)
(3,142)
-

51

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

14: FUNDS (CONTINUED)

(E) ENDOWMENT FUNDS (CONTINUED)

On 23 expenditure of the capital. Agreement from the Charity Commission was granted on 1 November 2022. This has resulted in a transfer of £3,142,000 to restricted funds.

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

15: RELATED PARTY TRANSACTIONS

Four (2022: Three) Trustees or companies connected with Trustees are fully paid Members, Fellows or Corporate Fellows of the World Fellowship. During the year five Trustees made donations totalling £258,500 (2022: two Trustees £84,000) of which £16,500 (2022: £33,000) was restricted to the Nigeria fund, £50,000 was restricted to the Kenyan Compass Project, £50,000 for Global Activity and £0 (2022: £2,000) 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 £1,498 were reimbursed to two Trustees, (2022: one Trustee £3,750). The Foundation has purchased third-party indemnity insurance for the Trustees, this was in place for the entire year under review.

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.

Leadership Team is a member of the Board of Award USA, the licensed national operator for the USA. One grant payment was made to Award USA during the year of £14,000 (2022 - £14,000).

Transactions with Intaward Limited in the year are detailed below:

Balance Sheet items 2023 2022
£000 £000
Loan to Intaward 23 7

52

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 2023 2022
£000 £000
Donation received - -
Set up and operating costs - 2

are detailed below:

Income and expenditure items 2023 2022
£000 £000
Service Agreement 769 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 2023 the Foundation contributed £112,000 (2022: £136,000) 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 2023 £6,000 (2022: £12,000) was due to be paid to Scottish Widows.

17: POST BALANCE SHEET EVENTS

No post Balance Sheet Events to note.

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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, these are in the process of being updated.

The Founder of the Award is His Royal Highness, The Prince Philip, the late Duke of Edinburgh KG, KT.

CHARITABLE OBJECTIVES

Award for the development of character, good citizenship and education of young people worldwide

GROUP STRUCTURE

The Foundation has invested in subsidiary undertakings in the UK and overseas. These have been Foundation. The names, 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

The Foundation has responsibility for facilitating the worldwide development of The Duke of holds a substantial presence, the Foundation licenses self-governing entities, National Award Operators, to run and maintain the operation of the Award. In other countries the Award may be run by Independent Award Centres (schools or organisations) that are directly licensed and supported by the Foundation.

AWARD 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.

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THE INTERNATIONAL COUNCIL

Between each Forum, Trustees, the Secretary General, Award Operators and Emerging Leader Representatives[4] gives effect to decisions taken at Forum and provides advice in relation to international development and operational policy.

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.

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 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.

4 Emerging Leader Representatives are Gold Award holders who actively contribute to the Award in their community; represent Award participants and take the global youth perspective to the Association and International Council

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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:

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MEMBERS OF THE BOARD OF TRUSTEES AND ITS SUB-COMMITTEES

The following table shows the membership of the sub-committees during the year:

----- Start of picture text -----
Finance, Nominations Remuneration Safeguarding
Audit and and Serious
Property Incidents
Reporting
His Royal Highness Prince Edward,
The The Duke of Edinburgh KG,
GCVO (Chair)
Alka Barot
Paul Bell (retired 15 October 2022) (until
October 2022)
The Rt Hon The Lord Boateng PC (until
DL October
(retired 15 October 2022) 2022)
Rock Chen
Adebayo Olawale Edun (until (until March
March 2023)
2023)
The Rt. Hon. The Baroness Fall (from March
(appointed 15 October 2022) 2023)
Anita Jacoby AM (appointed 15 (from (from
October 2022) March 2023) March 2023)
Muhoho Kenyatta (appointed 15 (from
October 2022) March
2023)
Muna Issa * (Chair from
March 2023)
Richard Oldfield (appointed 15 * (from (from March
October 2022) October 2023)
2022)
Andrew Smith (retired 15 October * (until (until
2022) October October 2022)
2022)
Garth Weston (retired 15 October * (until
2022) October 2022)
Dr Howard Williamson CVO CBE
----- End of picture text -----

Denotes Chair

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OTHER ADVISORY COMMITTEES

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Managing Responsibly

team is 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 Duke of Edinburgh 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 making the Trustees aware of the need for any nts.

SENIOR LEADERSHIP TEAM :

The Foundation had an average of 37 (2022: 45) 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.

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 168,520 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.

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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 management team are addressing the key points identified in the survey. In accordance with the practices in the 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 receivable are presented in our financ -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.

The Foundation adheres to all relevant Institute of Fundraising guidance as well as the Fundraising fundraisers clearly understand the standards we expect when representing us and when speaking to personal data very seriously. All of our supporters can 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 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 risk, there is a comprehensive risk register and risk management process in place. The risk register is regularly reviewed and updated by the Senior Management 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:

----- Start of picture text -----
Highest Scoring Risks Mitigations
Safeguarding Regular review and monitoring of our policies and
A failure to take all reasonable procedures for safeguarding young people and vulnerable
measures to protect individual adults
participants, volunteers or staff
Continue to ensure clarity of responsibility, under the
resulting in significant harm to
licence, of Award Operators and individual units to
individuals and erosion of trust.
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 Development and diversification of our income plans so
Financial resourcing shortfall that less reliance is placed on income from key individuals
from loss of income due to over
Further development of income from non-fundraising
reliance on key individuals, sources
inadequate donor due
Continue development of our donor and events
diligence, donor's interest or
programme so that they remain relevant to our donors
ability to support declines.
Continued improvement of income-related systems,
Failure to deliver obligations of
processes and reporting so that we develop a better
programmes funded by our
partners knowledge of all sources of income
Appropriate reserves policy
Trustee approved annual budget and medium-term
financial plans
Continued monitoring and evaluation of all partnerships
----- End of picture text -----

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----- Start of picture text -----
Brand Reputation All necessary policies, procedures and manuals exist, are
The risk arising from complied with and are regularly reviewed/updated. This
association with the wrong includes event risk reviews, donor due diligence,
people and/or that these
safeguarding, HR, finance, whistleblowing, licensing and
people may want to use the
related party transactions
brand/ trademark in a way that
Proactive promotion of equality and diversity in all that we
is damaging to us as an
do
organisation
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
IT Systems Fully tested business continuity plans and regular system
Failures in digital security back-ups
resulting in data breaches
Increased staff awareness re digital risks
causing significant detriment to
Firewalls and password controls
our reputation, substantial
Compliance with data legislation
fines or significant business
Ensure appropriate cyber insurance is in place
interruption from the loss of
Contracts in place for supplier support and cloud-based
personal or business-critical
data. Potential for misuse of hosting
data, cyber attack or breaches Data protection policies in place
of regulations due to third Business continuity plans
party integrations Use of industry standard tools and systems
Staffing Commitment to supporting employee wellbeing
Loss of senior staff and Commitment to ensuring the Foundation remains an
Trustees may lead to loss of attractive place to work and that we continue to recruit,
skill, organisational knowledge, train, support and retain our high-quality staff
experience and expertise. Regular reviews of our benefits package including hybrid-
High staff stress levels and poor flexible working.
staff engagement/morale Regular review of our staff offering to ensure we remain
competitive.
Regular performance reviews and staff training.
The first cohort of mental health first aiders were trained
in the year.
----- End of picture text -----

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SOCIAL RESPONSIBILITY

The Foundation is committed to ensuring that it is a socially responsible organisation. As part of this commitment, 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. The Foundation has clear and accessible employee policies relating to equal opportunities, maternity, paternity and adoption leave, and a flexible, hybrid working policy. All employees are encouraged to act in a socially responsible manner and respect the environment in which they operate.

  2. Environment: The Foundation actively seeks ways to reduce the impact of its activities on the environment. We encourage sustainable environmental policies within the workplace.

  3. Investment: Ensuring our investments are directed towards socially responsible options. The he Foundation will invest in funds whose

investment managers can demonstrate active engagement with invested companies to achieve better environmental and social impacts.

  1. Constituents: Being open, responsive and aware of our global Award family. The Foundation aims to be an organisation that is open, responsive, and aware of the particular interests and needs of stakeholders. To achieve this, we encourage participation by way of consultation; we provide feedback through All Association calls, regional meetings and newsletters and publications; and we ensure our website is kept up-to-date.

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

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

  4. Suppliers: Working towards an ethical purchasing policy, which includes a focus on sustainable, Fair-Trade products wherever possible.

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Responsibilities

The Trustees (who are, for the purposes of company law, 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 affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity 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 disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006/Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the Trust deed. 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.

United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other

of the financial statements contained 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 t

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

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

Margaret Fountain CM

Benefactors

Court of the Crown Prince of Bahrain Victor Dahdaleh James Dicke II Julia and Guy Hands Daisy Ho - EPH Dr Selva and Mrs Tharshiny Pankaj Pears Foundation Dr. Abdul Samad Rabiu Ms Makiko Tanaka, Tanaka Memorial Foundation The Bamford Charitable Foundation Versailles Foundation Herbert Wigwe

The William Birchall Foundation Patrick Curran Ian D. and Deborah J. Fair Mehmet Gultekin Professor George E Holmes DL Muhoho Kenyatta Jan Sykora, WOOD & Company Dr Andrew S. Yuen Jiri and Jitka Zrust

World Fellows and other Major Donors

Gregory S. Belton C.V.O., C.M., KC*HS, LL.D Joan M. Benham Dr Keith G Bradshaw OBE DL The Braithwaite Family Foundation Sir Trevor Carmichael, KA, LVO, KC Fulvio and Maria Eugenia Ceoldo Dhiren Chandaria Ishtar Chandaria Nikita Chandaria Sagar Chandaria Dr Calvin Choi Harry Collins MVO Joanna Collins AM Josh Collins Rob and Linda Davies Sir Mick and Lady Barbara Davis Ellen Kathrine Dyvik and Dr Nicolaus P. Henke Olawale Edun Katherine Anne Elza Ringo Francis David and Megan Frost

Jeff and Christine Gooch Caroline Green Alison and Mark Hesketh Erika-Elisabeta Hristea Muna Issa Michal Jelinek Jemima Jones William Jones André Jordan OBE Mr and Mrs C M Logothetis Gianluca Marchetti Pavel Nepala Dr Tunji Olowolafe Tommaso Pompei Stephen Riady Foundation John Sleeman, CM, LL.D The Stoller Charitable Trust Madeleine and Roy Swainbank Stephanie Wilson Alastair Wong

Partners and Corporate Supporters

Halcyon Gallery Hakluyt & Company Ltd The Holder Family HSBC Bank plc The Macquarie Group Foundation The Mastercard Foundation This Day Stonehage Fleming Services Limited UNICEF

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REFERENCE AND ADMINISTRATIVE

DETAILS

Chairman: HRH The Duke of Edinburgh KG GCVO

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

REGISTERED OFFICE: Award House 7-11 St Matthew Street London SW1P 2JT

The Duke of Edinburgh's International Award Foundation

INVESTMENT MANAGERS : Ruffer LLP 80 Victoria Street London SW1E 5JL Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QP 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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