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2021-03-31-accounts

The Prince of Wales's

Charitable Foundation

Trustees' Report and Consolidated Statutory Accounts for the Year Ended 31st March 2021 Charity number – 1127255 Company number - 06777589

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

CONTENTS

TRUSTEES' ANNUAL REPORT

INTRODUCTION ................................................................................................................................................. 1
Executive Summary 2021 ............................................................................................................................ 1
CHARITABLE ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE ................................................................. 3
Grant-giving .................................................................................................................................................. 3
Major Grants ................................................................................................................................................. 3
Small Grants .................................................................................................................................................. 7
Accounting for Sustainability .................................................................................................................... 10
THE PRINCE'S COUNTRYSIDE FUND ............................................................................................................... 14
THE PRINCE OF WALES'S FOUNDATION ROMANIA ..................................................................................... 16
Ecologic Transilvania ................................................................................................................................. 16
SOCIAL ENTERPRISES ...................................................................................................................................... 16
Duchy Originals .......................................................................................................................................... 16
AG Carrick and the Highgrove Shop ...................................................................................................... 17
PLANS FOR FUTURE PERIODS ......................................................................................................................... 18
INVESTMENTS ................................................................................................................................................... 18
FINANCIAL REVIEW ........................................................................................................................................ 20
GOVERNANCE & MANAGEMENT ................................................................................................................ 21
Risk Management ...................................................................................................................................... 21
Policies ......................................................................................................................................................... 22
REFERENCE AND ADMINISTRATIVE DETAILS ................................................................................................. 23
STATEMENT
OF
RESPONSIBILITIES
OF
TRUSTEES……………………………………………………………………………………………………………….24
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PRINCE OF WALES'S CHARITABLE
FOUNDATION................................................................................................................................................. 25
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES............................................................................. 29
CONSOLIDATED BALANCE SHEET................................................................................................................. 30
FUND BALANCE SHEET.................................................................................................................................... 31
CONSOLIDATED CASH FLOW STATEMENT.................................................................................................... 32
NOTES........................................................................................................................................................ 33-60

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

INTRODUCTION

Inspired by His Royal Highness The Prince of Wales's values of harmony and sustainability, the Prince of Wales's Charitable Foundation aims to transform lives and build sustainable communities.

Following another successful year for the Foundation, the Trustees hereby present their report, along with the financial statements of the Group and the Foundation (pages 29-60) for the year ended 31 March 2021.

The Trustees have reviewed the objectives, activities and achievements for the year and are satisfied that the Foundation has complied with the requirements of public benefit reporting as set out in the Charity Commission's General Guidance on Public Benefit.

The Prince of Wales's Charitable Foundation, now trading as The Prince of Wales’s Charitable Fund, (“PWCF” or “the Fund”) is a company limited by guarantee, incorporated on 19th December 2008 and registered as a charity in England and Wales on 22nd December 2008.

The company was founded under a Memorandum of Association which established the objects and powers of the Fund and is governed under its Articles of Association.

Charitable Activities

The grant-making and other work of PWCF and its subsidiary organisations cover a number of activities in various categories, shown in the chart below. PWCF itself acts as a grant-making body, supporting a wide range of causes and during the year ran an internal charitable programme, Accounting for Sustainability (A4S) (see page 10). From time to time, PWCF also incubates smaller projects that fit with His Royal Highness's charitable vision.

The Fund also has two charitable subsidiaries, The Prince of Wales's Foundation Romania (PWFR) and The Prince's Countryside Fund (PCF). The Romanian Foundation has been dormant for over a year. The Prince's Countryside Fund, aims to improve the sustainability of British farming and the rural communities that support, and are supported by, farming in the UK (see page 14).

The charity’s activities fall into nine categories: Environmental & Economic Sustainability, Education & Training, Communities & Social Welfare, Heritage & Architecture, Agriculture, Conservation & Animal Welfare, Religion & Churches, Elderly and Other. The chart below shows 2020/21charitable expenditure by category:

Executive Summary 2021

Charitable Objectives

The Charitable Objects of PWCF are to support such charitable purpose or purposes as the Trustees shall in their absolute discretion from time to time think fit, towards our aim of transforming lives and building sustainable communities whilst adhering to the Fund’s core principles:

  1. to endeavour to maximise charitable impact;

  2. to support HRH The Prince of Wales's charitable interests;

  3. to uphold best-practice governance, management and systems;

  4. to leverage HRH The Prince of Wales's ability to convene and facilitate; and

  5. whenever possible, to use its own grants to leverage additional funding from other sources.

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PWCF's Charitable Activity
Expenditure 2020-21
Environmental
& Economic
Other
20% Sustainability
43%
Conservation &
Animal
Welfare…
Agriculture
4%
Heritage &
Architecture
11%
Education
Communities &
Social Welfare & Training
6%
13%
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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Environmental & Economic Sustainability, which includes the A4S, made up 43% of the total charitable expenditure. The next largest was Other at 20%, due to grants being awarded for COVID-19 Recovery.

Financial Performance

The Charitable Group reported an overall net increase in funds of £1.25m (2020: decrease of £0.10m). Unrestricted funds have increased by £582,000 whilst restricted funds have also increased by £802,000. Net income from continuing activities was £1.27m (2020: net expenditure £0.03m).

Income for the Group totalled £10.4m, a decrease of £3.56m on the prior year. The decrease is largely due to the impacts of COVID-19 on PWCF’s trading activities.

Duchy Originals Limited (DOL) continued to support the charity donating a total of £3.59m (2020: £3.63m).

PWCF’s grant giving was £4.91m compared to £5.90m in 2020/21. The number of organisations who received a grant from the group decreased from 252 to 131.

The Fund holds investments with Rathbones Greenbank Investments and Troy Asset Management; these have generated investment income of £90,000 and unrealised gains of £1.34m (2020: unrealised losses £206,000).

Overall unrestricted funds for PWCF have increased by £582,000. Designated funds have decreased by £131,000 due to utilising funds. Restricted funds have been increased during the year by £802,000.

Structure

The Fund has two social enterprise trading subsidiaries, Duchy Originals Limited and A.G. Carrick Limited, the profits of which are gift aided to PWCF. In addition to this, the Fund has two charitable subsidiaries, The Prince of Wales's Foundation Romania and The Prince’s Countryside Fund, each in turn, with its own trading arm, Ecologic Transilvania and Countryside Fund Trading Ltd.

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Duchy Originals
Limited
AG Carrick Limited
The Prince of Wales's
Ecologic Transilvania
Fund Romania
The Prince's Countryside Fund
Countryside Fund Trading
Fund
The Prince of Wales's Charitable
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The Prince of Wales's Charities

For over 40 years, His Royal Highness The Prince of Wales has been a leader in identifying charitable need and finding solutions through His Royal Highness's group of charities to meet this demand.

From the early days of The Prince’s Trust in the mid1970s, his charitable interests have grown to represent a broad range of areas including the Built Environment, the Arts, Responsible Business and Enterprise, Young People, and Global Sustainability and Rural Affairs. The Prince of Wales carries out dozens of engagements every year in support of his charities and their aims.

Following the results of a review of The Prince of Wales’s charities in 2018, three core charities: The Prince’s Trust Group, The Prince’s Foundation, and The Prince of Wales’s Charitable Fund work alongside the Royal Founding Patronage charities to support The Prince of Wales’s charitable work in the UK and overseas. The Prince’s Trust group incorporates the Prince’s international charitable interests. The Prince of Wales’s built environment, heritage, culture and education charities are now part of The Prince’s Foundation.

Speaking about the new structure The Prince of Wales said: "As I look at the results of this reorganization, I have a strong sense of optimism and anticipation for what more may be achieved. These changes do not mean I am stepping back from my charitable work or downsizing in any way - it is simply an opportunity to work more efficiently and, I hope, to even greater effect. I look forward to many more years of building on the important work that has been achieved to date.”

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

CHARITABLE ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE

Grant-giving

The Fund is primarily a grant-giving organisation, running both “major” and “small” grants programmes.

Major grant applications are considered on a quarterly basis by the Trustees. Organisations can apply for major grants by invitation only; these grants reflect PWCF's key strategies and obligations.

Responsibility for grants up to £5,000 has been delegated to a Small Grants Committee. Applications are received through the Fund's website and are considered quarterly.

The Trustees and the Small Grants Committee will award funding to inspiring and worthy initiatives if (1) the relevant criteria have been met; (2) the use of the funding falls within the Fund’s charitable objectives and (3) the charity has the available funds to do so. To see the awarding criteria in full, please go to www.pwcf.org.uk.

In total, the Fund awarded £4.91m to 131 charitable institutions (2020: £5.92m to 252 charitable institutions). Case studies of grants awarded can be found on the charities website.

Major Grants

Total Major Grants awarded was £4.5m (2020 £2.6m). There has been a significant increase in the value of grants awarded.

As part of the Fund’s grant-making strategy, we encourage our grant beneficiaries to work together where they have overlapping programmes, in order to increase our impact and ensure that we have a holistic approach to our priority themes.

The Fund also has a significant interest in heritage, education and youth, and made grants towards The Prince's Foundation and The Prince's Trust's Group which includes Prince’s Trust International and the realm countries Australia, Canada and New Zealand.

The chart below shows the comparison year on year of PWCF's unrestricted major grant giving by category.

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Unrestricted Major Grants by Category
Environmental &…
Education & Training
Conservation & Animal…
Agriculture
Communities & Social…
Other
- 1,000,000 2,000,000
2020/21 2019/20
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Restricted major grant giving for 2020/21 is £1.14m, which is in line with the prior year of £1.16m.

PWCF was delighted to once again receive funding from The People’s Postcode Lottery. The Fund would like to thank the players of the Postcode Lottery for a grant of £800,000 (2020: £800,000). This grant was used to support work delivered by The Prince’s Countryside Fund, The Professional Teaching Institute (PTI) and The Prince’s Foundation and Business in the Community.

PWCF continue to fund a pioneering project to help British farmers improve their productivity in an environmentally responsible way. This project, Innovative Farmers, is being delivered by The Soil Association in partnership with Waitrose Duchy Organic. The Fund awarded a further £500,000 to this project in 2020/21 (2020: £250,000).

Major Grant Case Studies

Case Study 1 - The Prince’s Trust Group

The Prince’s Trust Group is a global network of charities founded by HRH The Prince of Wales. Its mission is to transform lives and build sustainable communities worldwide, with a particular focus on empowering young people. It includes the work of The Prince’s Trust in the UK alongside Prince’s Trust International and more recently Prince’s Trust Australia (PTA), Prince’s Trust New Zealand (PTNZ), Prince’s Trust Canada (PTC) and Prince’s Trust USA (PTUSA).

The Prince’s Trust is now active in eighteen countries, both within the Commonwealth and beyond: Australia, Barbados, Canada, Ghana, Greece, India, Jamaica, Jordan, Kenya, Malaysia,

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Malta, New Zealand, Pakistan, Rwanda, St Lucia, Trinidad & Tobago, the United Kingdom and United States of America.

The Prince’s Trust delivers Education, Employment, Enterprise and Environmental projects that enable young people and communities to thrive. The Prince’s Trust helps young people to develop their confidence and life skills, to access education and training, and to move into employment and selfemployment. The Prince’s Trust also supports other communities, including indigenous people and military veterans in Canada and Australia, for example.

focused on delivering its own version of The Trust’s “Enterprise” self-employment programme. Established more recently, Prince’s Trust New Zealand has so far supported 352 young people.

Kristin: “Operation Entrepreneur” participant, Canada

PWCF support for The Prince’s Trust Group, 2018/21

During the three years 2018/21, The Prince’s Trust Group has received significant support from PWCF totalling just over £2 million.

This support has been key to the formation and recent expansion of The Prince’s Trust Group; and vital in enabling The Prince’s Trust to establish and grow its delivery in Canada, Australia, New Zealand and the Caribbean. More recently, the support from PWCF has ensured that The Prince’s Trust has continued to support young people and military veterans through the global coronavirus pandemic, by switching to online delivery.

Since April 2018, PWCF’s support has enabled The Prince’s Trust to achieve the following:

After 21 years of service with the Canadian Armed Forces, Kristin suffered a concussion and was medically released. After struggling to find

employment,

and with support from Prince’s Trust Canada, Kristin started her own online plant business (Sweetlife Flora) through the “Operation Entrepreneur” programme for military veterans.

Kristin took part in an introductory workshop and a one-week “boot camp” training session, then engaged with her mentor, Richard, who helped her with financial forecasting and business planning. Kristin has gone from facing a very uncertain future to an optimistic one full of opportunity. She says: “I wouldn’t be where I am today without Prince’s Trust Canada.” Kristin was The Prince’s Trust Global Award winner 2021.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Nour: “Discover Green Careers” participant, Canada

Nour is a third-year Environmental student at the University of British Columbia. She joined the Prince’s Trust Canada “Discover Green Careers” programme to build on her academic knowledge of environmentalism

with practical, hands-on, career-focused training and mentorship.

“For me, school alone isn’t enough to learn all the knowledge and skills that I need to gain in this field. Prince’s Trust Canada is definitely the right place to find training,” says Nour.

After completing the programme, Nour felt more confident about the opportunities to work in the sustainability sector, whether in research, technology or physical work. Feeling inspired to discover her own career path in sustainability, Nour adds: “The course equips students with the resilience they need to successfully pursue a green career with confidence.”

Shanae: “Achieve Fest” participant, Australia

Shanae took part in the “Achieve Fest” online course with her classmates in March 2021. Shanae says she was unclear what life looked like beyond school and that participating in Achieve Fest helped her to explore her interests, develop skills and then connect to potential career pathways.

Case Study 2 - The Prince’s Foundation

The Prince’s Foundation (PF) provides holistic solutions to challenges facing the world today. PF champion a sustainable approach to how we live our lives and build our communities, PF run a diverse programme of education and training for all ages and backgrounds, and PF regenerate and care for places where communities thrive and that visitors enjoy.

PF outreach is both nationally and internationally but at the heart of their organisation is the heritageled regeneration of the Dumfries House Estate and its wider community, where their principles and philosophies are explored and put into practice.

PWCF awarded £1.11m in unrestricted funds to PF, to underpin their charitable activities, not including the grant of The People’s Postcode Lottery funding explained on page 3. An additional £46k restricted grant was awarded to cover the costs associated with the feasibility study into the establishing charitable activities on the Highgrove Estate.

The Modern Artisan project

Beginning in October 2019, The Modern Artisan project, in collaboration with YOOX-NET-A-PORTER (YNAP), involved six Italian artisans who designed a sustainable capsule collection, and four British artisans who carried out the production of the collection at Dumfries House. The students were supported through the process of designing, manufacturing, and bringing to market a luxury Autumn/Winter capsule collection of menswear and womenswear.

Since attending Achieve Fest, Shanae has enrolled in a fitness course through her school and started working part time at a local gym. Post school, she has decided to pursue a career in the fitness industry. Shanae says: “I felt very indecisive about my future before doing Achieve Fest as I wasn’t sure what I liked to do. At Achieve Fest I was able to see what my interests were and that I would enjoy doing something physical. I feel like I have now made a decision about my career.”

Due to the pandemic, PF had to suspend the programme between March and August 2020, but the artisans were eventually able to return to a socially distanced studio and completed the course in October, with the collection launched in

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

November and attracting a high volume of international press coverage.

Building Craft Programme

While most other craft training programmes in the UK were cancelled, PF have been able to deliver a meaningful programme for their cohort of 12 students with a delay of only two months. The 2020/21 cohort of students comprised three carpenters, three stonemasons, two natural builders, a blacksmith, a plasterer, a brick worker and an architect. The programme got underway in September with PF’s Summer School at Dumfries House rather than in London and the students lived on the estate for the initial stages of the programme and the Live Build. This year, the students cooperated on the restoration of eighteenthcentury Pennyland Cottage.

Commonwealth which was launched by the partners in early 2021.

Rapid Planning Toolkit

The world’s urban population is set to increase dramatically in the next three decades, with most of this rapid urbanisation occurring in cities of less than one million inhabitants, many of which suffer from a lack of capacity in built environment professionals and are under-resourced to tackle this challenge.

PF were able to call on their extensive industry partner network to provide all of the students with work placements relevant to their chosen craft specialism, including at one of the PWCF funded ‘7 for 70’ projects – plastering work at Drapers’ Hall, Coventry.

Commonwealth Sustainable Cities

Throughout 2020, PF worked closely with the Association of Commonwealth Universities, the Commonwealth Association of Architects, the Commonwealth Association of Planners and the Commonwealth Local Government Forum to support them in developing a more strategic and collaborative approach to ensuring sustainable urbanisation across all its member states.

Sustainable Urbanisation had been proposed for discussion at the Commonwealth Heads of Government Meeting but was unfortunately postponed to 2021 as a result of Covid-19. To maintain momentum, the Commonwealth partners decided to launch an online programme, ‘Commonwealth Sustainable Cities’, which was supported by the Rwandan Ministry of Infrastructure, the Rwandan Ministry of Local Government and PF.

On 24th June 2020, HRH The Prince of Wales officially launched the programme which comprised 11 sessions, ran from June -September and involved 106 panellists from 31 countries. It attracted over 2,000 individual participants from 88 countries, amounting to over 4,000 unique views. Importantly, the programme also informed a Call to Action on Sustainable Urbanisation across the

Throughout 2020, there were several exciting updates on the Rapid Planning Toolkit. The secondary city of Bo in Sierra Leone managed to move from Step One (creating a City Charter) to Step Three (planting trees to protect the key routes of the neighbourhood plan). The tree planting ceremony held on the 23rd July 2020 was attended by over 300 people including high-level stakeholders from local government. Around 450 trees have now been planted and plans are underway to undertake road grading and create demonstration buildings in 2021 (Step Four of the Toolkit). Partners in Ghana, The Gambia and Bangladesh have also started the preparatory stages of implementing the Toolkit.

Case Study 3 - Trees for Cities

PWCF awarded £120,000 towards the Generation Tree project which supports the charity’s strategic national objectives to increase canopy cover whilst tackling urban issues of social equity and justice. Working particularly with young people, the project aims to create a generational shift in attitude towards the environment, empowering the next generation to engage in local volunteering.

Trees for Cities is creating a social movement for trees, harnessing the current appetite for urgent

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

transformative environmental change and supporting communities to do something tangible through planting, protecting and promoting urban trees.

The major grant from PWCF enabled Trees for Cities to plant 12,250 trees, maintain 5 woods across 2 ‘forgotten’ towns/cities, create “Love Trees hotline”, online street tree fundraising platform, community toolkit, Generation Tree youth steering group, local authority Tree Cities of the UK early adopters and Knowledge hub.

Small Grants

The value of small grants awarded has grown significantly over the last five years. In 2020/21 small grants totalling £348,025 were awarded to 93 organisations (2020: £262,368 to 122 organisations).

----- Start of picture text -----
Small Grants
400,000 140
350,000
120
300,000
100
250,000
80
200,000
60
150,000
40
100,000
20
50,000
- -
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| Value =D Number of organsations
Value of Grants
Number of Organisations
----- End of picture text -----

The small grants programme continues to be very successful having a significant impact on a number of smaller charities and local communities. The COVID-19 pandemic has highlighted the need for a more flexible approach to our grant making programmes. Consequently, we decided to postpone our normal small grant programme and launched the PWCF COVID-19 Recovery Fund to enable organisations to deliver much needed health & wellbeing, social inclusion, education and environmental projects, and lessen the impact of the pandemic on children and young people, the elderly and wider community. In accordance with our Small Grants Committee aim to cover all areas of the UK, funds were awarded to projects in England, Wales, Northern Ireland and Scotland.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Case Study 1 - The Women & Families Resource Centre (WFRC),

The Women & Families Resource Centre (WFRC) aims to transform the lives of some of the most disadvantaged and socially excluded women and children of Wolverhampton’s deprived communities. The charity received funds to deliver Club Arise to Shine (A2S) - a programme of activities for isolated, disadvantaged and hard to reach children and young people.

Karyne Tazi said “ We are immensely grateful for the Prince of Wales’s Charitable Fund’s financial support during these unprecedented times. A rising issue and call for concern during this pandemic has been the damaging effects that the pandemic is having on young people’s mental wellbeing and we are doing all we can to support them during this period. Our young people need us now more than ever. Club A2S plays a huge part in engaging, combatting social isolation and building emotional resilience for vulnerable and disadvantaged children & young people in Wolverhampton. Our virtual youth club gets them together in a safe space and offers positive life experiences that buffer the current issues they are facing as a result of the lock down restrictions. This valuable grant will ensure that we are better able to support some of the most vulnerable children & young people in our community. Thank you so much PWCF for making this work possible. ”

Case Study 2 – Erskine Hospital

Another beneficiary of PWCF’s COVID-19 Recovery Fund is Erskine Hospital, Scotland’s leading charity for Veterans, providing expert care and support to over 1,000 Veterans every year. Erskine has supported the elderly since 1916.

Gareth Toner said “ Erskine is delighted to be receiving a grant from The Prince of Wales’s Charitable Fund. This generous donation will fund PPE and hygiene materials for The Erskine Home, Bishopton. Our Home’s incredible staff continue to offer sector-leading care for 180 elderly Veterans and spouses during the COVID-19 pandemic. Through extensive use of PPE and strict infection control procedures, we are proud to provide a wide range of enhanced care services and our Veterans can safely enjoy visits from their loved ones during this difficult period. Erskine would simply not be in a position to offer this level of care to Scotland’s Veterans without generous supporters like The Prince of Wales’s Charitable Fund. We are hugely grateful to the Trustees and this grant will make a significant positive difference to our residents’ lives. ”

Case Study 3 - Footprints in the Community

Footprints in the Community runs a variety of services including a book club, under one umbrella to help address isolation and poverty in and around Redcar and to provide a network of support to local people and organisations. In 2013 Footprints established the very first foodbank in Redcar, and now runs a network of foodbanks across the local authority area. Other projects include Lunchbox (to tackle holiday hunger for children), Men's Shed (to tackle loneliness and men’s mental health), Next Step shop (for affordable access to food), and a Community Café.

The grant from PWCF COVID-19 Recovery Fund was used to support the Book Club and to help inspire a love of reading among the children of Redcar and Cleveland and improve literacy rates and, thereby, life-chances. The Book Club project seeks to help close the education and literacy gap. Established for Christmas 2020, the project distributed 1923 new books to 641 children which included every child in care, every child working with the council ‘crisis’ team (those who are homeless or in temporary accommodation), children participating in the Footprints family projects (foodbanks and holiday-

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

hunger clubs) and vulnerable pupils identified by 8 local schools.

lockdowns. It is nice to know we haven’t been forgotten about .’ – Mrs. P.W.

‘I can’t thank you enough for the phone calls. I think it’s brilliant what you do… you are all so nice and kind, you give me the motivation to carry on. ’ – Mrs. V.K.

As the lockdown eased in the summer of last year, Good Companions was pleased to be able to start visiting people in their gardens. This gave those struggling wish social isolation some essential company and human connection, which was much valued.

Case Study 4 - Good Companions

PWCF awarded a small grant to support volunteer recruitment campaign at Good Companions. The charity was established in 2001, to address the large number of older people living in the Clifton area who were lonely and facing social isolation.

Good Companions’ Befriending and home visiting schemes were adapted to suit life in lockdown following an award from PWCF’s COVID-19 Recovery Fund. With support from PWCF, members of the scheme were telephoned regularly, a monthly newsletter was also delivered to members alongside a themed care parcel. Volunteers collected food and medicines for shielding members. Over the past year, Good Companions have been in regular contact with 145 individuals.

‘ This has been a real lifeline for me. The treats and puzzles make a lovely break in the lonely times of

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Accounting for Sustainability

Background

A4S programme was launched by HRH The Prince of Wales to mobilise action and leadership by the finance and accounting community. A4S is an internal programme of the Fund.

Our vision is for sustainable business to be business as usual. Organisations that are successful will generate profits while creating value for society and operating within the ecological boundaries of the planet.

Our purpose is to transform finance to deliver a sustainable future, mobilising the global community we have built to catalyse action at the pace and scale needed.

We aim to achieve this by:

  1. Inspiring finance leaders to adopt sustainable and resilient business models.

  2. Transforming financial decision making to enable an integrated approach, reflective of the opportunities and risks posed by environmental and social issues.

  3. Scaling up action across the global finance and accounting community.

A4S works across the following five core groups to achieve its aims:

To support delivery of its aims, A4S has three global networks:

  1. CFO Leadership Network, a group of CFOs from leading organisations seeking to transform finance and accounting.

  2. Accounting Bodies Network (ABN), whose members comprise approximately two thirds of the world’s accountants.

  3. Asset Owners Network, which brings together pension fund chairs to integrate sustainability into investment decision making.

Our delivery priorities up to 2025 are to:

  1. Capture and disseminate a compelling evidence base, and inspire people to act.

  2. Set ambitious targets and embed them into strategy and decision making.

  3. Allocate funds to deliver sustainable outcomes.

  4. Value natural, social and human capital to accelerate integration into decision making.

  5. Adopt common standards and consistent terminology.

As for most organisations, the past year saw significant upheaval due to the COVID-19 pandemic, with the subsequent lockdowns within the various countries and jurisdictions that A4S operates in. Despite these changes, A4S went from strength to strength, significantly increasing engagement on a global scale through the digital delivery of our programmes, events and outputs.

Momentum has continued to build amongst the global finance and accounting community. The pandemic has seemingly only increased the recognition of the urgency and scale of action required to meet environmental and social risks and opportunities. As we were able to show in our Building a Better Future report, the pandemic has demonstrated that systemic risks from nonfinancial sources can and do arise – with a devastating impact on people and the global economic system. Furthermore, it became even more apparent during the last year that organisations with higher sustainability credentials outperformed others. Increasing the evidence to our belief that sustainable businesses are more resilient and successful in the long term.

“Achieving a sustainable future is the growth story of our time and can fuel our post-pandemic recovery in a way that pays dividends for decades to come. But we will only realise these dividends if we act now. This is why, after all, I established A4S.”

HRH The Prince of Wales , A4S Summit 2020

Highlights for 2020-2021

Our networks

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Our advocacy

Our programmes

2020-2021 activities

second year programme, also saw an increase in recruitment, in particular from the Asia Pacific region.

Despite lockdowns due to the COVID-19 pandemic, our networks have continued to meet virtually to maintain momentum and to keep environmental and social factors on the agenda.

CFO Leadership Network Essential Guide series

In the last year we have launched two new sets of guidance: The A4S Essential Guides to Management Information and Valuations and Climate Change . Given our increasing reach, both guides have been our most successful in terms of overall downloads.

Our Management Information guide was created to support finance professionals to develop and integrate the information needed to respond to social and environmental risks and opportunities into core management information processes.

Our Valuations and Climate Change guide was developed to bring climate change risks and opportunities into business and asset valuation calculations. The Valuations guide was the first of our guides to be led by members of the Canadian Chapter of the A4S CFO Leadership Network.

A4S Summit 2020

At the end of 2020 we hosted our annual Summit. The event, which is usually held at St. James’s Palace, was held online for the first time, meaning we were able to schedule events for different time zones. A4S organised two weeks of events for the Summit, hosting over 85 speakers and 2,000 finance leaders from around the world.

A keynote speech was delivered by HRH The Prince of Wales to begin the proceedings, which also included conversations with high profile speakers such as Ban Ki-Moon, Paul Polman and financial leaders from around the world. A shared vision for a sustainable recovery emerged based upon three common themes:

International outreach

The global rollout of the A4S CFO programme continued to move forward. A board was established for our Brazilian Circle of Practice. Meetings have been held to establish the initial membership of our Asia Pacific CFO Leadership Network, which will launch in the 2021-22 financial year. The A4S Academy, shortly commencing its

As with all guides in the series, they were developed ‘by finance, for finance’ to provide practical tools and case studies to help finance professionals embed sustainability into day-to-day activities and decision making.

The Essential Guides are supported by additional guidance through top tips, tools, case studies and worked examples to support implementation by finance teams around the world. This year we have also provided practical examples on topics such as plastics, capital expenditure, carbon pricing, climate-related financial risk and biodiversity.

The A4S Academy

In 2019 we evolved our successful implementation ‘ ’ workshop series to create the A4S Academy .

The Academy is a CFO-sponsored programme, which empowers and equips finance teams with the skills needed for their businesses to succeed in the face of environmental and social risks and opportunities. The programme is for senior finance professionals. Participants have access to a variety of knowledge-based materials, experienced practitioners and skills development sessions to

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

support them through the 18 months-long programme.

This financial year saw the Academy’s first full launch, with the participants set to graduate at the end of 2021. At the start of 2021 the recruitment for our second year began, with increased ambition for recruitment and global reach.

In response to the pandemic, the programme is being delivered in full in virtual format. With much of the content already designed to be delivered online, this has required only minimal changes and has meant that we can offer places to a larger than planned cohort. We are also delivering a range of associated webinars and content that is reaching an even wider community of finance professionals.

“The A4S Academy is a brilliant way for finance professionals to connect themselves to the latest thinking and a growing network of support.” Gregor Alexander Finance Director, SSE

Accounting Bodies Network (ABN)

The ABN has continued to focus its discussions and activities on addressing the most pressing issues and challenges facing the profession. The network established three working groups – on Reporting, COP26, and COVID-19. The network’s COVID-19 working group was established to explore the impacts of the pandemic, and to identify ways that the ABN can collectively support a sustainable recovery. The findings were summarised in a report – Build Back a Better Future: the Role of the Accounting Community .

The past year has seen several significant developments in the sustainability reporting landscape, which has the potential to have profound impacts on corporate reporting and opportunities for the accounting profession. With recent announcements from the EU and the IFRS Foundation, as well as developments in harmonisation across the reporting frameworks, it is an exciting future ahead and a focus for the ABN as well as A4S’s other networks. Over the past year, the ABN has helped to influence the debate, for example, using its collective voice to drive improved disclosure of climate-related financial information. In November, the network released a Statement of Support, addressing the use of current International Financial Reporting Standards, the International Standards on Auditing and the International Public Sector Accounting Standards to disclose climate-related financial information. The statement summarised main developments and listed several commitments the ABN planned to implement.

A4S’s Capital Markets Work Programme

Aligned to A4S’s delivery priority ‘to allocate funds to deliver sustainable outcomes’, our capital markets activity mobilises action from the most influential C-suite leaders across the global investment chain, to scale fund allocation rapidly towards sustainable outcomes. We then use peerto-peer influencing to motivate the regulatory and wider financial community and amplify our impact.

Key activities include:

Business schools and academia

The fourth A4S International Case Competition took place in a fully virtual format. The competition is run in partnership with Rotman Business School and

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

focuses on inspiring students from business schools across the world to develop innovative solutions to significant sustainability challenges. This year’s competition was focused on supply chains, and what can be learned from the COVID-19 pandemic to strengthen resilience in the future.

There were 20 competing teams from seven different countries, with the virtual format enabling participation from a global panel of expert judges representing eight different countries. The winners were Team E-Fishing Sea, a group of MBA students from HEC Montréal, who developed an idea to connect local fishers and markets. The runners up were Team BizCupid, made up of undergraduate students from the National University of Singapore and London School of Economics and Political Science, with their idea to create an application to matchmake SMEs to build more sustainable and resilient supply chains.

Summary

A4S has maintained momentum through a turbulent year. We have grown internationally as well as hit major milestones through our engagements and publications. The success of the last financial year has put us in a good position to springboard into our next financial year, which includes activities at the re-arranged COP26, and further network and operational growth.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

THE PRINCE'S COUNTRYSIDE FUND

PRINCIPAL ACTIVITY

The Prince’s Countryside Fund (PCF) was established in 2010 as a response to concerns expressed by HRH The Prince of Wales and by Business in the Community’s Rural Action Leadership Team regarding the future of farming and rural communities in the United Kingdom. Given these origins, The Prince’s Countryside Fund operates in accordance with the vision of HRH The Prince of Wales.

PCF is a charitable subsidiary of PWCF and aims to improve the sustainability of British farming and the rural communities that support, and are supported by, farming in the UK.

Current grant beneficiaries were also offered the opportunity to repurpose some of their funding to target Covid-19 support or to extend the timeframe of their funded projects.

CASE STUDY 1- Charles Burrell Centre in Norfolk

Danny, Chief Executive of CBC said:

During this year of unprecedented uncertainty, the PCF successfully continued to deliver activity against its charitable purpose by adapting working arrangements and refocusing our programmes of support. The main areas of disruption to the PCF’s work included the postponement of fundraising and cultivation events and the need to pause our workshops which formed part of The Prince’s Farm Resilience Programme.

The PCF continued to provide charitable support in three key areas:

Grant Programme

Over the course of the year PCF awarded £465,227 to 115 community projects across the UK. This was through a series of four emergency grant rounds where funding was repurposed to offer more, lowerlevel grants to support rural community organisations in their efforts to respond to the challenges of the pandemic. These projects were more important than ever as remote communities struggled with people isolating and unable to access vital supplies such as food and prescriptions. In summary, we awarded:

The funding from The Prince’s Countryside Fund helped us deliver hundreds of packs to people in need. There were lots of people facing sudden poverty due to the coronavirus pandemic. Many of these were suffering and shielding due to age or disability. We are still seeing high levels of demand for basic essentials and food.

Staff frequently tell me that they have people on their doorsteps in tears because they are just so grateful for our support. Just last Friday, I had a young mum with a one-year-old, who told me she didn’t know where she would be without us.

When we were still in strict lockdown, we had a little girl come to the centre asking if she could use our toilet. We said we weren’t really supposed to be open to the public, and asked why she couldn’t just go at home and she told us that they didn’t have enough money for toilet paper. We went to visit her home and discovered that her family was living in severe poverty, so we were able to provide them with a basic essentials pack and a food pack too. The little girl’s mother has continued to come back every week for a pack for her household, so they're now managing just about. They were just too proud to ask for help, so it was lucky their daughter wasn't afraid to come to us. This is one of so many stories of people in need of our support.

“ We’re super, super grateful for the funding from The Prince’s Countryside Fund, it has been a lifeline for us, which has been a lifeline for others – thank you .” THE PRINCE’S FARM RESILIENCE PROGRAMME AND NETWORK.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Entering its 5th year of operation, from March 2020 all direct activity through The Prince’s Farm Resilience Programme was paused. The ability for these groups of farmers to meet in person is a vital contributor to the success and impact of the programme and the PFRP Steering Group decided to put the workshops on hold until they could be held again in person. Instead, focus turned to developing a “keeping in touch” programme, to maintain engagement with the farm businesses throughout the year. This included regular newsletters, renewed engagement through the Facebook group, check-in phone calls for all participating farm businesses from the local coordinators and a programme of optional online seminars.

The virtual activity and online seminars formed a vital launchpad for our Farm Resilience Network, a continuation of support for the c.1,000 farm businesses who have participated in the programme since 2016. PCF was also delighted to partner with McDonald’s UK & Ireland to launch a series of “ Ready for Change ” workshops to help farmers navigate the forthcoming changes to agricultural policy.

FARM SUPPORT GROUP INITIATIVE

The PCF’s work with our network of 40+ Farm Support Groups was further reinforced with the addition of a grant from the National Lottery Community Fund to extend the role of the Farm Support Coordinator to further support to these networks during the pandemic. This additional funding allowed for increased engagement with an “ Over the Gate ” farm newsletter every quarter and virtual monthly training and information sharing workshops.

FARMING HELP PARTNERSHIP & THE PCF

Our work with the Farming Help Partnership became increasingly important throughout 2020 and the five charities involved, plus the PCF, started to meet weekly during the pandemic to monitor trends in increasing demand for support.

RESEARCH REPORTS

In 2020, PCF undertook three major research projects on the viability of livestock auction marts; the network of small and local red meat abattoirs in the UK; and an in-depth evaluation of The Prince’s Farm Resilience Programme. Due to be published in 2021, these reports provide a wealth of evidence to inform the PCF’s future activities and specific recommendations to support family farmers.

FUNDRAISING

We want to scale up our work over the next three years to continue to bring HRH The Prince of Wales’s vision to life. As a charity, we are dependent on securing increased funding to extend our programmes of support to family farms and rural communities. Therefore, in August 2020 our Board of Trustees approved a new Fundraising Strategy for the Fund. This sets out our ambitions for income growth in the three areas of Corporate Partnerships, Philanthropy and Trusts & Foundations for the next three years.

Our aim in 2020 was to build a stronger fundraising and stewardship team which we achieved with two new appointments of a Fundraising Officer and Trusts & Foundations Manager. Furthermore, we invested in a new customer relationship management system to improve our recording, stewardship and audit of all our supporters and fundraising activities.

Given the challenges and uncertainties of the past year, combined with a new approach, PCF ended the financial year in a good position, completely aligned with our Fundraising Strategy. This outcome, together with an end-of-year evaluation of our fundraising activities, provides PCF with a strong platform from which to launch the PCF’s new Strategic Plan for 2021 to 2024.

In total through all our activity, over £730k was provided to grant and programme funding with 62% of our expenditure on charitable activities.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

THE PRINCE OF WALES'S FOUNDATION ROMANIA

Founded in 2015, The Prince of Wales's Foundation Romania (PWFR) is an educational charity that takes forward His Royal Highness's charitable work in Romania. The Foundation develops a number of projects to support the architectural heritage preservation, farming and sustainable development of the country.

As detailed last year, an evaluation has been completed and no charitable activity has ensued through PWFR. This is a dormant company.

However, our commitment to projects in architectural heritage preservation, farming and sustainable development is still strong and we have been working with partners to deliver this mission through grants awarded from PWCF.

SOCIAL ENTERPRISES

The Prince of Wales's Charitable Foundation currently has two social enterprise subsidiaries which make a substantial contribution to PWCF.

Profits from Duchy Originals Limited and AG Carrick Limited are gift aided to the Foundation. Since 2010/11 the Social Enterprises have donated over £36.5m to the Foundation.

----- Start of picture text -----
Social Enterprise Gift Aid to PWCF
4,500,000
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3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
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Duchy Originals AG Carrick
----- End of picture text -----

Duchy Originals

Future

PWCF are reviewing their options on the future of PWFR.

Ecologic Transilvania

Ecologic Transilvania SRL (ET) is a subsidiary of PWFR. The company owns two properties in Transylvania. One is located in the small rural village of Zalanpatak and the other in the Saxon village of Viscri, now a World Heritage Site.

All commercial activities relating to PWFR are managed through ET. The primary focus of ET is to generate a profit to help fund charitable activities via PWFR. As PWFR is currently dormant, any profits would either be reinvested in operations of ET or granted to PWCF for charitable purposes.

Founded by HRH The Prince of Wales with its first product, a biscuit made from wheats and oats grown organically on the Home Farm at Highgrove, the range has now grown to include more than 300 products. Waitrose Duchy Organic is now one of the top 30 grocery brands in the UK measured by retail sales.

Duchy Originals continues to license the "Duchy" brand to Waitrose Ltd. The partnership gives Waitrose, the exclusive right to originate, promote and distribute Duchy products in the UK. Waitrose sells Waitrose Duchy Organic products through its own branches and at Waitrose.com. It also wholesales Waitrose Duchy Organic products in the U.K. and overseas. Waitrose pays a royalty to the Company on all retail and wholesale sales.

The Partnership between Duchy Originals and Waitrose is built on the shared principles of Good Food, Good Farming and Good Causes. These principles are set out in a Charter between the two

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

organisations and underpin the ethos behind the Waitrose Duchy Organic range.

This year’s donation from AGC to PWCF was £NIL (2020: £34,000) a decrease of £34,000.

This year the amount which Duchy Originals donated in gift aid to The Prince of Wales's Charitable Fund was £3.6m (2020: £3.6m). Royalties received from Waitrose continue to increase.

AG Carrick and the Highgrove Shop

A.G. Carrick Limited ('AGC') manages the Highgrove Enterprises business, which promotes, for the benefit of the Fund, commercial opportunities associated with The Prince of Wales's Highgrove Estate in Gloucestershire. Highgrove Enterprises derives its income from two shops (located at Highgrove House and Tetbury), an online shop, occasional pop-up shops and the offering of guided tours of the Highgrove Gardens. It also generates income from certain copyrights and restaurant sales.

Highgrove is the private residence of TRH The Prince of Wales and The Duchess of Cornwall, near Tetbury in Gloucestershire. Since 1980 when the Prince of Wales first arrived at Highgrove, His Royal Highness has devoted much energy to transforming the gardens around the house, which are now renowned as some of the most inspiring and innovative in the United Kingdom.

AG Carrick has had a difficult trading year due to the restrictions imposed on their activities due to COVID-19.

Guided garden tours at Highgrove and shops needed to close for a significant time due to Government restrictions. Online trading remained robust.

AG Carrick did not receive any furlough payments from the Government but did conduct a restructure of the business.

PWCF approved the gifting of AG Carrick to The Prince’s Foundation as at the 1[st] July 2021. The Prince’s Foundation has set up charitable activities on the Highgrove Estate and the PWCF Trustees felt the gifting of AG Carrick would further benefit the charitable objectives of PWCF and support the continuing charitable activities of The Prince’s Foundation.

The Highgrove shops sell organic foods and branded products for the home and garden. The products are inspired by the Highgrove Gardens and the wide-ranging interests of The Prince of Wales. All products meet rigorous buying criteria and are sourced responsibly with regard to environmental issues.

The relationship with Fortnum & Mason continues to strengthen, with royalties increasing year on year.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

PLANS FOR FUTURE PERIODS

PWCF continues to develop its grant making strategy, seeking to deliver widespread and sustained impact through both its small and major grants programmes. Environmental issues, which are underserved by grant funders overall, will continue to be a key focus for the charity’s grant making as will projects that support and amplify the impact of work being done by HRH’s other charities and Patronages and supporting HRH’s charitable interests. The Trustees are particularly interested in funding work with “system-level” impact that generates interconnected outcomes across multiple areas such as environment, health and wellbeing.

The Board are reviewing the grant giving strategy, working with Strategic Partners.

Due to A4S’s continued expansion, it was decided that the A4S programme would be “spun out” into its own legal entity. A4S (CIO) was launched on the 1[st] October 2021 and is a wholly owned subsidiary of PWCF. The A4S entity will continue the work of the programme.

AG Carrick has been gifted to The Prince’s Foundation on the 1[st] July 2021.

In addition, the Trustees are committed to ensuring the charity’s governance, structure and systems are fit for purpose and able to support delivery of our mission in an effective and efficient manner, both now and in the future.

PWCF continues to manage cash reserves in the most advantageous way possible. The Trustees will continue to look at ethical and responsible fund managers and portfolios to invest PWCF's free reserves.

FUNDRAISING

The Trustees of the charity take their responsibility under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications of the charity’s activities.

PWCF are committed to achieving high standards in fundraising and ensure that our fundraising activities do not put undue pressure on the Fund’s

valued supporters and individuals, especially those that are vulnerable.

PWCF and PCF are registered with the Fundraising Regulator. The Development Committee ensures that fundraising activities comply with the Fundraising Regulator’s Code of Fundraising, legal and regulatory requirements.

PCF works with companies and commercial participators who are reputable and whose activities do not have an adverse impact on the charity’s core objectives and the Founder’s vision for the charity.

The Trustees are not aware of any complaints made in respect of fundraising for the Group during the period.

INVESTMENTS

PWCF holds investments with the aim of generating long-term total returns to underwrite its charitable giving. The Fund recognises that long-term financial value depends on good governance and the preservation of social and natural capital; therefore, it considers social, environmental and governance factors when choosing investments. (The Investment Policy can be seen on page 22).

Investments for the Group have a total value of £6.44m (2020: £5.09m), which is an increase of 27%.

Bridges Social Impact Bond

A Social Impact Bond is an innovative publicprivate partnership that looks to drive more efficient, more effective social services using outcomes-based contracts. Government commissioners commit to paying for specific social outcomes, with a view to improving the lives of vulnerable people and/or achieving better value for public spending.

The Fund has committed £500,000 to two loans and Bridges continued to draw down against this commitment throughout the year. Both funds provide the working capital and operational support necessary for charities and social enterprises to deliver programmes designed to improve social outcomes in areas such as education, employment, housing and care for vulnerable young people.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

The original social impact objectives of the Fund, along with the three SIBs launched by the Bridges Social Entrepreneurs Fund in 2012, were as follows: Create 15 SIBs, working with 10,000 beneficiaries, to deliver £50m of social outcomes payments, worth at least £100m to Government (calculated using short term value, independently audited).

Rathbones Greenbank

Engagement report

Rathbones Greenbank manages £4.5m on behalf of PWCF. Their summary is as follows:

Please find attached the Rathbone Greenbank engagement activity for the period 1[st] April 2020 to 31[st] March 2021.

As part of its commitment to ethical, sustainable and impact investment, Rathbone Greenbank seeks to use the influence it has with companies and policymakers to promote best practice with regard to social, environmental and sustainability issues. During the year ended 31 March 2021, Rathbone Greenbank engaged in dialogue with 22 individual companies on social and environmental issues and Rathbones Group voted on 10,315 resolutions across 825 AGMs and company meetings. Rathbone Greenbank also undertakes long-term thematic or sector-wide engagement projects with a number of external partners such as ShareAction, the Food Foundation and the Institutional Investors Group on Climate Change. Key themes in the past year have included nutrition, access to medicine, biodiversity, ESG standards for social housing and climate policy.

The Rathbone Greenbank annual investor day was held in June 2021 and focussed on the challenge of financing a just transition, with speakers from academia, business, and policy as well as our own investment and research teams. It explored the role of the financial services sector in putting people and communities at the heart of sustainable investment in pursuit of the UK’s net zero goal. As a result of COVID-19 for the second year running the investor day had to be moved online and recordings of the event can be viewed https://www.rathbonegreenbank.com/greenbank -investor-day-2021 .

Investment performance

The performance figures for the period to 31 March 2021 are as follows:

Performance – 1 year 31 March
March 2021		 2020 – 31
Total
Return		 Capital
Return
PWCF portfolio 35.99% 34.34%
Benchmark:
MSCI
PIMFA
Balanced
Index		 22.04% 19.74%
Performance – 3 year 31 March
March 2021		 2018 – 31
Total
Return		 Capital
Return
PWCF portfolio 43.24% 36.79%
Benchmark:
MSCI
PIMFA
Balanced
Index		 19.92% 11.56%
Performance – 5 year 1 April 2016 – 31 March
2021		 1 April 2016 – 31 March
2021
Total
Return		 Capital
Return
PWCF portfolio 66.53% 55.59%
Benchmark:
MSCI
PIMFA
Balanced
Index		 46.18% 29.24%

The portfolio has seen strong performance over all periods. It is pleasing to report that we have significantly outperformed the benchmark over 1, 3 and 5 years. A feature of the long term outperformance is consistent emphasis on the sustainability agenda and good corporate governance, which we believe has reduced risk and identified sources of long term value creation. Our preference has always been for growth orientated businesses that are providing new or innovative solutions to address climate change, biodiversity loss and pollution challenges or are fulfilling societal needs such as water and good food, justice, health and housing. The energy transition in particular has offered exceptional opportunities in the past three years and we have made investments which continue to have strong growth prospects in the medium to long term.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

FINANCIAL REVIEW

The Social Enterprises donate their profits to PWCF, thereby providing the income needed for the Fund to fulfil its charitable objectives. The Fund also receives income from Trusts and Foundations, High Net Worth Donors and Membership Contributions relating to A4S.

Total consolidated Group income for the year was £10.3m (2020: £13.9m). Voluntary Income was £4.4m (2020: £4.7m), which includes donated services of £206,210 (2020: £162,000). AG Carrick and Duchy Originals achieved a turnover of £1.6m and £3.8m respectively.

----- Start of picture text -----
Group Income 2020/21 1% AG Carrick (£1.6m)
2%
Donations (£1.1m)
13% 15% Duchy Originals
5% (£3.8m)
Grants (£1.8m)
10%
Other Trading Activity
17% (£0.5m)
Membership
Contributions (£1.3m)
37% Donated Services
(£0.2m)
Investment Income
(£0.1m)
----- End of picture text -----

The two Social Enterprise companies have contributed 52% (2020: 60%) of the total Group income. Donations account for 10% of this year’s income. Other trading activity relates to income generated by Countryside Fund Trading Limited (CFT) and Ecologic Transilvania (ET). CFT receive their income from commercial participators who support the charity’s brand on a wide range of products and materials, they have contributed £484,175 (2020: £574,000) to the Group's total income.

The Group's income is considered to be low risk as the Fund does not rely on one source of income or one particular donor. The Fund and its subsidiaries cover a wide variety of income streams.

Expenditure for the Group (excluding discontinued operations - Romania) has decreased to £10.4m (2020: £13.7m).

The Group made a surplus from continuing operations for the year of £1.3m (2020: a deficit of £0.03m).

Reserves

The Group holds unrestricted, designated and restricted reserves. Total funds for the Group are £11m (2020: £9.8m). Unrestricted reserves are available to use as the Trustees see fit, to further PWCF's charitable impact. The Group’s unrestricted reserves increased by £582,000 in 2020/21 and now stand at £6.1m (2020: £5.6m).

Designated reserves are funds set aside, by the Trustees, from the unrestricted fund for specific purposes. The balance has decreased by £131,000 and stands at £1.7m at the end of the financial year.

These designated funds have been described in the table below:

Description Balance
at 31.03.21		 Expected
to be spent
by
Grants in keeping with His
Royal Highness's interests		 £1,730,000 March
2022
Romanian activities (now
discontinued)		 £12,000 December
2021
Total Designated Funds £1,742,000 March
2021

The restricted fund is to ensure donations and grants intended for specific charities or causes are not used for other purposes. The restricted fund has decreased by £0.8m in 2020/21 and now stands at £3.1m.

Free Reserves

Free reserves are part of a charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes. As at 31 March 2021, free reserves for the Fund were £5.5m and for the Group, £6.1m.

As previously reported, the Trustees review the reserves policy on an annual basis and the Trustees have now set a new reserves target of maintaining reserves at over £3m. In setting the reserves policy the Board of Trustees considers the need to support and enhance the sustainability of all of His Royal Highness's interests. However this will be reviewed on an annual basis and is subject to change depending on the needs of the Group.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

GOVERNENCE & MANAGEMENT

Trustees

There are currently six Trustees of the Fund. Trustees are appointed by His Royal Highness The Prince of Wales. The Trustees are also directors under company law. The board supports the principles of good governance set out in the Charity Governance Code.

When recruiting Trustees the board aims to attract a diverse range of candidates with the skills and expertise required to deliver the Fund’s charitable objects. All appointments are made on merit and in the best interest of the Fund. Trustees receive no remuneration for their services.

In order to ensure the Trustees are able to fulfil their responsibilities, they seek and receive professional advice, as required, so that they are properly briefed with regard to current and relevant regulatory developments.

Trustees are appointed initially for a maximum three-year term, renewable once, unless an individual becomes the Chairman of the Fund.

Trustees undertake an induction programme which includes briefings with the Chairman, Company Secretary and Interim Chief Executive. New Trustees are briefed on the Fund's aims and objectives. They also receive an induction pack which includes the Fund's Memorandum and Articles of Association, Charity Commission publications and guidance as well as the latest annual report and accounts and the Fund’s most recent business plan.

Each of the Trustees would be legally required to contribute an amount not exceeding £10 to the Fund in the event of its winding up.

Trustees meet generally four times a year and sometimes more frequently. In this past year, the Trustees held four meetings, and The Prince of Wales attended two meetings. At the regular Trustees’ meetings, the Trustees agree the broad strategy and areas of activity for the Fund, including consideration of grant-making, investment, reserves and risk management policies and performance. The day-to-day administration of grants and the processing and handling of applications prior to consideration by the Trustees are delegated to the Senior Management Team.

Risk Management

Identifying and managing risks is an integral part of the Senior Management Team's responsibilities and forms part of their daily work. Major risks, for this purpose, are those that may have a significant effect on operational performance, finance sustainability, or achievement of charitable objectives.

The Fund recognises the importance of operating an effective risk management framework. It does so by following five core principles:

  1. a clear appetite for risk expressed through a risk policy;

  2. an understanding of risks and their categorisation;

  3. an effective process for assessing and prioritising risks;

  4. a sound response to emerging issues and new risks; and

  5. quality assurance to keep risks under control.

The Risk and Audit Committee formally considers the Fund's risk management process and risk register every six months, in order to assure the full Trustee Board that adequate systems and procedures are in place to manage identified risks.

The Fund produces a group risk register, which identifies key risks for PWCF as a whole, as well as risks for its programmes and subsidiaries. Each risk is assessed by the severity of the potential impact and the probability of its occurrence.

The highest risks for PWCF are reputational risk to the Fund and its Founder, His Royal Highness The Prince of Wales and financial risk for A4S and PWCF’s subsidiaries. These risks are managed overall through the risk register. There are regular communications across departments within the organisation to help monitor and identify any reputational risks. The Fund provides financial information in a timely manner to help mitigate the financial risks to the A4S and subsidiary organisations.

The trustees consider that there are no material uncertainties about the Fund's ability to manage

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

the risks of the Fund, despite the impact of Covid19.

Policies

Investment Policy

PWCF holds investments with the aim of generating long-term total returns. PWCF recognises that long term financial value depends on good governance and the preservation of social and natural capital and, therefore, will consider social, environmental and governance factors when choosing investments.

The Trustees will:

PWCF will not knowingly hold shares in companies that derive a significant proportion of their income from the following activities (or invest in funds that hold a significant number of shares in such areas): Fossil fuels, Deforestation, Genetic modification, Intensive farming, Agrochemicals, Animal welfare, Human rights and Harmful vices.

The policy and guidance are reviewed and updated annually or as necessary to reflect changes in issues of particular interest, best practice and new investment laws, regulations or advice.

Remuneration Policy

Aiming to maximise our impact through fair remuneration packages for talented people is what defines our approach to pay. To do this effectively means balancing two different needs: the need to ensure value for money in everything we do, including how we pay our staff; and the need to attract and retain people with the right skills and attitude.

PWCF has a clear and transparent policy that not only ensures the selection and retention of high calibre staff but also ensures our donors, supporters, staff, volunteers, beneficiaries and the public recognise the importance of accountability in all

aspects of our work including the determination of total remuneration packages including pay and benefits.

The PWCF Remuneration Committee is responsible for defining and amending PWCF's Remuneration Policy, as well as deciding on the total remuneration packages for their staff members and consultants.

Our approach is to pay a fair remuneration package to attract and retain skilled and expert people for PWCF. Remuneration packages and benefits should be competitive within the charity sector, proportionate to the complexity and international scope of each role, and in line with our charitable objectives. To achieve this, our Remuneration Policy aims to:

Reserves Policy

The Funds unrestricted income is generally derived from its wholly- owned subsidiary undertakings. As a result, the Fund’s ability to make grants to charitable institutions is dependent on fluctuations in the trading performance of those undertakings. Therefore, the Trustees have a liquidity-based approach to reserves. This approach requires the Fund, for internal programmes and external charitable activities, to have a minimum holding of £3m of free reserves in cash and realisable investments.

The Board are reviewing the Reserves Policy now A4S has become a separate legal entity.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Founder

His Royal Highness, The Prince of Wales

Trustees

Sir Ian Cheshire - Chairman Baroness Casey of Blackstock DBE Mr. Clive Alderton CVO Dame Julie Moore DBE Ms. Kristin Rechberger (appointed October 2020) The Hon. Mrs Sarah Jane Butler-Sloss (appointed October 2020) Dr Kenneth Wilson (resigned December 2020)

Professional Advisers

Bankers

Coutts & Co 440 Strand London WC2R 0QS

Auditors

Saffery Champness LLP 71 Queen Victoria Street London EC4V 4BE

Solicitors

Key Management Personnel

Paula Wilson (Interim CEO & Finance Director) Jessica Fries (Executive Chairman – A4S) Yvonne Abba-Opoku (Company Secretary) Claire Saunders (Executive Director PCF) (Until May 2020) Keith Halstead (Executive Director PCF) (May 2020)

Registered Charity Number

Farrer & Co LLP 66 Lincoln's Inn Fields London WC2A 3LH

Bridges Ventures

38 Seymour Street London W1H 7BP

1127255

Rathbone Greenbank Investments

Registered Company Number

06777589

10 Queen Square Bristol BS1 4NT

Troy Asset Management Limited

Registered Address

Clarence House London SW1A 1BA

33 Davies Street London W1K 4BP

Organisational Structure

Foundation - The Prince of Wales's Charitable Foundation (known as The Prince of Wales's Charitable Fund).

Group - The Prince of Wales's Charitable Fund, Duchy Originals Ltd, A.G. Carrick Ltd, The Prince of Wales's Foundation Romania, Ecologic Transilvania SRL, The Prince's Countryside Fund and Countryside Fund Trading Limited.

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The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Statement of responsibilities of the Trustees of The Prince of Wales’s Charitable Foundation

The trustees (who are also directors of The Prince of Wales’s Charitable Foundation for the purposes of company law) are responsible for preparing the Trustees’ Report 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 year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible

for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ annual report, which includes the Strategic Report for the purpose of the Companies Act 2006, was approved by the Trustees and signed on their behalf on the Board.

Sir Ian Cheshire, Chairman

Clarence House London SW1A 1BA

Date – 19[th] November 2021

24

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE PRINCE OF WALES’S CHARITABLE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PRINCE OF WALES'S CHARITABLE FOUNDATION

Opinion

We have audited the financial statements of The Prince of Wales’s Charitable Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the group statement of financial activities, consolidated balance sheet, charity balance sheet, consolidated cash flow statement and notes to the financial statements, including 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).

In our opinion the financial statements:

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 or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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 and parent charitable company 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

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 annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

25

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

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

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 their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report and Strategic Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on [page 24], the trustees (who are also the directors of the parent 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 the 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 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

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent 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 noncompliance 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

26

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with informed management, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with informed management and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include the Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were

27

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Use of our report

This report is made solely to the parent 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 parent 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

28

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Consolidated Statement of Financial Activities

(Incorporating the Consolidated Income and Expenditure account)

For year ended 31 March 2021

Note
Income from:
Voluntary Income
2
Investment income
3
Other trading activities
Total incoming resources
Expenditure on:
Raising funds:
Expenditure on raising funds
Other trading activities
Investment
management
costs
Total cost of raising funds
Charitable Activities
4
Total charitable activities
Total expenditure
Net
gain/(loss)
on
investments
8
Net income/(expenditure)
from continuing activities
Net income/(expenditure)
from discontinued activities
16
Transfers between funds
13
Other Write offs
Exchange loss on deposits
Net movement in funds
Fund
balances
brought
forward
13
Fund
balances
carried
forward 2021
13		 General
Fund
£000s
Designated
Fund
£000s
Restricted
Fund
£000s
Total
2021
£000s
Total
2020
£000s
228
-
4,133
4,361
4,744
117
-
-
117
171
5,397
-
479
5,876
8,994
5,742
-
4,612
10,354
13,909
(3)
-
(70)
(73)
(97)
(2,496)
-
(97)
(2,593)
(4,793)
(18)
-
-
(18)
(39)
(2,517)
-
(167)
(2,684)
(4,929)
(3,706)
(478)
(3,548)
(7,732)
(8,808)
(3,706)
(478)
(3,548)
(7,732)
(8,808)
(6,223)
(478)
(3,715)
(10,416)
(13,737)
1,336
-
-
1,336
(206)
855
(478)
897
1,274
(34)
-
(19)
-
(19)
(38)
(272)
372
(100)
-
-
(1)
1
-
-
8
-
(7)
5
(2)
(35)
582
(131)
802
1,253
(99)
5,570
1,873
2,329
9,772
9,871
6,152
1,742
3,131
11,025
9,772

The notes on pages 33 to 60 form part of these financial statements

29

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Consolidated Balance Sheet

at 31 March 2021

Note 2021 2020
£000s £000s
 £000s £000s
Fixed assets
54 585
Tangible fixed assets 7 2
Investments 8 6,439
 5,089
Total fixed assets 6,981
 5,674
Current assets
Stock 9 328 550
Debtors 10 2,026 2,912
Cash at Bank 6,192 4,753
Total current assets 8,546 8,215
Creditors:
amounts falling
within one year		 due 11 (4,502) (4,014)
Net current assets
4,044
 4,201
Creditors: amounts falling due after Creditors: amounts falling due after
one year 12 -

 (103)
Total net assets 11,025
 9,772
Funds
General - unrestricted 13 6,152
 5,570
Designated 13 1,742
 1,873
Restricted 13 3,131

 2,329
Total funds 11,025
 9,772

The notes on pages 33-60 form part of these financial statements.

Approved on behalf of the Trustees on 28[th] October 2021.

Sir Ian Cheshire, Trustee and Chairman

Date – 19th November 2021 Company number: 06777589 Charity number: 1127255

30

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Fund Balance Sheet

at 31 March 2021

2021 2020
Note as restated as restated
£000s £000s £000s £000s
Fixed assets
Tangible fixed assets 7 43 26
Investments 8 6,439 5,089
Investments in subsidiaries 8 747 747
Total fixed assets 7,229 5,862
Current assets
Debtors: amounts falling due within
one year 10 3,014 2,272
Cash at Bank 2,066 1,166
Total current assets 5,080 3,438
Creditors: amounts falling due within
one year 11 (2,475) (1,300)
Net current assets 2,605 2,136
Creditors: amounts falling due after 12 - -
one year
Total net assets 9,834 8,000
Funds
General - unrestricted 13 6,774 5,503
Designated 13 1,781 1,887
Restricted 13 1,279 610
Total funds 9,834 8,000

As permitted by section 408 of the Companies Act 2006, a Statement of Financial Activities for the Fund only has not been presented. The income of the Fund for the year was £7,349,670 (2020: £7,860,614) and its net movement in funds was (£1,834,979) (2020: (£98,859)).

The notes on pages 33 - 60 form part of these financial statements. Approved on behalf of the Trustees on 28[th] October 2021.

Sir Ian Cheshire – Trustee and Chairman

Date – 19th November 2021

Company number: 06777589 Charity number: 1127255

31

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Consolidated Cash Flow Statement

for the year ended 31 March 2021

Total
Total
2021
2020
£000s
£000s
Cash flows from operating activities:
Net cash provided by operating activities Table
1,524
(737)
1
Cash flows from investing activities:
Purchase of property, plant and equipment (69)
(83)
Proceeds from sale of investments 701
Purchase of investments (715) (20)
Net cash provided used in investing activities (83) (103)
Change in cash and cash equivalents in the reporting period 1,441
(840)
Cash and cash equivalents at the beginning of the reporting 4,753
5,628
period
Change in cash and cash equivalents due to exchange rate (2)
(35)
movements
Cash and cash equivalents at the end of the reporting period
Table
2
6,192
4,753
Table 1:Reconciliation of expenditure to net cash flow from
operating activities
Net (expenditure)/income for the period 1,255
(72)
Adjustments for:
Depreciation charges 112
97
Losses/(gains)on investments (1,336)
206
Non-cash write offs -
8
(Increase)/decrease in stock 222
26
Decrease/(increase) in debtors 886
317
Increase in creditors 385 (1,319)
Net cash provided by operating activities 1,524
(737)
Table 2: Analysis of changes in debt
At start of year Cash flows At Year end
£ £ £
Cash and Cash equivalents
(£000’s)
Cash 4,753 1,439 6,192
Total 4,753 1,439 **6,192 **

32

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes

(Forming part of the financial statements)

1. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Fund’s accounts.

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) – (Charities SORP (FRS 102)), the Financial Reporting Standard Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000’s.

Estimates & Assumptions

In the application of the charity’s accounting policies, which are described below, Trustees are required to make judgements, estimates, and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Prior year comparison and adjustment information are shown in note 15 and 18 respectively.

The Prince of Wales's Charitable Fund meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Assessment of Going Concern

The trustees consider that there are no material uncertainties about the Fund's ability to continue as a going concern, despite the impact of Covid-19. They have reviewed cash flow forecasts for the Fund and its commitments for twelve months from the date of approval of the accounts and conclude that it is appropriate to prepare these accounts under the going concern basis.

33

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

1. Accounting policies (continued) Basis of consolidation

The financial statements consolidate the results of the Fund and its wholly owned subsidiaries on a line-by-line basis. The acquisition method of accounting has been adopted. The assets and liabilities of subsidiaries are recorded initially at their fair values on the date of acquisition. The Prince of Wales's Foundation Romania and its subsidiary, Ecological Transilvania, have a year-end reporting date of 31st December.

The Trustees of the Fund decided to change the way in which the subsidiary undertakings are held on the balance sheet. Instead of holding the assets at net book value, this was changed to share value.

Income

Income is recognised when the Fund has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Donations are recognised when the Fund has been notified in writing of both the amount and settlement date or the monies have been received directly. In the event that a donation is subject to conditions that require a level of performance before the Fund is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Fund and it is probable that those conditions will be fulfilled in the reporting period.

Interest on funds held on deposit and investment income from UK investments, is included when receivable and the amount can be measured reliably by the Fund; this is normally upon notification of the interest paid or payable by the bank or investment managers.

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the Fund has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from use of the item or service is probable and that economic benefit can be measured reliably.

On receipt, donated services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

34

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

1. Accounting policies (continued)

All expenditure is accounted for on an accruals basis.

Grants payable

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Fund. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside the control of the Fund.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administrative costs, finance, personnel, consultancy and governance. These have been allocated across the charitable activities on a pro-rata basis as set out in note 5.

Pensions

PWCF operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The amount charged to the SOFA represents the contributions payable to the scheme in respect of the accounting period.

Taxation

The Charity meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received to the extent that such income or gains are applied exclusively to charitable purposes. In addition, because the subsidiary, Duchy Originals Ltd, is bound by deed of covenant to transfer all its taxable profit to the Fund, it incurs no liability to tax. Consequently, PWCF has no liability to tax and no deferred tax.

Financial Instruments

PWCF has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured

35

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

1. Accounting policies (continued)

at amortised cost using the effective interest method (equating to the present value). Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors and accrued income. Financial liabilities held at amortised cost comprise trade and other creditors and accrued expenditure.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided by the straight-line method over the estimated useful lives of the assets at the following rates:

Leasehold premises and improvements over the life of the lease Plant, machinery, tools and equipment two to four years Computers five years Fixtures, fittings and office equipment two to four years

No depreciation is provided until the assets are brought into use.

Fixed asset investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date. This is determined as follows:

The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Social investments

Unquoted equity, social investment funds and partnerships, and similar social investments are held at cost, less any provision for diminution in value, unless the Fund is able to obtain a reliable estimate of fair value. Quoted investments are stated at market value at the balance sheet date.

Stock

Stocks relate to goods for sale and are stated at lower of cost and net realisable value.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

36

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

Creditors

Creditors 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 are recognised at their settlement amount.

Foreign currency

Transactions in foreign currencies are recorded at the average rate of exchange for the year. Balances in foreign currencies are translated at the rate ruling at the balance sheet date and translation gains or losses are recorded in the Statement of Financial Activities.

Funds

Unrestricted funds are available to spend on activities that further any of the purposes of the Fund. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Fund’s work or for specific grants to be awarded by the Fund.

The Trustees have determined that realised and unrealised investment gains and losses should be recorded in the General Fund, or, where such gains and losses can be separately identified, to the restricted fund, together with the investment managers' fees. Transfers from the General Fund and specific receipts are recorded in the Designated Fund as determined by the trustees.

37

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

2. Group voluntary income and income from charitable activities

Unrestricted Donations
Miscellaneous donations
Donated services
Total unrestricted donations
Restricted Donations
Miscellaneous donations
Grants
Membership subscriptions
Donated services
Total restricted donations
Total donations		 2021
£000s

228
-
228


1,807
800
1,320
206
4,133

4,361		 2020
£000s

1,259
-
1,259


1,069
1,006
1,226
184
3,485

4,744

Donated services relate to secondee costs provided by KPMG, support for events, projects and website work, which have been provided free of charge.

Designated income from discontinued activities of £5,510 (2020: £7,241) has not been included in the above. See note 16 for details.

38

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

3. Group Investment Income

. Group Investment Income
Unrestricted Investment Income
Income from UK investments
Income from cash & short term
deposits
Total
Unrestricted
Investment
Income
Restricted Investment Income
Income from cash & short term
deposits
Total Restricted Investment Income
Total Investment Income		 2021
£000s
90
27
117
-
-
117		 2020
£000s
136
28
164
7
7
171

39

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

4. Charitable activities

The Group charitable activities comprise:

Unrestricted fund
Music & the Arts
Heritage & Architecture
Religion & Churches
Education & Training
Agriculture
Environmental &
Economical Sustainability
Conservation & Animal
Welfare
Health & Mental Health
Disability
Communities & Social
Welfare
Elderly
Other
Total unrestricted fund
Designated fund
Heritage & Architecture
Religion & Churches
Education & Training
Agriculture
Environmental &
Economical Sustainability
Conservation & Animal
Welfare
Health & Mental Health
Disability
Communities & Social
Welfare
Disasters & Appeals
Other
Total designated fund		 Activities
undertaken
directly
£000's
Grant
funding of
activities
£000's
Support
Costs
£000's
Total
2021
£000's
1
50
5
56
12
565
53
630
-
6
1
7
6
288
27
321
-
12
1
13
6
264
25
295
5
235
22
262
1
47
4
52
-
17
2
19
13
640
60
713
-
10
1
11
25
1,190
112
1,327
69
3,324
313
3,706
33
-
-
33
-
15
-
15
-
14
-
14
-
50
-
50
-
56
-
56
-
5
-
5
-
23
-
23
-
-
-
-
-
251
-
251
-
27
-
27
-
4
-
4
33
445
-
478		 Total
2020
£000's
20
39
34
119
313
563
277
247
29
270
69
183
2,163
-
265
13
-
720
-
-
-
1,049
-
-
2,047

40

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

4. Charitable activities (continued)

Restricted fund
Music & the Arts
Heritage & Architecture
Religion & Churches
Education & Training
Agriculture
Environmental &
Economical Sustainability
Conservation & Animal
Welfare
Health & Mental Health
Communities & Social
Welfare
Elderly
Disasters & Appeals
Other
Total restricted fund
Total charitable activities		 Activities
undertaken
directly
£000's
Grant
funding of
activities
£000's
Support
Costs
£000's
Total
2021
£000's
-
10
-
10
96
70
-
166
-
-
-
-
17
141
-
158
250
-
250
1,936
635
361
2,932
-
-
-
-
-
-
-
-
-
9
-
9
-
-
-
-
-
-
-
-
2
21
-
23
2,051
1,136
361
3,548
2,153
4,905
674
7,732		 Total
2020
£000's
5
471
89
126
1592
1898
85
57
165
-
64
46
4,598
8,808

Grants totalling £4,905,000 were made to 131 charity institutions (2020: £5,922,000 to 252 institutions) from the Group.

The website for PWCF includes case studies of grants awarded during the 2020/21 financial year. This can be found at https://www.pwcf.org.uk/about-prince-waless-charitable-fund/ourimpact/our-beneficiaries

41

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

5. Group Support costs

. Group Support costs
Support costs
Salaries and employment
Travel and subsistence
Consultancy
Legal and professional
Office costs
Depreciation
Miscellaneous
Total support and governance costs		 General
Fund
£000's
Restricted
Fund
£000's
Total
2021
£000's
135
361
496
2
-
2
-
-
-
94
-
94
71
-
71
11
-
11
-
-
-
313
361
**674 **		 Total
2020
£000's
450
6
16
78
40
5
1
596

Support costs are allocated to the categories of charitable activities on a pro-rata basis, as it is not possible to allocate the costs on a specific basis.

Included in the above are governance costs of £58,002 (2020: £141,020). Salaries and Employment costs contain a recharge of £70,175 (2020: £137,841) from His Royal Highness The Prince of Wales and Duchess of Cornwall's Office for personnel supporting the Fund in finance, communications, administration and HR. The current year's recharge has been calculated as a percentage of staff time spent on PWCF.

Salaries and employment costs also include £nil (2020: £1,232) relating to the Romania programme which is now a discontinued operation.

The audit fee of the group amounted to £55,037(2020: £46,894).

42

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

6. Staff costs

The Group’s Staff Costs are allocated as follows:

Salaries and wages
Social security
Pension and healthcare
Redundancy Costs
Total Staff Costs		 Total
2021
£000s
1,856
185
154
134
2,329		 Total
2020
£000s
2,133
188
151
-
2,472

Romania is now a discontinued operation with staff costs totalling Nil (2020: £1,232).

The Fund employs 11 members of staff (based on average headcount) who work solely for The Prince's Countryside Fund, their staff costs totalled £408,839 (2020: £357,213) and were charged in full to PCF & CFT.

The key management personnel comprises of both direct employees of the Fund and its subsidiaries as well as employees of HRH The Prince of Wales and Duchess of Cornwall's Office as part of the recharge discussed in note 5. The total cost to the Group of the key management personnel is £390,596 (2020: £398,906).

No salaries were paid to Trustees in the current or previous year. No travel expenses were reimbursed to Trustees during the year. (2020: £2,753).

43

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

6. Staff costs (continued)

The average number of employees for the Group are:

Support and governance
Charitable activities:
Accounting for Sustainability
PCF & CFT
Other
Fundraising
Trading Activities
Total full-time equivalent employees		 Total
2021
2
15
11
-
-
81
109		 Total
2020
2
14
9
2
-
104
131

The number of employees whose emoluments for the year were over £60,000 (including taxable benefits in kind but not employer pension contributions), fell within the following bands:

Total Total
2021 2020
£60,000- £69,999 3 3
£70,000-£79,999 1 -
£80,000-£89,999 - 1
£90,000-£99,999 - 1
£100,000-£109,999 1 1
£110,000-£119,999 - -
£120,000-£129,999 - -
£130,000-£139,999 1 1

Pension contributions

The Fund paid £27,625(2020: £39,841) into defined contribution schemes for 5 (2020: 7) higher paid employees.

44

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

7. Tangible Fixed Assets

Group
Cost
At 1 April 2020
Additions
Disposals
Exchange Rate
Changes
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Exchange Rate
Changes
Depreciation on
disposals
At 31 March 2021
Net book value 31
March 2021
Net book value 31
March 2020		 Plant &
Equipment
£000s
Computers
£000s
4
400
4
55
-
(262)
-
-		 Fixtures &
Fittings
£000s
674
-
(461)
2		 Leasehold
Improvements
£000s
Land &
Buildings
£000s
Total
£000s
465
186
1,729
-
-
59
(8)
-
(731)
-
8
10
8
193		 215 457
194
1,067
2
298
1
56
-
-
-
(263)		 515
17
2
(460)		 322
7
1,144
31
4
109
-
1
3
(8)
-
(731)
3
91		 74 345
12
525
5
102		 141 112
182
542
2
102		 159 143
179
585
Fund
Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value 31
March 2021
Net book value 31
March 2020		 Computers
£000s
Total
£000s
41
41
30
30
71
71
15
15
13
13
28
28
43
43
26
26

45

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

8. Fixed asset investments

. Fixed asset investments
Notes
Group
Bridges Ventures Social Impact Bond
Other UK investments
Total group investments
Fund
Investment in subsidiary companies
14
Bridges Ventures Social Impact Bond
Other UK investments
Total Fund investments		 Cost at
31
March
2021
£000s
Market
Value at
31 March
2021
£000s
266
266
4,800
6,173
5,066
6,439
747
747
266
266
4,800
6,173
5,813
7,186		 Cost at
31 March
2020
Restated
£000s
Market
Value at
31 March
2020
Restated
£000s
222
222
4,800
4,867
5,022
5,089
747
747
222
222
4,800
4,867
5,769
5,836

The investments in subsidiary companies are stated at the value of the share capital.

Subsidiary Company /
Charity Number		 Registered Office Class of shares Percentage of
shares held
Duchy Originals Ltd 02478770 Clarence House,
London, SW1A 1BA		 Ordinary 100%
AG Carrick Ltd 2258628 Clarence House,
London, SW1A 1BA		 Ordinary 100%
The Prince's Countryside
Fund
1136077		 137 Shepherdess
Walk, London, N1
7RQ		 N/A Sole Member
Countryside Fund
Trading		 07274582 137 Shepherdess
Walk, London, N1
7RQ		 Ordinary 100% owned by
PCF
Prince of Wales'
Foundation Romania		 17/293/2015 Strada Principala
163, Viscri, Comuna
Bunesti Jud Brasov,
Romania		 N/A Sole Member
Ecologic Transilvania
SRL		 J40/16619/2006 Strada Principala
163, Viscri, Comuna
Bunesti Jud Brasov,
Romania		 Ordinary 100% owned by
PWFR

46

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

8. Fixed asset investments (continued)

Movements during the year

ovements during the year
Group
Opening market value
Acquisition at cost
Disposals at market value
Capital account
movement
Movement due to
adjusted book cost
Realised and unrealised
(losses)/gains
Closing market value
Fund
Opening market value
Acquisition at cost
Disposals at market value
Capital account
movement
Movement due to
adjusted book cost
Realised and unrealised
gains/(losses)
Closing market value		 Subsidiary
Undertakings
£000s
Social
Impact
Bond
£000s
-
222
-
44
-
-
-
-
-
-
-
-
UK
Investments
£000s
4,867
671
(665)
(36)
-
1,336		 Total
2021
£000s
5,089
715
(665)
(36)
-
1,336		 Total
2020
Restated
£000s
5,244
1,276
(1,143)
(70)
(12)
(206)
-
266		 6,173 6,439 5,089
747
222
-
44
-
-
-
-
-
-
-
-		 4,867
671
(665)
(36)
-
1,336		 5,836
715
(665)
(36)
-
1,336
7,186		 5,991
1,276
(1,143)
(70)
(12)
(206)
747
266		 6,173 5,836

PWCF are committed to invest a total of £500,000 with two Bridges Social Impact Bonds. Fund I for £250,000 was entered into in 2013 and has a brought forward commitment of £165,076. Payments totalling £nil were made during the year leaving a commitment of £165,076.

Fund II was entered into at the end of 2019/20 for £250,000 with a brought forward commitment of £57,271. Payments totalling £42,431 were made during 2020/21 leaving a commitment of £99,702 at 31[st] March 2021.

47

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

9. Stock

. Stock
Group
Finished goods
Total group stock		 Total
2021
£000s
328
328		 Total
2020
£000s
550
550

The Fund holds no stock.

10. Debtors

Group
Trade debtors
Taxation and Social Security
Prepayments and accrued income
Other debtors
Total group debtors
Fund
Amounts owed by subsidiary undertakings
Prepayments and accrued income
Other debtors
Total fund debtors		 Total
2021
£000s
421
15
1,558
32
2,026
2,618
397
-
3,015		 Total
2020
£000s
994
10
1,816
92
2,912
1,909
254
109
2,272

48

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

11. Creditors: amounts falling due within one year

Group
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors
Due to grant recipients
Total group creditors
Fund
Trade creditors
Accruals and deferred income
Other creditors
Total fund creditors
Movement in deferred income for the Group
Balance at 1 April 2020
Released during the year
Income resources deferred during year
Balance at 31 March 2021		 Total
2021
£000s
294
265
3,286
61
596
4,502
8
2,418
49
2,475		 Total
2020
£000s
498
300
2,616
87
513
4,014
1
1,225
74
1,300
156,969
(156,969)
344,200
344,200

12. Creditors: amounts falling due after one year

Group
Due to grant recipients
Total group creditors		 Total
2021
£000s
-
-		 Total
2020
£000s
103
103

The Fund has no creditors falling due after one year.

49

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

13. Analysis of movements in funds

Group
Unrestricted fund
Total unrestricted fund
Designated funds:
HRH Special Pot
A4S
Romania
40thAnniversary Fund
Total designated fund
Restricted funds:
Speeches & Articles
The Prince’s Foundation
A4S
HRH Special Fund
Duchy Home Farm
Education
Romania
Postcode Lottery
US Foundation
Other
PCF:
General Fund
Designated Fund
Restricted Fund
CFT
Total restricted fund
Total funds
Net Assets
Fixed Assets
Current Assets
Liabilities		 Balance at
1 April 2020
£000s
Incoming
resources
£000s
5,570
5,742		 Resources
expended
£000s
(6,224)		 Other
recognised
gains /
(losses)
£000s
Transfers
between
funds
£000s
Balance 31
March 2021
£000s
1,336
(272)
6,152
5,570
5,742		 (6,224) 1,336
(272)
6,152
1,750
-
-
-
70
6
53
-		 (445)
-
(58)
-		 -
425
1,730
-
-
-
(6)
-
12
-
(53)
-
1,873
6		 (503) (6)
372
1,742
2
-
60
216
2,332
26
60
-
17
208
3
250
800
25
-
324
142
(879)
374
50
324
345
1,783
479		 (60)
(1,560)
(86)
(17)
(96)
(800)
(2)
(30)
(541)
(426)
(97)		 -
-
2
-
-
-
5
-
993
-
-
-
-
-
-
-
-
115
-
-
250
-
-
23
-
(100)
336
-
(105)
(1,151)
-
-
50
-
105
348
-
-
2,165
2,329
4,612		 (3,715) 5
(100)
3,131
9,772
10,360		 (10,442) 1,335
-
11,025
General
Fund
£000s
Designated
Fund
£000s
6,674
-
1,991
2,196
(2,513)
(454)		 Restricted
Fund
£000s
307
4,359
(1,535)		 Total
2021
£000s
Total
2020
£000s
6,981
5,674
8,546
8,218
(4,502)
(4,120)
11,025
9,772
6,152
1,742		 3,131

50

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

Fund
Unrestricted fund
Total unrestricted fund
Designated funds:
HRH Special Pot
Romania
40thAnniversary Fund
Total designated fund
Restricted funds:
Speeches & Articles
The Prince’s Foundation
A4S
HRH Special Fund
Duchy Home Farm
Education
Romania
Postcode Lottery
US Foundation
Other
PCF
Total restricted fund
Total funds		 Balance at
1 April
2020
£000s
Incoming
resources
£000s
Resources
expended
£000s
Other
recognised
gains /
(losses)
£000s
Transfers
between
funds
£000s
Balance at
31 March
2021 £000s
5,503
3,935
(3,728)
1,336
(272)
6,774
5,503
3,935
(3,728)
1,336
(272)
6,774
1,750
-
(445)
-
425
1,730
84
-
(33)
-
-
51
53
-
-
-
(53)
-
1,887
-
(478)
-
372
1,781
2
-
-
-
-
2
-
60
(60)
-
-
-
218
2,332
(1,559)
5
-
996
26
60
(86)
-
-
-
-
17
(17)
-
-
-
214
3
(96)
-
-
121
-
800
(800)
-
-
-
25
-
(2)
-
-
23
125
142
(30)
-
(100)
137
610
3,414
(2,650)
5
(100)
1,279
8,000
7,349
(6,856)
1,341
-
9,834
Net Assets
Fixed Assets
Current Assets
Current Liabilities		 General
Fund
£000s
Designated
Fund
£000s
Restricted
Fund
£000s
Total
2021
£000s
Total
2020
£000s
6,922
-
307
7,229
7,699
1,781
2,235
1,064
5,080
3,377
(1,929)
(454)
(92)
(2,475)
(1,305)
6,774
1,781
1,279
9,834
9,771

A description of the restricted funds has been provided below:

Speeches & Articles: PWCF received restricted donations to fund the production of Volumes One, Two and Three of the speeches and articles of His Royal Highness The Prince of Wales. This is a collaborative project by the University of Wales, the University of Maryland and the University of

51

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

Wales Trinity Saint David. A selection of speeches and articles by The Prince of Wales covering a period of over 40 years has been brought together under headings that cover his principal interests and activities: the natural environment, climate change, architecture and the built environment, integrated medicine and health, society religion and tradition and education. The books can be purchased from the University of Wales.

The Prince’s Foundation: PWCF receives an annual restricted donation of £60,000 per annum to go towards the fixed overheads of The Prince’s Foundation’s which includes the salary of the CEO. The Prince’s Foundation supports people to create community. Whether through championing a sustainable approach to how we live our lives and build our homes, teaching traditional arts and skills and restoring historic sites, or by looking after places to visit for everyone to enjoy, The Prince’s Fund is leading the way forward.

Accounting for Sustainability: A4S is a project within PWCF which aims to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy. Income is through membership contributions and restricted donations and grants which exclusively fund the activities of A4S. The fund is currently in a deficit position however it is expected to make profits in the next financial year.

HRH Special Fund: Restricted donations have been made to PWCF to be used for grants in keeping with His Royal Highness charitable engagements and interests.

Duchy Home Farm Education Programme: A contribution is made to Duchy Home Farm toward the cost of educational farm visits and to support organic farming. This is covered by a restricted donation.

Romania: PWCF received restricted donations to cover the costs of running the Romanian programme. This is alongside the activities of its charitable subsidiary PWFR and covered costs of specific projects in Romania as well as the salary costs of its Executive Director.

Postcode Lottery: The People’s Postcode Lottery awarded a restricted grant to PWCF to be distributed to the following charities: The Prince’s Countryside Fund (recognised as a transfer), The Prince’s Trust, The Prince’s Fund, Business in the Community and The Prince’s Teaching Institute.

Other: A large restricted donation was received in 2020/21 with the donor requesting the donation is put towards portraits commissioned by The Royal Drawing School.

PCF & CFT: Relates to unrestricted, designated and restricted funds held in the subsidiary organisations. These are considered restricted for the Group given the narrow objectives of PCF in comparison to PWCF. Please see PCF and CFT financial statements for more details.

US Foundation : Relates to funds held back by PWCF when the US Foundation became dormant to cover any potential legal fees that may arise.

The designated funds are described within the trustees’ annual report on page 20.

52

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

14. Subsidiary companies

Duchy Originals Limited licenses the exclusive right to originate, manufacture, distribute and sell Duchy Originals products in the UK to Waitrose. All profits are donated to The Prince of Wales’s Charitable Fund.

A.G. Carrick Limited exploits intellectual property rights generated by The Prince of Wales and donated to the company as well as running the Highgrove shops. The company gift aids all of its taxable profits to The Prince of Wales’s Charitable Fund.

Ecologic Transilvania SRL is responsible for estate ownership and management of properties in Romania.

Prince of Wales's Foundation Romania brings skills to local communities through educational programmes and supports heritage preservation, agriculture and sustainable development. The Prince's Countryside Fund helps to improve the sustainability of British farming and the rural communities that support, and are supported by, farming in the UK.

Countryside Fund Trading is the trading subsidiary of PCF and responsible for all commercial activity for the charity.

A summary of the profit and loss accounts and balance sheets for the above organisations can be seen on the page below.

53

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Total 2020 £000's 10,554 (1,621) 8,933 (3,318) (64) (1,520) 4,031 8 4,039 (4,137) 10 (31) (119) 559 7,190 (5,230) 2,519
Total 2021 £000s 7,458 - 7,458 (2,818) (47) (1,195) 3,398 1 3,399 (3,973) 1 (7) (580) 499 6,449 (5,008) 1,940
Prince
of		 Wales's Foundation Romania £000s - - - - - - - - - - - - 123 115 (24) 214
Ecologic Transilvania SRL £000s 6 6 (25) (19) (19) - 1 (7) (25) 184 40 (149) 75
Countryside Fund Trading Ltd £000s 479 479 (97) 382 382 (382) - - - 821 (820) 1
The Prince's Countryside Fund £000s 1,576 1,576 (47) (1,195) 334 334 - 334 1 2,142 (648) 1,495
AG Carrick Ltd £000s 1,590 1,590 (2,480) (890) 1 (889) - (889) 191 567 (1,140) (382)
Duchy Originals Ltd £000s 3,807 3,807 (216) 3,591 3,591 (3,591) - 2,764 (2,227) 537
Profit & loss account for the
year
ended
31		 March 2021 Turnover Cost of sales Gross profit Administration expenses Fundraising Charitable activities Trading profit Interest receivable Profit/(loss) before tax and donations Donation to parent Other write offs Exchange loss Retained in subsidiary Balance sheet at 31 March 2021 Fixed assets Current assets Liabilities Total net assets at 31 March 2021

54

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

15. Prior Year Comparisons SOFA

Note
Income from:
Voluntary Income
2
Other
Investment income
3
Other trading activities
Total incoming resources
Expenditure on:
Raising funds:
Expenditure on raising funds
Other trading activities
Investment
management
costs
Total cost of raising funds
Charitable Activities
4
Total charitable activities
Total expenditure
Net
gain/(loss)
on
investments
8
Net income/(expenditure)
from continuing activities
Net income/(expenditure)
from discontinued activities
16
Transfers between funds
13
Other Write offs
Exchange loss on deposits
Net movement in funds
Fund
balances
brought
forward
13
Fund
balances
carried
forward 2020
13		 General
Fund
£000s
Designated
Fund
£000s
Restricted
Fund
£000s
Total
2020
£000s
Total
2019
£000s
1,259
-
3,485
4,744
5,539
-
-
-
-
3
164
-
7
171
128
8,420
-
574
8,994
9,132
9,843
-
4,066
13,909
14,802
(3)
-
(94)
(97)
(105)
(4,661)
-
(132)
(4,793)
(4,540)
(39)
-
-
(39)
(37)
(4,703)
-
(226)
(4,929)
(4,682)
(2,163)
(2,047)
(4,598)
(8,808)
(8,737)
(2,163)
(2,047)
(4,598)
(8,808)
(8,737)
(6,866)
(2,047)
(4,824)
(13,737)
(13,419)
(206)
-
-
(206)
326
2,771
(2,047)
(758)
(34)
1,709
-
(37)
(1)
(38)
(7)
(2,555)
2,555
-
-
-
8
-
-
8
7
(31)
-
(4)
(35)
12
193
471
(763)
(99)
1,721
5,377
1,402
3,092
9,871
8,150
5,570
1,873
2,329
9,772
9,871

55

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

15. Prior Year Comparisons (continued)

Analysis of movement in funds

Group
Unrestricted fund
Total unrestricted fund
Designated funds:
HRH Special Pot
A4S
Romania
40thAnniversary Fund
Total designated fund
Restricted funds:
Speeches & Articles
The Prince’s Foundation
A4S
HRH Special Fund
Duchy Home Farm
Education
Romania
Postcode Lottery
US Foundation
Other
PCF:
General Fund
Designated Fund
Restricted Fund
CFT
Total restricted fund
Total funds		 Balance at
1 April 2019
£000s
Incoming
resources
£000s
Resources
expended
£000s
Other
recognised
gains /
(losses)
£000s
Transfers
between
funds
£000s
Balance 31
March 2020
£000s
5,377
9,846
(6,869)
(229)
(2,555)
5,570
5,377
9,846
(6,869)
(229)
(2,555)
5,570
295
-
-
-
1,455
1,750
(100)
100
-
107
7
(44)
-
-
70
1,000
-
(1,947)
-
1,000
53
1,402
7
(2,091)
-
2,555
1,873
16
-
(14)
-
-
2
-
60
(60)
-
-
-
(12)
1,553
(1,322)
(3)
-
216
45
125
(771)
-
627
26
-
34
(34)
-
-
-
226
-
(18)
-
-
208
-
800
(550)
-
-
250
-
32
(7)
25
1,130
171
(350)
-
(627)
324
(63)
298
(781)
-
(333)
(879)
12
-
(21)
-
59
50
399
417
(766)
-
274
324
1,339
576
(132)
-
-
1,783
3,092
4,066
(4,826)
(3)
-
2,329
9,871
13,919
(13,786)
(232)
-
9,772
Net Assets
Fixed Assets
Current Assets
Liabilities		 General
Fund
£000s
Designated
Fund
£000s
Restricted
Fund
£000s
Total
2020
£000s
3,545
1,459
670
5,674
4,275
1,036
2,907
8,218
(2,250)
(622)
(1,248)
(4,120)
5,570
1,873
2,329
9,772

56

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

Fund
Unrestricted fund
Total unrestricted fund
Designated funds:
HRH Special Pot
Romania
A4S
40thAnniversary Fund
Total designated fund
Restricted funds:
Speeches & Articles
The Prince’s Foundation
A4S
HRH Special Fund
Duchy Home Farm
Education
Romania
Postcode Lottery
US Foundation
Other
PCF
Total restricted fund
Total funds		 Balance at
1 April
2019
Restated
£000s
Incoming
resources
£000s
Resources
expended
£000s
Other
recognised
gains /
(losses)
£000s
Transfers
between
funds
£000s
Balance at
31 March
2020
£000s
5,328
5,085
(2,208)
(147)
(2,555)
5,503
5,328
5,085
(2,208)
(147)
(2,555)
5,503
295
-
-
-
1,455
1,750
84
-
-
-
-
84
-
-
(100)
-
100
-
1,000
-
(1,947)
-
1,000
53
1,379
-
(2,047)
-
2,555
1,887
16
-
(14)
-
-
2
-
60
(60)
-
-
-
(12)
1,553
(1,321)
(3)
-
217
45
125
(771)
-
627
26
-
34
(34)
-
-
-
231
-
(17)
-
-
214
-
800
(800)
-
-
-
-
32
(7)
25
929
173
(350)
-
(627)
125
1
-
-
-
-
1
1,210
2,777
(3,374)
(3)
-
610
7,917
7,862
(7,629)
(150)
-
8,000
Net Assets
Fixed Assets
Current Assets
Current Liabilities		 General
Fund
£000s
Designated
Fund
£000s
Restricted
Fund
£000s
Total
2020
£000s
4,470
1,459
1,770
7,699
2,186
1,050
141
3,377
(603)
(622)
(80)
(1,305)
6,053
1,887
1,831
9,771

57

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

16. Income and Expenditure from Discontinued Operations

Note
Income from:
Donations & Grants
Commercial Trading
Operation
Total incoming resources
Expenditure on:
Raising funds:
Expenditure on raising
funds
Charitable activities:
Heritage & Architecture
Environmental &
Economic Sustainability
4
Total expenditure
Net income/(expenditure)
from discontinued
activities
Transfers between funds
Other write offs
Exchange loss on deposits
Net income/(expenditure)		 General
Fund
£000s
Designated
Fund
£000s
Restricted
Fund
£000s
Total
2021
£000s
-
-
-
-
-
6
-
6		 Total
2020
£000s
-
7
7
(32)
-
(13)
(45)
(38)
-
10
(31)
(59)
-
6
-
6
-
-
-
-
-
-
-
-
-
(25)
-
(25)
-
(25)
-
(25)
-
(19)
-
(19)
-
-
-
-
-
1
-
1
-
(7)
-
(7)
-
(25)
-
(25)

17. Related Parties Transactions

A number of grants have been awarded to Charities of which His Royal Highness The Prince of Wales is President. These transactions were made on an arm’s length basis and did not have any specific terms attached outside of the normal performance objectives attached to grants.

During the year the charity received £137,000 (2020: £230,794) from related parties without conditions attached.

Gift aid donations received from the subsidiaries are shown on page 54. At the year end, the Fund had the following balances outstanding with its subsidiaries:

58

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

Included in the Fund’s debtors: 2021 2020
£ £
Amounts due from Duchy Originals Limited 2,093,097 1,875,164
Amounts due from AG Carrick 489,574 34,025
Amounts due from Countryside Fund Trading 5,145 -

18. Prior Year Adjustment to Investment in Subsidiaries – Changes to Balance Sheet (Foundation Only)

Fund Balance Sheet

at 31 March 2021

Fixed assets
Tangible fixed assets
Investments
Investments in subsidiaries
Total fixed assets
Current assets
Debtors: amounts falling due within one year
Cash at Bank
Total current assets
Creditors: amounts falling due within
one year
Net current assets
Creditors: amounts falling due after one year
Total net assets
Funds
General - unrestricted
Designated
Restricted
Total Funds		 As
previously
Reported
2020
Adjustment
for change
in
Accounting
Policy
£000s
£000s
26
5,089
2,519
(1,772)
7,634
2,272
1,166
3,438
(1,301)

2,137
-
9,771
6,114
(612)
1,887
1,770
(1,160)
9,771		 Restated
2020
£000s
26
5,089
747
5,862
2,272
1,166
3,438
(1,301)
2,137
-
7,999
5,502
1,887
610
7,999

59

The Prince of Wales's Charitable Foundation Year Ended 31st March 2021

Notes (continued)

Adjustments to Prior Years
Reserves
Balance at 1 April 2019
Effect of change in
accounting policy for
investments in subsidiaries
As restated at 1 April 2019
Net movement in funds as
previously reported for the
year ended 31 March 2020
Effect of change in
accounting policy for
investments in subsidiaries
Balance at 31 March 2020		 General
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Total Funds
6,060
1,379
2,431
9,870
(669)
-
(1,222)
(1,891)
5,391
1,379
1,209
7,979
54
508
(661)
(99)
58
62
120
5,503
1,887
610
8,000

The Trustees of the Fund decided to change the way in which the subsidiary undertakings are held on the balance sheet. Instead of holding the assets at net book value, this was changed to share value.

19. Post Balance Sheet Event

A.G Carrick Ltd is no longer a subsidiary of The Prince of Wales’s Charitable Foundation as it has been transferred to The Prince’s Foundation on 1[st] July 2021.

Accounting for Sustainability is no longer an internal programme of The Prince of Wales’s Charitable Foundation as it has become a separate charitable subsidiary of the PWCF Group. The Accounting for Sustainability CIO was launched on the 1[st] October 2021.

60