THEIRWORLD {a charitable company limited by guarantee) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 Company Number 4422413 Charity Number 1092312
THEIRWORLD REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 CONTENTS Page Legal and Adminislralive details Tru5tees' Report AudiloT'S Report Group Statement of Financial Activities 11 Group and Charity Balance Sheols 12 Group Statement of Cash Flows 13 Notes lo the financial statements 14
THEIRWORLD LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 NOVEMBER 2020 Trusteos S Brown D J Boulcher MBE L Doughty B Hewitt Dr. l Laing Prof. N Modi T Sowa CBE lappoinled 30 May 20211 A Weir Secretary and reglstered address D. J. Boulcher, Third Floor, The 8roadgale Tower, 20 Primrose Street, London, EC2A 2RS Company number: 4422413 Charlly number: 1092312 Audltors Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Bankers Lloyds Bank City Office Branch PO Box 1000, BXI 1LT SollcStors Farref & Co 66 Lincoln's Inn Fields London WC2A 3LH
THEIRWORLD TRUSTEES, REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 The Trustees have pleasure in presenting their report and audited financial statements of Ihe Charity and group for the year ended 30 November 2020. The financial slalemenls have been prepared in accordance with the accounling polices sel out on pages 14 10 16 and comply with the Cufrent slalulory requirements, the Memorandum and Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to chariligs preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeclive 1 January 20191 IChaTilies SORP IFRS 102)), the Financyal Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} and the Companies Act 2006. Structure, governance and managemgnt The company was incorporated on 23 April 2002. It is regi518red with th8 Charity Commission under Ihe Charities Act 2011 and received its charitabl8 slalus on 31 May 2LKI2. Management of the ChaTily is by a Board of Directors I'Trustees"l. The Trustees. who hav8 served during the year and Since the year end, are sel out in this report. The Trustees are appointed by invitation on lo the Board by existing Tru51eos. On appointment, an induction is given by an existing Trustee explaining the grant making processes and procedures as well as an overview ol the administrative procedures employed by the Charity. In addition all new Twslees are given a copy of the Code of Conduct for a Trustee. explaining in detail their role and re5ponsibililies. Tru¥teg$ The following were on the Board of Trustees during the year ended 30 November 2020 and lo the dale of this report unless as otherwise 8laled'. S Brown D J Boulcher MBE L Doughty B Hewitt Dr l Laing Prof. N Modi T Sowa CBE (appointed 30 May 2021) A Weir ObJectSves and actlvlties The governing documont of the ChaTlty is ils Memorandum and Articles of Association dated 22 April 20D2. This sets out the objects of the char¢ly which are principally the relief of poor OT infimi children and young people and the advancement ofthe education ofchil(iren and young people. The TTuslees continue lo support fLtndraising for an awareness of some of the mo$1 exciting and innovative charity ventures for children. Grant making policy During the year ended 30 November 2020 the Trustees adopted a grants policy pursuant to which the Charity will Priorilise projects relating to the health. education and welfare of child¥en an(J young people. Activlties and performance for the publlc beneflt The Trustees contirm that they have had due regard to the Charity Commission guidance and this report sets out a summary of the work of the Charity in furtherance of the public benefit. The Charity has maintained ils focus on the improvement for children and young people in early years, safe schools and youth skills as il reaches the midpoint of the Current slfalegic plan 12020-221. Alonggide this commitment, Theirworld also adapted ils activities lo accommodate the impact of Ihe Covid-19 pandemic lo protect staff and to enable project work and campaigns lo continue successfulty.
THEIRWORLD TRUSTEES, REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 During this year, the Theirworld Edinburgh Birth Cohort ITEBCI completed ils fifth year of the first fwe-year cycle as a highly contextual longitudinal study looking al childhood with a specific focLts on the mechanisms of perinatal diseases. and the biological and environmental consequences of premature birth. The study is led by Professor James Boardman, Scientific Director of the Jennrfer Brown Research Laboratory al the Universily of Edinburgh's MRC Centre for RepToducllon Health with the exlIent support of ils expertAdvisory Board and the reseaich and adminislralive staff based in the Queen's Medical Research Inslitule. The impact of Covid-19 was reported as minimal by Professor Boardman as the research and data analysis was successfully moved online, and cohort reciuitmenl was able to continue after a short pause. Additionally. th8 Jennifer Brown Research Laboratory al80 completed the Slfess Responso Systems in Mothers and Infants project during 2020. The Office of Gordon and Sarah Brown generously contributed lo the work of the Jennifer Brown Research Laboratory during the year. Theirworld reviewed its advocacy agenda and campaigns during 2020 to align with Ihe realities faced by communities and countries around the world responding to the Covid-19 pandemic. The new 'Unlock Big Change, policy agenda leilerales the Charity's commitment to the best start in life, a safe place to learn, and skills forthg future, outlining tangible advocacy ouleomes that would make a difference for millions of children. The Omnicom Group continued lo provide considerable pro bono support as part of ils commitment lo the UN Sustainable Development Goal 4110 support education for all) and provide cfeative and promotional seNices for the campaigns all year long to reinforce the policy agenda. With the support of the Conrad N Hilton Foundation. TheiTh¥orld led a campaign in Kenya to secure 10% of education budgets be directed lo ear5y years. also adapting its activities in the wake of the pandemic from attendance at public meetings and hearings lo media opportunities and the production of a scorecaTd. In Lebanon. Theirworld began a new eafly years. partnership with SKILD that ha5 been very fruitful in developing wide reaching pre-early childhood education classes with the benefit of research from Notre Dame University- Louaize and Harvard University- Children and Young People continue lo be front and centre of the drive lo end the global education crisis, and Theirworld completed a full review of all current Global Youth Ambassadors and new applicanls. By the year end, the Charity had 975 active members ofthe programme. The The10{1d Global Youth Ambassadofs have been heavily engaged in learninu about the global education cr6sis, leading campaign activities in their communities and participating in events to spread the word about the imt)ortance of investing in education. Wf(h the abrupt impact on educalion for more than 1.5 billion children worldwide, Theirworld conducted a full partnership review with all of ils projects to make adjuslmenls lo programming lo address the nalufe of education and learning during the crisis. In solidarily with parents coping with home schooling, the Charity created a #SlillLearning campaign with children's illuslralor and Theirworld Ambassador Nick Sharrall asking children to draw a self-portrail. adding details of where there were living and learning during lockdown. Images of pictures have been shared by children ffom all over the world on social media. In response to the current pandemic. Theimorld reached out and solicited ideas from ils current partners and stakeholders. As a result of these Gonversalions Theirworld commilled £131,530. In funding for nine new pfojecls across Lebanon, Turkey, Greece. Nigeria. Kenya. Uganda and Tanzania. Most of the projects provide support lo vulnerable learne¥s who were out of school due to SGhool closures. Due lo the natijre of the Covid 19 virus, most of the Projects ft)cused on distance learning and developing and distributing materials to learners and their families. many linked to refugee settings. Through these initiatives, more than 20.000 learners were reached with direct programming 2nd the digital learning materials in Lebanon. Turkey and Greece were accessed more than 560,000 limes.
THEIRWORLD TRUSTEES. REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 The Trustees of Theirworld would like lo thank the continued support of the Nalionale Poslcode Loterij {NPL), who gianled É1,350.000 lo the charity in 2020 as part of their current three-year commitment. During the same year, Thoirworld recewed an additional grant of É1.350.000 from the NPL (Dutch Postcode Lotleryl to invest in the Covid-19 education response for approximately 18.900 refugee children in the country in partnership with Education Cannot Wail and UNICEF al a learning centre on the island of Lesvos, Greece. We were devaslaled lo learn the news of the terrible lire that destroyed the Moria Camp in Lesvos where 13,000 people lost their temporary homes, and our nearby education centre was made available lo provide shelter for unaccompanied children, and later to vulnerable mothers and babies. While the learnin9 activities al the centre were on hold for much of the year, Theirwortd ir4vesled considerable time and effort lo pursuing the political commitment and funding to secure ongoing refugee education provision for all children arriving on the Greek islands. In June 2020 Theirworld published its Greek refugee report authored by Maysa Jalboul enlilled Finding Solutions lo Greece's Refugee EduCatn Crisis a call lo action which was circulated widely to decision-makers and opinion-formers. Since early 2019 Theirworld became a Direct Beneliciary of the People's Postcode Lollery {PPLI and as a result regislefed with the UK Gambling Commission as a Promoting Society and licenced PPL UK lo run lottery draw on behalf of Theirworld Projects. The resulting increased funds enabled Theirworld to expand ils Code Clubs and Skills for the Future Clubs programmes as well as support ils campaigning investment lo Unlock Big Change lo drive increased global educalion tinancing. As a result of furthei changes al PPL UK. il was agreed that during the 2020-21 Financial Year Theirworld would return lo being a Regular Beneficiary of the People's Poslcode Lottery, making applications to a charitable trust, and cease to be regislered with the Gambling ComMissn Theirworld has continued lo work on the joint initiative with the Edinburgh Business School al Heriol Watt University. to olfer Iwenly full scholarships for refugees and Lebanese nationals living in Lebanon lo provide an opportunity lo study for an online Master of Business Adminislralion degree. The earfy results have so far been excellent with well above average exam results. Al our International Women's Day event in Maich 2020 we honoured former Nigerian Finance Minister land now Director General of the World Trade Organisalionl Ngozi Okonjo-lweala for her work in children's health and education. The award was presented by Theirworld advisory board member June Sarpong OBE. In September 2020, Theirworld arid the Global Business Coalition for Education jointly hosted a series of discussions and panel evenl8 with high level speakers as part of our annual activities lo coincide with the United Nations. General Assembly. These events were moved to digital platforms lo view remotely, and attracted lar larger audiences that usual as a result making up for the loss ol the live events. Trustees have appfoved £56,646 in Small Grants in the year lo seven organi88lions.. Action for Education. The Butterfly Tree, Bognor Regis Youth Town FC, Chinansungwi Relief Hand Organisation, Edinburgh Direct Aid, Youth and Women for Opportunities Uganda and The Zoe Sarojini Education Trust. Reports from Small Grant recipients were circulated lo supporters, and included updates on the progress of funding for a new roof and classrooms for orphans and vulnerable children in Malawi, and a grant lo Edinburgh Direct Aid to fund the Fulufe Syfia Primary School in a refugee camp in the Bekaa Valley. Lebanon. The Trustees of Theiorld weie pleased lo note that the financial protocols for both TheiNorld and Ihe Global Business Coalition for Education meantwe did not need lo receive any government furlough funding and were able lo keep all our staff in full employment throughout the year. Theirwortd insliluted remote working policies from 13th March 2020 in response lo Covid-19. All staff were provided with the equipment they needed and the support lo work effectively, and staff training and wellbeing sessions lo support Working from Home and good Mental Health were provided regularly. A staff survey on Covid-19 was conducted lo determine the implications foi everyone's ability lo work from home and our broader missron, and adaplalions pul into place. The Charity held a global town hall with all staff to share the results, update them on pro9ress. share ideas and insights.
THEIRWORLD TRUSTEES, REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 The Global Business Coalition for Education IG8C-Educalion). a movement of businesses commilled lo ending the global education crisis. is a US registered corporation with exemption from Federal Income Tax under section 501{Cll3} of the Internal Revenue Code. Theirworld is the founding and sole member. Since ils formation nine years ago GBC-Educalion has ¢onlit)ued lo expand its membership, build ils youth skills programme. conduct research, connect companigs lo opportunities lo support Schools around the world. and generate tools and resOurS to impTove the business community's contribution to education. The Trustee5 would like to thank fellow Trustee and Chair. Saiah Brown for her continued support and leadeiship of Theirworld, as well as Gil M¢Neil CBE.. Director. Konrad Caulkett, Grants and Finance Director, Justin van Fleet, President and all the team for their hard Work during the course of the year. for which the Trustees are extremely grateful. The Trustees would like to thank the members of the Theirworld Advisory Boafd for their support and express their gratitude lo the Ambassadors who contribute their lime and support lo Theirworld's campaigns and advocacy work lo ensure that il gains greater prominence. Particular gratitude is shown lo Nisha Parti, Mel Varley and Karen Wagner for this seNice on the Advisory Board as they stepped down after several years, eommilmenl, and the Trustees welcome Audley Harrison MBE who has joined the advisory board this year. The Trustees would also like to thank Sarah Brown. David Boulcher MBE. Edward J Eslfada, Dr Lisa Belzberg and Joyce Malomb8 for their seNice on the GBC-Educalion Executive Board. The Trustees would also like to thank the following organisalions who have geneTously supported the work ol Theirworld, Aslley Clarke, Dubai Cares, Conrad N. Hilton Foundation, the Nalionale Poslcode Lolerij. The Office of Gordon and Sarah Brown. Omnicom Group. Open Society Foundation, Players of People's Poslcode Lottery, Reed Smith. and Valvona & Crolla, and those Organisations who have supported the WOTk of GBC- Education, Allas5ian Foundation, BHP Foundation. Dangote Foundation, Dell. Deloitte. HP. Intel and KPMG. Plans for the Futuro We will continue to work lo end the global education crisis and unleash the potential of the next generation. Our mission is to ensure Ihal every child has the best start in life, a safe place lo learn and skills for the future. We have completed the second year of a three-year Strateg plan and will continue with these priorities in tha coming year. We will also work lo create our next strategic goals and look ahead to plans that celebrate the Charity's 201h anniversary in 2022. The current strategic objectives are.. Sel agenda8 - Our pollcy and research will bring foN4ard the most relevant evidence lo expose gaps in delivering opportunity and sel the bar higher for governments and the international community lo deliver results for the next generation. Forge Powerful Partnerships - we will combine the power and know-how of young people, the business community, civil society, philanthropists, campaigners, and academia, working together in new ways. Campaign and innovate - We will mobilise our networks lo lake on the next barrier standing in the way of opportunity for young people. We will also deliver on-the. ground piojecls to solve challenge5 facing the most marginalised young people including newborns. refugees, children with disabililies and girls and collaborate with partr¢ers to expand what works. Deliver Impact - We will deliver Iransfomialive results which transcend the work of any single organisalion lo unleash sustainabte and scalable change. As the ongoing impacts of the Covid-19 pandemic continue lo emerge. we will develop new projects lo help thousands of children, including improved distance video learning materials and the provision of educational home activities for children with learning differences and Special needs. We will continue to support and protect the Charity team as they WOTk from home within Ihe pandemic lockdown and provide relevant training and guidance lo adapt to new working praclices as we relufn lo our ofliees. We will continue lo focus on securing new sources of grant funding and donor support, lo ensure we remain in a strong financial position, which will allow us lo respond swiftly to new any new circumstances as they arise,
THEIRWORLD TRUSTEES, REPORT FOR THE YEAR ENDED 30 NOVEM8ER 2020 We will invest in our new programmes to develop an online resource, The Key, to highlight Ihe relevant and impact of edUcatn investment lo all 17 of the United Nalions, Sustainable Development Goals. We will develop Theirwoild's new piaclical guide for policy makers and financing decision makers, the Education Finance Playbook summarisethe headlinefigures and draw on many reports by our colleagues and peer organisalions working to support governments around the world- particulaTly in lower-income countries fund and deliver eclucalion. We will further invest in our online tools with a new website. digital resources. and communications lo support our staff, wider team, external partners. and our Global Youth Ambassadors and expect lo see these come lo fruition in our 201h anniversary year of 2022. Following the protests around the world of 2020, Theiorld and the Global Business Co81ilion for Education will continue ils own internal efforts to hold open discussions about current events. racial equality and what more we can do in addition to our standard policies on non-discriminalion and irbclusion. While the Charity does not have Ihe answer," we have agreed that education is a tool for equity in our programmali¢ work and will continue to try lo find new ways lo support and act on the anli-racism agenda. We will also continue our policy of not using unpaid interns as part of our commitment lo ensure equal access lo opportunity for everyone, not just people who can afford lo work for free. Theirworld h88 been fortunate lo have built and grown some sliong relationships which continue lo develop to support the aims of the Charity. Theirwoild continues lo benofit from legal support and office space in London and New York and other pro-bono seNices from the global law fim) Reed Smith. TheIOr1d has renewed ils commitment lowork with the Omnicom Group for a further Ihreo years lo provide communications support for our campaign and advocacy work. We are gfaleful for the slrenglh of commitment from Players of People's Poslcode Lollery and the Nalionale Poslcode Lote¥ij and our conslruclive relationship with the team al each organisalion who help us share ourwork. We are also extremely graleful to all the organisations and individuals who raise funds. lend their voice. and contribute to the ongoing work of the Charity. Our internal team and exiernal supporters combine lo create the opportunity for Theirworld to foctss on ending the global education crisis and lo unlock big change for babies. children. young people, and their families. Flnanclal rovlew Total income for the year was £8.567,82412019 - £9,806,189) with total expenditure of £5,869.182 (2019 - £6.887,572). Funds held increased by £2.653.82112019- increase of £2.954,794). Unfeslricled funds held ale £1.305.346 12019 - £833.4091 with reslficted funds at £6.951,806 12019 £4,769,922) this figure includes £98.771 (2019: £169.4371 for the Jennifer Brown Research Laboratory, £6.059,293 {2019.- £4.158,6761 for the Global Education campaign, and £793.742 12019.. £441.8091 for the Global Business Coalition for Education. Theirworld is reliant on voluntary donations received and receipts ffom fundraising evenls, as well as grants made by Trusts and Foundations. These funds are held in bank deposit aCconIS so as to obtain the best available rates of inlerest and mitigate investment risk. The fundraising events during the year generated funds of £27.82112019'. £69.3191, which have been trealed as unreslricled income in the financial slalemenls. The Trustees are not aware of any restrictions placed on Ihi$ income but are mindful that certain individual donors may have consKlered that their donation would be sed lo support the Jennifer Blown Research Laboratory or Global Education projects. As slated in the Reserves Policy note below, in considering futur8 grants lo the University of Edinburgh Development Trust foi the Jennifer Brown Research Laboratory or for Global Education. the Trustees will have access lo the excess nrestricted funds.
THEIRWORLD TRUSTEES. REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 Reserves pollcy The Trustees aim to keep reserves lo a minimum. in excess of ongoing grant commitments, in order lo ensure that most of the income generated is distributed. The Charity operates on minimal overheads with some services and facilities provided ffee of charge. A reserve will be maintained lo cover unforeseen costs. Total reserves al 30 November 2020 amounted to £8,257,152 {2019'. £5.603,3311 of which £6,951,806 are reslricled12019.. £4,769.9221 and £18,143 are held in fixed assets (2019.. £4.0341. This leaves unTeslricted genèral funds. being unrestricted funds lèss unrestricted fixed assets, of £1,287,203 (2019.. £829,375). The Trustees conlinue lo review the level ol ffee reserves held and. will look lo hold balance to maintain core cash flow for a period of nine months. Any unreslricled reseNes in excess of this will be donated to the University of Edinburgh Development Trust for the benefit of the Jennifer Brown Research Laboratory and to ongoing Global Educalion and project work. Fundral$lng The Trustees have regularly reviewed the requirements of the Fundraising Regulator, and the decision was taken by Ibe Trustees lo regislerthe charity with the Fundraising Regulator in 2019. No complaints have been received in respect of the ChaTily's fundraising aclivily. The ChaTlty does not utilise professional fundraisers or commercial participators, though the Trustees note that Theirworld Projects Limited was the fecipient of lollery funds lun by the People's Poslcode Lollery until December 2020. Pay pollcy The Trustees consider the Board of Trustees and the Leadership Team comprise the key management personnel of the charity in charge of directing and controlling, running and opefaling the Charity on a day lo day ba818. All Trustees give of their lime freely and no Trustee received remuneration in the year. Details of Trustees. expenses, whiGh are nil. and related party Iransaclions aro disclosed in note 10 to the aceounls. The pay of the Directors and all staff are Teviewed annually and normally increased in accordance with average earnings lo reflect a cost of living 8djuslmenl. In view of the nalure of the charity, the charity benchmark against pay levels in similar chaTilies. The remuneration bench-marf(15 the mid-point of the range paid for similar roles in Similar charities and sizes. Rlsk management A risk a88essment has previously been undertaken and the Pfincipal iisks associated with the Charily's aclivilie5 have been identified and assessed. The Trustees are satisfied Ihal adequate reporting structures and procedures are in place lo manage the r15ks associated wilh the Charily's aclivilies. An assessment of these risks is undertaken each year. The piincipal risks and uncertainties identified are ongoing fundraising challenges and effective monitoring and evaluation of local partners who work on overseas projects. Statement of Trustees, responslbilitlos The TFuslee$ are responsible for prepafing the Report of tho Trustees and the financial slalements in accordance with applicable law and United Kingdom kcounling Standard8 Iuniled Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees lo prepare financial slalemenls for each financial year which give a true and fair view of the slate of affairs of the charitable company and group and of the incoming resour5 and application of resources. including the income and expenditure, of the ¢hari18ble group for that year. In prepaiing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP., make judgments and eslimales that are reasonable and prudent.,
THEIRWORLD TRUSTEES, REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020 slate whethei applicable UK Accounting Standards have been followed, subject to any malefial departures disclosed and explained in the tinancial slalemenls,. and prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the charitable group will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them lo ensure Ihal the financial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company. and the group. and hence fortaking reasonable steps forthe prevenliors and detection of fraud and other irregularilie5. Audltors All of the currenl Trltslees have taken all steps that they oughl lo have taken lo make themselves aware of any information needed by the Charity's auditors for the purposes of their audit and to establish that the auditors are aware of that infonnation. The Trustees are nol aware of any relevant information of which the auditors ale unaware. Haysmacinlyre LLP have expressed their willingness lo continue in office and a resolution to re-appoint them will be Proposed al the annual general meeting. In preparing this Trustees, ieportadv?nlage has been laken of the small companies, exemption from preparing a sl¢ate9ic report. On behalf f the Board O J Boutcher Secretary and Trustee Date. IS f Itsll
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THEIRWORLD Opinion We have audited the financial slalemenls of Theirworld for the year ended 30 November 2020 which comprise the Group Statement of Financial Aclivilies. the Group and Charity Balance Sheets. the Group Slalemenl of Cash Flows. and notes to the financial statements, including a summary of Signifal accounting policies. The financial reporting framewoTk that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounling Practice). In our opinion. the linancial statements-. give a true and fail view ol the state of the group's and of the parent charitable company's affairs as al 30 November 2020 and of the gTQUP'S and parent chaTilable company's nel movement in funds, including the income and expendilufe. for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance with International Standards on Auditing {UKI IISAS {UK)} and applicable law. Our responsibilities under those standards are further described in IheAudilor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the group in accordance with the ethical requirements that are relevant lo our audit of the financial stalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical Tesponsibililies in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropiiale to provide a basis for our opinion. Responsibilities of Trustees for the financial statements As explained more fully in the Trustees, responsibilities slalemenl set ovl on pages 7 and 8, the Trustees Iwho are also the Directors of the charitable Company for the purposes of company lawl ale responsible for the prepaialion of the financial statements and for being satisfied that they give a true and fair view. and for such internal conlfol as the Trustees determine is necessary to enable the preparation of financial statements that are free from material mis51alement. whether due to fraud or error. In preparing the financial slalements, the Trustees are responsible for assessing the group's and the pafent charitable companls ability lo continue as a going concern, disclosing. as applicable. matiers related to going conr and using the going concern basis of aeeounting unless the Trustees either intend to liquidate th8 group or the parent charitable Company oi lo cease operations, or have no realistic alternative bul lo do so. Audltor's responsibilities tor the audit of the flnanclal statoments Our objectives are lo obtain reasonable assurance about whether the financlal statements as a whole are free from material misstatement, whether due to fraud or error, and lo issve an audrtorfs report that includes our opinion. Reasonable assurance is a high level of assvrance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstatement when il exisis. Misstalements can ar6se from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls. A further descriplion of our fesponsibililies for the audit of the financial slalements is located on the Financial Reporting Council's websf(e at.. m.fr¢.org.uk1?UdiI0r$resp0n$1b1lI1les. This description forms part of our audilorfs report. Concluslons relating to going concern We have nothing to report in respect of the follcwjing mallers in relation to which the ISAS (UK) requiTe u$ lo report lo you where. Ihg Trustees, use of the going concern basi5 ofaccounling in the preparation of the financial statements is not appropriate., or the Trustees have not disclosed in the financial statements any identified material uncertainties thal may cast significant doubt about the group's or the parent charitable company's ability to continue lo adopt Ihe going concern basis ol accounting for a period of at least twelve months from the dale when the financial slalemenl8 are aulhorised for issue.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THEIRWORLD Other Information The Trustees are responsible for the other infoTmalion. The other infomialion comprises the informalion included in the Trustees. Annual Report. Our opinion on the financial statements does not cover the other information and. excepl lo the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In conn&tion with our audit of the linanci8181alements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial siatemenls or our knowledge obtained in the audit or olhetwise appears lo be materially mi5slaled. 11 we identify such material inconsistencies or apparent material misslalemenls, we are requifed to determine whether there is a material misslalemenl in the financial statements or a material misslalement 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 lo report that fact. We have nothing lo report in Ihis regard. Oplnlons on other matters prescrlbed by tho Companie5 Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Annual Report (which includes the Directors, report prepared for the purposes of company law} for the financial year for which the financial statemonls are prepared is consistent with the financial $talemenls.' and the Directors. report included within the Trustees, Annual Report have been prepared in accordance with applicable legal requirements. Matters on whlch we are rgqulred to report by excoptlon In the light of the knowledge and understanding of the group and the parent chaiilable company and its environment obtained in the course of the aLtdit, we have not idenltfied material misslalements in the Trustees, Annual Report (which inwrporales the strategic report and the Directors, report). We have nothing to report in respecl of the following mall8TS in relation lo which the Companies Act 2006 requires us lo report lo you if, in our opinion- adequate aceounling records have not been kept by the parent charitable company: or the parent charitable company financial slalemenls are not in agleemenl with the aCc(nting iecords and returns." or certain disclosures of Trustees. remuneration specified by law are not mad8-, or we have not teceived all the infoTmalion and explanations we require for our audit.. or the Trustees were not enlilled lo prepare the financial slalemenls in accordance with Ihe small companies, regime and lake advanlage ofthe small companies, exemptions in preparing the Trustees. report and ffom the requifement to Prepare a sliategic report. Use ofour report This report 15 made solely lo the ch8Titable company's members. as a body, in accordance with Chapter 3 of Part J6 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purp08e. To the fullest extent permiited by law. we do not a¢p1 or ossume responsibility lo anyone other than the charitable company and the charitable companls members as a body, for our audit WOTk. for this report, or for the opinions we have fomied. Steven Harper ISenioT Slatulory Audilorl For and on behalf of HaysmaGinlyfe, Statutory Auditors 10 Queen Street Place London EC4R 1AG Dale.. 13 August 2021 10
THEIRWORLD GROUP STATEMENT OF FINANCIAL ACTIVITIES Ilncorporatlng Income and expendlture account) FOR THE YEAR ENDED 30 NOVEMBER 2020 Note Unrestrlcted funds Restrlcted funds 2020 2019 Income from: Donations Olhef trading activities and fundraising events Inve8lmenls 457,131 5,452,065 5,909,196 7,930,027 29.129 34.689 2,594,810 2,623,939 34,689 1,853,675 22,487 Total Income 520,949 8,046,875 8,567,824 9,806,189 Expenditure on: Cost of ralsing funds Cost of raising donations Fundraising trading: cost of goods sold and other costs 45.222 45.222 59,199 1.358 1.358 Charltable actlvltles 111.313 5.711.289 5.822,602 6,828,373 Total expendlture 112.671 5,756,511 5,869,182 6,887,572 Net income for thg yoar 408.278 2.290,364 2,698.642 2.918.617 Transfers Exchange Ilosses}Igains arising on consolidation 17 63.659 {63.659} (44.8211 144.821) 36,177 Net movement In funds 471,937 2.181,884 2,653,821 2.954.794 Fund balanGes brought foard 833,409 4.769.922 5.603.331 2,648,537 Fund balan¢e$ carr19d forward 1,305,346 6,951.806 8,257.152 5,603,331 All the above results are derived from continuing aclivilies. There wefe no recognised gains or losses other than those slated above. The notes Set out on pages 14 to 26 form an integral part of Ihese financial slatemenls. A comparative Slalemenl of Financial Aclivil¢es 18 included at note 20. 11
THEIRWORLD GROUP AND CHARITY BALANCE SHEETS FOR THE YEAR ENDED 30 NOVEMBER 2020 Company number: 4422413 Note Group 2020 Group 2019 Charity 2020 Charlty 2019 FSxed assets Tangible fixed assets Investments 13 14 18.143 4.034 5.567 4.034 18,143 4,034 5,568 4,035 Current assets Debtors Cash at bank 205,128 8.267.717 939,171 5.637,196 162,859 6,974.256 728,663 4,874,284 8,472,845 6,576,367 7.137,115 5,602,947 Credltors: amounts falllng due wlthln one year 16 233.836 977,070 76,343 828,534 Net current assets 8,239.009 5,599,297 7,060.772 4,774.413 Total assets less current Ilabllltles 8.257.152 5.603,331 7.066,340 4,778.448 Accumulated funds Reslricled funds Unrestricted funds 17 6,951,806 1.305.346 4,769,922 833.409 6,448,380 617.960 4,328,113 450.335 8,257.152 5,603.331 7.066,340 4,778,448 A separate slalement of financial activities {SOFAI and income and expenditure account are not presented for the charity ilself following the exemption afforded by section 408 of the Companies Act 2006. The unconsolidaled surplus of Ihe parent charity was £2,287.89212019: surplus of £2,490.1151. The financial statements are prepaTed in accordance with part 15 of the Companies Act 2006 in regards lo Small companies. These financial statements have been prepared in accordance with the provisions appliGable lo enlilies subject to the small companies. regime. These financial slalements were approved by the boaid, signed on their behalf by and aulhorised for issue on DJBO her Secretary an Trustee The notes sel out on pages 14 to 26 fom an integral part of Ihese financlal statements. 12
THEIRWORLD GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 NOVEMBER 2020 2020 2019 Cash flows from op9rating actlvltles 2,659,361 3,012.364 Cash flows from Investing activitles Interest it)come Purchase of tangible fixed assels 34.689 {18.708) 22,487 (3,0801 Cash provided by (used In) Investing actlvitie5 15.981 19,407 Change In cash and cash oquivalents in the reporting perlod 2.675,342 3,031.771 Cash and cash equivalents al the beginning of the year 5.637.196 2,569,248 Change in cash and cash equivalents due to exchange rate movements (44,821) 36,177 TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THEYEAR 8,267,717 5.637,196 RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM OPERATING ACTIVITIES Ngt In¢omB for the year 2,698,642 2,918.617 Add back deprecialion charge Deduct interest income shown in investing activities Decrease l(inereasel in debtors Increase Ildecfease) in creditors 4.599 134,689} 734,043 (743,234) 4,440 {22,4871 {785,5801 897,374 Net cash generat9d by Opgrating activitie5 2,659,361 3,012,364 All cash and cash equivalents were held as cash al bank and in hand in both the curient and prior year. 13
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key 80urces of eslimalion uncertainty in the prepaialion of the financial statements are as follows. Basis of prnp8raIn The financial statements have been piepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charrties preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} (Second Edition. effective 1 January 2019) (Charities SORP {FRS 102}I, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. Theirworld meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost orlfansaclion value unless othernise slated in the relevant accounting policy note{s}. Prnparalion of accounts on a going concem bas The Trustees consider there are no material uncertainties about the ChaTily's ability lo continue as a goin9 concern. The Tfuslees have considered the impact of the Covtd-19 pandemic in making this assessment. The Trustees havo considered the impact on the budgets and cash flow forecasts prepared and, following this review, remain satisfied that the Charity remains a going concern for a period of at least one yearffom the date these accounts were approved. The review ofour financial position, reserves levels and future plans gives Trustees confidence the charity remains a going ¢on¢ern for the foreseeable fure. crilic818ccounling judgements and estimates In preparing these financial statements, management has made judgements, e81imale8 and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expendilure and the disclosures made in the financial slalements. Eslimales and judgements are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed lo be reasonable under Ihe circLFmstan¢es. GIDUP fin8nci81 stalom&nls These financial statements consolidate the results of the charity and its wholly owned subsidiaries, Theirworld Projects Limited and Global Business Coalition for Educalion. Inc. on a line by line ba818. Fund accounting Fun(6s held by the ¢h?fity are either.. Unrestricted general funds these are funds whiGh can be used in accordance wilh the Gharilable objects al the discretion of the Trustees. Reslricled funds- these are funds that can only be used for particular restricted purposes within the objects of the charity. Reslficlions arise when specified by the donor or when funds are raised for particular restricted purposos. 14
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020 1 Accountlng pollcles (conlinued) Income Income is recognised when there is enlillemenl lo the income. receipt is probable and the amount concerned can be accurately measured. Voluntary income artses as follow5- _ Donalions and grants are included in unrestricted income when these are receivable, except as follows.. When donors specify that donations or grants given to the charily must be used in future accounting periods, the income is deferred until those periods. When donors specrfy that donations or grants are for particular reslricled purposes, which do not amount lo pre-conditions regaiding entitlement. this income is included in inGome of reslricled funds when receivable. Membership fees received by Global Business Coalition for Education. Inc. afe recognised on an accruals basis. Trading income is recognised in th6 period in which the goods are delivered or the service provided. Donated selvices and facilities have been included in the accounts within voluntary income lo the extent that they are material in the context of the accounts. Donated services and facilities are included within the accounts al an assessment of the value lo the charity, which reflects the value that the charity ascribes lo the service or an appropriate alternative which would be purchased in the absence of the donated service. Lollery Income Is lotteries held by People's Poslcode Lottery IPPL). Theirworld Projects Limited has no ability lo aller the price of tickets, determine the prizes or reduce Ihe management fee. PPL is the acting principal for these draws. Nel proceeds received are recognised within lolleiy income in the Statement of Financial Aclivi(ies. The analysis of the Proceeds is detailed in notg Expendilure Expenditure is accounted for on an accruals basis. Grants payable are recognised as expenditure in the year in which a binding commitsnenl lo make payments is entered into. Support costs represent the cost of providing general management, human resources, financing and other serviees to the charity. They are sel out irb nola 5 and they have been allocated on Ihe basis of the level of grant and difect expenditure incurfed. Govemance cos18 comprise all costs involving public aecounlability of the chaTily and its compliance with regulation and good practice. Governance costs are shown a8 a component of support costs. Fixed asset inveslments Listed investments are slated at market value al the balance sheet dale. The SOFA includes the net gains and losses arising on fevalualions and disposals throughout the year. 15
THEIRWORLO NOTES TO THE FINANCIAL STATEMENTS l¢ontinued} FOR THE YEAR ENDED 30 NOVEMBER 2020 1 Accountlng pollcles (conlinu8d) Foreign currency translafion Foreign currency transactions are Ifanslaled into sterling al the rates ruling when they occurred. Foreign eurrency monetary assels and liabilities are translated al the rates ruling al the balonce Sheet date. Any differences aro taken to the statement of financial aclivilies. Results of overseas operations are translated 81 the average rates of exchange during the year and the balance sheet translated into sterling al the rale of exchange ruling al the balance sheet dale. Exchange differences which arise from the translation of the opening net assets and results of foreign subsidiary undertakings are taken to the statement of financial aclivilies. Financial in&lnim8nls The charity only has financial assets and linancial liabilities of a kind that qualify as basic financial inslrumenls. Basic linancial inslrumenls. including trade and other debtors and creditors are initially recognised al transaction value and subsequently measured at their settlement value. Debtott¥ Trade and other debtors are recognised at the settlement amount due after any trade di8count offered. Prepayments are valued al the amount prepaid nel of any trade di8counls due. Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highty liquid investments wlth a short maturity of three months or less from the date of aequisilion or opening of the deposit or similar account. Creditors andpmvisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the Iransfer of funds to a third party and Ihe amount due to sellle the oblig81ion can be measured or eslimaled reliably. Creditors and provisions are normally recognised at their selllement amount after allowing for any trade discounts due. 2 Charitablg company status TheIOr1d is a charitable company limited by guarantee and registered in England and Wales. Ils registered ad(Jress is Third Floor, The Broadgale Tower, 20 Primrose Street. London. EC2A 2RS. The charitable company does not have a share capital and Ihe liabilities of its members are limited to the guarantee of up lo a maximum of £1 each.
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS Icontlnuodl FOR THE YEAR ENDED 30 NOVEMBER 2020 Income Unrestrlcted funds Restricted funds 2020 2019 Donations Donated offe spa Donated Communications Lottery income (note 41 Fundraising events Trading Inve51menls 407,131 50.000 4,985,851 5,392,982 50,000 466.214 2.594.547 27,821 1,571 34.689 7,245,455 50.000 634,572 1.779,705 69,319 4,651 22.487 466,214 2,594,547 27.821 1,308 34.689 263 520.949 8.046,875 8,567.824 9,806,189 Prlor year: Unrestrlcted funds Restrlcted funds 2019 Donations Donated office space Donated communic81ions Lottery income {nole 4) Fundraising events Trading Investments 31.099 50.OOQ> 7,214,356 7.245.455 50,000 634,572 1.779,705 69,319 4.651 22,487 634.572 1.779,705 69.319 4,651 22.487 177,556 9.628.633 9,806.189 As shown above. a gift in kind has been recognised in respect of donated eommunications. This relates lo pro-bono communications, branding and media support for global education campaign activities. The corresponding expenditure is shown as part of direct charitable aclivilies. In line with the requirements of the SORP. the value ascfibed to the donated communications reflects the value which the Trustees would have been willing lo pay lo procure equivalent services. Lottery Incomè Theiorld Projects Limited received income from lotleri8s held by People's Poslcode Lollery. An analysis is provided below 2020 2019 People's Postcode Lottery lickel value People's Poslcode Lottery prize fund People's Poslcode Lottery management fee 8,107.958 {3,243.1831 (2,270,228) 5,561,579 {2.221,6311 (1,560,243) 2,594,547 1.779.705 17
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS Icontlnugd) FOR THE YEAR ENDED 30 NOVEMBER 2020 Cost of ralslng Incom8 Unrestrlcted Funds Restricted funds 2020 2019 Cost of raising donations Tiading subsidiary expenditure 45.222 45,222 1.358 59.199 1.358 1,358 45,222 46.580 59,199 ost of ralslng Income - 2019 Unrestrlcted Funds Restricted funds 2019 Cost of raising donations Trading subsidiary expenditure 6,286 52,913 59,199 6.286 52,913 59.199 Charltable actlvltles Dlrect charltable expendituro Support costs (note 81 Grant payments Total 2020 Total 2019 Children's health and welfare Global Education 410,796 3.284,823 410.796 389.322 111.313 5,411,806 6,439,051 2,015,670 2.015.670 3,695,619 111.313 5.822,602 6,828,373 Charitable activities {20191 Dlrect charitable expendlture Support osls (note 81 Grant paymonts Total 2019 Children's health and welfare Global Education 389,322 3.208,054 389,322 126.729 6.439.051 3.104,268 3,104.268 3.597,378 126,729 6,828,373 18
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS {continuedl FOR THE YEAR ENDED 30 NOVEMBER 2020 Grants payable 2020 Numbor 2020 2019 Number 2019 Payable to Inslitulions 10 2.015.670 15 3,104,268 The following grants lo Inslilulions were made.. 2020 2019 Rgstrlcted funds: Jennifer Brown Research Fund: The Univeisity of Edinburgh Development Trust 410,646 389,322 Global Educatlon.. Bognor Regis Youth FC CHIREHO Edinburgh Direcl Maya Foundation Refugee Trauma Initiative UNICEF United Lebanon Youth Project Women in Technology Uganda Youth Technology Foundalion 2,200 9,972 10.000 29,934 33,249 1.474,281 5,461 11,720 28,207 19,046 2.546,028 23.290 3,876 38,772 Total grants funded by restrlcted funds 2.015,670 3,020,334 Unrestrlcted funds: Action for Education Ashanti Development The Butterfly Tree Chance UK Girls Out Loud The Liam Fairhursl Foundation Reach Out Youth Clubs Youth and Womon for Opportunities Uganda Zoe Sarojini Education Trust 12.024 4,460 5.000 20,000 10.000 5.000 10,000 9,950 7.500 Total unre5tTiCted grants payable 83.934 Total grants payabl¢ 2,015.670 3,104,268 19
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE YEAR ENDED 30 NOVEMBER 2020 8 Support costs 2020 2019 Salaries and national insufanco Professional fees Office, adminislralion and sundry expenses Bank charges, card charges, and gainsllosses on foreign exchange Governance costs Facilities 49.493 41.417 11,136 1,509 227 22,440 50,ODO 4,405 18.9421 16,357 50,000 111,313 126.729 9 Governance Costs Governance costs include auditors. remuneration of £15,990 {2019.. £16.2601. Of thi5. £11.600 {2019'. £11,000} related lo the audit of the charity and £2.05012019'. £1,950) lo audit of the UK subsidiary. In addition, non-audit remuneration of £2.340 {2019.. £2.210) is included for the Group. 10 Trustges and relatsd party transactlons The Trustees neilheT received nor waived any emoluments during the year. During the course of Ihe year no expenses were reimbursed to Trustees {2019.' £nil- no Trusleel. Tolal donations received from Trustees amounted lo £403,31312019.. £455,324). No other related party transactions requiring disclosure under FRS 102 took place dufing the year {2019'. none). 11 staff costs 2020 2019 Wages and salaries Social security costs Pension costs Termination payments 1.381.562 176,248 21,748 1.152.462 112.062 16,054 10.000 1,579,558 1.290,578 The average number of employees during the year was 2912019- 231. 4 employees earned more than £60,000 during the year12019 - 31. These employees emolumenls fell into the bands: 2020 Number 2019 Number £60,000- £69.999 £70,000- £79.999 £80,000- £89,999 £100,000- £109,999 £110,000 - £119,999 The lolal remuneration of key management personnel of the group amounted lo £320,937 {2019.' £366,204). 20
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 30 NOVEMBER 2020 12 Taxatlon Th8 company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempl from laxalion in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the CoTporalion Tax Act 2010 or Seclion 256 of the Taxation of Chargeable Gains A¢1 1992. to the exlenl that such income or gains ar8 applied excluswely lo charitable purposes. Similar lax exemptions apply lo the US subsidiary charily. The UK subsidiary company makes qualifying donations of all taxable profts to Theirworld. No corporation tax liabilily on the subsidiary arise5 in the accounls. 13 Flxed assets Furniture Flxture and Fittlngs Office Equlpment Total Group Cost At 30 November 2019 Additions 135 23.876 18,708 24,011 18,708 Balance at 30 November 2020 135 42.584 42,719 Accumulated depreclatlon At 30 November 2019 Charge for the year 135 19,842 4.599 19.977 4,599 Balance at 30 November 2020 135 24,441 24,576 Net Book Value Carried forward al 30 November 2020 18.143 18.143 Brought forward al 1 December 2019 4.034 4,034 Charlty Cost AI 30 November 2019 Additions 135 23.876 4.470 24,011 4,470 Balance at 30 November 2020 135 28.346 28.481 Accumulated depreciatlon At 30 November 2019 Charge for the year 135 19,842 2.937 19,977 2,937 Balance al 30 November 2020 135 22.779 22,914 Net Book Value Carried forward at 30 November 2020 5,567 5.567 Bfoughl forward at 1 December 2019 4,034 4.034 21
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 30 NOVEMBER 2020 14 Flxed ass investments Shares In subsidiary undertaking Total Group Market value & historical cost at 30 November 2019 & 2020 Charity Market value & historical cost al 30 November 2019 & 2020 Subsldlary undertakings Thelrworld Projects Llmitgd The wholly-owned trading subsidiary. Theifworld Projects Limilod (company number.. 04326134). which is incorporated in the United Kingdom. Theirworld Projects Limiled's principal aclivili8s are all the commercial trading operalions carried on by TheirwoTld. The ¢harily owns the entire issued share ¢apilal of l ordinaryshare of£1 each. Thefull profil for Ihe year 18 donated lo Theirworld under deed ofcovenant. A summary of the trading results to 30 November 2020 is shown below. 2020 2019 Summary profit and loss account Turnover 2.595.905 1,793,386 Cost of sales Adminislralive expenses Other operating income {9251 1203,5941 203.623 {4.543} 1173,1911 174,714 Nel profit I (Ios81 before amounts donated lo Theirworld 2,595.009 1.790.366 The asset5 and Ilabllities of the subsldlary ware: Current assets 99,601 340,492 Credilois.. amounls falling due within one year 199,600) {50.1251 Total net assets 290.367 Aggregate Share capital and reserves 290.367 22
THEIRWQRLD NOTES TO THE FINANCIAL STATEMENTS Icontinuodl FOR THE YEAR ENDED 30 NOVEMBER 2020 14 Flxed asset inv8stments (Gonlinued) Global Buslnes5 Coalltlon for Educatlon, Inc The wholly-owned charitable subsidiary. the Global Business Coalition for Education. Inc. is a corporation which has exemption under section 501ICII31 of the Internal Revenue Code from Federal income lax in the US, and is incorporated under the laws of Delaware, USA. GBC-Educalion was created lo act as a business voice for making education a global priority. A summary ofthe operating re8utts to 30 November 2020 is 3hown below. 2020 2019 Summary proflt and loss account Income Expenditure 2.235,298 11,534,183) 1.243.362 11,105,227) Nel income retained by the subsidiary 701.115 138.135 The assets and liabillties of the Subsidiary werg: Fixed assets Current assets Creditors.. amounts falling due within one year 12,576 1,334.204 (155,996) 632,929 (98.409) Ag9regate reserves 1.190.784 534,520 15 Debtors 2020 Group 2019 Group 2020 Charity 2019 ChaTSty Amount due from subsidiary undertakings Other debtors Prepayments and accrued income 98.070 38,382 26.407 335,335 351,822 41,506 178.721 26,407 897,665 41,506 205,128 939.171 162.859 728.663 All amounts shown under debioTS fall due for payment within one year. 16 Credltors.. amounts falling due within one year 2020 Group 2019 Group 2020 Charity 2019 Charlty Trade creditors Giant commitments Other laxalion and social security cosls Other creditors Accruals and deferred incom8 AmoLsnts owed to subsidiary undertakings 144,937 264,247 646,115 24.683 165,838 368.190 24,272 35,260 3.397 50.242 35,091 3.397 37,793 42.025 37,278 232.956 233,836 977,070 76.343 828,534 23
THEIRWORLD NOTES TOTHE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 30 NOVEMBER 2020 17 Restricted funds 30 November 2020 December 2019 Income Expendltum Transffrrs Jennifer Brown Research Fund Global Education Global Business Coalition for Education 169.437 403.789 4.158.676 5,712,150 1410.7961 13,811,533} {63.6591 98,771 6,059,293 441.809 1,930.936 11,579.0031 793,742 4.769.922 8,046.875 15.801.332) (63,659) 6,951,806 Expendiluie in the above note includes exchange losses on Gonsolidalion 30 Novfrmber 2019 D8mb$r 2018 Income Expendlture Transfers Jennifer Brown Research Fund Global Education Global Business Coaliiion for Education 63.659 495,100 1,468.343 8,090,010 {389,322) {5,399,6771 169,437 4.158,676 181,420 1,043,523 1965,562) 182,428 441,809 1.713,422 9.628,633 {6,754,5611 182.428 4.769,922 The Jennifer Brown Research Fund was launched in February 2003 to support the Jennifer Bn)wn Research Laboratory al the New Royal Infirmary Edinburgh. The Laboratory's innovative work seeks lo advance our understanding of what causes sarly labour, how we can develop treatments lo prevent il and how we can beller help newborn babies in those first crucial hours and days after birth. The Theirworld Edinburgh Birth Cohort was launched in November 2016,. a 25-year study which includes social, educaliortsal and clinical information, a world first in investigating the long-leTm effects of pretemi birth. The Global Education fund was launched in April 2012 to help children unlock Iheir potential by focussing 11$ efforts on three causes.. giving every child quality preschool care. enforcing every child's right to go lo school and giving every young adult access to skills development. 24
THEIRWORLD NOTES TO THE FINANCIAL STATEMENTS Icontlnued} FOR THE YEAR ENDED 30 NOVEMBER 2020 17 Restrlctgd funds Icontlnuedl The Global Business Coalition for Education fund reflects resliicted giants received within the subsidiary undertaking, Global Business Coalition for Education, Inc. less amounls released during the year to unre8tricled funds. Transfers from reslficted lo unresli¢cted funds relle¢ts the balance of restricted funds as recorded in the IallY audited accounts al 30 November 2020 and 30 November 2019. 18 Analysls of net assets between funds Unrestrlcted funds Restrlcted funds Total funds Fund balances at 30 Novembèr 2020 aTO reprèsented by: Fixed assets Current assets Liabilities 18,143 1.521,039 {233.836} 18,143 8,472,845 1233,8361 6,951,806 Total nel assets 1.305.346 6.951.806 8.257,152 19 Analysis of net ay/68ts betsveen funds 2019 Unrostricted Funds Restrlcted funds Total funds Fund balances at 30 November 2019 are represented by: Fixed assets Current assets Liabilities 4,034 1,806,445 1977,0701 4.034 6.576,367 {977.0701 4,769,922 Total nel assets 833,409 4.769.922 5.603,331 25
THEIRWORLD NOTES TOTHE FINANCIAL STATEMENTS l¢ontlnuedl FOR THE YEAR ENDED 30 NOVEMBER 2020 20 Comparative Statement of Flnanclal Actlvltles Note Unrestricted funds Restrlcted funds 2019 Income from: Donations Other trading adivilies and fundraising events Investments 81.099 7,848,928 7,930.027 73.970 22.487 1.779,705 1.853.675 22,487 Total Income 177.556 9,628,633 9.806,189 Expenditure on: Cost of raising funds Cost ot raising donations Fundraising trading.. cost of gotxls sold and other costs 6,286 52.913 59,199 Charltable actlvlties 126.725 6.701,648 6,828,373 Total expendlture 133.011 6,754,561 6,887,572 Not Incomellexpendlturel 44.545 2.874,072 2,918,617 Transfers Exchange gainslllosses) arising on consolidation 17 1182.4281 182,428 36.177 36,177 Not movement In fund8 1101,706) 3.056.500 2.954,794 Fund balances brought fornard 935.115 1,713.422 2,648,537 Fund balances carried loard 833,409 4,769,922 5,603.331 26