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2021-03-31-accounts

The Prince’s Trust Group

ANNUAL REPORT AND ACCOUNTS 2020/21

Annual Report and Accounts 2020/21 1

The help and encouragement I received was amazing. I’m grateful to The Prince’s Trust for all their support in helping me achieve a better life, not just for me, but for my family. –Hassan

CONTENTS

CONTENTS
Thank you 2
Foreword 4
Welcome 5
Charlotte’s story 6
Our Strategy 2021–25 7
Our core programmes 10
Our delivery in 2020/21 12
Fundraising for our work 18
Fundraising governance 19
Governance 20
Trustees’ Risk Statement 21
Organisational structure, governance and management 23
The Prince’s Trust family 26
Introduction 27
Where we work 28
Prince’s Trust International 30
Prince’s Trust Australia 32
Prince’s Trust Aotearoa New Zealand 34
Prince’s Trust Canada 36
Prince’s Trust USA 38
Achievements and performance – Group 39
Statement of the Trustees’ responsibilities 42
Reference and administrative details 43
Independent auditors’ report to the Trustees 44
Financial statements 48
Additional unaudited information 86

2 The Prince’s Trust Group Trustees’ Report

THANK YOU

“I was out of work for four years before I was able to start my career in logistics. Being unemployed for so long was really tough for me, and I had started to lose all confidence in myself and my abilities.

“When I finished the programme I secured a logistics role – it was a great feeling! I enjoyed working there but was made redundant after 15 months. Shortly after that, my dad passed away unexpectedly and soon after, so did my grandad. I was devastated.

“I applied for so many jobs but never received replies. I started to think that the fact I may need more support at work due to my visual impairment and learning disability was affecting my chances. It was a difficult time and I started to feel very isolated.

“Having a permanent job means so much to me. I can now contribute at home, buy my own clothes, learn to drive and plan for my future.

“I’m so thankful to The Prince’s Trust, their staff and their supporters for never giving up on me and always believing in me. They were there when I needed them the most and have helped me to feel good about myself and my future again.”

“My mum never forgot the support I received from The Prince’s Trust, so she contacted them again to see if they could help me. Soon afterwards I joined The Prince’s Trust Get into Logistics with Marks & Spencer programme. I’m now a permanent member of staff and have been working for M&S for more than a year now.

“My parents told me about The Prince’s Trust and I’m so glad they did. I realised I could get the support I was looking for. It wasn’t long before I signed up for employment skills training and got introduced to a Prince’s Trust mentor.

–Jhorvis

“I took part in The Prince’s Trust Get Started with Football programme, which really helped me to build my confidence. I started to feel like myself again and regained the motivation I needed to look for jobs.

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I’m so thankful to
The Prince’s Trust, their
staff and their supporters
for never giving up on me
and always believing in me.
They were there when I
needed them the
most and have
helped me to
me to feel good
about myself
and my future
again.
–Jhorvis
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Annual Report and Accounts 2020/21 5

4 The Prince’s Trust Group Trustees’ Report

FOREWORD from John Booth DL, Chairman

people with the opportunities they need to succeed in work, education or self‑employment.

I have been a supporter of The Prince’s Trust for many years and am regularly inspired and moved by young people who, with our help, have succeeded in transforming their lives. Their stories motivate us to continue The Trust’s vital mission as work and social life open up again.

For 45 years, the vision of His Royal Highness The Prince of Wales has been to support young people who face disadvantage and adversity, so that they can overcome any challenges life has thrown at them and ultimately become independent members of society. His vision – and ours – recognises the immense potential of young people given the right support and guidance.

Through our work with communities, schools, colleges and employers, we can enable and empower young people to fulfil their potential in education, land their first job, get back into employment or start their own business. Building skills, confidence and resilience in young people not only shows that we believe in them; it is a commitment to ourselves and to the future of our society as we recover from these unusually challenging times.

The coronavirus pandemic has brought additional and complex challenges for young people. These include disruption to education and training, as well as the impact of social distancing on family life and friendships at a key stage in their development. On top of this, unemployment has fallen disproportionately hard on them as sectors, such as hospitality and retail, have been hard hit by the series of lockdowns.

To help equip more young people with the skills they need for the jobs of today – and the jobs of tomorrow – The Trust is committed to working collaboratively, and we are part of an international effort to help young people learn and plan their future careers.

The desire to respect and care for the environment in the job opportunities we source, for example, is truly a global one, and I am proud of how The Prince’s Trust Group has worked to prioritise sustainable jobs in the green economy. It is an area of work which will benefit enormously from

In the face of these unprecedented challenges our community of colleagues, partners, supporters and volunteers have been resilient and remain more committed than ever to connecting young

harnessing young people’s dedication to tackling some of the most pressing issues facing our planet, issues on which our Founder has shown such strong leadership.

You can read more about Prince’s Trust International and our sister charities in Australia, Aotearoa New Zealand, Canada and the USA from Group Chief Executive, Dame Martina Milburn, later in the report.

I would like to say a particular thank you to everyone who has supported our work in this time of uncertainty — it has been appreciated more than ever. Huge thanks also are due to my fellow Trustees and to our incredible team of colleagues, volunteers and delivery partners who work tirelessly together to give their support and guidance to young people across the UK.

In addition, on behalf of the whole Prince’s Trust community, our thanks go to His Royal Highness The Prince of Wales, for his passion and endless dedication to young people here in the UK, and around the world.

John Booth DL

Chairman The Prince’s Trust

WELCOME

from Jonathan Townsend, UK Chief Executive

are equipped with both the skills they need for their future as well as the confidence and self‑belief to achieve their goals.

We are simply not willing to let the devastation of this pandemic affect a generation of young people who we know – with the right support, skills, and confidence – can go on to achieve great things; not just for themselves but for their families and for society as a whole.

In periods of economic hardship and uncertainty, it is often young people who face the most significant challenges. Not only has the last year disrupted young people’s education and employment, but these areas remain unstable and fraught with additional hurdles on top of what is already an extremely difficult time in any young person’s life.

This work is, and continues to be, a great collective effort. We are fortunate enough to have the incredible support and generosity of individuals who give vital donations to our programmes, and who form an army of volunteers helping young people into jobs, education and training.

We are immensely grateful and proud of the partnerships that we have developed and nurtured, which not only help fund our work but provide work placements, support young people to upskill and retrain, and build aspiration and resilience.

We saw young people consistently account for over half of the fall in employment as the pandemic hit the jobs market. The toll on young people’s mental wellbeing is in danger of fuelling a cycle of poor mental health and unemployment that we know can cause ripple effects long into their futures.

Our partnership with the Department for Health and Social Care in England continues to create a pipeline of diverse, skilled talent into health and social care jobs. This year we are delighted to partner with employers in a range of sectors to deliver the Government’s Kickstart scheme – providing unemployed young people with essential skills and experience for work.

We have also seen a widening of the inequalities between young people across the country, with those who were already facing disadvantage pushed further away from support.

At The Prince’s Trust, it is time to work harder than ever to ensure that the most disadvantaged young people in our society

Thanks to all our supporters, we have been able to help more than 46,000 young people during this last year of the pandemic, delivering virtually and, where possible, in person.

These remain, however, incredibly challenging times – for young people and for The Trust. We cannot ignore the financial landscape left behind by the pandemic, which has created a very uncertain fundraising environment.

The Trust will continue to work with government, employers and communities to help tackle inequality and the cycle of youth unemployment and poor mental health.

As we look to the coming year, we know there is a considerable journey of recovery ahead. The Trust will stand alongside young people every step of the way, providing support, guidance and enabling them to look forward to very bright futures.

Jonathan Townsend

UK Chief Executive The Prince’s Trust

Annual Report and Accounts 2020/21 7

OUR STRATEGY 2021–25

Charlotte made a huge career change during the pandemic.

“Before lockdown, I’d been working at McDonald’s for 10 years. I enjoyed working there but didn’t want it to be my forever job. When my role was furloughed during the pandemic, I realised I had an opportunity to retrain and move into a different line of work.

“Other people on the course had no tech industry experience either, so we all learned together. At the end we sat an exam and I gained an AWS Certified Cloud Practitioner qualification.

“We also completed lots of employability workshops on the course about confidence, practice interviews and how to set up a LinkedIn account. All this helped me to feel more confident and to get into the right mindset.

“I’ve always been interested in tech products and liked the idea of being part of an exciting new industry. The problem was I didn’t really know what skills were required for a tech job – it was hard to know where to start.

“I didn’t think I’d find a job so quickly after the course. It’s a great feeling to have started my career in tech and I’m determined to keep learning and pick up more qualifications in the future.”

“After setting up my LinkedIn account and posting about my new qualification, I received a message that cloud tech company Matillion was hiring. I was nervous because I didn’t know everything required for the job, but they understood my skill levels from the course Charlotte and I’m pleased to say I’m now working for them as an Associate Solutions Engineer.

“I applied for The Prince’s Trust and Generation Amazon Web Services (AWS) Re/start course and it turned out to be exactly what I needed. The course covered such a wide range of skills and introduced me to lots of different programming languages. I got a laptop from The Trust to learn with too.

Our Vision

Every young person should have the chance to succeed.

Public benefit

Our Values

Our values are at the heart of everything we do. We operate in a way which is:

In accordance with Charity Commission guidance on public benefit (section 17 of Charities Act 2011), The Prince’s Trust achieves this by:

Our Purpose

The primary objective of The Prince’s Trust, as defined by its Royal Charter, is:

“To promote by all charitable means the mental, spiritual, moral and physical development and improvement of young people, and to provide opportunities for them to develop to their full capacities and enable them to become responsible members of society so that their conditions of life may be improved.”

Our Strategy for 2021–25 will give more young people the opportunity to create a better future.

Our Mission is to help young people transform their lives by developing the confidence and skills to live, learn and earn.

Our Ambition over the next five years is to give more disadvantaged young people the opportunity to create a better future through employment, education and enterprise.

Our Strategic Aims

Be there for young people today and maximise our impact.

We will help young people from disadvantaged communities and those facing the greatest adversity, supporting them on a pathway to employment; and we will strive to maximise our reach and impact.

Strengthen our Prince’s Trust support network for young people.

It is our aim to strengthen our Prince’s Trust community of supporters, employers, delivery partners, volunteers and colleagues, to create an unparalleled network of support and opportunity for young people.

Build for a better future for young people.

We will build a financially sustainable organisation, which is led by insight and impact; and we will align our programmes with the future economy to give young people the best chance of success in the years to come.

Annual Report and Accounts 2020/21 9

8 The Prince’s Trust Group Trustees’ Report

Our Safeguarding Commitment

Mental Wellbeing

People

The Prince’s Trust believes The Prince’s Trust is committed that all children and young to being a great place to work. people have the right to We recognise that releasing protection from harm, abuse, the potential of each of our and exploitation, and we talented colleagues and are dedicated to protecting volunteers means we can be all children and young there for young people. people participating on our programmes and activities. We continue to have a strong

While we are not a mental health charity, a high percentage of the young people we work with report mental wellbeing challenges. We will continue to enhance our delivery to ensure we are supporting these young people, and develop partnerships at a local and national level to help young people to access the support they need. We have also launched a set of mental health principles internally to support colleagues, and a range of resources, including training content. These will promote positive wellbeing as well as building our internal knowledge in mental health issues.

programmes and activities. We continue to have a strong focus on development and Equality, Diversity and performance. We have Inclusion launched and embedded the Our ambition is for The Prince’s ‘Open Blend’ platform which Trust to be one of the UK’s most supports the development and equal, diverse and inclusive performance of our colleagues organisations serving young through combining wellbeing, people. The Prince’s Trust is fully development and the setting of committed to promoting and objectives. We are continuing supporting equality, diversity to develop our online learning and inclusion. and we have benefited from a large offering of virtual learning Our employee network groups opportunities during the support colleagues to bring extended period of working their true selves to work; and away from our centres.

Our employee network groups support colleagues to bring their true selves to work; and are led by some of our most inspiring and passionate colleagues. These networks focus on cultural awareness, the LGBTQIA+ community, disability and women. The Prince’s Trust works to support and amplify their work, ensuring we provide an inclusive environment where everyone can thrive. Focus areas include: reviews of our policies and practices, understanding our data and identifying learning opportunities for colleagues.

Health and Safety

away from our centres. The Prince’s Trust is committed to preventing harm and The coming year will see us achieving high standards in launch a new approach to health and safety across all our talent management, ensuring operations. To do this, we have we have a deep knowledge developed and implemented of the talent that exists in the a robust Safety Management organisation and are able to System that meets the optimise the impact of that requirements of ISO 45001, through to delivering our best the International Standard for work for young people. occupational health and safety. During 2020/21, we formed a National Coronavirus Response Group to monitor the impact of the pandemic and keep young people safe. We supported the wellbeing of our colleagues by enabling them to work from home and took a risk‑based approach to re‑opening our delivery centres, adding control measures. This created a safe space for colleagues to continue to support young people.

The Black Equity Action Group that was formed in 2020 continues to drive action and focus on building race equity with our colleagues, volunteers, partners and young people. This includes identifying opportunities and making recommendations on how we can enhance our outreach through community engagement activities.

Reputation

The Prince’s Trust continues to take great care in the management of its reputation. This begins with effective risk management; taking good decisions around the partners we choose to work with and keeping our promises to young people and partners.

We continue to raise awareness and understanding among the public through regular media campaigns around the issues that affect young people, including our annual Youth Index. Highlighting the mental health challenges that young people face in an increasingly uncertain world, the Youth Index is gaining a reputation as a key indicator of young people’s happiness and confidence.

Demonstrating the outstanding achievements of young people, our annual Prince’s Trust Awards share the life‑changing stories of inspirational young people and the mentors who support them.

We engage our Prince’s Trust community of supporters through social media. Thanks to our network of Young Ambassadors, celebrity Ambassadors and a growing list of social media influencers, we use digital media to spread positive messages and engage young people who we might struggle to reach through our traditional channels.

Through our public affairs responsibilities, we work with Ministers, MPs and representatives of devolved administrations to understand more clearly the real‑life experiences of young people. We achieve this through visits to our programmes, targeted focus groups and sharing expertise to support policy development in areas such as youth employment and apprenticeships.

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Team 34
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Annual Report and Accounts 2020/21 11

10 The Prince’s Trust Group Trustees’ Report

OUR CORE PROGRAMMES

There for young people

The Prince’s Trust exists to support young people aged 11 to 30 to move into work, education or training. Our programmes are designed to help young people raise their aspirations and move forward with their lives, regardless of any challenges they may be facing.

Our programmes help young people at risk of exclusion to stay in school and continue to learn; they develop the confidence and motivation of unemployed young people to turn their lives around; and they support young people to develop their skills to find work or start their own business.

Our core programmes

Education

Achieve is our largest programme. Delivered by schools and The Prince’s Trust, it helps young people who may be struggling with mainstream education or who may have been excluded. Increasingly schools are using Achieve for a broader range of pupils as part of their life skills curriculum. The fun, informal atmosphere helps young people to engage with learning.

Mosaic is a school‑based mentoring programme. It gives young people access to inspirational and relatable role‑model mentors, and has been proven to boost their confidence, resilience and long‑term employability.

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Aisa
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Enterprise Challenge (part

of Mosaic) is an inter‑school competition for young people aged 11–16 who are supported by trained mentors to develop their confidence, team‑working skills and understanding of the world of work.

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Bernadetta
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Get Started includes short courses that engage young people through the arts or sport and support them into further education, training or employment. The programme energises young people, helping them gain the confidence and motivation to move forward with their lives.

Get into equips young people with the skills and experience needed for the jobs of the future. The programme is delivered in partnership with employers and training providers. We help young people to secure entry‑level roles across a range of sectors including technology, healthcare, logistics, hospitality and retail.

Employability

Explore is a flexible programme that offers one‑to‑one support and group activities for young people who need support to bring structure and stability into their lives. The programme is tailored to each individual’s needs and can offer long‑term support.

Team is a 12‑week personal development programme which includes outdoor activities, work experience and a community project. Team aims to develop young people’s self‑confidence and leadership skills.

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Sophie
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Enterprise

The Enterprise programme helps young entrepreneurs to explore if self‑employment could be for them. Enterprise offers training, mentoring and funding to help young people generate and test business ideas, write business plans and ultimately start their own business.

Development Awards are small grants which help young people to access education, training or employment. This includes assistance with course fees, childcare costs and equipment for their job.

Annual Report and Accounts 2020/21 13

12 The Prince’s Trust Group Trustees’ Report

OUR DELIVERY IN 2020/21

The Prince’s Trust supported 46,834 young people during 2020/21, operating from our Prince’s Trust youth centres, through online delivery and working with just over 650 delivery partners (including 290 schools and colleges). This compared with 70,181 young people supported in 2019/20, prior to the pandemic.

At 31 March 2021, 17 Prince’s Trust youth centres[1] were operational across the UK. Due to the series of Covid lockdowns during 2020/21, nine youth centres were closed during the year while eight youth centres were able to stay open.

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Scotland
6,640 young people
England
28,312 young
people
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Prince’s Trust
centre
Northern
Ireland
7,851 young
people
Wales
4,018 young
people
Other young people [2]
13 young people
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Total young people 46,834

Here is some headline analysis of our 2020/21 delivery:

While the coronavirus pandemic adversely impacted our service delivery during 2020/21, we supported a total of 46,834 young people through the crisis during 2020/21. We prioritised our support for young people most in need. For example, those who lacked the digital tools and equipment to engage with us or those unable to access statutory services.

Our enhanced customer service centre and online youth support hub enabled young people to access our services, as we explored alternative ways to continue our core programme offer. The majority of our programmes were quickly moved to digital services, with young people attending online sessions to engage with the core programme content and positively progress.

In 2020/21 we supported 46,834 young people

We provided a significant number of one‑to‑one sessions for young people, plus mentoring support for those young people unable to attend a programme or who required extra support. Our support helped young people to improve their confidence and explore alternative employability options in cases where their jobs had been impacted by the pandemic. We also offered a wide range 30% of Development Award grants, received enabling young people to access the digital tools needed ongoing to attend an online service.

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received
ongoing
support
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The continuation of our partnership work enabled us to enhance our support for young people throughout the year, in response to the rapidly changing labour market. Notably, we took part in the UK Government Kickstart work placement scheme.

70% were new to The Prince’s Trust

Annual Report and Accounts 2020/21 15

14 The Prince’s Trust Group Trustees’ Report

Here is a breakdown of the 46,834 young people we supported across the UK in 2020/21 and the 49,638 Prince’s Trust courses they took part in. Given that some of the young people we support participate in more than one course, the number of course places is higher than the number of individual young people.

individual young people.
Individual
2020/21
young people		 Courseplaces
Young people whoparticipated in at least oneprogramme
46,834		 49,638
Young people whoparticipated in more than oneprogramme
2,156		 n/a
Total newyoung people/courseplaces
32,595		 35,399
Young people receivingongoingsupport
14,239		 14,239
Grand total
46,834		 49,638
Comparative in 2019/20
70,181		 72,449
33% reduction 31% reduction

During 2020/21, we provided a total of 49,638 course places compared to 72,449 in 2019/20. The breakdown of Prince’s Trust courses is as follows:

Total course
New course Ongoing places
Programme places courseplaces provided
Achieve 12,751 11,439 24,190
Mosaic 181 0 181
Enterprise Challenge 354 30 384
Explore 1,284 71 1,355
Team 3,313 2,295 5,608
Get Started 2,372 8 2,380
Get into 2,789 183 2,972
Enterprise 4,454 65 4,519
Development Awards 2,878 0 2,878
Health & Social Care 2,774 65 2,839
Local & Pilots 2,249 83 2,332
Grand total in 2020/21 35,399 14,239 49,638

Positive outcomes

Maintaining the quality of our support, to maximise the benefit to young people, remains a priority. Our key measure of success is the proportion of young people who achieve a positive outcome: moving into education, employment, training or volunteering three months after completing a Prince’s Trust programme.

Over the last five years, three out of four young people supported by The Prince’s Trust in the UK reported that they had moved into work, education or training after completing one of our programmes.

The outcomes rate for the young people we support in the UK remained stable during 2020/21, despite the challenges of supporting young people during the pandemic.

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Heathfield community school
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The Prince’s Trust in England 28,312 young people supported (North of England: 9,872; Central England: 9,853; South of England: 8,587)

Following the temporary closure of our youth centres across England due to the pandemic restrictions, we developed a business continuity roadmap that saw us re‑open a number of our centres at the first opportunity. Developing ‘Covid‑secure’ centres enabled us to re‑open our Manchester and Birmingham centres in Autumn 2020, offering a safe space for staff and young people to come together and access our services.

During 2020/21, our team across England supported 28,312 young people across our range of education, employment and enterprise programmes. We launched our first Kickstart programmes with Tesco, supporting over 800 young people to access a paid six‑month work placement. Our two major delivery partnerships across England with Greater Manchester Combined Authority (GMCA) and the Department for Health and Social Care enabled us to adapt and continue our engagement and employability services for young people.

Our network of Team programme delivery partners quickly adapted their offer and continued their critical work with young people. As a result, many young people completed this 12‑week personal development programme and gained valuable qualifications.

16 The Prince’s Trust Group Trustees’ Report

The Prince’s Trust in Scotland 6,640 young people supported

Our team in Scotland supported 6,640 young people during 2020/21. We were recognised as the Employment Related Services Association (ERSA) Youth Employment Provider of 2020 for our partnership work with the NHS in Scotland. We successfully delivered the Enterprise Relief Fund, supporting 139 young people with grants to a total value of over £350k. Our annual ‘Lunch with an Old Bag’ fundraising event took place virtually and helped to raise over £90k. We worked collaboratively with stakeholders to influence the Scottish Government to invest £60 million in the Young Person’s Guarantee. Our Young Ambassador, Reece Hayes, was a winner at the first Scottish TV ‘Pride of Scotland’ Awards.

The Prince’s Trust in Wales 4,018 young people supported

Our Wales team supported 4,018 young people across our adapted range of core programmes. All programme delivery was achieved virtually, with young people participating in a range of group and one‑to‑one sessions. Through our Enterprise programme, we were able to support young people to launch 60 new businesses during lockdown. We further strengthened our partnership with the Welsh Government, to help address the increased need among young people during the Covid pandemic.

The Prince’s Trust in Northern Ireland 7,851 young people supported

Our team in Northern Ireland supported 7,851 young people during 2020/21. In response to the pandemic, we offered young people a range of online support and helped our network of school and community partners to continue supporting young people. We completed our first cross‑border programme with the support of the Irish Government, helping young people from Northern Ireland and the Ballymun area in Dublin. We strengthened our relationships with the Northern Ireland Government, showcasing our work to the Ministers for Education and Health.

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Wolverhampton College Team Residential
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18 The Prince’s Trust Group Trustees’ Report

FUNDRAISING FOR OUR WORK

Our fundraising efforts are vital if we are to continue supporting young people to develop the skills and confidence they need to transform their lives.

Prince’s Trust Trading and additional activities

We deliver income‑generating activities through our trading subsidiary, Prince’s Trust Trading Limited, including ticketed events, sponsorship opportunities and commercial partnerships. To support regular activity, we secure resources by sourcing gift‑in‑kind products, services and pro bono expertise from existing partners and supporters. There are also occasions when we will work with third parties such as event companies and our corporate partners to carry out fundraising activities. Alongside our fundraising activities, we have other income sources such as our programme fees and investments.

Against the challenging backdrop of the pandemic, the enormous generosity and loyalty of our supporters meant that we were able to continue raising funds and supported 46,834 young people at a time when they needed us most.

During 2020/21, we raised over £35 million in voluntary donations through our dedicated community of supporters including the following:

Corporate partnerships

Events

While our events portfolio was temporarily halted by the external climate throughout 2020/21, we were able to pivot some of our events to be delivered virtually. We were still able to run some of our gala events, including our Palace to Palace bike ride and our annual awards ceremony celebrating the achievements of our young people, enabling us to engage our wide range of audiences across the UK.

We partner with a broad range of UK businesses who provide funding, work experience, training and job opportunities to help young people succeed. We also engage their workforce to fundraise on our behalf and volunteer their time and expertise.

Philanthropy

Notes 3–7 to the Financial Statements provide a detailed analysis of fundraising related to both voluntary donations and other activities.

We are fortunate to work with a network of high‑net‑worth individuals, trusts and foundations who passionately believe in helping young people to transform their lives. They give their time, money and support generously, to empower young people across the UK to reach their potential.

In addition to the income raised through the above work, we also undertook other activities which further generated over £21 million to help young people transform their lives.

Raising funds for international activities

Prince’s Trust International, Prince’s Trust Australia, Prince’s Trust Aotearoa New Zealand, Prince’s Trust Canada and Prince’s Trust USA each fund their work through their own fundraising efforts, which focus on philanthropy gifts and local corporate investment in their projects. More details on our international work can be found later in this report.

Individual supporters and legacy giving

Public sector

We work with national and local government to deliver quality‑assured, evidence‑based interventions for young people in communities across the UK. The extent of our public sector contracts demonstrate that we are trusted to deliver against national policy and local needs, and work collaboratively to create long‑term impact.

Every year, hundreds of generous individuals help young people by giving a monthly regular gift, a one‑off donation or through remembering us in their will – a particularly special and cherished way to give. These mostly unrestricted funds are particularly helpful as they allow us to respond quickly to wherever the need is greatest for the young people we work with.

FUNDRAISING GOVERNANCE

Maintaining the highest professional fundraising standards

We strive to achieve the highest possible standards of fundraising and undertake a number of measures to ensure we are accountable for our practices. The Prince’s Trust is registered with the Fundraising Regulator who holds the Code of Fundraising Practice for the UK. We endeavour to carry out our fundraising activities in line with the Code of Fundraising Practice and the expectations of our supporters. We are also signed up to the Fundraising Preference Service, which gives the public control over the fundraising communications they receive.

Managing our supporters’ complaints and communications

The Prince’s Trust is committed If you have supplied to providing a high‑quality your name and address, service to all of its service we will only send you users, partners and supporters. communications you have We have a clear complaints asked for, or agreed to policy that instructs us to receive, so that you know thoroughly investigate any how your donation is helping complaints, communicate to transform young lives. You results, record results and can choose the frequency of review our work, enabling these communications or opt improvements to be made, if to stop hearing from us at required. During 2020/21, we any time. received 18 complaints about our fundraising activities, • We would love to hear your compared to 12 we received feedback about any aspect in 2019/20. A majority of the of our work, our fundraising, complaints (13) related to the or your experience as a Million Pound House Draw supporter. Simply email partnership with Omaze, getinvolved@princes‑trust. where supporters and general org.uk public raised concerns about gambling promotion, data protection, prize draw process and the nature of the partnership.

Fundraising on our behalf

We require signed terms and conditions from those who fundraise on our behalf, before being able to use our logo and branding to fundraise. Where we work with third parties, such as event companies, we have agreements in place and regularly monitor their performance in line with these agreements.

Protecting vulnerable people

The Prince’s Trust is committed During the year, we sent two to protecting vulnerable direct mail fundraising appeals, people and other members one impact newsletter and of the general public from our 2020 Thank You mailing. unreasonable intrusion on a Further to our complaints person’s privacy, unreasonably policy, we make a pledge to our persistent fundraising supporters whose generous approaches and placing support is vitally important to undue pressure on a person transforming young lives. As a to give money. Our fundraising supporter of The Prince’s Trust, activities follow both the Code we make a pledge that: of Fundraising Practice and our own ethical fundraising policy. • You can expect The Trust to To help protect vulnerable use your donations wisely,

During the year, we sent two direct mail fundraising appeals, one impact newsletter and our 2020 Thank You mailing. Further to our complaints policy, we make a pledge to our supporters whose generous support is vitally important to transforming young lives. As a supporter of The Prince’s Trust, we make a pledge that:

Annual Report and Accounts 2020/21 21

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GOVERNANCE
The following section covers
the governance arrangements
for The Prince’s Trust
Charleigh
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TRUSTEES’ RISK STATEMENT

Risk management

Significant risks are discussed at each Council meeting during which the Trustees seek assurances that they are being adequately controlled and managed. The Committees work closely with the Executive Leadership Team to ensure that across the organisation, staff and volunteers feel empowered and encouraged to highlight risks and issues so that appropriate actions are taken and, if significant, reported to the Council.

The Prince’s Trust has a duty of care to the young people we support, our staff, our supporters and our partners. To ensure that our work with these groups can effectively improve the outcomes for young people, The Trust has established a formal structure and process to manage our risks.

The Prince’s Trust Council (the Council) retains overall responsibility for risk management, and through its committees has oversight of the risk landscape and assurance arrangements. This structure is supported by our colleagues in assurance functions such as Risk, Internal Audit, Legal, Governance, Safeguarding and Health and Safety, who provide the insight required, as well as a broad range of risk and compliance reporting on:

Annual Report and Accounts 2020/21 23

22 The Prince’s Trust Group Trustees’ Report

Principal risks

Since the emergence of Covid‑19 in early 2020, the changes to our society and the challenges faced by young people has added further complexity to our principal risks:

With the pandemic, these principal risks have evolved and more specifically for The Prince’s Trust in 2020/21, the following risks have emerged:

Our response to these challenges has been a combination of strengthening core governance structures along with developing new processes and insights to ensure we can manage risks promptly:

Fairbridge Society

In 2011, Fairbridge became part of The Prince’s Trust and was subsequently dissolved in 2013.

In response to the issues concerning the historic child migration programmes run by Fairbridge in the first half of the twentieth century, which had ceased long before the merger with The Prince’s Trust, Fairbridge was restored to the register of companies in England & Wales. Fairbridge (Restored) Limited was then placed into administration with the appointment of administrators on 25 March 2020.

The Prince’s Trust is committed to supporting former child migrants of Fairbridge to access any personal information contained in the archives of Fairbridge currently held at the University of Liverpool.

The Prince’s Trust is concluding its discussions with the administrators of Fairbridge to settle with them an agreed amount to restore Fairbridge in order for the administrators of Fairbridge to address any claims that might be made against it.

ORGANISATIONAL STRUCTURE, GOVERNANCE AND MANAGEMENT

The Prince’s Trust is incorporated by Royal Charter (with Royal Charter number RC000772) and is registered with the Charity Commission for England and Wales (with registered number 1079675) and the Office of the Scottish Charity Regulator (with registered number SC041198). Its objects and powers are set out in the Royal Charter and Byelaws. The Royal Charter, the Byelaws and The Governance Handbook (a document that sets out The Trust’s internal governance structure) are the documents that govern The Trust’s administration.

Trustee recruitment, appointment and training

The Council

Trustees are appointed in Trustees receive ongoing accordance with the Byelaws support and up to date and are collectively known as guidance, to enable them to “the Council”. On joining the fulfil their responsibilities to the organisation, new Trustees organisation. They meet with receive a personalised beneficiaries at events and on wide‑ranging induction which programme visits. The Council covers the values and purpose meets six times a year with of The Trust and includes occasional additional meetings sections on strategy, finance, as needed. The Trustee role is fundraising, programmes, unremunerated, but Trustees operations and governance. are able to claim expenses During induction, Trustees meet where relevant. young people and members of The Trust’s Executive Leadership Team to help fully understand their role as a Trustee.

The Prince’s Trust Council is accountable for the work of The Trust. The matters reserved for The Prince’s Trust Council include the approval of strategy, the budget and business plan and the Annual Report and Accounts. The Prince’s Trust Council also retains oversight of management controls and corporate governance, along with the appointment of Trustees, the Group Chief Executive, the UK Chief Executive and senior volunteers. Appointment of directors/trustees of The Prince’s Trust subsidiaries is a matter for their boards.

In addition, they are invited to attend Trust programmes to see them in action and are asked to take an interest in a particular area of The Trust’s work via membership of one or more of the committees, to be ready to contribute to the Council as required.

Annual Report and Accounts 2020/21 25

24 The Prince’s Trust Group Trustees’ Report

Committees of Council

The Prince’s Trust Council has appointed eight committees to help with the execution of its responsibilities. Members are appointed by The Prince’s Trust Council. The committees meet regularly and members during 2020/21 were:

Ethical Fundraising & Reputational Risk Committee: Simon Major (Chair), Tania Slowe

Finance:

Shabir Randeree CBE (Chair to August 2021), Richard Oldfield OBE DL (Chair from August 2021), Sir Nigel Knowles (retired September 2020), Tania Slowe, Alistair Summers.

In 2020/21, the Investment Committee ceased to be a separate Committee and became a sub‑Committee of the Finance Committee. In addition to the members of the Finance Committee, John Booth DL, Sandra Robertson and Michael Marks CVO CBE attend for Investment sub‑Committee business.

Fundraising Advisory Board:

Ian Mukherjee (Chair), Uzair Bawany, James Bennet MBE, Jeremy Green, Richard Huntingford, Steve Sealey, Sir James Wates CBE

Group Governance Committee:

Alison Brittain CBE (Chair), John Booth DL, Alistair Summers, Shabir Randeree CBE (to October 2021), Richard Oldfield OBE DL (from October 2021)

Nominations and Remuneration Committee:

John Booth DL (Chair), Alison Brittain CBE, Shabir Randeree CBE, Richard Oldfield OBE DL (from September 2021)

Risk and Audit:

Alistair Summers (Chair), Sir Nigel Knowles (retired September 2020), Shabir Randeree CBE, Tania Slowe

Technology Committee:

Mark Dearnley (Chair), Joan Armatrading CBE, Gavin Cartwright, Ian Mukherjee, Kevin Walsh

Young Persons Committee:

Michelle Pinggera (Chair), Alistair Summers, Sir Nigel Knowles (retired September 2020), Kirstie Donnelly MBE (retired September 2021), Ramneek Sohal (retired September 2021)

The Prince’s Trust Council

appoints Advisory Committees in Wales, Scotland and Northern Ireland, Development Committees in the English regions, Development Committees for our Industry and Leadership Groups and an Advisory Committee for our Mosaic programme. These are composed of senior volunteers, whose role is to provide fundraising support and guidance.

The Prince’s Trust Council has delegated authority to the Group Chief Executive for oversight of The Prince’s Trust and its subsidiaries. The Council has also delegated authority to the UK Chief Executive and Executive Leadership

Team for the day‑to‑day management of The Trust. The composition of the Executive Leadership Team comprises the UK Chief Executive, Chief Finance Officer, Group General Counsel & Company Secretary, Director of People & Learning, Director of Fundraising, Chief Technology Officer, Director of Safeguarding, Director of Programme Development and Director of Delivery.

The Executive Leadership Team has delegated authority from the Council for the design and delivery of programmes and income generation, along with the administrative functions of finance, people and learning, health and safety, legal, risk and internal audit, evaluation, management information systems, marketing and communications. Designated staff may commit The Trust to expenditure within defined limits.

During the financial year, the Council reviewed and agreed organisational pay and the Nominations and Remuneration Committee considered and approved the appointment and remuneration of new roles in the Executive Leadership Team in consideration of good practice in the charity sector.

The Charity Governance Code

The Council fully supports the Charity Governance Code. Whilst the Code is voluntary and aspirational, the Council recognises its importance in promoting good governance. The Prince’s Trust does, and will continue to, improve its own governance where necessary in accordance with the Code.

Subsidiaries

The Prince’s Trust has the following charitable subsidiaries:

Prince’s Trust International Prince’s Trust Australia Prince’s Trust Aotearoa New Zealand Prince’s Trust Canada Prince’s Trust USA

Each charitable subsidiary is registered in its country of incorporation and has its own board of trustees, which is responsible for managing its affairs and appointing its chief executive. The Group Chief Executive has delegated authority from the Council of The Prince’s Trust to work with the UK Chief Executive and chief executives of the charitable subsidiaries to co‑ordinate the activities of the charitable Group.

For more detailed information about the activities, achievements and future plans of The Trust’s charitable subsidiaries, see pages 27–40.

In addition to the charitable subsidiaries listed above, The Prince’s Trust has a wholly‑owned non‑charitable subsidiary, Prince’s Trust Trading Limited, which undertakes The Prince’s Trust’s commercial activities. Prince’s Trust Trading Limited is incorporated as a company to conduct trading activities to support The Prince’s Trust’s charitable objectives. It passes all of its taxable profits to The Trust via Gift Aid. The payment under deed of covenant from Prince’s

Trust Trading Limited to The Trust in 2020/21 was £2.4m (2019/20 £1.5m). Prince’s Trust Trading Limited is incorporated in England and Wales (with company number 03161821).

The Group Consolidated Statements include The Trust, the charitable and non‑charitable subsidiaries. The financial results for 2020/21 of all subsidiaries are summarised in Note 18 to the Financial Statements.

Annual Report and Accounts 2020/21 27

----- Start of picture text -----
THE PRINCE’S
TRUST FAMILY
Prince’s Trust
International,
Barbados
----- End of picture text -----

INTRODUCTION from Dame Martina Milburn DCVO CBE, Prince’s Trust Group CEO

Over the past year, young people have needed our help more than ever. Thanks to the commitment of our colleagues, volunteers and supporters, The Prince’s Trust has continued to support thousands of young people through the global pandemic.

the UK alongside Prince’s Trust International, Prince’s Trust Australia, Prince’s Trust Aotearoa New Zealand, Prince’s Trust Canada and Prince’s Trust USA.

Together during 2020/21 we supported 60,146 young people, including over 46,000 in the UK. We also helped 663 military veterans to set up in business and invested in building sustainable communities. We are now active in 18 countries, Australia, Barbados, Canada, Ghana, Greece, India, Jamaica, Jordan, Kenya, Malaysia, Malta, New Zealand, Pakistan, Rwanda, St Lucia, Trinidad & Tobago, the UK and USA.

The Prince’s Trust Group is a global network of charities founded by His Royal Highness The Prince of Wales. We believe that every young person deserves the chance to succeed. Our mission is to transform lives and build sustainable communities worldwide, with a particular focus on supporting young people into education, employment and enterprise.

I have been particularly encouraged by our online engagement with young people, helping to keep them connected, learning and earning during the global lockdown. Over the past year, we switched much of our delivery online through new digital innovations, from Birmingham to Barbados.

We also support military veterans in Australia and Canada, helping them to start up their own business after leaving the armed forces.

The Prince’s Trust Group of charities includes the work of The Prince’s Trust in

The global coronavirus pandemic is having profound implications on the life chances of a whole generation of young people and will affect the most disadvantaged communities the most. It has made even more urgent the need to help young people prepare for the future world of work and accelerated the demand for digital skills. Meanwhile, the growth of employment opportunities in the green economy and healthcare is gathering pace.

We are determined to continue supporting young people through and beyond this crisis, by equipping them with the skills that are most needed for the jobs of tomorrow.

We are truly grateful to His Highness the Aga Khan, our Global Founding Patron; and to HSBC, our Global Founding Corporate Partner. I would also like to thank our highly valued delivery partners for their vital contribution and our own dedicated colleagues and volunteers, who together work tirelessly to support people around the globe.

Most of all, our sincere thanks go to His Royal Highness The Prince of Wales for his visionary leadership and inspiration.

Dame Martina Milburn DCVO CBE

Group Chief Executive The Prince’s Trust

Annual Report and Accounts 2020/21 29

28 The Prince’s Trust Group Trustees’ Report

WHERE WE WORK

----- Start of picture text -----
Canada
UK
USA
Greece
Malta
Jordan
Pakistan
India
St Lucia
Jamaica
Barbados
Trinidad Ghana
Malaysia
& Tobago
Kenya
Rwanda
Together during 2020/21
we supported
Australia
60,146
young people New
around the world Zealand
----- End of picture text -----

30 The Prince’s Trust Group Trustees’ Report

PRINCE’S TRUST INTERNATIONAL

Financial Performance

Prince’s Trust International (PTI) is a company limited by guarantee (company number 09090276) and is registered with the Charity Commission for England and Wales (registered number 1159815). The Prince’s Trust is the sole member of PTI. The board of trustees is chaired by Sir Lloyd Dorfman CBE and Will Straw CBE is the Chief Executive. At 31 March 2021, the team included 46 staff and a number of highly valued volunteers.

Income for the year 1 April 2020 to 31 March 2021 was £3.897m (2019/20 income: £4.16m) and expenditure was £3.626m (2019/20 expenditure: £3.07m), resulting in an operating surplus of £271k (2019/20 surplus: £1.09m).

At 31 March 2021, total reserves were £1.717m including £1.233m which was restricted to delivery due to take place in 2021/22. Unrestricted reserves at 31 March 2021 were therefore £483k (2019/20 unrestricted reserves: £723k).

During 2020/21, PTI almost doubled its delivery year‑on‑year, to support 10,631 young people in their journey from education to employment in Barbados, Ghana, Greece, India, Jamaica, Jordan, Kenya, Malaysia, Malta, Pakistan, Rwanda and Trinidad & Tobago. PTI also started its work in St Lucia. Since its establishment in 2015, PTI has supported 27,000 young people to develop their education, employability and enterprise skills.

Future Plans

The ongoing Covid‑19 pandemic continues to create a challenging external environment while increasing the demand from young people for our support. Prince’s Trust International is determined to do even more with our delivery partners to support young people through and beyond this crisis, while at the same time ensuring that our delivery model and finances are efficient and sustainable.

• Diverse, equitable and inclusive culture: Create a culture of inclusion, challenging our ways of thinking, removing barriers and creating opportunities that reflect the diverse needs of the communities with which we work.

During 2021/22, PTI plans to secure £5.9m of income and deploy £5.85m of expenditure, delivering a planned operating surplus of £50k. We expect to achieve total unrestricted reserves of approximately four months of operating expenditure by 31 March 2022.

Our strategic goals for 2021/22 are:

----- Start of picture text -----
It’s about pushing
yourself towards
something. I’ve
grown now – yes, my
confidence is here.
Rusheda, Jamaica
Achieve education
programme
----- End of picture text -----

Annual Report and Accounts 2020/21 33

----- Start of picture text -----
Emma (teacher), Australia
Achieve education programme
----- End of picture text -----

PRINCE’S TRUST AUSTRALIA

Prince’s Trust Australia (PTA) is a public company limited by guarantee, registered as a charity with the Australian Charities and Not‑for‑profits Commission (registered number ABN 73 161 872 993). The Prince’s Trust is the sole member of PTA. The board of trustees is chaired by the Hon Julie Bishop and Michelle Endacott is the Chief Executive. At 31 March 2021, the team included seven staff and a number of highly valued volunteers.

PTA continued to advise on a mid‑rise residential development The Prince’s Quarter in Sydney, which will demonstrate best practice in sustainability and design. PTA continued to support the rebuild of a community hall in Stokes Bay, Kangaroo Island, following the 2019/20 bushfires. With the University of Queensland, PTA developed the Enduring Design Masterclass Masters’ programme in traditional design and trade skills.

Our strategic goals for 2021/22

Goal 1: Expand PTA’s youth initiatives and increase focus on disadvantaged youth.

Financial Performance

Prince’s Trust Australia responded swiftly to the Covid‑19 pandemic during 2020/21, by switching its programmes to online delivery. PTA’s Achieve education programmes supported 2,243 young people to prepare for the rapidly changing world of work by developing their enterprise skills. This included three Achieve Fest multi‑day online immersion courses, which also involved 87 parents and 475 educators.

Income for the year 1 April 2020 to 31 March 2021 was £1.068m (2019/20 income: £1.106m) and expenditure was £769k (2019/20 expenditure: £985k), resulting in an operating surplus of £299k (2019/20 surplus: £121k).

Goal 2: Raise awareness of PTA’s work and expand our partnership income by 25 per cent year‑on‑year.

Goal 3: Enhance our monitoring and evaluation tools to give evidence of the impact of our programmes, to support funding proposals to government, corporate and private donors.

At 31 March 2021, total reserves were £1.097m including £26k which was restricted to delivery due to take place in 2021/22. Unrestricted reserves at 31 March 2021 were therefore £1.071m (2019/20 unrestricted reserves: £617k).

PTA engaged 208 Australian Defence Force veterans and family members through its Enterprise for Veterans programme, which inspires military veterans into entrepreneurship. Since the programme began, Enterprise for Veterans has supported over 500 veterans and family members, with more than 100 veteran community businesses in operation today.

Future Plans

During 2021/22, PTA plans to achieve £1.114m of income and deploy £1.113m of expenditure, to deliver a broadly balanced budget. This will enable the following delivery:

34 The Prince’s Trust Group Trustees’ Report

PRINCE’S TRUST AOTEAROA NEW ZEALAND

Prince’s Trust Aotearoa New Zealand (PTANZ) launched in 2018 and is registered as a charity in New Zealand (registered number CC56358). The Prince’s Trust is the settlor of PTANZ. The board of trustees is chaired by Andrew Williams and Rod Baxter is the Chief Executive. At 31 March 2021, the team included three staff and a number of highly valued volunteers.

PTANZ is committed to building partnerships that create tangible impact, especially to support its Enterprise work. This includes our partnership with the Ministry of Youth Development (MYD), Aotearoa New Zealand’s dedicated government department for young people. Together, PTANZ and MYD are collaborating on ‘Te Kete Aronui’, a project named after a Māori symbol of prosperity. ‘Te Kete Aronui’ unites and supports 62 youth enterprise programmes across Aotearoa New Zealand with a common language and shared outcomes.

Future Plans

During 2021/22, PTANZ plans to secure £424k of income and deploy £412k of expenditure, to support 200 young people through its Enterprise programmes.

Our strategic purpose is to activate young New Zealanders as the designers, creators and workers of a future economy that is sustainable, equitable and prosperous.

During 2020/21, PTANZ engaged with 183 young people including 56 young people through its Enterprise programme, 73 young people through its Employability work and 54 young people through the Mosaic programme.

Our strategic goals for 2021/22

are:

Goal 1: Deliver programmes for and with young people to develop entrepreneurial capital and contribute to social and economic wellbeing.

Financial Performance

Income for the year 1 April 2020 to 31 March 2021 was £407k (2019/20 income: £442k) and expenditure was £351k (2019/20 expenditure: £385k), delivering an operating surplus of £56k (2019/20 surplus: £57k).

The global pandemic has prompted PTANZ to consolidate and focus exclusively on delivering its Enterprise programme. Entrepreneurship offers a sustainable path for young people and the domestic economy. In particular, young people in Aotearoa New Zealand are choosing to explore green, sustainable innovations for the wellbeing of both people and the planet.

Goal 2: Nurture collaborative partnerships with aligned organisations to deliver programmes and measure impact.

Total unrestricted reserves at 31 March 2021 were £141k (2019/20 unrestricted reserves: £80k).

Goal 3: Build a strong support network for young people in Aotearoa New Zealand, leveraging our global connectivity.

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During a time of
uncertainty when many
rangatahi were unsure
of their futures, it was
rewarding to create a
safe place for them to be
their authentic selves.
Sharneece, New Zealand
Enterprise programme
----- End of picture text -----

Annual Report and Accounts 2020/21 37

----- Start of picture text -----
I want other people to
know that if you have
confidence and support,
you can do anything you
put your mind to.
Isabella, Canada
Get Into Hospitality
----- End of picture text -----

PRINCE’S TRUST CANADA

Prince’s Trust Canada (PTC) is a designated Charitable Organisation under the Canadian Income Tax Act (registered number 83229 5406 RR0001). The Prince’s Trust is the sole member of PTC. The board of directors is chaired by F. Mark M. Fell and Sharon Broughton is the Chief Executive. At 31 March 2021, the team included 14 staff.

Many young people want to make a positive difference in their communities, including making an impact through climate action. Following consultation with stakeholders across the green career ecosystem, PTC decided to offer young people the opportunity to explore careers in the green economy, urban nature and forestry. In late 2022, we will launch new pilot programmes related to energy efficiency, urban greening and tree planting.

At 31 March 2021, total cash reserves were £2.18m including £1.612m which was restricted to programme delivery for the future fiscal year. Unrestricted reserves at 31 March 2021 were therefore £568k (2019/20 unrestricted reserves: £513k).

Future Plans

During 2021/22, PTC plans to secure £1.964m of

income and deploy £1.964m of expenditure. We plan to support 500 veterans and 1,500 young people in programmes focused on skills development, technology and the sustainability sectors.

During 2020/21, PTC supported 255 young people and 455 veterans and transitioning military members to prepare for the transforming world of work and contribute to a sustainable future.

PTC has continued to support veterans and the military community during this crucial time, incorporating sustainability themes into our regular programming. In response to the pandemic, PTC adapted its programmes for veterans to include a full virtual offering, enabling participation from veterans in every province and territory of Canada.

Our strategic goals for 2021/22 are:

As a result of the Covid‑19 pandemic, the number of unemployed young people in Canada reached its highest rate in the last twenty years. PTC continued to provide tangible opportunities for young people throughout the crisis, contributing to the national recovery. PTC adapted its in‑person programmes through digital platforms and continued to engage young people and the veterans community, especially those facing barriers to employment.

Goal 1: Build strong private and public sector partnerships to deliver programmes that develop critical employment skills for future‑ready businesses.

PTC’s Strategic Plan for 2020/25 has five objectives: preparing young people and veterans for the transforming world of work; championing sustainable solutions for a green recovery; empowering our people and our partnerships; delivering Impact; and investing in the future.

Goal 2: Pilot and scale new

sustainability programming, with an initial focus on youth employment in low‑carbon building trades, urban nature and forestry.

Goal 3: Create an enhanced evaluation framework to capture tangible impact across all programmes, integrating the United Nations Sustainable Development Goals.

Financial Performance

Income for the year 1 April 2020 to 31 March 2021 was £1.307m (2019/20 income: £1.448m). Expenditure was £1.295m (2019/20 expenditure: £1.448m), resulting in a surplus of £12k (2019/20: balanced budget).

Annual Report and Accounts 2020/21 39

38 The Prince’s Trust Group Trustees’ Report

PRINCE’S TRUST USA

Prince’s Trust USA (PTUSA) was established in May 2019 as a 501(c)(3) charitable entity in New York State (EIN number 82‑5457122). The board of trustees is chaired by Jeremy Green and Victoria Gore is the Interim Chief Executive.

Financial Performance

Income for the year 1 April 2020 to 31 March 2021 was £1.913m (2019/20 income: £6.905m). Of this, PTUSA made a total of £1.855m in programme grants to The Prince’s Trust and Prince’s Trust International (2019/20: £5.024m). Total expenditure (including operating costs of £292k) was £2.147m (2019/20 expenditure: £5.161m), delivering an operating deficit of £234k (2019/20 surplus: £1.744m).

The initial strategy of PTUSA is focused on raising funds in the United States, to support the charitable work of The Prince’s Trust Group of charities across the world.

At 31 March 2021, total reserves were £1.334m including £1.073m which was restricted to support future delivery due to take place from 2021/22 onwards. Unrestricted reserves at 31 March 2021 were £261k (2019/20 unrestricted reserves: £200k).

Future Plans

During 2021/22, PTUSA plans to secure £5.473m of income and to deploy £3.842m to other charities within The Prince’s Trust Group. PTUSA also plans to set aside a reserve fund of at least £100k in 2021/22 with a goal to increase this to at least £200k in 2022/23.

Whilst PTUSA has been active since inception, the formal launch event – originally scheduled for April 2020 – was postponed due to Covid‑19 restrictions and has been rescheduled to April 2022.

In due course, PTUSA has future plans to support young people in the United States once it has developed further.

Our strategic goals for 2021/22

are:

Goal 1: Achieve financial and operational sustainability while maximizing the benefits and opportunities of being a part of The Prince’s Trust Group.

Goal 2: Develop an effective strategic plan to engage patrons, stakeholders and The Prince’s Trust Group of charities.

Goal 3: Engage a new audience of US‑based patrons supporting PTUSA, to provide a significant year‑on‑year increase in revenues over the longer term.

ACHIEVEMENTS AND PERFORMANCE – GROUP

Financial Review for The Prince’s Trust Group

Income and Endowments

Total Group income was £72.3m in 2020/21 (2019/20: £88.3m), a decrease of £16m from the prior year. The decrease came from individual donations and legacies, which decreased from £42.2m in 2019/20 to £16.7m in 2020/21. This was partly offset by a £5.3m increase in public sector income and £4.3m of grant income.

The results of The Prince’s Trust Group for the year are set out in the Consolidated Statement of Financial Activities (SOFA) on page 49. Net incoming resources for the year after gain on investments were £10.8m (2019/20: £7.7m). The free reserves at the end of the financial year were £40.2m (2019/20: £21.6m) as analysed on page 41.

Where our Group funds of £72.3m came from:

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2021 2020
Group income £’000 £’000
Corporates 15,434 16,068
Charitable Trusts 10,713 7,900
Individuals & Legacies 16,664 42,190
Gifts in Kind 4,403 3,744
Trading Income 2,907 5,121
Investment Income 245 779
Public Sector contracts 16,213 10,883
Programme fees 1,303 1,500
Grant income 4,354 ‑
Other Income 35 155
Total 72,271 88,340
----- End of picture text -----

Expenditure

Total Group expenditure for the year was £69.1m. This comprised £57.3m spend on charitable activities and £11.8m on the cost of raising funds. This represents a decrease of 10.6 per cent from 2019/20.

The Group expenditure on raising funds decreased by 22.3 per cent, to £11.8m (2019/20: £15.2m). This was driven by the reduced fundraising activities due to the impact of the Covid‑19 pandemic.

The total cost of charitable activities decreased by 7.7 per cent to £57.3m (2019/20: £62.1m). This was due to a reduction in programme delivery due to the Covid‑19 restrictions.

2021 2020
Group expenditure £’000 £’000
Total 69,089 77,302
Less tradingcosts (377) (3,608)
Less expenditure on raisingfunds (11,361) (11,493)
Less investment management costs (70) (73)
Total expenditure to meet our
objectives		 57,281 62,128

Annual Report and Accounts 2020/21 41

40 The Prince’s Trust Group Trustees’ Report

Where our Group expenditure of £69.1m was used:

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2021 2020
Group expenditure £’000 £’000
Enterprise 10,901 9,878
Team 2,994 4,718
Development Awards 2,227 2,878
Achieve 6,144 8,465
Get Into 6,790 11,224
Get Started 4,013 5,125
Local programmes & pilots 10,636 7,210
Explore 6,466 7,680
The Prince’s Trust – Charitable activities 50,171 57,178
Subsidiaries – Charitable Activities
Prince's Trust International 3,170 362
Prince's Trust Australia 711 882
Prince's Trust Aotearoa New Zealand 342 ‑
Prince's Trust Canada 1,033 1,155
Prince's Trust USA 1,854 2,551
Group activities Total 57,281 62,128
Expenditure on raising funds 11,808 15,174
The Prince’s Trust Group – Total 69,089 77,302
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The Prince’s Trust charitable subsidiaries raise and spend their own funds and are included in restricted funds in the Group Consolidated Financial Statements. Funds raised for UK activity are spent in the UK and split between restricted, unrestricted and endowment depending upon conditions specified by the donor.

Notes 8, 9 and 10 to the Financial Statements provide a detailed analysis of expenditure by the Group.

The Trustees are pleased to present their report and audited financial statements for The Prince’s Trust Group (which includes The Prince’s Trust and its subsidiaries) for the year ended 31 March 2021.

Investment and reserves

The Endowment Portfolio is invested in equity funds and had a value of £16.5 million at year‑end. During the year its return was +43%, reflecting the strong recovery in world markets after the falls, as a result of Covid, immediately before the beginning of the year. The Main Portfolio is invested in a mix of equity funds and cash and had a value of £12.7 million at year‑end. During the year its return was +30%.

Investment Policy and Performance

investment and delivery approach.

The Council has delegated supervision of its investments to the Finance Committee. Its financial investments, other than cash in bank accounts, consist of the Main Portfolio and the Endowment Portfolio.

The Trustees review the reserves policy annually and target a level of free reserves of five months of operational expenditure. Reserves are held to cover for unforeseen circumstances including any unplanned reduction to income.

The Prince’s Trust Council is empowered through its Royal Charter to invest appropriately funds not immediately required for operational purposes. The mix of investments is maintained to ensure that there are sufficient liquid funds to cover working capital needs and potential cash calls, and to provide capital growth within an agreed risk profile. These investments are held in the Main Portfolio.

Included within free reserves are the equity value of freehold land and buildings and the value of programme related investments net of a discount to estimate realisable value. The land and buildings are realisable to cash as they are held in prime and prominent locations, are kept in good marketable conditions, and could be used for multiple purposes. Free reserves are within this target range and The Trust continues to manage its free reserves on a regular basis.

Further detail on the two Portfolios is shown in Note 17 to the financial statements.

Reserves Policy

The total funds of The Prince’s Trust Group stood at £76.5m as at 31 March 2021 (2019/20: £65.7m). The free reserves of The Prince’s Trust Group were £40.2m as at 31 March 2021 (2019/20: £21.6m). The free reserves are higher than historic levels and are felt appropriate due to the ongoing uncertainty of the pandemic which has resulted in a more conservative

In addition, an Endowment Portfolio to support the long‑term sustainability of The Prince’s Trust was established in 2018/19. The Endowment Portfolio is intended to maintain its capital value in real terms over the long term. The distribution rate, which determines the percentage of the Endowment Portfolio, which is available to The Trust for spending annually, is reviewed each year by the Finance Committee and is currently a maximum of 4 per cent of the value of the Portfolio.

The Prince’s Trust Group were
£40.2m as at 31 March 2021
(2019/20: £21.6m). The free
reserves are higher than historic
levels and are felt appropriate		 reserves are within this target
range and The Trust continues
to manage its free reserves on a
regular basis.		 reserves are within this target
range and The Trust continues
to manage its free reserves on a
regular basis.
due to the ongoing uncertainty The adjustments to determine
of the pandemic which has the free reserves of The Trust are
resulted in a more conservative set out below:
2021 2020
Total funds of The Prince's Trust £m
Group
76.5		 £m
65.7
Deduct:
Restricted Funds
Endowment Funds
Designated Funds		 (11.4)
(16.5)
‑		 (13.5)
(13.4)
(6.0)
Intangible and Tangible Fixed Assets (excluding
Freehold Land and Buildings)
(8.1)		 (10.9)
Realisable value discount on programme related
investments
(0.3)
Free Reserves
40.2		 (0.3)
21.6

Each of the Portfolios, for which the custodian is Cazenove & Co., is invested in funds managed by investment management firms and assessed by the Committee to be suitable in order to meet The Prince’s Trust’s objectives.

An Endowment Fund to support the long‑term sustainability of The Prince’s Trust was established in 2018/19. Donations were made during the year to support the growth of the Endowment Fund.

Annual Report and Accounts 2020/21 43

42 The Prince’s Trust Group Trustees’ Report

STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES

Statement of disclosure of

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

information to auditors

In so far as the Trustees are aware,

The law applicable to charities in England and Wales and Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of the incoming resources and application of resources of the Group for that period.

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

John Booth DL

Chairman 24 November 2021

The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees and Members of

Principal Address

Independent Auditors

The Prince’s Trust Council

8 Glade Path London SE1 8EG

PricewaterhouseCoopers LLP 1 Embankment Place, London WC2N 6RH

John Booth DL (Chairman) Joan Armatrading CBE

(appointed September 2020) Alison Brittain CBE (Deputy Chair)

Principal Solicitors

Telephone: 0800 842 842 info@princes‑trust.org.uk ‑ www.princes trust.org.uk

Farrer and Co 66 Lincoln’s Inn Fields London WC2A 3LH

Mark Dearnley Kirstie Donnelly MBE (retired September 2021) Sir Nigel Knowles (retired September 2020) Ian Mukherjee Richard Oldfield OBE, DL Michelle Pinggera Shabir Randeree CBE Tania Slowe Ramneek Sohal (retired September 2021) Alistair Summers

Charity Registration Number England and Wales 1079675 Scotland SC041198

Bankers

National Westminster Bank plc 3rd Floor, 280 Bishopsgate, London EC2M 4RB

Royal Charter Number RC000772

Coutts and Co Villiers Branch, 440 Strand, London WC2R 0QS

Governing Document

The Prince’s Trust is a company incorporated by Royal Charter. The Royal Charter is the governing document of The Trust.

Management

Dame Martina Milburn DCVO CBE, Group Chief Executive Jonathan Townsend, UK Chief Executive

President

His Royal Highness The Prince of Wales

Julia Beaumont, Chief Technology Officer (appointed November 2020) Kimberley Cleland, Director of People and Learning Kevin Gibbs, Director of

Global Founding Patron His Highness the Aga Khan

Chairman of The Prince’s Trust Council

Safeguarding (appointed July 2021)

John Booth DL

Tara Hull (Leathers), Deputy CEO (Income and Innovation) (left May 2020) Jo Hutchinson, Director of Programme Development (appointed August 2021) Ian Jeffers, Deputy CEO (Design and Delivery) (left June 2021) Simon Major, Group General Counsel and Company Secretary Frances Milner, Director of Fundraising (appointed July 2020)

Vice President

Michael Marks CVO, CBE

Saras Seth, Chief Finance Officer Louise Spencer, Director of Delivery (appointed September 2021)

Annual Report and Accounts 2020/21 45

44 The Prince’s Trust Group Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE PRINCE’S TRUST

Report on the audit of the financial statements

We have audited the financial statements, included within the Annual Report (the “Annual Report”), which comprise: the Group consolidated and Charity balance sheets as at 31 March 2021; the Group consolidated statement of financial activities and The Prince’s Trust statement of financial activities for the year then ended, the Group consolidated cash flow statement for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Opinion

Conclusions relating to going

In our opinion, The Prince’s Trust Group’s financial statements and parent Charity financial statements (“the financial statements”):

concern

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 parent Charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the 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.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group’s and parent Charity’s ability to continue as a going concern. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Independence

We remained independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Independent auditors’ report to the Trustees of The Prince’s Trust (continued)

Reporting on other information

Trustees’ Report

Under the Charities (Accounts and Reports) Regulations 2008 and The Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion the information given in the Trustees’ Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.

The other information

comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

Responsibilities for the financial statements and the audit

Responsibilities of the trustees for the financial statements As explained more fully in the statement of the trustees’ responsibilities, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In connection with our audit of the financial statements, 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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.

In preparing the financial statements, the trustees are responsible for assessing the Group’s and parent Charity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Group and parent Charity or to cease operations, or have no realistic alternative but to do so.

Based on our work undertaken in the course of the audit, the Charities (Accounts and Reports) Regulations 2008 and The Charities Accounts (Scotland) Regulations 2006 (as amended) requires us also to report certain opinions and matters as described below.

Auditors’ responsibilities for the audit of the financial statements

We are eligible to act and have been appointed auditors under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

Annual Report and Accounts 2020/21 47

46 The Prince’s Trust Group Independent Auditors’ Report

Independent auditors’ report to the Trustees of The Prince’s Trust (continued)

Audit procedures performed included:

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.

• enquiry of management and the board of trustees, including consideration of known or suspected instances of non‑compliance with laws and regulations and fraud

Based on our understanding of the Group and parent Charity, we identified that the principal risks of non‑compliance with laws and regulations related to the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), and we considered the extent to which non‑compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journals to manipulate financial results or conceal the misappropriation of assets and potential management bias in accounting estimates.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non‑compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the Charity’s trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and regulations made under those Acts (regulation 10 of The Charities Accounts (Scotland) Regulations 2006 (as amended) and Part 4 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept

Independent auditors’ report to the Trustees of The Prince’s Trust (continued)

or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

The Charities Accounts (Scotland) Regulations 2006 (as amended) and Charities Act 2011 exception reporting

Under The Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London

24 November 2021

Annual Report and Accounts 2020/21 49

----- Start of picture text -----
FINANCIAL
STATEMENTS
Emmanuel
----- End of picture text -----

Group consolidated statement of financial activities for the year ended 31 March 2021

----- Start of picture text -----
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds 2021 Funds Funds Funds 2020
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 3 13,064 33,900 250 47,214 22,827 34,681 12,394 69,902
Charitable activities 4 1,496 16,020 ‑ 17,516 1,459 10,924 ‑ 12,383
Other trading activities 5 2,868 39 ‑ 2,907 5,100 21 ‑ 5,121
Investments 6 241 4 ‑ 245 771 8 ‑ 779
Grant income 7 4,354 ‑ ‑ 4,354 ‑ ‑ ‑ ‑
Other 22 13 ‑ 35 142 13 ‑ 155
Total 22,045 49,976 250 72,271 30,299 45,647 12,394 88,340
Expenditure on:
Raising funds 8 11,808 ‑ ‑ 11,808 15,174 ‑ ‑ 15,174
Charitable activities 9 7,230 50,051 ‑ 57,281 22,838 39,290 ‑ 62,128
Total 19,038 50,051 ‑ 69,089 38,012 39,290 ‑ 77,302
Net (losses)/gains on 17 4,773 ‑ 2,830 7,603 (3,331) ‑ ‑ (3,331)
investments
Net movement in funds/net 7,780 (75) 3,080 10,785 (11,044) 6,357 12,394 7,707
(expenditure)/income for
the year
Total funds brought forward 38,846 13,480 13,394 65,720 44,660 12,353 1,000 58,013
at the beginning of the year
Movement of funds within 2,051 (2,051) ‑ ‑ 5,230 (5,230) ‑ ‑
the year
Total funds carried forward 31 48,677 11,354 16,474 76,505 38,846 13,480 13,394 65,720
at the end of the year
----- End of picture text -----

Note 1 gives details of the basis of reporting for the financial statements.

The Notes on pages 53–85 form part of the financial statements.

There are no recognised gains and/or losses other than those passing through the consolidated Statement of Financial Activities. All of the operations are continuing in the Group.

Annual Report and Accounts 2020/21 51

50 The Prince’s Trust Group Financial Statements

The Prince’s Trust statement of financial activities for the year ended 31 March 2021

----- Start of picture text -----
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds 2021 Funds Funds Funds 2020
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 3 11,496 27,897 250 39,643 19,978 31,114 12,394 63,486
Charitable activities 4 1,153 15,648 ‑ 16,801 1,459 10,754 ‑ 12,213
Other trading activities 5 2,491 ‑ ‑ 2,491 1,499 ‑ ‑ 1,499
Investments 6 236 ‑ ‑ 236 749 ‑ ‑ 749
Grant income 7 4,144 ‑ ‑ 4,144 ‑ ‑ ‑ ‑
Other ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑
Total 19,520 43,545 250 63,315 23,685 41,868 12,394 77,947
Expenditure on:
Raising funds 8 10,350 ‑ ‑ 10,350 10,492 ‑ ‑ 10,492
Charitable activities 9 6,292 43,881 ‑ 50,173 16,872 42,753 ‑ 59,625
Total 16,642 43,881 ‑ 60,523 27,364 42,753 ‑ 70,117
Net (losses)/gains on 17 4,773 ‑ 2,830 7,603 (3,331) ‑ ‑ (3,331)
investments
Net movement in funds/net 7,651 (336) 3,080 10,395 (7,010) (885) 12,394 4,499
(expenditure)/income for
the year
Total funds brought forward 37,682 8,779 13,394 59,855 44,692 9,664 1,000 55,356
at the beginning of the year
Movement of funds within
the year
Total funds carried forward 31 45,333 8,443 16,474 70,250 37,682 8,779 13,394 59,855
at the end of the year
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Note 1 gives details of the basis of reporting for the financial statements.

The Notes on pages 53–85 form part of the financial statements.

There are no recognised gains and/or losses other than those passing through the consolidated Statement of Financial Activities. All of the operations are continuing in the Group.

Group consolidated and Charity balance sheets as at 31 March 2021

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
Note £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 15 2,704 3,946 2,687 3,944
Tangible assets 16 21,203 22,129 21,165 22,077
Investments ‑ Fixed Asset 17 29,212 21,691 29,212 21,691
Investments ‑ Property 17 300 296 300 296
Investments in subsidiaries 18 ‑ ‑ ‑ ‑
Programme Related Investments ‑ loans to supported businesses
(net of provisions):
Amounts recoverable within one year 19 366 499 366 499
Total fixed assets 53,785 48,561 53,730 48,507
Current assets
Stock 20 ‑ ‑ ‑ ‑
Debtors 21 11,397 10,732 11,840 10,516
Cash held for investment purposes 22 552 1,772 ‑ 1,303
Cash at bank and in hand 22 34,117 30,236 26,008 23,462
Total current assets 46,066 42,740 37,848 35,281
Creditors: amounts falling due within one year 23 20,195 23,750 18,222 22,125
Net current assets 25,871 18,990 19,626 13,156
Total assets less current liabilities 79,656 67,551 73,356 61,663
Creditors: amounts falling due after one year 24 165 206 165 206
Provisions for liabilities and charges 25 2,986 1,625 2,941 1,602
Net assets 76,505 65,720 70,250 59,855
The Funds of the Group/Charity
Restricted income funds 29 11,354 13,480 8,443 8,779
Endowment funds 16,474 13,394 16,474 13,394
Unrestricted income funds 48,677 38,846 45,333 37,682
Total Group/Charity funds 30 76,505 65,720 70,250 59,855
----- End of picture text -----

The Notes on pages 53–85 form part of the financial statements. The financial statements on pages 49–52 were approved by the Trustees on 24 November 2021 and were signed on their behalf by:

John Booth DL

Chairman 24 November 2021

Annual Report and Accounts 2020/21 53

52 The Prince’s Trust Group Financial Statements

Group consolidated cash flow statement for the year ended 31 March 2021

----- Start of picture text -----
2021 2020
Note £’000 £’000
Cash flows from operating activities: A 3,094 10,708
Net cash generated from operating activities
Cash flows from investing activities:
Investment income 245 705
Proceeds from the sale of property, plant, and equipment 2 235
Purchase of property, plant, and equipment (738) (5,718)
Proceeds from the sale of investments 20,058 29,886
Purchase of investments (19,349) (34,936)
Decrease in cash and deposits (investment assets) (631) 111
Net cash (used in)/generated from investing activities (413) (9,717)
Cash flows from financing activities:
Repayments of borrowings (40) (43)
Cash inflows from new borrowing ‑ 73
Net cash generated form/ (used in) financing activities (40) 30
Change in cash and cash equivalents in year 2,641 1,021
Cash and cash equivalents at the beginning of the year 32,008 30,993
Change in cash and cash equivalents due to exchange rate movements 20 (6)
Cash and cash equivalents at the end of the year B 34,669 32,008
----- End of picture text -----

Notes to the cash flow statement for the year ended 31 March 2021

Note A: Reconciliation of net income to net cash inflow from operating activities

Note B: Analysis of cash and cash equivalents

2021
£’000
2020
£’000
Net income for the year (as per the
statement of fnancial activities)
10,785
7,707
Depreciation charge
2,227
5,499
Gains on investments
(7,603)
(3,331)
Dividends, interest, and rents from
investments
(245)
(778)
Loss on sale of fxed assets
684
‑
Decrease in stocks
‑
47
Increase in debtors
(665)
(2,685)
(Decrease)/Increase in creditors
(2,242)
3,353
Decrease in programme investments
1
377
Provision for (write‑off of) loans
152
519
Cash fows from operating activities:
3,094
10,708		 2021
£’000
2020
£’000
Cash held for investment purposes
552
1,772
Cash at bank and in hand
34,117
30,236
Total cash and cash equivalents
34,669
32,008

NOTES TO THE ACCOUNTS

1 Principal Accounting Policies

Basis of Preparation

The Charity prepares a consolidated cash flow statement and has therefore taken advantage of the exemption conferred by FRS 102 Section 1 not to prepare a cash flow statement for the Charity.

The financial statements have been

prepared on the going concern basis. There are no material uncertainties about The Prince’s Trust (Charity) or its subsidiaries’ ability to continue. The Charity is a public benefit entity.

The historical cost convention, with the exception of investments which are included at fair value.

Income

Estimates and underlying assumptions are subject to constant assessment. Changes in estimates and assumptions are recognised in the period in which the estimates are revised.

Basis of Consolidation

Income is accrued and included in the SOFA when the Group is entitled to the income, receipts can be quantified, and the receipt is probable.

‘Group’ refers to The Prince’s Trust and all its subsidiary undertakings. For the year ended 31 March 2021, the results, assets, and liabilities of the following subsidiaries have been included in the financial statements:

The areas involving higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 2.

Grant income is credited to the Statement of Financial Activities when received or receivable whichever is earlier, unless the grant relates to a specific future period, in which case it is deferred. Included within grant income is income received as part of the Coronavirus Job Retention Scheme (CJRS), which has been accounted for as a government grant under the performance model. CJRS grants are receivable in respect of qualifying employees and are recognised when salary payments have been made to the qualifying employees. As the CJRS is designed to compensate for staff costs, the amounts received are recognised over the same period as the costs to which they relate. CJRS grants are not received with restriction as to the charitable purposes for which they can be spent.

Prince’s Trust International Prince’s Trust Australia Prince’s Trust Aotearoa New Zealand Prince’s Trust Canada Prince’s Trust USA Prince’s Trust Trading Limited

The accounting policies have been applied consistently throughout the financial statements in both the current year and the prior year.

Amounts were consolidated on a line‑by‑line basis.

Basis of Accounting

The Charities Act 2011 requires financial statements to be prepared in accordance with Charities (Accounts and Reports) Regulations 2008. These financial statements have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective from 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Income and expenditure relating to subsidiaries have been included in the consolidated Financial Statements from the date at which each entity became part of The Prince’s Trust Group. Where, upon joining the Group, the fair value of assets exceeded the fair value of liabilities in an entity, the resulting gain has been recognised separately within income from donations (see Note 3). All inter‑company transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated.

Grants receivable and legacies are included in the SOFA when The Trust believes it has entitlement, receipt is probable, and the amount can be measured reliably. Donations are accounted for when received, except sponsorships from events which is recognised when the event takes place and major gifts which are recognised on a receivable basis where receipt is probable, there is entitlement to the income, and this can be measured reliably.

Transactions in local currency have been converted to GBP in the Statement of Financial Activities (SOFA) using an average exchange rate between the point of joining the Group and the end of the financial year. Balances have been converted using the exchange rate at 31 March 2021 and a foreign exchange gain/ loss adjustment has been posted to account for the difference between the opening and closing balance sheet rates.

The consolidated financial statements have been prepared in accordance with the following:

Grants from government and income from other public sector contracts have been recorded as income from charitable activities. All income is shown gross of related expenditure. Tax credits receivable from gift aid donations are recognised at the time of the donation.

There were no differences in

accounting policies between the subsidiaries and The Prince’s Trust Group policies which would result in a material misstatement.

Annual Report and Accounts 2020/21 55

54 The Prince’s Trust Group Notes to the Accounts

1 Principal Accounting Policies (continued)

Income is deferred where the donor has specified that the income is to be expended in a future period or where contractual conditions for entitlement will be met in a future period. Income is also deferred when the conditions applying to the grant are not wholly within the control of The Trust.

Support costs include the salaries of those managerial staff which are not directly attributable to a particular programme of charitable work, governance costs, and of finance, IT, HR and other administrative staff and all office running costs and consumables and other overheads not specifically attributable to a particular programme of charitable work. Support costs are allocated to costs of generating funds and charitable activities on the basis of the relative size of the business units involved with fundraising and charitable work. The size of these functions is determined by reference to the number of staff (full time equivalents) in each business unit. Irrecoverable VAT is included with the item of expense to which it relates.

demonstrated to enable delivery of our programmes and the expenditure attributable to the development can measured reliably. The expenditure that is capitalised includes purchases and the directly attributable employee costs. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Developed software is amortised when the product is put in operation using the straight‑line method, based on an estimated useful life of five years.

Retail income is accounted for when the sale takes place.

Donations in kind comprise goods, services and facilities donated to The Trust which would otherwise have had to be purchased. They are valued at the amount that The Trust would have paid in order to obtain them and are included both in income and expenditure.

The useful economic life applied to each asset category is reviewed annually to ensure this is appropriate and any impairment is recognised in the year in which it occurs in the corresponding SOFA category.

Intangible Assets

Expenditure

Intangible fixed assets costing more than £500 are capitalised and are valued at their purchase cost, including any incidental expenses of acquisition.

Tangible Assets

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets costing more than £500 are capitalised and are valued at their purchase cost, including any incidental expenses of acquisition. Any impairment is recognised in the year in which it occurs in the corresponding SOFA category. Donated assets are capitalised at a value equivalent to their notional cost at the time of acquisition. Depreciation is provided on all tangible fixed assets (excluding land but including donated assets) at rates calculated to write off the cost, less estimated residual values, on a straight‑line basis over their expected useful economic lives as follows:

Acquired software is capitalised on the basis of the costs incurred to acquire and to bring to use the specific software. Software is amortised when the product is put in operation using the straight‑line method, based on an estimated useful life of eight years.

The expenditure on raising funds includes the salaries and overheads costs of the staff who undertake fundraising activities and the marketing and publicity costs associated with raising the profile of The Trust (but not those which are used in an educational manner in furtherance of the charity’s objects).

Costs incurred on development projects (i.e., internally developed software) are recognised as an intangible asset when the product is technically feasible, can be

Grants payable, including multi‑year grants, are recognised in the SOFA when awarded and the recipient has the control of meeting the conditions that have been communicated. Expenditure on charitable activity includes the write off and movement in provision of loans to supported businesses. Other direct costs included within charitable activity expenditure comprise costs generated centrally and locally, identifiable as arising directly from the delivery of The Trust’s programmes of charitable work.

Useful economic life as at 31 March 2021

Asset Category

Freehold Buildings

50 years 5 years 3 years 5 years

Plant and Equipment

Computer Equipment

Servers and communications equipment

Fixtures and fittings 10 years Leasehold improvements Over the lease

1 Principal Accounting Policies (continued)

Fixed Asset Investments

Applicants must present a business plan to a panel that makes a recommendation to The Trust for each applicant regarding the suitability of the young person to run a business and the likelihood of the business’s survival. A senior staff member with delegated authority makes the final decision on the loan application, based on affordability and viability of the business.

Listed investments are valued at bid‑market value at the balance sheet date. Gains and losses on sales of investments and unrealised revaluation surpluses or deficits are calculated by reference to the opening carrying amount and are shown on the face of the SOFA. Donated investment assets are valued at fair market value. Investments in subsidiaries are held at cost but, where necessary, impairment reviews have been conducted and reflected in the valuation stated.

In prior years, loans awarded in the year include loans issued and outstanding loan commitments. Outstanding loan commitments were those successful loan applications where a loan was not yet issued however a constructive obligation exists between The Prince’s Trust and the young person.

Investment Properties

The investment properties are shown at the fair value in the balance sheet and the valuation has been provided by the independent, external surveyors. For the London and Glasgow properties, the investment method of valuation was adopted.

The Trust is authorised by the Financial Conduct Authority (FCA); we submitted financial information to them in May 2021 based on loan book data at the end of March 2021. The review of loan balances at that stage confirmed consistency to the values reported at Note 19 to the financial statements.

The portion of properties that is used by The Trust’s own use is held at historical cost within tangible assets.

Programme Related Investments

Repayments are normally collected by direct debits or standing orders from the bank accounts of the businesses on a monthly basis. A specific provision is made against the aggregate value of loans issued, based on past experience and on management’s current expectations. Loans are only written off when there is no realistic prospect of recovering any further repayments. Interest is charged at 3% of the total loan amount for each year of the agreed term except for all loans provided by Start‑Up Loan Company where interest is charged at 6.2% APR. Interest charged on loans represents a management fee and is recognised as the loan is repaid and not at the point of loan award.

Programme‑related investments are held to further the charitable purposes of the Charity. They are held at cost less any provision for impairment. They are public benefit concessionary loans, which are arrangements entered into below the prevailing rate of interest, are not repayable on demand and are for the purposes of furthering the objectives of the Charity. Where a concessionary loan arrangement is entered into, the loan paid is retained on the balance sheet at the loan amount less an appropriate provision made for impairment.

Loans are made to individuals to start‑up businesses and are repayable over periods up to five years. Young people are eligible to apply for a loan if they are participating on the Enterprise programme with limited access to other funding.

Impairment of Fixed Assets and Investments

Fixed assets and investments are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the year in which it occurs in the corresponding SOFA category.

Stocks

Stocks consist of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slow moving and defective stock.

Discounting

The long‑term loans included in creditors falling due after one year have been discounted to the present value by using the effective interest rate.

Pensions

The Prince’s Trust has arranged a defined contribution pension scheme for its staff. The assets of the scheme are not owned by The Trust. Pension contributions charged in the SOFA represent the contributions payable by The Trust in the year.

Operating Leases

Rentals payable under operating leases are charged to the SOFA on an accruals basis.

Contractual Liabilities

The Trust provides for legal or constructive obligations that are of uncertain timing or amount at the balance sheet date on the basis of the best estimate of the expenditure required to settle the obligation.

Foreign Currencies

Items in the financial statements of the subsidiaries are measured in their primary operating currency. The consolidated financial statements are presented in sterling (£).

Transactions in foreign currencies during the year are translated at the rate ruling at the transaction date. Foreign currency balances are translated at the rate of exchange prevailing at the balance sheet date.

Foreign currency gains/(losses) are calculated as the difference between the book value of an asset at the balance sheet date less the sterling equivalent at the transaction date of disposal of that asset or the subsequent balance sheet date.

Annual Report and Accounts 2020/21 57

56 The Prince’s Trust Group Notes to the Accounts

1 Principal Accounting Policies (continued)

Foreign currency exchange gains and losses are presented in the SOFA either in the operating result if foreign currency transactions relate to operational activities, assets and liabilities, or within the financial result for non‑operating financial assets and liabilities.

Financial assets are de‑recognised when (a) the contractual rights to the cash flows from the assets expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial Instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. The Charity has only taken reduced disclosure exemptions for sections 11 and 12 of FRS 102.

Financial Liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial Assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the SOFA.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non‑current liabilities.

Financial liabilities are de‑recognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the SOFA.

Offsetting

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

Other financial assets, including investments in equity instruments which are not subsidiaries, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the SOFA, except those investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Volunteers

The Trust is grateful to the thousands of volunteers give their time freely to nurture and develop our young people. The value of this is not recognised in the Financial Statements.

Funds

The funds of The Trust have been segregated as follows:

Restricted Funds consist of donations, legacies and grants received, for which the donor or grant giver has specified the purposes for which the resources can be utilised. Outgoing resources on restricted funds reflect the appropriate expenditure that has been charged to those funds. Restricted funds are disclosed by programme in the notes to the financial statements. Individual restricted funds are disclosed where these are material in value.

Endowment Funds: An Endowment Fund to support the long‑term sustainability of The Prince’s Trust was established in 2018/19. Significant donations were made during the year to support the growth of the Endowment Fund.

Unrestricted Funds consist of all other income that has not been restricted. They are expendable at the discretion of the Trustees in furtherance of the objects of The Trust.

Transfers are made between funds where there is a release of restricted funds to unrestricted funds or charges are made between funds.

2 Critical accounting judgements and key estimates and assumptions

b) Key estimates and assumptions

Estimates and assumptions are continually evaluated and are based on historical evidence and other factors, including expectations of future events that are believed to be reasonable under the circumstances have been made by The Trust in recognising investment property and long‑term liabilities and assets.

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

a. Critical judgements in applying the entity’s accounting policies

(i) Support costs

The cost allocation methodology requires judgement as to what are the most appropriate bases to use to apportion support costs; these are reviewed annually for reasonableness. Support costs, and other expenditure judgements, are detailed in Note 1.

(i) Exemptions on transition to FRS 102

The Charity has elected to use the exemption provided in FRS 102 regarding the restatement of lease incentives entered into before the date of transition.

(ii) Provisions for liabilities and charges

(ii) Grant income recognition

The majority of grant income is recognised in line with expenditure against the grant contract, as this is deemed the most accurate proxy for the performance conditions within the grant being met. Where such grants are received in advance of delivering the goods or services required, the income is not recognised. Instead, it is recognised as a liability until performance can be measured.

Provisions for liabilities and charges (see Note 24) represents the best estimate of the liability at the balance sheet date of future unavoidable costs in respect of any legal disputes and an estimate of the probable future costs and an estimate of the probable future costs of settling these. The actual liability will be dependent on future events including whether a settlement is reached with the relevant parties.

The calculation of the value of amounts payable in dilapidation costs as at the reporting date includes an assumption this would be payable to the landlord where the planned exit is confirmed.

Annual Report and Accounts 2020/21 59

58 The Prince’s Trust Group Notes to the Accounts

3 Income and endowments from donations and legacies

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Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2021 2020
Group £’000 £’000 £’000 £’000 £’000
Corporate donations 2,374 13,060 ‑ 15,434 16,068
Grant from The Prince of Wales’s Charitable Fund 257 195 ‑ 452 950
Charitable Trusts 1,714 8,547 ‑ 10,261 6,950
Individual donations 4,316 11,874 250 16,440 39,315
Legacies 77 147 ‑ 224 2,875
Donations in kind 4,326 77 ‑ 4,403 3,744
13,064 33,900 250 47,214 69,902
Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2021 2020
Charity £’000 £’000 £’000 £’000 £’000
Corporate donations 2,035 11,918 ‑ 13,953 12,355
Grant from The Queen’s Trust ‑ ‑ ‑ ‑ ‑
Grant from The Prince of Wales’s Charitable Fund ‑ ‑ ‑ ‑ 950
Charitable Trusts 1,170 5,349 ‑ 6,519 10,201
Individual donations 4,056 10,405 250 14,711 33,500
Legacies 77 147 ‑ 224 2,875
Donations in kind 4,158 78 ‑ 4,236 3,605
11,496 27,897 250 39,643 63,486
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At 31 March 2021, in addition to legacy income that has been included in the financial statements, The Prince’s Trust Charity expected to benefit from a number of legacies from estates for which the administration had yet to be finalised. The Trust’s future income from these legacies is estimated at £1,107k (2020: £1,083k). Accrued legacy income included within the financial statements amounts to £156k (2020: £801k).

Donations in kind represent the estimated cost of services donated to the Group and Charity, at the value at which The Trust would have paid.

These amounts are included as costs in the appropriate expenditure category and consist of:

Group Group Charity Charity
2021 2020 2021 2020
Group £’000 £’000 £’000 £’000
Advertising and publicity 3,650 1,412 3,650 1,412
Charitable programme facilities 327 1,680 327 1,680
Other Professional Fees 112 121 70 29
Seconded staff 19 215 19 215
Other 9 132 5 119
Audit Fees 202 150 165 150
Offce and occupation costs 84 34 ‑ ‑
4,403 3,744 4,236 3,605

4 Income and Endowments from Charitable Activities

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Unrestricted Restricted Total Total
Funds Funds 2021 2020
Group £’000 £’000 £’000 £’000
Public sector contracts for operational programmes
Income from local and national government 313 10,545 10,858 4,156
Other public sector sources 4 588 592 1,408
European Union income ‑ 4,308 4,308 4,580
Big Lottery Fund ‑ 455 455 739
317 15,896 16,213 10,883
Fees from programme attendance
School fees – Explore ‑ ‑ ‑ ‑
Qualifications income 387 ‑ 387 508
Employers’ fees – Team ‑ 41 41 108
Training fees 333 ‑ 333 745
Other income from charitable activities 459 83 542 139
1,179 124 1,303 1,500
1,496 16,020 17,516 12,383
Income in the form of government grants from local and national government support the Group’s charitable activities and
can be further analysed as follows:
Unrestricted Restricted Total Total
Funds Funds 2021 2020
Group £’000 £’000 £’000 £’000
Department for Digital, Culture, Media & Sport ‑ 3,600 3,600 1,111
England 5 2,633 2,638 1,140
Northern Ireland ‑ 11 11 120
Scotland ‑ 2,772 2,772 1,640
Wales ‑ 96 96 ‑
Canadian government 135 1,389 1,524 111
Australian government 112 ‑ 112 34
New Zealand government 61 44 105 ‑
313 10,545 10,858 4,156
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Annual Report and Accounts 2020/21 61

60 The Prince’s Trust Group Notes to the Accounts

4 Income and Endowments from Charitable Activities (continued)

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Unrestricted Restricted Total Total
Funds Funds 2021 2020
Charity £’000 £’000 £’000 £’000
Public sector contracts for operational programmes
Income from local and national government 5 10,227 10,232 4,011
Other public sector sources 4 550 554 1,408
European Union income ‑ 4,309 4,309 4,580
Big Lottery Fund ‑ 455 455 740
9 15,541 15,550 10,739
Fees from programme attendance
School fees – Explore ‑ ‑ ‑ ‑
Qualifications income 387 ‑ 387 508
Employers’ fees – Team ‑ 41 41 108
Training fees 333 ‑ 333 745
Other income from charitable activities 424 66 490 113
1,144 107 1,251 1,474
1,153 15,648 16,801 12,213
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Income in the form of government grants from local and national government support the Group’s charitable activities and can be further analysed as follows:

can be further analysed as follows:
Unrestricted Restricted Total Total
Funds Funds 2021 2020
Charity £’000 £’000 £’000 £’000
Department for Business, Energy & Industrial Strategy ‑ ‑ ‑ 1,111
Department for Digital, Culture, Media & Sport ‑ 3,600 3,600 ‑
Department of Health ‑ 2,633 2,633 ‑
England 5 1,115 1,120 1,140
Northern Ireland ‑ 11 11 120
Scotland ‑ 2,772 2,772 1,640
Wales ‑ 96 96 ‑
5 10,227 10,232 4,011

5 Income and Endowments from Other Trading Activities

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Unrestricted Restricted Total Total
Funds Funds 2021 2020
Group £’000 £’000 £’000 £’000
Income from fundraising events 231 ‑ 231 2,397
Sponsorship 1,808 ‑ 1,808 1,296
Sale of goods 614 ‑ 614 1,266
Income from training 148 ‑ 148 50
Rental 56 ‑ 56 80
Other 11 39 50 32
2,868 39 2,907 5,121
Unrestricted Restricted Total Total
Funds Funds 2021 2020
Charity £’000 £’000 £’000 £’000
Other 2,491 ‑ 2,491 1,499
2,491 ‑ 2,491 1,499
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The unrestricted income is generated by the subsidiary Prince’s Trust Trading Limited, the results of which are shown in Note 18.

6 Income and Endowments from Investments

Unrestricted Restricted Total Total
Funds Funds 2021 2020
Group £’000 £’000 £’000 £’000
Income from fxed asset investments 192 ‑ 192 624
Interest received on programme related investments 21 ‑ 21 60
Bank interest receivable 28 4 32 95
Income from fxed asset investments 241 4 245 779
Unrestricted Restricted Total Total
Funds Funds 2021 2020
Charity £’000 £’000 £’000 £’000
Income from fxed asset investments 192 ‑ 192 624
Interest received on programme related investments 21 ‑ 21 60
Bank interest receivable 23 ‑ 23 65
236 ‑ 236 749

Annual Report and Accounts 2020/21 63

62 The Prince’s Trust Group Notes to the Accounts

7 Income and Endowments From Grants

Unrestricted Restricted Total Total
Funds Funds 2021 2020
Group £’000 £’000 £’000 £’000
Grant income 4,354 ‑ 4,354 ‑
4,354 ‑ 4,354 ‑
Unrestricted Restricted Total Total
Funds Funds 2021 2020
Charity £’000 £’000 £’000 £’000
Grant income 4,144 ‑ 4,144 ‑
4,144 ‑ 4,144 ‑

8 Expenditure on Raising Funds

8 Expenditure on Raising Funds
Allocated
Direct staff Other direct support Total Total
costs costs Costs 2021 2020
Group £’000 £’000 £’000 £’000 £’000
Cost of raising funds 5,810 997 4,554 11,361 11,493
Fundraising through trading 185 163 29 377 3,608
Investment management costs ‑ 70 ‑ 70 73
Total 5,995 1,230 4,583 11,808 15,174
Allocated
Direct staff Other direct support Total Total
costs costs Costs 2021 2020
Charity £’000 £’000 £’000 £’000 £’000
Cost of raising funds 5,286 838 4,156 10,280 10,420
Fundraising through trading ‑ ‑ ‑ ‑ ‑
Investment management costs ‑ 70 ‑ 70 72
Total 5,286 908 4,156 10,350 10,492

9 Expenditure on Charitable Activities

Allocated
Grant Funding Direct staff Other direct Support Total Total
(see Note 11) costs costs costs 2021 2020
Group £’000 £’000 £’000 £’000 £’000 £’000
Enterprise 3,691 3,481 120 3,609 10,901 9,878
Team ‑ 1,262 462 1,270 2,994 4,718
Development Awards 373 904 2 948 2,227 2,878
Achieve ‑ 2,941 126 3,077 6,144 8,465
Get into 1 2,932 712 3,145 6,790 11,224
Get Started ‑ 1,744 450 1,819 4,013 5,125
Local programmes & pilots 282 4,681 1,036 4,637 10,636 7,210
Explore ‑ 3,149 428 2,889 6,466 7,680
Prince's Trust America ‑ ‑ 1,854 ‑ 1,854 2,551
Prince's Trust Australia ‑ 330 96 285 711 882
Prince's Trust Canada ‑ 563 174 296 1,033 1,155
Prince's Trust International ‑ 1,003 1,583 584 3,170 362
Prince's Trust Aotearoa New Zealand ‑ ‑ 72 270 342 ‑
Total 4,347 22,990 7,115 22,829 57,281 62,128
Allocated
Grant Funding Direct staff Other direct Support Total Total
(see Note 11) costs costs costs 2021 2020
Charity £’000 £’000 £’000 £’000 £’000 £’000
Enterprise 3,691 3,481 120 3,609 10,901 9,878
Team ‑ 1,262 462 1,270 2,994 4,718
Development Awards 373 904 2 948 2,227 2,878
Achieve ‑ 2,941 126 3,077 6,144 8,465
Get into 1 2,932 712 3,145 6,790 11,224
Get Started ‑ 1,744 450 1,819 4,013 5,125
Local programmes & pilots 282 4,681 1,039 4,636 10,638 9,658
Explore ‑ 3,149 428 2,889 6,466 7,679
Total 4,347 21,094 3,339 21,393 50,173 59,625

Annual Report and Accounts 2020/21 65

64 The Prince’s Trust Group Notes to the Accounts

10 Support Costs

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Expenditure on Charitable Total Total
raising funds expenditure 2021 2020
Group £’000 £’000 £’000 £’000
Staff costs:
Managerial staff 267 1,367 1,634 2,026
Communications and marketing 225 1,174 1,399 1,187
Finance, IT, HR, H&S & administration 940 4,801 5,741 5,846
Recruitment, secondment & other costs 233 1,203 1,436 1,457
1,665 8,545 10,210 10,516
Other expenditure:
Office rents, maintenance & consumables 999 5,130 6,129 8,596
Staff travel and vehicle costs 105 485 590 2,366
Sundry other fees and costs 1,814 8,669 10,483 12,082
2,918 14,284 17,202 23,044
Total 4,583 22,829 27,412 33,560
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----- Start of picture text -----
Expenditure on Charitable Total Total
raising funds expenditure 2021 2020
Charity £’000 £’000 £’000 £’000
Staff costs:
Managerial staff 187 962 1,149 1,444
Communications and marketing 212 1,091 1,303 863
Finance, IT, HR, H&S & administration 853 4,393 5,246 5,016
Recruitment, secondment & other costs 233 1,201 1,434 1,450
1,485 7,647 9,132 8,773
Other expenditure:
Office rents, maintenance & consumables 969 4,989 5,958 8,508
Staff travel and vehicle costs 62 319 381 2,186
Sundry other fees and costs 1,640 8,438 10,078 11,419
2,671 13,746 16,417 22,113
Total 4,156 21,393 25,549 30,886
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11 Grants Payable

2021 2020
2021 number 2020 number
Group and Charity £’000 of awards £’000 of awards
Grants to individual benefciaries:
Enterprise grants 3,691 2,119 398 793
Development Awards 373 3,470 870 5,093
4,064 5,589 1,268 5,886
Other grants:
Get Into programmes 1 3
Local programmes & pilots 282 101
4,347 1,372

Grants to individual beneficiaries

The Prince’s Trust Charity awards Enterprise grants to individuals, for test marketing projects or to start up new businesses. Development Awards are described in more detail in the Trustees’ Report.

Other grants

Grant‑making activities occur under the charitable activities undertaken within the Enterprise, Awards and Get Into programmes, and within local programmes and pilots.

Annual Report and Accounts 2020/21 67

66 The Prince’s Trust Group Notes to the Accounts

12 Group Employee Information and Trustees’ Emoluments

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2021 2020
Staff members No. No.
Average headcount of employees analysed by function:
Charitable purposes and support staff 1,103 1,499
Fundraising 160 169
1,263 1,668
2021 2020
No. No.
Average monthly number of employees analysed by function:
Charitable purposes and support staff 1,019 976
Fundraising 155 163
1,174 1,139
2021 2020
£’000 £’000
Staff costs for the above employees were:
Wages and salaries 34,653 34,863
Social security costs 3,279 3,462
Pensions and post‑retirement benefits 1,697 1,605
39,629 39,930
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The Prince’s Trust Charity paid £214k (2020: £403k) in redundancy costs during the year. Of this, £47k (2020: £94k) was related to ex‑gratia payments. The nature of the payments was due to restructuring and has been accounted for on accrual basis. This was funded by unrestricted income.

The Prince’s Trust Charity received donations in kind for the services of seconded staff valued at 19k (2020: £215k).

During the year, the methodology for calculating the average headcount of employees analysed by function was updated and resulted in a change to the 2020 figures. The revised 2020 figures are shown below:

Restated
2021 2020
Staff members
No.		 No.
Average headcount of employees analysed by function:
Charitable purposes and support staff
1,103		 1,092
Fundraising
160		 186
1,263 1,278

12 Group Employee Information and Trustees’ Emoluments (continued)

Employee emoluments (Group)

The following number of employees earned emoluments in respect of the year in excess of £60,000 within the bands shown below. This represents Group employees, including all Prince’s Trust subsidiary entities. Emoluments include taxable benefits but exclude employer pension costs.

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2021 2020
£’000 £’000
£60,001 – £70,000 18 32
£70,001 – £80,000 11 15
£80,001 – £90,000 4 5
£90,001 – £100,000 3 3
£100,001 – £110,000 4 ‑
£110,001 – £120,000 ‑ 3
£120,001 – £130,000 1 2
£130,001 – £140,000 ‑ ‑
£140,001 – £150,000 1 ‑
£150,001 – £160,000 ‑ ‑
£160,001 – £170,000 1 ‑
£170,001 – £180,000 ‑ 2
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The Prince’s Trust Charity paid £158k (2020: £438k) into defined contribution schemes for 30 (2020: 35) higher paid employees.

Total aggregate emoluments for Key Management Personnel of the Group were as follows:

2021 2020
Group £’000 £’000
Key Management Personnel 1,915 2,089

Key Management Personnel include the senior leadership of The Prince’s Trust Charity, the Group Chief Executive and Chief Executive of each of Prince’s Trust International, Prince’s Trust Australia, Prince’s Trust Aotearoa New Zealand, Prince’s Trust Canada and Prince’s Trust USA.

Trustee Emoluments

No trustees received salaries, fees, reimbursement of travel expense or other benefits form the Group during the year (2020: £nil). Total donations from trustees are disclosed in Note 32.

Annual Report and Accounts 2020/21 69

68 The Prince’s Trust Group Notes to the Accounts

15 Intangible Assets

13 Taxation

The Charity was a registered charity throughout the year. As such it is not liable to corporation tax on the surplus of income over expenditure for the year (s478 CTA 2010) or gains arising from the disposal of assets (s256 TCGA 1992) so far as the proceeds are used for charitable purposes only.

The Charity is registered for VAT and, where applicable, expenditure is recorded net of recoverable VAT.

14 Net Income for the Year

----- Start of picture text -----
2021 2020
£’000 £’000
Net income for the year is stated after charging:
Depreciation of intangible and tangible fixed assets 2,227 5,499
Operating lease rentals:
–Land and buildings 1,142 1,326
–Other 53 190
Auditors’ remuneration:
–For external audit only – Group and Charity 223 209
–For external audit only – UK subsidiaries 25 48
–For external audit only – Overseas subsidiaries 46 34
–Other services 28 13
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All numbers exclude VAT.

The auditors’ remuneration for the group and charity was £223k (2020: £209k), of which £165k (2020: £150k) represents donated services.

The auditors made no charge for the audit of Prince’s Trust Trading Limited (2020: £Nil), where the value of the donated services was £11k (2020: £11k).

The auditors’ remuneration for Prince’s Trust International was £13k (2020: £13k). An additional £28k of other audit services were undertaken by Prince’s Trust International during the year.

The audit of Prince’s Trust Canada was undertaken by PwC in Canada (£5k, 2020: £5k), PT Australia was undertaken as donated services by EY in Australia (£26k, 2020: £26k), PT Aotearoa New Zealand was undertaken by HLB Mann Judd (£2k, 2020: £2k) and PT USA was undertaken by PKF O’Connor Davies (£13k, 2020: £14k).

----- Start of picture text -----
Databases and Assets under
Software construction Total
Group £’000 £’000 £’000
Cost or valuation on transfer
At 1 April 2020 9,881 ‑ 9,881
Additions 308 ‑ 308
‑ ‑ ‑
Disposals
‑ ‑ ‑
Reclassification
At 31 March 2021 10,189 ‑ 10,189
Accumulated Amortisation
At 1 April 2020 5,935 ‑ 5,935
Charge for year 1,550 ‑ 1,550
‑ ‑ ‑
Disposals
‑ ‑ ‑
Reclassification
At 31 March 2021 7,485 ‑ 7,485
Net book value
At 31 March 2021 2,704 ‑ 2,704
At 31 March 2020 3,946 ‑ 3,946
Databases and Assets under
Software construction Total
Charity £’000 £’000 £’000
Cost or valuation on transfer
At 1 April 2020 9,865 ‑ 9,865
Additions 292 ‑ 292
‑ ‑ ‑
Disposals
‑ ‑ ‑
Reclassification
At 31 March 2021 10,157 ‑ 10,157
Accumulated Amortisation
At 1 April 2020 5,921 ‑ 5,921
Charge for year 1,549 ‑ 1,549
‑ ‑ ‑
Disposals
‑ ‑ ‑
Reclassification
At 31 March 2021 7,470 ‑ 7,470
Net book value
At 31 March 2021 2,687 ‑ 2,687
At 31 March 2020 3,944 ‑ 3,944
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Annual Report and Accounts 2020/21 71

70 The Prince’s Trust Group Notes to the Accounts

16 Tangible Assets

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Freehold
Land & Fixtures & Computer Plant & Leasehold Assets under
Buildings Fittings Equipment Equipment Improvements construction Total
Group £’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation on transfer
At 1 April 2020 15,027 1,197 4,666 115 6,613 273 27,891
Additions ‑ 12 264 ‑ ‑ 156 432
Disposals (84) (63) (129) (13) (26) (427) (742)
Reclassification 1,252 3 (103) ‑ (1,256) 104 ‑
At 31 March 2021 16,195 1,149 4,698 102 5,331 106 27,581
Accumulated Depreciation
At 1 April 2020 265 334 3,542 110 1,511 ‑ 5,762
Charge for year 109 120 441 5 2 ‑ 677
Disposals (1) (30) (15) (13) (2) ‑ (61)
‑ ‑ ‑ ‑ ‑ ‑ ‑
Reclassification
At 31 March 2021 373 424 3,968 102 1,511 ‑ 6,378
Net book value
At 31 March 2021 15,822 725 730 ‑ 3,820 106 21,203
At 31 March 2020 14,762 863 1,124 5 5,102 273 22,129
----- End of picture text -----

----- Start of picture text -----
Freehold
Land & Fixtures & Computer Plant & Leasehold Assets under
Buildings Fittings Equipment Equipment Improvements construction Total
Charity £’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation on transfer
At 1 April 2020 15,027 1,169 4,606 115 6,605 273 27,795
Additions ‑ 12 257 ‑ ‑ 155 424
Disposals (84) (56) (116) (13) (26) (427) (722)
Reclassification 1,252 3 (103) ‑ (1,256) 104 ‑
At 31 March 2021 16,195 1,128 4,644 102 5,323 105 27,497
Accumulated Depreciation
At 1 April 2020 265 321 3,511 110 1,511 ‑ 5,718
Charge for year 109 116 422 5 ‑ ‑ 652
Disposals (1) (19) (3) (13) (2) ‑ (38)
‑ ‑ ‑ ‑ ‑ ‑ ‑
Reclassification
At 31 March 2021 373 418 3,930 102 1,509 ‑ 6,332
Net book value
At 31 March 2021 15,822 710 714 ‑ 3,814 105 21,165
At 31 March 2020 14,762 848 1,095 5 5,094 273 22,077
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17 Investments

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Main Endowment Investment Main Endowment Investment
Portfolio Portfolio property Total Portfolio Portfolio property Total
2021 2021 2021 2021 2020 2020 2020 2020
Group and Charity £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Listed investments at market
value:
Common Investment Funds 12,738 16,474 ‑ 29,212 12,007 9,684 ‑ 21,691
Gifts and cash ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑
Total fixed asset investments 12,738 16,474 ‑ 29,212 12,007 9,684 ‑ 21,691
Wolfson House, Glasgow ‑ ‑ 300 300 ‑ ‑ 296 296
Total property investments ‑ ‑ 300 300 ‑ ‑ 296 296
Main Endowment Investment Main Endowment Investment
Portfolio Portfolio property Total Portfolio Portfolio property Total
2021 2021 2021 2021 2020 2020 2020 2020
Group and Charity £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment assets inside the UK 12,738 16,474 300 29,512 12,007 9,684 296 21,987
Investment assets outside the UK ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑
Total fixed asset investments 12,738 16,474 300 29,512 12,007 9,684 296 21,987
Balance brought forward 12,007 9,684 296 21,987 13,399 ‑ 319 13,718
Acquisition at cost 6,157 13,192 ‑ 19,349 22,394 15,872 ‑ 38,266
Proceeds of disposals (9,339) (10,719) ‑ (20,058) (21,732) (4,823) ‑ (26,555)
Cash held for investment 600 31 ‑ 631 (111) 0 ‑ (111)
Net gain/(losses) in value of 3,313 4,286 4 7,603 (1,943) (1,365) (23) (3,331)
investments
Write down of investment ‑ ‑ ‑ ‑ ‑ ‑ ‑ ‑
Balance carried forward 12,738 16,474 300 29,512 12,007 9,684 296 21,987
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The increase in the fixed asset investments year on year primarily relates to the donations received by The Trust for the Endowment Portfolio that has been received in year. The trustees believe that the carrying value of the investments is supported by their underlying net assets.

The following investments are considered significant and contribute more than 5 per cent of the total investment value:

% Contribution to Total Investment 2021 2020
M&G Equities 37% ‑
Xtrackers MSCI World UCITS ETF 19% 46%
Lansdowne 19% ‑
HSBC FTSE All World Index Fund 18% 47%

The investment property is shown at fair value in the balance sheet and the valuation has been provided by the external surveyors. The property portion that is used by The Prince’s Trust for its own use is held at historical cost within tangible assets.

A valuation has been prepared for Wolfson House on the basis of the market value, which is defined as the estimated amount for which an asset or liability should be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

The valuation report for the property was prepared by CBRE Limited, independent property valuer, who is qualified for the purpose of valuation as per the Red Book. CBRE Limited confirms that “Fair Value reported is effectively the market value of the property and does not have any restrictions on the realisability of the investment property”.

The Prince’s Trust does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

Annual Report and Accounts 2020/21 73

72 The Prince’s Trust Group Notes to the Accounts

18 Investment in subsidiaries

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Name Control Interest Activity
Prince’s Trust International Company Registration Deemed Control Sole Member Charitable activities in
No. 9090276 the international sector
Charity No. 1159815
Prince’s Trust Australia Prince’s Trust Australia is a public Deemed Control Sole Member Charitable activities in
limited company and registered as a Australia
charity with the Australian Charities
and Not‑for‑profits Commission no.
ABN 73 161 872 993
Prince’s Trust Aotearoa New Registered as a charity with Deemed Control Settlor Charitable activities in
Zealand registered number CC56358 New Zealand
Prince's Trust Canada Designated as a Charitable Deemed Control Sole Member Charitable activities in
Organisation in Canada with the Canada
registered number 83229 5406 RR0001
Prince’s Trust USA Registered as a Not‑for‑Profit Deemed Control Sole Member Charitable activities
EIN: 82‑5457122 in USA
Prince’s Trust Trading Limited Company Registration 100% share 2 ordinary £1 Fundraising activities
No. 3161821 capital shares and operation of
Tomorrow's Store
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The Prince’s Trust Charity supports Prince’s Trust International, Prince’s Trust Australia, Prince’s Trust Aotearoa New Zealand, Prince’s Trust Canada and Prince’s Trust USA with the provision of advice on fundraising, operations and events. The Prince’s Trust also provides administrative support to Prince’s Trust International.

18 Investment in subsidiaries (continued)

The shares in Prince’s Trust Trading Limited are ordinary shares at par. Where the Charity has ‘deemed control’ this is by virtue of it having the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The control is achieved through sole membership or the power to remove and appoint directors from the board.

All of the above entities’ financial statements are subject to audit. All entities work to a 31 March year end.

The summarised financial information of subsidiary undertakings from their local statutory accounts is provided below:

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Prince's
Prince’s Trust Prince's Trust Prince’s Trust Prince’s Trust Prince’s Trust Trust Trading
International Australia New Zealand Canada USA Limited
£’000 £’000 £’000 £’000 £’000 £’000
2021
Income 3,897 1,068 407 1,307 1,913 2,869
Expenditure (3,626) (769) (351) (1,295) (2,147) (378)
Amount paid under deed of covenant ‑ ‑ ‑ ‑ ‑ (2,491)
to The Trust
Retained profit/(loss) for the year 271 299 56 12 (234) ‑
Assets 2,409 1,172 157 2,357 1,613 3,317
Liabilities (692) (75) (29) (1,702) (279) (3,317)
Net assets/(liabilities) 1,717 1,097 128 655 1,334 ‑
2020
Income 4,160 1,106 442 1,448 6,905 5,107
Expenditure (3,070) (985) (385) (1,448) (5,161) (3,608)
Amount paid under deed of covenant ‑ ‑ ‑ ‑ ‑ (1,499)
to The Trust
Retained profit for the year 1,090 121 57 ‑ 1,744 ‑
Assets 2,449 994 239 875 2,055 2,540
Liabilities (1,002) (251) (159) (199) (311) (2,540)
Net assets/(liabilities) 1,447 743 80 676 1,744 ‑
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Annual Report and Accounts 2020/21 75

74 The Prince’s Trust Group Notes to the Accounts

19 Programme Related Investments: loans to supported businesses

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Total Total
2021 2020
Charity and Group £’000 £’000
Loan reconciliation
Loans at the beginning of the year 2,491 2,866
Loans awarded in the year ‑ 4
Loans repaid in the year (217) (379)
Loans written off in the year ‑ ‑
Loans at the end of the year 2,274 2,491
Provision reconciliation
Provision at the beginning of the year 1,992 1,472
Movement on loans provision during the year (236) 520
Remove Write off 152 ‑
Provision at the end of the year 1,908 1,992
Net loan balance at the beginning of the year 499 1,394
Net loan balance at the end of the year 366 499
Total Total
2021 2020
Charity and Group £’000 £’000
Disclosed as:
Amounts recoverable within one year 366 499
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The Prince’s Trust Charity provides loans to young people who are being supported to start up their own business. The average loan size during the year was £3,670. In exceptional circumstances, the loan size can be up to a maximum of £5,000. The loans are normally repayable over three years (up to a maximum of five years). An interest rate of 6.2 per cent is charged on new loans provided by Start Up Loans Company (SULCo).

The historic SULCo loan book was assigned to the finance partner, The Enterprise Fund (trading as Growth Company Business Finance), during the year 2019/20. All new loans were also provided by the finance partner, essentially putting The Prince’s Trust in the position of a broker for which appropriate Financial Conduct Authority (FCA) permissions were issued.

All remaining loans that The Prince’s Trust issued have been assigned to the same finance partner, as well as new loans funded by The Prince’s Trust. This now means that The Prince’s Trust is a broker for all new financing activity, while remaining as a funder of these loans.

The carrying amount of the concessionary loans at the year‑end was £2.3m (2020 £2.5m).

There are no loans committed but not taken up at 31 March 2021 (2020: £nil).

20 Stock

Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Goods for resale
–		 – – –

21 Debtors

Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Amounts falling due within one year
Trade debtors
2,268		 2,560 335 258
Gift aid recoverable
120		 68 120 68
Amounts owed by Group undertakings
‑		 ‑ 2,832 2,382
Central Government & European grants receivable
7,589		 6,265 7,589 6,265
Taxation and social security
62		 76 ‑ 39
Other debtors
40		 107 5 56
Prepayments
873		 1,462 719 1,316
Accrued income
445		 194 240 132
11,397 10,732 11,840 10,516

The Prince’s Trust Charity played the role of lead charity in a consortium, administering contractual arrangements on behalf of other members with the donor, Skills Development Scotland (SDS). At 31 March 2021, the total balance outstanding from SDS and due to other consortium members was £158k (2020: £357k) and the balance received from SDS but not yet paid out to other consortium members was £nil (2020: £nil).

22 Cash at bank and in hand

Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Cash held for investment purposes
552		 1,772 ‑ 1,303
Cash at bank and in hand
34,117		 30,236 26,008 23,462
34,669 32,008 26,008 24,765

During the year, the Charity reclassified cash held for investment purposes as cash at bank and in hand.

£5m of the cash may be repayable to a funder, which is therefore recognised as a creditor. See Note 23.

Annual Report and Accounts 2020/21 77

76 The Prince’s Trust Group Notes to the Accounts

23 Creditors: amounts falling due within one year

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Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Trade creditors 646 1,228 389 1,022
‑ ‑ ‑ ‑
Enterprise loans awarded but not yet paid
‑ ‑ ‑ ‑
Amounts owed to group undertakings
Taxation and social security 1,015 946 1,001 916
Other creditors 1,217 5,877 1,114 7,030
Accruals 3,084 4,183 4,094 4,038
Deferred income 14,188 11,471 11,579 9,074
Mortgage 45 45 45 45
20,195 23,750 18,222 22,125
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Accruals for The Prince’s Trust Charity include a holiday accrual as at 31 March 2021 of £909k (2020: £715k)

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Group Charity
Reconciliation of Deferred Income £’000 £’000
Brought forward at 1 April 2020
Contract and conditional Income 11,180 9,074
Income for events 291 ‑
Total brought forward at 1 April 2020 11,471 9,074
Deferred income released during year
Contract and conditional Income 5,846 3,741
Income for events 291 ‑
Total deferred income released during year 6,137 3,741
Incoming resources deferred during year
Contract and conditional Income 8,163 6,246
Income from events 691 ‑
Total incoming resources deferred during year 8,854 6,246
Deferred income carried forward at 31 March 2021
Contract and Conditional Income 13,497 11,579
Income for Events 691 ‑
Total carried forward at 31 March 2021 14,188 11,579
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24 Creditors: amounts falling due after one year

2021 2020
£’000 £’000
Mortgage – Wolfson House
Between one and fve years
165		 206
Over fve years
‑		 ‑
165 206

The outstanding mortgage was taken out in 2014 by The Prince’s Trust Charity for the purchase of Wolfson House, 15 Carlton Court, Glasgow.

25 Provisions for Liabilities and Charges

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Dilapidations Other Total
Group £’000 £’000 £’000
As at 1 April 2020 676 949 1,625
Charged to the SOFA 652 642 1,294
Amount utilised (83) 150 67
As at 31 March 2021 1,245 1,741 2,986
Dilapidations Other Total
Charity £’000 £’000 £’000
As at 1 April 2020 676 926 1,602
Charged to the SOFA 652 620 1,272
Amount utilised (83) 150 67
As at 31 March 2021 1,245 1,696 2,941
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In 2011, Fairbridge (which had long ceased to have any involvement in child migration programmes) became part of The Prince’s Trust. At the time, The Prince’s Trust inherited the archives. Fairbridge was subsequently dissolved in 2013.

In March 2020, Fairbridge was restored to the register of companies in England & Wales. Fairbridge (Restored) Limited was then placed into administration with the appointment of administrators on 25 March 2020.

As a result of discussions with the administrators of the Fairbridge entity in August 2021, the provision has been updated to reflect the acceptance from the administrators of a counteroffer, which represents management’s best estimate up to the date of signing.

The provision in relation to Fairbridge is expected to be settled within one year.

Annual Report and Accounts 2020/21 79

78 The Prince’s Trust Group Notes to the Accounts

26 Financial Instruments

The Group has the following financial instruments:

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Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Financial assets measured at amortised cost:
Trade debtors 2,268 2,560 335 258
Cash 34,669 32,008 26,008 24,765
Other debtor transactions 8,256 10,347 10,786 10,258
45,193 44,915 37,129 35,281
Financial assets that are equity investments measured at cost less
impairment:
Programme‑related investments 366 499 366 499
Financial assets measured at fair value through income and
expenditure
Investments 29,512 21,987 29,512 21,987
Financial liabilities measured at amortised cost
Trade creditors (646) (1,228) (389) (1,022)
Other creditor transactions (6,636) (6,823) (7,529) (7,945)
(7,282) (8,051) (7,918) (8,967)
67,789 59,350 59,089 48,800
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The amortised mortgage interest expense for The Prince’s Trust Charity for the year was £6k (2020: £6k).

27 Pension Schemes

The Trust provides defined contribution pension schemes that are available to all UK‑based eligible employees. During the year, the Trust contributed 5 per cent of gross salary of employees subject to a minimum of 3 per cent from the employee.

The Trust contributes a minimum of 5 per cent from the employee, for those employees who were auto enrolled into The Trust’s work‑based pension scheme. There are a number of employees whereby The Trust contributes 7.5 per cent of gross salary subject to a minimum of 2.5 per cent from the employee. This scheme is now closed for new employees.

28 Financial Commitments

At 31 March 2021, as lessee, the Group and Charity had total commitments under non‑cancellable operating leases for land and buildings, vehicles and photocopiers as follows:

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Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Land and Buildings
Operating leases which expire:
Within one year 1,064 1,252 1,064 1,252
Between one and five years 3,022 3,874 2,817 3,596
Over five years 3,025 3,192 3,025 3,192
7,111 8,318 6,906 8,040
Vehicles – operating leases which expire:
Within one year ‑ 138 ‑ 138
Between one and five years ‑ 264 ‑ 264
‑ 402 ‑ 402
Office machinery – operating leases which expire:
Within one year ‑ 2 ‑ 2
‑ ‑ ‑ ‑
Between one and five years
‑ 2 ‑ 2
7,111 8,722 6,906 8,444
At 31 March 2021, as lessor, the Group and Charity was due total commitments under non‑cancellable operating leases for
land and buildings as follows:
Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Land and Buildings
Operating leases which expire:
Within one year 52 52 52 52
‑ ‑ ‑ ‑
Between one and five years
52 52 52 52
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There are a number of employees whereby The Trust contributes into a scheme as a result of the Prince’s Trust Youth Business Scotland merger. The contribution rate of 10 per cent from the employer for existing and eligible members is paid into this scheme.

The assets of all of the schemes are held separately from The Trust. The pension cost of these schemes in the year was £1,618k (2020: £1,469k). The contributions outstanding as at 31 March 2021 were £264k (2020: £151k). Pension costs are allocated to unrestricted funds.

Annual Report and Accounts 2020/21 81

80 The Prince’s Trust Group Notes to the Accounts

29 Restricted Income Funds

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Transferred Balance
Balance Income Expenditure from 31 March
1 April 2020 in year in year unrestricted 2021
Group £’000 £’000 £’000 £’000 £’000
Enterprise 2,289 5,554 (5,909) ‑ 1,934
Team 3 812 (812) ‑ 3
Awards 77 601 (614) ‑ 64
Achieve 353 2,540 (2,510) ‑ 383
Get Into 1,465 5,876 (5,887) ‑ 1,454
Get Started 134 1,349 (1,326) ‑ 157
Pilots and local programmes 1,137 3,107 (3,596) ‑ 648
Regional & other restrictions 4,475 22,080 (23,356) ‑ 3,199
Explore 148 1,627 (1,712) ‑ 63
Prince’s Trust International 976 3,259 (2,959) ‑ 1,276
Prince’s Trust Australia 473 448 (534) ‑ 387
Prince’s Trust Aotearoa New Zealand 99 38 ‑ ‑ 137
Prince’s Trust Canada 307 1,034 (1,033) ‑ 308
Prince’s Trust USA 1,544 1,651 (1,854) ‑ 1,341
13,480 49,976 (52,102) ‑ 11,354
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Transferred Balance
Balance Income Expenditure from 31 March
1 April 2020 in year in year unrestricted 2021
Charity £’000 £’000 £’000 £’000 £’000
Enterprise 2,289 5,554 (5,909) ‑ 1,934
Team 3 812 (812) ‑ 3
Awards 77 601 (614) ‑ 64
Achieve 354 2,540 (2,510) ‑ 384
Get Into 1,584 5,876 (5,887) ‑ 1,573
Get Started 134 1,349 (1,326) ‑ 157
Pilots and local programmes 1,076 3,107 (3,597) ‑ 586
Regional & other restrictions 3,114 22,079 (21,514) ‑ 3,679
Explore 148 1,627 (1,712) ‑ 63
8,779 43,545 (43,881) ‑ 8,443

All the funds disclosed above are restricted in so far as the funders have specified that the income can only be expended on particular programmes and activities.

29 Restricted Income Funds (continued)

Due to the additional requirements of the funder, the income, expenditure and restricted fund balances of the following grants are disclosed below:

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Opening Closing
balance balance
1 April Income Expenditure 31 March
2020 in year in year 2021
£’000 £’000 £’000 £’000
The Big Lottery (BLF)
Big Lottery Fund & ESF Building Better Opportunities – West of England Works 10 71 (81) ‑
BLF – Reaching Communities Southampton 28 93 (121) ‑
BLF – Youth Hub 12 147 (159) ‑
National Lottery Community Fund – Scotland 14 193 (173) 34
Grantham Building Better Opportunities ‑ 13 (13) ‑
Leicester Building Better Opportunities ‑ 30 (30) ‑
Luton Building Better Opportunities ‑ 15 (15) ‑
Barnardo’s BBO Extension 20–22 ‑ 52 (52) ‑
Government
Securing a Diverse Future Workforce for Health and Social Care 1,004 2,633 (3,637) ‑
Future Workforce Funding – GMCA 430 2,523 (2,953) ‑
Youth COVID‑19 Support Fund ‑ 3,600 (3,600) ‑
Northern Ireland
Department for Foreign Affairs – Youth Academy 17 11 (28) ‑
Careers and Enterprise Company
Mentoring Fund ‑ 54 (54) ‑
ERDF
Enterprise 1830 – Small Business Loans 080/P2/033 ‑ ‑ 253 253
Enterprise 1830 – Small Business Loans FS/SL9022 ‑ 300 ‑ 300
Enterprise 1830 – Small Business Loans XFS/SL9022 ‑ 244 ‑ 244
ERDF Enterprise – Coventry and Warwickshire Phase 2 (06R18P02718) ‑ 20 (20) ‑
ERDF Enterprising – West of England ‑ 1 (1) ‑
ERDF GLA EP London – Boost your Business ‑ 223 (223) ‑
ERDF EP Devon April 2018–21 ‑ 74 (74) ‑
C2C ERDF Jan 20‑Dec 22 ‑ 52 (52) ‑
SELEP ERDF Extension 20–21 ‑ 37 (37) ‑
ESF
Newcastle City Council – ESF (101) 101 ‑ ‑
Active Lancashire – More Positive Together 16–19 ‑ 63 (63) ‑
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Annual Report and Accounts 2020/21 83

82 The Prince’s Trust Group Notes to the Accounts

29 Restricted Income Funds (continued)

Due to the additional requirements of the funder, the following amounts received during the year are also disclosed:

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Amount
Funder Project £’000
King Baudouin Foundation United States (Caterpillar King Baudouin Foundation United States (Caterpillar Foundation) 88
Foundation)
Central Bedfordshire Council Youth Support Services 8
Staffordshire PCC The Prince's Trust Targeted Prevention Project 2 127
DWP ESF – Steps to Work 44
Birmingham City Council Birmingham Youth Promise Plus – Phase 2 128
Coventry City Council Coventry Ambition Phase 2 29
University Hospitals Birmingham Birmingham Youth Promise Plus – NHS Phase 2 (25)
WMCA WMCA Digital Skills 174
West Midlands PCC Youth Opportunities Fund 10
Leicestershire PCC Leicestershire PCC 2019/20 13
Nottingham City Council D2N2 ESF NEET Employ Local 'Way2Work' 76
Bedfordshire and Luton Community Foundation LLAL Community Investment Fund 2020/21 51
Birmingham City Council Syrian Refugee Resettlement 11
Warwickshire Wildlife Trust Green Recovery Challenge Fund 12
Cosaraf Charitable Foundation Enterprise Programme 27
Cosaraf Charitable Foundation Mosaic Secondary Schools mentoring programme 24
Caretech Charitable Foundation Health & Social Care 40
Earl of Caledon Support young people in NI 333
Education Authority Transitional Funding 2020/21 60
Education Authority Regional Youth Restart Fund 2020/21 8
Education Authority Youth Service PPE Funding 2020/21 1
Robertson Trust Gi Health Care 10
City Bridge Trust Ten‑year partnership to support the hardest to reach young 1,000
Londoners
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30 Analysis of Net Assets Between Funds

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Unrestricted Restricted Endowment Total
Funds Funds Funds 2021
Group £’000 £’000 £’000 £’000
Fund balances at 31 March 2021 are represented by:
Intangible fixed assets 2,704 ‑ ‑ 2,704
Tangible fixed assets 21,203 ‑ ‑ 21,203
Investments 13,404 ‑ 16,474 29,878
Current assets 25,560 20,506 ‑ 46,066
Current liabilities (11,043) (9,152) ‑ (20,195)
Long‑term liabilities (3,151) ‑ ‑ (3,151)
48,677 11,354 16,474 76,505
Unrestricted Restricted Endowment Total
Funds Funds Funds 2021
Charity £’000 £’000 £’000 £’000
Fund balances at 31 March 2021 are represented by:
Intangible fixed assets 2,687 ‑ ‑ 2,687
Tangible fixed assets 21,165 ‑ ‑ 21,165
Investments 13,404 ‑ 16,474 29,878
Current assets 17,223 20,625 ‑ 37,848
Current liabilities (6,040) (12,182) ‑ (18,222)
Long‑term liabilities (3,106) ‑ ‑ (3,106)
45,333 8,443 16,474 70,250
31 Reconciliation of Movement in Funds
Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Opening funds 65,720 58,013 59,855 55,356
Net incoming resources for the year 3,182 11,038 2,792 7,830
Net (losses)/gains on investments 7,603 (3,331) 7,603 (3,331)
Closing funds 76,505 65,720 70,250 59,855
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Annual Report and Accounts 2020/21 85

84 The Prince’s Trust Group Notes to the Accounts

32 Related Party Transactions

The Prince’s Trust in the UK entered into the following material transactions with its subsidiaries during the year. All income and expenditure is removed on consolidation.

33 Events after the reporting period

In August 2021, there was an update to the discussions with the administrators of Fairbridge (Restored) Limited which resulted in an adjustment to the provision. Further information can be found in Note 25.

Transactions during the year Transactions during the year Balances at Balances at
ended 31 March 2021 31 March 2021
£’000 £’000
Nature of
Entity Relationship Transaction Income Expenditure Debtor Creditor
Prince's Trust Deemed Costs incurred by The Prince's 336 ‑ 161 ‑
International control Trust on behalf of Prince's Trust
International. These costs relate
to staff salaries and expenses,
procurement cards, travel and
recharge for facilities, license
fees and management fees
Prince’s Trust USA Deemed
control		 PTUSA made a total of £1.854m
in programme grants to The
Prince’s Trust		 1,854 ‑ ‑ ‑
Prince's Trust Wholly Management charge for costs 215 ‑ 215 ‑
Trading owned incurred by The Prince's Trust on
subsidiary behalf of Prince's Trust Trading
Limited
Prince's Trust
Trading		 Wholly
owned
subsidiary		 Distribution of year‑end proft to
The Prince's Trust, under deed of
covenant		 2,451 ‑ 2,451 ‑

Expenses reimbursed to trustees and the remuneration of key management personnel are disclosed in Note 12. Transactions by the Charity with its defined contribution pension scheme are set out in Note 27.

The following transactions were entered into with members of The Prince’s Trust Council or its committees, or with organisations in which those individuals hold a position of influence. There were no outstanding balances in relation to any of these transactions at the year end.

£230k (2020: £220k) was received as an individual donation from Ian Mukherjee, who was appointed as Trustee to the Council in December 2015.

£10k (2020: £nil) was received as an individual donation from Michelle Pinggera, who was appointed as Trustee to the Council in July 2017.

£25k (2020: £nil) was received as an individual donation from Richard Oldfield OBE DL, who was appointed as Trustee to the Council in September 2019.

£30k (2020: £nil) was received from J Leon & Company Limited of which Tania Slowe is Director.

£2k (2020: £nil) was received from The Barkshire Charitable Trust of which John Booth DL is a Director.

£13k (2020: £nil) was received by Prince’s Trust Australia from Julie Bishop who is the Chair of Prince’s Trust Australia.

There were no other transactions with the directors or board members of any of The Prince’s Trust Group’s subsidiaries, or their affiliated organisations.

Annual Report and Accounts 2020/21 87

86 The Prince’s Trust Group Notes to the Accounts

Additional Unaudited Information

Income and Expenditure Account for Wales, Scotland and Northern Ireland

To meet the audit requirements of some funders in the UK, the results of each of Wales, Scotland and Northern Ireland are summarised below. The results are presented in The Trust’s management accounts and include an allocation of the shared support costs of head office and UK‑wide. These costs are allocated based on the most appropriate driver for each function; full‑time equivalent employees, young people supported or income/expenditure per function.

Activities undertaken in Wales

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2021 2020
£’000 £’000
Incoming Resources
Private Sector 2,261 2,216
Public Sector 52 170
Other 19 133
2,332 2,519
Resources Expended (including support costs)
Direct Charitable (182) (410)
Fundraising (3) (6)
Staff Costs (2,455) (2,455)
Other (1,025) (1,025)
(3,665) (3,896)
Deficit for the year (1,333) (1,377)
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Additional Unaudited Information (continued)

Activities undertaken in Northern Ireland

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2021 2020
£’000 £’000
Incoming Resources
Private Sector 1,076 659
Public Sector 1,497 1,674
Other 204 170
2,777 2,503
Resources Expended (including support costs)
Direct Charitable (562) (753)
Fundraising (36) (17)
Staff Costs (1,633) (2,819)
Other (495) (1,361)
(2,726) (4,950)
Surplus/(Deficit) for the year 51 (2,447)
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Further commentary on the activities in Northern Ireland is included within the Trustees’ report on page 16.

Further commentary on the activities in Wales is included within the Trustees’ report on page 16.

Activities undertaken in Scotland

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2021 2020
£’000 £’000
Incoming Resources
Private Sector 1,868 2,138
Public Sector 2,975 3,104
Other 83 371
4,926 5,613
Resources Expended (including support costs)
Direct Charitable (1,111) (1,741)
Fundraising ‑ (3)
Staff Costs (4,447) (4,993)
Other (2,062) (2,280)
(7,620) (9,017)
Surplus/(Deficit) for the year (2,694) (3,404)
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Further commentary on the activities in Scotland is included within the Trustees’ report on page 16.

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