THEIRWORLD
(a charitable company limited by guarantee)
REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
Company Number 4422413 Charity Number 1092312
THEIRWORLD
REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
| CONTENTS | Page |
|---|---|
| Legal and Administrative details | 1 |
| Trustees’ Report | 2 |
| Auditor’s Report | 10 |
| Group Statement of Financial Activities | 13 |
| Group and Charity Balance Sheets | 14 |
| Group Statement of Cash Flows | 15 |
| Notes to the financial statements | 16 |
THEIRWORLD
LEGAL AND ADMINISTRATIVE DETAILS
FOR THE PERIOD ENDED 31 DECEMBER 2021
| Trustees | S Brown |
|---|---|
| D J Boutcher MBE | |
| L Doughty | |
| B Hewitt (resigned 31 December 2021) | |
| Dr. I Laing | |
| Prof. N Modi | |
| T Sowa CBE (appointed 30 May 2021) | |
| A Weir | |
| Secretary and registered address | D. J. Boutcher, Third Floor, The Broadgate Tower, 20 |
| Primrose Street, London, EC2A 2RS | |
| Company number: | 4422413 |
| Charity number: | 1092312 |
| Auditors | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London EC4R 1AG | |
| Bankers | Lloyds Bank |
| City Office Branch | |
| P O Box 1000, BX1 1LT | |
| Solicitors | Farrer & Co |
| 66 Lincoln’s Inn Fields | |
| London | |
| WC2A 3LH |
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
The Trustees have pleasure in presenting their report and audited financial statements of the Charity and group for the 13-month period ended 31 December 2021. The financial statements have been prepared in accordance with the accounting polices set out on pages 16 to 18 and comply with the current statutory requirements, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Structure, governance and management
The company was incorporated on 23 April 2002. It is registered with the Charity Commission under the Charities Act 2011 and received its charitable status on 31 May 2002.
Management of the Charity is by a Board of Directors (“Trustees”). The Trustees, who have served during the period and since the period end, are set out in this report.
The Trustees are appointed by invitation on to the Board by existing Trustees. On appointment, an induction is given by an existing Trustee explaining the grant making processes and procedures as well as an overview of the administrative procedures employed by the Charity. In addition all new Trustees are given a copy of the Code of Conduct for a Trustee, explaining in detail their role and responsibilities.
Trustees
The following were on the Board of Trustees during the period ended 31 December 2021 and to the date of this report unless as otherwise stated:
S Brown D J Boutcher MBE L Doughty B Hewitt (resigned 31 December 2021) Dr I Laing Prof. N Modi T Sowa CBE (appointed 30 May 2021) A Weir
Objectives and activities
The governing document of the Charity is its Memorandum and Articles of Association dated 22 April 2002. This sets out the objects of the charity which are principally the relief of poor or infirm children and young people and the advancement of the education of children and young people. The Trustees continue to support fundraising for an awareness of some of the most exciting and innovative charity ventures for children.
Grant making policy
During the period ended 31 December 2021 the Trustees adopted a grants policy pursuant to which the Charity will prioritise projects relating to the health, education and welfare of children and young people.
Activities and performance for the public benefit
The Trustees confirm 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 its focus on the improvement for children and young people in early years, safe schools, and youth skills as it passed the midpoint of the current strategic plan (2020-22). Alongside this commitment, Theirworld also adapted its activities to accommodate the impact of the Covid-19 pandemic to protect staff and to enable project work and campaigns to continue successfully.
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
The Jennifer Brown Research Laboratory (JBRL) continues to thrive under the leadership of its Scientific Director, Professor James Boardman at the University of Edinburgh’s MRC Centre for Reproductive Health with the excellent support of its expert Advisory Board and the research and administrative staff based in the Queen’s Medical Research Institute. The Stress Response Systems in Mothers and Infants project completed last year was published in e-Life magazine. The flagship project, the Theirworld Edinburgh Birth Cohort (TEBC) study, which began recruitment in 2016 now has over 400 families taking part, with earlier recruits included in a follow-up programme. This highly contextual longitudinal study looks at childhood with a specific focus on the mechanisms of perinatal diseases, and the biological and environmental consequences of premature birth. The impact of the pandemic was mitigated by moving much of the research online, and participant engagement now includes newsletter production, a Facebook group for TEBC participants and an online survey of parents of preterm children aged 0-12 years. The ground-breaking work of the TEBC continues to yield vital and encouraging information and in December 2021, in recognition of the substantial and enduring commitment to the health and education of women and young people at home and abroad, the University of Edinburgh awarded their highest honour, a Degree of Doctor honoris causa, to Theirworld Chair, Sarah Brown. The Doughty Family Foundation and the Office of Gordon and Sarah Brown have continued to contribute substantially to the JBRL.
Theirworld’s advocacy and campaigns agenda during 2021 focused on the ‘Unlock Big Change’ policy agenda to sit squarely behind the Charity’s commitment to the best start in life, a safe place to learn, and skills for the future for children and their families. The year had a focus on education financing, investment in early years, education in emergencies, and Covid pandemic recovery and resilience . Theirworld continues to receive considerable pro-bono support from the Omnicom Group’s companies to provide support for creative and promotional services that underpin the shared commitment to the UN Sustainable Development Goal 4 (to support education for all).
With the support of the Conrad N. Hilton Foundation, Theirworld continued its work on a campaign in Kenya to secure 10% of education budgets be directed to early years. Early years remains an important part of Theirworld’s work with the connecting thread running from JBRL’s research through to global advocacy for early learning investment to supporting projects in local partnerships.
During 2021, we launched our early childhood education scorecard report with author Dr Pauline Rose, Director of the Research for Equitable Access and Learning (REAL) Centre at the University of Cambridge. We also issued a policy briefing on Maysa Jalbout’s research examining childhood education teacher training and professional developments in refugee contexts.
Theirworld continued to develop new projects to help thousands of children with improved distance video learning materials and sharing educational home activities for children with learning differences and special needs. The support for SKILD’s video projects for early learners reaches huge audiences and unlocked greater potential for this organisation in Lebanon.
Children and young people are at the heart of the drive to end the global education crisis, and Theirworld places its growing cohort of Global Youth Ambassadors at the heart of what it both teaches and learns. By the year end, the Charity had 1,269 active members participating in the two-year programme, and a growing alumni network. The Theirworld Global Youth Ambassadors learn about the global education crisis, learn how to better lead campaign activities in their communities and participate in events to raise the profile of global education finance and early years campaigns.
Last year Theirworld committed funding to nine new Covid-response learning projects across Lebanon, Turkey, Greece, Nigeria, Kenya, Uganda and Tanzania for vulnerable out of school learners. As the pandemic continued, we renewed our support in 2021 for these projects and continue to monitor their outcomes as there is much to learn about remote learning from our partners.
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
The Trustees of Theirworld would like to thank the continued support of the players of the Nationale Postcode Loterij (NPL), who are regular core supporters of the Charity, but who for a second year additionally contributed a grant of €1,350,000 to bridge the emergency funding required to provide education to approximately 26,000 refugee children in partnership with Education Cannot Wait and UNICEF at a learning centre on the island of Lesvos, Greece. Following the terrible 2020 fire that destroyed the Moria refugee camp in Lesvos, lives for the children there were further complicated by lack of available funding for refugee education provision for those arriving on the Greek Islands. Theirworld has pursued a lengthy campaign to unlock the funding to support the education centres there, and the Dutch lottery players came to the rescue for a second year to provide temporary education in the gap. We are thankful for this, and that since then a solution has been reached for European Commission funding via UNICEF Greece. The All Children in Education (ACE) project in partnership with UNICEF Greece, launched in September 2021 is now setting up 49 Homework and Creative Activity centres to build school readiness and facilitate enrolment into formal education for refugee children (4-17 years old). Theirworld directly supports up to 16 of the centres across Greece to provide linguistic literacy (Greek and English), scientific subjects, psychosocial support, and Child Rights Education/ citizenship activities.
Theirworld completed the first round of the joint initiative with the Edinburgh Business School at Heriot Watt University for 20 full scholarships for refugees and Lebanese nationals living in Lebanon to study for a Master of Business Administration degree. Above average exam results were achieved, and strong completion levels overall for a very strong outcome.
Our annual International Women’s Day event in March 2021 moved to an online format attended by a larger than usual global audience. We honoured former Director of the African Women’s Development Fund Theo Sowa for her work as an international development leader and global advocate for women’s equality. The award was preceded by introductory remarks by Graça Machel and Melinda Gates to recognise Theo’s work. Other speakers at the IWD21 event included Zarlasht Halaimzai of Refugee Trauma Initiative (now known as Amna), Hiba Al Jamal of early years programme, SKILD and Maysa Jalbout, a senior adviser to Theirworld, Massachusetts Institute of Technology and The Brookings Institution.
During the course of the year the Global Business Coalition for Education and Theirworld ran The Key Conversation series to look at how education unlocks progress across all the UN Sustainable Development goals covering skills and youth employment, climate action (on Earth Day), health equity and refugees. The Global Business Coalition for Education also published its report on Small and Medium Enterprises (SME) looking at how they are supporting education around the world. Theirworld business supporters Astley Clarke and Valvona & Crolla both contributed to the SME report.
In April 2021 Theirworld published its education financing playbook at the OneHundred Agency’s Forging Forward Summit. This was followed up with a rolling programme of presentations and briefings to policy makers and change leaders interested to know more about global education financing and proved a useful exercise to share the work of Theirworld and other organisations and institutions who share such detailed data and impact figures that can be made available in an accessible and useful way.
Theirworld developed a new schools pack with a curriculum for teachers to use in the classroom to promote understanding about global education and its links to other issues, including refugees, climate change and public health. With an increased investment in digital this year for our public facing audiences, Theirworld has featured people from the world of global education, starting with an feature on filmmaker, storyteller and Theirworld Ambassador, Steve Nguyen.
Trustees have approved £67,115 in Small Grants in the year to eight organisations: Amala, The Butterfly Tree, Happy and Healthy Trust, Institute of Rural Management (IRM), Literacy Pirates, London Reading Centre, Nyasemi Self Help Group and World Bicycle Relief. Reports from Small Grant recipients were circulated to supporters and included updates on the progress of funding for a summer school for refugee youths in rural Kalavryta, Greece, funding for vulnerable girls in Livingstone, Zambia to take a diploma course which leads to employment, and providing free breakfast to vulnerable children in the UK during Covid-19.
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
The Trustees of Theirworld were pleased to note that in the second year of Covid restrictions that both Theirworld and the Global Business Coalition for Education were able to support all staff in full employment with no external subsidies or government support, and all projects were able to continue and thrive with suitable adaptions for everyone’s health and wellbeing protection during the continuing Covid pandemic . The remote working policies instituted at Theirworld in March 2020 were able to continue with the reintroduction of a partial return to the office environment in October 2021 when this was deemed safe and allowed for staff to meet face to face on a part-time basis. Staff continue to have access to all equipment needed for when home working with regular Global Team meetings for general updates and deep dive presentations on specific project areas and interactive Q&A sessions. We worked with wellbeing expert Stacie Graham to provide sessions during the period covering Mindfulness, Belonging and Equity on which staff provided positive feedback.
The Global Business Coalition for Education (GBC-Education), the movement of businesses committed to ending the global education crisis, is a US registered corporation with exemption from Federal Income Tax under section 501(C)(3) of the Internal Revenue Code. Theirworld is the founding and sole member. In the decade since the formation of GBC-Education, it has continued to engage global companies and SMEs, build its Skills Friendly Cities youth programme, conduct research and policy briefings, connect companies to opportunities to support schools around the world, and generate tools and resources to improve the business community’s contribution to education. GBC-Education also published its expert report that has taken two years to research on inclusive education and employment pathways, with Dan Boyer, Vibhu Sharma and a team at Includovate.
The Trustees would like to thank fellow Trustee and Chair, Sarah Brown for her continued support and leadership of Theirworld, as well as Gil McNeil CBE, Director, Konrad Caulkett, Grants and Finance Director, Justin van Fleet, President, Mike Burnett, Digital Director and all the team for their hard work throughout the period, for which the Trustees are extremely grateful.
The Trustees would like to thank the members of the Theirworld Advisory Board for their support and express their gratitude to the Ambassadors who contribute their time and support to the Charity’s campaigns and advocacy work to ensure that it gains greater prominence. Matt Lucas joined as a Theirworld Ambassador in December 2021 and we look forward to his continuing support on our Early Years campaign where he has already been generous with his time. Particular gratitude is shown to Louise Court, Mark Lucas and Jim Prior for their past service on the Advisory Board as they stepped down during this year, and the Trustees have since welcomed Imad Ghandhour and Shannon de Boissard as new members of the Advisory Board. We also thank Stuart Goldsmith for hosting this year’s Reed Smith Quiz Night which raises funds for the Charity.
The Trustees would also like to thank Dr Lisa Belzberg, David Boutcher MBE, Sarah Brown, Edward J Estrada and Joyce Malombe for their service on the GBC-Education Executive Board. They also extend their gratitude to all the members of the Advisory Board for their guidance and engagement, and highlight particular thanks this year to Alex Cho, President of Personal Systems, HP, and Kwasi Mitchell, Principal, Diversity & Inclusion Lead, Deloitte for their engagement with new projects during the Covid pandemic.
The Trustees would also like to thank the following organisations who have generously supported the work of Theirworld, Astley Clarke, Dubai Cares, Conrad N. Hilton Foundation, the Nationale Postcode Loterij, The Office of Gordon and Sarah Brown, Omnicom Group (BBDO, Hall & Partners, Porter Novelli, Mother Tongue, OneHundred Agency and RapCode), Players of the People’s Postcode Lottery, The Prism Foundation, Reed Smith, SAP UK, and Valvona & Crolla, and those organisations who have supported the work of GBC-Education, Aliko Dangote Foundation, BHP Foundation, Conrad N. Hilton Foundation, Dell, Deloitte, Dubai Cares, HP Inc., Lexis Nexis, SAP.
Plans for the Future
We will continue to work to end the global education crisis and unleash the potential of the next generation. Our mission is to ensure that every child has the best start in life, a safe place to learn and skills for the future. As we complete the final stages of the Theirworld strategic plan, we are preparing a new strategic development plan to start in 2023 that will enable us to work towards our objectives.
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
As we celebrate the Charity’s 20th anniversary during the whole of 2022 this enables us to highlight our significant achievements to date, and to set our sights on what we can next achieve as an established force for improved child development and access to global quality education. The strategic objectives that will see us through 2022 remain to:
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Set agendas - Our policy and research will bring forward the most relevant evidence to expose gaps in delivering opportunity and set the bar higher for governments and the international community to deliver results for the next generation.
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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.
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Campaign and innovate – We will mobilise our networks to take on the next barrier standing in the way of opportunity for young people. We will also deliver on-the- ground projects to solve challenges facing the most marginalised young people – including newborns, refugees, children with disabilities and girls – and collaborate with partners to expand what works.
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Deliver Impact - We will deliver transformative results which transcend the work of any single organisation to unleash sustainable and scalable change.
As we live with the ongoing consequences of the Covid-19 pandemic, climate change, emerging conflicts and global issues around inequality, we will review our campaign goals and build our youth movement to enable their change-making potential. We will support local partnerships with grants, learning materials, mentorship and self-learning, and shared collaborations. We will continue to focus on taking down barriers to learning and child development including gender, prejudice, physical ability and learning differences, wellbeing and mental health, and trauma support.
We will focus on global advocacy and campaign on the creation of the proposed International Finance Facility for Education as we approach the United Nation’s General Assembly and other key staging posts for international donor commitments. We will also continue to build the case for greater global investment into Early Years. We will continue to work in Kenya to progress models for change on pre-primary education.
Our small grants programme will continue with applications invited via our website. We continue to invest in innovation projects with local partners including Nigeria, Uganda, Kenya, Tanzania, Lebanon, and Greece. Our new Innovation Awards with an expert panel of judges will help us find new innovative education and early learning projects where we will offer larger grants and mentorship.
We will nurture and support the Theirworld Global Youth Ambassadors to invest in their voices for future opportunities to unlock big change.
We continue to engage with the Global Business Coalition for Education with its member companies, its response to education in emergencies including the Ukrainian conflict, its skills-friendly cities US programme and its ongoing programme for increasing corporate impact in global education.
We will continue to invest in our newest programmes to develop the Education Finance Playbook which provides summary guidance to policy makers and peer organisations, as well as our online resource, The Key, to highlight the relevant and impact of education investment to all 17 of the United Nations’ Sustainable Development Goals. We will also build additional sets of Schools’ resources to provide useful project, essay and dissertation support materials that match secondary/high school requirements in UK and international schools.
We will support a second round of 20 full scholarships with the Edinburgh Business School at Heriot Watt University for refugees and Lebanese nationals living in Lebanon to study for a Master of Business Administration degree.
Having launched our new website this year, we will continue to add digital resources, communications and fundraising materials to our site, and our new Global Youth Ambassador digital hub will also benefit from future investment.
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
As part of Theirworld’s internal development we will invest significantly into our own database following data protection protocols, and our finance systems. Safeguarding remains an important priority wherever and however we work.
We will continue to support and protect the Charity team as they work in hybrid formats from both home and office and provide relevant training and guidance to adapt to new working practices with the return to offices.We have not forgotten our commitment to explore what more we can do in addition to our standard policies on non-discrimination and inclusion and will strive to always do better to support and act on the antiracism agenda. We remain firmly committed to our policy of not using unpaid interns to ensure equal access to opportunity for everyone, not just people who can afford to work for free.
We will continue to focus on expanding the sources and scale of our grant funding and donor support, to ensure we remain in a strong financial position, which will enable us to consider new programmes and to respond to new circumstances relevant to our mission.
Theirworld also continues to value the strong partnerships it has built over many years. We continue to benefit from legal support and office space in London and New York and other pro-bono services from the global law firm Reed Smith. Theirworld‘s agreement with the Omnicom Group enables us to call on its expertise and worldwide reach for creative and communications support for our campaign and advocacy work. We are grateful for the support from the Players of the People’s Postcode Lottery in Great Britain, and the Nationale Postcode Loterij in the Netherlands and to the support and friendship from the teams at each organisation.
Our partnerships with the Valvona & Crolla team at Scotland's oldest Delicatessen and family wine business has continued to flourish with commitments for the Charity’s 20[th] anniversary in 2022, and luxury jewellery company, Astley Clarke who have designed a new range for Theirworld to celebrate our first two decades.
We greatly value our internal team and external supporters as we combine to create the opportunity for Theirworld to focus on ending the global education crisis and to unlock big change for babies, children, young people, and their families.
Financial review
Total income for the 13-month period was £8,337,233 (2020: £8,567,824) with total expenditure of £6,231,705 (2020: £5,869,182). Funds held increased by £2,188,169 (2020: £2,653,821).
Unrestricted funds held are £3,852,361 (2020: £1,305,346) with restricted funds at £6,468,839 (2020: £6,951,806) - this figure includes £270,357 (2020: £98,771) for the Jennifer Brown Research Laboratory, £6,106,233 (2020: £6,059,293) for the Global Education campaign, and £92,249 (2020: £793,742) for the Global Business Coalition for Education. Group unrestricted funds held are £3,852,361 (2020: £1,305,346) – this figure includes £1,402,584 (2020: £617,960) for the charity, £nil (2020: £nil) for Theirworld Projects, and £2,449,777 (2020: £687,386) for the Global Business Coalition for Education.
Theirworld is reliant on voluntary donations received and receipts from fundraising events, as well as grants made by Trusts and Foundations. These funds are held in bank deposit accounts so as to obtain the best available rates of interest and mitigate investment risk.
The fundraising events during the period generated funds of £64,475 (2020: £27,821), which have been treated as unrestricted income in the financial statements. The Trustees are not aware of any restrictions placed on this income but are mindful that certain individual donors may have considered that their donation would be used to support the Jennifer Brown Research Laboratory or Global Education projects. As stated in the Reserves Policy note below, in considering future grants to the University of Edinburgh Development Trust for the Jennifer Brown Research Laboratory or for Global Education, the Trustees will have access to the excess unrestricted funds.
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THEIRWORLD
TRUSTEES’ REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
Reserves policy
The Trustees aim to keep reserves to a minimum, in excess of ongoing grant commitments, in order to ensure that most of the income generated is distributed. The Charity operates on minimal overheads with some
services and facilities provided free of charge. A reserve will be maintained to cover unforeseen costs. Total reserves at 31 December 2021 amounted to £10,321,200 (2020: £8,257,152) of which £6,468,839 (2020: £6,951,806) are restricted and £18,430 (2020: £18,143) are held in fixed assets. This leaves unrestricted general funds, being unrestricted funds less unrestricted fixed assets, of £3,833,931 (2020: £1,287,203). The Trustees continue to review the level of free reserves held and, will look to hold a balance to maintain core cash flow for a period of nine months. Any unrestricted reserves 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 Education and project work.
Fundraising
The Trustees have regularly reviewed the requirements of the Fundraising Regulator, and the decision was taken by the Trustees to register the charity with the Fundraising Regulator in 2019. No complaints have been received in respect of the Charity’s fundraising activity. The Charity does not utilise professional fundraisers or commercial participators, though the Trustees note that Theirworld Projects Limited was the recipient of lottery funds run by the People’s Postcode Lottery until December 2020.
Pay policy
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 operating the Charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the period. Details of Trustees’ expenses, which are nil, and related party transactions are disclosed in note 10 to the accounts.
The pay of the Directors and all staff are reviewed annually and normally increased in accordance with average earnings to reflect a cost-of-living adjustment. In view of the nature of the charity, the charity benchmark against pay levels in similar charities. The remuneration bench-mark is the mid-point of the range paid for similar roles in similar charities and sizes.
Risk management
A risk assessment has previously been undertaken and the principal risks associated with the Charity’s activities have been identified and assessed. The Trustees are satisfied that adequate reporting structures and procedures are in place to manage the risks associated with the Charity’s activities. An assessment of these risks is undertaken each year. The principal risks and uncertainties identified are ongoing fundraising challenges and effective monitoring and evaluation of local partners who work on overseas projects.
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and estimates that are reasonable and prudent;
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THEIRWORLD TRUSTEES. REPORT FOR THE PERIOD ENDED 31 DECEMBER 21121 State whether applicable UK AccourFtmg Standards have been followed, sublt to any material departures disclosed and eXplned in the finanaal stements,' and prepare the financial statements on the goiNJ concem bas unless it is inapproprtate to presume that the charitable group wll continue in business. The Tnjstees are responsib for kwng prq)w &counting rd$ that di5¢the wih reasonable accuracy at any lime the financial positw of the charitab group and enable them to ensure that the financial statements comply with the Companies Act 26. They are also responsible for safeguarding the assets of the charitsb company. and the group. and henceforta(ing reasonable steps forthe prevention and detection of fraud and other IrUlar1tie$. Auditors All of the current Trustees have taken all steps that they ought to have taken to me theMse8S aware of any inforniation needed by the Chartys aLKlttors ts the pueS of their audi( and to establish that the audtiors are aware of th* information. The Trustees are not aware of any relevant information of which the auditors are unaware. Haysm&intyre LLP have exwessed theirwillingness to contuiue in offts and a resolution to r&appoint them will be proposed at the annual gene1 meet"ng. In preparing thisTrustees' repcKI advantage has beentsken of the small c(xnpanies' exemption from preparing a strategic report. On behalF of the Board D J Boutcher Secretary and Trustee Date.. I SeptembeT 2022
INDEPENDENT AUDITOR’S REPORT
TO THE TRUSTEES OF THEIRWORLD
Opinion
We have audited the financial statements of Theirworld for the period ended 31 December 2021 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheets, the Group Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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In our opinion, the financial statements:
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give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2021 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the period then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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.
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's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in 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 in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Annual Report (which includes the Directors’ report prepared for the purposes of company law) for the financial period for which the financial statements are prepared is consistent with the financial statements; and
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the Directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
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INDEPENDENT AUDITOR’S REPORT
TO THE TRUSTEES OF THEIRWORLD
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the Directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the parent charitable company; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Trustees’ report and from the requirement to prepare a strategic report.
Responsibilities of Trustees for the financial statements
As explained more fully in the Trustees’ responsibilities statement set out on pages 8 and 9, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent charitable company’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 or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
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 auditor’s 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.
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:
Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements of Company and Charity law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, Companies Act 2006 and payroll taxes.
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 journal entries and management bias in certain accounting estimates and judgements, such as the income recognition policy applied to grant income. Audit procedures performed by the engagement team included:
-
Inspecting correspondence with regulators and tax authorities;
-
Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
-
Reviewing minutes of all Trustees’ meetings during the period and since the period-end;
-
Evaluating management’s controls designed to prevent and detect irregularities;
11
INDEPENDENT AUDITOR’S REPORT
TO THE TRUSTEES OF THEIRWORLD
-
Identifying and testing journals, in particular journal entries posted around the period-end; and
-
Challenging assumptions and judgements made by management in their critical accounting estimates, including review of how grant income has been recognised at the period-end.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Steven Harper (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre, Statutory Auditors London EC4R 1AG Date: 2 September 2022
12
THEIRWORLD
GROUP STATEMENT OF FINANCIAL ACTIVITIES (Incorporating income and expenditure account)
FOR THE PERIOD ENDED 31 DECEMBER 2021
| Note | Period ended | Year ended | |||
|---|---|---|---|---|---|
| Unrestricted | Restricted | 31 December | 30 November | ||
| funds | funds | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Income from: | |||||
| Donations | 3 | 365,456 | 7,039,109 | 7,404,565 | 5,909,196 |
| Other trading activities and | |||||
| fundraising events | 3 | 220,741 | 693,339 | 914,080 | 2,623,939 |
| Investments | 3 | 13,866 | - | 13,866 | 34,689 |
| --------------------- | ---------------------- | ---------------------- | ---------------------- | ||
| Total income | 600,063 | 7,732,448 | 8,332,511 | 8,567,824 | |
| ---------------------- | ---------------------- | ---------------------- | ---------------------- | ||
| Expenditure on: | |||||
| Cost of raising funds | |||||
| Cost of raising donations | 5 | 699 | 28,118 | 28,817 | 45,222 |
| Fundraising trading: cost of | |||||
| goods sold and other costs | 5 | - | - | - | 1,358 |
| Charitable activities | 6 | 77,971 | 6,124,917 | 6,202,888 | 5,822,602 |
| ---------------------- | ---------------------- | ---------------------- | ---------------------- | ||
| Total expenditure | 78,670 | 6,153,035 | 6,231,705 | 5,869,182 | |
| ---------------------- | ---------------------- | ---------------------- | ---------------------- | ||
| Net income for the period | 521,393 | 1,579,413 | 2,100,806 | 2,698,642 | |
| Transfers | 17 | 2,025,622 | (2,025,622) | - | - |
| Exchange (losses)/gains arising | |||||
| on consolidation | - | (36,758) | (36,758) | (44,821) | |
| ---------------------- | ---------------------- | ---------------------- | ---------------------- | ||
| Net movement in funds | 2,547,015 | (482,967) | 2,064,048 | 2,653,821 | |
| Fund balances brought forward | 1,305,346 | 6,951,806 | 8,257,152 | 5,603,331 | |
| --------------------- | ---------------------- | ---------------------- | ---------------------- | ||
| Fund balances carried forward | 3,852,361 | 6,468,839 | 10,321,200 | 8,257,152 | |
| ========== | =========== | =========== | =========== |
All the above results are derived from continuing activities. There were no recognised gains or losses other than those stated above. The notes set out on pages 16 to 28 form an integral part of these financial statements. A comparative Statement of Financial Activities is included at note 20.
13
THEIRWORLD GROUP AND CHARrrY BALANCE SHEETS AT 31 DECEMBER 2021 Company number. 4422413 Note Group 31 Group Charity 31 December 2021 Charity 30 November 2020 20 2020 Fixed assets Tangible fixed assets Investments 13 14 18.430 18.143 9.201 5,567 18.430 18.143 9,202 5,568 Current assets Debtors Cash at bank 15 205.2¥2 10,628,460 205.128 8.267.717 164,726 8.590,309 162,859 6.974,256 10.833.752 8.472.845 8.755.035 7.137.115 Creditors: amounts falling du& within one year 16 530.982 233.836 449.908 76.343 Net current assets 10.302.770 8,239,009 8.305,127 7,tEO,7T2 Total assets less current liabli ities 10.321.2 8.257.152 8.314.329 7,066,340 Accumulated funds Restricted funds UnrestrTCted f¥JrMJs 17 6,468.839 3,852.361 6.951.6 1.305.346 6.911,745 1,402,584 6,448,380 617,0 10.321.2rJ) 8.257.152 8,314.329 7,(E6,340 A separate statement of finarKial acbvrtEs {SOFAI and income and expenditure account are not presented for the chanty Ttseff following the exemption afforded by seclv)n 408 of the Companyas Act 2006. The unconsolidated surplus of the parent chartiy was £1,247,98912020: sutplus of £2,287.8921. The financial statemerts are prepared in accordan with part 15 of the Companies Ad 2 in regards to small companies. These financial statements have been prepared in cordance wrth the provisions appl¢cable to enlitses $jeCt to the small eryies, regime. These financial statements aFproved by the board, signed on their behalf by and aulhorised for issue on I Septen]ber 2022 D J Bcxjtcher Secretsry and Tntstee The notes sd out on pa9es 16 to 28 fM a) ii*egrnl part ofthese finan¢BI statements. 14
THEIRWORLD
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | 2,391,144 | 2,659,361 |
| Cash flows from investing activities | ||
| Interest income | 13,866 | 34,689 |
| Purchase of tangible fixed assets | (7,509) | (18,708) |
| ---------------------- | ---------------------- | |
| Cash provided by (used in) investing activities | 6,357 | 15,981 |
| ---------------------- | ---------------------- | |
| Change in cash and cash equivalents in the reporting period | 2,397,501 | 2,675,342 |
| Cash and cash equivalents at the beginning of the period | 8,267,717 | 5,637,196 |
| Change in cash and cash equivalents due to exchange rate | ||
| movements | (36,758) | (44,821) |
| ---------------------- | ---------------------- | |
| TOTAL CASH AND CASH EQUIVALENTS AT THE END OF | ||
| THE PERIOD | 10,628,460 | 8,267,717 |
| ========== | ========== | |
| RECONCILIATION OF NET INCOME TO NET CASH | ||
| INFLOW FROM OPERATING ACTIVITIES | ||
| Net income for the period | 2,100,806 | 2,698,642 |
| Add back depreciation charge | 7,222 | 4,599 |
| Deduct interest income shown in investing activities | (13,866) | (34,689) |
| Decrease /(increase) in debtors | (164) | 734,043 |
| Increase /(decrease) in creditors | 297,146 | (743,234) |
| ---------------------- | ---------------------- | |
| Net cash generated by operating activities | 2,391,144 | 2,659,361 |
| ========== | ========== |
All cash and cash equivalents were held as cash at bank and in hand in both the current and prior period.
15
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021
1. ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared for a 13-month period to 31 December 2021, with comparatives for the year to 30 November 2020.
Theirworld meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
Preparation of accounts on a going concern basis
The Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The Trustees have considered the impact of the Covid-19 pandemic in making this assessment. The Trustees have 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 year from the date these accounts were approved. The review of our financial position, reserves levels and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future.
Critical accounting judgements and estimates
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Group financial statements
These financial statements consolidate the results of the charity and its wholly owned subsidiaries, Theirworld Projects Limited and Global Business Coalition for Education, Inc, on a line by line basis.
Fund accounting
Funds held by the charity are either:
-
Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.
-
Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Income
Income is recognised when there is entitlement to the income, receipt is probable and the amount concerned can be accurately measured.
16
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
1 Accounting policies (continued)
Voluntary income arises as follows: -
-
Donations and grants are included in unrestricted income when these are receivable, except as follows:
-
When donors specify that donations or grants given to the charity must be used in future accounting periods, the income is deferred until those periods.
-
When donors specify that donations or grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in income of restricted funds when receivable.
-
Membership fees received by Global Business Coalition for Education, Inc. are recognised on an accruals basis.
-
Trading income is recognised in the period in which the goods are delivered or the service provided.
-
Donated services and facilities have been included in the accounts within voluntary income to the extent that they are material in the context of the accounts. Donated services and facilities are included within the accounts at an assessment of the value to the charity, which reflects the value that the charity ascribes to the service or an appropriate alternative which would be purchased in the absence of the donated service.
-
Lottery income is lotteries held by People’s Postcode Lottery (PPL). Theirworld Projects Limited has no ability to alter the price of tickets, determine the prizes or reduce the management fee. PPL is the acting principal for these draws. Net proceeds received are recognised within lottery income in the Statement of Financial Activities. The analysis of the proceeds is detailed in note 4.
Expenditure
Expenditure is accounted for on an accruals basis.
Grants payable are recognised as expenditure in the period in which a binding commitment to make payments is entered into.
Support costs represent the cost of providing general management, human resources, financing and other services to the charity. They are set out in note 5 and they have been allocated on the basis of the level of grant and direct expenditure incurred.
Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. Governance costs are shown as a component of support costs.
Fixed asset investments
Listed investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the period.
Foreign currency translation
Foreign currency transactions are translated into sterling at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet date. Any differences are taken to the statement of financial activities.
Results of overseas operations are translated at the average rates of exchange during the period and the balance sheet translated into sterling at the rate of exchange ruling at the balance sheet date. 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 activities.
17
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1 Accounting policies (continued)
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash at bank and in hand
cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
2 Charitable company status
Theirworld is a charitable company limited by guarantee and registered in England and Wales. Its registered address is Third Floor, The Broadgate Tower, 20 Primrose Street, London, EC2A 2RS. The charitable company does not have a share capital and the liabilities of its members are limited to the guarantee of up to a maximum of £1 each.
| 3 | Income | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Donations | 315,456 | 6,668,240 | 6,983,696 | 5,392,982 | |
| Donated office space | 50,000 | - | 50,000 | 50,000 | |
| Donated communications | - | 370,869 | 370,869 | 466,214 | |
| Lottery income (note 4) | - | 693,196 | 693,196 | 2,594,547 | |
| Fundraising events | 210,195 | - | 210,195 | 27,821 | |
| Trading | 10,546 | 143 | 10,689 | 1,571 | |
| Investments | 13,866 | - | 13,866 | 34,689 | |
| ------------------- | --------------------- | --------------------- | --------------------- | ||
| 600,063 | 7,732,448 | 8,332,511 | 8,567,824 | ||
| ========= | ========== | =========== | =========== | ||
| Prior period: | Unrestricted | Restricted | |||
| funds | funds | 2020 | |||
| £ | £ | £ | |||
| Donations | 407,131 | 4,985,851 | 5,392,982 | ||
| Donated office space | 50,000 | - | 50,000 | ||
| Donated communications | 466,214 | 466,214 | |||
| Lottery income (note 4) | - | 2,594,547 | 2,594,547 | ||
| Fundraising events | 27,821 | - | 27,821 | ||
| Trading | 1,308 | 263 | 1,571 | ||
| Investments | 34,689 | - | 34,689 | ||
| ------------------- | --------------------- | --------------------- | |||
| 520,949 | 8,046,875 | 8,567,824 | |||
| ========= | ========== | =========== |
18
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
3 Income (continued)
As shown above, a gift in kind has been recognised in respect of donated communications. This relates to pro-bono communications, branding and media support for global education campaign activities. The corresponding expenditure is shown as part of direct charitable activities. In line with the requirements of the SORP, the value ascribed to the donated communications reflects the value which the Trustees would have been willing to pay to procure equivalent services.
4 Lottery income
Theirworld Projects Limited received income from lotteries held by People’s Postcode Lottery. An analysis is provided below
analysis is provided below |
||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| People’s Postcode Lottery ticket value | 2,166,236 | 8,107,958 | ||
| People’s Postcode Lottery prize fund | (866,620) | (3,243,183) | ||
| People’s Postcode Lottery management fee | (606,420) | (2,270,228) | ||
| ------------------------- | --------------------- | |||
| 693,196 | 2,594,547 | |||
| ============ | =========== | |||
| Cost of raising income | ||||
| Unrestricted | Restricted | |||
| Funds | funds | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Cost of raising donations | 699 | 28,118 | 28,817 | 45,222 |
| Trading subsidiary expenditure | - | - | - | 1,358 |
| --------------------- | --------------------- | --------------------- | --------------------- | |
| 699 | 28,118 | 28,817 | 46,580 | |
| =========== | =========== | ========== | =========== | |
| Cost of raising income - 2020 | ||||
| Unrestricted | Restricted | |||
| Funds | funds | 2020 | ||
| £ | £ | £ | ||
| Cost of raising donations | - | 45,222 | 45,222 | |
| Trading subsidiary expenditure | 1,358 | - | 1,358 | |
| ------------------ | ---------------- | ----------------- | ||
| 1,358 | 45,222 | 46,580 | ||
| ========= | ======== | ======== |
5 Cost of raising income
19
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
6 Charitable activities
| Charitable activities | |||||
|---|---|---|---|---|---|
| Direct | Support | ||||
| Grant | charitable | costs | Total | Total | |
| payments | expenditure | (note 8) | 2021 | 2020 | |
| £ | £ | £ | £ | £ | |
| Children’s health | |||||
| and welfare | 182,921 | - | - | 182,921 | 410,796 |
| Global Education | 1,279,126 | 4,662,870 | 77,971 | 6,019,967 | 5,411,806 |
| ----------------------- | --------------------- | --------------------- | --------------------- | --------------------- | |
| 1,462,047 | 4,662,870 | 77,971 | 6,202,888 | 5,822,602 | |
| =========== | =========== | =========== | ========== | ========== | |
| Charitable activities | (2020) | ||||
| Direct | Support | ||||
| Grant | charitable | costs | Total | ||
| payments | expenditure | (note 8) | 2020 | ||
| £ | £ | £ | £ | ||
| Children’s health | |||||
| and welfare | 410,796 | - | - | 410,796 | |
| Global Education | 1,526,237 | 3,774,256 | 111,313 | 5,411,806 | |
| ----------------------- | --------------------- | --------------------- | --------------------- | ||
| 1,937,033 | 3,774,256 | 111,313 | 5,822,602 | ||
| =========== | =========== | ========= | ========== |
20
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
| 7 | Grants payable | ||||
|---|---|---|---|---|---|
| 2021 | 2021 | 2020 | 2020 | ||
| Number | £ | Number | £ | ||
| Payable to Institutions | 23 | 1,462,047 | 6 | 1,937,033 | |
| --------------------- | --------------------- | --------------------- | --------------------- | ||
| The following grants to Institutions were made: | 2021 | 2020 | |||
| £ | £ | ||||
| Restricted funds: | |||||
| Jennifer Brown Research Fund: | |||||
| The University of Edinburgh Development | Trust | 182,921 | 410,646 | ||
| Global Education: | |||||
| Aid for Rural Education Access Initiative | 50,000 | - | |||
| Alfanar | 253,600 | - | |||
| Amala Sky School | 8,000 | - | |||
| BRAC | 172,231 | - | |||
| Bognor Regis Youth FC | - | 2,200 | |||
| Butterfly Tree | 5,000 | - | |||
| Children of the Edge | 50,000 | - | |||
| CHIREHO | - | 9,972 | |||
| Edinburgh Direct | - | 10,000 | |||
| Happy and Healthy Trust | 5,544 | - | |||
| Institute of Rural Management | 9,771 | - | |||
| Lebanese Alternative Learning | 50,000 | - | |||
| Literacy Pirates | 10,000 | - | |||
| London Reading Centre | 7,000 | - | |||
| Maya Foundation | 74,262 | 29,934 | |||
| Nabu | 50,000 | - | |||
| Nyasemi Self Help Group | 6,800 | - | |||
| Ubongo International Trust | 50,000 | - | |||
| UNICEF | 461,918 | 1,474,281 | |||
| World Bicycle Relief | 7,500 | - | |||
| Zoe Sarojini Educational Trust | 7,500 | - | |||
| --------------------- | --------------------- | ||||
| Total grants funded by restricted funds | 1,462,047 | 1,937,033 | |||
| =========== | =========== |
21
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
| 8 | Support costs | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Salaries and national insurance | - | 49,493 | |
| Professional fees | 7,230 | - | |
| Office, administration and sundry expenses | - | 4,405 | |
| Bank charges, card charges, and gains/losses on foreign exchange | 1,556 | (8,942) | |
| Governance costs | 19,185 | 16,357 | |
| Facilities | 50,000 | 50,000 | |
| ----------------- | ----------------- | ||
| 77,971 | 111,313 | ||
| ======== | ======== |
9 Governance costs
Governance costs include auditors’ remuneration of £61,344 (2020 :£52,953). Of this, £12,200 (2020: £11,600) related to the audit of the charity and £2,150 (2020: £2,050) to the audit of the UK subsidiary. In addition, non-audit remuneration of £2,100 (2021: £2,340) is included for the Group.
10 Trustees and related party transactions
The Trustees neither received nor waived any emoluments during the period. During the course of the period no expenses were reimbursed to Trustees (2020: £nil – no Trustee). Total donations received from Trustees amounted to £351,628 (2020: £403,313).
No other related party transactions requiring disclosure under FRS 102 took place during the period (2020: none).
11 Staff costs
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 1,744,682 | 1,381,562 |
| Social security costs | 305,174 | 176,248 |
| Pension costs | 22,217 | 21,748 |
| --------------------- | --------------------- | |
| 2,072,073 | 1,579,558 | |
| ========== | ========== |
The average number of employees during the period was 32 (2020: 29).
6 employees earned more than £60,000 during the period (2020: 4). These employees emoluments fell into the bands:
to the bands: |
||
|---|---|---|
| 2021 | 2020 | |
| Number | Number | |
| £60,000 - £69,999 | 1 | - |
| £70,000 - £79,999 | 2 | - |
| £80,000 - £89,999 | 1 | 1 |
| £100,000 - £109,999 | - | 2 |
| £110,000 – £119,999 | 3 | 1 |
| £120,000 - £129,999 | 2 | - |
| £140,000-£149,000 | 1 | - |
| ========== | ========== |
The total remuneration of key management personnel of the group amounted to £386,318 (2020: £320,937).
22
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 DECEMBER 2021
THEIRWORLD
12 Taxation
The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Similar tax exemptions apply to the US subsidiary charity.
The UK subsidiary company makes qualifying donations of all taxable profits to Theirworld. No corporation tax liability on the subsidiary arises in the accounts.
13 Fixed assets
| Fixed assets | |||
|---|---|---|---|
| Furniture | |||
| Fixture and | Office | ||
| Fittings | Equipment | Total | |
| £ | £ | £ | |
| Group | |||
| Cost | |||
| At 30 November 2020 | 135 | 42,584 | 42,719 |
| Additions | - | 7,509 | 7,509 |
| --------------------- | --------------------- | --------------------- | |
| Balance at 31 December 2021 | 135 | 50,093 | 50,228 |
| Accumulated depreciation | |||
| At 30 November 2020 | 135 | 24,441 | 24,576 |
| Charge for the period | - | 7,222 | 7,222 |
| --------------------- | --------------------- | --------------------- | |
| Balance at 31 December 2021 | 135 | 31,798 | 31,798 |
| Net Book Value | |||
| Carried forward at 31 December 2021 | - | 18,430 | 18,430 |
| ========== | ========== | ========== | |
| Brought forward at 1 December 2020 | - | 18,143 | 18,143 |
| ========== | ========== | ========== | |
| £ | £ | £ | |
| Charity | |||
| Cost | |||
| At 30 November 2020 | 135 | 28,346 | 28,481 |
| Additions | - | 7,509 | 7,509 |
| --------------------- | --------------------- | --------------------- | |
| Balance at 31 December 2021 | 135 | 35,855 | 35,990 |
| Accumulated depreciation | |||
| At 30 November 2020 | 135 | 22,779 | 22,914 |
| Charge for the period | - | 3,875 | 3,875 |
| --------------------- | --------------------- | --------------------- | |
| Balance at 31 December 2021 | 135 | 26,654 | 26,789 |
| Net Book Value | |||
| Carried forward at 31 December 2021 | - | 9,201 | 9,201 |
| ========== | ========== | ========== | |
| Brought forward at 1 December 2020 | - | 5,567 | 5,567 |
| ========== | ========== | ========== |
23
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
14 Fixed asset investments
| Fixed asset investments | ||
|---|---|---|
| Shares in | ||
| subsidiary | ||
| undertaking | Total | |
| £ | £ | |
| Group | ||
| Market value & historical cost at 31 December 2021 and 30 | ||
| November 2020 | - | - |
| ========== | ========== | |
| Charity | ||
| Market value & historical cost at 31 December 2021 and 30 | ||
| November 2020 | 1 | 1 |
| ========== | ========== |
Subsidiary undertakings
Theirworld Projects Limited
The wholly-owned trading subsidiary, Theirworld Projects Limited (company number: 04326134), which is incorporated in the United Kingdom. Theirworld Projects Limited’s principal activities are all the commercial trading operations carried on by Theirworld. The charity owns the entire issued share capital of 1 ordinary share of £1 each. The full profit for the period is donated to Theirworld under deed of covenant. A summary of the trading results to 31 December 2021 is shown below.
ovenant. A summary of the trading results to 31 December 2021 |
is shown below. |
|
|---|---|---|
| 2021 | 2020 | |
| Summary profit and loss account | £ | £ |
| Turnover | 703,742 | 2,595,905 |
| Cost of sales | - | (925) |
| Administrative expenses | (232,715) | (203,594) |
| Other operating income | 234,992 | 203,623 |
| --------------------- | --------------------- | |
| Net profit / (loss) before amounts donated to Theirworld | 706,019 | 2,595,009 |
| The assets and liabilities of the subsidiary were: | ||
| Current assets | 105,578 | 99,601 |
| Creditors: amounts falling due within one year | (105,577) | (99,600) |
| --------------------- | --------------------- | |
| Total net assets | 1 | 1 |
| ========== | ========== | |
| Aggregate share capital and reserves | 1 | 1 |
| ========== | ========== |
24
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 DECEMBER 2021
14 Fixed asset investments (continued)
Global Business Coalition for Education, Inc
The wholly-owned charitable subsidiary, the Global Business Coalition for Education, Inc. is a corporation which has exemption under section 501(C)(3) of the Internal Revenue Code from Federal income tax in the US, and is incorporated under the laws of Delaware, USA. GBC-Education was created to act as a business voice for making education a global priority.
A summary of the operating results to 31 December 2021 is shown below.
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Summary profit and loss account | £ | £ | |||
| Income | 2,414,793 | 2,235,298 | |||
| Expenditure | (1,565,234) | (1,534,183) | |||
| --------------------- | --------------------- | ||||
| Net income retained by the subsidiary | 849,559 | 701,115 | |||
| ========== | ========== | ||||
| The assets and liabilities of the subsidiary were: | |||||
| Fixed assets | 9,229 | 12,576 | |||
| Current assets | 2,079,819 | 1,334,204 | |||
| Creditors: amounts falling due within one | year | (81,074) | (155,996) | ||
| --------------------- | --------------------- | ||||
| Aggregate reserves | 2,007,974 | 1,190,784 | |||
| ========== | ========== | ||||
| 15 | Debtors | ||||
| 2021 | 2020 | 2021 | 2020 | ||
| Group | Group | Charity | Charity | ||
| £ | £ | £ | £ | ||
| Amount due from subsidiary | |||||
| undertakings | - | - | 105,578 | 98,070 | |
| Other debtors | 151,057 | 178,721 | 6,370 | 38,382 | |
| Prepayments and accrued income | 54,235 | 26,407 | 52,778 | 26,407 | |
| ------------------- | ------------------- | ------------------- | ------------------- | ||
| 205,292 | 205,128 | 164,726 | 162,859 | ||
| ========= | ========= | ========= | ========= |
All amounts shown under debtors fall due for payment within one year.
16 Creditors: amounts falling due within one year
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Group | Group | Charity | Charity | |
| £ | £ | £ | £ | |
| Trade creditors | 129,022 | 144,937 | 50,186 | 62 |
| Grant commitments | 334,581 | - | 334,581 | - |
| Other taxation and social security costs | 38,823 | 35,260 | 36,585 | 35,091 |
| Other creditors | 5,048 | 3,397 | 5,048 | 3,397 |
| Accruals and deferred income | 23,508 | 50,242 | 23,508 | 37,793 |
| --------------------- | --------------------- | ---------------------- | --------------------- | |
| 530,982 | 233,836 | 449,908 | 76,343 | |
| ========== | ========== | ========== | ========== |
25
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
| 17 | Restricted funds | |||||
|---|---|---|---|---|---|---|
| 1 | 31 | |||||
| December | December | |||||
| 2020 | Income | Expenditure | Transfers | 2021 | ||
| £ | £ | £ | £ | £ | ||
| Jennifer Brown Research Fund | 98,771 | 354,507 | (182,921) | - | 270,357 | |
| Global Education | 6,059,293 | 5,243,822 | (4,644,033) | (552,849) | 6,106,233 | |
| Global Business Coalition for | ||||||
| Education | 793,742 | 2,134,119 | (1,326,081) | (1,472,773) | 92,249 | |
| --------------------- | --------------------- | ----------------------- | --------------------- | --------------------- | ||
| 6,951,806 | 7,732,448 | (6,153,035) | (2,025,622) | 6,468,839 | ||
| ========== | ========== | =========== | ========== | ========== |
Expenditure in the above note includes exchange losses on consolidation
| 1 | 30 | ||||
|---|---|---|---|---|---|
| December | November | ||||
| 2019 | Income | Expenditure | Transfers | 2020 | |
| £ | £ | £ | £ | £ | |
| Jennifer Brown Research Fund | 169,437 | 403,789 | (410,796) | (63,659) | 98,771 |
| Global Education | 4,158,676 | 5,712,150 | (3,811,533) | - | 6,059,293 |
| Global Business Coalition for | |||||
| Education | 441,809 | 1,930,936 | (1,579,003) | - | 793,742 |
| --------------------- | --------------------- | ----------------------- | --------------------- | --------------------- | |
| 4,769,922 | 8,046,875 | (5,801,332) | (63,659) | 6,951,806 | |
| ========== | ========== | ========== | ========= | ========== |
The Jennifer Brown Research Fund was launched in February 2003 to support the Jennifer Brown Research Laboratory at the New Royal Infirmary Edinburgh. The Laboratory’s innovative work seeks to advance our understanding of what causes early labour, how we can develop treatments to prevent it and how we can better 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, educational and clinical information, a world first in investigating the long-term effects of preterm birth.
The Global Education fund was launched in April 2012 to help children unlock their potential by focussing its efforts on three causes: giving every child quality preschool care, enforcing every child’s right to go to school and giving every young adult access to skills development.
The Global Business Coalition for Education fund reflects restricted grants received within the subsidiary undertaking, Global Business Coalition for Education, Inc. less amounts released during the period to unrestricted funds.
Transfers from restricted to unrestricted funds reflects the balance of restricted funds as recorded in the locally audited accounts at 31 December 2021 and 30 November 2020.
26
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
| 18 | Analysis of net assets between funds | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Total | ||
| funds | funds | funds | ||
| £ | £ | £ | ||
| Fund balances at 31 December 2021 are represented | by: | |||
| Fixed assets | 18,430 | - | 18, 430 | |
| Current assets | 4,364,913 | 6,468,839 | 10,833,752 | |
| Liabilities | (530,982) | - | (530,982) | |
| --------------------- | --------------------- | --------------------- | ||
| Total net assets | 3,852,361 | 6,468,839 | 10,321,200 | |
| ========== | ========== | ========== | ||
| 19 | Analysis of net assets between funds 2020 | |||
| Unrestricted | Restricted | Total | ||
| Funds | funds | funds | ||
| £ | £ | £ | ||
| Fund balances at 30 November 2020 are represented | by: | |||
| Fixed assets | 18,143 | - | 18,143 | |
| Current assets | 1,521,039 | 6,951,806 | 8,472,845 | |
| Liabilities | (233,836) | - | (233,836) | |
| --------------------- | --------------------- | --------------------- | ||
| Total net assets | 1,305,346 | 6,951,806 | 8,257,152 | |
| ========== | ========== | ========== |
27
THEIRWORLD
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE PERIOD ENDED 31 DECEMBER 2021
20 Comparative Statement of Financial Activities
| Unrestricted | Restricted | ||
|---|---|---|---|
| funds | funds | 2020 | |
| £ | £ | £ | |
| Income from: | |||
| Donations | 457,131 | 5,452,065 | 5,909,196 |
| Other trading activities and fundraising | |||
| events | 29,129 | 2,594,810 | 2,623,939 |
| Investments | 34,689 | - | 34,689 |
| --------------------- | ---------------------- | ---------------------- | |
| Total income | 520,949 | 8,046,875 | 8,567,824 |
| ---------------------- | ---------------------- | ---------------------- | |
| Expenditure on: | |||
| Cost of raising funds | |||
| Cost of raising donations | - | 45,222 | 45,222 |
| Fundraising trading: cost of goods sold | |||
| and other costs | 1,358 | - | 1,358 |
| Charitable activities | 111,313 | 5,711,289 | 5,822,602 |
| ---------------------- | ---------------------- | ---------------------- | |
| Total expenditure | 112,671 | 5,756,511 | 5,869,182 |
| ---------------------- | ---------------------- | ---------------------- | |
| Net income for the period | 408,278 | 2,290,364 | 2,698,642 |
| Transfers | 63,659 | (63,659) | - |
| Exchange (losses)/gains arising on | |||
| consolidation | - | (44,821) | (44,821) |
| ---------------------- | ---------------------- | ---------------------- | |
| Net movement in funds | 471,937 | 2,181,884 | 2,653,821 |
| Fund balances brought forward | 833,409 | 4,769,922 | 5,603,331 |
| --------------------- | ---------------------- | ---------------------- | |
| Fund balances carried forward | 1,305,346 | 6,951,806 | 8,257,152 |
| ========== | =========== | =========== |
28